Principles of Management
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Transcript of Principles of Management
Authority, Delegation Authority, Delegation MotivationMotivation
Responsibility The duty to perform the task or activity an employer has been assigned
Accountability
The fact that the people with authority and responsibility are subject to reporting and justifying task to those above in the chain of command
Chain of command
The flow of authority from the top to the bottom of an organization
Power
The capacity to influence decisions (or to influence the behavior of others)
Authority
The formal and legitimate right of a manager to make decision, issue orders, and allocate resources to achieve desired outcomes
Line Authority
Authority that entitles a manager to direct the work of a subordinate
Staff Authority
Authority given to individuals who support, assist and advise others who have line authority
M D
DIRECTORRESEARCH
DIRECTORPUBLIC
RELATIONS
G M G MPRODUCTION
G M
M M M
Kinds of Power
• Legitimate• Expert• Reward• Referent• Coercive• Delegated
Legitimate Power
The power a person has as a result of his or her position in a formal organization.
Expert Power
Influence that results from expertise, special skill or knowledge.
Reward Power
Power that produces positive benefits or rewards
Referent Power
Power that arises from identification with a person who has desirable resources or personal traits.
Coercive Power
Power that rests on the application, or the threat of application of physical sanctions
Physical sanctions• Infliction of pain• Arousal of frustration through restriction of movement• Controlling basic physiological or safety needs.
Delegated Power
Power that is exercised on behalf of a person actually holding power
Functional Authority
Authority delegated to an individual or a department to control specified task (s)
Centralization
The concentration of decision-making authority in upper management
Decentralization
The handing down of decision-making authority to lower levels in an organization
It in a fundamental aspect of delegation
Delegation
The process managers use to transfer authority and responsibility to positions below them in hierarchy
Process of Delegation
• Determining results expected from person• Assigning tasks• Giving authority for accomplishing these tasks• Holding the person responsible for
accomplishment of tasks
Factors effecting degree of delegation
1. Costliness of decision2. Desire of uniformity of policy3. Size & character of organization4. History & culture of organization5. Management philosophy6. Desire of independence7. Availability of managers8. Control techniques9. The pace of change
Decentralization Advantages
• Relieves top management of some burden of decision making and forces upper-level managers to let go.
• Encourages decision making and assumption of authority and responsibility.
• Gives managers more freedom and independence in decision making.
• Promotes establishment and use of broad control which may increase motivation.
• Makes comparison of performance of different organization units possible.
• Facilitates setting up of profit centers.• Facilitates product diversification.• Promotes development of general managers.• Aids in adaptation to fast-changing environment
Disadvantage • Makes it more difficult to have a uniform policy.• Increases complexity of coordination of
decentralized organization units.• May result in loss of some control by upper-level
managers.• May be limited by inadequate control techniques.• May be constrained by inadequate planning and
control systems.• Can be limited by the availability of qualified
managers.• Involves considerable expenses for training
managers.• May be limited by external forces (national labor
unions, government controls, tax policies).• May not be favored by economies of scale of some
operation.
STAFFBENIFITS • Expert advice• Think –tank• Unbiased approach /view
LIMITATION• lack of responsibility• Distant approach /view• Exercise of under authority • Unrelated staff work
MAKING STAFF EFFECTIVE
• Understanding authority relationship• Listening to staff• Keeping staff informed • Making staff work responsibly• Require complete staff work
Culture
Culture is the general pattern of behavior, shared beliefs, values, and norms among members of a society.
ORGANIZATIONAL
CULTURE
It pertains to the values and beliefs shared by employees of an org. and the general pattern or their behavior.
ORGANIZATIONAL CULTURE
• A system of shared vision and understanding within an organization that determines how employees act
• A set of key values , beliefs , understanding and norms that members of an organization share
Manifestation of Org. Culture
• Formal rules and procedures
• Formal code of behavior
• Rituals, Traditions, customs
• Jargon, jokes
• Formal dress code
• Pay & benefit systems
Creating Org. Culture
• Birth of a new enterprise
• Creation of a core management group
• Sharing of common vision amongst the CMG
• CMG begins to act in concert and develop dominant values, philosophy norms and org. climate etc.
Maintenance of Org. Culture
Steps of Socializations
• Selection of entry – level personnel
• Placement on the job
• Job mastery
• Measuring and rewarding performance
• Adherence to important values
• Recognition and promotion
Changing or Org. Culture
Requirement
• External environment has drastically changed
• Merger
• Internal environment changes
Guidelines for changes
• Assess the current culture.• Set realistic goals that impact and bottom line.• Recruit outside personnel with appropriate
industry experience.• Make changes from the top down.• Include employees in change process.• Removal all old cultural reminders.• Anticipate problems and take care of them.• Move quickly to bring changes.• Be persuasive and persistent.
MOTIVATION
• The willing-ness to exert high levels of efforts to reach objective ( as well as goals ) conditioned by the efforts ability to satisfy some individual need
• “the arousal direction and persistence of behavior”
• “the entire range of drivers that satisfy desires, need and wishes”
NEED
The internal state that makes certain outcomes appear attractive
DRIVERS
All those actions that force a person to make an effort to satisfy individual needs
HIERARCHY OF NEEDS
MASLOW’S NEEDS THEORY
Self Actualization
Esteem
Social
Physiological Needs
Food , drink , shelter ,clothing sexual satisfaction, and other physical requirement
Safety Needs
Security and protection from physical and emotional harm, as well as assurance that physiological needs will continue to be met
Social Needs
Affection ,relationship, belongingness, acceptance and friendship
Esteem Needs
Internal factors such as self –respect, autonomy and achievement ; and external factors such as status , recognition and attention
Self Actualization
A persons drive to become what he
(or she ) is capable of becoming
Theory X
The assumption that employees dislike work, are lazy, seek to avoid responsibility and must be coerced to perform
Theory Y
The assumption that employees are creative, seek responsibility and can exercise self –direction
Theory X and Theory Y Assumptions
THEORY X
• Employees inherently dislike work and will attempt to avoid it whenever possible .
• Employees must be coerced, controlled, or threatened with punishment to achieve desired goals
• Employees will shirk responsibilities and seek formal direction whenever possible
• Most of workers place security above all other factors associated with work and will display little ambition
Theory Y
• Employee view work as being as natural as rest or play
• Employees will exercises self – direction and self-control if they are committed to the objectives
• The average person can learn to accept and even seek , responsibility.
• The ability to make good decision is widely dispersed through the population and isn’t necessarily the sole ability of managers
Motivation-Hygiene Motivation-Hygiene TheoryTheory
The Theory that intrinsic factors are The Theory that intrinsic factors are related to job satisfaction, while related to job satisfaction, while extrinsic factors are associated extrinsic factors are associated with dissatisfactionwith dissatisfaction..
Motivators
Factors that increase job satisfaction.
Hygiene Factors
Factors that eliminate satisfaction.
Motivators Hygiene Factors
Achievement Supervision Recognition Company policies Work itself Relationship with supervisor
Responsibility Working conditions Advancement Salary Growth Relationship with peers Relationship with
subordinates Status
Security
Modern Theories of Motivation
Expectancy theory
People will be motivated to do things to reach a goal if they believe in the worth of that goal
Equity theory
It refers to an individuals’ judgment about the fairness of the reward he (or she) will get relative to input (i e effort, experience , education)
Reinforcement theory
• Individuals can be motivated by proper design of the work environment and praise for their performance (and that punishment for poor performance produces negative results)
• Behavior is a function of its consequence
Three –Needs theory
The needs for achievement, power and affiliation are major motivation for work
Goal – Setting theory
Specific goals increase motivation and performance and difficult goals result in higher motivation and higher performance than easy goals
Motivational Techniques
• Money
• Recognition
• Quality of working life (QWL)
• Job enrichment