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Management Fundamentals
- 1. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
Management Fundamentals
- 2. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
Management Fundamentals
KeyPoints to develop in your own time!
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The information gathered here are under KeyPoints format and may be useful under two circumstances:
- To give the reader an overview before deciding for a full scale study of the subject.
- To guide readers to develop the chosen topic in their own time.
Some tips on how to proceed, perhaps:
- Identify all the KeyPoints on which you feel a need to expand your knowledge.
- Choose a good book or two and/or info from Internet.
- And then work towards gaining that knowledge.
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- 3. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
To introduce the reader to the
fundamental principles of management
Aim of publication
- 4. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
After developing the KeyPoints outlined in this publication, you should mainly
be able:
☺ define management and outline the planning process
☺ describe the kinds of organizational goals by level, area, and time frame
☺ explain organizing and organization structure
☺ detail job design and job specialization
☺ specify motivation and describe its importance in the workplace
☺ define and discuss reward systems
☺ identify four levels of control within an organization
Learning Objectives
- 5. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
Management Fundamentals – Summary
☺ Organizations are groups of people working in a
structured and coordinated fashion to achieve
a set of goals.
☺ Organizations have set organizational with
their purposes.
☺ Organizing involves making decisions about
designing and grouping jobs.
☺ Motivation is an important factor in the
workplace with effect on productivity. Thus,
motivating employees is a challenging task for
managers.
☺ Control is the regulation of organizational
activities enabling a company to anticipate and
adapt to change, cope with organizational
complexity, prevent the accumulation of error,
and minimize costs.
- 6. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 1) The Management Process
(Section 2) The Planning Process
(Section 3) Organizing Jobs
(Section 4) Motivating Employees
(Section 5) The Nature and Management of Control
Management Fundamentals - Sections list
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(Section 1) The Management Process – Summary
☺ To outline the management process and to
describe the importance and scope of
management within a range of
organizations
☺ After completing this section you should
be able to:
☺ define management
☺ outline the basic functions of
management
☺ outline the range of profit-seeking and
not-for-profit organizations in which
management is crucial
- 8. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 1) The Management Process – HighPoints
☺ The nature of management
☺ The basic functions of management
☺ The scope of management
- 9. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 1) HighPoints – The nature of management
☺ Organizations are groups of people working in a
structured and coordinated fashion to achieve
a set of goals
☺ Organizations use four types of resource:
human, financial, physical, and information.
☺ Organizations should aim to be both efficient
and effective
- 10. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 1) HighPoints – The basic functions of management
☺ Management is a set of activities (including
planning and decision making, organizing,
leading, and controlling).
☺ These activities are directed at an
organization's resources (human, financial,
physical, and information) in order to achieve
organizational goals in an efficient and
effective manner.
☺ The four basic functions of management are
planning and decision making, organizing,
leading, and controlling.
- 11. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 1) HighPoints – The scope of management
☺ Managers work in a range of profit-seeking
organizations, from large corporations and
international organizations to start-ups and
small companies.
☺ Management skills are also required in not-for-
profit organizations, including government,
health-care, educational, and non-traditional
organizations.
- 12. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 2) The Planning Process – Summary
☺ To explain the purposes of organizational goals.
☺ After completing this section you should be
able to:
☺ outline the planning process
☺ explain purposes of organizational goals
☺ describe the kinds of organizational goals by
level, area, and time frame
☺ identify who has responsibility for setting
goals
☺ describe how multiple goals are managed
through optimizing
- 13. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 2) The Planning Process – HighPoints
☺ Decision making
☺ Organizational goals
☺ Setting and managing goals
- 14. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 2) HighPoints – Decision making
☺ Decision making drives the planning process
since the goals of an organization follow from
decisions made by managers.
☺ Planning involves determining goals and defining
the means of achieving them.
☺ Planning occurs in an environmental context, and
understanding the environment is a first step in
planning.
☺ All managers should be involved in setting goals,
but the kind of goal that they set varies
according to managerial level.
- 15. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 2) HighPoints – Organizational goals
☺ Goals vary by level, area, and time frame.
☺ The four basic levels of goals are the mission
statement and strategic, tactical, and
operational goals.
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(Section 2) HighPoints – Setting and managing goals
☺ Four purposes of goals are to provide guidance,
promote good planning, motivate employees, and
provide an effective mechanism for evaluation
and control.
☺ Optimizing is a way of balancing and reconciling
possible conflicts between goals.
- 17. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 3) Organizing Jobs – Summary
☺ To define the basic elements of organizations
and to describe approaches to designing and
grouping jobs
☺ After completing this section you should be
able to:
☺ define organizing and organization structure
☺ list the basic building blocks managers can
use in constructing an organization
☺ define job design and job specialization
☺ describe advantages and disadvantages of
job specialization
☺ discuss alternatives to job specialization
☺ define departmentalization
☺ describe how jobs can be grouped
☺ understand how functional
departmentalization works
- 18. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 3) Organizing Jobs – HighPoints
☺ Basic elements of organizing
☺ Designing jobs
☺ Grouping jobs
☺ Using functional departmentalization.
- 19. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 3) HighPoints – Basic elements of organizing
☺ Organizing involves making decisions about how
to group an organization's activities and
resources.
☺ Organization structure refers to the set of
processes that are used to create an
organizational design.
- 20. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 3) HighPoints – Designing jobs
☺ Managers can build an organization by designing
jobs, grouping jobs, establishing reporting
relationships, distributing authority,
coordinating activities, and differentiating
between jobs.
☺ Job design involves defining the specific
parameters of a job.
- 21. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 3) HighPoints – Grouping job
☺ Job specialization refers to the breakdown of
the overall job of the organization into its
component tasks and the assigning of these to
suitably skilled employees.
☺ Job specialization has benefits and limitations.
☺ Alternatives to job specialization include job
rotation, job enlargement, job enrichment, the
job characteristics approach, and work teams.
- 22. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 3) HighPoints –Using functional departmentalization
☺ Departmentalization entails grouping jobs
together in a logical way.
☺ Departmentalization can be implemented
according to four different schemes:
functional, product, customer, and location.
☺ Functional departmentalization is grouping
people according to the particular tasks they
carry out for the organization.
☺ Product departmentalization is grouping people
according to the product that they produce on
behalf of the organization.
☺ Customer departmentalization is grouping
people according to the type of customer they
serve on behalf of the organization.
☺ Location departmentalization is grouping people
according to the region they serve on behalf of
the organization.
- 23. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 4) Motivating Employees – Summary
☺ To explore historical and contemporary
perspectives on motivating employees
☺ After completing this section you should be
able to:
☺ define motivation and describe its importance
in the workplace
☺ outline the historical perspectives on
motivation
☺ describe content, process, and reinforcement
perspectives on motivation
☺ outline emerging perspectives on motivation
☺ identify examples of different approaches to
motivation
☺ define a reward system
☺ describe how an effective reward system is
designed
- 24. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 4) Motivating Employees – HighPoints
☺ Define motivation
☺ Content, process and perspectives of
motivation
☺ Different approaches to motivation
☺ Formulate an effective reward system
- 25. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 4) HighPoints – Define motivation
☺ Motivation is the set of personal forces that
cause individuals to act in certain ways.
☺ Motivation is an important factor in the
workplace - if employees are not motivated, or
are motivated toward the wrong end,
productivity will decline.
☺ Motivating employees is a challenging task for
managers.
- 26. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 4) HighPoints – Content, process and perspectives of
motivation
☺ Historical perspectives on motivation include
the traditional approach, the human relations
approach, and the human resource approach.
☺ The content theories of motivation focus on
what motivates people in the workplace.
☺ Two well-known content perspectives are the
need hierarchy and the two-factor theory.
☺ The process perspective on motivation focuses
on how employees choose to behave to fulfill
their needs and how they evaluate the results
of their behavior.
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(Section 4) HighPoints – Different approaches to motivation
☺ The main theories of the process perspective
are the expectancy theory and the equity
theory.
☺ The reinforcement perspective on motivation
focuses on the role of rewards as they cause
behavior to change or stay the same over time.
☺ Different types of reinforcement can be used
in organizations: positive, avoidance,
punishment, and extinction.
☺ Reinforcement can be given at fixed or variable
time intervals.
☺ Two emerging perspectives on motivation are
the goal-setting approach and the Japanese
approach.
- 28. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 4) HighPoints – Formulate an effective reward system
☺ An organization's reward system determines
how an employee's performance is defined,
assessed, and rewarded.
☺ An effective reward system meets the basic
needs of the individual, compares favorably
with those of other organizations, and is
equitable.
☺ An effective reward system also recognizes
that different people have different needs and
choose different paths to satisfy those needs.
☺ A strategy for increasing motivation is the use
of behavior modification, which applies the
ideas of reinforcement theory in organizational
settings.
☺ Using a modified workweek can increase
motivation by allowing individuals to fulfill
several needs at once.
- 29. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 5) The Nature and Management of Control – Summary
☺ To describe the nature of control and discuss
how control is managed in organizations.
☺ After completing this unit you should be able
to:
☺ define control and discuss its functions
☺ describe the main areas of control and
identify who is responsible for managing
control systems
☺ identify four levels of control within an
organization
☺ describe the steps in the control process
☺ define a control standard and characteristics
of effective control
☺ discuss the reasons for resistance to control
☺ describe how managers can overcome
resistance to control
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(Section 5) The Nature and Management of Control – HighPoints
☺ The nature of control
☺ The steps in the control process
☺ Managing control
- 31. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 5) HighPoints – The nature of control
☺ Control is the regulation of organizational
activities in order to keep performance within
acceptable limits.
☺ Control enables a company to anticipate and
adapt to change, cope with organizational
complexity, prevent the accumulation of error,
and minimize costs.
☺ The main areas of control are the company's
physical, human, financial, and information
resources.
☺ In large organizations, a controller might be
hired to assist managers with controlling
activities.
☺ The levels of control within an organization are
operations, financial, structural, and strategic.
- 32. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
(Section 5) HighPoints – The steps in the control process
☺ The steps of the control process are to
establish a set of control standards, measure
performance, compare standards with
performance, and take corrective action.
☺ A control standard is a target against which
subsequent performance will be compared.
☺ For control to be effective it must be
integrated into the planning process, flexible
enough to accommodate change, and based on
information that is accurate, timely, and
impartial.
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(Section 5) HighPoints – Managing control
☺ Employees resist control systems that
overcontrol, are too narrowly focused, reward
inefficiency, or place too great an emphasis on
accountability.
☺ Managers can overcome resistance to control
by encouraging employees to participate in
setting control standards and by developing
verification procedures that provide protection
for employees.
- 34. Contact Email Design Copyright 1994-2012 © OxfordCambridge.OrgManagement Fundamentals
Management Fundamentals – Conclusion
☺ At this point you should be able to be familiar
with the following:
• The nature of management
• The basic functions of management
• The scope of management
• Decision making
• Organizational goals and its management
• Basic elements of organizing
• Designing and grouping jobs
• Using functional departmentalization.
• Define motivation, its contents, process
and perspectives
• Formulate an effective reward system
• The nature of control and steps in the
control process; and managing control