Management Fundamentals

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Management Fundamentals

Management Fundamentals
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To introduce the reader to the
fundamental principles of management
Aim of publication

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

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.

(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

(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

(Section 1) The Management Process – HighPoints
☺ The nature of management
☺ The basic functions of management
☺ The scope of management

(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

(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.

(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.

(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

(Section 2) The Planning Process – HighPoints
☺ Decision making
☺ Organizational goals
☺ Setting and managing goals

(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.

(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.

(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.

(Section 3) Organizing Jobs – Summary
☺ To define the basic elements of organizations
and to describe approaches to designing and
grouping jobs
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

(Section 3) Organizing Jobs – HighPoints
☺ Basic elements of organizing
☺ Designing jobs
☺ Grouping jobs
☺ Using functional departmentalization.

(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.

(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.

(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.

(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.

(Section 4) Motivating Employees – Summary
☺ To explore historical and contemporary
perspectives on motivating employees
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

(Section 4) Motivating Employees – HighPoints
☺ Define motivation
☺ Content, process and perspectives of
motivation
☺ Different approaches to motivation
☺ Formulate an effective reward system

(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.

(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.

(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.

(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.

(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

(Section 5) The Nature and Management of Control – HighPoints
☺ The nature of control
☺ The steps in the control process
☺ Managing control

(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.

(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.

(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.

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

Management Fundamentals

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