CHAPTER 1

1.1 Management is
Management is getting work done through others.
Efficiency is getting work done with a minimum of effort, expense, or waste.
Effectiveness accomplishing tasks that help fulfill organizational
objectives such as customer service and satisfaction.

1.2 Management Functions

Planning involves determining organizational goals and a means for achieving them.
Organizing is deciding where decisions will be made, who will do what jobs and tasks, and who will
work for whom in the company.
leading, involve inspiring and motivating workers to work hard to achieve organizational goals.
controlling, is monitoring progress toward goal achievement and taking corrective action when progress isnt being
made.

1.3 Kinds of Managers

Top managers hold positions such as chief executive officer (CEO), chief operating officer (COO), chief financial officer
(CFO), and chief information officer (CIO) and are responsible for the overall direction of the organization.
Middle managers hold positions such as plant manager, regional manager, or divisional manager.
They are responsible for setting objectives consistent with top managements goals and for planning and implementing
subunit strategies for achieving those objectives. the implementer of the companys strategy who figures out the how
to do the what.
First-line managers hold positions such as office manager, shift supervisor, or department manager. The primary
responsibility of first-line managers is to manage the performance of entry-level employees who are directly responsible
for producing a companys goods and services.
Team leaders are primarily responsible for facilitating team activities toward accomplishing a goal. This doesnt mean
team leaders are responsible for team performance.

1.4 Managerial Roles

Mintzbergs Manegerial Roles:
Interpersonal Roles : Figurehead, Leader, Liaison
Informational Roles : Monitor, Disseminator, Spokesperson
Decisional Roles : Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator

1.5 What Companies Look For in Managers

Technical skills are the specialized procedures, techniques, and knowledge required to get the job done.
Human skills can be summarized as the ability to work well with others.
Conceptual skills are the ability to see the organization as a whole, to understand how the different parts of the
company affect each other, and to recognize how the company fits into or is affected by its external environment such as
the local community, social and economic forces, customers, and the competition.
Motivation to manage is an assessment of how motivated employees are to interact with superiors, participate in
competitive situations, behave assertively toward others, tell others what to do, reward good behavior and punish poor
behavior, perform actions that are highly visible to others, and handle and organize administrative tasks.

1.6 Mistakes Managers Make

1. Insensitive to others: abrasive, intimidating, bullying style
2. Cold, aloof, arrogant
3. Betray trust
4. Overly ambitious: thinking of next job, playing politics
5. Specific performance problems with the business
6. Overmanaging: unable to delegate or build a team
7. Unable to staff effectively
8. Unable to think strategically
9. Unable to adapt to boss with different style
10. Overdependent on advocate or mentor
1.7 The Transition To Management: The First Year
Stages in the transition to management:

Managers Initial Expectation:

Be the boss, Formal Authority, Manage Tasks, Job is not managing people

After Six Months as a Manager:

Initial expectations were wrong, Fast Pace, Heavy Workload, Job is to be problem solver

After a Year as a Manager:

No longer a doer, Communication, listening and positive reinforcement, Adapt and control, Job is people
development

1.8 Competitive Advantage Through People: Management Practices

1. Employment SecurityEmployment security is the ultimate form of commitment companies can make to their workers. Employees can
innovate and increase company productivity without fearing the loss of their jobs.
2. Selective HiringIf employees are the basis for a companys competitive advantage, and those employees have employment security,
then the company needs to aggressively recruit and selectively screen applicants in order to hire the most talented employees
available.
3. Self-Managed Teams and DecentralizationSelf-managed teams are responsible for their own hiring, purchasing, job assignments, and
production. Self-managed teams can often produce enormous increases in productivity through increased employee commitment and
creativity. Decentralization allows employees who are closest to (and most knowledgeable about) problems, production, and customers
to
make timely decisions. Decentralization increases employee satisfaction and commitment.
4. High Wages Contingent on Organizational PerformanceHigh wages are needed to attract and retain talented workers and to indicate
that the organization values its workers. Employees, like company founders, shareholders, and managers, need to share in the financial
rewards when the company is successful. Why? Because employees who have a financial stake in their companies are more likely to take
a
long-run view of the business and think like business owners.
5. Training and Skill DevelopmentLike a high-tech company that spends millions of dollars to upgrade computers or research and
development labs, a company whose competitive advantage is based on its people must invest in the training and skill development of its
people.
6. Reduction of Status DifferencesA company should treat everyone, no matter what the job, as equal. There are no reserved parking
spaces. Everyone eats in the same cafeteria and has similar benefits. The result is improved communication as employees focus on
problems and solutions rather than on how they are less valued than managers.
7. Sharing InformationIf employees are to make decisions that are good for the long-term health and success of the company, they
need to be given information about costs, finances, productivity, development times, and strategies that was previously known only by
company managers.

CHAPTER 2
2.2 Scientific Management
-Thoroughly studying and testing different work methods to identify the best, most efficient way to complete a job

Father of Scientific Management: Frederick W. Taylor

Frederick W. Taylor (18561915), the father of scientific management, began his career as a worker at Midvale Steel
Company. He was promoted to patternmaker, supervisor, and then chief engineer.

SOLDERING: When workers deliberately slow their pace of restrict their work output. (Limiting work output)
RATE BUSTER: A group member whose work pace is significantly faster than the normal pace in his workgroup.
Taylors Four Principles of Scientific Management
First: Develop a science for each element of a mans work, which replaces the old rule-of-thumb method.
Second: Scientifically select and then train, teach, and develop the workman, whereas in the past, he chose his own work and
trained himself as best he could.
Third: Heartily cooperate with the men so as to ensure all of the work being done is in accordance with the principles of the
science that has been developed.
Fourth: There is an almost equal division of the work and the responsibility between the management and the workmen. The
management take over all the work for which they are better fitted than the workmen, while in the past, almost all of the work
and the greater part of the responsibility were thrown upon the men.
Motion Studies: Frank and Lillian Gilbreth (frank 1868 1924. Lillian 1878 1972)
FRANK: began his career as an apprentice bricklayer. While learning the trade, he noticed the bricklayers using three different
sets of motionsone to teach others how to lay bricks, a second to work at a slow pace, and a third to work at a fast pace.
LILLIAN: was an important contributor to management in her own right. She was the first woman to receive a PhD in industrial
psychology as well as the first woman to become a member of the Society of Industrial Engineers and the American Society of
Mechanical Engineers.

Motion study - broke each task or job into separate motions and then eliminated those that were unnecessary or repetitive.
Time study worked by timing how long it took a first-class man to complete each part of his job.
Charts: Henry Gantt
Henry Gantt (18611919) was first a protg and then an associate of Frederick W. Taylor.

Gantt chart- a graphical chart that shows which tasks must be completed at which times in order to complete a project or task.

2.3 BUREAUCRATIC AND ADMINISTRATIVE MANAGEMENT

Bureaucratic Management: Max Weber

Bureaucracy the exercise of control on the basis of knowledge, expertise, or experience.
- the aim of bureaucracy is not to protect authority but to achieve an organizations goals in the most
efficient way possible.
Administrative Management: Henri Fayol
Frenchman Henri Fayol (18411925) was as important a contributor to the field of management as Taylor. Like Taylor and the
Gilbreths, Fayols work experience significantly shaped his thoughts and ideas about management.

Fayols Fourteen Principles of Management:

Division of work - Increase production by dividing work so that each worker completes smaller tasks or job elements.
Authority and responsibility - A managers authority, which is the right to give orders, should be commensurate with
the managers responsibility. However, organizations should enact controls to prevent managers from abusing their authority.
Discipline - Clearly defined rules and procedures are needed at all organizational levels to ensure order and proper behavior.
Unity of command - To avoid confusion and conflict, each employee should report to and receive orders from just one
boss.
Unity of direction - One person and one plan should be used in deciding the activities to be carried out to accomplish each
organizational objective.
Subordination of individual interests to the general interests - Employees must put the organizations interests
and goals before their own.
Remuneration - Compensation should be fair and satisfactory to both the employees and the organization; that is, dont
overpay or underpay employees.
Centralization - Avoid too much centralization or decentralization. Strike a balance depending on the circumstances and
employees involved.
Scalar chain - From the top to the bottom of an organization, each position is part of a vertical chain of authority in which
each worker reports to just one boss. For the sake of simplicity, communication outside normal work groups or departments
should follow the vertical chain of authority.
Order - To avoid confusion and conflict, order can be obtained by having a place for everyone and having everyone in his or
her place; in other words, there should be no overlapping responsibilities.
Equity - Kind, fair, and just treatment for all will develop devotion and loyalty. This does not exclude discipline, if warranted,
and consideration of the broader general interests of the organization.
Stability of tenure of personnel - Low turnover, meaning a stable work force with high tenure, benefits an organization
by improving performance, lowering costs, and giving employees, especially managers, time to learn their jobs.
Initiative Because it is a great source of strength for business, managers should encourage the development of initiative, or
the ability to develop and implement a plan, in others.
Esprit de corps - Develop a strong sense of morale and unity among workers that encourages coordination of efforts.