Professional Documents
Culture Documents
MANAGER vs MANAGEMENT?
Basically a manager is a decision maker ( a person who makes decisions ) The word management originated from 2 (two) sources
menege manu agere
French connection
Latin connection
specialized institutions and organizations to provide the goods and services that we desire daily. These organizations are guided and directed by the decisions of one or more individuals called managers.
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Second, individuals who are not trained as managers often find themselves in managerial positions
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Importance of Management
According to Tripathi (1991), management as a discipline of study is important for the following reasons:
Management is a critical element in the economic growth of the country. Management is essential in all organized effort, be it business or otherwise. Management is the dynamic, life giving element in every organization.
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Definition Of Management
Mary
Parker Follet : Management is the .art of getting things done through other people.. A manager is one who contributes to the achievement of the organizations goals indirectly by directing the efforts of others and not by performing the task himself
Management Management
= =
as a process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources According to this definition, management is seen as a process - a systematic way of doing things. The four management activities included in this definition are: planning, organizing, actuating and control
Donnelly (1987)
.management
as the process undertaken by one or more individuals to coordinate the activities of others to achieve results not achievable by one individual acting alone..
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manager is a person who allocates human and material resources and directs the operations of a department or an entire organization
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include managers of small businesses, chief executive officers of multinational corporations, plant managers and production supervisors both generalists and specialists. Managers are also found in non-profit organizations such as government agencies, religious groups, sports and recreational groups, and trade associations.
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Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.
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Classifying Managers
First-line
Managers
Are at the lowest level of management and manage the work of non-managerial employees.
Middle Top
Managers
Managers
Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization. 14
Managerial Levels
Exhibit 1.1 15
What Is Management?
Managerial Concerns
Efficiency
Doing things right
Getting the most output for the least inputs Involves the cost (means) element
Effectiveness
Doing the right things
Attaining organizational goals More inclined towards the end result
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Exhibit 1.2 17
Managerial Functions
Management = Function(POLC) OR
M =
Whereby.. P
f (P.O.L.C.)
Planning Organizing Leading Control
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O L C
= = = =
Planning
Organizing
Leading
Control
Feedback
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Approach
Planning
Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.
Organizing
Arranging work to accomplish organizational goals.
Leading
Working with and through people to accomplish goals.
Controlling
Monitoring, comparing, and correcting the work.
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Informational roles
Monitor, disseminator, spokesperson
Decisional roles
Disturbance handler, resource allocator, negotiator
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Approach
Technical skills
Knowledge and proficiency in a specific field
Human skills
The ability to work well with other people
Conceptual skills
The ability to think and conceptualize about abstract and complex situations concerning the organization
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Exhibit 1.5 23
Lubber Gullick (1965) defined management as a field of knowledge that seeks to systematically understand why and how men work together to accomplish objectives and make these cooperative systems more useful to mankind. He believed that management fulfills the three criteria for a science : it is founded on a body of theories which are studied and tested systematically against the experience. Management will become more of a science as research expands and theory can guide managers even more on what to do in a particular situation, enabling them to predict the consequence of their decisions.
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Peter Drucker (1968) tidak terima idea bahawa pengurusan adalah sejagat ini, kerana objektif setiap organisasi serta persekitarannya di mana ia wujud berbeza-beza. Memang wujud halangan-halangan tertentu untuk proses pemindahan kemahiran mengurus ini bukan sahaja dari satu industri ke industri yang lain, tetapi juga dari satu industri ke industri yang sama di negara lain. Penghalang utama ini adalah kerana persekitaran dan budaya yang berbeza-beza .
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Sektor Awam
Tanggung jawab sosial diberi keutamaan. Berkhidmat untuk masyarakat. Kepada rakyat secara umum, terutamanya apabila belanjawan dibahaskan di Parlimen Pencapaian kualiti hidup yang lebih baik.
Sektor Swasta
Memastikan penggunaan sumber secara optimum untuk menjanakan untung kepada pemegang syer. Kepada pemegang saham/pemilik syarikat Untung sesyer yang diperoleh serta peningkatan syer pasaran
Skala gaji tetap dan tatacara naik Kenaikan gaji dan pangkat, berkait pangkat yang rigid. Dapat rapat dengan prestasi kerja. menikmati jaminan kerja. Penglibatan yang tinggi. Secara tradisi penglibatan yang kecil atau tidak langsung, tetapi keadaan sedang berubah dengan penglibatan yang semakin sedang meningkat. 27
IMPORTANCE OF MANAGEMENT
Managers provide the direction in all kinds of organizations business, governmental, educational, religious and the service sector. Through these efforts, societal organizational and the individual employees objectives are achieved. Thus, managerial work is critical to everyone interested in the welfare of individual organizations and the society at large. Effective managers may be one of developed countries valuable resources and they are also one of the most needed resources in less developed countries (Peter Drucker, 1969).
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Exhibit 1.11 29
Exhibit 2.1 30
Management General Administrative Theory Quantitative Management Organizational Behavior Systems Approach Contingency Approach
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History of Management
Management
Modern Management
Henry
R. Towne(1844-1924), co-founder of the Yale Lock company, presented a paper titled The Engineer as an Economist in 1886 at Chicago, USA, to the American Society of Mechanical Engineers. In this paper Towne stated:
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are also many good businessmen, but the two are rarely combined into one person. But this combination of qualities, is essential to management of industrial works, and has its highest effectiveness if united in one person. And the management of works has become a matter of such great and farreaching importance as perhaps to justify its classification also as one of modern arts
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Management Scientific Management Personalities involved: - Henri Fayol, Max Webber, Frederick Winslow Taylor, Henri Gant, and Frank and Lillian Gilbreth.
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Administrative management
Administrative
management was concerned primarily with how organizations should be managed and structured. The French businessman Henri Fayol and the German scholar Max Webber were the main contributors to the administrative management stream of classical management.
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Fayol
Believed that the practice of management was distinct from other organizational functions Developed fourteen principles of management that applied to all organizational situations
Max
Weber
Administrative Management
Henri Fayol (1841-1925) He divided all activities of a business enterprise into six areas as shown below: 1 2 3. 4. 5. 6. Technical Commercial Financial Accounting Manageria l Function Protecting - producing and manufacturing of products. - buying raw materials and selling manufactured goods. - getting the capital necessary for business. - recording and taking stock of costs and profits. - planning, organizing, commanding, coordinating and controlling - protecting the assets of the company.
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7.
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Administrative Management
Contributions 1. The classical school made planners aware that there are certain management principles that make for effective management, not only in business but in other fields as well. 2. This school isolated some areas of practical concern to managers that are still relevant today, e.g. the division of labour and the use of managerial authority.
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Scientific Management
Fredrick
Winslow Taylor
Scientific Management
Time and Motion studies. Differential Pay. Reorganization of Supervision. Scientific Recruitment and Training Intimate, Friendly Cooperation between the Managers and Workers.
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Frank
They studied the brick-laying process and then successfully reduced the 18 steps involved in the process to 4 steps. By practicing the Gilbreth method a mason was able to lay 2700 units of bricks a day compared to 1000 units per working day prior to this. The brick-laying productivity increased from 120 units to 350 units per man-hour.
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The greatest contribution by Gantt is the Gantt Chart which is a part of the planning and control process and is used up till today. By using this chart a manager is able to quickly see the progress of the various stages of a certain project such as receipt of input, production and delivery.
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Max Weber (1864 1920), a German sociologist is known as the Father of Bureaucracy. The following are the pillars of bureaucracy: 1. authority and responsibility is clearly defined in detail. 2. the position in an organization is arranged according to hierarchy. 3. promotions are given based on qualification 4. all administrative decisions and actions taken are well recorded to ensure continuity. 5. there exists a difference in entity between the owners and the management of an organization, and 6. the existing procedures are applicable to all workers without fear or favour.
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Contribution. The bureaucratic approach holds a holistic view of the organisation and strives to increase efficiency so that the organisation exists in perpetuity. It differs from the scientific approach which gives attention only to the worker as an individual.
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Limitations . 1. Rigidity of procedures has led to excessive red tape and the decision making process is lengthened and takes a longer time. 2. Organisations that exercise excessive bureaucracy takes a longer time to change to the dynamic environment. 3. Occurs mismatch between doing a job professionally and at the same time adhering to set rules, procedures and processes.
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Exhibit 2.4 52
DO YOU THINK?
IS BUREAUCRACY NECESSARY?
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Behavior (OB)
The study of the actions of people at work; people are the most important asset of an organization
Early
OB Advocates
Early Advocates of OB
Exhibit 2.5 55
behavioural or human relations school of thought evolved because managers found that technical efficiency was not accompanied by harmony at the work place. There was a need to help managers to deal more effectively with the human aspect of management.
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Hawthorne Studies
Elton Mayo (1880-1949) and his associates from Harvard conducted a famous study of human behaviour at the Hawthorne Plant of the Western Electric Company, Chicago. His final conclusion was that when people are accorded special attention they tend to increase their effort. This phenomenon has become to be called as the Hawthorne Effect.
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Hawthorne Studies
The Test Room Studies(1924-1927) Mayo and his associates were testing the effects of variation in illumination on human efficiency. To everyones surprise, output increased in both the experimental and the control group regardless of the decrease in illumination to the twilight level. The findings showed that illumination was only one but not the most important factor that affected output of the workers.
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Hawthorne Studies
This led to the next study which began in 1927. The group of women assemblers who volunteered for the experiment were put in a special test room. It was found that whatever the changes imposed on their working conditions (illumination, working hours, rest periods, room temperature, etc), the groups output continued to rise. There were no ill-effects of the changes on the womens health and they felt greater job satisfaction
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Hawthorne Studies
Interviewing
Studies(1928-1931)
Twenty one thousand people were interviewed. Their finding showed that the reasons for an individuals dissatisfaction with the job cannot be easily identified.
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Hawthorne Studies
The group of men and their supervisors were observed in their normal working conditions. The conclusions drawn were that workers in a group develop social relationships and form group norms. This informal organization affects the workers motivation and output. These studies showed that workers could no longer be considered as a factor of production but must be recognized as: SOCIAL BEINGS WHOSE WANTS, DESIRES AND FEELINGS INFLUENCED PRODUCTIVITY.
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Contributions 1. The early behaviorist discovered that a genuine concern for the individual worker leads to increase in productivity. Mayo balanced the classical approach which treated production as an engineering problem exclusively and the scientific approach which looked upon the worker as a rational being. 2. Mayos teachings put an emphasis on the managers style and drastically changed the training of managers. The teaching of people skills now has become an important aspect of management training.
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While the concept of the worker as a social man did much to counteract the overemphasis on organization and rationality, the experience on the factory floor did not show drastic improvement in productivity as expected.
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System Defined
A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.
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Exhibit 2.6 65
of the organizations parts is essential for proper functioning of the entire organization. and actions taken in one area of the organization will have an effect in other areas of the organization. are not self-contained and, therefore, must adapt to changes in their external environment.
Decisions
Organizations
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Contributions 1. The systems approach helped managers to accept conceptually that seemingly contradictory ideas underlying management theory were actually related. As a result, managers of different specializations have begun to look at how their work relates to the work of others in the achievement of organizations objectives.
2. The systems approach has made possible the better use of simulation models and operations research as in the development and refinement of the sub-systems. When computerized, these methods of problem solving save time and effort and help managers predict and thus avoid possible areas of conflict. In short, decision making is facilitated and improved.
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Limitations 1. The systems approach, while stressing the vital need to prepare the organization well in advance, is not able to help people adapt to change with current times. 2. The usefulness of this approach depends on the degree to which assumptions made about the inter-relationship of the subsystem and overall system reflect reality.
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Approach
Also called operations research or management science Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems Focuses on improving managerial decision making by applying:
Statistics, optimization models, information models, and computer simulations
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Approach Defined
Also sometimes called the situational approach. There is no one universally applicable set of management principles (rules) by which to manage organizations. Organizations are individually different, face different situations (contingency variables), and require different ways of managing.
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contingency approach attempts to integrate the various schools of management thought. According to this approach, management principles and concepts of the various schools have no general or universal applicability in all conditions. In other words, there is no one best way of doing things under all conditions.
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The major contribution of the contingency approach has been to provide managers in real life situations with a method of decision making on all aspects of the internal and external environment.
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Limitations Critics say that there is nothing new in the contingency approach. In fact, this approach has a little bit of everything from the classical to the systems approach. However, supporters of the theory point out that they have made the other theorists more aware that universal principles can be applied without the special circumstances unique to every management situation.
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Management in international organizations Political and cultural challenges of operating in a global market
Ethics
Increased emphasis on ethics education in college curriculums Increased creation and use of codes of ethics by businesses
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Diversity
Aging workforce
Older employees who work longer and do not retire The increased costs of public and private benefits for older workers An increasing demand for products and services related to aging.
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Defined
The process whereby an individual or group of individuals use organized efforts to create value and grow by fulfilling wants and needs through innovation and uniqueness.
Entrepreneurship
process
Pursuit of opportunities Innovation in products, services, or business methods Desire for continual growth of the
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(Electronic Business)
The work preformed by an organization using electronic linkages to its key constituencies E-commerce: the sales and marketing component of an e-business
Categories
of E-Businesses
Management
The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.
Learning
Organization
An organization that has developed the capacity to continuously learn, adapt, and change.
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Exhibit 2.10 80
THANK YOU
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Chapter 2
POLITICAL/LEGAL
ORGANISATION
ECONOMIC
SOCIAL/POLITICAL ECOLOGY
TECHNOLOGY
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and supply of land and raw materials the danger from pollutants and residues the availability of energy resources The availability of raw materials in certain parts of the world has determined the location of industries.
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THANK YOU
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CHAPTER 3
PLANNING
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is the process of setting goals and choosing the means to achieve those goals. plans, managers cannot know how to organize people and resources effectively.
Without
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Characteristics of Planning
Planning
is the beginning of the process of management is an intellectual process which requires managers to think before acting.
Planning
Planning
Types Of Plans
Objectives.
GOALS = S.M.A.R.T.E.R.
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SPECIFIC
M A R T E R
= = = = = =
VISION
MISSION
VISION
VISION:
MISSION:
S.W.O.T. ANALYSIS
S = STRENGTHS W = WEAKNESS
T = THREATS
O = OPPORTUNITIES
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Environmental Appraisal
This is an in-depth analysis of the relevant environment and results in the identification of threats and opportunities available in the firms external environment.
T & O COMPONENT IN SWOT ANALYSIS
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INTERNAL APPRAISAL
REFERS TO AN ANALYSIS OF THE INTERANAL STRENGTHS AND WEAKNESSES OF THE COMPANY INVOLVES THE S & W COMPONENTS OF THE SWOT ANALYSIS
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Policies.
A
policy is a general guideline for decision making. In the words of George R. Terry (1977), policy is a verbal, written or implied overall guide, setting up boundaries that supply the general limits and direction in which managerial actions will take place.
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Procedures.
Policies
are carried out by means of more detailed guidelines called procedures A procedure provides a detailed set of instructions for performing a sequence of actions involved in doing a certain job. The same steps are followed each time that particular job or activity is performed
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requisition from the storekeeper to the purchasing department. calling tenders for the purchase of materials. placing orders with the selected suppliers inspecting the materials purchased by the inspection department. making payments to the suppliers by the accounts department.
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Methods.
A method is a prescribed way in which one step of a procedure is to be performed. A method is thus a component part of the procedure. For performing a particular step, an organization may have a number of methods.
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Rules.
Rules are detailed and recorded instructions that a specific action must or must not be performed in a given situation. In providing overtime to workers, regulating traveling allowances, entertainment bills and other similar matters, a uniform way of handling them or dealing with the case has to be followed.
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Programmes.
Programmes are precise plans or definite steps in sequence which need to be taken to discharge a given task.
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Budgets.
According to the Institute of Cost and Works Accountants of London, a budget is a financial and/or quantitative statement prepared prior to a definite period of time, of the policy to be pursued during that period, for the purpose of obtaining a given objective. Budgets are plans for the future containing statements of expected results in numerical terms, i.e. dollars or ringgit, man-hours, product units, etc
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Strategic Planning
It decides the major goals and policies of allocation of resources to achieve these goals. It is done at higher levels of management. It is long term. It is generally based on long-term forecasts about technology, political environment, etc. and is more uncertain. It is less detailed because it is not involved with the day-to-day operation of the organization.
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Operational Planning .
It decides the detailed use of resources for achieving each goal. It is done at the lower levels of management. It is short term. It is generally based on past performance of the organization and is less uncertain. It is more detailed because it involves the dayto-day operation of the organization.
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ORGANIZING
An Organisation : For much of our lives, we belong to one organization or another-be it a class, a school, a club or an association. Organizations are formed so that people who share a common set of values or interest can work together towards achieving that common objective.
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Organizations defined
Organizations are characterized by: the people or members of the organizations their common objectives the structure they develop to help them achieve these objectives
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An organization is a social unit or a human grouping, deliberately structured for the purpose of attaining specific goals.
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The purpose of organization is to secure that this division (the separation and specialization of task) works smoothly, that there is unity of effort, in other words, coordination.
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Principles Of Organising
The Principle of Objective. Every part of an organization must be an expression of the purpose of the undertaking concerned, or else it is meaningless and, therefore, redundant.
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Principles Of Organising
The Principle of Specialization. The activities of every member of any organized group should be confined, as far as possible, to the performance of a single function.
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Principles Of Organising
The Principle of Coordination. The purpose of organizing as distinguished from the purpose of undertaking, is to facilitate coordination and unity of effort.
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Principles Of Organising
The Principle of Authority. In every organized group supreme authority must rest somewhere. There should be a clear line of authority from the holders of supreme authority down to every individual in the group.
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Principles Of Organising
The Principle of Responsibility. Managers have absolute responsibility for the acts of their subordinates.
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Principles Of Organising
The Principle of Definition. The content of each position (the duties involved, the authority and responsibility it contains, and the relationship with other positions) should be clearly defined in writing and given to all concerned.
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Principles Of Organising
The Principle of Correspondence. In every position the degree of responsibility it carries and the authority it confers should correspond.
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The Principle of Span of Control. No person should supervise more than five, or at the most six, direct subordinates whose work interlocks.
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Principles Of Organising
The Principle of Balance. It is essential that the various elements of the organization should be kept in balance.
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Principles Of Organising
The Principle of Continuity. Organizing is a continuous process, and in every undertaking specific provision should be made or it (Urwick,1952).
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Departmentation
Departmentation is a method of grouping the related task, activities or units of an organization. There are two main method of departmentation : 1. by process or business function 2. by division
product region customer
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THANK YOU
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