* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download CCBS-Course-Management Theories and Practice
Survey
Document related concepts
Project management wikipedia , lookup
Workers' self-management wikipedia , lookup
Strategic management wikipedia , lookup
Operations research wikipedia , lookup
Vitality curve wikipedia , lookup
Operations management wikipedia , lookup
Sustainable management wikipedia , lookup
Public administration theory wikipedia , lookup
Environmental resource management wikipedia , lookup
Management consulting wikipedia , lookup
High-commitment management wikipedia , lookup
International Council of Management Consulting Institutes wikipedia , lookup
Transcript
MANAGEMENT THEORIES AND PRACTICE 1 FACILITATOR Godwin Emmanuel, Oyedokun ND (Fin), HND (Acct.), BSc. (Acct. Ed), MBA (Acct. & Fin.), MSc. (Acct.), MSc. (Econs & Fin.), MTP (SA), ACA, FCTI, ACIB, AMNIM, CNA, FCFIP, FCE, CICA, CFA, CFE, CPFA, ABR, CertIFR, FILEX Chief Technical Consultant/Managing Partner OGE Professional Services Ltd GOE Professional Practice FACILITATOR Fifehanmi Bankole CONTENTS • History and Approaches to Management Ideas • Background of Management Theory and implication in practice • Contemporary Trends in Management Theory • Management Practice: Case Study Analysis and Evaluation Introduction Emergency today is a complex function involving public safety and security, business affairs, public and information affairs, information systems administration, communication technologies, mapping sciences and hazard modeling, legal affairs, and coordination with numerous other organizations. This diverse set of functions and activities requires emergency managers to be effective managers of programs and operational managers of many direct disaster activities. The effective management of both program and operational activities requires an understanding of management principles. Management Management is the process of getting things done, effectively and efficiently, through and with other people. (Robbins, DeCenzo, StuartKotze,2002) Management The management process is an integrated whole, even though we may describe the process as a series of separate activities to understand the parts. The model we are using identifies the management functions as planning, organizing, and controlling linked together by leading. What does this mean? Planning determines what results the organization will achieve, organizing specifies how it will achieve the results, and controlling determines whether results are achieved and by using planning, organizing and controlling managers exercise leadership. Management Peter Drucker, a nationally recognized management consultant describes 3 major tasks of managers as: 1. To decided the purpose and mission of the organization. 2. To make work productive. 3. To manage social impacts and responsibilities. Management Management Functions are activities that comprise the Management Process. The four basic Management activities are: Planning Organising Leading Controlling Management Planning - involves defining an organisation's goals, establishing an overall strategy for achieving these goals, and developing a set of plans to integrate and coordinate activities. Setting goals keeps the work to be done in proper focus and helps organisation members keep their attention on what is important. Managers are also responsible for designing an organisation's structure. Organising - involves determining what jobs or tasks are to be done, hiring and choosing who is going to do them, and deciding how they will be done. Management Leading - is influencing other people to get the job done. Leaders direct the activities of others, motivate employees, maintain morale, mold company culture, and manage conflict and communication. Controlling - is making sure that an organisation's performance is up to par with the goals previously set. A manager must continuously monitor and compare actual performance with set standards and take corrective action when necessary. Manager A manager is someone who plans, organises, leads, and controls people and the work of an organisation with the aim of ensuring that the organisation achieves its goals (Dessler, Tarke, Cyr, 2001) “ "People who ignore the past are destined to relive it." A person unaware of mistakes made by others is likely to repeat them. Each generation of managers needs to understand the lessons learned by its predecessors and build on them. Management Roles Interpersonal 1. Figurehead 2. Leader 3. Liaison Informational 1. Monitor 2. Disseminator 3. Spokesperson Decisional 1. Entrepreneur 2. Disturbance Handler Management Skills Technical Conceptual Political Communication Interpersonal Effectiveness Management Tasks Managers need to constantly monitor and anticipate changes occurring in today’s volatile business environment. Organisations are facing many new challenges and forces in today’s more competitive global marketplace. Some of the most significant challenges and trends include: Technological Innovations Globalisation A more Diverse Workforce Changing Political Systems Formation of new Trade Agreements/Areas Synergy Management as a Process What do statements like “ that is a wellmanaged company “ mean? They seem to imply that management is some type of work or set of activities and that these activities are performed quite well and sometimes not so well. Management as a Discipline Classifying management as a discipline suggests that there is a body of knowledge that can be learned. (1) Management is a subject with principles, concepts, and theories. (2) A critical purpose of studying management is to learn how in the process of managing to apply principles, concepts, and theories of management and this is particularly emphasized throughout your internship experiences. (3) This Basic Module you will assume the role of a manager even if this is not your current position. Why? To begin to think, analyze, and apply management theories, concepts and principles within your internship setting. It is never to early to start thinking like a manager. Management is also a Human Activity As a human activity management emphasizes the importance of employees with whom managers work and whom they manage in accomplishing an organization’s objectives. In organizations, people are the most important asset. Successful managers understand this and recognize the need to establish a strong bond between the organization and the relationships of the manager and the people they manage. Management As a Career Spend this module in thinking about the management theories and principles that can contribute positively to your organization. And also think about how you would manage each situation for a more positive outcome. Efficiency & Effectiveness Efficiency means doing a task correctly. Effectiveness is the attainment of a goal. What is the difference exactly? Efficiency is how you go about accomplishing something (means), while Effectiveness is the attainment or completion of a goal (ends). Efficiency & Effectiveness Example: If you kill a fly with a hammer you may be effective (ends - killing the fly). But you would be much more efficient by using a fly swatter (means – waste less energy, swat faster). Why Studying Management Theories & Practice “ In order to understand a theory, one needs to understand the theory that preceded it, and in order to understand that theory, one needs to understand the theory that preceded it A theory is an answer to a question. To understand a theory, one must first understand the question that it answers (Professor Akinlolu Agboola) “ ▷A theory should not be evaluated in relation to common sense, for three reasons: 1. Different people have different conceptions of common sense 2. Common sense changes in time 3. Common sense is not wellformulated and clearly stated (Professor Akinlolu Agboola) “ ▷Common sense is an unstable reference frame for evaluating a theory ▷Instead, evaluate a theory in relation to the previous, welltested, widely accepted theory (Professor Akinlolu Agboola) Theories and Practice A theory is a coherent group of assumption put forth to explain the relationship between two or more observable facts and to provide a sound basis for predicting future events. Stoner: pg. 28 Why: Guide management decision. Shape our view of organization. Make us aware of the business environment. A source of new idea. THE EMERGENCE OF M & O THEORIES The Neo-Human Relation Movement The Contingency Approach The System Approach The Quantitative School The Behavioral Sc School Classical Management Theories 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 AHAB/EVOLUTION/1102 28 1900s TRADITIONAL THEORIES 1940s 1970s MODIFICATION CONTEMPORARY EVOLUTION OF ORGANISATION AND MANAGEMENT THEORIES AHAB/EVOLUTION/1102 29 Traditional/ Classical Theories Scientific Management Efficient Task Performance Bureaucratic Model Modifications Management Science Economic Technical Rationality Human Authority & Structure Relation Administrative Theory Behavourial Science Psychology, Sociology, etc. AHAB/EVOLUTION/1102 Contemporary Approaches System Approach Subsystem & Environment Contingency View No Best Method -Situational Factors. Management Theories and Practice Management theories rely upon observation and mathematics in order to construct a model for business activities. Management practice relies upon case studies and the individual experiences of managers when dealing with workplace situations. Since both schools of management have flaws and benefits, a business owner should study both styles of management in order to improve profitability. (Chris Hamilton) Management Theories and Practice Employees most commonly leave their jobs due to poor management practices. Situation that increases costs and lowers the talent present in a business Business owners should understand good management practices through personal research or formal education in order to create a business model that can: 1. improve employee productivity, 2. eliminate redundancy in processes. and 3. increase retention rates Management Theories and Practice The growth of management concepts was needed to guide the growth of industrial manufacturing A similar growth in emergency management theory also evolved in response to the need for theory, concepts and proven practices in response to the devastating impacts of hurricanes, floods, earthquakes, and chemical spills. Management theory provides a sound basis for supporting the emergence of emergency management theory utilizing the management process from planning, organizing, leading and controlling (Fayol 1916, Mintzbert 1973, Katz 1974, Koontz 1984). MT&P- Limitations Models of human behaviour in a business do not consider all of the variables that can impact profitability. Different businesses face different issues with employees, financial resources and the use of technology. For example, a workplace of single mothers requires a company to focus more on family leave, a consideration that a theorist might not work into a general business model. Management practice can also result in flawed management behaviour: because managers cannot see the business as a whole and instead rely solely upon their own experience. MT&P- Limitations Management theories work best from a macro perspective, such as when a business determines the appropriate model for management as a whole or starts a large project that it has never attempted before. The formal structure of this type of management works best for large corporations that have a top-down management structure which requires uniformity in order to accomplish goals, even if this model slightly decreases productivity. MT&P- Limitations Since management practices rely upon the opinions of managers and employees or a case study in a particular area of business, they work best for informal organizations. Little doubt exists as to whether a management model will work, because the track record of the model speaks for itself. Management practices focus more on dynamics between groups, which allows managers more flexibility in making decisions and helps employees function together as a unit when they work together on a project. Concept of Management The application of management is broadly from individuals up to multi-national companies in worldwide. The objective of management is not only to be a great entrepreneur, but also to build up logical thinking and know how to integrate limited resources to gain the greatest benefits. No matter for a frontline staff, board of management, students or even housewives, they can implement the management knowledges, skills and wisdoms in everyday living to finish jobs effectively and efficiently. Development of Management Since the eighteenth century, in response to the rise of the industrial revolution, production-scale expansion of the historical background, for planning, organizing, leading, and controlling the management of the consequent demand enhancement, led the scholars actively seek to enhance organizational efficiency and the conduct of scientific method to make the operation measurement more effectively to promote organization. Development of Management As times past, the social environment under the several amendments from management theory changed and emerged. Thought through the fundamental of management, representatives of each school with its main point of the introduction, the development trend of management is very helpful for understanding of management concepts. the rise of the industry revolution, has been evolving to a variety of contemporary management theory, including the classical theory, behavioural, quantitative and other theories and new theory, all-inclusive view of each of the times to meet the specific phenomenon and needs for today as the former of different theories are complementary, without exception, it becomes today's managers resources. Types of Management Theory Classical Theory (1): Scientific Management Ideas of early management was developed by the impact of natural methodology and stress rational thinking. The scientific management theory was based on the scientific work to improve individual staff's capacity, the representatives of this theory are Taylor, Jill Perth couple and Gantt. Classical Theory (2): Administrative View Unlike scientific management emphatically individual staff productivity, administration is stressed the operational efficiency of the whole organization, to develop a general theory to explain the good management of the elements required why have laid the infrastructure for today's organization theory to charge for the representatives of Henri Fayol and MaxWeber. Behavioural (1): Hawthorne Experiment Classical Theory is mainly focused on the organization and staff with mechanical perspective, such theory behaviour is concentrated on the point of view of human nature, importance of individual attitudes and behaviours, methods for managers to motivate employees for improving productivity. The most well-known study is the "Hawthorne Experiments." Behavioural (2): Interpersonal Perspective Hawthorne experimental results that the productivity of employees affected by the interaction and the caring of management to staff which can provide staff satisfaction, leading to better performance. This is the basic foundation for the behavioural view of human relations, with Maslow and McGregor, for the representatives in interpersonal perspective. Quantitative Theory: Management Science and Operations Management perspective view Quantitative Theory originated in World War II, the spirit of scientific management commitment, the use of quantitative measurement and computer modelling theory such as analysis of complex business problems, gradually become a branch of the management science and operations management perspective New Theory (1): Systems Perspective Recalling the classical theory and the ideas of behavioural and quantitative theory, you can find many theories points of view are not mutually inconsistent. However, with a different background and practical needs on each amendment, it emphasized that the gradual integration of the new theory formed to the system point of view represented and the contingency perspective. New Theory (2): Contingency perspective With the same theory system, academic industry focuses on how to adapt the environmental change that developed for "contingency perspective". Moreover, there is no "universal solution" for the management to solve such conditions which depends on the circumstances. It would be a timely situation for management to handle the differences of individuals and the environment. How to Manage In the end, contemporary management knowledge is the product of 3 basic approaches: The Classical Approach The Behavioral Approach The management Science Approach We shall discuss more of these in Intermediate and Advanced classes KEY People in Management Theory “ ▷The term management refers to the body of knowledge, concepts and procedures used by managers. ▷A great deal of management knowledge comes from the autobiographies of people who practiced management. ▷(Dr. Shirley Ezell) Adam Smith Modern History Adam Smith publishes The Wealth of Nations Division of Labour Industrial Revolution a. Managers needed skills to: b. Forecast demand c. Ensure that the necessary material resources were available and on hand for producing goods in question d. Assign tasks to people e. Ensure that machines were kept in good working condition f. Find markets for the finished products Frederick W. Taylor (1856-1915) Frederick W. Taylor (1856-1915) Called the Father of Scientific Management Scientifically studied work to identify the “one best way” to get a job done (standardising tasks) Scientifically selected, hired, and trained workers Motivated workers with financial rewards (prorata) Introduced work breaks Henry Gantt (1861-1919) ▷Developed the Gantt chart used for scheduling multiple overlapping tasks over a time period (still widely used in organisations today for scheduling work) ▷Focused on motivational schemes, emphasising the greater effectiveness of rewards for good work ▷Developed a pay incentive system with a guaranteed minimum wage and bonus systems for people on fixed wages Henri Fayol (1841-1925) Believed that management required specific skills that could be learned and taught Designated management as a universal set of functions that included planning, organising, commanding, co-ordinating, and controlling Described the practice of management as something distinct from accounting, finance, production, and the other business functions Developed several principles of management Mary Parker Follett (1868 - 1933) Focused on how organisations cope with conflict Emphasised the human element in organisations and the need to discover and enlist individual and group motivation Introduced three important concepts: The Universal Goal The Universal Principle The Law of the Situation Max Weber (1864-1920) Known as the Father of Modern Sociology Analysed bureaucracy as the most logical and rational structure for large organisations A bureaucracy was a system characterised by division of labour, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships Abraham Maslow (1908- 1970) ▷Developed a needs-based theory of motivation (Hierarchy of Needs) ▷The theory is now considered central to understanding human motivation an behaviour W. Edwards Deming (1900- 1994) Father of Total Quality Management Regarded by the Japanese as the key influence in their postwar economic turnaround Created constancy of purpose for continual improvement of products and services W. Edwards Deming (1900- 1994) Father of Total Quality Management Regarded by the Japanese as the key influence in their postwar economic turnaround Created constancy of purpose for continual improvement of products and services Max Weber Principles Weber believed that an efficient organization should be based on 5 principles Principle 1. In a bureaucracy, a manager’s formal authority comes from the position held in the organization. Principle 2. In this context people should occupy positions because of their performance, not because of their social standing or personal contacts. Principle 3. The extent of each position’s formal authority and task responsibilities should be clearly understood. Principle 4. Positions should be arranged hierarchically to that authority is exercised effectively and employees know to whom they are to report and who reports to them. Principle 5. Managers must create a will-defined systems of rules, standard operating procedures, and norms to control behavior within an organization. The Contributors to Classical Organizational Theory: Weber and Fayol ▷Henry Fayol was the other major contributor and devised his 14 principles of effective management: Principle 1. Division of Labor: Advocated specialization and increasing worker’s responsibilities. Principle 2. Management Authority and Responsibility: Managers must have the authority to give orders and be responsible for effectiveness of their departments. Principle 3. Unity of Command: Employees should receive orders from and report to only one supervisor. Henry Fayol (Cont.) Principle 4. Line of Authority: Restricting the organization’s number of levels enable it to act quickly and flexibly. Principle 5. Centralization: Managers must decide how much authority to centralize at the top and how much to give to workers. Principle 6. Unity of Direction: All workers should be committed to the same plan of action. Principle 7. Equity: Workers are expected to perform at high levels and to be treated with respect and justice. Principle 8. Order: Order is the methodical arrangement of jobs to provide the greatest benefits and career opportunities. Principle 9. Initiative: Managers must encourage workers to act on their own to benefit the organization. Henry Fayol (Cont.) Principle 10. Discipline: Employees would be expected to be obedient, energetic and concerned about the organization’s welfare. Principle 11. Remuneration: Managers should use reward systems, profit sharing and bonuses to acknowledge high performance. Principle 12. Stability of Tenure of Personnel: Long term employment helps employees develop the skills to make significant contributions. Principle 13. Coordination of Individual Interest to the Common Interest: Employees subordinate their individual interest to those of the firm. Principle 14. Espirit de Corps: Importance of a shared commitment and enthusiasm in an effective organization. Contributions of the Classical Approach ▷The greatest contribution of the classical approach was the identification of management as an important element of organized society. ▷The identification of management functions: planning, organizing and controlling provided the basis for training new managers and was a valuable practice. ▷Many management techniques used today: time and motion analysis, work simplification, incentive wage systems, production scheduling, personnel testing, and budgeting are techniques from the classical approach. Summary and Conclusion Managers in today’s market must update tools and principles on a continuous basis. Management development is increasingly global in outlook and places a high value on contributing to organizational effectiveness and competitive advantage. To be successful a manager must use and integrated approach, using a combination of tools and principles. Our society depends on the goods and services provided by different types of organizations that individuals manage. All organizations are guided and directed by the decisions of one or more individuals who are commonly known as managers. Thanks! Any questions? Name – Godwin Oyedokun Email – [email protected] Phone Number - +2348033737184; +2348055863944 Website: www.ogecops.com Name – Fifehanmi Bankole Email – [email protected] Phone Number - +2348090609405; +234813 544 5870 Website: www.bravewealth.smartmediatechnologies.com