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What is an organisation?

common purpose, deliberate structure, people


Why do we need organisation?

provide a way for people to achieve goals within, political, economic and social systems


Mangers Responsibility Views

Omnipotent -
when profits are up = managers take credit and reward themselves
when profits are down = top management staff replaced, smaller businesses go out of business
Symbolic -
forces outside of managers control maybe be influenced by:
- economy
- market (customer) changes
- government policies
- competitor's actions
- decisions made by previous managers


What is Management?

Management is a goal orientated process that involves the allocation of resources and the co-ordination of the talents and efforts of a group of people
Develop, align, integrate purpose, people and process
- management is about success
- management is a process of achieving organisational goals through : Four functions of managerial process


Four Functions of the Managerial Process

Planning - setting goals and determining how to accomplish them
Organising - implementation phase: assigning tasks and allocating resources and co-ordinating
Leading - influencing others to do their best work for the organisation
Controlling - measuring performance against desired result


What do managers actually do?

- work long hours
- work at an intense pace
- work is fragmented and varied
- work with many communication media
- work largely through interpersonal relationships


Levels of Managers

Top managers
Middle managers
Project managers
Team leaders or supervisors


Managerial Roles

Interpersonal roles
Informational roles
Decisional Roles


Managers Need Skills



Effectiveness vs Efficiency

effectiveness = "doing the right thing"
- measure of task or goal accomplishment
efficiency = "doing things right"
- measure of resource cost associated with goal accomplishment


History Important?

ideas and practices developed many years ago have an influence in shaping our beliefs and practices today
- understanding the past, can develop for today


Preclassical contributors

Robert Owen (1771-1858)
cotton mill owner that pioneered ideas about better treatments of workers
He proposed:
- limiting employment in factories to workers over 10
- reducing the workday to 10 an half hours
-prohibiting night for children
Henry R. Towne (1844-1924)
- establishment of science of management principles


Approaches to Management

Classical Approach:
- scientific management
- administrative management
- bureaucratic management
Quantitative Approach
Modern Approach:
- systems theory
-contingency theory


Classical Approach: Scientific Management

Frederick Taylor (1856-1915)
(the father of scientific management)
- addressed the question of how to increase productivity given a shortage of labour


Four Principles of Scientific Management

1. Study task and work out best method
2. Select workers with right abilities
3. Carefully train workers and give the proper incentives
4. Support workers through careful planning


Classical Approach: Administrative Management

Focuses on the principles that can be used by managers to co-ordinate the internal activities of the organisation
- Henry Fayol (1841-1925) defined the four managerial functions
- Mary Parker Follet = employee ownership, profit sharing


Classical Approach: Bureaucratic Management

Emphasis the need for organisations to operate in a rational manner rather than relying in the arbitrary whims of owners and managers
- Max Weber (1864-1920) coined the term 'Bureaucracy' to apply to the idea of large organisations operating on a rational basis


Major Characteristics of Weber's idea bureacracy

-clear division of labour
-well-defined hierarchy
-formal rules and procedures
-career advancement based on merit


The Hawthorne Effect

The possibility that individuals singled out for a study may improve their performance simply because of the added attention they receive from researchers, rather than because of any specific factors being tested


Human Relations Approach

-The key to productivity, at that point, appeared to be demonstrating greater concern for workers
- Emphasis on building more collaborative and co-operative relationships between supervisors and workers
-allowed for self-actualisation


Example of theory

Douglas McGregor developed the 'Theory X/Theory Y' dichotomy
-Theory X managers tend to assume workers are:
lazy need to be coerced, little ambition
-Theory Y managers tend to assume workers are:
like work, capable of self-control, creative and innovative


Behavioural Science

-job satisfaction
-interpersonal behaviour
-group dynamics


Quantitative Approach

- this was a movement back to rational, scientific approach and was adopted because of the need to solve complex problems in business
- this approach focuses on the use of mathematics, statistics and information systems to assist and support managerial decisions making and enhancing organisations effectiveness


Modern Approach

This viewpoint grew from recognising that no one model or universally theory fits all organisations
- people and situations are complex and variable and can change over time
- variances must be taken into account


Modern Approach: systems theory

1. Inputs
2. Transformations
3. Outputs
4. Feedback from environment


Modern Approach: Contingency theory

appropriate managerial action depends on the situation


What is operations management?

Is the set of activities that creates value in the form of goods and services by transforming the inputs into the outputs
- in manufacturing
- in services
productivity = outputs/inputs
- competitive advantage: allows an organisation to deal with market and environmental forces better than competitors


Product and Service Design

The product design affects:
- the appeal to the customers
- its costs and usability
Today customers often think how a product looks is just as important as how it works


Product Strategy Options

Low price
Rapid Response


Product Development Decisions

An effective product strategy links product decisions with: