Basics of management
Model of organizational growth by L. Greiner
Greiner observed that most of the organizations grow because of crises. The older organization is – the more changes happen. Greiner investigated 500 of the biggest enterpreneurships in America and observed that during 4-8 years the enterpreneurship grows steady (evolution) but this time is intertwined with short crises (revolution). After those crises, the management looks for new solutions in a fast and intensive manner, thus the organization comes back to growth.
Attributes of modern organization
The purpose of modern organization is to have the biggest profit
1) Today, organizations use knowledge to reach this purpose
2) Organization thrive for advantage over competition
3) The important aspect is to observe the market and to be able to adjust to the changes
4) Adjusting to the demands of the customer
5) Every member of the organization should be taken into account if something new is about to be introduced and mistakes should be treated as a way to create something new
Managing the organization
Each organization has people, money, facilities. It should be directed by chosen people and the people should have the ability to influence others.
The process of organization should include:
– planning and establishing aims, long- or short-termed
– organizing the positions and employing the people
– motivating people to work
– controlling if everything goes according to plan
There are many different levels of managing
1) The highest (presidents, vice-presidents, chief executives)
2) middle (managers, bosses of departments)
3) first line (master workmen, supervisors) – they spend most of their time supervising their subordinates
Scientific management by F. Taylor
Taylor (1856-1915) was one of the main creator of scientific trend in organization and management. He based his philosophy on 4 principles:
1) work our a solid scientific management so to find the best way of doing tasks
2) give every worker the task that he knows a lot about
3) workers should learn and train all the time
4) managers and workers should respect and trust each other
He called for better salary for workers who performed more tasks than others in the same period. However, many people disregarded his beliefs.
Organizing for work by H. Gantt
He was a co-worker of Taylor and the initiator of new salary for work. He thought that the results and time of work should be noted. He was a supporter of introducing bonus for workers and managers who performed their tasks better.
Classical school of management by H. Fayol
He is a creator of administrative management. He thought that the whole organization should focus on such functions as:
1. technical (regarding production)
2. economic (selling – buying)
3. financial exchange (looking for capital and its circulation
4. insurance (of property and people)
5. bookkeeping (cost analysis, stocktaking)
6. administrative (maintaining and control)
Cooperative relations by E. May
According to May, organization means people, especially those who are in good relations with others. May conducted experiments in many companies and concluded that:
– workers who were honoured were more motivated than those who were financially gratified
– people were more motivated when the supervision was kinder
– the efficiency was better when people had good contacts with others
Contemporary management schools
The classification of the basic schools (trends) in management includes:
1) The school of product organization (engineering trend);
Engineering trend focused on executive processes (production and services) in many branches of economy. The most important person in this school was undoubtedly F.W.Taylor. Other people who supported this school: H. Le Chatelier, K. Adamiecki. H. Ford and others.
2) Universalistic school (classical theory of organization);
This trend focused on establishing rules and abilites that make effective management. Classical theory of organization was created while people were looking for rules of managing complex organizations such as companies. The goal of this trend was focusing on the whole organization and the ways to make it more efficient and better.
3) The school of human behaviour (behavioral);
Trend that consisted in such thoughts:
– the world of an adult person is focused on job activity
– working is a group activity
– social groups created in the work environment control the behaviours of the members of this group
– an entity is motivated not only by economical factors, but also psychosocial
– every group has its own structure and unique system of values
– the basic function of the group is protecting from outside interference and from indiscretion of its members
4) Quantity management system
This trend consisted in:
– treating the structure of organization as whole and purposeful system of mutually connected pieces rather than particular branches
– thus, the manager can see the organization as a whole and be aware that the activity of each team somehow affects the activities of any other team
The essence of management
Management includes activities which serves to improve the behaviour of other people. Person who will be in charge of managing the team has to be:
– able to convince others
– responsible for actions taken
– able to deal in threatening situations
– able to use opportunities that happen
– able to resolve conflicts in a beneficial way
– able to search for new solutions which bring better results.
Characteristic features of manager
Manager is a person who is responsible of a certain group of people working together. There are 3 kinds of management.
1. The lowest rank manager
– it can be a superior workman in a factory, headmaster at school, manager of the shop, they supervise the tasks assigned to others
2. The middle rank manager
– they supervise the lowest rank managers
3. The chief executives
Small group of people responsible for everything that happen in an organization (presidents, vice-presidents)
Every manager has to have at least three skills – characteristics:
1. Technical – the knowledge in certain field
2. Social – coexisting and coworking with others
3. Conceptual – seeing and knowing that everyone is responsible for the success
The place of manager in the organization
The places can differ:
The chief executives (presidents, vice-presidents) are responsible for establishing common goals of oganization and the means to achieve it. They are also representatives of the organization.
The middle rank managers – they are responsible for achieving goals established by presidents and supervising the lower rank managers
The first-line, lowest rank managers (manager of the office, superior workman) – they supervise the work of people who are responsible for getting the work done
Management functions according to M. Archer
1. Planning – establishing goals
2. Organizing – setting positions
3. Managing – giving orders
4. Controlling – checking if everything goes according to plan
5. Employing – recruiting and training of staff
Activities hidden by managers according to Mintzberg
He claimed that managers of all ranks play many important roles in organizations. According to Mintsberg, they are responsible not only for organizing, planning and controlling tasks, but also for creating proper relations between supervisors and superiors. It’s important for the manager to be an informant, collecting information and giving them to higher rank managers. Thus, the goals are achieved easier.
Kinds of abilities according to R. Katz
He distinguished 3 basic skills which every manager need.
1. Technical abilities – the ability to use tools, methods and technology in certain field
2. Social abilities – understanding people and cooperating with them
3. Conceptual abilities – the ability to integrate all businesses of the organization. The manager must solve problems and see what affects the results.
Katz considers technical skills being needed for managers on basic level,
technical and conceptual abilities on medium level. Conceptual abilities are needed mainly for highest rank managers.
Styles of managing according to Lewin-Lipitt-White
Style of management is a constant way in which the supervisor affect the subordinates to achieve goals.
Lewin-Lipitt-White name three such styles
1. Autocratic – the manager establishes goals on his own and assigns tasks in group. The tasks are divided and given as an order.
2. Democratic – the manager encourage the whole group to make the decision. The goals are established together, as well as ways of managing and assigning the tasks to each worker. The manager is included in the tasks.
3. Not-interfering – manager doesn’t make any decisions by oneself, doesn’t participate in group’s tasks, doesn’t judge subordinates – workers are left with freedom.