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Page 1: MGT 201 Lesson 1
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Means of Livelihood◦ Hunting and Fishing Phase ◦ Pastoral Phase◦ Handicraft Phase◦ Agricultural Phase◦ Industrial Phase

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Household Economy Village Economy National Economy Internal Economy

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Barter Economy Money Economy Money and Credit Economy

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Sole Proprietorship Partnership Corporation

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Pakikipagkapwa tao Bahala na Pakikipagsapalaran Gaya – Gaya Utang na loob, hiya, awa, bayanihan Kasipagan Pagtitipid Pagtitiis Pagtitimpi Katapatan

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Entrepreneurship creates Employment Entrepreneurship improves the quality of

life Entrepreneurship contributes to more

equitable distribution of income taxes and therefore eases social unrest

Entrepreneurship utilizes and mobilizes resources for greater national productivity

Entrepreneurship brings social benefits through the government

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It is a distinct process of planning, organizing, staffing, directing, and controlling, performed to determine and accomplish stated objectives by the use of human beings and others sources

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Management is the attainment of organizational goals in an effective and efficient manner using functions of planning, organizing, staffing directing and controlling.

Management Refers to the processes, techniques in coordinating activities of people, the direction of actions toward common goals.

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Make decisions◦ They develop a process for choosing, from

available alternatives, actions that will achieve desired results.

Organize and Staff the positions◦ They determine the structure and allocation of

jobs, and they place people in them. Plan

◦ They anticipate the future, discover alternative courses of action and set guides for future decisions

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Control Activities◦ They measure actual performance and guide it toward some

predetermined goals.

Lead the group toward its objective◦ They motivate subordinates in their performance

to achieve common objectives.

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Men Material Machine Method Money Minutes

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Planning◦ Refers to the formulation of objectives, programs,

policies, procedures and regulations in order to achieve the goals of the business

Organizing◦ Is the grouping together of people, establishing

relationship among them, and defining the authority and responsibility the personnel have

◦ The delegation of responsibility and authority

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Staffing Involves filling and keeping filled the positions

provided in the organization structure. Directing

This area involves leadership, motivation, approaches and communication

Controlling It measures performance against goals and plans A process of measuring and correcting the

activities of subordinates to assure conformity to plans

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CONTROLLINGMonitor Activities

and make corrections

ORGANIZINGAssign

responsibility for task

accomplishment

PLANNINGSelect goals and ways to achieve

them

DIRECTINGUse influence to

motivate employees

THE PROCESS OF MANAGEMENT

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Interpersonal◦ Pertains to the relationship with others and are related to

the human skill Informational

◦ This describes the activities used to maintain and develop an information network

Decisional ◦ Focus on choosing among the best alternative courses of

actions

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Figurehead◦ Performs ceremonial and symbolic duties such as

receiving visitors, signing legal documents Leader

◦ Directs and motivates subordinates, trains, counsels and communicates with subordinates

◦ Liaison Maintains information links both inside and

outside the organization

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Monitor Seeks and receives information, scan reports and

maintain personal contacts Disseminator

Forwards information to other organizations members; sends memos and reports, make phone calls

Spokesperson Transmits information to outsiders through

speeches, reports and memos

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Entrepreneur Initiates improvement projects, identifies new

ideas, delegates responsibilities to others Disturbance Handler

Takes corrective action during crisis, adapts to environmental crises

Resource Allocator Distributes resources, schedules, sets budgets

and priorities Negotiator

Represents departments during negotiation contracts, sales and budget

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Societal Forces Political Forces Economic Forces

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The Classical or Traditional School The Human Relations School The Management Science or Quantitative

School Modern Management

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This theory of management is built on principles

These principles have been Suggested by theories presented by: Mooney, Reiley, Urwick, Gullick, Fayol, Emerson and Taylor

These principles were believed and prescribed in aiding and setting up and managing an organization

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DIVISION OF WORK: Work should be divided among individuals and groups to ensure  that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.                                                                                                                   

AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.                                                                                               

UNITY OF COMMAND: Workers should receive orders from only one manager.                                                                                              

UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction.                                                                                                        

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SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole.                                                                                                                                

REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay.                                                                                                  

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CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.                                                                                                                  

SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.                                                                                                    

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ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.                                                                          

EQUITY: All employees should be treated as equally as possible.                                                                                                                 

STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.                                                                                                 

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SIMPLICITY: unnecessary elements should be eliminated from all activities as well as from the process and procedures established for carrying them        

SPAN OF CONTROL: The specific and limited number of subordinates that a manager can effectively handle and control                                  

ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.

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By Frederick Taylor

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First. They develop a science for each element of a man's work, which replaces the old rule-of-thumb method.

Second. They 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.

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Third. They heartily cooperate with the men so as to insure all of the work being done in accordance with the principles of the science which 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 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.

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The Gilbreths made use of scientific insights to develop a study method based upon the analysis of work motions, consisting in part of filming the details of a worker’s activities while recording the time.[24] The films served two main purposes. One was the visual record of how work had been done, emphasising areas for improvement. Secondly, the films also served the purpose of training workers about the best way to perform their work.[25] This method allowed the Gilbreths to build on the best elements of these work flows and to create a standardized best practice

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refers to the researchers of organizational development who study the behavior of people in groups, in particular workplace groups

It originated in the 1930s' Hawthorne studies, which examined the effects of social relations, motivation and employee satisfaction on factory productivity

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The movement viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts, and it resulted in the creation of the discipline of human resource management.

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Physiological Safety and security Social Esteem Self - Actualization

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Mayo stressed the following: Natural groups, in which social aspects take

precedence over functional organizational structures.

Upwards communication, by which communication is two way, from worker to chief executive, as well as vice versa.

Cohesive and good leadership is needed to communicate goals and to ensure effective and coherent decision making

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Theory X◦ The average person dislikes work and will try to

avoid it◦ Most people need to be coerced, directed,

controlled and threatened with punishment to get them to work toward organizational goals.

◦ The average person wants to be directed, avoids responsibility, has little ambition, and seeks security above all.

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Theory Y◦ Most people do not inherently dislike work; the

physical and mental efforts involved is as natural as play and rest.

◦ People will exercise self- direction, self control to reach goals.

◦ Commitment of goals is a function of rewards available that satisfy self- esteem and self-actualization needs.

◦ When conditions are favorable, the average person learns not only to accept but also seek responsibility

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Theory Y◦ Many people have the capacity to exercise high

degree of creativity.◦ The intellectual potential of most individuals is

only partially utilized in most organizations

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Focuses on the use of mathematics, statistics and information technology to support managerial decision making and organizational effectiveness

3 Elements◦ Management Science

Using sophisticated mathematical models for decision effectiveness

◦ Operations Management Responsible for managing the production and delivery

of an organization’s products and services◦ Management Information System

Designing and implementing computer-based information system

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Systems Theory ◦ is an approach which perceives an organization as

a system Contingency theory

◦ is a viewpoint that argues in a condition that managerial action depends on the particular parameter of the situation

Theory A, Z, and Y

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Theory A (American Style)

Theory X (Modified American Style)

Theory Y (Japanese Style)

Short term employment

Long – Term Employment

Lifetime Employment

Individual decision Making

Consensual decision Making

Consensual Decision Making

Rapid Evaluation and promotion

Slow Evaluation and Promotion

Slow Evaluation and Promotion

Specialized Career Path

Implicit, informal control

Implicit, Informal control

Moderately specialized career path

Non specialized Career

Holistic Concern Including Family

Holistic Concern


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