MGT1111 Organisation and Management Agenda Setting and Network Building HW

ORGANISATION AND MANAGEMENT MGT 1111 Centre for Innovative and Lifelong Learning UNIVERSITY OF MAURITIUS ORGANISATION AND MANAGEMENT MGT 1111 SUPPORT MATERIALS Centre for Innovative and Lifelong Learning UNIVERSITY OF MAURITIUS ii Contributors ORGANISATION AND MANAGEMENT – MGT 1111 was prepared for the University of Mauritius. The University of Mauritius acknowledges the contribution of the following persons from the Faculty of Law and Management, University of Mauritius: Course Authors: R Baichoo (Miss) Associate Professor M Boolaky Associate Professor D Gokhool D Lai Wai J A Peerally (Miss) R R Ramsaran Fowdar (Mrs) A Seebaluck I Vencatachellum Further editing: R R Ramsaran Fowdar (Mrs) August 2015 All rights reserved. No part of this work may be reproduced in any form, without the written permission from the University of Mauritius, Réduit, Mauritius. iii TABLE OF CONTENTS About the Course Unit 1 Introduction to Management – Mrs R R Ramsaran Fowdar Unit 2 The Evolution of Management – Miss J A Peerally Unit 3 Planning – Dr M Boolaky Unit 4 Decision Making – Miss R Baichoo Unit 5 Organising – Mr D Lai Wai Unit 6 Motivation – Associate Professor D Gokhool Unit 7 Leadership – Mr I Vencatachellum Unit 8 Control – Mr A Seebaluck References Answers to “Additional Activities” Past Examination and Class Test Papers iv We strongly recommend that you read this section before proceeding with the course. ABOUT THE COURSE ORGANISATION AND MANAGEMENT (O&M) – MGT 1111 is a one semester course for both diploma and degree students from the five faculties of the University. Most of you will move into positions of management responsibility at some time in the first part of the twenty first century. What challenges will you face and how would you best be prepared to meet these challenges. O&M aims to provide you with an overview of the evolution and an understanding of the major theories and practices related to the management of organisations. This module will therefore enable you to understand the complex and demanding nature of managerial functions in yesterday’s, today’s and tomorrow’s work environments. HOW TO PROCEED SUPPORT MATERIALS The support materials contain no prescribed textbook. You might, however, find it useful to refer to the following textbooks: 1. Bartol, K.M., Martin, D., Tein, M. & Matthews, G., Management: a Pacific Rim Focus, (latest edition), McGraw-Hill, Australia. 2. Robbins, S., Management, (latest edition), Prentice-Hall International. 3. Boolaky, M., Gokhool D., Seebaluck A., (1999), Management: Concepts and Applications, Editions de L’Ocean Indien. A few copies of these books are available at the UOM Library. There is also a list of references – sources used for the preparation of the units- at the end the support materials. Feel free to consult these books to deepen your knowledge of management and also to prepare assignments. v A Student Reference Manual is distributed together with the support materials. This is a valuable information source aimed at helping you formulate your written assessment tasks. Video Sessions The course also includes a set of video programmes, Taking the Lead, the Management Revolution (1993), produced by INTELECOM, (USA) and acquired through the Mauritius College of the Air. The set includes the following episodes: Video Programmes (30 minutes each) Related to Unit in the support materials Episode 1: Management at Work: the Unit 1: Introduction to Management Managerial World Episode 2: In transition: The Changing, Unit 2: The Evolution of Management Challenging Environment Episode 14: All Systems Go: Motivating Unit 6: Motivation for Excellence Episode 16: At the Helm: Styles of Unit 7: Leadership Leadership Note: 1. For more information on the above, kindly liaise with your respective tutor. 2. Please refer to Module Information Sheet for more information (assessment criteria, exams, etc.) about the module. vi UNIT 1 INTRODUCTION TO MANAGEMENT Unit Structure 1.0 Overview 1.1 Learning Outcomes 1.2 The Meaning of Management 1.3 Management Functions 1.4 The Importance of Management 1.5 Management Skills 1.6 Types of Managers 1.6.1 Management Levels 1.6.1.1 Management Levels and Functions of Management 1.6.1.2 Management Levels and Skills 1.6.2 Responsibility Area 1.7 What Managers Actually Do 1.7.1 Work Methods 1.7.2 Managerial Roles 1.7.3 Agenda-Setting and Network-Building 1.8 The Challenge of Management 1.9 Key Concepts 1.10 Additional Activities 1.11 Video Session 1 1.0 OVERVIEW This Unit introduces the concept of management and outlines the work of a manager. This Unit includes a video session. Refer to the Study Guide. 1.1 LEARNING OUTCOMES After you have successfully completed this Unit, you should be able to do the following: 1. Define management. 2. Explain the four functions of management. 3. Discuss the importance of management. 4. List the three skills, which an effective manager requires. 5. Describe the various management levels in a large organisation. 6. Explain how managerial work differs according to hierarchical level and responsibility area. 7. Discuss how the importance of management functions and the skills needed by managers vary at different levels of the hierarchy. 8. Describe the ten major roles performed by managers and evaluate Mintzberg’s role approach. 9. Explain the aims of agenda setting and network-building and identify the factors which influence a manager’s work agenda. 10. Explain how vision, ethics, respect for cultural diversity and training can help people meet the challenge of management. 2 Warm-up activity Peter is the manager of a branch of Pizza Hut. Jot down the duties which you think he has to perform as the manager of a pizzeria. Your answers will be discussed in the tutorial. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 1.2 THE MEANING OF MANAGEMENT The task of management is to get work done through other people in order to achieve the goals and objectives of organisations. An organisation can be defined as a systematic arrangement of two or more people who work together to achieve a specific goal or set of goals. While some organisations are structured in a very formal way, such as Happy World Foods Ltd., Mauritius College of the Air, Air Mauritius Ltd. and the Ministry of Labour, 3 others are more casually organised, like your neighbourhood football team. However, all these organisations share three common characteristics (Robbins 1988): (i) Each has a distinct purpose which can be expressed in terms of a goal or set of goals. For instance, the goal of the University of Mauritius is to provide quality tertiary level education to students, and the goal of the neighbourhood football team is to do its best to win all football matches played with rival teams. (ii) Each is composed of people. (iii) Each develops a structure that defines and limits the behaviour of its members. For example, rules and regulations are created, and tasks and responsibilities are assigned. Activity 1 Does Pizza Hut satisfy the basic criteria underlying the concept of an organisation? Elaborate on your answer. 4 An organisation must be organised and properly managed if it is to achieve its goals. Now, let’s look at the various definitions of management. ‘Management is the art of getting things done through other people.’ Mary Parker Follett ‘Management refers to the process of getting activities completed efficiently, with and through other people.’ Stephen Robbins ‘To manage is to forecast and plan, to organise, to command, to coordinate and to control.’ Henri Fayol ‘Management is the process of achieving organisational goals through engaging in the four major functions of planning, organising, leading and controlling.’ Kathryn Bartol et al. ‘Management is the process of planning, organising, leading and controlling the work of organisation members and of using all available organisational resources to reach stated organisational goals.’ James Stoner et al. The above definitions are extremely broad. Follett’s definition highlights the social nature of management and indicates that managers achieve organisation
al goals by allocating and delegating the required tasks to employees and not by performing the tasks themselves. This definition is not adequate of course and this is recognised in Robbins’ definition of management where it is said that managers work in collaboration with other people. 5 It is worth explaining the term ‘efficiently’ used by Robbins and the difference between efficiency and effectiveness. Managerial performance in an organisation comprises two dimensions: effectiveness and efficiency (Drucker 1967). Effectiveness is ‘the ability to choose appropriate goals and to achieve them’ (Bartol et al. 1997), that is doing the right thing. Effectiveness can therefore be divided into two parts: first, choosing the right goals and second, achieving these goals. Efficiency is ‘the ability to make the best use of available resources at minimum cost in the process of achieving goals (Bartol et al. 1997), that is doing things right. Efficiency is basically an ‘input-output’ concept. An efficient manager is one who achieves more output or results from a given input (such as materials, money, labour, equipment) or the same output from less input (Robbins 1994). Efficient managers should therefore minimise the cost of resources. The word ‘process’ in the definitions by Bartol et al. and Stoner et al. indicates that managerial activities are carried out in a systematic way. All managers achieve their goals by engaging in the four main functions of planning, organising, leading and controlling. It is on these functions that management activity is based. Therefore, they are used as a framework by which management is studied. It is useful to note that the term ‘command’ in Fayol’s view of management is being replaced by the term ‘lead’ in the definitions propounded by contemporary authors. 6 Activity 2 Define management. 7 1.3 MANAGEMENT FUNCTIONS Management has been described above as a process whereby the resources of an organisation are used to achieve organisational objectives. The traditional approach, which is used to examine this process, is to condense it down to planning, organising, leading and controlling activities (called the POLC approach). These four functions are interrelated and are equally important in achieving the organisation’s goals. For instance, a manager cannot just do the planning and ignore the other aspects. Although these four functions do not tell the whole story about what constitutes management, they are a convenient way of describing most of the key aspects of the work of managers in practice (Cole 1996). Let’s now describe these four functions in detail. PLANNING Planning is usually listed as the first function of management. This is because we must have a plan before we can organise. Planning can be defined as the management function which involves setting the company’s goals and then determining the means to achieve these goals, or in other words, deciding how best to achieve them. In simpler terms, we must first decide what to do and then find out how to do it. As you can see, planning involves decision-making and therefore, this support materials shall address both these elements in detail in Unit 3 – Planning and Unit 4 – Decision-Making respectively. ORGANISING Organising is the management function which focuses on arranging and allocating work, authority, and resources among an organisation’s members so that plans may be successfully carried out. This function involves the setting up of an organisational structure whereby work is allocated, lines of authority and responsibility defined, and a system of rules and regulations which guide the conduct of employees laid down. This structure should constantly change to suit the organisation’s needs. The organising function will be examined in more detail in Unit 5 – Organising. 8 LEADING The next management function is that of leading. Leading involves influencing others to engage in the work behaviours necessary to reach organisational goals (Bartol 1997). The manager must communicate with his/her subordinates, explain his/her plans to them, and lead and motivate them to exert their maximum efforts to achieve the goals. Key aspects of motivation and leadership will be dealt with in Unit 6 – Motivation and Unit 7 Leadership. CONTROLLING Controlling is the management function aimed at regulating organisational activities so that actual performance will conform to expected organisational standards and goals (Bartol 1997). Therefore, the controlling function consists of three steps: (i) Establishing a standard or target, (ii) Measuring current performance and comparing it with the standard, and (iii)Taking corrective actions if deviations are detected. This function will be discussed in more detail in the Unit 8 – Control. 9 Activity 3 Some of Peter’s management activities are listed below. function that normally includes each activity. ACTIVITY Planning Organising 1. Deciding to open a take-away counter. 2. Assigning job duties. 3. Communicating to employees about new pay incentives. 4. Deciding to increase the price of pizzas. 5. Checking that pizzas are prepared on time. 6. Hiring new cooks. 7. Checking menu cards to ensure that correct prices are being charged. 8. Monitoring opening and closing schedules. 9. Instituting an employeesuggestion scheme. 10. Appointing a marketing manager to take charge of sales. 10 Tick the management Leading Controlling 1.4 THE IMPORTANCE OF MANAGEMENT An organisation with access to materials, machines and manpower will fail if the most important element is missing- the ability to efficiently use these resources. Many businesses have failed because of mismanagement. Some call it bad planning, others blame it on lack of foresight or even bad luck. In our country, some well-known examples of mismanaged companies include Litra Co. Ltd., MCCB Ltd., Howard and Sang Furniture Ltd., Super Centre and recently, H. Teeluck & Sons Ltd. These testify to the importance of proper management. Resources can only be put to proper use by an efficient manager. In the words of Peter Drucker (1989), “The responsibility of management in our society is decisive not only for the enterprise itself but for management’s public standing, its success and status, for the very future of our economic and social system and the survival of the enterprise as an autonomous institution”. 1.5 MANAGEMENT SKILLS Robert Katz has identified three basic types of skills that make up effective management: technical, human and conceptual skills. Technical skill is the ability to use the procedures, techniques and knowledge of a specialised field (Stoner et al. 1994). This skill may be acquired through education, training or experience. The sales manager, for example, must be familiar with marketing techniques, the products of his company, and the tastes of his customers, his sales territories and the distribution network. 11 Human skill refers to the ability to deal with other people. A manager must be able to work with, communicate, understand and motivate others, both as a member of a group and as a leader who gets things done through others. Conceptual skill is the mental ability to see the overall picture and to understand how one part is related to the others. It is an important skill because a manager must be able to understand how, for instance, his actions can affect other departments, or how environmental influences can affect the organisation. We shall see in section 1.6.1.2 how the required mix of these three skills varies according to the manager’s rank in the organisation. Activity 4 It has been said that good managers are born, and as such management skills cannot be acquired. Discuss this statement. 12 1.6 TYPES OF MANAGERS Managers can be classified in two ways: (i) by their level in the organisation; for example, as first-line, middle or top managers and (ii) by the range of organisational activities for which they are responsible; for example, as functional or specialist managers and general managers. 1.6.1 Management Levels The various levels of management in a large organisation form the management pyramid as illustrated in Figure 1.1. TOP MANAGE
MENT Board of Directors Chief Executive Officer Managing Director President MIDDLE MANAGEMENT Department Head Divisional Manager Plant Manager FIRST-LINE MANAGEMENT Supervisor Foreman Figure 1.1. The Management Pyramid 13 Top managers are managers at the very top levels of the hierarchy and are responsible for the overall running of the organisation. Typical titles of top managers include chief executive officer, president, and chairman of the board of directors, managing directors and general manager among others. Top managers develop overall plans for the company and make major decisions such as whether the company should expand its operations or whether new products should be launched. Top management has to work to some extent with the upper layers of middle management in implementing the plans. They also oversee organisational progress and spend much time in understanding how changes in the business environment can affect the company’s operations. Middle managers, also referred to as tactical managers (see Unit 3) are managers below the top levels of the hierarchy and are directly responsible for the work of first-line managers and sometimes for that of operating employees as well. Operatives or operating employees work directly on a task or job and do not hold the responsibility of monitoring the work of others while a manager’s work includes directing the activities of other people. A computer engineer is an example of operating personnel. Middle managers include plant managers, divisional, department or section heads. They are responsible for working out detailed plans and procedures in line with the overall plans laid down by top management. Middle managers are frequently part of several layers of the hierarchy in large organisations. Since the 1980s however, there is a trend towards fewer layers of middle managers in order to reduce costs, improve communication and to push decision-making closer to the operating level. As a result of this trend, the pressure on the remaining middle managers is higher since they now have to share more work and responsibility. First-line managers are managers at the lowest level in an organisation. They direct the work of operating employees only: they do not supervise the work of other managers. First-line managers are sometimes called supervisors. Examples of first-line managers include foreman, production supervisors in a manufacturing plant, technical supervisors in a repair shop, or floor sale supervisors in a departmental store. These managers are 14 responsible for the direct implementation of the plans developed in conjunction with middle management and for the smooth running of day-to-day operations. Research predicts that the autonomy and influence of first-line supervisors are likely to decline due to  increasing worker participation in workplace management, a trend towards work teams,  increased use of computers to track activities formerly monitored by first-line managers and,  increasing number of specialists who provide advice and direction to work areas involving sophisticated technology in particular (Bartol 1997) 1.6.1.1 Management Levels and Functions of Management No matter what title or position they hold, managers at all three levels on the pyramid perform the same functions of planning, organising, leading and controlling in trying to achieve the organisational goals. However, research demonstrates tha …

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