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ENGMGMT

A group of people working together in structured and coordinated fashion to achieve a set of goals

• Organization

Types of Organizational Goals

- Profit-seeking
- National defense

- Discovery of knowledge

- Coordination

- Social needs

• Engaging in a set of activities
- Planning and decision making, organizing, leading, and controlling

• Using an organization’s resources

- Human, financial, physical, and information

• Achieving organizational goals in an efficient and effective manner.

Management

Using resources wisely and in a cost-effective way

• EFFICIENTLY

Making the right decisions and successfully implementing them

• EFFECTIVELY

• Someone whose primary responsibility is to carry out the management process.
- Plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.

Manager

Kinds of Managers by Level

• Top Managers
• Middle Managers

• First-Line Managers

• Executives who manage the organization’s overall goals, strategy, and operating policies.

• Top Managers

Largest group of managers in organizations
 Implement top management’s policies and plans.

 Supervise and coordinate lower-level managers’ activities.

• Middle Managers

• Supervise and coordinate the activities of operating employees.

• First-Line Managers

Setting the organization goals and deciding how best to achieve them.

Planning and Decision Making

Monitoring and correcting ongoing activities to facilitate goal attainment

Controlling

Determining how best to group activities and resources

Organizing

Motivating members of the organization to work in best interests of the organization

Leading

Fundamental Management Skills

• Technical
• Interpersonal

• Conceptual

• Diagnostic

• Communication

• Decision-Making

• Time-Management

The skills required for work done in an organization.

• Technical

The ability to communicate with, understand, and motivate both individuals and groups.

• Interpersonal

The ability to think in the abstract.

• Conceptual

The ability to visualize the appropriate response to a situation.

• Diagnostic

The ability both to convey and to receive ideas and information effectively from others.

• Communication

The ability to recognize and define problems and opportunities and then to select a course of action to solve problems and capitalize on opportunities.

• Decision-Making

The ability to prioritize work, to work efficiently, and to delegate appropriately.

• Time-Management

• Assumes problems can be approached using rational, logical, objective, and systematic ways.
• Requires technical, diagnostic, and decision-making skills and techniques.

• The Science of Management

• Requires a blend of intuition, experience, instinct, and personal insights.
• Requires conceptual, communication, interpersonal, and time-management skills to accomplish managerial tasks activities.

• The Art of Management

• Provides a conceptual framework for organizing knowledge and providing a blueprint for action.
 Management theories are grounded in reality.

 Managers develop their own theories.

Why Theory?

• An awareness and understanding of historical developments in management are important.
 Furthers development of management practices.

 Avoids mistakes of others in the past.

Why History?

• Recognized the importance of human resources and the welfare of workers.

• Robert Owen (1771–1858)

• Focused on creating production efficiencies through division of labor, and application of mathematics to management problems.

• Charles Babbage (1792–1871)

- Concerned with improving the performance of individual workers (i.e., efficiency in output).
- Grew out of the industrial revolution’s labor shortage.

• Scientific Management

- Focuses on managing the total organization rather than individuals.

• Administrative Management

- Replaced old work methods with scientifically-based work methods.
 Eliminated “soldiering,” where employees deliberately worked at a pace slower than their capabilities.

- Believed in selecting, training, teaching, and developing workers.

- Used time studies of jobs, standards planning, exception rule of management, slide-rules, instruction cards, and piece-work pay systems to control and motivate employees.

Frederick Taylor (1856–1915)

- Both developed techniques and strategies for eliminating inefficiency.
 Frank reduced bricklaying movements, resulting in increased output of 200%.

 Lillian made substantive contributions to the fields of industrial psychology and personnel management.

• Frank and Lillian Gilbreth

- Identified the specific management functions of planning, organizing, leading, and controlling.

• Henri Fayol (1845–1925)

- Integrated work of previous management theorists.

• Lyndall Urwick (1891–1983)

- His theory of bureaucracy is based on a rational set of guidelines for structuring organizations.

• Max Weber (1864–1920)

- Laid foundation for later developments.
- Identified important management processes, functions, and skills.

- Focused attention on management as subject of scientific inquiry.

Contributions

- More appropriate for use in traditional, stable, simple organizations.
- Prescribed universal procedures that are not appropriate in some settings.

- Employees viewed as tools rather than as resources.

Limitations

- Emphasized the importance of individual attitudes and behaviors, and group processes.

Behavioral Management

- Advocated applying psychological concepts to employee selection and motivation.

Hugo Munsterberg (1863–1916)

- Recognized importance of human behavior in the workplace.

Mary Parker Follett (1868–1933)

 Lighting adjustments affected both control and experimental groups of employees.

- Illumination study

 Incentive plan caused workers to establish informal levels of individual output.
 Over-producing workers were labeled “rate busters.”

- Group study

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