Principles and practice of Management

• Planning


  The process of identifying/establishing purpose/goals/objectives of an organization/department, appreciating and understanding the premises/context (environment) of planning, identifying/determining alternative courses of action, evaluating each alternative course of action with reference to objectives, selecting the most appropriate course of action, collecting relevant information/data, identifying/harnessing/mobilizing needed resources, identifying/establishing work/goal-related tasks, arranging work/tasks in priority groups, creating job descriptions, duties and responsibilities, quality manuals, organization manuals and standards, formulating standards/methods of evaluation, implementing the plan, and evaluating the performance and taking appropriate action
• Limitations in planning and plans

  • Planning does not guarantee success, the environment of planning is dynamic, subjective attitudes and perceptions of planners can ruin the planning/plan, effective planning depends on accurate forecasts, resistance to change, disjointed team dynamics, lack of motivation, inability to be objective, no clear achievable goals, indecision and rigidity
• Perspectives/approaches to planning


  • Reactive - past oriented, inactive - present oriented, preactive - predict the future, proactive - create the future
• Enhancing effectiveness in planning

  Planning should be a flexible process which takes into account the various changes taking place in and outside the organization, objectives must be set in the light of the economic, social, cultural, political, technological, legal and ethical elements of the organizations environment, managers need to appreciate and practice strategic (process) planning, and manage for (mitigate against) the barriers of planning
• Qualities of a good plan


  • Objectives must be provided (SMART), simplicity, clarity, comprehensiveness, flexibility, economical, standards are provided for to measure, balanced across the other plans in the organization, practicable
• Organizing


  The grouping of activities to attain stated objectives, authority and responsibility assigned to a manager for each grouped activity area to supervise it, provision for vertical and horizontal coordination enterprise wide
• The process of organizing


  Identification and division of work, grouping the jobs and departmentalization, assignment of duties and responsibilities, establishing reporting relationships
• Principles of organizing


  • Unity of objective, principle of efficiency and effectiveness, scalar chain, adequacy of authority, responsibility for results, accountability/answerable, division of work, unity of command
• Delegation


  Assigning formal authority and responsibility, and work to subordinates, delegation does not make managers any less responsible to their superiors, delegation is not abdication of responsibility/accountability by delegator, manager must first assign responsibility, then grant the authority necessary to carry out the task and finally create accountability
• Possible hindrances/barriers to effective delegation

  • Personal negative attitudes, lack of confidence/capacity/skill, nature of work/tasks, interpersonal skills
• Benefits of delegation


  Reduces managers workload, enhances culture of cooperation and trust, speeds up task completion and results, empowers and motivates subordinates, prepares employees for future higher level positions
• Demerits/limitations of delegation


  Technical/specialization tasks should/cannot be delegated, open to subjective factors, may be a risk of quality performance, may create extra costs in terms of time and pay to delegatees, some managers may take advantage and misuse their subordinates
• Centralization vs decentralization


  Centralization: authority and power, and control are systematically kept at the top of the organization structure, decentralization: authority, power and control are systematically delegated/distributed to lower levels in the organization
• Benefits/advantages of centralization


  • More time in decision making, dependence of one or a few decision makers delays everything else about work, creativity/innovativeness
• Benefits/advantages of decentralization


  • Speed of decision making, specialization enhanced, efficiencies/effectiveness of specialization
• Organizational design (structuring)


  A process for shaping the way organizations are structured and run, involving team formations, shift patterns, lines of reporting, decision-making procedures, communication channels
• Types of organizational structures

  • Functional, divisional, matrix, team, network, hierarchical (tall), flat
• Span/scope of control


  The number of subordinates under each supervisor, must be appropriate (max 6 employees), factors which determine appropriate span of control: size of the org, nature of work, skills/experience of supervisor and subordinates, total number of employees
• Staff and line relationships/authority


  Line authority follows from the scalar principle, hence the line manager has executive decision making authority, staff authority is advisory to enable expert staff managers to advise and guide the line managers
• Directing


  Sets in motion the needed action of people after planning and organizing, deals directly with leading/influencing, guiding/supervising/coordinating, communicating, and motivating employees involved in doing the work, towards the achievement of organizational goals
• Elements of directing


  • Staffing (HRM), communicating, leading, coordinating/supervising, motivating
• Staffing/Human resource management


  The process of identifying the roles and attention required to meet operational and strategic needs, locating the relevant talent pools (internally and externally), and hiring employees that meet those needs
• The staffing function process


  Human resource planning, recruitment, selection, orientation/socialization and placement, training, remuneration, performance evaluation, promotion/demotion and transfer, separation
• The HRP process - strategic

  Determine/establish the overall organizational strategic objectives/mission/vision, analysis and determination of organization's current HR capacity (quantity and quality inventory), forecast future HR requirements - demand and supply
• Talent pools


  Internally and externally
• Hiring employees


  Meet the organization's needs
• Staffing/Human resource management


  • Manpower planning: forecasting and determining the future HR needs
  • Recruitment: searching and attracting
  • Selection: discriminating/screening and picking from the pool of recruits
  • Orientation/socialization and placement: introducing the new employees to prepare them
  • Training: imparting knowledge, skills, attitudes
  • Remuneration: compensation and incentives
  • Performance evaluation: tracking work behavior and comparing organizational/individual output to organizational targets, and taking remedial action
  • Promotion/demotion and transfer: staff changes and upward mobility
  • Separation: leaving; retirement, resignation, sickness
• The Staffing Function


  1. Determine/establish the overall organizational strategic objectives/mission/vision

  2. Analysis, determination of organization's current HR capacity (quantity and quality inventory)

  3. Forecast future HR requirements - demand and supply

  4. Gap analysis- future vs current position/situation

  5. Develop appropriate HR strategies

  6. Implement the strategic HR plan

  7. Evaluate and take remedial action for discrepancies
• Factors of staffing


  • External factors: competition strategies, customers, nature of customers, demands, labour market dynamics, governmental regulations, PESTEL
  • Internal factors: organizational values, mission/objectives, organizational structure, culture and management/leadership style, Human Resources management strategies and capacity, labor unions, and organizational physical and technological resources
• Leadership


  Having a genuine willingness and a true commitment to lead others to achieve a common vision and goals through positive influence
• John C. Maxwell: 'Leadership is Influence, nothing more, nothing less.'
• Peter Drucker: 'Leadership is the lifting of a man's vision to higher sights, the raising of a man's performance to a higher standard, the building of a man's personality beyond its normal limitations'
• Qualities of a good leader

  • Vision
  • Inspiration
  • Strategic & critical thinking
  • Interpersonal communication
  • Authenticity & self-awareness
  • SWAT, EQ, SQ, IQ, AQ
  • Open-mindedness & creativity
  • Flexibility
  • Change management
  • Responsibility & dependability, ethics, morality, integrity
  • Patience and tenacity, resilience
  • Continuous improvement
• Power


  The ability or potential of an individual to influence others and control their actions
• Authority


  The legal and formal right to give orders and commands, and take decisions
• Power


  Does not follow any hierarchy
• Authority


  Follows the hierarchy
• Power is a personal trait, authority is a formal right given to high officials</b>
• The controlling function


  1. Set quality standards

  2. Determine current performance level

  3. Determine planned performance level

  4. Compare the two

  5. Determine any discrepancy

  6. Determine the causes and effects

  7. Take remedial action
• Typical types (areas) of control measures


  • Financial controls
  • HRM controls (staff)
  • Materials/equipment/resources controls
  • Production controls
  • Quality controls