LESSON 1

1.1 MANAGEMENT

 is the PERFORMANCE of conceiving and achieving DESIRED RESULTS by means of GROUP

EFFORT consisting of utilizing RESOURCES, that will determine the SUCCESS and FAILURE of an
ORGANIZATION.
 Getting things done through PEOPLE.
 “IF you are planning for ONE YEAR – plant rice
IF you are planning for TEN YEARS – plant a tree
But IF you are planning for 100 YEARS – PLANT PEOPLE”
-CHINESE PROVERB

1.2 THE EVOLUTION OF MANAGEMENT THEORY

Begun in the Industrial Revolution in the late 19th century as:

 Managers of organization began seeking ways to better satisfy customer needs

 Large-scale mechanized manufacturing began to adapt small-scale craft production in which
goods were produced.
 Social problems were developed in the large groups of workers employed under the factory
system.
 Managers began to focus on increasing the efficiency of the worker – task mix.

ADAM SMITH (18th century economist)

 Observed that firms manufactured pins in one of two (2) different ways:
a. Craft style - each worker did all steps.
b. Production - Each worker specialized in one step.
 Realized that job specialization resulted in much higher efficiency and productivity.
o Breaking down the total job allowed for the division of labor in which workers became
very skilled at there specific tasks.

FRANK and LILLIAN GILBRETH

 Frank (1868-1924) and Lillian Gilbreth (1878-1972) refined Taylor’s work and made many
improvements to methodologies of time and motion studies.
 TIME AND MOTION STUDIES
o Breaking up each job action into its components
o Finding better ways to perform the action. Reorganizing each job action to be more
efficient.

MAX WEBER (1864-1920)

  Developed the concept of BUREAUCRACY as a formal system of organization and administration
designed to ensure efficiency and effectiveness. (president or CEO =final decision)

MAX WEBER PRINCIPLE OF BUREAUCRACY

Features of Bureaucracy Structure

(1) Division of labor Complex work broken down into simple jobs
(2) Hierarchy of authority Accepted chain of command to direct individual’s
effort towards organizational goal
accomplishment
3) Framework of Rules Effort directed and coordinated by rules
(4) Impersonality Hiring and promoting people on the basis of
objective merit rather than favoritism (on the
basis of what they know, and not who they know)
(5) Formal selection Technical competence members selected
accordingly on the basis of training, qualification,
education etc.

SCIENTIFIC MANAGEMENT THEORY (1890-1945)

Is a theory of management that analyzes and synthesizes workflows. Its main objective is improving
economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to
the engineering of processes to management. (main objective = improving

economic efficiency)

FREDERICK WINSLOW TAYLOR

 “Father” of Scientific Management (Systematic Study of the relationships between people and
tasks for the purpose of redesigning the work process for higher efficiency) in the late 1800s to
replace informal rule of thumb knowledge.

Scientific Management - Systematic study of the relationships between people and tasks for the purpose
of redesigning the work process for higher efficiency.

 Taylor sought to reduce the time a worker spent on each tasks by optimizing the way the task
was done.

TAYLOR’S FOUR (4) PRINCIPLES OF SCIENTIFIC MANAGEMENT

1st Principle: SCIENCE, NOT RULE OF THUMB - Faster way

 This principle says that we should not get stuck in a set routine with the old techniques of doing
work, rather we should be constantly experimenting to develop new techniques which make the
work much simpler, easier and quicker.
2nd Principle HARMONY, NOT DISCORD - Teamwork each one should blend

 As per this principle, such an atmosphere should be created in the organization that labour (the
major factor of production) and management consider each other indispensable.
 Taylor has referred to such a situation as a ‘Mental Revolution’. Taylor firmly believed that the
occurrence of a mental revolution would end all conflicts between the two parties and would
be beneficial to both of them.

3rd Principle: COOPERATION, NOT INDIVIDUALISM

 According to this principle, all the activities done by different people must be carried on with a
spirit of mutual cooperation.
 Taylor has suggested that the manager and the workers should jointly determine standards. This
increases involvement and thus, in turn, increases responsibility. In this way we can expect
miraculous results.

4th Principle: DEVELOPMENT OF EACH AND EVERY PERSON TO HIS/HER GREATEST EFFICIENCY AND
PROSPERITY

 According to this principle, the efficiency of each and every person should be taken care of right
from his selection. A proper arrangement of everybody’s training should be made.
 It should also be taken care that each individual should be allotted work according to his ability
and interest. Such a caring attitude would create a sense of enthusiasm among the employees
and a feeling of belongingness too.

ADMINISTRATIVE MANAGEMENT THEORY (1892-1993)

Attempts to find a rational way to design an organization as a whole. The theory generally calls for a
formalized administrative structure, a clear division of labor, and delegation of power and authority to
administrators relevant to their areas of responsibilities.

HENRI FAYOL

 Third classical management theorist, a mining executive and engineer. HE created a book titled
Administration Industrielle et Generale (Industrial and General Administration) published in the
U.S. In 1911 after observing a work stoppage that he judged to be a management failure.
 Fayol proposed the 14 Principles of Management

FAYOL’S 14 PRINCIPLES OF MANAGEMENT

1. DIVISION OF WORK - when employees are SPECIALIZED, output can increase because they become
increasingly SKILLED and EFFICIENT.

2. AUTHORITY - Managers must have authority to give orders, but they must also keep in mind that
WITH AUTHORITY COMES RESPONSIBILITY.
3. DISCIPLINE – Must be upheld in organizations, but methods for doing so can vary.

4. UNITY OF COMMAND - Employees should have only one direct supervisor.

5. UNITY OF DIRECTION - Teams with THE SAME OBJECTIVE should be working under the direction of
one manager, using one plan. This will ensure that action is properly coordinated.

6. SUBORDINATION OF INDIVIDUAL INTERESTS TO GENERAL INTEREST – The interests of ONE EMPLOYEE

should NOT BE ALLOWED to become MORE IMPORTANT than those of the group. This includes
managers.

7. REMUNERATION - Employees satisfaction depends on fair remuneration for everyone. This includes
financial and non-financial compensation.

8. CENTRALIZATION – this principle refers to how close employees are to the decision - making process.
It is important to AIM on appropriate balance.

9. SCALAR CHAIN - Employees should be aware of where they stand in the organization hierarchy, or
chain of command.

10. ORDER – The workplace facilities must be clean, tidy and safe for employees. Everything should have
its place.

11. EQUITY- Managers should be fair to staff at all times, both maintaining the discipline as necessary
and acting with kindness where appropriate.

12. STABILITY OF TENURE OF PERSONNEL - Managers should strive to minimize employee turnover.
Personnel planning should be a priority.

13. INITIATIVE - Employees should be given the necessary level of freedom to create and carry out plans.

14. ESPRIT DE CORPS - Organizations should strive to promote team spirit and unity.

BEHAVIORAL MANAGEMENT THEORY (1911-1990) Like osa

Often called the Human Relations Movement because it addresses the human dimension of work.
Behavioral theorists believed that a better understanding of human behavior at work, such as
motivation, conflict, expectations, and group dynamics, improved productivity.

Theorist that contribute to behavioral management are:

MARY PARKER FOLLET (1868-1933)

 Considered as the “Mother of Modern Management”. She states that true leaders create group
power than expressing personal power.

ELTON MAYO (1880-1949)

  States that employees are motivated far more by relational factors such as attention and
camaraderie than by monetary rewards.

ABRAHAM MASLOW (1908-1970)

 Created the "Maslow's Hierarchy of Needs”, stated that people are motivated by five (5)
categories of needs:
a) Physiological – food, water, shelter, warmth
b) Safety(security) – safety, employment, assets
c) Love(social) – family, friendship, intimacy, belonging
d) Esteem – self-worth, accomplishment, confidence
e) Self-actualization – inner fulfillment

In Marlow’s Hierarchy of Needs, it can be represented as a pyramid, with basic physiological needs until
it reaches self actualization on the top

MANAGEMENT SCIENCE THEORY (1940-1990's)

 Management that focuses on the use of techniques to maximize the use of organizational
resources to produce goods and services. It is a contemporary approach to management that is
an extension of Scientific Management that measures the worker to task mix and ratio to raise
efficiency.
 Its importance is it can reduce the overall efficiency of the organization and make decision-
making easier and more defined.

ORGANIZATIONAL ENVIRONMENT THEORY (1950-2000)

 Also known as Contingency Theory which is a class of behavioral theory that claims that there is
no best way to organize a corporation, to lead a company or to make decision, instead, the
optimal course of action is contingent (dependent) upon the internal and external situation.

1.3 Requirements of Management

Management is getting things through others,

Management needs:

 OBJECTIVE – is something that you aim to do or achieve.

 RESOURCES – a source of supply, support, or aid.
 METHODS – procedure for accomplishing or approaching something, especially a systematic or
established one.
 ORGANIZATION SETTING – hierarchy of people with their corresponding decision making
influence in attaining the management objective.
 PEOPLE – human beings making up a group or assembly or linked by a common interest.
1.4 Functions of Management

Management Function consists of the following:

 PLANNING (DECISION-MAKING)
o Involves SELECTING GOALS AND OBJECTIVES, as well as the ACTIONS to achieve them.
o It requires DECISION MAKING, that is choosing the “BEST” from among the alternatives.
o Deciding what/when/how/who
WHAT is to be DONE,
WHEN is to be DONE,
HOW it is to be DONE,
WHO is to do it.
 ORGANIZING (STAFFING)
o GATHERING and ALLOCATING resources
o COORDINATING the work of the organization.
o Deliberate creation a configuration that defines the following:
HOW authority is structured,
HOW communication flows,
HOW tasks are accomplished
 DIRECTING (LEADING)
o REDIRECTING human behavior to ACHIEVE objectives.
o MOTIVATING others to produce.
o INFLUENCING subordinates.
 CONTROLLING
o KEEPING things on track,
o STEERING performance towards desired goal,
o Coordinating, Monitoring, and Adjusting performance

1.5 Managerial Level and Skills

MANAGEMENT LEVELS

LEVEL TYPE OF JOB

 Directly supervise non-managers
 Carry out the plans and objectives of
higher management using the personnel
and other resources assigned to them.
FIRST-LINE MANAGERS  Short-range operating plans governing
what will be done tomorrow or next
week, assign tasks to their workers,
supervise the work that is done, and
evaluate the performance of individual
worker.
 Manage through other managers
  Make plans of intermediate range to
achieve the long range goal set by the
management, establish departmental
MIDDLE MANAGEMENT policies and performance subordinate
work units and their manager.
 Provide and integrating and coordinating
function so that the short range decisions
and activities of first-line supervisory be
orchestrated toward achievement of the
long range enterprise.
 Responsible for defining the character,
mission, and objectives of the enterprise.
 Establish criteria for and review long-
TOP MANAGEMENT range plans.
 Evaluate the performance of major
departments, and they evaluate reading
management personnel to gauge their
readiness for key executive positions.

LEVEL HIERARCHY DESIGNATIONS

STRATEGIC MANAGERS CEO, President, Executive Vice
TOP MANAGEMENT who are ultimately responsible President, Executive Director,
for the entire organization Senior Vice President, Vice
President
TACTICAL MANAGERS
located beneath the top levels Manager, Director of Chief,
MIDDLE MANAGEMENT who are directly responsible for Department Head, Division
the work of managers at lower Head
levels
OPERATIONAL MANAGERS
FIRST-LINE MANAGEMENT They are directly responsible for Supervisor
the operating (non-managerial)
employees

MANAGERIAL SKILLS

CONCEPTUAL SKILLS The cognitive ability to see the organization as a

whole and the relationships among its parts.
The ability to work with and through other
HUMAN SKILLS people and to work effectively as a group
member.
TECHNICAL SKILLS The understanding of and proficiency in the
performance of specific tasks.

THE RELATION BETWEEN LEVELS AND SKILLS NEEDED

 TOP MANAGEMENT CONCEPTUAL SKILLS
MIDDLE MANAGEMENT HUMAN SKILLS
FIRST LINE MANAGEMENT TECHNICAL SKILLS

LESSON 2

MANAGEMENT APPROACH

2.1 MANAGERIAL ROLE APPROACH

APPROACHES TO MANAGEMENT

A. EMPIRICAL OR CASE APPROACH

 Studies experience e through cases.
 Identifies successes and failures.
B. CONTINGENCY OR SITUATIONAL APPROACH
 Managerial practice depends on circumstances (i.e., a contingency or a situation).
 Contingency theory recognizes the influence of given solutions on organizational
behavior patterns.
C. MATHEMATICAL OR “MANAGEMENT SCIENCE” APPROACH
 Sees managing as mathematical processes, concepts, symbols, and models.
 Looks at management as a purely logical process, expressed in mathematical symbols
and relationships.
D. DECISION THEORY APPROACH
 Focuses on the making of decisions, persons or groups making decisions, and the
decision – making process.
 Some theorists use decision making as a springboard to study all enterprise activities.
The boundaries are no longer clearly defined.
E. RE-ENGINEERING APPROACH
 Concerned with fundamental re-thinking, process analysis, radical redesign, and
dramatic results.
F. SYSTEMS APPROACH
 Systems have boundaries, but they also interact with the external environment; that
means organizations are open systems.
G. SOCIO-TECHNICAL APPROACH
 Technical system has a great effect on the social system (personal attitudes, group
behavior).
 Focuses on production, office operations, and other areas with close relationships
between the technical system and people.
H. GROUP BEHAVIOR APPROACH
 Emphasizes behavior of people in groups.
 Based on sociology and social behavior psychology.
  Primary studies group behavior patterns.
 The study of large groups is often called organizational behavior.
I. INTERPERSONAL BEHAVIOR APPROACH
 Focuses on interpersonal behavior, human relations, leadership, and motivation.
 Based on individual psychology.
J. COOPERATIVE SOCIAL SYSTEMS APPROACH
 Concerned with both interpersonal and group behavioral aspects leading to a system of
cooperation.
 Expanded concept includes any cooperative group with a clear purpose.
K. MCKINSEY’S 7-S FRAMEWORK
 The seven S’s are (1) Strategy, (2) Structures, (3) Systems, (4) Style, (5) Staff, (6) Shared
values, and (7) Skills.
L. TOTAL QUALITY MANAGEMENT (TQM) APPROACH
 Focuses on providing dependable, satisfying product or services that are fit to use, as
well as conforming to its quality requirements.
M. MANAGEMENT PROCESS OR OPERATIONAL APPROACH
 Draws together concepts, principles, techniques, and knowledge from other fields and
managerial approaches.
N. MANAGERIAL ROLES APPROACH
 Original study consisted of observation of five (5) chief executives.
 On the basis of this study, ten (10) managerial roles were identified and grouped into
INTERPERSONAL, INFORMATIONAL, and DECISION ROLES.

2.2 SPECIFIC MANAGERIAL ROLES

1. INTERPERSONAL ROLES
 Grow directly out of the authority of a manager’s position and involve developing and
maintaining positive relationships with significant others.
2. INFORMATIONAL ROLES
 Pertain to receiving and transmitting information so that manager can serve as the
nerve centers of their organizational units.
3. DECISIONAL ROLES
 Involve making significant decisions that affect the organization.

INTERPERSONAL ROLES

ROLE DESCRIPTION
FIGUREHEAD Performs symbolic duties of a legal or social nature.
LEADER Builds relationships with subordinates and communicates with help
and information.
LIAISON Maintains networks of contacts outside work unit who provide help
and information.
INFORMATIONAL ROLES

ROLE DESCRIPTION
MONITOR Seeks internal and external informational about issues that can affect
organization.
DISSEMINATOR Transmits information internally that is obtained from either internal
or external sources.
SPOKESPERSON Transmits information about the organization to outsiders.

DECISIONAL ROLES

ROLE DESCRIPTION
ENTREPRENEUR Acts as initiator, designer, and encourage of change and innovation.
DISTURBANCE HANDLER Takes corrective action when organization faces important,
unexpected difficulties.
RESOURCE ALLOCATOR Distributes resources of all types including time, funding, equipment,
and human resources.
NEGOTIATOR Represents the organization in major negotiations affecting the
manager’s areas of responsibility.

2.3 MANAGERIAL STYLES

ADMINISTRATORS

 Administrators look to company rules and regulations for solving all problems.
 They live by the book and are usually very good employees.
 They show total loyalty to the organization and have probably been with the company for many
years.
 Administrators are usually not very good communicators.
 Uses the official company channels for all communications which are often limited to one level
upwards and downwards.

TIME SERVERS

 These are generally older managers who have lost interest in their job and environment and are
marking time until retirement or moving to another job.
 They take all necessary action to avoid stress and maintain a low profile within the company.
 Although these managers are not generally lazy, their low motivation means that they do the
minimum amount of work needed to hold down a job.
 Decisions are avoided since they could lead to mistakes.
 Personal status is very important to them.
 Time servers usually have good management experience, and if motivated can become a very
valuable asset to the organization.
CLIMBERS

 These managers are driven by extreme personal ambition and will sacrifice everything, including
self and family, to get to the top of the corporate ladder.
 They want to achieve and to be seen to have achieved, especially by those in a superior position.
 Climbers will pursue personal advancement by fair means or foul. However, they become
demotivated if this does not show quick results, and this can eventually lead to stress.

GENERALS

 This is usually a younger person who exhibits lots of energy.

 The general likes to rule and manipulate power but is achievement oriented: power is used to
get tasks done.
 Generals work extremely hard, driving themselves and those around them.
 Generals are sociable and mix well at all levels. They usually get their way with peers by
overwhelming, although peers can resent this if it is done too often.
 Status is important to generals, but for the luxury associated with it, not as a symbol of seniority.

SUPPORTERS

 Supporters maintain a balanced view about the world, the organization, subordinates, and
themselves.
 They are usually experience managers who are knowledgeable in management techniques and
apply them where they can.
 Supporters work through people achieving their aims.
 They are good ay delegation and develop their subordinates by giving them responsibility.
 The people working under them are highly motivated.
 Supporters’ personal technical knowledge is usually lacking, but this compensated for by the
support they themselves received from the specialists within their department.

NICE GUYS

 These managers are usually weak-willed and are more interested in being liked, by peers and
subordinates, than achieving targets.
 They do not criticize their subordinates, even when they are poor performers, and may in fact
support too much, so unconsciously retarding their development.

BOSSES

 Bosses are inflexible and are often mistaken for strong-minded people.
 Usually, they are only strong talkers, and hide behind abusive language.
 They try to terrorize subordinates and peers, creating conflict to emphasize their own power.
 In the short-term, they can show results, but in long-term they are very destructive, causing
more harm than good.
DIFFERENCE BETWEEN BOSS AND LEADER

BOSS LEADER
Drives employees Coaches them
Depends on authority On goodwill
Inspires fear Generates enthusiasm
Says,”I” Says,”We”
Places blame for the breakdown Fixes the breakdown
Knows how it is done Shows how it is done
Uses people Develops people
Takes credit Gives credit
commands Asks
Says,”GO” Says,”LET’S GO”

LESSON 3

AIRCRAFT MAINTENANCE ORGANIZATION AND MANAGEMENT

3.0 ORGANIZATION OF MAINTENANCE AND ENGINEERING

Creation of Organizational Structure allows a particular company to meet its goals and objectives and
each unit within the company must have a sufficient PERSONNEL and AUTHORITY to CARRY OUT those
objectives and meet those goals.

ORGANIZATION

 Any collection of persons, materials, procedures, ideas or facts so managed and ordered that in
each case the combination of parts makes a meaningful whole that achieves its objectives.
 Every employee must be INFORMED of what is EXPECTED of him (responsibility) and what is
within his power (authorities).

MANAGER’S in the ORGANIZATION decides how to

1. DIVIDE the overall task into successively smaller jobs.

2. DECIDE the bases by which to group the jobs.
3. DETERMINE the appropriate size of the group reporting to each superior.
4. DISTRIBUTE authority among the jobs.

ORGANIZATION CHARTS
3.1 ORGANIZATION STRUCTURE

ORGANIZATION STRUCTURE

 Designates formal reporting RELATIONSHIPS, including the number of LEVELS in the HIERARCHY
and the span of control of managers and supervisors.
 It includes the design of systems to ensure effective communication, coordination, and
integration of effort across departments.

ELEMENTS ORGANIZATION STRUCTURE

 DIVISION OF LABOR
o It is the PROCESS of dividing work into relatively specialized jobs to achieve advantages
of specialization.
o Subdivision of work into separate jobs to different people.
o Division of Labor Occurs in Three Different Ways:
1. Personal Specialties (e.g. engineers, mechanics, avionics).
2. Nature Sequence of Work (e.g. dividing work in the maintenance of aircraft like
inspection and servicing).
3. Vertical Plane (e.g. hierarchy of authority from lowest-level manager to highest-
level manager)
 DEPARTMENTALIZATION
o It the horizontal differentiation of the organization in departments.
o Departments share a common supervisor and common resources, are jointly
responsible for performance, and tend to identify and collaborate with one another.
 SPAN OF CONTROL
o Number of individuals who report to specific manager.
o Number of people directly reporting to the next level.
 DELEGATION OF AUTHORITY
o Process of distributing authority downward in an organization.
o Managers DECIDE how much authority should be delegated to each job and to each
jobholder.
o Three (3) Forms of Authority
1. Line Authority – flows up and down the chain of command.
2. Staff Authority – based on expertise that usually involves counseling and
advising line managers.
3. Committee and Team Authority – granted to committee or work teams involved
in a firm’s daily operations.
 CENTRALIZATION AND DECENTRALIZATION
o Refer to the level at which most or the operating decisions will be made.
o The greater the number of DECISIONS made lower down the management.
 ADVANTAGES OF DECENTRALIZATION
 Quick action regarding specific problems.
 Facilitates adaptation of decisions according to local needs
 Relieves top management from involvement in routine decisions thus saving time and
energy.
 Increases flexibility of actions as junior staff are allowed to make prompted decisions
without having to wait for approval from to management.
 Effective in developing the junior staff to hold top management positions.
 ADVANTAGES OF CENTRALIZATION
 Uniformity of policy and action
  Enables maximum use of the skills and knowledge of centralized staff.
 Foster better control of the organization’s activities.
 Enables the use of not highly skilled subordinates since every little detail is set by the
top management.
 UNITY OF COMMAND – the classical principle of command suggested that each
individual in the Organization should be directly responsible to and received orders
from, ONLY ONE supervisor and through his ultimately answerable to the head of the
organization.

DIMENSIONS OF STRUCTURE

 FORMALIZATION – the extent to which expectations regarding the means and ends of work are
specified, written, and enforced.
 CENTRALIZATION – the location of decision-making authority in the hierarchy.
 COMPLEXITY – the direct outgrowth of dividing work and creating departments.