MANAGEMENT C.

Skills Aproach
Managers -Technical Skills
- Someone who works with and through other - Human skills
people by coordinating their work activities in order - Conceptual skills
to accomplish organizational goals Organization
- It is a person responsible for controlling or - a deliberate arrangement of people to
administering all or part of a company or similar accomplish some specific purpose
organization
- The people in the organization responsible for Characteristic of organizations
developing and carrying out this management 1. Have a distinct goal or purpose
process. The four primary functions of managers 2. Are composed of people
are: planning, organizing, leading, and 3. Have a deliberate structure
controlling.
Types of managers Challenges to Managing
1. First-line managers - the lowest level of 1. Ethics
management and manage the work of 2. Workforce Diversity
non-managerial employees 3. Globalization
2. Middle managers - manager the work of first-line 4. E-business
managers 5. Customers
3. Top managers - responsible for making 6. Innovation- Invention
organization-wide decision and establishing plans 7. Knowledge MAnagement
and goals that affect the entire organization
Management 8 dimensions of Quality
- Refers to the process of coordinating and 1. Performance
integrating work activities so that they’re 2. Reliability
completed efficiently and effectively with and 3. Durability
through other people 4. Serviceability
- Primary activity engaged in by managers 5. Aesthetics
- Distinguishes manager’s job from a 6. Features
non-managerial one 7. Perceived Quality
Efficiency ( Means) - Resource usage (low 8. Conformance to standards
waste)
Effectiveness ( Ends ) - Goal attainment ( high Invention - creating of new producing
attainment) Innovation - improving existing product
Engineering - application of mathematics and sciences in
Low resource waste and high goal attainments = high the production of systems, processes, machines, and
efficiency and high effectiveness structures for the benefit of society
Management - may be defined as the creative problem
Managerial Functions solving- process of planning, organizing, leading, and
A. Functional Approach controlling an organization’s resources to achieve its
- Planning mission and vision
-Organizing
-Leading
-Controlling
B. Management Roles Approach SOCIAL RESPONSIBILITY
- Interpersonal roles 2 Views for Social Responsibility
- Informational Roles A. Classical View
- Decisional Roles Management’s role is to maximize profits for the
 benefit of the stockholders 4. Build team spirit
Doing “ social good” unjustifiably increase costs Ethics
B. Socioeconomic View - Refers to the rules, principles, values, and
-Management’s social responsibility goes beyond belief that define right and wrong conduct and
making profits but also protect and improve behavior
society’s welfare Four views of ethics
-Corporations are not only responsible to 1. Utilitarian View
stock-holders but also to larger society “ to do the - Greatest good is provided for the greatest
right thing “ number
Approaches to Social Responsibility - Encourages efficiency and productivity and
1. Obstructionist Approach is consistent with the goal of profit
2. Defensive Approach ( Classical ) maximization
3. Accommodative Approach ( Socioeconomic ) 2. Rights view
4. Pro-Active approach ( Socioeconomic ) - Respecting and protecting individual
liberties and privileges
Green Management 3. Theory of Justice View
- Is when managers consider the impact of their - Organization rules are enforced fairly and
organization on the natural environment impartially and follows all legal rules and
regulation
Green Approaches - Protects the interests of underrepresented
1. Legal Approach stakeholders and the rights of employees
Simply doing what is required by law 4. Integrative Social Contracts Theory
2. Market Approach - Ethical decision should be based on
Responding to customers’ environmental existing ethical norms in industries and
preference communities
3. Stakeholder approach
Meeting the environmental demands of multiple Factors that affect Employees Ethics
stakeholders 1. Stages of Moral Development
4. Activist Approach a. Pre-conventional level - a person’s
Looks for ways to protest the earth’s natural choice between right and wrong is based
resources on personal consequences
b. Conventional - ethical decision rely on
Values-based Management maintaining expected standards and living
- An approach to managing in which managers up to the expectation of others
establish, promote and practice an organization’s c. Principled level - individuals define moral
shared values values apart from the authority of the group
Shared Values to which they belong or society in general
- The core beliefs that guide the behavior of 2. Individual Characteristics
members in a group. It is also the explicit/ a. Values - basic convictions about what is
implicit fundamental beliefs, concepts, and right or wrong on a broad range of issues
principles that underlie the culture of an b. Personality - two personality variables
organization. It also serves as a guide in the have been found to influence an
decision making of the employee and individual’s action according to his/her
management beliefs about what is right or wrong

Purpose of Shared Values Ego strength - high ego strength are likely
1. Guide managers’ decision and actions to resist impulses to act unethically
2. Shape employees behavior Locus Control
3. Influence marketing efforts > Internal locus - the belief that you
 control your destiny ( more likely to be 8. Evaluating Decision Effectiveness
consistent in their moral judgements and
actions) Four ways managers make decisions
> External locus - the belief that what 1. Rational Decision-making
happens to you is due to luck or chance ( - making logical and consistent choices to
less likely to take personal responsibility) maximize values
-Making decisions rationally would consistently
3. Structural Variables lead to selecting the alternative that maximizes the
a. Performance appraisal likelihood of achieving the goal, decisions that are
b. Reward allocation system to the best interest of the organization.
c. Behavior (ethical) of managers 2. Decision- making: Bounded Rationality
4. Organizational Culture - decisions making that’s rational but under the
Cultures high in risk tolerance, control, and conflict concept of bounded- rationality, that is rational
tolerance are most likely to encourage high ethical decision making but limited (bounde ) by a
standards manager’s ability to process information
- due to the manager’s inability to process all
Weak cultures have less ability to encourage high information on all alternatives, managers “
ethical standards satisfice”, rather than maximize
5. Issue intensity 3. Intuitive Decision-making
How important is the ethical issue to an individual - making decisions on the basis of experience,
feelings , and accumulated judgement
Code of ethics 4. Making Decisions: The role of evidence-based
- Is a formal statement of an organization’s primary management
values and the ethical rules it expects its - decision making process that uses relevant and
employees to follow reliable evidence

DECISION MAKING Types of Decision

Decision 1. Structured Problems and programmed
- a choice among two or more alternatives decisions
- also regarded as the cognitive process resulting in the - are straight -forward, familiar and information
selection of a belief or a course of action among several about them are easily defined and complete
possible alternative options - are repetitive decisions that can be handles by
Problem routine approach
- An obstacle that makes it difficult to achieve a 2. Unstructured problems and nonprogrammed
desired goal or purpose decisions
Decision-making - are new or unusual problems, and for which
- It described as choosing among alternatives, the informations is ambiguous or incomplete
thought process of selecting a logical choice from - non- programmed decisions are unique and non
the available options after considering the pros recurring decisions for unstructured problems,
and cons of each options which involved custom-made solutions
3. Uncertainty
STEPS IN DECISION MAKING - conditions where outcomes are not certain and
1. Identifying a problem reasonable probability estimates could not be
2. Identifying decision criteria made.
3. Allocating weights to the criteria - the voice of alternative is influenced by the
4. Developing alternatives limited amount of available information and by the
5. Analyzing Alternatives psychological orientation of the decision maker
6. Selecting an Alternative
7. Implementing the alternative Programmed Decisions
 1. Procedure - a series of sequential steps a 7. Availability bias
manager uses to respond to a structured problem Tend to remember events that are the most recent
2. Rule - an explicit statement that tells a manager and vivid in their memory, thus, distorting their
what can or cannot be done, simple to follow an ability to recall events in an objective manner, and
ensures consistency resulting in distorted judgements and probability
3. Policy - a guideline for making decisions that estimates
establishes general parameters for the 8. Representation bias
decision-maker rather than specifically stating Assess the likelihood of an event based on how
what should or should not be done. closely it resembles other events or set of events
9. Randomness bias
Certainty- is a situation where a manager can make Try to create meaning out of random events
accurate decisions because the outcome of every 10. Sunk Cost error
alternative is known Forget that current choices can’t correct the past.
Incorrectly fixates on past expenditures of time,
Risk - conditions in which the decision-maker is able to money or effort in assessing choices, rather than
estimate the likelihood of certain outcomes, under risk, on future consequences
managers have historical data from past personal 11. Self -serving bias
experiences or secondary information that lets them Who are quick to take credit for their success and
assign probability to different alternatives blame failure on outside factors
12. Hindsight bias
Decision-making styles Falsely believe that they would accurately
a. Linear thinking - characterized by a person’s predicted the outcome of an event once that
preference for using external data and facts and outcome is actually known
processing this information through rational, logical
thinking to guide decisions and actions
b. Non- linear thinking - is characterized for internal
source of information ( feelings and intuition)
processing this information with internal insights,
feelings, and hunches to guide decisions and
actions

Decision- making biases and errors

1. Overconfidence bias
They think they know more than they do
2. Immediate gratification bias
Want immediate rewards and to avoid immediate
costs
3. Anchoring effect bias
Fixate on initial information as a starting point, fail
to adequately adjust for subsequent information
4. Selective Perception bias
Selectively organize and interpret events based on
their biased perception
5. Confirmation bias
Decision makers who seek out information that
reaffirms their past choices and discount
information that contradicts past judgments
6. Framing bias
Select and highlights certain aspect of a situation
 misunderstanding
PLANNING Directional plans - are flexible plans that set out
Planning general guidelines
- Involves defining the organization’s goals, d. According to Frequency of use
establishing strategies for achieving those goals, Standing plans - are ongoing plans that provide
and developing plans to integrate and coordinate guidance for activities. They are used to handle
work activities. events that recur frequently.
- The management function that involves
anticipating future trends and determining the best Tactical plans - action managers adopt over the short to
strategies and tactics to achieve organizational medium term to deal with a specific opportunity or threat
objectives that has emerged
- The selection and sequential ordering of tasks Unit plans - are plans for departments within functions,
required to achieve an organizational goal work teams, or individuals
- Deciding what will be done, who will do it, when, Contingency plans - plans formulated to address specific
where, how and how it will be done, and the possible future events that might have a significant impact
standards to which will be done on the organization
Plan SWOT analysis - a strategic planning technique used to
- Output of planning, provides a methodical way of help a person or organization identify strengths,
achieving desired result weaknesses, opportunities, and threats
- A document that outlines how goals are going to Crisis Management Plans - are plans formulated
be met. It usually includes resource allocations, specifically to deal with possible future crises
schedules, and other necessary actions to Scenario planning - is planning that is based on what if
accomplish goals scenarios about the future
- Implementation of activities, the plan serves as a
useful guide Steps in scenario planning
Steps in planning 1. Identify different possible future scenario
1. Choosing goals 2. Formulate plans/ strategies to deal with those
2. Identify actions futures
3. Allocate responsibilities 3. Invest in one plans/ strategies
4. Review performance 4. Also prepare for other future scenario
5. Make adjustments 5. Switch your strategy if tracking of signs shows the
Types of plans alternative scenarios are becoming more likely to
a. According to breadth happen
Strategic plans - plans that apply to entire
organization and establish the organization’s Mission - the purpose of an organization
overall goals Vision - an organization’s desired future state
Operational plans - are plans that encompass a Values - the philosophical properties to which managers
particular operational area of organization. They are committed
specify goals, actions, and responsibility for Goals - are also called objectives, are desired outcomes
individual functions or targets. They are desired future state that an
b. According to time frame organization attempts to utilize
Long term plans - those with a time frame
beyond three years Well–written goals:
Short term plans - are plans cover one year or S- specific
less M- measurable
c. According to specificity A- attainable/ achievable
Specific plans - clearly defined and leave no R- relevant
room for interpretation. State their objectives in a T- time bound
way that eliminates ambiguity and problems with
Steps in goal setting 2. Product - specialization in particular
1. Review the organization’s mission or purpose product
2. Evaluate available resources 3. Geographical - efficient handling specific
3. Determine the goals individually or with input from regional issues
others 4. Process - more efficient flow of work
4. Write down the goals and communicate them to all activities
who need to know 5. Customer - customers’ needs and
5. Review results and whether goals are being met problems can be met by specialists
c. Chain of command
ORGANIZING Downward - from managers to employees
Upward - employees to managers
Organizing lateral( horizontal)- employees of the same level
- The management function of arranging and Diagonal - communication that cut across both
structuring work to accomplish organizational work areas and organization levels in interest of
goals efficiency and speed
- It is the process of creating an organization’s
structure Authority
Organizational Structure 1. Line authority
- The formal arrangement of jobs within an 2. Staff authority
organization. Responsibility
- It defines how activities such as task allocation, Unity of command
coordination, and supervision are directed toward
the achievement of organizational aims d. Span of control
Organizational chart - the number of employees who can be effectively
- The visual representation of an organization’s & efficiently supervised by a manager
structure
- Also called organigram, organogram, or e. Centralization and Decentralization
organizational breakdown structure. Centralization-( top managers make all the
- A diagram that shows the structure of an decisions ) decision making is concentrated at a
organization and the relationship and relative single point in the organization
ranks of its parts and position/jobs Decentralization - lower level employees provide
input or actually make decisions
Organizational Design Employee empowerment - is increasing the
- Is the process of developing or changing an decision-making discretion of employees
organization’s structure f. Formalization
Six elements : - Is the degree to which jobs within the
a. Work specialization organization are standardized and the
The degree to which tasks in the organization are extent to which employees behavior is
divided into separate jobs with each step guided by rules and procedure
completed by a different person - High formalized jobs offer little discretion
- overspecialization can result in human over what is to be done
diseconomies from boredom, fatigue, stress, poor - Low formalization means fewer constraint
quality, increased absenteeism, and higher on how employees do their work
turnover
b. Departmentalization Mechanistic organization - bureaucracy, the natural
The basis on which jobs are grouped in order to result of combining six elements of structure .
accomplish organizational goals - It is a rigid and tightly controlled structure
5 major ways:
1. Functional - similar specialties
Organic organization - a highly adaptive for that is as with limited autonomy under the coordination and
loose and flexible control of the parent corporation
- They need few formal rules and little direct Contemporary Organizational Designs:
supervision because their training has instilled in 1. Team structure
them, standards of professional conduct - The entire organization is made up of work
groups or self- managed teams of empowered
Contingency Factors Affecting Structural Choice employees
I. Strategy & Structure 2. Matrix Structures
- achievement of strategic goals is facilitated by - specialists for different functional departments
changes in organizational structure that a are assigned to work projects led by project
accommodate and support change managers
Strategy framework: 3. Project Structures
> Innovations - employees work continuously on projects,
>Cost minimization moving on to another projects as each project is
> Imitation completed
II. Size & Structure 4. Boundary Less organization
- As an organization grows larger, its structure - A flexible and unstructured organizational design
tends to change from organic to mechanistic with that is intended to break down external barriers
increased specialization, departmentalization, between the organization and its customers and
centralization, and rules and regulation suppliers
III. Technology & Structure - Removes internal (horizontal) boundaries:
- organizations adapt their structure to their - Eliminates the chain of command
technology - has limitless spans of control
> routine technology = mechanistic org -uses empowered teams rather than departments
>non- routine technology = organic org - eliminates external boundaries
-uses virtual, network, and modular organizational
-woodward’s classification of firms based on the structures to get closer to stakeholders
complexity of the technology employed:
>unit production of single units or small batches Virtual organization
>mass production of large batches of output - An organization that consist of a small core of full-time
>process production in continuous process of employees and that temporarily hires specialists to work
outputs on opportunities that arise
IV. Environmental Uncertainty & Structure
- mechanistic organizational structures tend to be Network organization
most effective in stable and simple environments. - a small core organization that outsources its major
The flexibility of organic organization structures is business functions in order to concentrate on what it does
better suited for dynamic and complex best
environment
Modular organization
Traditional Organizational Designs - A manufacturing organization that uses outside
1. Simple Structure suppliers to provide product components for its
- low departmentalization, wide spans of control, final assembly operations
centralized authority, little formalization
2. Functional Structure 5. Learning Organization
- Departmentalization by function - An organization that has developed the
- operations, finance, human resource, and capacity to continuously learn, adapt, and
product research and development change through the practice of knowledge
3. Divisional Structure management by employees
- composed of separate business units or divisions
COMMUNICATION AND INFORMATION TECHNOLOGY Verbal intonation (paralinguistics) - emphasis that a
speaker gives to certain words or phrases that conveys
Communication - transfer and understanding of meaning meaning

- Interpersonal communication - communication Barriers to Effective Interpersonal communication

between two or more people 1. Filtering
- Organizational communication - All the patterns, 2. Emotions
networks, and systems of communications within 3. Information Overload
an organization 4. Selective Perception
Functions of communication 5. Defensiveness
1. Control - formal and informal 6. Language - jargon
2. Motivation 7. National Culture
3. Emotional Expression
4. Information Types of organization communication

Seven Elements of communication process 1. Formal communication

1. Communication source or sender 2. Informal communication
2. Message - the purpose to be conveyed, sender’s
intended meaning Types of communication Network:
3. Encoding - messages converted to symbolic form
4. Channel - medium thru which the message travels 1. Chain network - follows according to the formal
5. Decoding - the receiver’s retranslation of the chain of command, both upward and downward
message 2. Wheel network - all communication flows in and
6. Receiver out through the group leader
7. Feedback (hub) to the others in the group
3. All- Channel Network - communication flows
Evaluating Communication Method freely among all memberes of the work team
1. Feedback
2. Complexity capacity Types of Network systems
3. Breath potential 1. Intranet - an internal network that uses internet
4. Confidentiality technology and is accessible only to employees
5. Encoding ease 2. Extranet - an internal network that uses internet
6. Decoding Ease technology and allows authorized users inside the
7. Time-space constraint organization to communicate with certain
8. Cost outsiders, such as customers and vendors
9. Interpersonal warmth 3. Wireless capabilities - wireless communication
10. Formality depends on signals sent through air or space
11. Scanability without any physical connection using things such
12. Time of consumptions as microwave signals, satellites, radio waves,
radio antennas, or infrared light rays
Non-verbal communication - this is a type of
communication that is transmitted without words
> sounds, images
Situational behaviors
Clothing & physical surroundings

The most common type of non-verbal communication:

Body language - gestures, facial expressions, and other
body movements that convey meaning
LEADING

Leader - someone who can influence others and who has

managerial authority
Leadership - this is what leaders do.
- A process of leading a group and influencing that
group to achieve its goals
Early Leadership Theories:
I. Leadership trait theories
- researchers tried to identify certain traits and
characteristics that would differentiate leaders
from non-leaders
- researchers eventually recognized that traits
alone were not sufficient for identifying effective
leaders
Seven traits associated with leadership
> Drive
> Desire to lead
> Honesty & integrity
> intelligence
>Job - relevant knowledge
>Extraversion
II. Leadership Behavior Theories
- researchers tried to identify certain behaviors that
differentiated effective leaders from ineffective
leader
Four Main Leader behavior studies
- University of Iowa studies
- The ohio state studies
- University of michigan studies
- Managerial grid

Univ. of Iowa Studies

3 leadership styles
- autocratic style - centralized authority, low participation
- democratic style - involvement , high participation
- Laissez-faire style - hands off management