AEM220_123 - AEM220, Introduction to Business Management....

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Unformatted text preview: AEM220, Introduction to Business Management. Wednesday 1/23 What is management? Authority and bureaucracy Functions of management Management skills Authority and Leadership Traditional authority Charismatic authority Rational-legal authority Traditional Authority Traditional leaders are those whose authority is defined by custom and tradition. Emperors and kings would be traditional leaders. The weakness of traditional leadership is its dependence upon precedent, the essence of tradition. Traditional leadership is likely to be inflexible. Charismatic Authority The charismatic leaders attract followers on the basis of exceptional personal or moral qualities, eg. Martin Luther King, Gandhi, Christ, Mohammed. Charismatic leadership suffers succession upheaval when the leader dies. It may also suffer problems when the leader ages. Charismatic authority is unstable; either disappearing or reverting to traditional or rational-legal authority. Rational-Legal Authority Leadership based on purposeful reasoning and formally defined, accepted structures of rules and procedures. The power of those in authority depends on their acceptance of due legal process and qualification Ownership according to purposeful, agreed rules Appointment on technically defined grounds (merit and technical expertise) Election Membership of a decision-making group and adherence to the rules of decision-making. The Bureaucratic Organization Equal treatment for all employees; Reliance on expertise, skills, and experience relevant to the position; The organization owns the product and the means of production; Specific standards of work and output; Extensive record keeping (control); Establishment and enforcement of rules and regulations; Rules bind all members of the organization. Managers Manage Information People Actions From Mintzberg, Henry; "Rounding Out the Manager's Job", Sloan Management Review, Fall 1994, 11-26 Functions of Management Planning Organizing Leading Controlling Functions of Management: Planning Setting organizational goals and strategies to attain those goals; Determining the resources needed to attain goals; Setting standards. Functions of Management: Organizing Allocating resources, tasks, and procedures for achieving goals; Preparing an organizational structure that defines authority and responsibility; Recruiting, selecting, training, developing and placing employees. Levels of Management Functions of Management: Leadership Guiding and motivating employees to work effectively to accomplish organizational goals and objectives; Giving and explaining assignments; Clarifying policies and giving feedback. Functions of Management: Control Measuring performance against corporate objectives; Rewarding outstanding performance; Taking corrective action. Management Skills Technical skills The ability to perform tasks in a specific discipline or department; Communication and motivation, the ability to work through and with people; Ability to picture the organization as a whole and the relationship among its various parts. Human relations skills Conceptual skills Important references Charles Perrow, "Complex Organizations: A Critical Essay", McGraw Hill, 1986 Mintzberg, Henry; "Rounding Out the Manager's Job", Sloan Management Review, Fall 1994, 11-26 Robert Katz, "Skills of an effective administrator," Harvard Business Review, September-October 1974, pp. 90-101. Take-aways Managers exercise rational-legal authority in environments best described as bureaucracies; Managers manage information, people, and actions The functions of management are planning, organizing, leading and controlling; Managers require functional, human relations and conceptual skills. ...
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