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AEM1200_0121 - AEM220 Introduction to Business Management...

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Unformatted text preview: AEM220, Introduction to Business Management. AEM220, Wednesday 1/21 What is management? Authority and bureaucracy Functions of management Management skills Sources of Authority Sources Traditional authority Charismatic authority Rational-legal authority Traditional Authority Traditional Traditional leaders are those whose authority is Traditional defined by custom and tradition. defined Emperors and kings would be traditional leaders. The weakness of traditional leadership is its The dependence upon precedent, the essence of tradition. Traditional leadership is likely to be inflexible. inflexible. Charismatic Authority Charismatic The charismatic leaders attract followers on the The basis of exceptional personal or moral qualities; basis Martin Luther King, Gandhi, Christ, Mohammed. Charismatic leadership suffers succession Charismatic upheaval when the leader dies. It may also suffer problems when the leader ages. suffer Charismatic authority is unstable; either Charismatic disappearing or reverting to traditional or rational-legal authority. rational-legal Rational-Legal Authority Rational-Legal Leadership based on purposeful reasoning and Leadership formally defined, accepted structures of rules and procedures. and The power of those in authority depends on their The acceptance of due legal process and qualification Ownership according to purposeful, agreed rules Ownership Appointment on technically defined grounds (merit Appointment and technical expertise) Election Election Membership of a decision-making group and Membership adherence to the rules of decision-making. The Bureaucratic Organization The Equal treatment for all employees; Reliance on expertise, skills, and experience Reliance relevant to the position; relevant The organization owns the product and the The means of production; means Specific standards of work and output; Extensive record keeping (control); Establishment and enforcement of rules and Establishment regulations; regulations; Rules bind all members of the organization. Managers Manage Managers Information People Actions From Mintzberg, Henry; “Rounding Out the Manager’s Job”, Sloan Management From Review, Fall 1994, 11-26 Review, Functions of Management Functions Planning Organizing Leading Controlling Functions of Management: Planning Functions Setting organizational goals and strategies to Setting attain those goals; attain Determining the resources needed to attain Determining goals; goals; Setting standards. Functions of Management: Organizing Functions Allocating resources, tasks, and procedures for Allocating achieving goals; achieving Preparing an organizational structure that Preparing defines authority and responsibility; defines Recruiting, selecting, training, developing and Recruiting, placing employees. placing Levels of Management Levels Responsibilities of Each Management Level Responsibilities Top Management First-Line Management Change Commitment Culture Environment Non-managerial worker Non-managerial supervision supervision Teaching and training Scheduling Facilitation Middle Management Resources Objectives Coordination Subunit performance Strategy implementation Team Leaders Facilitation External relationships Internal relationships Functions of Management: Leadership Functions Guiding and motivating employees to work Guiding effectively to accomplish organizational goals and objectives; and Giving and explaining assignments; Clarifying policies and giving feedback. Managerial Roles Managerial Interpersonal Roles Decisional roles Figurehead (internal and Figurehead external) external) Leader (internal) Liaison (external) Informational Roles Monitor (external) Disseminator (internal) Spokesperson (external) Entrepreneur (internal and Entrepreneur external) external) Disturbance handler Disturbance (internal) (internal) Resource allocator Resource (internal) (internal) Negotiator (internal and Negotiator external) external) Functions of Management: Control Functions Measuring performance against corporate Measuring objectives; objectives; Rewarding outstanding performance; Taking corrective action. Management Skills Management Technical skills The ability to perform tasks in a specific discipline or The department; department; Communication and motivation, the ability to work Communication through and with people; through Ability to picture the organization as a whole and the Ability relationship among its various parts. relationship Human relations skills Conceptual skills Important references Important Charles Perrow, “Complex Organizations: A Critical Charles Essay”, McGraw Hill, 1986 Essay”, Mintzberg, Henry; “Rounding Out the Manager’s Mintzberg, Job”, Sloan Management Review, Fall 1994, 11-26 Job”, Robert Katz, "Skills of an effective administrator," Robert Harvard Business Review, September-October Harvard September-October 1974, pp. 90-101. 1974, Take-aways Take-aways Managers exercise rational-legal authority in Managers environments best described as bureaucracies; environments Managers manage information, people, and Managers actions and perform interpersonal, informational, and decisional roles; and The functions of management are planning, The organizing, leading and controlling; organizing, Managers require functional, human relations Managers and conceptual skills. and ...
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