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TheManagerRevision - Principles of Business Management The...

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Principles of Business Management The Manager: Management: “getting things done through other people”. Key Concept: Management “Management is the balancing of external and internal influences, the coordination of activities and of people to achieve the goals of the organization.” The manager's right to manage. Reinforced by various types of possession of power by the manager: - Position Power - i.e. formal position in a organizational hierarchy. - Reward Power - rewards can be direct (e.g. bonuses, payment) or indirect (e.g. giving employees time, freedom, or access to interesting jobs) - negative – manager can withhold such rewards - Charisma Power - able to get subordinates to work for the manager using their own strength of their personality. - Political Power - the ability of the manager to create a favourable situation for the employees and the organization by negotiating with others inside and outside of the organization as well as stakeholders. - Expertise Power - e.g. specific knowledge of the technical side of the job. What managers are supposed to do (N.B. Order is important). - forecasting - planning - organizing - coordinating - communicating - motivating - controlling Work of the manager is varied and fragmented and influenced by: - the nature of the organization, its philosophy, objectives and size, - the type of structure - activities and tasks involved - technology and methods of performing work - the nature of people employed, and - the level in the organization at which the manager is work.
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Models of management - Rational goal models - assume that management is scientific, and a rational process moving employees towards some stated goal. - e.g. Taylorism - use of scientific methods to find the best way of doing the job and the best equipment for doing it with - best person for the job is chosen - training of those chosen to follow procedures derived scientifically - provision of financial incentives for following procedures - separation of “doers” (the operators) and “planners” (managers). - was shown to increase efficiency! - Internal process models - also based on rationality and the scientific method. - Weber & Fayol - Weber bureaucracy - felt problems found in large organizations could be solved by application of bureaucracy involving: - application of rules governing the conduct of all workers in carrying out their duties - division of labour allowing individuals to specialize and become experts in their field - authority structure arranged in a hierarchy of jobs ranked on the basis of the authority needed to carry them out. -
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