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1,1 Explain the concept of management
1.2 Explain factors that affect management
1.3 Discuss the nature of managerial planning
1.4 Explain managerial considerations in organizing
1.5 Describe managerial considerations in staffing
1.6 Discuss managerial considerations in directing
1.7 Describe the nature of managerial control (control process, types of control, what is controlled)
1.8 Explain management theories and their applications
Unit Assessment:
1.1 Explain the Concept of Management
1.1 Explain the Concept of Management
Objectives:
a. Define the following terms: management, planning, organizing, staffing, directing, and controlling.b. Explain the role of managers in business organizations.c. Describe the categories of resources managed by businesses.d. Explain the responsibilities of each level of management.e. Identify management functions.f. Describe the purposes of management functions.Activity:
Each student should keep a record for one day of the types of management activities encountered at school; categorize the activities according to the management function represented; state the effect of the activities on the school and its staff and students: positive, negative, no effect; and discuss his/her responses with the class.
Ethics Case for Students: One of Lakshmi’s tasks as manager is to create a business plan for her team based on goals set by the company’s head executives. Lakshmi has been swamped with work and has fallen behind on her planning process. Despite this setback, the business still has the same overall goals and deadlines. If Lakshmi had completed her business plan on time, her team would have been able to reach the proposed goals. Now that she is late, however, her team will have to work long hours and will still struggle to meet the goals in time. Should Lakshmi admit that she lost track of time and adjust the deadlines accordingly? Or should she keep the deadlines and expect her team to come through so the business can stay on track? (Ethical Principles Involved: Integrity, Accountability, Fairness)
The Concept of Management
Slide 1 THINK ABOUT IT
Think that understanding management isn’t important because you’ll never be a manager during
your career?
If so, think again.
There are millions of people employed in management positions in the U.S. today.
They can be found in every industry and hold positions ranging from shift supervisor to
department head to CEO.Here’s the really interesting part—many of these managers began their careers in jobs just
like yours.They started in entry-level positions and, thanks to hard work and perseverance, worked their
way up in the business.
Think that you don’t have what it takes to be a manager?
You may not realize it, but you are involved in management every day, whether it’s following
your supervisor’s directions or organizing your own workload.By understanding what management is, you’ll become more productive and successful on
the job.And by becoming more productive and successful, you’ll improve your chances of moving into management, if that’s what you want to do.
KEY CONCEPTS
Slide #2 What is management?
The process of coordinating resources to accomplish an organization’s goals
Managers are the people who make things happen.
To be effective, they must have technical skills, interpersonal skills, and conceptual skills.
Discussion #1: Ask students to provide examples of skills that are important for managers to develop.
Slide #3 Managers are responsible for the functions of planning, organizing, staffing, directing,
and controlling.
Planning involves deciding what work will be done and how it will be accomplished.
Organizing involves setting up the way the business’s work will be done.
Staffing is an important management function because staffing helps the business find employees who know how to do the necessary work.
Directing involves providing guidance to workers and work projects.
Controlling involves monitoring the work effort.
Discussion #2: Ask students to provide examples of tasks that fall under each management function.
Slide #4 Management is divided into three levels.
Top level or executive
Responsible for the operation of the entire organization
They are the owners, chief executive officers, presidents, chief financial officers, vice presidents, and general managers.
Mid level or middle
This level of management is responsible for implementing the goals set by top management.
Middle managers are the department heads, production managers, sales managers, and district managers.
First line or supervisory
First-line managers take the vision one step further and make it happen.
They are the ones who are concerned with actually carrying out the actions and plans that the middle managers identified.
They are the office managers, floor supervisors, shift supervisors, and team leaders.
Management is responsible for managing a business’s resources, including human resources, financial resources, material resources, and information.
Discussion #3: Ask students to give examples of each level of management from their own lives—at their workplaces, in their families, etc.
1.2 Explain factors that affect management
1.2 Explain factors that affect management
Objectives:
a. Define the term span of management.b. Explain the importance of understanding the factors that impact management.c. Identify external factors impacting management (e.g., the economy, competition, politics, customers, and suppliers).d. Identify internal factors impacting management (e.g., company culture, personnel, competition, and company finances).e. Explain how the span of management increases or decreases.f. Describe factors that determine the number of people a person can manage (e.g., person’s ability to understand issues, employees’ ability to carry out their jobs, the nature of the work being performed, extent to which management gives employees the right to make decisions, use of planning, assistance from staff in carrying out managerial responsibilities, and mode of management’s communication).g. Discuss the advantages and disadvantages of a wide span of control with that of a narrow span of management.Activity:
Individually or in groups of three or four students find and interview a manager about the internal and external factors that have the most impact on that individual’s work and ability to carry out his/her responsibilities. Prepare a written transcript of the interview and give a brief report to the class.
Factors Impacting Management
Slide 1 THINK ABOUT IT
As a young professional, you might have decided that you would like to pursue a career in management.
One of the best ways to set yourself up for success as a future manager is making sure you understand the factors that affect management.
After all, much of the management function involves making decisions based on a variety of information, such as data, facts, and even personal intuition.
In order to make well-informed decisions, managers need to fully recognize and understand both external and internal factors that impact their management responsibilities
KEY CONCEPTS
Slide #2 There are several external factors impacting management.
If a factor is external, that means it occurs outside of a business, which makes these factors difficult to control.
For example, if a manager wants to expand and conduct business out of the country, s/he will have to make decisions based on the policies and regulations established by both the home country’s government and the foreign country’s government.
External factors that impact management include the following:
Politics
Competition
Economy
Customers
Suppliers
Technology
Slide #3 If a factor is internal, its impact comes from within the business, making it potentially less challenging to control than an external factor.
However, this doesn’t mean controlling internal factors is always easy!
Suppose a manager wants to establish his/her business as the most trustworthy company in the industry.
To do that, s/he will need to make those ideals a valued part of the organizational culture.
This isn’t necessarily as simple as sending out a memo—the manager will need to factor in the current culture, the needs and wants of the employees, and any cost of necessary resources to effectively determine the best method of establishing the company’s image.
Internal factors include the following:
Company culture
Personnel
Competition
Company finances
Discussion #1: Ask students to share examples of external and internal factors they have either experienced in their lives or might encounter in the workplace.
Slide #4 It is important that managers supervise the right number of workers so the team can work effectively.
There are several factors that determine the number of people a person can manage:
The nature of the work
Some work is big and complicated, requiring many employees to work under a single supervisor.
Other work might need only a few specialists working under one manager.
Work changes from industry to industry, company to company, and team to team.
Employees’ ability to do their jobs
If workers are competent, they need less supervision from managers.
This means managers can oversee more people.
However, if employees need direct supervision, managers might oversee fewer people, so they are available for those who need them.
Extent to which management gives employees the right to make decisions
If a manager is constantly answering questions or giving directions to employees, then s/he might only be able to supervise a few people.
However, if employees are given a lot of independence, they won’t need as much guidance and managers can supervise a greater number of people.
Assistance from staff in carrying out managerial responsibilities
If managers try to do all the work themselves, they can burn out and leave little time for supervision of employees.
By delegating some of their responsibilities, they can leave time to manage more people.
Mode of management’s communication
Face-to-face meetings require time and proximity, which can limit how many people managers can easily supervise.
If managers communicate virtually via communication tools like emails and/or online meetings, they can reach more people more easily.
Discussion #2: Ask students to share the job they would like to have in the future. How many employees would a manager on their future team supervise? What factors would be most relevant in determining that number? Why?
Slide #5 Span of control, or span of management, is the measurement of how many workers are supervised by one manager.
There is no one-size-fits-all span of control—it can be just a few people or, especially with technological advancements, be larger than 10 or more.
Companies may decide to increase their span of control when employees perform similar tasks or don’t need as much supervision.
A company’s span of control might decrease when a manager is responsible for administrative work or for overseeing employees performing unique tasks.
There are two types of spans of control: wide and narrow.
Wide span of control
This means that managers are responsible for overseeing a relatively large number of employees.
Managers can benefit from a broader understanding of the workforce, encourage initiative and independence from employees, and act as a single contact person for the team.
Disadvantages include less personal contact and more administrative responsibility.
Narrow span of control
This means that managers are responsible for overseeing a relatively small number of employees.
The benefits of this structure include more personal contact, direct supervision, and better communication.
Because a narrow span of control usually means more managers responsible for fewer people, disadvantages include increased expenses and the possibility of communication issues with so many points of contact.
Discussion #3: Ask students to give an example of a type of business that would benefit from a wide span of control. Then, ask students to give an example of a type of business that would benefit from a narrow span of control.
1.3 Discuss the nature of managerial planning
1.3 Discuss the nature of managerial planning
Objectives:
a. Explain the importance of planning to business.b. Describe a planning process.c. Discuss barriers to effective planning (e.g., trouble making accurate forecasts, time and cost factors, internal and external inflexibilities, and rapid change).d. Explain characteristics associated with effective planning (e.g., simplicity, flexibility, linked to long-term objectives, consistency, feasibility, direction for action).e. Explain why planning is generally considered the first, or primary, management function.f. Distinguish among strategic, tactical, operational, and contingency planning.Activity:
Experience a successful local entrepreneur that your teacher invited in or select one of these interviews https://bit.ly/3thsYy9 with an entrepreneur and document anything they say about the importance of planning in starting and running a business. Document his/her planning process and specific examples of plans that s/he has made for the business. Document anything they discussed about some of the benefits and difficulties s/he had experienced while planning his/her business.
Now in your own words identify and discuss specific plans that new businesses need to make, reasons why they should plan, and ways to overcome barriers they may face in planning.
Ethics Case for Students: Tamara is planning for the next fiscal year and is currently trying to determine what goals she will set for her team. She knows that the higher the goals, the better she will look to her superiors if she achieves them. However, her team is already understaffed and would struggle to reach the ambitious targets without working long hours. What should Tamara do? (Ethical Principles Involved: Integrity, Accountability, Transparency, Fairness, Respect, Viability)
Managerial Planning
Slide 1 THINK ABOUT IT
Have you ever set a goal for yourself?
No matter the size, scope, length, or intensity, all goals have one thing in common: they need effective planning in order to be successfully accomplished.
Planning is a big part of being a manager.
After all, managers can’t just work day by day with no consideration for the future and hope that everything works out!
To be successful, managers need to set and reach goals—and to reach those goals, managers need to have plans.
KEY CONCEPTS
Slide #2 Planning is the management function of deciding what will be done and how it will
be accomplished.
Because planning lays the foundation for all the other management functions (organizing, staffing, directing, and controlling), it is generally considered the first, or primary, management function.
Businesses use plans to make decisions and prevent mistakes.
Without plans, businesses would be without goals and a clear direction of how to reach those goals.
Discussion #1: Ask students to share examples of goal-driven plans.
Slide #3 An effective plan looks different from business to business.
A large accounting firm will have very different plans from a small nonprofit organization, because it’s likely that their goals will be different.
However, regardless of business size or industry, effective planning needs to do the following things:
Be simple.
If no one understands the plan, how can it be implemented?
Keeping plans simple will help employees complete their work and show how each step connects to meet the overall goal.
Be flexible.
Even the best-laid plans need to change.
Maintaining flexibility in plans helps businesses and managers adjust to any changes that might impact their work.
Link to long-term objectives.
Small, short-term goals are great—but they shouldn’t be prioritized at the expense of long-term goals.
Each small plan should work toward something greater.
Be consistent.
If a plan seems to change each day of the week, then employees will quickly become confused and frustrated—not a combination that will help the business reach its goals!
Be feasible.
Plans should be reasonable and attainable—it’s not feasible for a single lawyer to make plans to handle every divorce in a big city, even with the most ambitious of attitudes.
Provide direction for action.
Plans are like blueprints.
They lay out what work will be done and how that work will be done to reach a given goal.
An effective plan should provide a clear direction for how to proceed.
Otherwise, those plans won’t be useful at all!
Discussion #2: Ask students to brainstorm other qualities of effective planning.
Slide #4 Many things can stand in the way of effective planning, which is why it’s important for managers to recognize these barriers and be prepared to adjust their plans.
Some barriers include:
Trouble making accurate forecasts
Time and cost factors
Internal and external inflexibilities
Rapid change
Slide #5 Planning is an ongoing process.
It’s not just a “one and done” step—managers must constantly plan and re-plan to keep up with the ever-changing business environment.
While the planning process doesn’t always look the same for every business, there are several steps that most share:
Develop the context.
This is an opportunity to assess the current situation.
What kind of plan is needed?
What resources do we have?
What data do we need to gather before starting?
Establish goals.
This is a crucial part of the planning process—without goals, the plans have no purpose!
Goals should be measurable, straightforward, and feasible.
Create a plan.
This could include creating and prioritizing assignments, developing timelines and accountability systems, and establishing evaluation methods.
Create a contingency plan.
A contingency plan is an alternative course of action often used when the original plan no longer works.
Having a “backup” plan helps you be prepared for any changes!
Implement the plan.
This is when the plan is put into action.
The business follows the “blueprints” that have been created in order to reach the goals it set at the beginning.
Evaluate the plan.
After the plan (or contingency plan) has been completed, businesses should use their previously created evaluation methods to reflect on what did and did not go well.
Discussion #3: Ask students to reflect on plans they have created and implemented in the past. How did that plan work out? What could have been done differently?
Slide #6 Plans can take a variety of forms.
Strategic plans are those created by top-level management that aim to accomplish large, far-reaching goals.
Tactical plans are created by middle management, focusing on how the strategic plan can be accomplished from a smaller, more focused level.
Operational plans are created by and for lower managers.
These plans aim to support tactical goals from a hyper-focused, often day-to-day perspective.
Operational plans can be implemented a single time only, or they can be ongoing, such as policies, procedures, and rules.
1.4 Explain managerial considerations in organizing
1.4 Explain managerial considerations in organizing
Objectives:
a. Describe how a business benefits from the organizing management function (e.g., helps in achieving efficiency by avoiding wasted time, money, and effort; provides a means for coordinating work efforts; provides a sense of direction for a business's functional areas; improves employee understanding of job duties and responsibilities; clarifies authority; and improves employee morale).b. Discuss activities involved in the organizing management function.c. Explain decisions involved in the organizing management function (e.g., division of labor, delegation of authority, span of control, departmentalization, and coordination).d. Describe steps in the organizing process (e.g., determine work activities needed to carry out the business's plans and objectives; group work activities into logical patterns or structures; assign activities to specific positions and people, and allocate needed resources; coordinate activities of the different groups and individuals; and evaluate the results of the organizing process.).e. Explain factors that affect a manager's organizing decisions (e.g., company size, strategy, environmental conditions, and technology).f. Discuss the results of poor organizing (e.g., confusion, frustration, loss of efficiency, and limited effectiveness).Activity:
Create a checklist of organizing decisions that must be made to allow a school-based enterprise to run smoothly and effectively. Following the development of these checklists, Complete and be prepared to present your checklist to the class and explain reasons for each item identified
Managerial Considerations in Organizing
Slide 1 THINK ABOUT IT
Managers are responsible for organizing, the management function that includes setting up the way a business’s work will be done.
Organizing involves making all pieces of the business work together to contribute to the overall goals.
When managers organize, they:
Design job roles
Create organizational structures
Allocate tasks, resources, and facilities
Communicate and develop effective relationships with employees
By organizing the workload, employees, and resources of a business, managers make sure the business is efficient and reaching its goals.
KEY CONCEPTS
Slide #2 The organizing function is one of the most important aspects of management.
It benefits businesses in many ways, such as:
Improves efficiency and reduces waste
Unites goals with the mission
Keeps businesses cohesive and coordinated
Provides a sense of security for employees
Allows for tracking, accountability, and growth
Creates a clear chain of command that clarifies authority
Slide #3 Poor organizing can bring about serious consequences that can have a detrimental effect on the business.
These negative consequences can include the following:
Reduced productivity and efficiency
Miscommunication
Damaged reputation
Employee conflict and turnover
Inability to grow or reach goals
Discussion #1: Ask your students whether they have ever been part of a business, club, or other organization with poor managerial organization. What did that look like? What consequences did they see or experience?
Slide #4 Organizing is clearly an important part of management—but how do managers get started?
The managerial organizing process involves taking a plan and making it a reality.
Step 1: Determine the work needed to accomplish goals.
As a part of the planning process, managers set goals.
Next, it is time to break down the goals and figure out how to achieve them.
Managers divide goals into tasks and activities, figuring out what needs to be done.
Step 2: Group tasks into structures.
Managers must determine the organizational structure, which is the company’s configuration of employees for accomplishing specific business tasks.
Step 3: Assign tasks.
During this stage, managers design job roles and responsibilities.
Managers must figure out the most efficient way to divide work and use human resources.
Step 4: Delegate authority.
Authority is the formally granted influence of an individual to make decisions, pursue goals, and obtain the resources necessary to support those decisions and goals.
Step 5: Allocate resources.
Managers must decide how to best divide resources like equipment, facilities, materials, supplies, time, and money among employees to accomplish the work.
Step 6: Coordinate activities.
Managers need to integrate the work of employees and teams together to achieve organizational goals.
The manager is in charge of facilitating this coordination by clearly communicating with employees, making connections among departments, and demonstrating the relationships among work tasks.
Step 7: Evaluate results.
It’s important to periodically evaluate the results of the organizing process.
If the organizing process wasn’t effective, managers should discuss the issues with their employees and make changes to improve in the future.
Discussion #2: Ask your students why evaluating results periodically is important. What are some ways managers can measure whether or not the organization process in place is effective?
Slide #5 The organizing process involves a lot of decision-making.
But how do managers make these decisions?
Several factors affect the organizing process, and managers need to take them into account.
These factors include:
The size of the organization
Managerial abilities
Competence of employees
The business environment
The business’s life cycle
The business’s strategy
Discussion #3: Ask your students to consider the impact of each factor on organizational decision-making. Which might have the most impact? Which might have the least? Why?
1.5 Describe managerial considerations in staffing
1.5 Describe managerial considerations in staffing
Objectives:
a. Explain the importance of the staffing function to an organization.b. Discuss the staffing process.c. Explain why staffing is a separate function from organizing.d. Describe the effects of understaffing and overstaffing.e. Identify factors that indicate that a change in human resources is needed.f. Discuss the key dimensions of an organization that impact the development of human resources strategy (i.e., culture, organization, people, and human resources systems).g. Explain steps involved in developing human resources strategy.Activity:
Research about the importance of staffing in starting and running a business. List some of the benefits and difficulties you would have in selecting all the employees yourself. Identify and discuss specific staffing decisions that a new business needs to make and ways to overcome barriers it may face in staffing the business.
Managerial Considerations in Staffing
Slide 1 THINK ABOUT IT
Staffing is one of the five functions of management.
The staffing function ensures that a business has the right people working in the right job positions at the right times.
Businesses need top executives with strength and vision to plan for the future.
They need insightful, detail-oriented managers to give the organization structure.
And, they need capable supervisors to direct day-to-day operations.
Organizations acquire these employees through the staffing function.
KEY CONCEPTS
Slide #2 Businesses want to avoid being either overstaffed or understaffed.
When a business is overstaffed (too many employees), it is wasting money on unnecessary wages, salaries, benefits, training, etc.
On the other hand, when a business is understaffed (not enough employees), essential work tasks may be completed late—or not completed at all.
This can result in poor customer service, dissatisfied customers, exhausted employees, and, ultimately, lost business.
It’s important to note here that there are differences between organizing and staffing.
Organizing lays the foundation for staffing, but staffing is what gets employees in the door and in the right job positions.
Unlike organizing, staffing is a continuous activity—it’s happening all across the business, all the time.
Discussion #1: Ask your students whether they have visited a business that has been over- or understaffed. What was that experience like? What were the consequences? How could it have been resolved?
Slide #3 Though each individual business is unique, there are certain staffing tasks that every organization undertakes.
The staffing process involves:
Determining when positions need to be filled or created
Recruiting qualified potential employees
Screening candidate applications to decide who to interview
Interviewing potential employees
Selecting a final candidate for an open job position
Onboarding the new employee
Training and developing new and current employees
Developing compensation plans
Slide #4 There are a number of different indicators that occur when a change in human resources is needed.
Organizational growth or expansion that requires additional human resources
A changing economy, which can impact a business’s production and profits
Competitive pressure from other businesses who hire similar employees
New management, which might lead to a new management style or philosophy
Changes in government regulations that govern how businesses can operate
Need for new types of skills or experience as the business world changes and adapts
Need for process improvement, as change in operating processes affects staffing
Discussion #2: Ask your students to think about how staffing needs might have changed with advances in technology.
Slide #5 Every organization should have a human resources management strategy in place to guide all of the process and policies involved in the staffing function.
Before developing this strategy, managers should consider the important organizational dimensions (aspects) that will affect their plans.
Some of these dimensions are:
Organizational culture
Mission and vision
Organizational structure
Existing policies and practices
How do you develop a human resources strategy?
There are two key questions that managers must ask when developing a human resources management strategy for their organization:
What type of staff do we need to run this organization and meet our organizational goals?
What must we do to attract, develop, and retain (keep) this type of staff?
After considering the answers to these questions, managers should perform a workload analysis and a workforce analysis to see the gaps between the human resources they need and the human resources they have.
Their next job is to determine how to bring staffing supply and demand into balance by designing employment and training plans accordingly.
Discussion #3: Ask your students to explain the importance of employee retention. Then, ask them to brainstorm strategies to retain employees.
1.6 Discuss managerial considerations in directing
1.6 Discuss managerial considerations in directing
Objectives:
a. Explain the purpose of the directing management function.b. Describe the importance of the directing management function (e.g., initiates action, integrates efforts, acts as a means of motivation, provides stability, facilitates change in the organization, and enables efficient use of resources).c. Discuss activities involved in the directing management function (e.g., communication, motivation, group dynamics, and discipline).d. Explain why directing is considered the “heart” of management.e. Explain the relationship among motivation, needs, effort, and rewards.f. Describe characteristics of the directing management function (e.g., pervasive, continuous, human factor, creative, delegate, and executive).g. Explain criteria used to evaluate the effectiveness of a manager's ability to direct (e.g., quality of employees' work, amount of work completed by employees, and ability to control costs/stay within budget).Activity:
Write a short paper or record a 2-3 minute video or podcast explaining the different aspects of and activities involved in the directing management function. Reflect on your ability to carry out the directing function activities. Are you well-qualified? Why? Or, do your feel uncomfortable or unable to direct? Why?
Managerial Considerations in Directing
Slide 1 THINK ABOUT IT
While all of the functions of management are important, directing is considered its “heart.”
Directing involves providing guidance to workers to achieve goals.
Without it, the other management functions (planning, organizing, staffing, and controlling) wouldn’t have much value.
Directing is the source of employees’ energy and performance, and it maintains the healthy functioning of the business.
KEY CONCEPTS
Slide #2 Directing is a vital aspect of the management process.
It provides many important benefits for organizations, such as:
Initiating action
Coordinating individuals’ work and effort
Motivating employees
Providing stability and structure
Initiating change smoothly
Ensuring resources are used efficiently
Slide #3 Directing is all about action.
Managers participate in several activities as a part of the directing function:
Instructing
Instructing is the process of actually giving verbal or written instructions to employees.
Managers should be prepared to offer help and support, answer questions, and solve problems that come up as they instruct employees.
Supervising
Supervising is overseeing employees’ actions, monitoring their performance, and providing guidance and feedback.
The level of supervision required depends on the job, department, and the employees’ working styles.
Communicating
Managers need to communicate plans and directions so employees have a clear understanding of what they should do.
Communicating involves listening to employees’ ideas.
Motivating
Motivation is the process of getting employees to strive to achieve management’s objectives because they want to achieve them.
People are usually motivated by needs.
Rewarding and disciplining
Positive reinforcement is the act of encouraging a desired response by giving something pleasant.
Negative reinforcement is the act of terminating or withdrawing something unpleasant when a desired response is given.
Managers also need to discipline employees who are not following directions or meeting expectations.
Building group dynamics
Directing includes helping employees work together as teams, sometimes by resolving conflict between employees.
It is also important for managers to develop a team spirit.
Managers must help employees build consensus and play off of each other’s strengths.
Leading
Being an inspiring leader is an important part of directing.
Leadership means setting a positive example that others can follow.
It includes guiding employees so they want to do the right thing and achieve goals.
Discussion #1: Ask your students to think of themselves as directors. Which of the directing activities would they find easiest or most in line with
Slide #4 The way managers direct can change based on the company, the industry, or even the
manager’s style.
However, the directing management function has certain characteristics no matter what situation.
Pervasive
Continuous
Creative
Executive
People-focused
Discussion #2: Ask your students to think about a director with whom they’ve interacted. It could be for a job, a school event, a family friend, or some other scenario. What qualities did this person possess? How do those qualities align with the list above?
Slide #5 Managers can examine several key metrics to know whether or not they are directing well.
Employee turnover
A manager who has an unusually high number of employees who leave—especially after a short amount of time—could have some issues with his/her directing.
Quantity standards
Quantity standards are established specifications used to measure the amount of work produced.
These could be production numbers, sales data, or financial standing.
Quality standards
Quality standards (established specifications used to measure the degree of excellence of a good or service) are often represented in surveys, conversations, and evaluations.
Time standards
Managers who can direct employees well will be good at hitting deadlines and managing work time.
No employees will be overworked or underutilized.
Discussion #3: Ask your students about their experiences with employee turnover and quantity, quality, and time standards. How did directing affect these metrics? Do students find these are accurate measures for directing success or failure?
1.7 Describe the nature of managerial control (control process, types of control, what is controlled)
1.7 Describe the nature of managerial control (control process, types of control, what is controlled)
Objectives:
a. Discuss the purposes of organizational control (e.g., makes plans effective, ensures consistency of organizational activities, enhances organizational efficiency and effectiveness, provides feedback on status, and aids in decision making).b. Explain the organizational-control process (i.e., determine desired standards, apply standards to measure performance, compare standards with performance, take corrective action).c. Describe types of organizational control (e.g., feedforward, concurrent, and feedback).d. Discuss the impact of organizational control on a business.e. Explain what managers can control.f. Describe the relationship between planning and controlling.g. Discuss the characteristics associated with effective organizational control systems.h. Explain controls that managers use to improve organizational effectiveness (e.g., financial controls such as financial statements, financial ratio analysis, and audits; budget controls; marketing controls such as marketing research and test marketing; ratios of marketing activities such as market share, return on investment, and sales; human resources controls such as performance assessment, disciplinary actions, training and development assessments, and observations; and computer and information controls such as passwords and monitoring employee computer usage).Activity:
Identify a control used by their school-based enterprise. Prepare a visual depicting the control and display the visual in the classroom.
Ethics Case for Students: As a manager, it is Autumn’s job to check in with her team to see if plans are progressing effectively. She looks over her team’s work on a regular basis to make sure that members are meeting the required standards. Autumn has high expectations for her staff’s work, so she is often critical of the work she is examining. She puts pressure on her staff to hit all of their targets and expresses disappointment when they are struggling or falling short. Is Autumn’s method of controlling her staff’s work ethical? Why or why not? (Ethical Principles Involved: Trust, Accountability, Transparency, Respect, Viability)
The Nature of Managerial Control
Slide 1 THINK ABOUT IT
Managerial control is the management function that involves monitoring the work effort by comparing actual results to standards or plans, and taking corrective action when necessary.
It is important because it keeps organizations on track and helps businesses achieve their goals by guiding progress and evaluating outcomes.
Controls also inform managers’ decision-making by providing the evidence and facts needed to support one decision or another.
Finally, managerial control allows everyone in an organization to improve performance and achieve at a higher level.
Controlling goes hand in hand with the management function of planning.
When managers plan, they determine strategies and set goals.
When managers control, they check in to see how the organization is doing on accomplishing those goals and fulfilling those strategies.
KEY CONCEPTS
Slide #2 What do managers control?
Managers control a variety of different aspects of a business.
Here are a few of the most common:
Employees
Finances
Marketing/Customer Satisfaction
Technology
Products/Production
Discussion #1: Ask your students where they might have seen controlling before, even outside of the workplace. Where else would it be helpful to use standards or plans to monitor progress and adjust work as needed?
Slide #3 When do managers control, and how do they do it?
Feedforward, concurrent, and feedback are three main types of managerial control.
Feedforward controls are those that attempt to monitor and control performance before it occurs.
For example, if a manager sets rules for how employees are supposed to clock in and out of a shift, this is meant to prevent any issues with time-tracking from occurring in the first place.
Concurrent controls are those that monitor and control performance while it is occurring.
A quality-control manager inspecting a production line while it is in operation is an example of concurrent control.
Feedback controls are those that monitor and control performance after it has already occurred.
Let’s say a company wants to know whether a promotional campaign was worthwhile.
Managers can examine sales data to see whether sales increased from the promotion, allowing them to measure the overall success of the campaign after it is over.
Discussion #2: Ask your students about their experiences with different types of controls. What other examples can they come up with?
Slide #4 No matter what is being controlled, there is a general process that managers use to control.
Step 1: Determine standards of excellence.
It is impossible to assess results without a standard by which to measure them.
These standards can vary depending on business goals.
Step 2: Measure performance.
Managers must set up a system for measuring performance and track numbers on a regular basis.
Step 3: Compare performance with standards.
Managers next must look at the actual performance in comparison with the standards of excellence.
Companies use key performance indicators to compare performance against standards and see where the gaps are.
Step 4: Take corrective actions.
When actual results are falling short of standards, managers need to act quickly to get things back on track.
Discussion #3: Ask your students which of the control mechanisms they have seen before. Which might be the most helpful? Are there any other examples they can add to the list?
Slide #5 Managers have many mechanisms for making each step of the control process happen.
This includes:
Human resources controls (performance reviews, surveys, meetings, and observations)
Financial controls (budgets, balance sheets, break-even analyses, and audits)
Marketing controls (test marketing, sales data, and customer satisfaction ratings)
Technology controls (policies and procedures for safe and efficient computer use)
Product controls (quality checks and inventory management systems)
Slide #6 The controls that managers use to ensure organizational success must have certain characteristics to be effective.
Controls must:
Be based on accurate information
Be accepted by all team members
Work with existing processes
Be cost effective
Be easy to track
Be easy to understand
Match the organization’s needs
Be followed by timely corrective action
1.8 Explain management theories and their applications
a. Define the terms bureaucracy and system.b. Discuss the importance of management theory.c. Explain what management theories accomplish.d. Describe the nature of scientific management theory in classical management.e. Identify problems associated with scientific management theory.f. Discuss the nature of administrative management theory in classical management.g. Describe the nature of behavioral management theory.h. Discuss the nature of management science theory.i. Describe the nature of organization-environment theory.j. Explain the nature of the contingency theory of management in integrated perspectives of management.k. Discuss the nature of the systems theory of management in integrated perspectives of management.l. Describe the nature of the chaos theory of management.1.8 Explain management theories and their applications
Activity:
There are a variety of management theories. Conduct Internet research to develop an understanding of classical management theories, behavioral management theory, management science theory, and organization-environment theory. Develop your own theory of management. If possible create 5 student teams to discuss findings.
Management Theories
Slide 1 THINK ABOUT IT
There are a wide variety of management theories in the world—often contradicting each other.
The use of one theory might skyrocket a business to financial success, while the same theory sinks another company’s future.
You’ll even find that no one theory fits all businesses under all circumstances.
So, which one should you follow?
A good starting point is to develop an understanding of what management theories exist.
KEY CONCEPTS
Slide #2 Management theories are used to sort and classify complex, confusing experiences so that their differences are showcased and better understood.
Managers are then better able to make increasingly more accurate predictions about the outcomes of their actions.
Management theories are important because they:
Aid in pinpointing the causes of business success or failure
Help managers predict the outcomes of their actions under certain circumstances
Facilitate analysis of outcomes
Discussion #1: Ask students to share what theories they have learned about, even if not business related. Why were those theories created? How were/are they helpful? How have students seen these theories affect their own lives?
Slide #3 Scientific management theory involves analyzing the relationship between human resources and the tasks they perform to increase the efficiency with which the tasks are done.
This involves:
Breaking tasks into subtasks
Finding better ways of doing the tasks
Reorganizing the tasks so that the work is done most efficiently
However, there are a few problems with this theory, as it does not account for differences in people.
The method most efficient for one person might not work for another, and workers can become bored with the specific tasks they are required to do.
Note: Scientific management theory is different from management science theory, which relies on quantitative methods to guide managers.
With this theory, managers use mathematics, statistics, modeling, linear programming, and other quantitative techniques to make their decisions.
Slide #4 Administrative management theory focuses on the development of an organizational structure that is both highly efficient and effective.
Key aspects associated with administrative management theory include:
Having clearly identified lines of authority
Adhering to set rules and procedures
Providing fair rewards and compensation
Having a system (interrelated parts acting as a whole) of task relationships
Out of this management system came the term bureaucracy:
A formal organizational system that ensures efficiency and effectiveness by holding a business to pre-established rules and guidelines about authority, responsibility, performance, and accountability
Discussion #2: Ask students to share their experiences with organizations that did or did not prioritize an efficient organizational structure. How did that organization function? What improvements could have been made? Why?
Slide #5 In addition to scientific management theory and administrative management theory, there are other key management theories of which managers (and future managers) should be aware.
Behavioral management theory
This theory focuses on the way managers should personally behave to motivate and coordinate employees in order to encourage them to perform at peak levels.
Managers endorsing behavioral management believe that understanding employee motivation, conflict, expectations, and group dynamics increase productivity.
Organization-environment theory
With this theory, managers believe that forces, conditions, and influences outside the organization must be considered when making business decisions.
This theory helps managers recognize that the business does not operate in isolation.
Contingency theory of management
The contingency theory of management recognizes that change is a constant that businesses will always confront, so they must be flexible and innovative.
With this theory, there is no one best way to structure a business, so businesses need to respond to variables, or contingencies, that they face at the time.
This indicates that organizations with different structures can both be successful and that departments within an organization may be influenced by different contingencies and may need to be structured differently.
Systems theory of management
Systems theory recognizes management as a set of distinguishable, but interrelated and interdependent, parts operating together to achieve a goal.
It recognizes that when a change occurs in one part of a system, the other parts of the system are also affected.
This theory combines scientific management with behavioral management.
Chaos theory of management
This theory takes the view that events cannot be controlled or predicted; therefore, they can’t be planned with any degree of accuracy in the long term.
Likewise, businesses can’t operate on the basis of rigid instructions and objectives.
Instead, they need to function on the basis of shared values.
Discussion #3: Ask students to consider which management theory (or theories) might align best with their personal philosophies. Does that theory (or theories) also fit with their current job, or the nature of their future career? Why or why not?
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