Contents. Part I: Introduction to Management. Part II: Planning. Part III: Organizing. Part IV: Staffing. Part V: Leading. Part VI: Controlling

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1 Contents Part I: Introduction to Management Chapter 1 Management: An Overview 3-18 Chapter 2 Evolution of Management Thought Chapter 3 Social and Ethical Responsibilities of Management Part II: Planning Chapter 4 Fundamentals of Planning Chapter 5 Management by Objectives Chapter 6 Strategies, Policies and Planning Premises Chapter 7 Managerial Decision Making Part III: Organizing Chapter 8 Fundamentals of Organizing Chapter 9 Strategic Organization Design Chapter 10 Strategic Organization Structure Chapter 11 Effective Organizing and Organizational Culture Part IV: Staffing Chapter 12 Human Resource Management and Staffing Chapter 13 Performance Appraisal and Career Strategy Chapter 14 Organizational Change and Organization Development Part V: Leading Chapter 15 Managing and the Human Factor Chapter 16 Motivating Employees for Job Performance Chapter 17 Leadership Chapter 18 Managing Communications Part VI: Controlling Chapter 19 The Control Function Chapter 20 Control Techniques Chapter 21 Productivity and Operations Management Chapter 22 Management Information Systems Part VII: Management: A Global Perspective Chapter 23 International Management Glossary Bibliography Index

2 Part One: Introduction to Management Detailed Contents 1. MANAGEMENT: AN OVERVIEW... 3 Introduction... 4 Definitions of Management... 4 The Role of Management... 6 Functions of Managers... 7 Planning... 8 Organizing... 8 Staffing... 8 Leading... 9 Controlling... 9 Levels of Management... 9 Top-Level Managers Middle-Level Managers First-Level Managers Time Spent in Carrying out Managerial Functions Management Skills and Organizational Hierarchy Technical Skills Human Skills Conceptual and Design Skills Approaches to Management EVOLUTION OF MANAGEMENT THOUGHT Introduction Early Approaches to Management Robert Owen: Human Resource Management Pioneer Charles Babbage: Inventor and Management Scientist Andrew Ure and Charles Dupin: Management Education Pioneers Henry Robinson Towne ( ) Classical Approach Scientific Management Administrative Theory Bureaucratic Management Characteristic Description Behavioral Approach Mary Parker Follet: Focusing on Group Influences Elton Mayo: Focusing on Human Relations Abraham Maslow: Focusing on Human Needs Douglas McGregor: Challenging Traditional Assumptions about Employees Chris Argyris: Matching Human and Organizational Development Quantitative Approach Management Science Operations Management Management Information Systems... 38

3 Modern Approaches to Management Systems Theory Contingency Theory Theory Z SOCIAL AND ETHICAL RESPONSIBILITIES MANAGEMENT Introduction Social Responsibilities of Management Arguments for and against Social Responsibilities of Business Arguments for Social Responsibilities of Business Arguments against Social Responsibility of Business Social Stakeholders Shareholders Employees Customers Creditors and Suppliers Society Government Measuring Social Responsiveness What should be Measured? How to Measure SR? Managerial Ethics Types of Managerial Ethics Factors that Influence Ethical Behavior Ethical Guidelines for Managers Mechanisms for Ethical Management Part Two: Planning 4. FUNDAMENTALS OF PLANNING Introduction Definitions of Planning Nature of Planning Planning is Goal-oriented Planning is an Intellectual or Rational Process Planning is a Primary Function Planning is All-pervasive Planning is Forward-looking Planning is a Perpetual Process Planning is an Integrated Process Planning Involves Choice Significance of Planning Focuses Attention on Objectives Offsets Uncertainty and Risk Provides Sense of Direction Provides Guidelines for Decision-making Increases Organizational Effectiveness Provides Efficiency in Operations Ensures Better Coordination... 73

4 Facilitates Control Encourages Innovation and Creativity Facilitates Delegation Types of Plans Plans based on Organizational Level Plans based on Frequency of Use Plans based on Time frame Steps in the Planning Process Analyzing Opportunities Establishing Objectives Determining Planning Premises Identifying Alternatives Evaluating Available Alternatives Selecting the Most Appropriate Alternative Implementing the Plan Reviewing the Plan Prerequisites for Effective Planning Establishing the Right Climate for Planning Clear and Specific Objectives Planning Premises Initiative at Top Level Participation in Planning Process Communication of Planning Elements Integration of Long-term and Short-term Plans An Open Systems Approach Management Information System Limitations of Planning Lack of Accurate Information Time Consuming Process Expensive Inflexibility Resistance to Change Environmental Constraints Lack of Ability and Commitment False Sense of Security Reluctance to Establish Goals MANAGEMENT BY OBJECTIVES Introduction Nature of Objectives Hierarchy of Objectives The Process of Formulating Objectives and the Organizational Hierarchy A Network of Objectives Multiplicity of Objectives Concepts in MBO Early Impetus to MBO Emphasis on Performance Appraisal Emphasis on Short-term Objectives and Motivation Inclusion of Long-range Planning in the MBO Process The Systems Approach to MBO... 98

5 The Process of MBO Steps in the MBO Process Benefits of MBO Better Managing Clarity in Organizational Action Encouragement of Personal Commitment Personnel Satisfaction Basis for Organizational Change Development of Effective Controls Limitations of MBO Failure to Teach MBO Philosophy Failure to Give Guidelines to Goal Setters Difficulty in Goal-setting Emphasis on Short-term Goals Inflexibility Other Dangers Making MBO Effective Top Management Support Training for MBO Formulating Clear Objectives Effective Feedback Encouraging Participation STRATEGIES, POLICIES AND PLANNING PREMISES Nature and Purpose of Strategies and Policies The Key Function: Giving a Direction to Planning The Guide: Furnishing a Framework for Plans The Need for Operational Planning: Tactics The Effect on all Areas of Management The Three Levels of Strategy Corporate-level Strategy Business-level Strategy Functional-level Strategy Strategic Planning Characteristics of Strategic Planning Significance of Strategic Planning Limitations of Strategic Planning Strategic Planning Process Step One: Defining the Mission of the Organization Step Two: Drawing up Organizational Objectives Step Three: Assessing Organizational Resources, Risks and Opportunities Step Four: Formulating Strategy Step Five: Implementing Strategy Step six: Monitoring and Adapting Strategic Plans Strategic Planning Vs Operational Planning Competitive Analysis in Strategy Formulation Environmental Assessment Organizational Assessment

6 Major Kinds of Strategies and Policies Growth Finance Organization Personnel Public Relations Products or Services Marketing Porter s Competitive Strategies Overall Cost Leadership Differentiation Focus Strategy Implementation Carrying Out Strategic Plans Maintaining Strategic Control Effective Implementation of Strategy Communicating Strategies to all Key Decision-making Managers Developing and Communicating Planning Premises Developing an Appropriate Fit Between Organizational Structure and Planning Needs Ensuring that Action Plans Contribute to and Reflect Major Objectives and Strategies Developing Contingency Strategies and Programs Reviewing Strategies Regularly Continuing to Emphasize Planning and Implementing Strategy Creating a Proper Organizational Climate Planning Premises Planning Premises versus Future Expectations Effective Premising MANAGERIAL DECISION-MAKING Introduction Significance and Limitations of Rational Decision-Making Significance of Rational Decision-making Limitations of Rational decision-making Managers as Decision-Makers The Rational Model Non-rational Models Decision-Making Process Identifying the Problem Identifying Resources and Constraints Generating Alternative Solutions Evaluating Alternatives Selecting an Alternative Implementing the Decision Monitoring the Decision Types of Managerial Decisions Programmed Decisions Non-programmed Decisions

7 Decision-Making under Certainty, Uncertainty and Risk Decision-making under Certainty Decision-making under Risk Decision-making under Uncertainty The Systems Approach to Decision-Making Management Information System Decision Support System Group Decision-making Forms of Group Decision-making Decision-making Techniques Marginal Analysis Financial Analysis Break-Even Analysis Ratio Analysis Operations Research Techniques Part Three: Organizing 8. FUNDAMENTALS OF ORGANIZING Introduction Definitions of Organizing Benefits of Organizing Traditional Perspectives on Organizing Challenges to the Traditional View of Organizations Closed System Vs Open System Closed System View of Organizations Open System View of Organizations Formal Vs Informal Organization The Process of Organizing The Logic of Organizing Some Misconceptions Bases for Departmentation Departmentation by Simple Numbers Departmentation by Time Departmentation by Process or Equipment Choosing the Pattern of Departmentation STRATEGIC ORGANIZATION DESIGN Introduction Span of Management Tall Versus Flat Structure Factors Determining an Effective Span Authority Defined Power: Bases of Power

8 Line and Staff Relationships Concept of Line and Staff Functional Authority Line and Staff Conflicts Nature of Line and Staff Relationship Avoidance of Line and Staff Conflict Centralization versus Decentralization History of an Organization Availability of Competent Managers Size of the Organization Geographical Dispersion Technical Complexity of Tasks Time Frame of Decisions The Importance of a Decision Planning and Control Procedures Views of Subordinates Environmental Influences Delegation of Authority Factors Affecting Delegation of Authority Balance The Key to Decentralization STRATEGIC ORGANIZATION STRUCTURE Introduction Ensuring Understanding of Organization Structure Teaching the Nature of the Organization s Structure Recognizing the Importance of the Informal Organization and the Grapevine Designing Organizational Structures: An Overview Which Comes First Strategy or Structure? Factors Influencing Organization Design Major Structural Alternatives Functional Structure Divisional Structure Hybrid Structure Matrix Structure Strategic Business Units EFFECTIVE ORGANIZING AND ORGANIZATIONAL CULTURE Introduction Prerequisites for Effective Organizing Avoiding Mistakes in Organizing By Planning Planning for the ideal Modification for Human Factor Advantages of Organization Planning Avoiding Organizational Inflexibility Signs of Inflexibility Avoiding Inflexibility through Reorganization The Need for Readjustment and Changes

9 Avoiding Conflict by Clarification Organization Charts Position Descriptions Organizational Culture Meaning of Culture The Significance of Corporate Culture Characteristics of Organizational Culture Organizational Environment for Entrepreneuring and Intrapreneuring Part Four: Staffing 12. HUMAN RESOURCE MANAGEMENT AND STAFFING Introduction Human resource Management: An Overview Human Resource Planning Staffing Training and Development Performance Appraisal Compensation Recruitment The Recruitment Process Selection The Selection Process Socialization Process of New Employees PERFORMANCE APPRAISAL AND CAREER STRATEGY Introduction Significance of Appraisal Informal Vs Formal Appraisals Informal Appraisal Formal Appraisal Corrective action Performance Rating Methods Graphic Rating Method Behaviorally Anchored Rating Scale (BARS) Criteria for Appraising Managers Appraising Managers against Verifiable Objectives Appraising Managers as Managers Formulating Career Strategy Preparation of a Personal Profile Development of Long-range Personal and Professional Goals Analysis of Environment Threats and Opportunities Analysis of Personal Strengths and Weaknesses Development of Strategic Career Alternatives Consistency Testing and Strategic Choices Development of Short-range Career Objectives and Action Plans Development of Contingency Plans Implementation of a Career Plan Monitoring Progress

10 14. ORGANIZATIONAL CHANGE AND ORGANIZATION DEVELOPMENT Introduction Organizational change Factors that lead to Organizational Change Sources of Resistance to Change Measures to Overcome Resistance to Change Change Process Planned Change through Organization Development The Objectives of OD Organizational Development Process Diagnosis Intervention Evaluation Approaches to Manager Development On-the-Job Training Off-the-Job Training Organizational Conflict Sources of Conflict Managing Conflict Part Five: Leading 15. MANAGING AND THE HUMAN FACTOR Introduction The Nature of People Individual Differences The Importance of Personal Dignity Considering the Whole Person Multiplicity of Roles Behavioral Models Edgar H. Schein s Model of the Complex Person Lyman Porter s Model of Human Nature McGregor s Theory X and Theory Y Three Managerial Models by Raymond E. Miles Managerial Creativity The Creative Process Techniques to Enhance Creativity The Creative Manager MOTIVATING EMPLOYEES FOR JOB PERFORMANCE Introduction Definitions and Meaning of Motivation Classification of Motivation Theories Content Theories of Motivation Process Theories of Motivation

11 Motivational Techniques Rewards Participation Quality of Work Life (QWL) Job Enrichment A Systems and Contingency Approach to Motivation LEADERSHIP Introduction Definition and Meaning of Leadership Key Elements of Leadership Leadership Theories Trait Theory of Leadership Behavioral Theories Situational or Contingency Theories Transformational Leadership Theory MANAGING COMMUNICATIONS Introduction Definitions of Communication Significance of communication in organizations Communication process Sender Transmission Noise Receiver Feedback Communication Flows in an Organization Downward Communication Upward Communication Crosswise Communication Barriers to Communication Lack of Planning Badly Expressed Messages Faulty Translations Unclarified Assumptions Semantic Distortion Loss by Transmission and Poor Retention Communication Barriers in the International Environment Inattention and Premature Evaluation Impersonal Communication Insufficient Adjustment Period Information Overload Lack of Trust in the Communicator Other Communication Barriers Gateways to Effective Communication Interpersonal Trust Effective Listening Proper Feedback Non-verbal Cues Non-directive Counseling

12 Part Six: Controlling 19. THE CONTROL FUNCTION Introduction Planning and Controlling Importance of Controlling Coping with Uncertainty Detecting Irregularities Identifying Opportunities Handling Complex Situations Decentralizing Authority Minimizing Costs Levels of Control Strategic Control Tactical Control Operational Control Basic Control Process Determining Areas to Control Establishing Standards Measuring Performance Comparing Performance against Standards Recognizing Good or Positive Performance Taking Corrective Action when Necessary Adjusting Standards and Measures when Necessary Direct Control vs. Preventive Control Direct Control Preventive Control Types of Control Controls Based on Timing Cybernetic and Noncybernetic Control Requirements for Effective Controls Certified Management Audit and Enterprise Self-Audit The Certified Management Audit The Enterprise Self-audit CONTROL TECHNIQUES Introduction Major Control Systems Managerial Level Nature of Timing Financial Control Financial Statements Ratio Analysis Budgetary Control Responsibility Centers Uses of Responsibility Centers Quality Control Quality Circles Total Quality Management (TQM) Inventory Control

13 21. PRODUCTIVITY AND OPERATIONS MANAGEMENT Introduction Production and Productivity Productivity Problems and Measurement Operations Research, Production & Operations Management Operations Management and its Importance Operations Research for Planning, Controlling and Improving Productivity Some Operations Research Techniques Linear Programming Inventory Control Time-event Networks Value Engineering Work Simplification Limitations of Operations Research Magnitude of Computation Gap between Managers and Operations Research Lack of Quantification and Involvement of Qualitative Factors MANAGEMENT INFORMATION SYSTEMS Introduction Management Information Meaning of Information Attributes of Information Information Needs of Managers Components of an Information System Hardware Software People Data Procedures Types of Information Systems Transaction Processing Systems Office Automation Systems Decision Support Systems Executive Support Systems Management Information Systems Evolution of MIS Computers and MIS Advantages of MIS Difference between MIS and DSS Part Seven: Expanding Horizon in Management 23. INTERNATIONAL MANAGEMENT Introduction Reasons for Going International Aggressive and Defensive Reasons Stefan H. Robock and Kenneth Simonds Six Motives: International Management Functions

14 Planning Organizing Staffing Leading Controlling Japanese Management Lifetime Employment Seniority System Continuous Training Emphasis on Group Work Decision-making Complicated Performance Evaluation Father Leadership Good Benefits for Employees Simple and Flexible Organization Theory Z Multinational Corporations Orientations toward International Business Advantages of Multinationals Challenges for the Multinationals

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