Principles of  Management Course

Instructor:- Professor Ahmed Gad Abdel-Wahab

Email:-.ahmedgad1@mans.edu.eg

First semester 2014/2015

General Information:

 ‘Principles of Management’ is an introductory subject that studies the theory and basic concepts and tools of management. The objectives of the subject are as follows:

Ø  Appreciating the importance of management to organizations and society in general.

Ø  Gaining insights into the evolution of modern management theories.

Ø  Understanding the role of management in the effectiveness and efficiency of business.

Ø  Understanding different approaches to management.

Ø  Gaining the skills of exercising good judgment and presentation through short case studies.

Sources and Readings:
 Management                   

  Stephen P. Robbins and Mary Coulter

Publisher: Prentice Hall; 11th edition (Feb 6, 2011)

      ISBN: 0132163845
     http://sirpabs.ilahas.com/Management,%207e,%20Robbins-Coulter%20(Student%20Ed.).pdf

Grade Distribution:

Mid -Term Exam                                25%

Final Exam                                         75%

Total                                                   100%

Course Contents

	Topics
1	Introduction to Management and Organizations
2	Management Yesterday
3	Foundation of Planning
4	Foundation of Control
5	Organizing
6	Decision Making
7	managing organizational change
8	Leadership
9	Managing Workplace Ethics
10	Managing Workplace Diversity

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 Chapter 1

Introduction to Management and 
Organization

Learning Outline

What Is Management?

Who Are Managers?

Managerial Levels

Managerial Concerns

Efficiency and Effectiveness In Management

What Do Managers Do?

What Are Organizations? Following is a

Why Study Management?

What Do Managers Do?

Managers perform four management functions: planning, organizing, leading, and controlling.

The planning function refers to the process of defining goals, and establishing plans for achieving those goals.

The organizing function refers to the process of designing the organizational structure (to facilitate efficient achievement of goals), by determining what tasks to be done, who is to do them, and who reports to whom.

When managers motivate subordinates, direct the activities of others, or resolve conflicts among members, they are leading..

After the goals are set, and the plans formulated (planning function)  Actual performance is measured and compared with the planned performance

 If there are any significant deviations, it is management's job to correct the actual performance.

This process of measuring, comparing, and correcting is what is meant by the controlling function.

A Study Case

A manager's job is frequently filled with challenges, big and small, as Elaine Chao would readily admit. As the former director of the Peace Corps, Chao often faced unusual situations that required intelligent managerial decisions and actions. But those were nothing compared with the situation she faced when she took over as president at the national office of the United Way of America.

Just how bad was it at the over 110-year-old organization?    

One serious problem that Chao had to deal with in the early 1990s was increasing competition for donor's dollars from other not-for-profit agencies. At the same time an economic recession was slowing monetary donations, in general.

At an organization whose very existence depended on private donations, the double whammy of new competitors and slowing contributions was a significant managerial challenge. But those weren't the worst problems Chao had to deal with. You may be asking yourself about now, how could it be any worse than seeing your funding base shrinking? Well, it could be and it was!

The national headquarters of the United Way was involved in a shocking scandal that would threaten its funding even more.

Chao's immediate Predecessor (William Aramony, who served as United Ways president for 22 years) had resigned under charges that he had diverted organizational funds to finance a lavish life style, including limousine transportation (a luxurious automobile usually driven by a chauffeur), trips on the concord supersonic jet, exotic vacations and expensive gifts for teenage mistress. He was convicted in 1996 of tax fraud and served a seven years prison sentence.

As you can well imagine the negative publicity surrounding this whole disastrous situation was overwhelming and had a significant impact on activities and programs at United Way headquarters. Because of the accumulated shortfall of funds arising from the new competitors, the economic slowdown, and now this shocking scandal, for the first time ever, United Way national office was unable to meet its payroll. Morale among headquarters staff plummeted. They were angry and disillusioned

This situation would require exceptional managerial skills, talents and actions. 

Put yourself in Elaine Chao's situation.

?What managerial skills would you apply in tackling this situation

To solve these problems, Chao took the following actions

1- She spent much of her first year visiting the local affiliates in order to determine what they felt was missing

2- She tried to restore public confidence in the agency by taking smaller salary (50%) than previous presidents and in subsequent years she refused to accept raises offered to her.

3- Nearly one-third of the agency's staff was let go, and its budget was cut by one-third.

4- Management titles and layers have been reduced.

5- She used teamwork, and improved quality performance

6- She established a new code of ethics and a specific expense account control.

Her reputation helped pass the scandal: She was selected from a list of 600 candidates for her integrity, honesty, and management skills.

Questions

1. What do managers do that differentiates them from non-managerial workers?

1. Managers organize the work of other people.
2. Managers complete important paperwork.
3. Managers work directly on providing the product or service that the company sells.
4. Managers have no one reporting to them.

2. Christine is a manager at Body Beauty Inc. Her responsibilities include developing a company-wide marketing strategy (long term plan that affect the entire organization) in order to drive increased sales. Christine is considered a _____.

1. middle manager
2. first-line manager
3. top manager
4. non-managerial worker

3. _____ is referred to as "doing things right"; _____ is referred to as "doing the right things."

1. Efficacy; effectiveness
2. Efficiency; economy
3. Efficiency; effectiveness
4. Economy; efficacy

4. Which of the following is NOT one of the four functions managers perform?

1. Organizing
2. Serving
3. Controlling
4. Planning

5. The universality of management concept suggests that _____.

1. management is needed in all types and sizes of organizations and at all organizational levels
2. all managers play similar roles as they manage people
3. technical, human, and conceptual skills are necessary for success in management
4. most college graduates entering the workforce will either manage or be managed

6. The way a company manages its people can significantly affect its financial performance.

• True
• False

 7. The sole responsibility of the manager is to coordinate the work of other employees.

• True
• False

8. Managerial success is most often due to effectiveness achieved through inefficiency.

• True
• False

9. At the end of each week, Mark evaluates the number of outputs produced in order to ascertain whether the factory's goals have been met. This is an example of the organizing function of management.

• True
• False

10. When managers engage in planning, they define goals, establish plans for achieving those goals.

• True
• False

11. Colleges, government departments, and churches are all examples of organizations.

• True
• False

12. Once they graduate from college and begin their careers, most people will manage, be managed, or both.

• True
• False

13. Why should we study management? Discuss the universality of management and reality of work concepts

The universality of management  Management is needed in : a All Sizes of Organizations All Types of Organizations All Organizational Levels All Organizational Activities   –The reality of work Employees either manage or are managed.. –

Chapter 2

 Management Yesterday

Learning Outline

Ancient Management

Adam Smith

Industrial Revolution

Industrial Revolution

Major Approaches to Management

Scientific Management

General Administrative Theory

Quantitative Management

Organizational Behavior

Questions

1. In Wealth of Nations, Adam Smith described the breakdown of jobs into narrow and repetitive tasks and called this ______________.
a. assembly lines
b. work denomination
c. division of labor 
d. greatest common factor of work

2. Which of the following phrases is most associated with scientific management?
a. management relations
b. one best way 
c. supply and demand
d. quality control

3. General administrative theory focuses on ________________.
a. the entire organization 
b. managers and administrators
c. the measurement of organizational design relationships
d. primarily the accounting function

4. Which of the following is not one of Fayol’s principles of management?
a. division of labor
b. unity of command
c. discipline
d. equality

5. Weber's theory of management can be characterized by __________________. 
a. division of labor
b. clearly defined hierarchy
c. detailed rules and regulations
d. all of the above 

6. The quantitative approach to management has also been referred to by which of the following names?
a. sales optimization
b. management science.
c. managerial theory
d. statistical reformulation

7. Which of the following is most closely associated with the organizational behavior approach to management? 
a. bureaucracy
b. employee motivation
c. scientific methodology
d. interdependent systems
8. Which of the following early advocates of organizational behavior was the first to argue that organizations were open systems? 
a. Robert Owens
b. Chester Barnard
c. Mary Parker Follett
d. all of the above

9. The Hawthorne Studies were initially devised to study ______________.
a. productivity levels of groups versus individuals
b. the effect of noise on employee productivity
c. the effect of illumination levels on employee productivity
d. the effect of cooperative versus competitive organizational
environments on productivity

10.General administrative theorists devoted their efforts to _________________. 
a. developing mathematical models to improve management
b. improving the productivity and efficiency of workers
c. making the overall organization more effective 
d. emphasizing the study of human behavior in organizations

11. In the Industrial Revolution, machine power began substituting for human power.
a. True
b. False

12. Principles of Scientific Management were written by Frederick Taylor. 
a. True
b. False

13. Henri Fayol was among the first researchers to analyze motion pictures to improve the productivity of workers.
a. True
b. False

14. The 14 principles of management are associated with Fayol. 
a. True
b. False 

15. The quantitative approach to management has also been labeled process research. 
a. True
b. False

16. Chester Bernard was the first to argue that organizations are open systems. 
a. True
b. False

17. Frank Gilbreth’s best-known contribution to scientific management concerned selecting the best worker for a particular job. 
a. True
b. False 

18. An organization that has a division of labor, a clearly defined hierarchy, detailed rules, and impersonal relationships would be described as a bureaucracy. 
a. True
b. False

19. Concern for employee productivity is most closely associated with the organizational behavior approach. 
a. True
b. False

Chapter 3

Foundation of Planning

Learning Outline

q     What Is Planning?

Types of planning

q   Why Do Managers Plan?                               

Planning and performance

q    Elements of Planning ( Goals,  Plans )

q  Techniques for Assessing Environment

Environmental scanning

Benchmarking.

A Study Case

There is a new economic vibrancy in Moscow that many young people are working to take advantage of.

Three of these individuals are James Weinstock, Paul Kuebler, and Vladimir Grumlick.

The men were serious about staying physically fit, but they didn't see any outstanding gym facilities in Moscow.

The three "saw that there was a gaping hole in the market; there simply was no good western style health club in Moscow." So they decided to start one.

They chose a Gold Gym franchise.  

The three partners found a run-down Moscow sports complex that they felt has potential to be turned into a first-rate facility. They signed a 25-year lease on it and contracted with Gold 

Gym Enterprises of Venice, California, for the use of the name.

But taking an idea and turning it into reality involves  a lot of planning. Put yourself in the trio's position.  What type of planning would Weinstock, kuebler, and Grumlik need to do in order to turn their dream into reality?  

WHAT WOULD YOU DO?

Questions

True/False

1. Organizational planning is concerned with how objectives are to be accomplished, not what is to be accomplished.

a. True
b.False

2. Research indicates that managers who plan always outperform nonplanning managers.
a. True
b. False

3. Planning establishes the goals and standards by which managers control their organization.

a. True
b. False

4. Directional plans have clearly defined objectives.
a. True
b. False

5. Goals are the foundation of organizational planning.
a. True
b. False

6. An MBO program consists of four elements: loose goals, participative decision making, an explicit time period, and performance feedback.
a. True
b. False

7. A well-designed goal should be written in terms of outcomes, not actions, and the goals should be measurable.
a. True
b. False

8. If a manager refuses to write anything down or share his plans with others in the organization, he is not truly planning
a. True
b. False

9. An integrated hierarchy of goals is sometimes called a means-end chain.
a. True
b. False
10. In a typical MBO program, successful achievement of objectives is reinforced by performance-based rewards
a. True
b. False

11. Planning reduces uncertainty regarding current events, but often leaves managers unable to anticipate change and develop appropriate responses to future events.
a. True
b. False

Multiple- Choice

1. In formal planning, _________.

a. specific goals are developed and not written
b. general goals are developed and not written
c. all of the above
d. none of the above

2. In studies in which formal planning did not lead to higher performance, ____________.

a. the external environment often was the culprit
b. management execution of the plans was most often the reason for failure
c. employee implementation of the plans was the primary reason for failure
d. lack of communication was most often the reason for failure

3. Planning is often called the primary management function because it ____________.

a offers some basis for future decision making
b. creates the vision for the organizational members to work toward
c. establishes the basis for all the other functions
d. sets the tone for the organizational culture

4. When we categorize plans as being directional versus specific, we are categorizing them by ____________.

a. breadth
b. specificity
a. frequency of use
c. depth

5. Directional plans do which of the following?

a. have clearly defined objectives
b. identify general guidelines
c. meet the needs of a unique situation
d. last for 3–5 years

6. Goals are objectives, __________.

a. and we use the two terms interchangeably
b. but goals are long-term and objectives are short-term
c. and goals are used by top management and objectives are used by first-level management
d. but goals are used in reference to profits, and objectives are used in reference to production output

7. Strategic plans are plans that apply to the entire organization, establish the organization’s overall goals, and ____________.

a. guide the organization toward maximizing organizational profits for the stockholders
b. attempt to satisfy all government regulations while maximizing profits
c. satisfy the organization’s stakeholders
d. seek to position the organization in terms of its environment

8. Specific plans are clearly defined and ____________.

a. allow managers to their interpretation for flexibility
b. leave no room for interpretation
c. give the managers authority to interpret the plans for their area of responsibility
d. keep the stakeholders inform of the organization’s objectives

9. Goals are often called ___________.

a. the basis for environmental scanning
b. managements’ do or die objectives
c. a lot of other names by various organizations
d. the foundation of planning

10. Management by objectives is a management system in which the first steps are setting specific performance goals that are _____________.

a. established that can be easily accomplished
b. jointly determined by employees and their managers
c. determined by top management with clarity so that the objective are clear to even the most incompetent employee
d. developed in such a manner that the employees are self-directed and do not need supervision

11. A well-designed goal should be ____________.

a. short and very specific about expected outcomes
b. written in terms of outcomes rather than actions
c. identifiable to even the first-line supervisors
d. specific and operational

12. A well-designed goal should be measurable, have a specified time frame, and be ____________.

a. written down
b. nearly unattainable, so that even if the unit or employee misses their goal, performance is still very high
c. communicated to everyone
d. both a and c

13. Formal planning involves which of the following aspects?

a. general objectives
b. planning for up to one year
c. writing objectives
d. distributing the plan to all managerial employees

14. In informal planning, __________ .

a. is written down.
b. nothing is written down
c. all of the above
d. none of the above

15. ____________ planning dominates managers’ planning efforts at lower levels of the organization.

a. Strategic
b. Operational

c. all of the above.

d. none of the above

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Chapter 4

Organizing

Learning Outline

- Organizing

- An Organizational structure

- Creating an organizational structure

    Division of Labor

    Departmentalization

    Span of Control 

   Chain of Command

   Centralization and decentralization 

 - Forms of Organizational Structure

 - The Contingency Approach to

   Organizational Structure

-------------------------------------------------------------------------

The Contingency Approach to

 Organizational Structure

Organizations are not all structured in exactly the same way. What works for one organization may not work for another.

     Top managers of most organizations put a great deal of thought into designing an appropriate structure.

     An appropriate structure is contingent upon some factors such as size of the organization and the degree of environmental uncertainty

Size of the organization As an organization grows larger, its structure tends to change from organic to mechanistic with more specialization, departmentalization, centralization, and rules and regulations.

Environmental uncertainty One can use tow different views to describe the organizational environment.

The first view is for the stable and simple environment, and the second view is for Dynamic and complex environment

Stable and simple environment This view envisions the organization as a large ship crossing a calm sea. The ship's captain and crew know exactly where they are going because they have made the trip many times before. Change comes in the form of occasional storm, a brief disruption in an otherwise calm and predictable sea.

Dynamic and complex environment

In the other view, the organization is seen as a small raft navigating a raging river with uninterrupted white-water rapids. Aboard the raft are four people who have never worked together before, who are totally unfamiliar with the river, who are unsure of their eventual destination.

True/False Questions

1. Grouping jobs on the basis of product or customer flow is termed customer departmentalization. F
2. When decisions tend to be made at lower levels in an organization, the organization is said to be decentralized  T
3. An organic organization tends to be characterized by high specialization, extensive departmentalization, narrow spans of control, high formalization, a limited information network, and little participation in decision making by low-level employees. F
4. An organic organization would likely be very flexible.T
5. Chain of command, span of control, and centralization are all necessary elements of departmentalization. F
6. Process departmentalization helps managers better monitor customers' needs and respond to changes in those needs. F
7. The obligation of employees to perform duties assigned to them by managers is known as the chain of command. F
8. The wider the span of control, the more efficient the organizational design. T

Multiple Choices

1. Trends in the past few years have centered on a ____________ span of control to reduce costs and speed decision making.
a. narrower
b. wider
c. deeper
d. stable
2. The degree to which decision making is confined at a single point in an organization is described as ____________.
a. unity of command
b. chain of command
c. span of management
d. centralization
3. d. The degree to which jobs are standardized and guided by rules and procedures is called ______________.
a. work specialization
b. centralization
c. decentralization
d. formalization
4. In an effort to make organizations more flexible and responsive to competitive pressures, firms have adopted more ____________ decision making.
a. centralized
b. decentralized
c. vertically integrated
d. stable
5. A(n) ____________ organization is able to change rapidly as needs require.
a. organic
b. horizontal
c. vertical
d. mechanistic
6. When managers standardize employee behavior through rules and procedures, the jobs are becoming more _____________ .
a. diversified
b. formalized
c. vertical
d. horizontal
7. Structure is related to the size of the organization, such that larger organizations tend to have more ____________.
a. specialization
b. departmentalization
c. centralization
d. all of the above
8. Structure is related to the size of the organization, such that larger organizations are more _____________.
a. mechanistic
b. organic
c. structurally weak
d. decentralized
9. Global competition, accelerated product development by competitors, and increased demands by customers for better service have encouraged organizations to become more _____________.
a. organic
b. mechanistic
c. technologically pure
d. task oriented
10. Which type of environment is best suited for mechanistic organizations?
a. dynamic
b. manufacturing
c. service
d. stable
11. Organizational structure is defined as ___________.
a. a set of managerial decisions and actions
b. a formal framework by which job tasks are divided, grouped, and coordinated
c. a process that is done best if it is done quickly
d. all of the above
12 Organizational design is based on decisions about ____________.
a. work specialization and departmentalization
b. chain of command and span of control
c. centralization and decentralization
d. all of the above
13 On what basis are jobs grouped in order to accomplish organizational goals?
a. departmentalization
b. centralization
c. formalization
d. coordination
14. Functional departmentalization groups jobs by ______________.
a. tasks they perform
b. territories they serve
c. products or services they manufacture or produce
d. type of customer they serve
15. Departmentalization based on _______________ groups’ jobs based on the territory or physical location.
a. functional
b. product
c. geographic
d. matrix

Chapter 5 

Organizational Change

Learning Outline

If it weren't for change

Change Process

Organizational behavior Change

Pain Pleasure Relationship

Reactions to Change

Managing the Transition

A STUDY CASE (Dan Danwoodie)

Up to this point I have been doing very well. At 27 years of age

I'm a chief of an economic analysis branch in the United Automobile Manufacturing Company. I was hired personally by John  Roman, my division chief, who interviewed me at the university where I was completing my MBA. John had expressed interest in several of my qualifications: BA in economics from an outstanding university, four years of work experience as an analyst in industry, and a specialty in information systems while working When I entered on duty three months ago, John gave me guidance as follows: "Economic analysis function and processing at United need updating. Analysts do not comprehend the importance of management, nor the possible application of information systems to managerial decision making.  

After you have three to six months to learn your job, you are to come up with recommendations for organizational and procedural changes in your branch. You are to keep in close contact with your peers, the other branch chiefs in the division, all of whom have been with the company for five or more years. I assumed my responsibilities with great energy and soon saw many possibilities for developing the effectiveness of my branch. I worked evenings and weekends on a new plan. As I developed ideas, I would try them out on each of the other branch chiefs. They were helpful and responsive. One objection did arise from Carl Carlson chief of Branch B, who criticized some of the information system suggestions. (Carl was regarded in the division as the next man in line for John's job.) At the end of three months with United, I presented my plan to my entire branch in a briefing session, complete with a statement of objectives, charts, and expected results. In response to my request for their reactions, two One was Elsie Eden, who was a contemporary of John and the branch chiefs (I had heard she would have had my job if she had been willing to take an extensive computer training program.) The other was Russ Merrrywood, also an old timer, who had been passed over for advancement (I had also heard that Russ had money and was not too committed to his job, although I find that his work is excellent.) My plan was well thought out, and further clarification of various details appears to satisfy all question raised. On a Wednesday afternoon I gave the same oral briefing to John (division chief), who showed enthusiasm and pleasure. He promised me an early decision and asked On Thursday afternoon I received the report back with the notation, "Sound great proceed soonest with entire plan with the exception of Para. 6, which I wish to study further". (Para. 6 contained an information system suggestion concerning which Carl had expressed disapproval to Dan.) 

     I spent Friday in meeting with my branch, making initial plans for implementing the new program. Over the weekend I continued on my own to make final plans. Early Monday morning I was asked to come to the division chief office. I then learned that John had reversed his decision, and no changes were to be put into effect at this time. John appeared rather brisk and said he did not have time to discuss the decision. Later that day, I learned that John had attended a dinner party at Russ's house over the weekend.  .  

What are some possible explanations for the events described in the case? 

6. Decision Making

A MANAGER DILEMMA

How would you like to take a managerial position in an organization whose customers complain constantly and loudly about the poor level and quality of service and in which your effort to improve things were essentially discouraged because your budget to run the business was continually being sliced away bit by bit? That is the type of challenging situation that Shirley DeLibero faced when she took over as executive director of the  N Jersey transit Department Before DeLibero took over this job, irate customers who used the Transit Department's trains and buses complained loudly because the equipment was frequently late. In addition the government decision makers in charge of making budget allocations to the department were providing significantly less funding to run and maintain the transit system's equipment. The transit system also had a long-running history of annual fare hikes (increase) and poor equipment maintenance, which led to continual breakdowns and contributed to the problem with the transit system's train and buses frequently running behind schedules.  Customers were paying more for the service and getting significantly less satisfactory service! No wonder they complained constantly! Also because of these widespread organizational problems, the transit workers- the people who actually drove the buses and the trains – had low morale. This was another problem for DeLibero to tackle: how to address the dissatisfaction  and anxieties of the department's drivers. DeLibero wasn't overwhelmed by all these challenges. As the highest ranking African-American women in the public transportation industry, she had faced challenges before in the various transportation management positions she had held. The key to straitening out the Transit Department's problems would be making good managerial decisions. Put yourself in DelLibero's situation             
?What would you do