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In this unit…In this unit…
In unit 3, we will:1. Discuss different levels of
management 2. Discuss how planning, organizing,
leading and controlling could be specifically related to management
3. Define different functions of managers4. Submit a paper (project)5. Participate in Discussion Board
Henri FayolHenri FayolLived 1841-1925◦Key figure in turn-of-the-century Classical School
of Management TheoryConsidered the father of Systematic Management◦Theoretical foundation for a managerial education
program based on his experience as a successful managing director of a mining company
◦Managers didn’t have formal training, just on the job training and learned from their experiences
Henri FayolHenri FayolDeveloped 5 functions of management:◦Planning ◦Organizing◦Commanding ◦Coordinating activities◦Controlling performance
Notice: these activities are very task-oriented rather than people-oriented
Henri FayolHenri FayolAlso developed 14 Principles of Management
(principles of organization):◦ Specialization of labor – specializing encourages
continuous improvement
◦ Authority – right to give orders
◦ Discipline – no slacking or bending of rules
◦ Unity of command – each employee has only one boss
◦ Unity of direction – single mind generates single plan and play their part
◦ Subordination of individual interests – when at work, only work things should be pursued or thought about
◦ Remuneration – employees receive fair payment for service
14 Principles of Management 14 Principles of Management (continued) (continued)
◦ Centralization – decisions made from the top
◦ Scalar chain – formal chain of command, top to bottom (military)
◦ Order – materials, personnel have assigned place to be
◦ Equity – equality of treatment (not necessarily identical treatment)
◦ Personnel tenure – lifetime employment for good workers (low turnover)
◦ Initiative – thinking out a plan, do what it takes to make it happen
◦ Esprit de corps – harmony, cohesion among personnel
14 Principles of Management 14 Principles of Management (continued) (continued)
Of the 14, most important elements:
◦ Specialization
◦ Unity of command
◦ Scalar chain
◦ Coordination by managers Combination of authority and unity of direction
Do you see any connections between those that were deemed most important?
◦ Are managers seen as “leaders” or just authority giving direction?
◦ How do you think this kind of management style would make employees feel?
For our purposes…For our purposes…We are going to use some of this groundwork
for our assignmentWe are going to use these four ideas:◦Planning◦Organizing◦Leading (combination of commanding and
coordinating activities)◦Controlling
PlanningPlanningDetermines where the organization is and where
it needs to be in the futureSetting goals of the organizationChoose strategies and determine resources
needed to achieve them Can you think of some plans a manager may
make in an organization?Can you share a personal example of a manager
who plans well? Or not well?How does planning fit in to your final project?
OrganizingOrganizingCoordinating the human, physical and financial
information and other resources of the firmIncludes specifying job responsibilities,
grouping organizational functionsWhat would be an example of good
organizational skills that you might need to be successful in your position?
Do you see any evidence of good organizational skills currently in place in the coffee shop?
LeadingLeadingThe efforts of the manager motivating people to
perform their best Involves guiding and inspiring peopleEncouraging team and organization to achieve
goalsDifference between leading and directingWhat do YOU think makes a good leader?◦Any examples you would like to share?
ControllingControllingThe culmination of all the prior steps making
certain the plans, organization and leadership are put into practice and that they work accurately.
Can controlling be seen as a positive or a negative?
What happens if you only have 2 of the 3 previously mentioned functions? Does that make you a poor manager?
ManagementManagementRoles of management◦Decisional ◦Interpersonal◦Informational
Skills of management◦Technical◦Interpersonal◦Conceptual ◦Diagnostic◦Political
Three levels of managementThree levels of management
1. Top Level managers – senior management or executives
◦ Example: CEO, CFO
2. Middle Level managers – level below top management
◦ Example: General manager, Regional manager
3. First line managers ◦ Example: Office manager, Shift supervisor
Responsibilities of managersResponsibilities of managersTop Level Managers◦Responsibilities: setting goals for company, not
usually involved in day-to-day activitiesMiddle Level Managers◦Responsibilities: carry out goals set by upper
management, set goals for their departments, are involved in day-to-day activities
First Level Managers◦Responsibilities: daily management of line workers,
can have a very strong influence on companyAre accounting skills important in any of these levels of
management?
Managers in your final projectManagers in your final projectDo you see evidence of management at
Tim’s Coffee Shop? ◦What is the role of management?◦What kinds of management style(s) seems to
be present? ◦Do you have any ideas for Mike what kind of
manager might be good for his coffee shop? Any special skills that might be good?
So what does this have to do So what does this have to do with Accountants? with Accountants?
Do accountants manage others?What level of management are many
accountants?Do YOU want to be an accountant who
manages others? ◦Why or why not?
Unit 3 Project ScenarioUnit 3 Project ScenarioJoe’s Steel Corporation is a company that fabricates a
variety of industrial steel products. They are located in the Midwest and cater to regional construction needs. The company employs three primary managers. Joe Smith is the second generation CEO for the corporation. He has the final authority on all decisions regarding the direction of the corporation. Larry Haley maintains the position of plant supervisor. He ensures that customers receive satisfactory service and quality steel products. He is also involved in purchasing, budgeting, accounting, and personnel work. In addition, Sondra Ray manages the steel production line. She handles individual employee work assignments and performance as well as monitoring safety requirements.
Unit 3 ProjectUnit 3 ProjectThe four basic functions or principles of management
developed by Henri Fayol are planning, organizing, controlling and leading activities. These four basic management functions differ within the management chain.
Planning is the basis of the management function. It determines and outlines the goals of the organization. The planning process involves a strategy that encompasses the actual steps the company must take in order to meet the established goals. The plan should include methods for implementing each of the following steps: organizing, leading, and controlling. Managers must organize their departments in an effort to define the roles and responsibilities of the workers. They must be prepared to revise those roles and assignment of tasks as the organization experiences growth or industry change.
Unit 3 Project (cont’d)Unit 3 Project (cont’d)Managers are challenged to lead their firm’s
team. There are many skills a successful manager must possess. Two of the main responsibilities include motivating employees and delegating responsibilities to employees. Successful managers encourage their folks to work to the best of their ability and give 110%. They also assign or delegate work that will ultimately help meet the established goals of the organization. Finally, the manager is required to track the progress of the organization. Controlling is the culmination of all the prior steps making certain the plans, organization and leadership are put into practice and that they work accurately.
Unit 3 AssignmentUnit 3 AssignmentPROJECT:In a 2 to 3 page paper identify one of the levels of management
and the manager at that level referenced above and discuss how planning, organizing, leading and controlling could be specifically related to that level of management. In your paper, be sure to define each function of management.
1. Identify one of the three levels of management : Strategic (Top), Middle or first line (operational) manager
2. Identify the employee at the corresponding level of management
3. Specify how the four management functions are related to that management level
4. Define each function of managers
Unit 3 AssignmentUnit 3 AssignmentDISCUSSION BOARD: We are examining the four functions of management:
planning, controlling, organizing and leading. Managers will need special skills to be able to carry out these functions. What skills do managers need? Can you give some example of how those skills would be used to carry out those functions?
Review requirements on the syllabus or in the course announcements how to earn maximum points on DB questions ◦ Initial response at least 100+ words, posted by Saturday
◦ Respond to AT LEAST 2 of your classmates or me (total of 3 posts on 3 DIFFERENT days)
Unit 3 AssignmentUnit 3 Assignment
Project ◦Submit to dropbox
Discussion ◦See “Discussion” under Unit 3 tab
Due date: Tuesday of Week 3