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Mgmt 1001 Study Notes - Organisations and Management

By:   •  August 19, 2018  •  Course Note  •  11,339 Words (46 Pages)  •  934 Views

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MGMT1001 Study Notes

TOPICS 1 AND 2: Organisations and Management



  • Social entities that are:
  • Goal-directed
  • Designed as deliberately structures & coordinated activity systems
  • Linked to the external environment.


  • Purpose, objective, goals
  • Structure, rules & boundaries
  • People
  • Action designed to achieve the goals.


  • Future oriented
  • Part of an open system.


  • Independently of the people within them – they ‘go on’ while members change.
  • It is an open system that cannot ignore its relevance to internal/external stakeholders.


  • Size
  • Small (<20)
  • Medium (20-199)
  • Large (>200)
  • Industry (e.g. telecomm, mining, finance)
  • Ownership type (e.g. sole trader, company, not-for-profit)
  • Owner domicile (e.g. local biz, Aus, Multi-national)
  • Location (e.g. city, suburban, regional)
  • Physical environment (e.g. open plan, personal office)
  • Remuneration & benefits (yearly bonus, share options, employee discount, other benefits).

Context of Organisations and Management Today

  • Technological change – new products, new ways of doing things, outsourcing and off-shoring.
  • International division of labour
  • Changing conception of time and space
  • Changing demographics.

Manager: someone who coordinates and oversees the work of other people so that organizational goals can be accomplished

  • First-line managers: lowest level  non-managerial employees  directly involved with the production or creation of the organization’s products eg. Supervisors
  • Middle managers: btwn 1st line and top level of organisations  regional manager, department head, project leader, store manager
  • Top managers: who are responsible for making organization-wide decisions and establishing the goals and plans that affect the entire organization eg. Managing director, chief executive officer, chairman of the board

Aims of management:

1. Efficiency: doing things right  getting most output from the least amount of inputs (means)

2. Effectiveness: doing the right things, or completing activities so that organizational goals are attained (ends)

Management functions:

Principles – Henri Fayol (1841-1925)

  • Fayol developed 14 principles he believed were essential to increasing efficiency in mgmt. process.
  • Also well-known for articulating the 5 (now 4) managerial functions (what managers must do to create a high-performing organisation)
  • Planning: choosing appropriate goals for the org.
  • Organising: designing processes & systems to achieve those goals
  • Command/leading: selecting the right employees for the job, evaluating work performance, motivating individual employees etc.
  • Coordinating: putting together relos/work teams to ensure that production runs smoothly.

Controlling: measuring & monitoring to evaluate how the system is working

Management roles: specific categories of managerial behavior expected of and exhibited by a manager

Mintzberg’s managerial roles – what they actually do:

  • Decisional
  • Entreprenuer
  • Disturbance handler
  • Resource allocator
  • Negotiator.
  • Informational
  • Monitor  seeks and receives internal and external info to develop understanding of organization (reports)
  • Disseminator  transmits info received from outsiders or from subordinates to members of the organization (holding informational meetings)
  • Spokesperson  transmits info to outsiders on organization’s plans (holding board meetings, info to media)
  • Interpersonal
  • Figurehead  routine duties of a legal or social nature (greeting ppl, signing documents)
  • Leader  motivation of subordinates
  • Liaison  maintains self developed network of outside contacts and informers who provide favours and info (mail)

Managing is about influencing action

Management skills: Robert Katz

  1. Technical skills – knowledge and proficiency in a certain specialized field
  2. Human skills – interpersonal. Ability to work well with other people individually or in a group
  3. Conceptual skills – ability to think and conceptualize about abstract and complex situations

Demands on Modern Managers

  • Required to work ‘smarter and harder’ – increased working hrs, doing more with less staff/resources, globalisation of biz environment.
  • Pressures of conflicting demands – delivering ‘shareholder value’ while being ethically and environmentally responsible/ sustainability (integrating environmental and social opportunities to achieve biz goals)
  • Empowerment efforts of 1990s  increased demands for flexibility ‘work life balance’ and ‘learning opportunities’ by staff.
  • Importance of social media to the job
  • Importance of innovation to the manager’s job

Evolution of management theory

  • Importance came about due to division of labour/ job specialization and Industrial Revolution
  • Rise of factory system of production
  • Growth in no. of employees
  • Increasing use of technology in production
  • Rise of ‘corporation’ meaning owners did not necessarily work in the org.
  • Key features/developments
  • Specialization of labour & the ‘production line’
  • Systematic study of work tasks to create rules or ‘one best way’ of performing each task.
  1. Classical approach  first studies of management which emphasized rationality and making organisations and workers as efficient as possible

Frederick W. Taylor (1856-1915) – 4 Principles of Scientific Management

  1. Develop a science for each element of the job, which replaces the old ‘rule of thumb’ method.
  2. Managers should scientifically select, train, teach & develop workers.
  3. Managers should actively cooperate with workers to ensure all work is completed in accordance with principles of the science developed.
  4. An almost equal division of work & responsibility should be between mgmt. & workers.

Frank & Lillian Gilbreth – Time & Motion Studies

  • Used film & stop watches to determine new ‘quicker’ ways to produce tasks.

  1. General administrative theory  focuses on describing what managers do and what constituted good management practice

Henry Ford – Production Line

  • Took idea of production line from abattoirs – where carcasses were moved through factory on chain/pulley systems, then introduced it into his car manufacturing plants.

Innovations in Administrative Management  

Bureaucracy – Max Weber (1864-1920)

  • Specialisation of labour
  • Formal rules & procedures
  • Impersonality
  • Well-defined hierarchy
  • Career advancement based on merit

  1. Quantitative approach  use of quantitative techniques to improve decision making eg. Modern day budgeting

  1. Organisational behavior approach  
  • Developed in response to Scientific mgmt. approaches.
  • Focuses on motivation & behaviour as a mechanism to improve organisational performance.
  • Includes:
  • Hawthorne Studies of the 1920s: workers increase productivity when they know they’re being watched
  • Maslow’s Hierarchy of Needs: once basic needs are met, people will look for ego status role
  • McGregor’s Theory X & Theory Y.

McGregor’s Theory X & Theory Y

Theory X

  •  employee is lazy, dislikes work & will try to do as little as possible.
  • Managers must closely supervise employees for them to work hard.
  • Managers should be strict & implement well-defined system of rewards & punishment to control employees.

Theory Y

  • Employees are not inherently lazy – they will do what’s good for the org.
  • Managers must create work setting that provides opportunities for workers to exercise initiative & self-direction.
  • Managers should decentralise authority & make sure they have the resources necessary to achieve org. goals.

  1. Contemporary approaches
  • Systems theory: actions taken in one organizational area will affect others   are not self-contained and rely on environments for essential inputs
  • Contingency theory: organizations are diff and face diff situations that require diff ways of managing ie. Organizational size (increase size = increase problems), routineness of task theory, environmental uncertainty, individual differences

21st Century Understandings of Management

  • Globalisation!
  • Ethics
  • Workforce diversity
  • Entrepreneurship
  • Learning organisations: developed capacity to learn, adapt and change continuously
  • knowledge management: org members systematically gather knowledge and share it with others in the organization so as to achieve better performance
  • Sustainable management: ensure that their operations  and capital required by future generations is maintained
  • Increasing emphasis on motivation, leadership and relos.
  • Key skill is communication – both oral/verbal, but also the ability to develop & effectively communicate a vision/position to different audiences – the mgmt. of ‘meaning’.
  • Less ‘overt control’ as orgs take adv of technology e.g. swipe cards for building access, PC login, keystroke monitoring.
  • Access to covert control is extremely important.

TOPIC 3: Attitudes, perceptions and personality: Individual behavior

Individuals in Organisations

Understanding Individual Behaviour

Organisational Behaviour (OB)


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