Theo Heimann — three meanings of management:

Definitions worth remembering

• Henri Fayol: to forecast, plan, organise, command, coordinate and control activities of others.
• F.W. Taylor: knowing what is to be done and seeing that it is done in the best possible manner.
• Mary Parker Follett: the art of getting things done through people.
• Harold Koontz: getting things done through and with people in formally organised groups.
• Robert Kreitner: working with and through others to achieve organisational objectives in a changing environment, using limited resources efficiently and effectively.
• Peter Drucker: a multi-purpose organ that manages business, managers, workers and work.

Core functions — POSDC:

• Planning: decide in advance what, how, where, when, who and how results will be evaluated.
• Organising: identify and group activities; establish superior-subordinate, authority and responsibility relationships.
• Staffing: put the right person in the right place.
• Directing: guide activities towards common goals through communication, leadership and motivation.
• Controlling: compare actual outcomes with plans, identify deviations and take corrective action.

Features of management 10 quick points

Importance of management

• Achieves enterprise objectives.
• Optimum use of human and physical resources; reduces wastage.
• Reduces cost and supports profit / future growth.
• Establishes a sound organisation and right people in right positions.
• Supports change and growth; the notes mention SWOT analysis.
• Encourages innovation and new ideas.
• Creates social benefits through higher production, efficient use of scarce resources and improved living standards.

Three levels of management

Management vs Administration — as presented in the notes

Source: BS501 Module 1 PDF, pp. 2–11. The diagram on p. 3 shows decision-making over human, physical and capital resources; the p. 5 function diagram shows the management cycle.

1) Planning

Deciding in advance what, how, when and by whom work is to be done. It bridges the gap between where the organisation is and where it wants to go. It is future-oriented, continuous and the first / most basic function.

Why planning matters (8):

1. Increases efficiency — optimum resource use, less waste / duplication.
2. Reduces business risks — forecasts risks and prepares for uncertainty.
3. Provides direction — clarifies what, how and when.
4. Encourages creativity and innovation.
5. Helps motivation through financial and non-financial incentives.
6. Facilitates decision-making by evaluating alternatives.
7. Helps achieve objectives and prevents trial-and-error confusion.
8. Provides the basis of control — plans set the standards later used to measure performance.

Seven steps in the planning process Learn in order

1. Establish verifiable goals / objectives.
2. Establish planning premises — assumptions and future information such as population, economy, costs and government controls.
3. Decide the planning period.
4. Find alternative courses of action.
5. Evaluate alternatives and select the best.
6. Implement the plan and communicate it.
7. Measure and control progress; take remedial action or revise unrealistic plans.

Types of plans (7)

2) Organising

Division and grouping of work, assignment of duties, delegation of authority / responsibility and establishment of relationships so people work together effectively. The notes call it the backbone of management.

Importance: efficient management; coordination and communication; growth / diversification; optimum resource use; adoption of technological innovation; specialisation.

Four steps:

Organisation structure: shows who reports to whom and authority-responsibility relationships.

3) Staffing

Filling and maintaining organisational positions with the right people. Koontz and O'Donnell's definition in the PDF emphasises effective selection, appraisal and development of personnel.

Nine-step staffing process:

1. Manpower planning — estimate future demand; analyse jobs and prepare job descriptions / specifications.
2. Recruitment — identify sources and attract applicants. Positive process
3. Selection — screen / eliminate unsuitable applicants and choose suitable people. Negative process
4. Placement — put the selected person in a suitable job.
5. Induction / orientation — familiarise the new employee with workplace, rules and surroundings.
6. Training and development — training improves job knowledge / skills for a definite purpose; development supports broader, continuous growth.
7. Performance appraisal — formally evaluate performance and contribution.
8. Promotion and transfers — move to higher responsibility / pay, or shift job / department.
9. Compensation — wages, salary and other rewards to attract and retain talent.

4) Directing

Interpersonal / action phase of management. It initiates organised action by issuing instructions, guiding, supervising and motivating employees. Planning, organising and staffing prepare; directing makes the work start.

Four elements: Supervision (oversee and guide work), Communication (two-way information exchange; complete when feedback / response occurs), Leadership (influence and guide), Motivation (inspire willingness to work toward goals).

Importance of directing (9): initiates action; creates a sound work environment; develops managers; supports behavioural satisfaction; increases productivity; achieves coordination; facilitates control; facilitates change; facilitates growth.

5) Controlling

Ensures actual performance moves towards expected performance by measuring accomplishments against standards and correcting deviations. It supports coordination and planning.

Four-step control process:

• Standards may be quantitative (cost, output, time, profit) or qualitative (manager performance, attitudes, motivation).
• Compare actual results with standards; find extent and cause of deviations. The PDF mentions control by exception — focus on critical deviations.
• Corrective action may include replanning standards, reassigning duties or training workers.

Source: BS501 Module 2 PDF, pp. 2–16. Diagrams on pp. 8–9 show divisional and functional structures; p. 16 presents the control sequence.

Early contributors (pre-scientific roots)

Classical approach — three branches

Taylor — five principles / elements highlighted in the PDF

1. Separate planning from doing; planning is assigned to specialists.
2. Functional foremanship — eight specialist bosses: four planning clerks (route, instruction card, time and cost, disciplinarian) and four operating supervisors (speed boss, inspector, maintenance foreman, gang boss).
3. Scientific work-study: method / time study, standardised tools and equipment, improved working conditions, scientific selection, placement and training.
4. Bilateral mental revolution — change in attitudes of both workers and management.
5. Financial incentives — differential piece-rate system.

Fayol's five managerial functions

Fayol's 14 principles — recognise the phrase

Neo-classical approach — put people in the picture

• Human relations: organisation is a social system; human factor is vital. Decentralisation, participation and self-motivation are emphasised.
• Elton Mayo: associated with the Hawthorne experiments and called the father of the Human Relations School in the PDF. Focus: informal groups, relationships, communication and informal leadership.
• Hawthorne themes: social system, social environment, informal organisation, group dynamics, informal leader and non-economic rewards.
• Behavioural science: personality, attitudes, values, motivation, group behaviour, leadership, communication and conflict.
• Mary Parker Follett: group relationships and “getting things done through people”.
• Douglas McGregor: Theory X assumes people avoid work and need close supervision / coercion; Theory Y assumes people can be self-motivated and exercise self-control under suitable conditions.

Modern approaches

Also listed in the PDF: modern management includes social system, decision theory, quantitative, systems and contingency schools. The introductory section also names chaos theory; these receive less detailed treatment than the approaches above in the uploaded notes.

Source: BS501 Module 1(1) PDF, pp. 2–13. The p. 3 diagram shows the four eras; p. 5 shows the three classical branches; p. 12 illustrates input → process → output with feedback.

Definitions and basic concepts

• George R. Terry: activity of influencing people to strive willingly for group objectives.
• Koontz & Weihrich: influencing people so they strive willingly and enthusiastically towards group goals.
• Formal leadership: based on an assigned position in the organisation.
• Informal leadership: emerges when a person gains acceptance and influence in a group without formal appointment.
• Born or made? The PDF's conclusion is both. Experience, hardship, opportunity, education, role models and mentors help shape leaders.

Three competencies — D-A-C

Management vs leadership

Three common leadership styles

Major leadership theories Traits = qualities · Behaviour = actions · Contingency = situation

• Trait theory: looks for personal qualities associated with leaders. Great Man Theory suggests leaders are born with leadership traits. Edwin Ghiselli's six traits: need for achievement, intelligence, decisiveness, self-confidence, initiative and supervisory ability. Limitation: no universal set of traits reliably predicts leadership success in all situations.
• Behavioural theory: studies what leaders do. Ohio State: initiating structure (task direction) and consideration (respect, trust and attention to people). LBDQ measures observed behaviour; the two dimensions are separate.
• Michigan studies: employee-oriented leaders emphasise relationships and individual needs; production-oriented leaders emphasise production and technical aspects.

Rensis Likert — four management systems

Leadership Grid — concern for production (horizontal) × concern for people (vertical)

Contingency / situational theories

The leadership process combines leader, follower and situation. Effective leaders diagnose the situation, flex their behaviour and apply an appropriate style.

Fiedler's Contingency Model

• Effective group performance depends on matching the leader's style with situational favourableness.
• LPC questionnaire (Least Preferred Coworker): high LPC = relationship-oriented; low LPC = task-oriented.
• Three situational factors: leader-member relations (trust / acceptance), task structure (how clearly defined the task is), and position power (formal authority).
• Most favourable situation: good relations + highly structured task + strong position power. Least favourable: poor relations + unstructured task + weak position power.
• Relationship-oriented / high-LPC leaders are more effective at intermediate favourability; task-oriented / low-LPC leaders are effective at highly favourable and highly unfavourable situations, according to the PDF.
• The notes mention that tests of the model have produced mixed or contradictory findings.

Path-Goal Theory — Robert House (1971)

Rooted in expectancy theory: Expectancy = belief that good performance leads to outcomes; Valence = how much the person values those outcomes. The leader clarifies the path, removes barriers and supplies guidance / support so task completion leads to valued outcomes.

Factors affecting style: follower characteristics (locus of control, perceived ability, experience, need for achievement, need for clarity) and environmental factors (employee task, authority system, work group). Internal locus tends to favour participative leadership; external locus may favour directive. High need for clarity tends to favour directive.

Source: Module 6 BS501 PDF, pp. 2–16. The p. 9 grid depicts the five concern-for-people / concern-for-production styles; p. 11–13 diagrams support Fiedler and Path-Goal theory.