Principles of  Management

         2016/2017

Instructor:  Ahmed Gad Abdel-Wahab 

                      Professor of Management

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 include: 

appreciating the importance of management to organizations
 and society in general, gaining insights into the evolution of  modern management theories, understanding the role of management 
in the effectiveness and efficiency of business, understanding different
 approaches to management, and 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

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

     Course Policy

Participation:  Adequate time will be devoted to discuss  
study cases in classes . When the cases are discussed, I am 
less concerned with “right” or “wrong”answers than I am with 
thoughtful contributions which follow the discussion.  

  Cheating: Cheating during exams gives me the right to
 turn your name over to the University Administration for disciplinary measures.

 Mobile phone: Unexpected noises automatically divert and capture 
people's attention, so please turn off all mobile phones during class. 

  

Course Contents

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

Chapters Outlines

Chapter 1 (Introduction to Management and Organizations) -      What Is Management? -      Who Are Managers? -      Managerial Levels -      Managerial Concerns -      Efficiency and Effectiveness In Management -      What Do Managers Do? -      What Are Organizations? -      Why Study Management?

Chapter 2 (Management Yesterday) -      Ancient Management -      Adam Smith -      Industrial Revolution -      Major Approaches to Management  <Scientific Management            <General Administrative Theory < Quantitative Management < Organizational Behavior

Chapter 3 (Foundation of Planning) -      What Is Planning? -      Why Do Managers Plan? -      Planning and performance -      Elements of Planning ( Goals, Plans) -      Techniques for Assessing Environment         < environmental scanning         < benchmarking.

Chapter 4  (Organizing) -      What is organizing? -      What is an organizational structure? -      Creating an organizational structure         < Division of Labor         < Departmentalization         < The Chain of Command         < Span of Control         < Centralization and decentralization         < Formalization -      Forms of Organizational Structure -      The Contingency Approach to Organizational Structure

Chapter 5 (Leading) -      What is Leadership? -      Managers Versus Leaders -      Leadership Theories         < Trait Theory         < Behavioral Theories -      University of Iowa Studies -      University of Michigan Studies         < Contingency Approach to Leadership         < Leading by empowering employees         < Transactional leaders         < Transformational leaders

Chapter 6 (Foundation of Control) -      What is control? -      Why is control important -      The process of control         < Measuring         < Comparing         < Correcting

Chapter 7 (Decision Making) -      Decision Making -      Decision Process -      Decision Making Conditions         < Certainty         < Risk         < Uncertainty

Chapter 8 (Communication) -      What Is Communication? -      The Importance Of Communication -      Effective communication -      Cross-cultural Communication -      Telecommuting        < Driving Forces        < Resisting Forces        < Good Telecommuting Tasks and Good Telecommuters        < The Benefits of Telecommuting         < How to implement a telecommuting program in your                     organization?

Chapter 9 (Managing Workplace Ethics) -      What Is Corporate Ethics -      Corporate Ethics Program: How to Do It?        < Structure        < Code of Ethics        < Sanctions        < Communication        < Training -      Characteristics of an Effective Ethics Program:        < First, Example        < Second, Environment        < Third, Concern        < Fourth, Emotions

Chapter 10 (Managing workplace Diversity) -      The Problem of Human Equality -      Stereotyping -      What is Diversity Management? -      Why is Managing Diversity Important? -      How do you Know if a Company Values         Diversity? -      Guidelines for Fostering Diversity _____________________________________________

A Study Case on chapter 1

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 Wayheadquarters. 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 On Chapter 1

Model Answer

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

A.            Managers organize the work of other people.

B.            Managers complete important paperwork.

C.           Managers work directly on providing the product or service that the company sells.

D.           Managers have no one reporting to them.

2. Rabab 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. Rabab is considered a _____.
A.            middle manager

B.            first-line manager

C.           top manager

D.           non-managerial worker

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

A.            Efficacy; effectiveness

B.            Efficiency; economy

C.           Efficiency; effectiveness

D.           Economy; efficacy

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

A.            Organizing

B.            Serving

C.           Controlling

D.           Planning

5. The universality of management concept suggests that _____.

A.            management is needed in all types and sizes of organizations and at all organizational levels

B.            all managers play similar roles as they manage people

C.           technical, human, and conceptual skills are necessary for success in management

D.           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 managementand 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..

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

Mary Parker Follett

Is a social researcher in the early 1900’s.

She recommended that managers and workers should view themselves as partners.

In such a way, managers should rely on their expertise and knowledge to lead subordinates rather than on the formal authority of their position.

Maslow’s hierarchy of needs theory

A major element of understanding employees' behaviors at

work is to understand why people work. The  answer is that people work to satisfy their needs.

But, what are human needs?             

Physiological needs: are those needs that must be satisfied for a person to survive, including food, water, shelter,

and sleep.

Safety needs: are needs for security, stability, and ordered environment.                             

Social needs:  are needs for love and friendship.

Esteem needs: represent an individual demands to be seen

 as a person of worth by others and to himself.

Self-actualization needs: represent an individual desire to become the most that one can be. It is the need for personal development.

Maslow's theory suggests that human needs are arranged in a hierarchy,

each level refers to a group of needs.

The  theory suggests that the individual has an internal force pushing him toward the satisfaction of higher level needs (self actualization). However, before these higher level needs are achieved some lower level needs must be satisfied.When a person is satisfied at one level he looks at satisfaction at a higher level.

Herzberg’s Two Factor Model

Unlike Maslow’s model (that focuses on the internal elements which push people into action)

Herzberg’s model refers to the external elements (at work) which cause people to be satisfied or dissatisfied.

social systems	open systems
A major part of organizational success depends on the cooperation and coordination among organizational members.	A major part of organizational success depends on maintaining good relations with external institutions with home the organization regularly interacts.

The  most important contribution of Hertzberg's writings, is in pointing to some of the ideal conditions of work.

Chester Barnard

Barnard was president of New Jersey Bell Telephone Company.

Barnard saw organizations as

social systems	open systems
A major part of organizational success depends on the cooperation and coordination among organizational members.	A major part of organizational success depends on maintaining good relations with external institutions with home the organization regularly interacts.

Questions On Chapter 2

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

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

A Study Case on chapter 3

Three young businessmen who lived in Moscow 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 they need to do in order to turn their dream into reality? 

Questions on chapter 3

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

a. Trueb.False

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

5. Goals are the foundation of organizational planning.a. Trueb. False

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

9. An integrated hierarchy of goals is sometimes called a means-end chain.a. Trueb. False10. In a typical MBO program, successful achievement of objectives is reinforced by performance-based rewardsa. Trueb. False

11. Planning reduces uncertainty regarding current events, but often leaves managers unable to anticipate change and develop appropriate responses to future events.a. Trueb. 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 aboved. 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 towardc. establishes the basis for all the other functionsd. sets the tone for the organizational culture

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

a. breadthb. specificitya. frequency of use
c. depth

5. Directional plans do which of the following?

a. have clearly defined objectivesb. identify general guidelinesc. meet the needs of a unique situation
d. last for 3–5 years

6. Goals are objectives, __________.

a. and we use the two terms interchangeablyb. 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 stakeholdersd. seek to position the organization in terms of its environment

8. Specific plans are clearly defined and ____________.

a. allow managers to their interpretation for flexibilityb. leave no room for interpretationc. 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 accomplishedb. jointly determined by employees and their managersc. 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 outcomesb. written in terms of outcomes rather than actionsc. 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 everyoned. both a and c

13. Formal planning involves which of the following aspects?

a. general objectives
b. planning for up to one yearc. 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

________________________________________

Questions on chapter 4

T/F

1. Grouping jobs on the basis of product flow is termed customer departmentalization. 

a. True

b. False 

2. When decisions tend to be made at lower levels in an organization, the organization is said to be decentralized  

a. True

b. False  

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. 

a. True

b. False  

4. An organic organization would likely be very flexible.

a. True

b. False  

5. Chain of command, span of control, and centralization are all necessary elements of departmentalization. 

a. True

b. False  

6. Process departmentalization helps managers better monitor customers' needs and respond to changes in those needs. 

a. True

b. False 

7. The obligation of employees to perform duties assigned to them by managers is known as the chain of command. 

a. True

b. False

8. The wider the span of control, the more efficient the organizational design. 

a. True

b. False 

M.C.Q

9. 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

10. 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  

11.  The degree to which jobs are standardized and guided by rules and procedures is called ______________.

a. work specialization

b. centralization

c. decentralization

d. formalization

12. 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

13. A(n) ____________ organization is able to change rapidly as needs require.

a. organic

b. horizontal

c. vertical

d. mechanistic

14. When managers standardize employee behavior through rules and procedures, the jobs are becoming more _____________ .

a. diversified

b. formalized

c. vertical

d. horizontal

15. 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

16. Structure is related to the size of the organization, such that larger organizations are more _____________.

a. mechanistic

b. organic

c. structurally weak

d. decentralized

17. 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

18. Which type of environment is best suited for mechanistic organizations?

a. dynamic

b. manufacturing

c. service

d. stable

19. 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

20. Organizational structure 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

21. On what basis are jobs grouped in order to accomplish organizational goals?

a. departmentalization

b. centralization

c. formalization

d. coordination

22. Functional departmentalization groups workers by ______________.

a. tasks they perform

b. territories they serve

c. products or services they manufacture or produce

d. type of customer they serve

23. Departmentalization based on _______________ groups’ jobs based on the territory or physical location.

a. functional

b. product

c. geographic

d. matrix