Cleverpens

Fatywines Cleverpen Reveiw Notes By: Fatima W.J. Jayme, LPT, MBA, EdD.

The Beginnings:

Ancient cultures: The pyramids of Egypt and the Great Wall of China necessitated extensive labor, requiring the need to organize, coordinate, and later oversee.

Around 400 BCE, the Greeks, like Socrates, distinguished between managerial and technical skills.
To manage their legions and vast infrastructure projects, the Romans built a defined framework of authority and accountability.

Sun Tzu, a Chinese general from the sixth century BCE, defined management strategy and organization in his book The Art of War.

Management needed to change when agriculture and home production gave way to factories in the 18th and 19th centuries. To maximize output, business owners and managers had to organize big groups of people with repetitive duties. This produced classical management philosophies.

In the early twentieth century, three separate schools of thought evolved, which served as the foundation for modern management.

1. Scientific management (Frederick Winslow Taylor, known as the “father of scientific management” aimed to increase industrial efficiency via scientific analysis of work processes. His key beliefs are: Replace traditional, intuitive labor methods with scientific task analysis to determine the “one optimal approach” to complete a job.

2. Scientific selection and training: Hire the best individual for the job and provide systematic training to improve abilities.

3. Cooperation above individualism: Ensure that management and employees work together to complete tasks harmoniously.

Fayol worked on the organization’s general structure from the top down. He recognized five key management functions as well as 14 management principles: 

• Functions include planning, organizing, commanding, coordinating, and controlling.

• Principles: Included fundamental concepts such as job division, unity of command (one employee, one boss), and authority with matching accountability.

The Principles of Management by Henry Fayol

1. Division of work: Specializing tasks for different individuals and departments can increase output quality and efficiency. By focusing on specific tasks, employees develop more expertise and skill.
2. Authority and responsibility: Managers must have the authority to give orders, but they must also be held accountable for achieving results. Authority and responsibility must be balanced; excessive authority without accountability can lead to abuse of power.
3. Discipline: All members of an organization must respect and adhere to the rules and regulations. This fosters mutual respect and is a prerequisite for any business to run smoothly.
4. Subordination: Prioritize organizational goals over individual or group interests. Management must harmonize these interests so that everyone works toward a common goal.
5. Unity of command: To avoid confusion and conflicting instructions, every employee should receive orders from only one superior.
6. Unity of direction: One goal, one aim. It includes coordination and direction through communication. It ensures coordination and directs all efforts towards a shared goal.
7. Remuneration: an appropriate and fair compensation package for both owners and personnel of the company. Fair compensation encourages employees, fosters loyalty, and boosts morale.
8. Centralization refers to the concentration of decision-making at the highest level. The appropriate balance of centralization and decentralization is determined by the unique organization, its size, and the nature of the job.
9. Scalar chain: Establish a formal line of authority and communication from top to bottom in the organization. Fayol acknowledged that in certain situations (a “gangplank”), circumventing the hierarchy for expedited communication is acceptable.
10. Organization: Organizing people and materials is crucial for productivity. The concept, “a place for everything and everything in its place,” refers to both the physical workplace and people placement.
11. Equity: Managers should be fair and impartial in their treatment of all employees, combining “kindliness and justice.” This builds loyalty and devotion among employees.
12. Personnel stability: High employee turnover is inefficient and costly. Management should seek to retain effective personnel by offering job stability and advancement opportunities.
13. Initiative:  Encouraging employees at all levels to take the initiative and develop their own ideas is a source of organizational strength. It promotes staff involvement and innovation.
14. Esprit de corps: This French phrase refers to “team spirit.” Managers aim to foster a sense of togetherness, teamwork, and harmony among employees to create a cohesive and productive work environment.

Max Weber, a German sociologist, believed bureaucracy was the ideal organizational system. His primary ideas are: (a) Organizations should develop a clear hierarchy of authority. (b) Formalities and procedures guarantee consistency; all actions should follow established protocols. Impersonal relations define authority as based on position, not personal relationships, assuring fair treatment of employees.

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Essential Functions of Management

FUNCTION	DEFINITION	KEY ACTIVITIES	PURPOSE	AIM
Planning	It is the process of defining organizational goals and the steps or strategies needed to accomplish them.	Goal setting.   Forecasting the future and   Deciding the best path of action.	To determine an organization’s future course of action. This is the foundational step that all other management functions depend on.	Outlining specific actions needed to reach objectives.   Anticipate potential challenges.
Organizing	Structuring tasks, resources, and responsibilities to achieve organizational objectives effectively.	Dividing work into departments.   Delegating authority and   Coordinating various functions.	To create a structure that transforms the plan into an actionable framework. It involves establishing an internal organizational structure and arranging resources to carry out the plan.	Departmentalizing activities and resources into departments.   Assigning duties. Delegating authority and responsibilities to individuals   Allocating and securing physical, financial, and material resources needed.
Staffing	Acquiring, training, and developing human resources to fill specific positions within the organization.	Recruitment.   Selection.   Development and placement of human resources within the organizational structure.	To fill and maintain positions within the organizational structure with qualified people. This is also known as the human resource function.	Recruitment and selection of personnel.   Training and Development:  enhancing employees’ skills and capabilities.   Performance appraisal:  evaluating employees’ performance against defined standards.
Directing	The act of guiding, supervising, and influencing subordinates to perform their duties and work towards the organizational goals.	Motivating employees. Providing instructions.   Communicating clearly and overseeing their tasks.	To influence, guide, and motivate employees to work efficiently toward achieving the organization’s goals. This is often called the “people” function of management.	Guide, lead, and provide clear instructions to personnel.   Communication: create a two-way flow of information within the organization.   Supervise: oversee the work of personnel to ensure tasks are completed correctly.
Controlling	The process of measuring and evaluating the performance of the organization against established standards and taking corrective actions to bridge any gaps.	Monitoring performance.   Identifying deviations from plans.   Implementing necessary adjustments to ensure objectives are met.	To monitor progress, measure performance, and ensure activities are aligned with the initial plan. It is a feedback loop that helps identify deviations and take corrective actions.	Establish standards:  Set performance benchmarks.   Measure performance: comparing actual results with established standards   Take corrective action: Make necessary adjustments to get performance back on track.

Managerial Planning Process: Overview

           The planning process involves setting objectives, determining tasks and resources, creating a timeline, establishing tracking and assessment methods, finalizing the plan, and distributing it to stakeholders. It’s a cyclical, futuristic, and decision-making process that prepares for future events by anticipating needs. The planning process involves making choices and mitigating potential challenges to achieve goals effectively.

             The planning process is a systematic approach to setting goals, outlining the necessary steps to achieve them, and coordinating the resources needed to succeed. It is a foundational management function used by both organizations and individuals to turn ideas into action.

 Steps of the Planning Process

 1.     Develop and set objectives: This first step involves defining clear goals and desired outcomes for a specific period. Ensure that the objectives are SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).

2.     Analyze and identify scenarios:  Before creating a plan, understand the current environment. This often involves a SWOT analysis to identify internal strengths and weaknesses, as well as external opportunities and threats. Break down the objectives into specific tasks required to achieve them.

3.     Establish planning premises and determine resources:  These are the assumptions you make about the future, such as market trends, competitor behavior, or government policies. Since the future is uncertain, these premises provide the framework within which the plan will operate. Example: Identify the necessary resources, such as time, people, and materials, to complete the tasks.

4.     Identify alternative courses of action and create a timeline: Brainstorm the various ways to achieve goals and objectives. Weigh the pros and cons of each alternative, considering factors like cost, risk, and potential returns.  A thorough evaluation helps you choose the best path forward. Example:   Establish a schedule and create milestones for when tasks should be completed.

5.     Evaluate and select the best alternative to develop tracking and assessment methods:  After evaluating all options, choose the course of action that offers the highest probability of success with the fewest negative consequences. Decide how progress will be monitored and evaluated to ensure the plan stays on track.

6.     Formulate supporting plans before finalizing one plan: Develop smaller, secondary, or derivative plans to support the primary plan. These include the budgets, schedules, and specific policies or procedures needed to implement the main plan. Consolidate all the elements into a comprehensive and cohesive plan.  A manager’s judgement and experiences play a key role in this decision.

7.     Implement the plan. Put the plan into action by communicating it clearly to all involved and allocating the necessary resources, such as finances, personnel, and equipment. Please distribute the finalized plan to all relevant individuals and teams involved in its execution.

8. Monitor and follow up: The final step involves continuously tracking the progress of the plan.  Ensuring the achievement of objectives requires regular checks and comparisons of actual results against the planned standards.  This ongoing evaluation allows for adjustments and corrective action if necessary.

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Summary of HIERARCHY in MANAGEMENT

HIERARCHY	TOP MANAGEMENT	MIDDLE MANAGEMENT	BOTTOM MANAGEMENT
Characteristics	The highest level of leadership.   Responsible for the overall direction and long-term strategy of the organization.	Serves as the intermediary between top and lower management.   Responsible for implementing strategies and overseeing departments.	The first level of management that directly supervises frontline employees.
Key responsibilities	Broad, long-term strategic planning	Medium-term implementation of strategies and department-specific goals.	Daily operational tasks and efficient task completion
Examples of positions	Chief Executive Officer (CEO) Chief Operating Officer (COO) Owners of the company.	Department heads, regional directors, and branch managers.	Supervisors, first-line managers.
Focus	Making major decisions for the company as a whole.   Guide the entire organization’s strategic vision to goals.	Translate top-level strategies into specific, actionable plans for their departments.   Manage and coordinate lower-level managers and employees.   Serve as a liaison communicating between different levels of the organization.	Directly overseeing employees and delegating tasks.   Ensures that daily operations, processes, and projects are executed efficiently.   Focusing on the short-term execution of the task.

Characteristics of procedural planning

STEPS	Description and Nature
Goal oriented	Planning focuses on achieving specific objectives
Cyclical	It’s a continuous process, with outcomes often leading to new planning cycles
Futuristics	It involves foresight, anticipating future events and circumstances to prepare for them.
Decision-making	Planning requires analyzing alternatives and selecting the best courses of action to meet objectives.
Pervasive	It is essential at all levels of an organization, from top management to individual departments.

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IMPORTANCE OF MANAGERIAL PLANNING

1. Provides direction:  a well-defined plan gives clear guidance to employees and stakeholders, aligning their efforts toward a common goal and reducing aimless activity.
2. Minimize risk and uncertainty:  By forecasting the future and anticipating potential challenges, a plan allows you to prepare for unexpected changes and minimize their negative impact on the organization.
3. Reduces wasteful activities:  planning helps coordinate the efforts of different departments, preventing duplication of work and ensuring that resources are used efficiently. This clarity and coordination boost productivity and reduce waste.
4. Encourage innovation:  the process of thinking ahead and exploring alternatives promotes creative problem-solving and the development of innovative ideas for business growth.
5. Set standards for control:  The objectives and timelines established during planning =serve as benchmarks for evaluating performance. Without these standards, it would be challenging to measure progress and take corrective action.

Hierarchy and Types of Plans

Level	Strategic plans Handles strategic, long-term decisions.	Tactical plans Translates strategy into specific plans	Operational plans Supervises day-to-day operations
Primary focus	Strategic planning and external environment	Executing plans and coordinating departments	Day-to-day operations and employee overseeing.
Rank	Known as senior or executive management	This level serves as a crucial link between top and bottom management.  Middle managers report to top managers and supervise the bottom management.	An entry-level management tier that is in direct contact with the operational workforce.
Time-horizon	Focuses on the long-term vision, mission, and sustainability of the entire organization.   Long-term (5 – 20 years)	Focuses on tactical and operational planning to implement the strategies set by top management over a medium-term plan. Medium-term (2 – 5 years)	Concentrates on short-term, day-to-day operations and task execution.   Short-term (daily/weekly)
Scope of authority	Organization-wide and at the highest level	Department or branch specific	Limited to specific tasks and teams
Accountability	Possesses the highest level of authority and is ultimately accountable to shareholders and the public for the organization’s overall performance.	Manages their specific department or branch and is responsible for its function and performance. Authority is limited to their particular area of the organization.	It has the least authority within the management structure. They oversee and direct the work of non-managerial employees
Key responsibilities	Strategic planning:  sets organizational objectives and formulates broad policies.	Implements the organizational goals and policies formulated by top management	Acts as a liaison between the workers and middle management, communicating employee problems and suggestions up the chain of command.
Decision-making	Makes major decisions that affect the entire company, such as mergers, acquisitions, and new product launches.	Implements the organizational goals and policies formulated by top management	Provides training, guidance, and instructions for day-to-day activities
Role	Acts as the public face of the organization and builds relationships with stakeholders, investors, and government agencies.   Visionary leader and decision-maker	Relays and interprets information between the top management and the department staff.   Bridge between top and lower-level management	Focuses on motivating and supporting employees to meet performance targets.   Frontline manager and operational expert
Key skills	Strategic thinking, financial acumen, and leadership	Planning, problem solving, communication, and delegation	Technical skills, team motivation, and organization.
Chain of command	Reports to the board of directors or shareholders.	Reports to top management	Reports to middle management
Financial oversight	Determines budget allocations and oversees financial health	Evaluates the performance of junior managers and department staff.	Overseeing daily sales performance and overall operations of a branch or a team.
Examples	CEO, COO and Board of directors, and president	Regional manager, department head, and supervisor	Team leaders, forepersons, branch managers, plant managers, and office managers.

Write-up in progress; stay tuned!

Fatima W.Q. Jayme, LPT, MBA, EdD.