Mescon basics of online management. Read the entire book "Fundamentals of Management" online - Michael Albert - MyBook. Michael H. Mescon, Michael Albert, Franklin Hedowry Management Fundamentals

Year of issue: 1997

Genre: Management

Publisher:"A business"

Format: Doc

Quality: OCR

Number of pages: 488

Description: The textbook "Fundamentals of Management" can make its contribution to the formation of new management thinking and the development of new knowledge that we need today. Some of its provisions will be unknown to many, especially if we take into account our poor understanding of the essence of the market and competition, poor education in the field of sociology and psychology. Others, for example, those associated with modern methods of substantiating decisions, from the standpoint of our managerial knowledge, will be perceived even as somewhat primitive. Still others, for example, the problems of forming organizational management structures, will seem familiar from previous domestic and translated foreign publications. However, after reading the book "Fundamentals of Management", we will comprehend in a new way many of the problems of entrepreneurship and management that are already facing the Soviet business executive. Everyone, apparently, will choose those questions that are more consonant with his current problems, specialty, ability to see and learn new things. However, it seems that this American textbook, written cleverly and skillfully, with great attention and respect for the reader, will not leave anyone indifferent. I would like to wish that familiarization with management thought in its modern American interpretation would become useful and interesting for you, dear reader, make you a more effective leader, encourage you to search for truths and practical approaches that help solve our problems, taking into account the searches and findings of others.
The book "Fundamentals of Management" is the result of expanding Soviet-American cooperation. The American-Soviet Trade and Economic Council (co-chaired by W. Forrester and V. Cheklin), its management training committee headed by A. F. Dobrynin (USSR) and D. Andreas (USA) rendered great assistance in the implementation of this project. Dean of the School of Business at San Francisco State University A. Cunningham and professor of this university S. Thrall were at the origins of this idea. The Soviet publishers of the book are grateful to them, as well as to everyone who worked on the translation and publication of the textbook "Fundamentals of Management". Content

ELEMENTS OF ORGANIZATIONS AND MANAGEMENT PROCESS
ORGANIZATIONS, MANAGERS AND SUCCESSFUL GOVERNANCE
What makes organizations successful?
The organization
Who are managers and what do they do?
Management for success
EVOLUTION OF MANAGEMENT THOUGHT
Ancient practice is a new science
Scheduling Approaches
Process approach
Systems approach
Situational approach
Case Study: A Changing Workforce
INTERNAL ENVIRONMENT OF THE ORGANIZATION
Internal variables
Interconnectedness of internal variables
Analysis Situation: Changes to a boring job
EXTERNAL ENVIRONMENT IN BUSINESS
Organization and its environment
Characteristics of the external environment
Direct exposure environment
Indirect impact environment
International environment
Case Study: Airline Deregulation
SOCIAL RESPONSIBILITY AND ETHICS
The role of business in society
Social responsibility in practice
Ethics and modern governance
Improving indicators of ethical behavior
Case Study: Contemporary Ethics: The E. F. Hutton Case
LINKING PROCESSES
COMMUNICATIONS
Communication process and management efficiency
Communication process
Interpersonal communication
Organizational communications
Case Study: Communications Management at McKesson Corporation
MAKING DECISIONS
The nature of the decision-making process
Rational problem solving
Other factors affecting the management decision-making process
Analysis Situation: Three Controversial Decisions
MODELS AND DECISION-MAKING METHODS
Management Science
Modeling
Decision making methods
Forecasting methods
Case Study: Predicting Stadium Visits
STRATEGIC PLANNING
Essence, functions and benefits of strategic planning
Organization goals
Assessment and analysis of the external environment
Management survey of the internal strengths and weaknesses of the organization
Exploring strategic alternatives
Situation for analysis: Strategic planning at Sears
PLANNING FOR THE IMPLEMENTATION OF THE STRATEGY
Implementation of the strategic plan
Japan
USA
Managing and monitoring the implementation of the strategic plan
Assessment of the strategic plan
Qualitative
Situation for analysis: Consistent implementation of the strategy at the firm "Toys" R "As"
ORGANIZATION OF INTERACTION AND AUTHORITY
Delegation, responsibility and authority
Linear and apparatus (staff) powers
Effective organization of the distribution of powers
Situation for analysis: Organization of the firm "Federal Express"
BUILDING ORGANIZATIONS
Choice of structure
Departmentalization
Responsive structures
Centralized and Decentralized Organizations
Case Study: Decentralizing Command of the U.S. Tactical Air Force
MOTIVATION
The meaning and evolution of the concept of motivation
Substantial theories of motivation
Procedural theories of motivation
Motivation and compensation
Situation for analysis: club 100
CONTROL
The essence and meaning of control
Control process
Behavioral aspects of control
Effective control characteristics
Information management systems in planning and control
Situation for Analysis: Control at General Electric Credit Corporation
GROUP DYNAMICS AND LEADERSHIP
GROUP DYNAMICS
Groups and their importance
The development of informal organizations and their characteristics
Informal organization management
How to improve the effectiveness of groups
Case Study: Workers' Participation in Governance
LEADERSHIP: POWER AND PERSONAL INFLUENCE
Power, influence, leader
Forms of power and influence
Persuasion and participation
Practical use of influence
Case Study: The Use of Power in the Computer Industry
LEADERSHIP: STYLE, SITUATION AND EFFICIENCY
Review of leadership theories
A Behavioral Approach to Leadership
Style, satisfaction and performance
Situational Approaches to Effective Leadership
Responsive leadership. concluding remarks
Situation for Analysis: Victor Kiam and the Remington Electric Shaver
MANAGING CONFLICTS, CHANGE AND STRESS
The nature of organizational conflict
Conflict management
The nature of organizational dimensions
Change management
Organizational development
The nature of stress
Stressful lifestyle
Case Study: Changes at the Bank of America
ENSURING THE EFFICIENCY OF THE ORGANIZATION'S ACTIVITIES
MANAGEMENT OF LABOR RESOURCES
Formation of labor resources
Workforce development
Improving the quality of working life
Situation for analysis: Human resources management in the face of a decrease in the number of employees
PRODUCTION CONTROL: CREATING THE OPERATING SYSTEM
Systematic approach to operations management
Ethical issues in production management
Design of products and processes in production
Service product and process design
Production facilities, location, design solutions
Work design and labor rationing
Case Study: Operations Management Strategy
PRODUCTION CONTROL: OPERATING SYSTEM FUNCTIONING

Product planning
Inventory Management
Operational production management
Project management
Project management techniques
Quality assurance
Analysis situation: Serious error
PRODUCTIVITY MANAGEMENT: AN INTEGRATED APPROACH
An integrated approach to performance issues
Performance Management
Communication, decision making and leadership for productivity
New in labor productivity management
Case Study: Performance Management in a Consumer Products Company
LITERATURE

Management Basics Franklin Headry, Michael Albert, Michael Mescon

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Title: Fundamentals of Management
By Franklin Hedowry, Michael Albert, Michael Mescon
Year: 1988
Genre: Foreign business literature, Management and personnel

About the book "Fundamentals of Management" Franklin Hedowry, Michael Albert, Michael Mescon

Fundamentals of Management is one of the most popular management textbooks, recognized and widely used around the world. It sets out in detail and in the most accessible way the basics of management as a science and the basic principles and concepts of management. The book describes both theoretical and practical aspects of management, taking into account the realities of our time. Particular attention is paid to the situational nature of management, which is becoming increasingly important, given the constant changes in the modern business environment.

Due to the carefully thought-out structure and simplicity of presentation, the book can be useful to a wide range of readers: students studying management, teachers, practicing managers and just people who are interested in theoretical and practical issues of management.

3rd edition.

On our website about books lifeinbooks.net you can download or read the online book "Fundamentals of Management" by Franklin Hedowry, Michael Albert, Michael Mescon in epub, fb2, txt, rtf formats. The book will give you a lot of pleasant moments and real pleasure from reading. You can buy the full version from our partner. Also, here you will find the latest news from the literary world, find out the biography of your favorite authors. For novice writers, there is a separate section with useful tips and advice, interesting articles, thanks to which you yourself can try your hand at literary skill.

Current page: 1 (total of the book has 60 pages) [available passage for reading: 40 pages]

Michael H. Mescon, Michael Albert, Franklin Hedowry
Management Basics

* * *

Foreword

Teacher

The main purpose of the book Management Basics- to provide the reader with basic information about formal organizations (commercial and non-commercial, large and small) and their effective management. An effective manager always takes into account situational differences and, predicting and preparing for the future, acts proactively, rather than reacting to events that have already occurred.

The field of management is so broad that introductory courses tend to focus on one conceptual approach, such as management processes. But from the point of view of the authors of this book, such a narrow approach is doing the students a disservice. And over the years, many teachers have been able to make sure that our book fully satisfies both their needs and the needs of their students.

While preparing this third edition for release, we tried to take into account even more fully the opinion of teachers who use Management Basics in the educational process, and even those who do not use this book. And we hope that the result of our efforts is a book in which everything that has brought her great success in the past is preserved. At the same time, it has been changed so that it is even more consistent with the objectives of the basic management course.

We remain convinced that an eclectic approach that brings together the most important and common ideas and concepts from all major schools is best suited to the needs of the real world and most useful for students. We do not use the findings of any one school to unify discussion; on the contrary, we emphasize the need to consider the situation as a whole when making any managerial decisions. We repeatedly point out that the manager must certainly take into account both the interaction between different elements of the organization (i.e., internal variables), and the relationship between the organization and the external environment (i.e., external variables), as well as the fact that any his decision in one way or another affects all aspects of his firm. And this applies not only to the highest level of management. By helping readers understand what factors determine the success of their future management decisions, we strive to improve their effectiveness at any level of organizational management.

Since all variables and functions interconnected, it is obvious that in order to correctly and comprehensively interpret one or another aspect of the organization's activities, the reader must have at least a basic understanding of all the functions and variables. Basically, this book presents the same topics as most other prominent management textbooks, but the discussion proceeds in a different order. In essence, our approach to organizing material is based on the wise dictum of Alfred Chandler - "The structure is determined by strategy." The discussion of topics is organized by the authors in such a way as to achieve the main goal - to make readers understand the need to consider the organization as a whole, and that when making and implementing any decisions, it is necessary to take into account the relationship between all elements and variables. The very structure of this book clearly reinforces the crucial idea, the essence of which is that the theory and practice of management are evolutionary in nature and that even all accepted concepts may need to change.

Book structure

Part I of this edition consists of five chapters: an overview of the book, a chapter on the evolution of management theory and practice, chapters on the main internal variables of an organization as an open system and external environmental factors that influence the success of an organization, and a new chapter on such an important topic like social responsibility and ethics.

A detailed discussion of management functions begins in Part II. It deals with the so-called connecting processes: communication and decision-making. From our point of view, this order of presentation of the material makes it possible to emphasize the need for an integrated approach to management problems and contributes to the understanding of the readers of the importance of situational factors. However, this part is presented in such a way that teachers who prefer to start by learning about management functions can easily go their own way.

Part III is devoted to the main management functions. Two chapters deal with the function of planning, two with the function of organization, and two more with the functions of motivation and control.

Part IV is highlighted in a separate section on group dynamics and leadership, which the teacher, if desired, can consider when discussing the function of motivation.

Part V aims to both introduce new topics and summarize what the reader has learned from previous chapters. Chapter 19 is devoted to the human factor and human resource management issues. Chapters 20 and 21 discuss the management of an organization's operations, which is critical to the performance of an organization. In Chapter 22, we will summarize what we’ve learned about good management and show you how a holistic approach can improve business performance in the future.

Acknowledgments

First of all, we would like to especially thank the Dean of the School of Business. Franklin Purdue at Timothy S. Mescon's Salisbury College. He penned the original chapter on strategic planning and part of Chapter 10 on implementation and control in planning. We are also indebted to Richard G. Dean and Thomas B. Clark of the University of Georgia for their invaluable contributions to two new manufacturing chapters. David Bruce from the same university helped us a lot in covering the issues of international and global business. You will find his materials in different chapters of this book. Many thanks for the help also to Claudia Rawlins from the University of California (Chico).

I would like to express my gratitude to the people who provided the most interesting cases from practice for each chapter and part of our textbook: Caron St. John (Georgia State University), Murray Silverman, Jane Baack, and Paul Schonemann (University of San Francisco).

And many thanks to everyone who read it at different stages of the preparation of the manuscript and gave useful recommendations for improving it.

Michael X. Mescon

Michael Albert

Franklin Headry

From the publisher

You, the reader of this book, are its main critic and commentator. We value your opinion and want to know what we did right, what could have been done better and what else you would like to see published by us. We are interested to hear any other comments that you would like to express to us.

We look forward to your comments and look forward to them. You can send us a paper or email, or just visit our web server and leave your comments there. In short, in any way convenient for you, let us know whether you like this book or not, and also express your opinion on how to make our books more interesting for you.

When sending a letter or message, do not forget to include the title of the book and its authors, as well as your return address. We will carefully read your opinion and be sure to take it into account when selecting and preparing for publication of subsequent books. Our coordinates:

Email: [email protected]

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Addresses for letters from:

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Part I. Elements of organizations and management

So, we are going on an exciting journey. A significant part of the investigated territory will be unfamiliar to you or even contradicting the fact that we, as we are seems, we know. Complicating matters further is the limited time and volume of the book. Despite these problems, the destination of our journey justifies our efforts. You will master the basic concepts of management and organization, that is, a topic of great practical value and very important for almost every member of modern society.

It is generally accepted that a journey will be more successful if the traveler has an idea of what awaits him. And our case is no exception. Just as people study a map of a country before driving across it, Chapter 1 begins with a general description of organizations, their meaning, and the nature of management. In Chapter 2 we will discuss management development, the main theme of this book.

As you hit the road, you will of course want to make sure your vehicle is in perfect working order. Every motorist understands that if the brakes fail in the mountains, new candles will not help. He will probably want to check other aspects of the upcoming trip, for example, whether there are gas stations along the route and the condition of the road. Likewise, the manager of the organization must understand and consider how critical factors, or elements of the company, and external forces affecting her. With elements of the organization that are called internal variables, you will learn in Chapter 3, and the factors external environment, or external variables, are described in Chapter 4.

Let's continue the analogy with auto travel. Any experienced driver understands that his vehicle can be a source of threat. Safety issues concern him no less than the technical efficiency of the machine. Likewise, the manager of an organization is obliged to take into account its impact on society. Chapter 5 is devoted to this topic.

Chapter 1. Organizations, managers and successful management

Introduction

In these dynamic times, managing an organization is a difficult task; it cannot be successfully solved using formulaic formulas. The manager needs to know and understand the general rules while taking into account the myriad of different variables that differentiate management situations. In this chapter, we present the basic definitions of concepts such as organization, management and managers and briefly describe their main characteristics. We will also define the success of an organization and its main components: effectiveness, efficiency and productivity. Our goal is to provide a basis for further discussion and to show the general direction of our movement. As you read this chapter (like everyone else), you should try not only to memorize the definitions of the basic concepts, but to understand their essence.

After completing this chapter, you should understand the terms and concepts listed at the beginning.

What determines the success of an organization

Situation 1. How to win a computer game

Realizing that the computer business has a great future, the two firms decided to enter the competition. Firm A is a large American corporation that has already become a leader in the field of electronics. It can invest millions in a new business and conduct market research, hire excellent technicians and sales people, and build new factories equipped with the latest technology. Firm B has only two college dropouts whose electronics experience is limited to selling illegal toll-free long-distance calling devices. They don't spend a cent on research when they start developing. Their initial venture capital is $ 1,300, raised from the sale of a Volkswagen bus and pocket calculator. Their office is in the bedroom of one of the partners, and the assembly line is in the garage. Which firm will do better?

The answer is obvious: firm A, in our example - RCA Corporation... But you've hardly seen her computers, because in 1976, after losing more than $ 300 million, she closed her computer production. And firm B has become Apple Computer Products, which set a record in 1982, entering the Fortune 500 list just 6 years after starting operations.

Situation 2. Big name in retail

This firm is a pioneer in marketing and retail; she was the first to engage in the development and procurement of goods, taking into account the wishes of consumers. She owned the first department store, which was the first to implement a new idea - to offer the buyer a wide range of products, most of which are made according to the firm's own specifications. She is known for her No Questions Asked Refund policy; it is the largest retail chain in the country. What is this company?

You have every reason to answer Sears... But, while the above description is quite applicable to this largest retail chain in the United States, this is the wrong answer. This is a Japanese firm Mitsukoshi... Founded in 1650, it became Japan's largest retail chain 250 years earlier. Sears started using the advanced techniques described above.

Situation 3. How to take a steep climb

Imagine that it’s the 1960s, and you, an economics student at Yale University, write a term paper and propose to create an airline that will deliver small parcels across the United States in one day. Your dream company must become a competitor UPS and the United States Postal Service. You plan to oust these powerful competitors from the business, although it is estimated that your company will charge 40 times more for package delivery services over the same distance. What grade do you think would be given to you for your work?

Most likely, not more than three - just for the efforts. This is how the "absurd" work of Frederick W. Smith was assessed, which, in fact, became a project of the corporation Federal express... Smith could have challenged this estimate, but he is too busy running a $ 600 million annually company that guarantees delivery of millions of packages a year within 24 hours. He doesn't even have time to spend the $ 58 million he earned in the year he was the highest-paid American corporate executive.

Like RCA from Situation 1, this firm is a giant corporation aiming to take over most of the computer market. Her public image is even more conservative than her image RCA... Until recently, the firm had a rule that all male employees, even repairmen, had to go to work in white shirts and ties. In her 75 years in business, she has never been considered a technology leader. But while its products are not state-of-the-art, the firm charges them nearly 25% higher than the competition. It does not set high mandatory sales targets; on the contrary, these rates are so low that almost all employees receive a bonus. Moreover, the firm instructs its salespeople to try to charge customers as much as possible. smaller of money. To this end, the company sometimes resorts to such sentimental methods: rents a stadium, sellers run out onto the field, and their names and indicators of their sales are indicated on a bulletin board. Does this company have a chance to successfully compete in the computer business with such monsters as, for example, Apple?

One day, while answering this question to a reporter, the former president of the company Apple A.S. Markkula said that his firm has three main competitors: IBM, IBM and IBM... The company described above is, of course, IBM... And when PC sales IBM quickly took the first place in the industry and it grabbed a solid chunk of sales Apple, it became clear that the assessment of Mr. A. Markkula, alas, was absolutely correct.

Situation 5. Food for thought

Here are two firms in the restaurant business. The first one is located in an old building in the old part of the city, and not even on the first floor. The food and service is great here, but the owner refuses to advertise. The prices in the restaurant of the second company are much lower, the chefs do not have much experience, the dishes are prepared in large quantities and are warmed up before serving to customers. The company is located in the newest part of the city and actively advertises its services. Who has the greatest chance of success?

In fact, both of these firms are undoubtedly doing well. For more than two hundred years, gourmets have considered La Tour d'Argent, which is located on the top floor of an old building and offers a magnificent view of Notre Dame Cathedral, the best restaurant in the world. But most people are more familiar with another restaurant business, which sells hamburgers under golden arches around the world.

Situation 6. Obvious truths

According to the Declaration of Independence, "we hold to certain obvious truths." This applies to management and to our time. It is clear that the world is changing rapidly, and in order to survive, we must change too. Consequently, managers need to be able to make decisions quickly. There is no doubt that one person cannot be the immediate boss of thousands of subordinates. However, the leaders of one organization do not consider all these truths obvious. When it comes to changing policy, even compared to the macabre state bureaucracies, this organization can be compared to a snail trying to catch up with a hare. Apparently, its leader is not even aware of modern democratic tendencies. He issues verdicts without consulting ordinary mortals, and expects their unquestioning execution. We say "he" here, not "she" because explicit sexual discrimination excludes the very possibility of a woman reaching such a high position in this organization. In the light of current trends, could this organization even dream of expecting to survive the 1980s?

It is not given to anyone to know their future. But if the organization has managed to survive and thrive for 2,000 years, it is a major success. So the likelihood that the Roman Catholic Church, which was discussed, apparently will continue to exist, is very high.

Why is it tiny Apple and gigantic IBM earned hundreds of millions in the computer business, and RCA it failed? How Federal express has achieved better service than the US Postal Service, which has far more resources and government support? How MacDonald's manage to sell millions of hamburgers every year for a small price and make huge profits, and most restaurants can only feed a few hundred customers a day? Why Sears and Mistukoshi have been leading the retail trade of their countries for many years, while others have gone bankrupt? Why has the Catholic Church thrived for 2,000 years when its policies could have brought any other company to collapse in just a few hours?

Management emerged precisely because people have always sought to understand the reasons for the success and failure of organizations. Scientists are constantly looking for an answer to this question by trial and error. To answer it, it is necessary to find the answer to a more pragmatic question: "What can a manager do to ensure the success of his company?"

At first glance, in all the situations described above, one can easily find an explanation for the success or failure of a particular company. For example, it can be said that RCA was wrong trying to compete directly with IBM... But DEC, Data General and Honneywell also competed with IBM and quite succeeded. We still have to make sure that the explanations lie on the surface, but then it turns out that they are wrong or imperfect.

The lack of simple answers does not mean that it is impossible to explain success and that there are no specific methods to achieve it. There are many techniques, procedures and concepts that have been proven to be effective. The lack of simple answers only means that there are no methods that will be effective at all times and for everyone and everyone, and that what made it possible to achieve success in the past may well not work in the future. Henry Ford's concept of mass-producing standard cars was one of the greatest ideas in history. But Ford was so blinded by his success that he nearly bankrupted the company by pushing for the Model T, while General motors started offering customers cars of different colors and models. And the experience that allowed RCA to become a leader in the production of televisions and television broadcasting, proved to be useless in the computer business.

The organization

All the examples described above have one thing in common which they also have Brownie Troop 107, King's Ranch in Texas, Mount Sinai Hospital, Sony, Harper & Row Publishers, DPRK, General Motors, US Navy and your college. These are all organizations. Organization is the foundation of the world of managers and the reason for the existence of management. Therefore, we will begin our study of management by discussing what an organization is and why it should be managed.

What is an organization

1. Availability at least two people who consider themselves part of this group.

2. The presence of at least one goals(desired outcome) common to all members of the group.

3. The presence of group members who consciously work together towards a common goal.

By combining these requirements, we get an important definition.

Organization - a group of people whose activities are deliberately coordinated in the name of achieving a common goal or goals.

Formal and informal organizations

More precisely, it should be said that this definition is not just an organization, but formal organization... There are also informal organizations, that is, groups that arise spontaneously, but their members regularly interact with each other. Informal organizations exist in all formal organizations, with the exception of very small ones. There are no managers in them, but they are so important that we devoted a separate chapter to them. Guided by generally accepted practice, speaking of informal organizations, we will call them that way, and the term organization will refer to formal organizations.

Complex organizations

In the above definition, it is said that an organization always has at least one goal, common and recognized by all its members. But formal management rarely deals with organizations with only one purpose. In this book, we address management issues complex organizations that have recruited interrelated goals.

Here's a simple example: McDonald's - it is an organization of more than 7,000 individual businesses, supported by many behind the scenes departments: they build restaurants, do advertisements, buy groceries, and do quality control. Each establishment McDonald's has its own sales and profit plans. Each support unit also has its own goals, such as purchasing beef at competitive prices. All of these goals are interrelated and interdependent. For example, a restaurant can achieve its profit targets only if the purchasing department achieves its goals and provides the restaurant with enough rolls at the right price; if the marketing service provides a sufficient influx of buyers, technologists will find a way to efficiently prepare meals, etc. The main reason why the company McDonald's managed to become a world leader in her business, lies in the fact that she not only effectively manages her divisions, but also managed to effectively and effectively establish the relationship between their goals.

General characteristics of organizations

In addition to the fact that complex organizations are groups with a set of interrelated goals, they also have a number of characteristics in common. These characteristics, summarized below, help to understand why an organization needs to be managed in order to be successful.

Resources

In general terms, the goal of any organization is to transform resources to achieve specific results. The main resources used by organizations are people (human resources), capital, materials, technology and information. The resource transformation process is most clearly seen in manufacturing organizations, but service and non-profit organizations also use all of these types of resources. Table 1.1 lists the resources that are used in the organizations described in the above situations.

Table 1.1. Relationship between goals and resources1
* Resources of primary importance to the organization are shown in italics.

Apple and IBM use the funds of shareholders and banks (capital) to purchase parts (materials), to build assembly lines (technology) and to pay factory workers (people) to produce computers and sell them at a profit (results). Information resources are used to communicate and coordinate all phases of the transformation process. Market Research Information Helps Executives Apple and IBM decide which product has a chance to please consumers. Communicating with workers, they receive the information necessary for a high-quality solution to the problem. Sales speed and volume data allow managers to decide how well their company is moving towards desired goals. It is precisely the awareness of the importance of information as a type of resource that determines the rapid growth of firms specializing in information processing, for example Apple and IBM... Information is acquired and disseminated through communication, which is detailed in Chapter 5.

Dependence on the external environment

One of the most important characteristics of an organization is its relationship with the external environment. No organization can exist autonomously. She is completely dependent on the world around her, since she receives the necessary resources from it, and there are consumers of the results that she seeks to achieve.

Term external environment includes economic conditions, consumers, labor unions, government regulation, competitors, social values and attitudes, technology and other elements, which we will discuss in detail in Chapter 4. All of them affect the activities of the organization. For example, the emergence of new technology in automation can provide an organization with a competitive advantage. But in order to use it, she needs to find people with specific skills and values that will make the new job attractive to them. In favorable economic conditions or if the labor market for such specialists is in demand, the organization may have to raise their salaries. In the process of recruiting, she must comply with the laws of her country that prohibit discrimination on the basis of age, gender and race. And all these factors are constantly changing.

Equally important, although the organization is completely dependent on the external environment, managers usually cannot influence it. No manager IBM cannot prevent a Japanese firm from bringing a new integrated circuit to market that will make some products IBM obsolete. AND McDonald's cannot in any way prevent the federal government from raising the minimum wage, although this would entail a significant increase in its labor costs.

Every year management has to take into account more and more environmental factors, which today are truly global in nature. Firms have to compete in foreign markets and oppose the competition of foreign companies in their home countries. To do this, they must understand a whole set of new laws and cultural values of other countries. It is of great concern, for example, that very few US companies have entered the Japanese market so far, for example Coca-Cola and McDonald's while Japanese firms are firmly entrenched in the American electronics and automotive markets.

Horizontal division of labor

The most distinctive characteristic of organizations appears to be division of labor... If at least two people work together towards a common goal, they should share the work among themselves. The division of labor into its constituent components is called horizontal division of labor... By dividing a large amount of work into many small, specialized tasks, as described in Chapter 9, an organization is able to produce far more output than if the same number of employees worked on their own. For example, McDonald's by dividing the activities of preparing even the simplest meals and serving customers among a dozen workers, it serves hundreds of times more people per day than a traditional restaurant.

In small organizations, the horizontal division of labor is often implicit. Small restaurant owners usually prepare their own food and serve customers. But in most complex organizations, there is a horizontal separation that clearly shows their interrelated goals. For example, the classic model for such a division of labor in a manufacturing firm is the delineation of production, marketing and financial functions. These are the main activities that must be successful if the firm wants to achieve its goals.

Subdivisions

Complex organizations clarify the horizontal division of labor by creating subdivisions who are responsible for performing specific tasks. They are often referred to as departments or services; other terms are used as well. V McDonald's for example, there are formal units for each main line of business, ie, marketing, purchasing, real estate, and so on. These, in turn, are broken down into smaller and more specialized ones. So, McDonald's being a very large geographically widely dispersed firm, it has divisions both by geography and by lines of business. Let's say the real estate department consists of a division that looks for new locations for business, and a division that manages the existing buildings of the firm. Each of them, in turn, operates in its own geographical area, for example, on the East Coast, in California, in Western Europe.

As an organization as a whole, divisions bring together groups of people whose activities are deliberately coordinated to achieve a common goal. We can say that, in fact, large complex organizations consist of several interconnected formal organizations specially created for specific purposes and many informal groups that arise spontaneously. In fig. 1.1 you can see how a typical business college (which itself is a unit) is subdivided into smaller horizontal groups with specific tasks. As for informal groups, for example, as you, of course, noticed yourself, after a few joint classes of one or another faculty, several close-knit informal groups are formed among students.

Rice. 1.1. Business college divisions

If the faculty of management, which is an organization in itself, does not achieve its goal, then the college as a whole cannot achieve it.

Vertical division of labor

Since the work in the organization is distributed, someone should coordinate... In organizations, the division of labor takes two forms. The first form is the division of labor into separate tasks, that is, horizontal. The second, which is called vertical separation, separates the coordination of actions from the actions themselves. This coordination of the work of other people is the essence of management.

MANAGEMENT

Michael MESKON

Michael ALBERT

Franklin HEDOWRY

TRANSLATION FROM ENGLISH

General edition and introductory article by L.I. Evenko, Doctor of Economics

ACADEMY OF FOLK ECONOMY

UNDER THE GOVERNMENT OF THE RUSSIAN FEDERATION

MOSCOW Publishing house "DELO" 2004

Part One: Elements of Organizations and the Management Process 14

Chapter 1: ORGANIZATIONS, MANAGERS AND SUCCESSFUL GOVERNANCE 14

CHAPTER 2: the evolution of management thought 38

Chapter 3: INTERNAL ENVIRONMENT OF THE ORGANIZATION 57

Questions 73

CHAPTER 4: BUSINESS ENVIRONMENT 75

CHAPTER 5: SOCIAL RESPONSIBILITY AND ETHICS 97

Part 1 111

Part Two: Connecting Processes 114

Chapter 6: COMMUNICATIONS 114

CHAPTER 7: DECISION MAKING 135

CHAPTER 8: MODELS AND DECISION-MAKING METHODS 152

Part two 174

CHAPTER 9: STRATEGIC PLANNING 177

CHAPTER 10: PLANNING FOR IMPLEMENTATION OF STRATEGY 201

CHAPTER 11: ORGANIZATION OF INTERACTION AND AUTHORITY 216

CHAPTER 12: BUILDING ORGANIZATIONS 233

CHAPTER 13: MOTIVATION 254

CHAPTER 14: CONTROL 276

Part 3 303

Part Four: Group Dynamics and Leadership 307

CHAPTER 15: GROUP DYNAMICS 307

CHAPTER 16: LEADERSHIP: POWER AND PERSONAL INFLUENCE 327

CHAPTER 17: LEADERSHIP: STYLE, SITUATION AND EFFICIENCY 345

CHAPTER 18: MANAGING CONFLICTS, CHANGE AND STRESS 365

Part 4 396

Part Five: Ensuring the Organization's Performance 399

CHAPTER 19: HUMAN RESOURCES MANAGEMENT 399

CHAPTER 20: PRODUCTION CONTROL: ESTABLISHING AN OPERATING SYSTEM 419

CHAPTER 21: PRODUCTION CONTROL: OPERATING SYSTEM FUNCTIONING 437

CHAPTER 22: PERFORMANCE MANAGEMENT: AN INTEGRATED APPROACH 455

Part 5 475

Glossary 478

Lessons from American Management

(introductory article)

The times we live in are an era of change. Our society is carrying out an extremely difficult, largely contradictory, but historically inevitable and irreversible restructuring. In socio-political life, this is the transition from totalitarianism to democracy, in the economy - from the administrative-command system to the market, in the life of an individual - his transformation from a "cog" into an independent subject of economic activity. Such changes in society, in the economy, in our entire way of life are complicated by the fact that they require changes in ourselves.

Americans, who are accustomed to sharp turns of fate and competition, describe this situation as “challeng”. According to their concept, each challenge is fraught with both opportunities and threats for an individual, organization, country. To cope with this unprecedented challenge in the life of present generations, we, among other things, need to master new knowledge, learn to use it in practice. An important part of this knowledge, as the world experience shows, is the comprehension of the science and art of management.

With the light hand of the Americans, this English word has become known today to almost every educated person. In a simplified sense, management - it is the ability to achieve the set goals, using labor, intellect, motives of other people's behavior. Management - in Russian "management" - a function, a type of activity to guide people in a wide variety of organizations. Management is also a field of human knowledge that helps to carry out this function. Finally, management as collectively from managers is a certain category of people, a social stratum of those who carry out management work. The importance of management was especially clearly realized in the 30s. Even then it became obvious that this activity had turned into a profession, the field of knowledge - into an independent discipline, and the social stratum - into a very influential social force. The growing role of this social force made people start talking about the "revolution of managers" when it turned out that there are giant corporations with enormous economic, production, scientific and technical potential, comparable in power to entire states. General Motors, for example, is invariably present in the first dozen of the largest economic entities in the world (including both states - the USA, Japan, the USSR, etc., and corporations). The largest corporations and banks constitute the backbone of the economic and political power of great nations. Governments depend on them, many of them are transnational in nature, extending their production, distribution, service, information networks around the world. This means that the decisions of managers, like the decisions of statesmen, can determine the fate of millions of people, states and entire regions. However, the role of managers is not limited to their presence only in huge multi-level and branched corporate governance structures. Small business is equally important in a mature market economy. In terms of quantity, this is more than 95% of all firms; in terms of value, it is the closest thing to the daily needs of consumers and at the same time a testing ground for technical progress and other innovations. For the majority of the population, it is also a job. Skillfully managing a small business means surviving, resisting, growing. How to do this is also a matter of effective management.

A little more concepts. The question arises - is it possible to consider that the English concept of "management" and the Russian "management" and, accordingly, "manager" and "leader" are one and the same. Yes and no. In a general sense, or, so to speak, from a bird's eye view, perhaps - yes. At the same time, there are differences in the interpretation and application of these concepts, which are interesting, however, mainly only to specialists. However, two differences appear to be significant. First, when speaking of "management", Americans almost always mean the figure of a "manager" - a person, a subject of management, acting in an organization. In a more general sense, they use the term "administration", "administration", which largely reflects an impersonal system of government. Secondly, when they say "manager", then, by and large, they mean a professional manager who realizes that he is a representative of a special profession, and not just an engineer or economist engaged in management. In addition, a manager is a person who, as a rule, has undergone special training.

This book will help you, dear reader, to make serious enough first steps for someone on this path. The question "How to become a manager?" actually not so naive. Of course, for this you need to take a managerial position, become a leader. But the main thing is to be aware of your professional affiliation with management, to master the amount of knowledge that directly relates to management, to adhere to certain standards, even external attributes of behavior that are usually inherent in managers. A full-fledged manager, for example, in whatever country he is, needs to know English. And yet, at the same time, one should not forget that a leader is valuable who knows his job, knows how to manage well, achieve the set goals, regardless of his appearance and education. Wherever it may be, this is the main standard of a true "manager".

In the culture of developed capitalist countries, the concept of management very often coexists with the concept business. Business is an activity aimed at making a profit by creating and selling certain products or services. "Business management" is the management of commercial, economic organizations. Along with this, the term business administration, which can be translated as "business administration", is used almost as a synonym. The term "management" is applicable to any type of organization, but when it comes to government bodies of any level, it is more correct to use the term public administration.

A businessman and a manager are not the same thing. Businessman - it is the one who "makes money", the owner of the capital in circulation, generating income. It can be a business person, under whom no one is subordinate, or a large owner who does not hold any permanent position in the organization, but owns its shares and, perhaps, is a member of its board. Manager he necessarily holds a permanent position, people are subordinate to him. A somewhat more specific case of business is entrepreneurship. This type of activity is even more associated with the person's personality - entrepreneur, who runs a business, starting a new business, implementing some innovation, investing his own funds in a new venture and taking personal risk. The differences between a manager and an entrepreneur will be very large if the manager gravitates towards a bureaucratic leadership style, but they blur to some extent if he adheres to an entrepreneurial management style. So far, very few large firms have managed to resolve this contradiction, and yet the reader will find some examples of success in this matter on the pages of this textbook.

The wide public interest in management is largely associated with the formation and development of business schools or management schools, most common in the United States and part of the "management infrastructure". Infrastructure industries in production - energy, transport, telecommunications, etc., and in the non-production sphere - education, publishing, public computer networks, consulting, etc. - are highly developed precisely in a market economy, where horizontal ties are especially important , and public services that satisfy a certain public need and are paid for by the consumer are quickly transformed into an independent large, medium or small business. Today, the United States is the country with the most developed management infrastructure in the world. There are more than 1300 registered, officially certified by the American Assembly of Collegiate Business Schools, there are more than 1300 business and management programs in America, including 600 are business schools that operate independently within the framework of multidisciplinary universities. They give regular education in business and management. There are over 10 thousand consulting firms operating in the country, in addition to tens of thousands of independent consultants who provide services on various aspects of this activity. More than 70 periodicals, over a dozen publishing houses specialize in literature on management and business. The United States is a leader in management science, business and management research in terms of both the number of researchers, and the volume of funds spent, and the breadth of the problems covered.

The system of education in business and management, like in most other specialties, is a three-stage in the United States. After graduating from high school, after four years of university or college, you can earn a degree bachelor's degree, which roughly corresponds to our higher education diploma. Moreover, after the first two years, you can interrupt your education, which will be tantamount to graduating from "junior college". This is followed by a two-year education in master's Programs: "Master of Business Administration" - Master of Business Administration - the famous MBA (Em B. Hey); "Master of Management Science" - Master of Management Science - MMS (Em Em Es); "Master of International Management" - Master of International Management - MIM (Em I Em) and the like.

Usually, people at the age of 25-30 enter master's programs who, in addition to a bachelor's degree, have at least two years of practical work. Generally speaking, a master's degree awarded as a result of studies is not a scholar. This degree is rather "professional", indicating that the graduate who received it has not only theoretical, but also practical knowledge and partly skills in the field of business and management based on the analysis of a large number of management situations, participation in management games, internships in large firms, abroad, etc. MBA programs are essential for business schools, especially leading ones. They are distinguished by their exceptional study intensity and guarantee the high quality of their specialists. Graduates of the top ten most quoted business schools are on the hunt. For example, the starting salary for an MBA at Harvard Business School, which has been # 1 for many years, typically exceeds $ 60,000 a year. Its constant rival is the Stanford School of Business, leading places are occupied by the Wharton School in Pennsylvania, the Sloan School at the Massachusetts Institute of Technology, the University of Michigan School of Business and others. And at the same time, those who graduate from less prestigious schools may have problems with employment. In general, in order to make a career as a professional manager in the United States, especially in a large company, or as a high-ranking business and management specialist, a master's degree is considered highly desirable. In recent years, evening programs of study of master's programs for senior executive practitioners (Executive MBA) have become widespread. In general, about 72 thousand Americans receive a professional MBA every year, which is one fourth of all masters trained by American universities in all specialties.

The third stage of business and management studies are programs leading to a degree Ph.D. - Philosophy Doctor - Ph.D. (Pee Hee Dee). They provide for three to four years of study with compulsory defense of a dissertation and the award of a Ph.D. This degree, roughly equal to the degree of a candidate of sciences in a strong Soviet university or research institute, is higher than a master's degree, but exists in parallel. The master's degree is professional, and the doctoral degree is a scientist. Those who receive it do not intend to become practicing managers, but will engage in research, teaching in this area, or the professional work of a planner, analyst in firms. High quality Ph.D. in US universities (where, by the way, there are no analogues of the second, higher degree of "Doctor of Science", awarded in our country and in Europe) is determined primarily by the development of a huge array of scientific literature and numerous special courses on the subject. Often, a graduate student starting a Ph.D. at one university, finishes it at another, which is dictated by his scientific interests, the logic of research, the presence of prominent scientists engaged in research on problems of interest to him. For the Ph.D. program graduate students with a bachelor's degree come in, and sometimes (not necessarily) a master's degree, in this case the period of study is reduced. This American system is highly extensive, flexible, and costly. Tuition fees for an MBA program are typically around $ 15,000 per year at a leading university, and a Ph.D. costs even more.

Recently, this education system has often been criticized. According to some, it forms people who are "in an ivory tower", have high ambitions, but do not know real life, unable to adapt to change. However, business schools in the United States are far from going broke. Moreover, income from master's programs is usually a good support for other, non-profit activities of American universities. If some master's programs are no longer in demand, they are replaced by others. To strengthen the link between science and practice, many business schools prefer to hire people who have worked in leadership positions in firms and government departments, while at the same time holding Ph.D. degrees, experienced in teaching and research. Professors who have gone through this kind of "rotation" are a special category of teachers very valuable for business schools.

However, it should be emphasized that the American way of forming managers is not the only one in world practice. In Japan, for example, there are only three business schools, mainly for training those who intend to work abroad. Firms themselves prepare managers on the basis of the concept of "learning by experience", systematically moving them to different positions. This allows you to learn the specifics of various aspects of the business and thoroughly study your company. It is only around the age of 35 that employees have a chance to get their first management position. In Japanese firms, everyone learns - from workers to the president, and the main responsibility for this lies with the leaders of each of the divisions, the elders teach the younger ones. Sending practitioners to study at third-party training centers is not a frequent matter, although, for example, at Matsushita Denki there is a Matsushita Academy, where talented young people with higher education are trained for another five years. But this is an exception for the elite.

Europeans also have business schools. Their leading European association EFMD (European Fund for Management Development) has registered about 300 full-fledged management training centers. Many are highly trained, although master's degrees in business and management are not as prevalent or highly regarded as in the United States. Somewhat more important in European schools are disciplines close to production, the study of social, as well as country and international aspects of business and management.

And yet it should be recognized that the training and formation of managers in different countries are very close both in essence and in the methods of organizing training, especially in the last decade. Management as a profession, as a field of knowledge is becoming truly international. Mastering the experience of governing each of the countries, transferring this experience is a very valuable and useful thing that everyone is beginning to understand. After all, this allows you not only to understand how to do business abroad, but also to learn how to avoid mistakes in situations that have not been encountered in the present and the past, but are quite possible in the future. The story of someone else's success or failure is also very instructive. And, of course, scientific and empirical generalizations, the development of general principles of effective management, the typification of its various forms and the conditions for their application - all this is the subject of serious work of those who think about management in scientific terms and advance management thought.

In all this variety of theories and phenomena of living practice, American management has been and remains the most powerful "administrative civilization." Its leading importance in the world today is undeniable, and its influence on the development of theory, practice, and even more so on management learning, is the greatest. There is no need to blindly follow the conclusions of American theorists and the recommendations of their practitioners, but it is certainly necessary to know their ideas.

This is exactly what this American textbook on management is offered to our reader. This is not the first book of its kind to be translated in the USSR. In 1981, the book was published by G. Kunz and S. O "Donnel" Management: System and Situational Analysis of Management Functions (Translated from English. M .: Progress, 1981). personnel "(Abbreviated translation from English / Scientific ed. V.I. Tereshchenko / M .: Economics, 1970). The book by D. O" Shaughnessy "Principles of organization of company management" (M .: Progress, 1979). Among the Soviet works on this issue, the most significant role was played by the book of Academician D. M. Gvishiani "Organization and Management" (2nd additional edition, Moscow: Nauka, 1972), devoted to the systematization and analysis of American management theory at that time. However, the textbook "Fundamentals of Management" is of a qualitatively different nature. It is attracted by three characteristic features.

Firstly, this is a sufficient completeness of the description of the most important elements of modern knowledge about management, while, say, the book by G. Kunz and S. O "Donnel, mainly covered the principles of the" classical "or" administrative "school in theory management, and the more compact textbook D. O "Shaughnessy contained a popular survey of the results of the most famous research in this area. The authors of "Fundamentals of Management" went, according to their admission, along a somewhat eclectic path. They did not pursue an imaginary methodological harmony of presentation, but tried to sufficiently balance the achievements of various approaches and schools and their real contribution to modern management thought. The reader of the book can be sure that he will receive the basics of knowledge about management, will get acquainted with all the most important achievements of Western management thought, and will learn the most famous names of authorities in the science and practice of management. In general, this will prepare you to take the next steps - to delve into the study of special literature on certain aspects of management, discuss these problems with Western colleagues or study management abroad. Such a feature of the book, of course, is a great advantage in our time of familiarization with the achievements of world management thought.

Secondly, this tutorial has its advantages from the point of view of the circle of readers. With a solid scientific level, it is written intelligibly, engagingly, even vividly, which was not in any of the previous books of this kind - domestic or translated. You can not only carefully study it with a pencil in your hands, but also simply read it to broaden your horizons, and even for pleasure. The main contingent of our readers is those who have taken up the study of management, without having serious preliminary training and, perhaps, even higher education. In America, this textbook is used primarily by bachelor students. In particular, I had a chance to use it as the main teaching aid when reading a course in the basics of management in 1989 at San Francisco State University for students of this category. But taking into account the specifics of our country, this textbook can be used not only by students. Leaders who are receiving management training or upgrading their qualifications, already established engineers, or economists with specific work experience will find this book interesting and useful for themselves, as it opens up a new area of knowledge for them, usually not included in our university courses. Due to the same novelty of its problems, this book can be very useful for those who receive postgraduate education in postgraduate studies or for new master's programs for us. It is, of course, used by those who are now establishing management teaching in our country. It will be read by people of different ages and professions engaged in self-education. In a word, with the formation of a new system of training and advanced training of managers in our country, this textbook, it seems, will turn out to be quite in time.

Thirdly, this book is interesting from the point of view of a methodological approach to organizing the presentation of the material. In my opinion, it is a good example of a high scientific level, sharpness of definitions and formulations, a sense of proportion in the presentation of scientific truths and, at the same time, full-fledged information about management practice, vivid examples and specific situations for analysis. The abundance of illustrative and schematic material, generalizations at the end of each chapter, questions for discussion - all this, of course, is the result of many years of evolution of management education methods in America, and for us it is an example of a modern approach to effective teaching of students and leaders.

Speaking about the content of the book, it should be admitted that it gives a good idea of the state of American management thought. Reading it, one can, in particular, form a certain position on the traditional, but still topical question: is management a science or an art? There is ample reason to believe that this is a synthesis of science, art and experience, as discussed in Chapter 1. This is, of course, trivial, but it is important to realize the fact that the activities of management are so complex, and the science of management is still so young that it is necessary to assess its capabilities with great caution, of course, without detracting from the usefulness of life-tested theories and scientifically based methods. No one knows simple recipes for solving managerial problems, which is emphasized many times on the pages of this book. This idea underlies the methodology of the "situational approach" to management - perhaps the largest scientific result in this area over the past two decades.

The assurances characteristic of Russian literature of past years that we are supposedly able to "scientifically manage" not only production, but also society, do not stand up to criticism either from a theoretical or practical point of view. From an objective standpoint, the current state of scientific knowledge about management and running an economy is such that it can serve as a source of not only insights, but also serious delusions, and "scientifically grounded" theories and methods can bring not only benefits, but also significant harm. It must be admitted that the myth of "scientific management" for a long time was simply beneficial to the ruling layer of the bureaucracy in the administrative-command system in your country as one of the arguments for centralizing power in its hands. Today, the attempt of the townsfolk to find those to blame for our past and present mistakes among scientists who allegedly advised the leaders in the wrong way is simply incorrect from the standpoint of real management practice, that is, the weather is done by those in power, and not by those who advise them something. Although the lag in science and education in the field of management are to blame, of course, people are scientists.

/ M.Kh. Mescon, M. Albert, F. Hedouri... - M .: A business, 1992 .-- 701 p. Tulchinsky G.L. Management ...