management organisation exam

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Prof. Ph. Dr. Tadeusz Oleksyn 30.03.2020

ESSENCE OF MANAGEMENT

There is a multitude of definitions of management in existence as the

management of various organizations differs from each other. It is different

when managing a sole-proprietorship firm than in the case of a small to

medium-sized enterprise and even more so in the case of an enormous global

firm. The management of a private organization (enterprise), is different to that

of a public organization.

Furthermore, there are no two people exactly alike in the world. In the same

way, there are no two sets of people in two different organizations that are

exactly alike. In every organization there are different people, different cultures,

while also different customs. Hence, it is difficult to provide one singular and

universal definition, the more so as the expected ideal management system is

frequently in contrast with that of real management, in terms of what it really

represents.

Nevertheless, there are certain common features of good management such

as the following:

(1) it is practical activity;

(2) it is of a natural form;

(3) it serves the fulfilment of important goals;

(4) it resolves significant problems;

(5) it is a process;

(6) it should be efficient;

(7) it apply the principle of the economy of effort;

(8) it should be in accordance with the law and ethics;

(9) it should be in accordance with culture and good practices;

(10) it should provide satisfaction.

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(1) Management as practical activity

Management is a practical activity and has many thousands of years of

history. There was management in evidence in ancient Rome, Egypt and China.

Even prior to that, there was management in evidence in caves, hunting for a

mammoth, as well as tribal war.

People handed down their experience in management and learnt from others

how to do it well. They did not learn this at school, but by way of managing and

leading in terms of interactions with others. A multitude of people participate in

management – not only company owners and managers. Army commanders also

manage, as do the commanders of paramilitary organizations, the police, the fire

brigade, border control and others such as ministers and heads of offices, school

principals, hospital directors, hospital ward heads, rectors and deans at

universities, transport dispatchers, flight controllers, those supervising search or

rescue missions and many other people. Only some of these people are called

managers or directors.

The theory of management is only approximately 130 years old, thus it is very

new by comparison with practical management.

Management is practice, in accordance with H. Mintzberg (2012), but also

knowledge, art and craft.

Art, creativity

Knowledge Craft

and science and experience

Management as a

practice

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(2) Management / leadership as a natural feature, sometimes wild

Not only people, but also more highly organized animal species (principally

predators) are organized in such a way that certain individual animals of

leadership qualities lead the group, herd or pack. In terms of animal species,

these would be the alpha male or alpha female. Sometimes the pack is led by

both the alpha male and alpha female – as in the case of wolves. In terms of the

hyenas, they are led by the alpha female, whereas a herd of elephants is led by

the experienced female of the species. She knows how to find water, food, while

also knowing how to protect the young calves, impose discipline, usually

without retreating to violence by basing it on authority and trust. She is

distinguishable in the herd for her wisdom and developed intuition.

What are the natural features of the alpha males or alpha females in the

animal world? First and foremost, leadership qualities, intelligence, strength,

courage, good state of health and vitality, developed instinct and intuition.

Leadership among people evolved from the natural, often wild and sometimes

cruel forms from long ago to milder and more pro-social forms in terms of the

development of human civilization. In centuries long ago in many countries,

rulers ordered the killing of opponents to their power, even within the immediate

family such as brothers and sons. 1 In democracy this does not happen.

(3) Management as the accomplishment of goals

Management serves the accomplishment of goals. Goals are set by the owners

and bodies of enterprises, particularly by the board of directors, the supervisory

board, as well as the general meeting of shareholders. They are also derived

from the mission, vision and statutes of the organization. In the case of the

1 This is what happened in ancient Egypt when Queen Cleopatra ordered the death of her brother, Ptolemy XIV. In Russia, several tsars ordered the death of their sons. Queen Elizabeth 1 ordered the beheading of her relative

Mary Stuart so as to eliminate an heir to the throne. In Poland in the 12th century, Prince Władysław Łokietek

ordered the blinding of his own brother, as he saw him as a rival to the throne. Only just recently, the leader of

North Korea, Kim Jong-un, ordered the shooting of his uncle, who was a general, and poisoned his brother to

death as they were both deemed to be a threat to his power.

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legislative aims of the state sector: the constitution, parliamentary bills,

ordinances of the ministers, etc.

Peter Drucker taught that aims should be the most important, realistic,

mutually compliant (they should not exclude each other), hierarchized,

optimized and operationalized.

It is necessary to concentrate on the most important goals. Less important

goals may be just as difficult to achieve and costly. However, they never provide

such a significant effect due to the very fact that they are not the most important.

Great success is only attained by fulfilling the most important goals.

The managing entity inspires, encourages, organizes, motivates, controls and

evaluates. However, the accomplishment of goals frequently requires a level of

involvement and consistent work from a multitude of people.

(4) Management as the solution to important dilemmas and problems

Every organization must resolve various dilemmas and problems that affect it.

Likewise, it also participates in resolving broader social problems.

The problems of a specific enterprise particularly relate to such issues as the

following:

• the legislative and organizational form of business activity (individual

property, limited liability company, joint stock company, others);

• the appropriate choice of domain, thus the type of business activity and

products, groups of clients, as well as the markets that the firm operate

on;

• attractiveness and competitiveness of the enterprise and its products;

• development and marketing strategies;

• scale of business activity, which in turn is associated with the

technologies and distribution networks applied;

• ties with other enterprises: combining activities in the form of networks,

mergers, takeovers, creating subsidiaries, etc.

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• scope of applying outsourcing and insourcing;

• magnitude and structure of employment, while also personnel policies.

Problems of joint ventures and economies (domestic, worldwide) are in

particular:

• socio-political systems; there are better and worse cases;

• domestic and international economic situations;

• supply, demand, price;

• market competitiveness;

• climate change and global warming; threat to biosphere; violent weather

phenomena (floods, drought, desertification, forest fires);

• problems with clean water, clean air, deforestation, littering the planet;

• problems with epidemics and pandemics.

Hence, it is possible to speak of a common mission for all the management

entities in a particular organization both at home and abroad.

(5) Management is a process

Management is a process that runs in a particular order of time. Drucker also

felt that management is technology. In order for management to run rapidly and

effectively without excessive costs, it is necessary to look at it as a process in a

comprehensive and holistic manner.

The process approach became widespread in the world at the end of the 20th

century thanks to Prof. Michael Hammer, the creator of the method of Business

Process Reengineering (BPR).

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M. Hammer – a railway engineer, a professor of the

Massachusetts Institute of Technology (MIT) and a

lecturer at MIT Sloan School of Management. He

was the author of a range of books and papers on

the subject of management. The co-creator and

propagator of process management and methods of

BPR, which have become widespread worldwide.

He was also a highly rated business advisor in the

field of management, especially in the area of the

restructuring of enterprises.

Together with the famous American consultant, J. Champy, he published his much-talked

about monograph entitled Reengineering the Corporation. A Manifesto for Business

Revolution. Collins Business Essentials, 1993.

Several comments by Michael Hammer: Previous success is no guarantee for its

future functioning. If the organization is self-righteous and not modest, it will

not survive. It will not survive when the employees suffer from organizational

cynicism.

(6) Management is to be efficient, effective and ethical

Effectiveness is the skill of accomplishing the goals set out. A manager who is

unable to do so, is not useful to anyone. In order for management to be effective,

the following range of prerequisites must be fulfilled:

• The managerial staff must be competent and have authority; those

performing the tasks must also be competent.

• There must be a good plan, effective organization, the essential personnel

resources, while also material and financial resources, good internal and

external cooperation, as well as inspiration and motivation.

• People must be involved, ambitious and dedicated to the cause.

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(7) Management ought to respect the principle of the economy of effort

Effectiveness is insufficient, as thriftiness also comes into the equation, thus it

relates to the skill of accomplishing goals without incurring excessive costs.

Excessively high costs may cause the fact that this undertaking could be

unprofitable, or that it is not feasible to finance it. It may also be the case

whereby the firm could go bankrupt due to the excessively high costs for the

firm.

In management, it is also necessary to apply the principle of the economy of

effort. This for instance, signifies that instead of correcting something several

times, the principle that is binding in the philosophy of Total Quality

Management (TQM) is applied, namely do it right the first time.

(8) Management should be in accordance with the law and ethics

Management should respect the binding national and international laws. The

violation of these laws may result in numerous penalties against the organization

and against the managerial staff. It is also essential to adhere to the ethical

norms. Admittedly, the violation of ethical norms is not punishable by financial

penalties or imprisonment in European culture, albeit significant violation of

ethical norms and moral principles may cause the ousting / dismissal of the

manager at hand. Moreover, this signifies dishonour, while also violating

personal dignity. In fact, it may have a bad impact on his/her entire professional

career and personal life, while also bring him/her into disrepute for a long time.

If the aim is undignified, it should not be executed, nor participated in. It is

better to walk away and submit your notice rather than cover yourself in infamy

and act against your beliefs.

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(9) Management is to be in accordance with culture and good practices

The majority of founders and entrepreneurs have certain notions and values

that they want to advocate. They have a vision of culture which they would like

to see in their organizations and good practices that they would like to see in

themselves. The managerial staff are the people who are to spread these notions

and values by explaining their need and urging people to respect them. They

should also lead by good example.

(10) Management should provide satisfaction

Good management should provide satisfaction both to the manager, as well

as to the co-workers. The achievement of well-chosen aims, effectiveness of

business activities, satisfaction of the stakeholders, the good condition of the

organization managed and its prestige, as well as the good atmosphere and

cooperation gives everyone the sense of satisfaction and leads to the fact that

people are pleased, while also feeling safe and have the feeling of their

usefulness and development. The sense of dignity of people is also significant as

a source of satisfaction. In life, it is not always the case that everything goes

smoothly as there are various difficulties and failures. Satisfaction may also

provide struggles with these difficulties, solidarity and valour.