Management Primer: A Guide To Basic Management Concepts.

Alan L. Joplin, B.A., M.A., M.A.T., M.S.

Managers must base their decisions on comprehensive organizational goals and objectives. The decisions made and their rationale should be important to the entire management team; therefore, it is essential that the manager understands the point of view and attitudes of others.

Mutual understanding will lead to organizational growth. If any members of the management team does not understand the significance of a decision as it relates to policies, objectives and strategies, etc., then there is a high probability of a weakening of the infrastructure of the organization. The lack of understanding is not always a result of poor communication. It can also result in part from not knowing that a different point of view exists. This situation implies that little team activity exists. At this point a definition for decision making should be formulated. One simple definition: Decision making is the process of choosing a specific course of action from among many alternatives and determining ways and means (problem solving) for accomplishing the course of action decided.

The most common method of problem solving is known as the scientific method. It is a means of bringing order to the solution of a problem. Here are two approaches, both using the scientific method: one complex, for complex problems, the other simple for simple problems. The more complex one follows. It is difficult to set up a standard procedure of analysis that will be suitable for every problem. A checklist of things to look for can be helpful, and a series of questions can also be used as a reminder of areas to investigate.

Questions for consideration:

1. Have all critical factors been evaluated?

2. Are all requirements of the individual and the group being met?

3. Is the leadership and organization adequate to maintain control and to carry out plans and strategy?

4. How are the activities to be governed?

5. How does the organization propose to meet objectives?

6. Why does the organization exist?

7. What are the critical factors?

8.Will the decision cause the furtherance of the objectives?

In very complex problems, all of the critical factors would be involved; it would be necessary therefore to include them when the diagnosis is

How are the activities to be governed?

The analysis begins with sizing up and continues on to objectives, policy, and ending with decision making. A center is critical or not depending upon the scope of the problem and its relationship to the other diagnostic centers; that relationship being indicated by the connections or paths between them.

This is an approach to analysis which has some flexibility, an analytical framework, a way of thinking about the relationships between the various factors that bear upon the success of the organization.

1. SIZING-UP: As one sets out on the diagnostic cycle, you should size up the situation first by deciding what areas are to be analyzed and in what order. Analysis centers that seem to be critical should be identified at the beginning. This is the preliminary determination of procedure that can be altered as the analysis proceeds. The purpose of selecting diagnostic centers is to aid in gaining an overview of the total situation and in deciding what approach to take so that problems can be pin pointed and resolved efficiently.

In this process it is important to understand that some problems require a complete examination of every factor and, therefore, need to be subjected to the complete diagnostic cycle, while others are only concerned with part of the diagnostic process. Less critical centers are passed, and only the critical centers such as Leadership, Organization, and Interpersonal Behavior, which are essential to the decisions, are included. On the other hand, in a problem on control it may be found that the factors have important implications in the area of objectives, policy, planning and strategy. Here the diagnostic path would not include leadership, organization and interpersonal behavior. In this phase, there is an examination of the evidence so that the relationship of facts may be determined, some pre judgments on possible cause and effect situations may be made, and decisions on what additional information or facts would facilitate the decision-making process may be made. Which of the diagnostic centers should be considered first? Sizing-up is the initial move to determine the answers.

2. OBJECTIVES: Why does the organization exist? What are the objectives of the organization? Is there a general recognition of, or agreement on, the organizational objectives? Should the objectives be adjusted or changed? Is the organization now embarked upon a course of action that will meet the objectives?

The objectives of an organization must be defined in workable or useful terms so that they can be related to decisions. Broad definition can be somewhat useful. More helpful, however, is the definition of objectives in specific terms inclusive of services, quality and the like. Thus if the original question, "Why does the organization exist?" is repeated, the specific answer is, "To offer a unique type of service." Objectives are not sacred; they can be flexible to meet the dynamics of the organizational environment.

3. POLICY FORMATION - PLANNING STRATEGY: Part of the diagnostic technique is to determine whether fundamental policies are involved--whether the present policy is adequate or appropriate or whether a formal policy exists at all. Policy, in fact, should be consistent with the objectives.

1.They establish the general ground rules for meeting
the objectives.

2. They should be related to the objectives.

3. They should not be formulated in a vacuum.

4.They should not be altered without determination of the effects upon the objectives.

5.If the objectives are changed, then the policy should be reviewed.

6.The interrelationships between objectives and policy are direct and critical.

7.When policy and objectives are at odds, the true desires of the organization are not represented.

Once objectives are confirmed and compatible policies established, the organization is ready to examine the planning and strategy used to carry out the policies.

1. How does management propose to meet the objectives?
2. What is the strategy to be used?

3.What plans are being made to effectively use
organizational resources?

Strategy is dependent on available resources and is controlled by the manager. Planning is the determination of how best to carry out the strategy.

4. CONTROL COMMUNICATION: The control and communication networks of an organization are as the nerves to the human body.

Attempt to answer the following:

1. How are the activities of the organization to be governed?

2. What techniques and devices have been established so that the manager will know what is going on in the organization?
The following situations can be apparent:

1.In some situations, management is oblivious to the need for
control and communication.

2.In some instances, management may assume that controls
or communications are operating when actually they are not.

3.Finally, the controls may be so confining that the plans and
strategies cannot be effected.

The communications aspects are elusive and more difficult to evaluate even though they are an integral part of the control system within an organization.

Types of Communication (The Network):

1. Reports, written memoranda, official notices.

2.Informal conversations, the grapevine. (more effective in control systems than written word).

3. Wordless action, feedback, lack of communication, action operational.

4. Evaluate the financial resources and cost.

CONSIDER THE HUMAN FACTOR WHEN RECOMMENDING CHANGES. Other areas for consideration will surface. Each area must be related to the other, with a continual assessment of the best combination. The decision must finally be made based on the various possibilities that have been developed in the analysis. The decision-making process is sometimes described in terms of models that contain inputs, variables, and outputs.

This means that the results or outputs of a decision are not always predicted; they will vary from what is anticipated because of the variables. Once the decision has been made, one should size up the situation again to make certain that vital information has not been omitted. However, changing variables may be the problem that demands a management decision, at which point the whole or a part of the diagnostic procedure should be repeated.

The more simple approach, which incorporates much of the information in the more complex approach, has four basic steps.

The basic steps are:

1. Locate and define the problem.
2. Formulate hypotheses.
3. Classify, collect and analyze data.
4. Draw a conclusion.

When a new system or procedure is introduced without explanation, the action may be interpreted by employees based on their personal frames of reference; and the manager is subject to base decisions or misinterpreted communications. The controls and communications involved should be examined to determine their adequacy and to see if they are appropriate.

Appropriateness is determined by:

1. The controls aiding in carrying out the plans and strategies.
2.Their suitableness for the existing organization and leadership.

5. LEADERSHIP - ORGANIZATION: Are the leadership and organization adequate to maintain control to carry out the plans and strategy? Control and communication are so closely integrated that there may be difficulty in deciding which center should be diagnosed first. It could be that it is futile to investigate controls and communications without relating them to the organization.

Under consideration are:

1. Line-staff relationships.

2. Informal organization arrangements.

3. Spans of control.

4. Centralization versus decentralization.

5. Delegation of responsibility.

6. Authority.

7. Democratic versus autocratic leadership.

8. Other aspects of organization and leadership.

Significant to the process are the following questions:

1.Is the organization structure best for the types of controls desired?

2.Are communications facilitated or restricted by the structure?

3.Are the controls established mainly in the chief executive officer's hands?

4. Are there regulatory devices all through the organization?

6. INTERPERSONAL BEHAVIOR: Here a diagnosis of the human element is carried on. Established by people and operated by people, these factors are the least predictable and spell the difference between success or failure of an organization. The human element affects the decisions. In the area of human behavior, the logical decision may be the incorrect decision; this is the case when one makes decisions that involve the human factor.

7. SOCIAL AND ECONOMIC SETTING: The external environment--those things outside the organization setting--is an integral and important part of the analysis.

Environment inclusions:

1. Legal requirements as established by laws.

2. Social mores of society.

3. Economic conditions.

The external environment surrounds the organization, and since the organization is dependent on society, it must continuously refer to the outside world. The social and economic setting constitute an eighth critical center. As the analysis is done, one finds paths leading out to the center--continuous deviations from the internal diagnostic cycle to the external critical center. As shown in Figure 3, Critical Diagnostic Centers and Paths affects the various critical center.

The objectives should be compatible with the external environment. It is critical to check on the outside forces. Direct attention from each specific diagnostic center looks outside for conditions and situations in the environment that affect the ultimate decision.

8. DECISION MAKING: When making an analysis, one should keep the outcome in mind--a recommendation for action. The analyzer should pause at each critical center to see if there are facts and other information that will aid in making the decision. The analysis process includes asking the appropriate questions as seen on the diagnostic diagram.

In addition related factors should be examined.

1.Assess risks involved in one course of action as compared with another.
2. Predict obstacles to making the various plans.

Locate and Define the Problem: Problems grow out of a need or difficulty that someone observes as experience, and often this need or difficulty is experienced in attempts to solve other problems. The problem must be defined and located.

Formulate Hypotheses:Hypotheses are tentative solutions to a problem. They give a sense of direction in an attempt to solve the problem. In many instances, one hypothesis will be substituted for another.

Collect, Classify and Analyze Data: The value of a study depends upon the effectiveness and objectivity with which data are collected, classified, and analyzed. When data have been classified, it must be analyzed and interpreted to determine whether it substantiates or refutes the hypothesis. If it does not, then the hypothesis must be discarded and another formulated. The collection of additional data must be undertaken in an effort to see if the rejection of the hypothesis is truly the proper course of action.

Draw Conclusion: This is the final step in the solution of a problem. The critical element is the stating of the conclusion which agrees with the data. This step also requires considerable examination and study.

Step I:Clearly and completely identify the current issues, problems, or questions.

Step II: List all the facts/information pertinent to each of the above.

Step III:List the critical problem, issue, or question demanding immediate attention.

Step IV:List the alternative courses of action and the advantages and disadvantages of each.

Alternative A:

Alternative B:

Alternative C:

Step V:Draw conclusions, make recommendations/decisions (justify your position).

Step VI:What is the fundamental management problem, issue, or question underlying the current problem?

Alan L. Joplin serves as a faculty member in the Departments of Sociology and Coor. Special Needs, Scott Community College/Eastern Iowa Community College District-Davenport, Iowa.

Original file name: manprim - converted on Thursday, 19 June 1997, 15:13