Jan 18, 1990


When management is using resources to ac

Here we focus on decision making as an essential characteristic of the management job, but, we are able to identify one aspect of recent technological advance which is already leading to changes and could result in more dramatic ones in the years ahead. The major problem of the chapter, consequently, will be with (1) the nature of the newest information technology, centering in its well publicized tool, the computer; and (2) the ways in which technological change in this area may influence organization construction, management and managers.

The essential task of management is to direct the usage of resources physical, fiscal, and human in order to attain defined objectives. In private company the goal is profit. In public company as well as in non-profit organizations there are other targets. But in each situation there is a comparable direction responsibility for directing resources.

This concentration of power could come with significant operating disadvantages. Since information needs to go along lengthy coverage channels, decision making may be slow. Because the deciders are deprived of direct contact with running difficulties at their sources, decision making may be inflexible, marked by the lack of subtle and dynamic response to unique issues.

The level or horizontal construction necessitates much decision making at lower levels, near the operating issues. This facilitates quick reply and flexible adjustment to dynamic and innovative scenarios. These gains may, of course, be accompanied by lower quality of operation resulting from the positioning of responsibility in the hands of supervisors of limited expertise and competence, or with a narrow view of the interests of the business in general and also the complicated interrelations of its parts.

When direction is using resources to achieve goals, what exactly does it do? It carries on two connected types of activities: (1) makes decisions about resources, and (2) implements those decisions. It determines to invest cash to obtain materials, machines, and individuals to build a plant of a decided size and embodying a determined technology, ready for operation in a determined time and place, to bring out a decided merchandise at a determined rate. Having made this group of conclusions, it performs them. The plant built and working, management runs it. This requires repetitive conclusions about rates of generation and employment, and about inventory levels in regard to market demand. From time to time technological developments require judgements about new machines or new stuff. Developments in market demand or in the activities of opponents compel determinations bearing on product design or price. Once made, these have to be implemented.

In a small and simple situation, the conclusions are created by one man, who also takes responsibility for his or her implementation. In a sizable and complex scenario, many supervisors are needed. As Adam Smith observed in 1776 with respect to the production of pins, large scale operations create opportunities for increases in efficiency through specialization in comprehensive parts of a single action and similar chances are presented for specialization in the decision making function. To get the benefits of specialty without confusion, it is necessary to design organizational relationships in decision making, identify the limits of obligation for the component parts, and lay down criteria for performance.

Neither the scale nor the process of creation has essential definitional relevance for the jobs of management. A totally automated plant composed of programmed machines running without human direction or intervention would decrease the job of the personnel manager with respect to factory Labour. But it could extend his job regarding the recruitment and administration of specialized folks.

To understand the process of management, but, we have to go one step further. We must answer the question: what's involved in making decisions? A normally acceptable description of the process would identify three consecutive steps: first, finding occasions for making a decision; second, identifying alternative potential courses of action; third, selecting among the alternatives. While differing in impact at consecutive levels in the hierarchy, all these would be the components of your decision process for the corporation president as well as for the very first line manager.

The quality of both information as well as the processing of it determines the grade of the decisions. By quality of information we mean such factors as relevance, precision, completeness, timeliness. From the quality of information processing we mean such variables as accuracy, rate, ability to handle complex relationships, flexibility, and possibility for codification in standard rules. We're additionally concerned with such human characteristics as courage, imagination, and drive. However, these are past the range of the investigation. Rational organization structure is the product of purposeful design that creates a hierarchy of authority and duty related at each amount to the task of processing information to be able to generate and execute decisions. Navigating To 2711p-t7c4d6 likely provides cautions you should give to your cousin. The vertically peaked structure funnels info to the higher degrees. To learn additional info, consider peeping at: 2711p-t7c4d8. In organizations with this type most decisions are made by top management, and delegation of decision making is practiced just for routine difficulties. Decision making is put where the largest possible amount of advice could be fed to those who possess maximum experience, competence, and duty.

Organization structures are not designed solely for making determinations. Managers additionally carry them out. Get new resources on our related website by visiting 1791-16ac. Good organizations take into account the special requirements of implementation. We should also understand that not all organization layouts are good with respect to either decision making or decision execution. But the usage of information for decision making must be a formative influence in powerful layout of structure and process..

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