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Part IV has a separate section on group dynamics and leadership, which the teacher may wish to consider when discussing the function of motivation.

Part V is intended both to introduce new topics and to summarize what the reader has learned from previous chapters. Chapter 19 deals with human factors and management issues human resources. Chapters 20 and 21 discuss management operating activities organization that plays a critical role in its performance. In Chapter 22, we will summarize what we have learned about effective management, and show how a holistic approach can improve business performance in the future.

Thanks

First of all, we would like to especially thank for the valuable contribution to this publication the Dean of the School of Business. Franklin Purdue at Salisbury College Timothy S. Mescon. He wrote the original version of the chapter on strategic planning and the part of Chapter 10 on implementation and control in planning. We are also deeply indebted to Richard G. Dean and Thomas B. Clarke of Georgia State University for their invaluable contributions to two new manufacturing chapters. David Bruce from the same university has been very helpful in highlighting international and global business issues. You will find his materials in different chapters of this book. Many thanks also to Claudia Rawlins of the University of California (Chico) for their help.

I would like to express my gratitude to the people who provided the most interesting case studies 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 thanks a lot to everyone who, at various stages of preparing the manuscript, read it and gave useful advice for its improvement.

Michael X. Mescon

Michael Albert

Franklin Hedouri

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 are waiting for your comments and look forward to them. You can send us paper or email, or simply visit our Web server and leave your comments there. In a word, in any way convenient for you, let us know if 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:

Addresses for letters from:

Russia: 115419, Moscow, PO Box 783

Ukraine: 03150, Kyiv, PO Box 152

Part I. Elements of organizations and management

So, we are going on an exciting journey. A significant part of the territory under study will be unfamiliar to you or even contradictory to what we, how to us Seems, we know. The limited time and space of the book further complicate matters. But despite these problems, the final 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 the journey will be more successful if the traveler imagines what awaits him. And our case is no exception. Just as people study a map of a country before setting out in a car, we will begin in Chapter 1 with general description organizations, their meaning and the nature of management. In Chapter 2, we will discuss management development, which is the main theme of this book.

When you hit the road, of course, you want to make sure that your car is in perfect 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, such as whether there are gas stations along the route and what the condition of the roads is. Similarly, the manager of the organization must understand and consider how critical factors, or elements of the company, and external forces that affect her. With elements of an 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.

2. Andrushkiv and in. Fundamentals of management. World - Lviv, 1995

3. Management of the organization / Textbook, ed. Z.P. Rumyantseva, N.S. Salomatina, INFRA-M: 1997

4. Goldstein G.Ya. Fundamentals of Management: Lecture Notes. Taganrog: TRTU, 1997, 235p. Second revised edition.

5. Practical management. Methods and techniques of the leader's activity / Auth.-comp. N.Ya. Satskov. - D.: Stalker, 1998. - 448 p. (Series "Business Literature")

Glossary of basic terms

Management- this is the ability to achieve goals, using labor, intelligence, motives for the behavior of other people. Management is the science of managing an organization.

Control(management) is the process of planning, organizing, motivating and controlling necessary to formulate and achieve the goals of the organization.

Organization is a group of people whose activities are directed by a manager in order to achieve common purpose.

Manager- a specialist with special knowledge and skills, professionally engaged in management in a particular area of ​​the organization.

System is a collection of interconnected elements that interact with each other and external environment to achieve the set goal.

industrial enterprise - a system in which workers use the means, objects of labor, technology and information to produce products.

External environment- the environment of the organization, that is, a set of elements that are not part of the organization, but have an impact on it or affect the process of its work.

Target is a future-oriented desired state of the control object.

Mission- the main overall goal of the organization, which clearly expresses the reason for its existence, indicates the direction in which the organization must move to achieve its goals at different levels.

Principles- these are the basic rules that guide managers in the management process, taking into account the existing socio-economic conditions.

Methods - This possible ways the influence of the subject on the object.

managerial function- this is a set of objectively necessary, steadily recurring actions or works, united by the uniformity of content and target orientation.

Planning - This is a type of management activity aimed at determining the goals of the organization and ways to achieve these goals.

Organization- this is a rational combination in space and time of all elements of production for the successful achievement of the goals of the enterprise.

Motivation- this is the motivation of the collective and its individual employees to labor activity aimed at achieving the goals of the enterprise

Control - managerial activity, which is reduced to a comparison (comparison) by the manager of the planned indicators of the enterprise and the actual results obtained.

Organizational structure management (OSU) is a set of elements with functions and powers defined for each of them, which reflects the relationship between the elements.

Working Time Photo (FW)- a method of studying working time by observing and measuring its duration during the working day. This is a type of observation in which all, without exception, the cost of the performer's time for a certain time of work is measured.

Management decision- this is the choice of an alternative, carried out by the head within the framework of his official powers and competence and aimed at achieving the goals of the organization.

Leadership style- this is the usual manner of behavior of the leader in relation to his subordinates with the aim of influencing them or inducing to action (completion of tasks).

Educational edition

Lysenko Tatyana Ilyinichna

Alekseenko Inna Anatolievna

MANAGEMENT

Tutorial

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Michael H. Mescon, Michael Albert, Franklin Hedouri
Fundamentals of Management

© Williams Publishing House, 2006

© 1988 Harper & Row Publishers, Inc.

* * *

Foreword

teacher

The main purpose of the book Fundamentals of Management- to provide the reader with basic information about formal organizations (commercial and non-commercial, large and small) and how to effectively manage them. An effective manager always considers situational differences and, in 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 a single conceptual approach, such as management processes. But, from the point of view of the authors of this book, such a narrow approach does students a disservice. And for long years many teachers could be convinced that our book satisfies both their needs and the needs of their students.

Preparing for the release of this third edition, we tried to take into account the opinion of teachers who use Fundamentals of Management 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 that preserves everything that brought her great success in the past. 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 the best fit for the real world and the most useful for students. We do not use the findings of any one school to unify the 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 necessarily consider 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), and also 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 seek 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 this or that aspect of the organization's activities, the reader must have at least a basic understanding of all functions and variables. Essentially, this book presents the same topics as most other well-known management textbooks, but the discussion is in a different order. In essence, our approach to material organization is based on wise saying Alfred Chandler - "Strategy defines structure." The discussion of the topics is organized by the authors in such a way as to achieve the main goal - to ensure that readers understand the need to consider the organization as a whole, and that the relationship between all elements and variables must be taken into account when making and implementing any decisions. The very structure of this book clearly reinforces the most important idea, the essence of which is that the theory and practice of management are evolutionary in nature and that even generally accepted concepts may need to be changed.

book structure

Part I of this edition includes five chapters: an overview of the book, a chapter on the evolution of management theory and practice, a chapter on the basic internal variables of an organization as an open system, and external factors environment that affect the success of an organization, as well as a new chapter on such an important topic as Social responsibility and ethics.

A detailed discussion of managerial 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 allows us to emphasize the need for an integrated approach to management problems and helps readers understand the importance of situational factors. However, this part is presented in such a way that teachers who prefer to start with management functions can easily go their own way.

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

Part IV has a separate section on group dynamics and leadership, which the teacher may wish to consider when discussing the function of motivation.

Part V is intended both to introduce new topics and to summarize what the reader has learned from previous chapters. Chapter 19 deals with human factors and human resource management issues. Chapters 20 and 21 discuss how an organization's operations are managed, which is critical to organizational performance. In Chapter 22, we summarize what we have learned about effective management and show how a holistic approach can improve business performance in the future.

Thanks

First of all, we would like to especially thank for the valuable contribution to this publication the Dean of the School of Business. Franklin Purdue at Salisbury College Timothy S. Mescon. He is the author of the original chapter on strategic planning and the part of chapter 10 on implementation and control in planning. We are also deeply indebted to Richard G. Dean and Thomas B. Clarke of Georgia State University for their invaluable contributions to two new manufacturing chapters. David Bruce from the same university has been very helpful in highlighting international and global business issues. You will find his materials in different chapters of this book. Many thanks also to Claudia Rawlins of the University of California (Chico) for their help.

I would like to express my gratitude to the people who provided the most interesting case studies 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 preparation of the manuscript and gave useful recommendations for its improvement.

Michael X. Mescon

Michael Albert

Franklin Hedouri

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 are waiting for your comments and look forward to them. You can send us a paper or e-mail, or simply visit our Web server and leave your comments there. In a word, in any way convenient for you, let us know if 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]

WWW: http://www.williamspublishing.com

Addresses for letters from:

Russia: 115419, Moscow, PO Box 783

Ukraine: 03150, Kyiv, PO Box 152

Part I. Elements of organizations and management

So, we are going on an exciting journey. A significant part of the territory under study will be unfamiliar to you or even contradictory to what we, how to us Seems, we know. The limited time and space of the book further complicate matters. But despite these problems, the final 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 the journey will be more successful if the traveler imagines what awaits him. And our case is no exception. Just as people study a map of a country before driving across it, so we begin in Chapter 1 with a general description of organizations, their meaning, and the nature of management. In Chapter 2, we will discuss management development, which is the main theme of this book.

When you hit the road, of course, you want to make sure that your car is in perfect 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, such as whether there are gas stations along the route and what the condition of the roads is. Similarly, the manager of the organization must understand and consider how critical factors, or elements of the company, and external forces that affect her. With elements of an 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 autotravel. Any experienced driver understands that his car can become a source of danger. Security issues worry him no less than questions technical efficiency cars. Similarly, the manager of an organization must take into account its impact on society. Chapter 5 is devoted to this topic.

Chapter 1 Organizations, Managers, and Successful Management

In our dynamic time, managing an organization is a difficult task; it cannot be successfully solved by template formulas. The manager needs to know and understand general rules and at the same time take into account a huge variety of different variables that distinguish situations in the field of management. In this chapter, we will present 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: efficiency, effectiveness and productivity. Our goal is to create a basis for further discussion and show the general direction of our movement. As you read this chapter (like everyone else), you should try not just to remember the definitions of the main concepts, but to understand their essence.

After reading this chapter, you should be able to understand the terms and concepts listed at the beginning of this chapter.

Situation 1. How to win a computer game

Realizing that the computer business has a great future ahead, the two firms decided to compete. 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. Company B has just two college dropouts whose electronics experience is limited to selling illegal toll-free long distance devices. Starting development, they do not spend a cent on research. Their initial venture capital is $1,300 from the sale of a Volkswagen bus and a pocket calculator. Their office is in the bedroom of one of the partners, and the assembly line is in the garage. Which firm will be more successful?

The answer is obvious: firm A, in our example - RCA Corporation. But you hardly saw her computers, because in 1976, after losing more than $ 300 million, she curtailed her computer production. And firm B became Apple Computer Products, which in 1982 set a record by entering the Fortune 500 list just 6 years after its inception.

Situation 2. Big name in retail

The firm is a pioneer in marketing and retail; she was the first to develop and purchase goods taking into account the wishes of consumers. She owned the first department store, which was the first to sell new idea– offer the buyer a wide range of products, most of which are made according to the company's own specifications. She is known for her "We refund, no questions asked" 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 perfectly applicable to this largest retail chain in the US, it is not the correct answer. This is a Japanese company Mitsukoshi. Founded in 1650, it has become Japan's largest retail trading network, 250 years earlier Sears started using the advanced techniques described above.

Situation 3. How to take a steep climb

Imagine that the yard is in the 1960s, and you, a student Faculty of Economics Yale University, write a term paper and propose to create an airline that will deliver small packages across the United States in one day. Your dream company should become a competitor UPS and the US Postal Service. You plan to force these powerful competitors out of business, although, according to preliminary estimates, your company will charge 40 times what they charge for delivering packages over the same distance. How do you think you would be graded for your work?

Most likely, not higher than the top three - just for the efforts. This is how the “absurd” work of Frederick W. Smith was evaluated, which, in fact, became the project of the corporation Federal Express. Smith could challenge that estimate, but he's too busy running a company that brings in $600 million a year and guarantees millions of packages a year to be delivered within 24 hours. He doesn't even have time to spend the $58 million he made in his year as CEO American corporation with the highest salary.

Like RCA in situation 1, this firm is a giant corporation aiming to take over most of the computer market. Her image in society is even more conservative than the image RCA. Until recently, the firm had a rule that all male employees, even repairmen, had to wear white shirts and ties to work. In her 75 years in business, she has never been considered a technology leader. But while its products aren't state-of-the-art, the firm charges almost 25% more than its competitors. It does not set high mandatory sales targets; on the contrary, these figures are so small that almost all employees receive a bonus. Moreover, the firm instructs its salespeople to try to charge customers as much as possible. less money. To this end, the company sometimes resorts to such sentimental methods: renting a stadium, sellers run out onto the field, and their names and sales figures are indicated on the information board. Does this firm have a chance to compete successfully in computer business with monsters like 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 And IBM. The company described above is, of course, IBM. And when PC sales IBM rapidly took the first place in the industry and it cut off a solid piece of sales Apple, it became clear that the assessment of Mr. A. S. Markkula, alas, was absolutely correct.

Situation 5. Food for thought

Here are two firms working in the restaurant business. The first is in an old building in the old part of the city, and not even on the first floor. The food and service here are excellent, 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 volumes and heated before serving to customers. The company is located in the newest part of the city and actively advertises its services. Who is more likely to succeed?

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 from the windows of which a magnificent view of the Notre Dame Cathedral opens, best restaurant in the world. But most people are more familiar with another institution restaurant business, which sells hamburgers under golden arches all over the world.

Situation 6. Obvious truths

According to the Declaration of Independence, "we hold to certain self-evident truths." This applies to management and to our time. It is clear that the world is rapidly changing, and in order to survive, we must also change. Therefore, managers need to be able to make decisions quickly. There is no doubt that one person cannot be the immediate superior of thousands of subordinates. However, the leaders of one organization do not consider all these truths to be obvious. When it comes to policy change, even compared to the terrible 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 trends. He issues verdicts without consulting mere mortals, and expects their unquestioning execution. We say "he" here, not "she" because explicit sexual discrimination precludes the very possibility of a woman reaching such a high position in this organization. In the light current trends could this organization even dream of surviving the 1980s?

No one is allowed to know their future. But if an organization has managed to survive and flourish for 2000 years, this is a serious 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 giant IBM made hundreds of millions in the computer business, and RCA did it fail? How Federal Express achieved best service than the US Postal Service, which has far more resources and government support? How MacDonald's manage to sell millions of hamburgers for a small price every year and make huge profits, while most restaurants can only feed a few hundred customers a day? Why Sears And Mistukoshi have been leading the retail trade in their countries for many years, while others have gone bankrupt? Why has the Catholic Church been flourishing for 2,000 years when its policies could bring down any other company in just a few hours?

Management arose precisely because people have always sought to understand the reasons for the success and failure of organizations. Scientists are constantly looking for the answer to this question by trial and error. To answer it, you need 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 firm. For example, one might say that RCA was wrong in trying to compete directly with IBM. But DEC, Data General And honneywell also compete with IBM and they were quite successful. We still have to repeatedly make sure that the explanations lie on the surface, but then it turns out that they are erroneous or imperfect.

The absence of easy answers does not mean that success cannot be explained and that there are no specific methods to achieve it. There are many techniques, procedures and concepts that have proven to be effective. The lack of easy answers only means that there are no methods that will work for everyone and at all times, and that what worked in the past may not work in the future. Henry Ford's concept of mass production of 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 insisting on the Model T when General Motors started offering cars to buyers 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.

All the examples described above have one common characteristic, which also Brownie Troop 107, King's ranch in Texas, Mount Sinai Hospital, Sony, Harper & Row Publishers, DPRK, General Motors, US Navy and your college. All of these are organizations. Organization is the basis of the world of managers and the reason for the existence of management. Therefore, we will begin the study of management with a discussion of what an organization is and why it should be managed.

What is an organization

1. Having 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.

Combining these requirements, we get an important definition.

Organization - a group of people whose activities are consciously coordinated in order to achieve 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, i.e., groups that arise spontaneously, but their members regularly interact with each other. Informal organizations exist in all formal organizations, except for very small ones. They do not have managers, but they are so important that we have 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

The above definition states that an organization always has at least one purpose that is shared and recognized by all its members. But formal management rarely deals with organizations that have only one purpose. In this book, we look at management issues complex organizations that have a set interrelated goals.

Here is a simple example: McDonald's- it is an organization of more than 7,000 individual businesses, supported by many departments working behind the scenes: they build restaurants, do advertising, buy products, and carry out quality control. Every establishment McDonald's has its own sales and profit plans. Each subdivision also has its own goals, such as buying beef at competitive prices. All these goals are interrelated and interdependent. For example, a restaurant can only achieve its profit targets if the purchasing department achieves its goals and provides the restaurant with enough buns for right price; if the marketing department generates a sufficient influx of customers, technologists will find a way to effectively prepare dishes, etc. The main reason why the company McDonald's managed to become a global leader in its business lies in the fact that it not only effectively manages its units, but also managed to effectively and efficiently establish the relationship between their goals.

General characteristics of organizations

In addition to being groups with a set of interrelated goals, complex organizations also have a number of general characteristics. These characteristics, summarized below, help to understand why an organization must be managed in order for it to succeed.

Resources

In general terms, the goal of any organization is to transform resources to achieve certain 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 production organizations, but service and non-profit organizations also use all these types of resources. In table. Table 1.1 lists the resources that are used in the organizations described in the situations above.

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

Apple And IBM use stockholder and bank funds (capital) to buy parts (materials), to build assembly lines (technology), and to pay factory workers (humans) to produce computers and sell them at a profit (outcomes). Informational resources are used to communicate and coordinate all phases of the conversion process. Market research insights help executives Apple And IBM decide which product has a chance of being liked by consumers. Communicating with the workers, they receive the information necessary for the qualitative solution of the problem. Sales rate and volume data allows managers to decide how well their company is moving towards its desired goals. It is the awareness of the importance of information as a type of resource that is responsible for the rapid growth of firms specializing in information processing, for example Apple And IBM. Information is acquired and disseminated through communication, as detailed in Chapter 5.

Dependence on the external environment

One of the most important characteristics organization is its relationship with the external environment. No organization can exist independently. It is completely dependent on the world around it, because from it it receives the necessary resources, and in it there are consumers of the results that it seeks to achieve.

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

No less important is the fact that 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 can in no way prevent the federal government from raising the minimum wage, even though 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. Firms have to compete in foreign markets and resist competition foreign companies in their countries. To do this, they must understand the whole set of new laws and the cultural values ​​of other countries. Of great concern, for example, is the fact that very few US companies have entered the Japanese market so far, for example Coca Cola And McDonald's, while Japanese firms have firmly established themselves in the American electronics and automobile markets.

Horizontal division of labor

Perhaps the most distinguishing characteristic of organizations is division of labor. If at least two people work together towards a common goal, they must share the work among themselves. The division of labor into its component parts 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 much more output than if the same number of employees worked on their own. For example, McDonald's, dividing the activities of preparing even the simplest dishes and serving customers between a dozen employees, serves hundreds of times more people a day than a traditional restaurant.

In small organizations, the horizontal division of labor is often implicit. Owners of small restaurants, as a rule, cook their own food and serve customers. But in most complex organizations, there is a horizontal division along which their interrelated goals can be clearly traced. For example, the classic model for such a division of labor in a manufacturing firm is the distinction between production, marketing, and financial functions. These are the main activities that must be successful if the firm is to achieve its goals.

Subdivisions

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

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

Rice. 1.1. Business College Divisions

If the department of management, which is an organization in itself, does not achieve its goal, then neither can the college as a whole.

Vertical division of labor

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

© Williams Publishing House, 2006

© 1988 Harper & Row Publishers, Inc.

* * *

Foreword

teacher

The main purpose of the book Fundamentals of Management- to provide the reader with basic information about formal organizations (commercial and non-commercial, large and small) and how to effectively manage them. An effective manager always considers situational differences and, in 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 a single conceptual approach, such as management processes. But, from the point of view of the authors of this book, such a narrow approach does students a disservice. And over the years, many teachers have been convinced that our book satisfies both their needs and the needs of their students.

Preparing for the release of this third edition, we tried to take into account the opinion of teachers who use Fundamentals of Management 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 that preserves everything that brought her great success in the past. 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 the best fit for the real world and the most useful for students. We do not use the findings of any one school to unify the 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 necessarily consider 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), and also 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 seek 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 this or that aspect of the organization's activities, the reader must have at least a basic understanding of all functions and variables. Essentially, this book presents the same topics as most other well-known management textbooks, but the discussion is in a different order. In essence, our approach to the organization of material is based on the wise saying of Alfred Chandler - "Structure determines the strategy." The discussion of the topics is organized by the authors in such a way as to achieve the main goal - to ensure that readers understand the need to consider the organization as a whole, and that the relationship between all elements and variables must be taken into account when making and implementing any decisions. The very structure of this book clearly reinforces the essential message that the theory and practice of management are evolutionary and that even commonly accepted concepts may need to change.

book structure

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

A detailed discussion of managerial 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 allows us to emphasize the need for an integrated approach to management problems and helps readers understand the importance of situational factors. However, this part is presented in such a way that teachers who prefer to start with management functions can easily go their own way.

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

Part IV has a separate section on group dynamics and leadership, which the teacher may wish to consider when discussing the function of motivation.

Part V is intended both to introduce new topics and to summarize what the reader has learned from previous chapters. Chapter 19 deals with human factors and human resource management issues. Chapters 20 and 21 discuss how an organization's operations are managed, which is critical to organizational performance. In Chapter 22, we summarize what we have learned about effective management and show how a holistic approach can improve business performance in the future.

Thanks

First of all, we would like to especially thank for the valuable contribution to this publication the Dean of the School of Business. Franklin Purdue at Salisbury College Timothy S. Mescon. He is the author of the original chapter on strategic planning and the part of chapter 10 on implementation and control in planning. We are also deeply indebted to Richard G. Dean and Thomas B. Clarke of Georgia State University for their invaluable contributions to two new manufacturing chapters. David Bruce from the same university has been very helpful in highlighting international and global business issues. You will find his materials in different chapters of this book. Many thanks also to Claudia Rawlins of the University of California (Chico) for their help.

I would like to express my gratitude to the people who provided the most interesting case studies 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 preparation of the manuscript and gave useful recommendations for its improvement.

Michael X. Mescon

Michael Albert

Franklin Hedouri