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Management
anagement Thought
Thought
11
Discussion
Discussion Outline
Outline
An Introduction to Management
Kinds of Managers
Basic Management Functions
Fundamental Management Skills
12
Management
Management
A form of work that involves coordinating an organizations
human, financial, physical and information resources
toward accomplishing organizational objectives.
Attainment of organizational goals in an effective and
efficient manner through planning, organizing, leading and
controlling organizational resources.
NOTE THESE CHARACTERISTICS:
Goal-driven
Activity is effective and efficient
Uses the four managerial functions
Copyright 2005 by Houghton Mifflin Company. All rights reserved.
13
What
What is
is Management?
Management?
A set of activities
planning and decision making, organizing, leading, and
controlling
14
Efficiency
Efficiency
versus
versus
Effectiveness
Effectiveness
Efficiency:
Operating in
such a way
that resources
are not wasted
Effectiveness:
Successful
Managemen
t
Source: Adapted from Van Fleet, David D., Contemporary Management, Second Edition.
Copyright 1991 by Houghton Mifflin Company. Used with permission.
Copyright 2005 by Houghton Mifflin Company. All rights reserved.
15
What
What is
is aa Manager?
Manager?
Someone whose primary responsibility is to
carry out the management process.
Someone who plans and makes decisions,
organizes, leads, and controls
human, financial, physical,
and information resources.
16
Figure
Figure 1.1
1.1
Kinds
Kinds of
of Managers
Managers by
by Level
Level and
and Area
Area
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Kinds
Kinds of
of Managers
Managers by
by Level
Level
Top Managers
The relatively small group of executives who manage
the organizations overall goals, strategy, and
operating policies.
Middle Managers
Largest group of managers in organizations
Implement top managements policies and plans.
Supervise and coordinate lower-level managers activities.
First-Line Managers
Managers who supervise and coordinate the activities
of operating employees.
18
Examples
Examples of
of Managers
Managers by
by Area
Area
Marketing Managers
Work in areas related to getting consumers and clients to buy the
organizations products or services.
Financial Managers
Deal primarily with an organizations financial resources.
Operations Managers
Concerned with creating and managing the systems that create
organizations products and services
Administrative Managers
Serve as generalists in functional areas and are not associated
with any particular management specialty.
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19
Management
Management in
in Organizations
Organizations
Planning
and decision
making
Organizing
Goals attained
Efficiently
Effectively
Controlling
Leading
110
The
The Management
Management Process
Process
111
The
The Functions
Functions of
of Management
Management
Planning
Setting an organizations goals and selecting a course
of action to achieve them.
Organizing
Determining how activities and resources are grouped.
Leading
Getting organizational members to work together to
advance the interests of the organization.
Controlling
Monitoring organizational progress towards goals.
112
Planning
Planning and
and Organizing
Organizing Involve
Involve
Planning
Environmental scanning and analysis
Developing a vision of the future
Setting long-term organizational objectives
Developing organizational and competitive strategies
Organizing
Defining tasks and duties
Grouping positions into effective structures (departments)
Clarifying authority, responsibility, and reporting relationships
Allocating scarce resources (financial, human, physical)
Staffing positions with qualified personnel
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Leading
Leading and
and Controlling
Controlling Involve
Involve
Leading
Effective communication
Inspiring others to do their best
Motivation and rewards
Trust and assurance
Controlling
Clear standards
Monitoring progress and results
Knowing when and how to intervene
Correcting deviations successfully
114
Skills
Skills and
and the
the
Manager
Manager
Technical Skills
Interpersonal Skills
Fundamental
Fundamental
Management
Management
Skills
Skills
Conceptual Skills
Diagnostic Skills
Communication Skills
Decision-Making Skills
Time-Management Skills
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Fundamental
Fundamental Management
Management Skills
Skills
Technical
Skills necessary to accomplish or understand the
specific kind of work being done in an organization.
Interpersonal
The ability to communicate with, understand, and
motivate both individuals and groups.
Conceptual
The managers ability to think in the abstract and to
see the big picture. To perceive how all the parts fit
together.
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33 Primary
Primary Managerial
Managerial Skills
Skills
(KATZ)
(KATZ)
Technical skills
Conceptual skills
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Fundamental
Fundamental Management
Management Skills
Skills (contd)
(contd)
Diagnostic
The managers ability to visualize the most appropriate response
to a situation.
Communication
The managers abilities both to convey ideas and information
effectively to others and to receive ideas and information
effectively from others.
Decision-Making
The managers ability to recognize and define problems and
opportunities correctly and then to select an appropriate course
of action to solve the problems and capitalize on opportunities.
Time-Management
The managers ability to prioritize work, to work efficiently, and to
delegate appropriately.
118
Management
Management Skill
Skill Mixes
Mixes at
at Different
Different
Organizational
Organizational Levels
Levels
119
Managerial
Managerial Activities
Activities
MINTZBERG
MINTZBERG
120
Key
Key Managerial
Managerial Roles
Roles (Mintzberg)
(Mintzberg)
Key
KeyManagement
Management
Roles
Roles
Interpersonal
Interpersonal
Roles
Roles
Informational
Informational
Roles
Roles
Decisional
Decisional
Roles
Roles
1.1. Figurehead
Figurehead
2.2. Leader
Leader
3.3. Liaison
Liaison
1.1. Monitor
Monitor
2.2. Disseminator
Disseminator
3.3. Spokesperson
Spokesperson
1.1. Entrepreneur
Entrepreneur
(Innovator)
(Innovator)
2.2. Disturbance
Disturbance
handler
handler
3.3. Resource
Resource
Allocator
Allocator
4.4. Negotiator
Negotiator
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Managerial
Managerial Success
Success Factors
Factors
Personal Factors
Abilities and skills
Motivation
Personality
Situational Factors
Nature of the work and environment
Relationships with subordinates and supervisors
Abilities of subordinates
Actions Taken
Appropriate for the situation?
Luck
Being in the right place at the right time?
Copyright 2005 by Houghton Mifflin Company. All rights reserved.
122
Management:
Management: Science
Science or
or Art?
Art?
The Science of Management
Assumes that problems can be approached using
rational, logical, objective, and systematic ways.
Requires technical, diagnostic, and decision-making
skills and techniques to solve problems.
123
The
The Importance
Importance of
of Theory
Theory
Most managers develop theories about how to run the organization
Management Models represents the real world and how it functions
Provides a framework for organizing knowledge & a blueprint for action
Helps us organize our knowledge
Tells us what to pay attention to and what to ignore
Helps us to understand why events occur (causal relationships)
Summarizes diverse findings and highlights relationships
Gives guidance about how to bring about positive change
124
Theories
Theories are
are derived
derived from
from
Observation and deduction
Personal experience
On-site observation
Archival records
Survey research
Interviews
Questionnaires
Experimentation
Laboratory
Field
Natural
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Research
Research Designs--Observation
Designs--Observation
POSITIVES
Probe one situation in great detail
A search for clues/causes of problems
Discovers unexpected relationships
Rich in optional explanations
NEGATIVES
Selective observation and limited recall
Researcher bias toward the dramatic
Data not easily quantified or recorded
Generalizations are difficult (impossible) to make
Time consumingwhen do you stop observing/gathering info?
126
Research
Research Designs--Surveys
Designs--Surveys
POSITIVES
Collect data independent of the researcher
Questions/info gathered can be standardized
Allows quantitative analysis of findings
Sampling of populations is possible (census isnt necessary)
NEGATIVES
Objectivity of responses?
Issue of non-responses
Identifies symptoms, not cause-effect links
Requires much expertise and time
127
Research
Research Designs--Experiments
Designs--Experiments
POSITIVES
Can infer cause-effect relationships
Can be repeatedchecked for consistency
NEGATIVES
Difficult to control all the variables (precision)
Timing of observations and measurements
Impact of the experiment on work productivity
Subject bias and loss
Generalizability to other organizations
128
History
History of
of Management
Management Through
Through the
the Ages
Ages
D Greeks
C Babylonians
G Venetians
B Egyptians
E Romans
A Sumerians
3000 B.C.
2500 B.C.
F Chinese
2000 B.C.
1500 B.C.
1000 B.C.
500 B.C.
A.D.500
A.D.1000
A.D.1500
129
Early
Early Management
Management Pioneers
Pioneers
Robert Owen (17711858)
British industrialist who was one of the first managers
to recognize the importance of human resources and
the welfare of workers.
130
Classical
Classical Management
Management Perspective
Perspective
Scientific Management
Concerned with improving the performance of
individual workers (i.e., efficiency).
Grew out of the industrial revolutions labor shortage
at the beginning of the twentieth century.
Administrative Management
A theory that focuses on
managing the total organization
rather than individuals.
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Scientific
Scientific Management
Management
Frederick Taylor (18561915)
Replaced old methods of how to do work with
scientifically-based work methods.
Eliminated soldiering, where employees deliberately worked
at a pace slower than their capabilities.
132
Steps
Steps in
in Scientific
Scientific Management
Management
133
Frederick
Frederick Taylor
Taylor
Work Experiments
Midvale Steel
Simonds Rolling Machine Co.
Bethlehem Steel
Pig Iron
Shoveling
Contributions
Time Study
Standards for Work
Job Specialization
Managerial Planning and Control
Worker Selection and Training
Incentives
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134
Others
Others in
in Scientific
Scientific Management
Management
Henry Gantt
Gantt Charts
Sliding Incentives for Workers
Incentives for Supervisors
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Summary
Summary of
of Scientific
Scientific Management
Management
Assumptions
Productivity is a primary workplace problem
Managers should plan and direct the work
Individuals are economically motivated
Contributions
Scientific or systematic study of work (time and motion)
Division of laborManagers vs workers
Setting of work standards (and job descriptions)
Careful selection and training of workers
Use of Incentives
Limitations
Social needs of workers overlooked
Many studies werent very scientific
Loss of self-control alienated workers
Group dynamics were ignored
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136
Administrative
Administrative Management
Management Theory
Theory
Focuses on managing the whole organization
rather than individuals
Henri Fayol (18411925)
Was first to identify the specific management functions of
planning, organizing, leading, and controlling.
137
Administrative
Administrative Theory
Theory Henry
Henry Fayol
Fayol
Functions of Management
Planning
Organizing
Commanding
Coordinating
Controlling
Principles of Management
Division of Labor (specialization)
Scalar Chain of Command (hierarchy of authority)
Unity of Command (only one superior for each worker)
Span of Control (number of subordinates supervised)
138
The
The Ideal
Ideal Bureaucracy
Bureaucracy Max
Max Weber
Weber
Division of Labor
Horizontal specialization
Hierarchy of Authority
Vertical specialization
Technical Competence
Selection and promotion
Impersonal Treatment
No favoritism
Centralized Decision-Making
Exceptions controlled from the top
Formalization
Documentation
139
Summary
Summary of
of Administrative
Administrative Theory
Theory
Assumptions
There is an ideal way to structure the organization and administer
the management processes necessary for organizational success
Management skills are generalizable
Contributions
Functions and Principles of management
Ideal Bureaucracy
Raised awareness of basic management problems likely to be found
in any organization
Limitations
Stressed a one-best-way of organizing and managing
Theories were based on intuition and observation rather than
empirical investigation
Principles are not applicable to organizations which exist in
turbulent environments
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140
The
The Hawthorne
Hawthorne Studies
Studies (19271932)
(19271932)
Conducted by Elton Mayo and Fritz Roethlisberger at
Western Electric
Illumination studies
Relay Assembly 1
Relay Assembly 2
Incentive Studies
Mica-splitting
Bank Wiring Room
Interview program
Discoveries at Hawthorne
Hawthorne Effect
Catharsis
Informal Group Influence
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141
Human
Human Relations
Relations Management
Management Views
Views
Assumptions
Workers are motivated by social relationships and needs
Satisfied workers are the most productive workers
Management needs strong social skills to be successful
Contributions
Grew out of the Hawthorne studies
The Hawthorne Effect and Catharsis attention given to workers
impacts their behavior
Influence of the informal group
Emphasized worker needs and motivation
Limitations
Happy, satisfied workers arent necessarily productive workers
Economics (money, wages) DOES affect work activity
Boring work isnt less so with friendly supervisor motivation problem
Suspicion that supervisor interest isnt genuine is this manipulation?
Should business be responsible for meeting ALL human needs on the
job?
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142
The
The Transition
Transition to
to Human
Human Resource
Resource
Management
Management
Abraham Maslow (1943)
Advanced a theory that employees are motivated by a
hierarchy of needs that they seek to satisfy.
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Theory
Theory XX and
and Theory
Theory YY
Theory X Assumptions
People do not like work and try to avoid it, so managers have to
control, direct, coerce, and threaten employees to get them to
work toward organizational goals.
People prefer to be directed, to avoid responsibility, and to want
security; they have little ambition.
Theory Y Assumptions
People do not dislike work; work is a natural part of their lives.
People are internally motivated to reach objectives to which they
are committed. People can be innovative in solving problems.
People are committed to goals to the degree that they receive
rewards when they reach their objectives.
People both seek and accept responsibility under favorable
conditions.
People are bright, but under most organizational conditions their
potentials are underutilized.
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144
Emergence
Emergence of
of Organizational
Organizational Behavior
Behavior
A contemporary field focusing on behavioral
perspectives on management.
Draws on psychology, sociology, anthropology,
economics, and medicine.
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Human
Human Resource
Resource Management
Management Views
Views
Assumptions
Interesting work motivates intrinsically
Workers are trustworthygive them responsibility
The Managers job is to challenge workers to develop their talents
Contributions
Theory X and Y
Participative decision-making and management
Job Enrichment and Job Redesign
Management by Objectives
More rigorously-tested theories
Limitations
Not everyone wants a challenging job
Complexity of individuals makes behavior difficult to predict.
Contemporary research findings are not often communicated to
practicing managers in an understandable form.
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146
Quantitative
Quantitative Management
Management Perspective
Perspective
Quantitative Management
Emerged during World War II to help the Allied forces
manage logistical problems.
Focuses on decision making, economic effectiveness,
mathematical models, and the use of computers to
solve quantitative problems.
147
Quantitative
Quantitative Management,
Management, Contd
Contd
Management Science
Focuses on the development of representative
mathematical models to assist with decisions.
Operations Management
Practical application of management
science to efficiently manage the
production and distribution
of products and services.
Quality Management
Statistical improvement models
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148
Quantitative
Quantitative Management
Management
Contributions
Developed sophisticated quantitative techniques to assist in
decision making.
Application of models has increased our awareness
and understanding of complex processes and situations.
Has been useful in the planning and controlling processes.
Limitations
Quantitative management cannot fully explain or predict the
behavior of people in organizations.
Mathematical sophistication may come at the expense of other
managerial skills.
Quantitative models may require unrealistic or unfounded
assumptions, limiting their general applicability.
149
The
The Systems
Systems Perspective
Perspective of
of Organizations
Organizations
150
Systems
Systems Perspectives
Perspectives for
for Managers
Managers
A system is an interrelated set of elements functioning
as a whole
Open system
An organizational system that interacts with its environment.
Closed system
An organizational system that does not interact with its
environment.
Subsystems
A system within another system. Their importance is due to their
interdependence on each other within the organization.
151
Synergy
Synergy and
and Entropy
Entropy
Synergy
Subsystems are more successful working together in a
cooperative and coordinated fashion than working alone.
The whole system (subsystems working together as one system)
is more productive and efficient than the sum of its parts.
Entropy
A normal process in which an organizational system declines due
to failing to adjust to change in its environment
Entropy can be avoided and
the organization re-energized
through organizational change
and renewal.
152
The
The Contingency
Contingency Perspective
Perspective
Universal Perspectives
Include the classical, behavioral, and quantitative
approaches.
An attempt to identify the one best way to manage
organizations.
153
The
The Contingency
Contingency Perspective
Perspective (contd)
(contd)
Problem
Problem or
orSituation
Situation
Important
Important
Contingencies
Contingencies
Solution
Solutionor
or
Action
ActionAA
Solution
Solutionor
or
Action
ActionBB
Solution
Solutionor
or
Action
Action CC
154
An
An Integrative
Integrative Framework
Framework
of
of Management
Management Perspectives
Perspectives
Systems Approach
Recognition of internal
interdependencies
Recognition of
environmental influences
Classical
Management
Perspectives
Methods for
enhancing
efficiency and
facilitating planning,
organizing, and
controlling
Contingency Perspective
Recognition of the situational
nature of management
Response to particular
characteristics of situation
Behavioral
Management
Perspectives
Insights for motivating performance
and understanding
individual behavior,
groups and teams,
and leadership
Quantitative
Management
Perspectives
Techniques for
improving decision
making, resource
allocation, and
operations
155
The
The Emergence
Emergence of
of Modern
Modern Management
Management
Perspectives
Perspectives
How management theory and practice has evolved over time
156
Contemporary
Contemporary
Management
Management Issues
Issues and
and Challenges
Challenges
An increasingly diverse and globalized workforce
The need to create challenging, motivating, and flexible work
environments
Acute labor shortages in high-technology job sectors and an
oversupply of less-skilled labor
The effects of information technology on how people work
The complex array of new ways of structuring organizations
Increasing globalization of product and service markets
The renewed importance of ethics and social responsibility
The use of quality as the basis for competition
The shift to a predominately service-based economy
157
Now Start to
Exploring
Management
Thought
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158