Introduction to Management

What is Management?
Management is the process of getting activities completed efficiently and effectively with and through other people.

Effectiveness and Efficiency in Management

Nature of Management:
1.

2. 3. 4. 5. 6. 7.

Management is a goal oriented Management is universal Management is a Social process Management is a Multidisciplinary Management is Continuous process Management is Intangible Management is an Art as well as Science

Importance of Management:

 Helps in Achieving Group Goals

 Optimum Utilization of Resources  Reduces Costs  Establishes a Sound Organization

Managerial Levels

 An Organization Defined
A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone).

 Planning
The process of setting

goals , developing strategies, and outlining tasks and schedules to accomplish the goals.

 Organizing
Arranging several elements into a purposeful sequential or spatial (or both) order or structure

 Staffing
Decides how many and what kind of people a business needs to meet its goals and then recruits, selects, and trains the right people

 Leading
Provides guidance employees need to perform their tasks

 Controlling
Controlling consists of verifying whether everything occurs in conformities with the plans adopted, instructions issued and principles established.

The Development of Management Theory

Up to the 20th century
 Adam smiths contribution to the field of management  Industrial revolutions influence on management practices

In the early 20th century

 Scientific management  General administrative theory  The human resources approach  The quantitative approach

From the later 20th century to the present

 The process approach  The systems approach  The contingency approach

Scientific Management The systematic study of the relationships between people and tasks for the purpose of redesigning the work process to increase efficiency.
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Background of That Time

There were no clear concepts of responsibilities to workers and managers. No effective work standards existed. Management decisions were based on hunch and intuition. Workers were placed on jobs with little or no concern for matching their abilities and aptitudes with the tasks required. Managers and workers considered themselves to be in continual conflictany gain by one would be at the expense of the other.

Taylors Four Principles of Management

Develop a scientific way for each element of an individuals work, which replaces the old rule-of-thumb method. Scientifically select and then train, teach, and develop the worker. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the scientific way that has been developed. Divide work and responsibility almost equally between managers and workers. Managers take over all work for which it is better fitted than the workers.

1) Study the way workers perform their tasks, gather all the informal job knowledge that workers possess and experiment with ways of improving how tasks are performed Time-and-motion study

2) Codify the new methods of performing tasks into written rules and standard operating procedures
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3) Carefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures 4) Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level
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Fayols 14 Principles of Management

1. Division of Work 2. Authority 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Subordination of Individual Interests to the General Interest 7. Remuneration 8. Centralization 9. Scalar Chain 10. Order 11. Equity 12. Stability of Tenure of Personnel 13. Initiative 14. Esprit de corps

14 principles of management
Division of Labor: allows for job specialization. jobs can have too much specialization leading to poor quality and worker dissatisfaction. Authority and Responsibility both formal and informal authority resulting from special expertise. Unity of Command Employees should have only one boss.

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 Line of Authority A clear chain of command from top to bottom of the firm. Centralization The degree to which authority rests at the top of the organization. Unity of Direction A single plan of action to guide the organization.

 Equity - The provision of justice and the fair and impartial treatment of all employees. Order - The arrangement of employees where they will be of the most value to the organization and to provide career opportunities. Initiative - The fostering of creativity and innovation by encouraging employees to act on their own.

 Discipline Obedient, applied, respectful employees are necessary for the organization to function. Remuneration of Personnel An equitable uniform payment system that motivates contributes to organizational success.

 Stability of Tenure of Personnel Long-term employment is important for the development of skills that improve the organizations performance. Subordination of Individual Interest to the Common Interest The interest of the organization takes precedence over that of the individual employee.

Esprit de corps Comradeship, shared enthusiasm foster devotion to the common cause (organization).

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Hawthorne Studies
Elton Mayo (1880-1949)

Time: 1924the early 1930s Place: Hawthorne plant in the Western Electric Company Designer: Western Electric industrial engineers
Elton Mayo and his associates

Mayos Finding:
    Behavior and sentiments are closely related. Group influences significantly affect individual behavior. Group standards establish individual worker output. Money is less a factor in determining output than are group standards, group sentiments, and security.

Maslows Hierarchy of Needs

Self Esteem Social Safety Physiological

Prentice Hall, 2001

Chapter 6

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Maslows Hierarchy of Needs

Physiological includes hunger, thirst, shelter, sex and other bodily needs. Safety includes security and protection from physical and emotional harm. Social includes affection, belongingness acceptance, and friendship

Maslows Hierarchy of Needs

Esteem includes internal esteem factors such as self-respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention. Self-actualization the drive to become what one is capable of becoming; includes growth, achieving ones potential, and selffulfillment.

Herzbergs Two-Factor Theory

What do people want from their jobs? Opposite of satisfaction is not dissatisfaction
Removing dissatisfying factors does not necessarily make the job satisfied. 1. Factors leading to satisfaction (Motivational Factors) 2. Factors leading to dissatisfaction (Hygiene Factors)

Herzbergs Two-Factor Theory

Hygiene Factors
Company policies Quality of supervision Relations with others Personal life Rate of pay Job security Working conditions

Motivational Factors
Achievement Career advancement Personal growth Job interest Recognition Responsibility

Theory X and Theory Y

Douglas McGregor proposed two distinct views of human beings:
one basically negative, labeled Theory X, and the other basically positive, labeled Theory Y.

Theory X
Theory X
The assumption that employees dislike work, are lazy, dislike responsibility, and must be coerced to perform. (Lower order needs dominate)

Theory X and Theory Y

Theory Y
The assumption that employees like work, are creative, seek responsibility, and can exercise self-direction. (Higher order needs dominate)

Whats the System Approach?

The system approach defines a system as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Societies are systems and so, too, are computers, automobiles, organizations, and animal and human bodies.

Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives. Key benefits: Integration and alignment of the processes that will best achieve the desired results. Ability to focus effort on the key processes. Providing confidence to interested parties as to the consistency, effectiveness and efficiency of the organization.

 A Leader is someone in authority to lead others to accomplish a goal(s). A leader needs to be able to motivate others to accomplish a goal(s) while at the same time encourage others to work toward their own professional goals.

Leadership Styles

3 Styles of Leadership
Autocratic
Authoritarian Tells employees/students what they want done and how to do it (without getting the advice from others). Works well if you dont have much time to accomplish goals or if employees are well motivated. Generally, this style is not a good way to get the best performance from a team.

Leadership Styles
Democratic
Participative style The leader involves one or more employees/students in the decision making process (to determine what to do and how to do it). Leader maintains the final decision making authority. Allows everyone to be part of a teameveryone feels that they have participated and contributed. Encourages participation, delegates wisely, values group discussion. Motivates by empowering members to direct themselves and guides w/a loose reign. Negativeeverything is a matter of group discussion and decisiondoesnt really lead.

Leadership Styles
Delegative Free Reign (lais ser faire) Leader allows employees/students to make the decisions. Leader is still responsible for the decisions. Employees/students analyze the situation and determine what needs to be done and how to do it. Leader sets priorities and delegates. Leader has little control. Team has little direction or motivation.

Social responsibility is managements obligation to make choices and take actions that will contribute to the welfare and interests of society as well as to those of the organization.

 ECONOMIC RESPONSIBILITIES

LEGAL RESPONSIBILITIES
ETHICAL RESPONSIBILITIES