introduction to management 30 apr

8/14/2019 Introduction to Management 30 APR

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Understanding the

Managers Job


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Chapter OutlineChapter Outline

An Introduction to ManagementKinds of Managers

Basic Management Functions

Fundamental Management Skills

The Science and the Art of Management

The Evolution of Management

The Importance of History and Theory

The Historical Context of ManagementThe Classical Management Perspective


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Chapter Outline (contd)Chapter Outline (contd)

The Evolution of Management (contd)The Behavioral Management Perspective

The Quantitative Management Perspective

Contemporary Management Thought

The Systems Perspective

The Contingency Perspective

Contemporary Management Challenges and

Opportunities


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Learning ObjectivesLearning Objectives

After studying this chapter, you should be ableto:

Define management, describe the kinds of managers

found in organizations, and briefly explain the four

basic management functions.Justify the importance of history and theory to

managers and explain the evolution of management

thought.

Discuss contemporary management issues andchallenges.


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What is Management?What is Management?

A set of activitiesplanning and decision making, organizing,

leading, and controlling

directed at an organizations resources

human, financial, physical, and information

with the aim of achieving organizational goals

in an efficient and effective

manner.


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Basic Purpose of ManagementBasic Purpose of Management

EFFICIENTLYUsing resources wisely and

in a cost-effective way

EFFECTIVELYMaking the right decisions and

successfully implementing them

AndAnd


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What is a Manager?What is a Manager?

Someone whose primary responsibility is tocarry out the management process.

Someone who plans and makes decisions,

organizes, leads, and controls

human, financial, physical,and information resources.


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Figure 1.1Figure 1.1

Kinds of Managers by Level and AreaKinds of Managers by Level and Area


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Kinds of Managers by LevelKinds of Managers by Level

Top ManagersThe relatively small group of executives who manage

the organizations overall goals, strategy, and

operating policies.

Middle ManagersLargest group of managers in organizations

Implement top managements policies and plans.

Supervise and coordinate lower-level managers activities.

First-Line ManagersManagers who supervise and coordinate the activities

of operating employees.


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Kinds of Managers by AreaKinds of Managers by Area

Marketing ManagersWork in areas related to getting consumers and clients

to buy the organizations products or services.

Financial Managers

Deal primarily with an organizations financialresources.

Operations Managers

Concerned with creating and managing the systems

that create organizations products and services.


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Kinds of Managers by Area (contd)Kinds of Managers by Area (contd)

Human Resource ManagersInvolved in human resource processes

Planning, recruiting and selection, training and development,

designing compensation and benefit systems, formulating

performance appraisal systems.

Administrative Managers

Serve as generalists in functional areas and are not

associated with any particular management specialty.

Other Kinds of ManagersAssigned as specialists in positions directly related to

the needs of the organization.


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Management in OrganizationsManagement in Organizations

Inputs from the environment

Human resources

Financial resources

Physical resources

Information resources

Planning

and decision

making

Leading

Organizing

Controlling

Goals attained

Efficiently

Effectively


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The Management ProcessThe Management Process


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The Management Process (contd)The Management Process (contd)

Planning and Decision MakingSetting an organizations goals and selecting a course

of action from a set of alternatives 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.


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Skills and theSkills and the

ManagerManager

FundamentalFundamentalManagementManagement

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills


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Fundamental Management SkillsFundamental Management Skills

TechnicalSkills necessary to accomplish or understand the

specific kind of work being done in an organization.

Interpersonal

The ability to communicate with, understand, andmotivate both individuals and groups.

ConceptualThe managers ability to think in the abstract.

DiagnosticThe managers ability to visualize the most appropriate

response to a situation.


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Fundamental Management Skills (contd)Fundamental Management Skills (contd)

CommunicationThe managers abilities both to convey ideas and

information effectively to others and to receive ideasand information effectively from others.

Decision-MakingThe managers ability to recognize and define

problems and opportunities correctly and then toselect an appropriate course of action to solve theproblems and capitalize on opportunities.

Time-ManagementThe managers ability to prioritize work, to work

efficiently, and to delegate appropriately.


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Management: Science or Art?Management: Science or Art?

The Science of ManagementAssumes that problems can be approached using

rational, logical, objective, and systematic ways.

Requires technical, diagnostic, and decision-makingskills and techniques to solve problems.

The Art of ManagementDecisions are made and problems solved using a

blend of intuition, experience, instinct, and personalinsights.

Requires conceptual, communication, interpersonal,and time-management skills to accomplish the tasksassociated with managerial activities.


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Sources of Management SkillsSources of Management Skills


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The Importance of Theory and HistoryThe Importance of Theory and History

Why Theory?Provides a conceptual framework for organizing

knowledge and providing a blueprint for action.

Management theories, used to build organizations, are

grounded in reality.

Most managers develop their own theories about how they

should run their organizations.

Why History?

An awareness and understanding of historical

developments in management are important.

Furthers the development of management practices.

Avoiding the mistakes of others in the past.


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Sources of Management SkillsSources of Management Skills


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Early Management PioneersEarly Management 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.

Charles Babbage (17921871)English mathematician who focused on creating

efficiencies of production through the division of labor,

and the application of mathematics

to management problems.


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Classical Management PerspectiveClassical Management Perspective

Scientific ManagementConcerned 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 ManagementScientific Management

Frederick Taylor (18561915)Replaced old methods of how to work with

scientifically-based work methods.

Eliminated soldiering, where employees deliberately worked

at a pace slower than their capabilities.

Believed in selecting, training, coaching, and

developing workers.

Used time studies of jobs, standards planning,

exception rule of management, slide-rules, instructioncards, and piece-work pay systems to control and

motivate employees.


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Steps in Scientific ManagementSteps in Scientific Management


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Scientific Management PioneersScientific Management Pioneers

Frank and Lillian GilbrethBoth developed techniques and strategies for

eliminating inefficiency.

Frank reduced the number of

movements in bricklaying, resulting

in increased output of 200%.

Lillian made substantive contributions

to the fields of industrial psychology

and personnel management.


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Classical Management Perspective (contd)Classical Management Perspective (contd)

Administrative Management TheoryFocuses on managing the whole organization ratherthan individuals.

Henri Fayol (18411925)

Was first to identify the specific management functions ofplanning, organizing, leading, and controlling.

Lyndall Urwick (18911983)

Integrated the work of previous management theorists.

Max Weber (18641920) His theory of bureaucracy is based on a rational set of

guidelines for structuring organizations.


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Classical Management PerspectiveClassical Management Perspective

TodayToday

ContributionsLaid the foundation forlater developments.

Identified important

managementprocesses, functions,

and skills.

Focused attention on

management as a valid

subject of scientific

inquiry.

LimitationsMore appropriateapproach for use in

traditional, stable,

simple organizations.

Prescribed universal

procedures that are not

appropriate in some

settings.

Employees are viewed

as tools rather than as

resources.


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Behavioral Management PerspectiveBehavioral Management Perspective

Behavioral ManagementEmphasized individual attitudes and behaviors, andgroup processes, and recognized the importance of

behavioral processes in the workplace.

Hugo Munsterberg (18631916) A German psychologist, the father of industrial psychology,

who advocated applying psychological concepts to

employees selection and motivation industrial settings.

Mary Parker Follett (18681933)

Recognized the importance of the role of human behavior inthe workplace.


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Key Managerial Roles (Munsterberg)Key Managerial Roles (Munsterberg)

Key ManagementKey Management

RolesRoles

InterpersonalInterpersonal

RolesRolesDecisionalDecisional

RolesRoles

InformationalInformational

RolesRoles

1.1. FigureheadFigurehead

2.2. LeaderLeader3.3. LiaisonLiaison

1.1. MonitorMonitor

2.2. DisseminatorDisseminator3.3. SpokespersonSpokesperson

1.1. EntrepreneurEntrepreneur

2.2. DisturbanceDisturbancehandlerhandler

3.3. NegotiatorNegotiator

Source: Van Fleet, David D., Contemporary Management, Second Edition.

Copyright 1991 by Houghton Mifflin Company. Used with permission.


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The Hawthorne Studies (19271932)The Hawthorne Studies (19271932)

Conducted by Elton Mayo and associates atWestern Electric

Illumination studyworkplace lighting adjustments

affected both the control and the experimental groups

of production employees.Group studyimplementation of piecework incentive

plan caused production workers to establish informal

levels of acceptable individual output.

Over-producing workers were labeled rate busters and

under-producing workers were considered chiselers.

Interview programconfirmed the importance of

human behavior in the workplace.


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(contd)(contd)

Human Relations Movement

Grew out of the Hawthorne studies.

Proposed that workers respond primarily

to the social context of work, includingsocial conditioning, group norms,

and interpersonal dynamics.

Assumed that the managers

concern for workers would lead toincreased worker satisfaction and

improved worker performance.


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(contd)(contd)

Abraham Maslow (1908-1970)

Advanced a theory that employees are motivated by a

hierarchy of needs that they seek to satisfy.

Douglas McGregor (1906-1964)

Proposed Theory X and Theory Y concepts

of managerial beliefs about people

and work.


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Table 1.1Table 1.1

Theory X and Theory YTheory X and Theory Y

Theory X Assumptions

People do not like work and try to avoid it.

People do not like work, so managers have to control,

direct, coerce, and threaten employees to get them towork toward organizational goals.

People prefer to be directed,

to avoid responsibility, and

to want security; they have

little ambition.

Source: Douglas McGregor, The Human Side of Enterprise, Copyright 1960 by McGraw-Hill.

Reprinted by permission of The McGraw-Hill Companies.


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Table 1.1 (contd)Table 1.1 (contd)

Theory X and Theory Y (contd)Theory X and Theory Y (contd)

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 theyare committed.

People are committed to goals to the degree that they receiverewards when they reach their objectives.

People seek both seek and accept responsibility under favorableconditions.

People can be innovative in solving problems.

People are bright, but under most organizational conditions theirpotentials are underutilized.

Source: Douglas McGregor, The Human Side of Enterprise, Copyright 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.


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Organizational BehaviorOrganizational Behavior

A contemporary field focusing on behavioralperspectives on management.Draws on psychology, sociology, anthropology,

economics, and medicine.

Important topics in organizational behaviorresearch:Job satisfaction and job stress

Motivation and leadership

Group dynamics and organizational politics

Interpersonal conflict

The structure and design of organizations


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TodayToday

Contributions

Provided important insights into motivation, group

dynamics, and other interpersonal processes.

Focused managerial attention on these criticalprocesses.

Challenged the view that employees are tools and

furthered the belief that employees are valuable

resources.


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Today (contd)Today (contd)

Limitations

Complexity of individuals makes behavior difficult to

predict.

Many concepts not put to use because managers arereluctant to adopt them.

Contemporary research findings are not often

communicated to practicing managers in an

understandable form.


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Quantitative Management PerspectiveQuantitative Management Perspective

Quantitative ManagementEmerged 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 tosolve quantitative problems.


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(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.


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TodayToday

Contributions

Developed sophisticated quantitative techniques to

assist in decision making.

Application of models hasincreased our awareness

and understanding of

complex processes and

situations.

Has been useful in the

planning and controlling

processes.


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Today (contd)Today (contd)

Limitations

Quantitative management cannot fully explain or

predict the behavior of people in organizations.

Mathematical sophistication may come atthe expense of other managerial skills.

Quantitative models may require

unrealistic or unfounded assumptions,

limiting their general applicability.


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The Systems Perspective of OrganizationsThe Systems Perspective of Organizations


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Integrating Perspectives for ManagersIntegrating Perspectives for Managers

Systems PerspectiveA system is an interrelated set of elements functioning

as a whole.

Open system

An organizational system that interacts with itsenvironment.


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Integrating Perspectives for ManagersIntegrating Perspectives for Managers

(contd)(contd)

Closed system

An organizational system that does not interact with its

environment.

SubsystemsA system within another system.

Their importance is due to their

interdependence on each other

within the organization.


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The Systems PerspectiveThe Systems Perspective

SynergySubsystems are more successful working together in

a cooperative and coordinated fashion than working

alone.

The whole system (subsystems working together asone system) is more productive and efficient than the

sum of its parts.


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The Systems PerspectiveThe Systems Perspective

(contd)(contd)

Entropy

A normal process in which an organizational system

declines due to failing to adjust to change in its

environmentEntropy can be avoided and

the organization re-energized

through organizational change

and renewal.


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The Contingency PerspectiveThe Contingency Perspective

Universal Perspectives

Include the classical, behavioral, and quantitative

approaches.

An attempt to identify the one best way to manage

organizations. The Contingency Perspective

Suggests that each organization is unique.

The appropriate managerial behavior for

managing an organization depends(is contingent) on the current

situation in the organization.


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The Contingency Perspective (contd)The Contingency Perspective (contd)

Problem or SituationProblem or Situation

Solution orSolution or

Action BAction BSolution orSolution or

Action AAction ASolution orSolution or

Action CAction C

ImportantImportantContingenciesContingencies

Source: Van Fleet, David D., Contemporary Management, Second Edition.

Copyright 1991 by Houghton Mifflin Company. Used with permission.


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Contemporary Management IssuesContemporary Management Issues

and Challengesand Challenges

Acute labor shortages in high-technology job

sectors and an oversupply of less skilled labor

An increasingly diverse and globalized

workforce The need to create challenging, motivating, and

flexible work environments

The effects of information technology on howpeople work

The complex array of new ways of structuring

organizations


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Contemporary Management IssuesContemporary Management Issues

and Challenges (contd)and Challenges (contd)

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

introduction to management 30 apr

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