Chapter 1 Copyright ©2009 by Cengage Learning Inc. All rights reserved Highlights Chapters1 & 2 Overview and Evolution of Management Management 6 th Edition Chuck Williams

Management Is… Effectiveness Efficiency Getting work done through others 1 1

Management Functions Planning Organizing Leading Controlling Planning Organizing Leading Controlling Management Functions 2 2

Planning Determining organizational goals and a means for achieving them 2.1

Organizing Deciding where decisions will be made Who will do what jobs and tasks Who will work for whom 2.2

Leading Motivating Inspiring LeadingLeading “The CEO has a very specific job that only he or she can do: Link the external world with the internal organization.” A. G. LAFLEY, FORMER CEO, PROCTER & GAMBLE 2.3

Controlling Monitoring progress toward goal achievement and taking corrective action when needed 2.4

The Control Process Set standards to achieve goals Compare actual performance to standards Make changes to return performance to standards 2.4

Managerial Roles H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August Adapted from Exhibit 1.3 InterpersonalInformationalDecisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator 4 4

Managerial Roles Figurehead Leader Liaison Figurehead Leader Liaison Managers perform ceremonial duties Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units Managers perform ceremonial duties Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units Interpersonal Roles 4.1

Managerial Roles Monitor Disseminator Spokesperson Monitor Disseminator Spokesperson Managers scan their environment for information Managers share information with others in their company Managers share information with others outside their departments or companies Managers scan their environment for information Managers share information with others in their company Managers share information with others outside their departments or companies Informational Roles 4.2

Entrepreneur Disturbance Handler Resource Allocator Negotiator Entrepreneur Disturbance Handler Resource Allocator Negotiator Managerial Roles Managers adapt to incremental change Managers respond to problems that demand immediate action Managers decide who gets what resources Managers negotiate schedules, projects, goals, outcomes, resources, and raises Managers adapt to incremental change Managers respond to problems that demand immediate action Managers decide who gets what resources Managers negotiate schedules, projects, goals, outcomes, resources, and raises Decisional Roles 4.3

What Companies Look for in Managers Skills are more or less important at different levels of management: 5 5

Mistakes Managers Make Adapted from Exhibit 1.5 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb Insensitive to others 2. Cold, aloof, arrogant 3. Betrayal of trust 4. Overly ambitious 5. Specific performance problems with the business 6. Overmanaging: unable to delegate or build a team 7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style 10. Overdependent on advocate or mentor 6 6

Evolution of Management –Key Concepts Scientific Management Bureaucratic Management Administrative Management Human Relations Management Contingency Management

Scientific Management  Studies and tests methods to identify the best, most efficient ways Scientific Management  Studies and tests methods to identify the best, most efficient ways “Seat-of-the Pants” Management  No standardization of procedures  No follow-up on improvements “Seat-of-the Pants” Management  No standardization of procedures  No follow-up on improvements 2 2

Frederick W. Taylor Frederick Taylor is known today as the "father of scientific management." One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day. Frederick W. Taylor

Frank & Lillian Gilbreth Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter. 2.2

Motion Studies: Frank & Lillian Gilbreth Time Study Timing how long it takes good workers to complete each part of their jobs. Motion Study Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive. 2.2

Bureaucratic Management Bureaucracy The exercise of control on the basis of knowledge, expertise, or experience. Max Weber

The Aim of Bureaucracy 1. Qualification-based hiring 2. Merit-based promotion 3. Chain of command 4. Division of labor 5. Impartial application of rules and procedures 6. Recorded in writing 7. Managers separate from owners 3.1

Administrative Management: Henri Fayol 1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interests 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corps Adapted from Exhibit

Human Relations Management Efficiency alone is not enough to produce organizational success. Success also depends on treating workers well. 4 4

Contingency Management Contingency Approach Holds that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place. 5.4

Leadership vs. Management MANAGEMENT: Provides order, consistency, and predictability Top-level managers manage/maintain organizations Implements a vision Effective managers also lead LEADERSHIP: Provides change and adaptability Top-level leaders transform organizations Creates a vision Effective leaders also manage 25

Leadership Roles Figurehead Spokesperson Negotiator Coach and Motivator Team Builder Team Player Technical Problem Solver Entrepreneur Strategic Planner Executor 26

Types of FOLLOWERS ISOLATES: Completely detached There to do what they must to get by and nothing more Alienated from the system, the group, the organization Silent and ignored By default, they strengthen leaders who already have the upper hand From “Followership” by Barbara Kellerman, Harvard Business School 27

Types of FOLLOWERS BYSTANDERS: Observe, but do not participate Make deliberate decisions to stand aside and disengage from leaders and the group dynamic Their withdrawal is a declaration of neutrality that amounts to support for whoever They do nothing even when doing something is not especially costly or especially risky Free riders – content to let others make the group’s decisions and do the group’s work The fact is that followers who stand by and do nothing give other followers a bad name – to withdraw is to cede to those who have more power, authority, & influence than do we to make decisions. From “Followership” by Barbara Kellerman, Harvard Business School 28

Types of FOLLOWERS PARTICIPANTS: Are in some way engaged They either clearly favor their leaders and groups and organization – OR – they are clearly opposed They invest their engagement to try to have an impact By and large, leaders WANT followers who are participants – assuming they are in support and not in opposition There are those followers who while generally supportive of their leader and of the organization of which they are members, nevertheless go their own way From “Followership” by Barbara Kellerman, Harvard Business School 29

Types of FOLLOWERS ACTIVISTS: Feel strongly about their leaders and act accordingly They are eager, energetic, and engaged They work hard either on behalf of their leaders – OR – to undermine and unseat them They are either a major resource or a major bane They care – they care a great deal They care about their leaders, pro or con They care about each other, presumably pro They care about the whole of which they are a part They can be dangerous when they are so determined to have an impact that is ill-considered or wrongheaded They should be watched and they should be judged From “Followership” by Barbara Kellerman, Harvard Business School 30

Types of FOLLOWERS DIEHARDS: Are prepared to die if necessary for their cause, whether an individual, an idea, or both Deeply devoted to their leaders – OR – ready to remove them from positions of power, authority, and influence by any means necessary Defined by their dedication Is all-consuming – it is who you are – it determines what you do They are rare – fortunately There are only so many diehards a society can take – And, there are only so many followers willing to play the part Once exception is the military – subordinates follow orders – everyone, from top to bottom, is prepared to be wounded or even killed in battle From “Followership” by Barbara Kellerman, Harvard Business School 31