Management Practices and Organizational Behaviour

Who is a Manager? A manager is a person responsible for the work performance of group members. What is management? The process of using organizational resources to achieve organizational objectives through planning, organizing and staffing, leading, and controlling.

The Importance of Interpersonal Skills Understanding OB helps determine manager effectiveness Technical and quantitative skills are important But leadership and communication skills are CRITICAL Organizational benefits of skilled managers Lower turnover of quality employees Higher quality applications for recruitment Better financial performance

Management Art or Science? Management is both art and science. 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. The Art of Management Decisions are made and problems solved using a blend of intuition, experience, and personal insights. Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities.

The extent to which managers perform the functions of management - planning, organizing, directing, and controlling - varies by level in the management hierarchy. DECIDE DIRECT DEAL DO

The Management Process

Management Functions Control Lead Organize Plan

Management Functions: Plan Control Lead Organize Plan A process that includes defining goals, establishing strategy, and developing plans to coordinate activities. As managers advance, they do this function more often.

Management Functions: Organize Control Lead Organize Plan Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

Management Functions: Lead Control Lead Organize Plan A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts. It is about PEOPLE!

Management Functions: Control Lead Organize Monitoring performance, comparing actual performance with previously set goals, and correcting any deviation.

Mintzberg’s Managerial Roles Discovered ten managerial roles Separated into three groups: Interpersonal Informational Decisional

Mintzberg’s Managerial Roles: Interpersonal

Mintzberg’s Managerial Roles: Informational

Mintzberg’s Managerial Roles: Decisional

Managerial Roles currently emphasized Managers today emphasize horizontal relationships and de-emphasize vertical (top-down) relationships. OLD MANAGER NEW MANAGER Thinks of self as manager or boss. Thinks of self as team leader or internal consultant. Follows the chain or command Deals with anyone necessary to get the job done Makes most decisions alone Invites others to join in decision making Demands long hours of working Demands results

Management Skills: In order to perform the functions of management and to assume multiple roles, managers must be skilled.Robert Katz identified three managerial skills that are essential to successful management: technical, human, and conceptual. A manager's level in the organization determines the relative importance of possessing technical, human, and conceptual skills.

Technical Skills involves process or technique knowledge and proficiency. Managers use the processes, techniques and tools of a specific area. Human skill involves the ability to interact effectively with people. Managers interact and cooperate with employees. Conceptual skill involves the formulation of ideas. Managers understand abstract relationships, develop ideas, and solve problems creatively. Thus, technical skill deals with things, human skill concerns people, and conceptual skill has to do with ideas.

EVOLUTION OF MANAGEMENT Management in antiquity Organized endeavors directed by people responsible for planning, organizing, leading, and controlling activities have existed for thousands of years. E.g.The Egyptian Pyramids and the Great wall of China. Another example is of Roman Catholic Church. Its highest authority is Pope. They have followed a simple hierarchy that has remained unchanged for almost two thousand years. Thus management has been practiced for a long time!

Adam Smith (18th century economist) PRE-SCIENTIFIC MANAGEMENT Adam Smith (18th century economist) Observed that firms manufactured pins in one of two different ways: Craft-style—each worker did all steps. Production—each worker specialized in one step. Thus introduced the concept of division of labor : The breakdown of jobs into narrow, repetitive tasks.

The most important pre-twentieth-century influence on management was the industrial revolution. Machine power was rapidly substituted for human power. The advent of machine power combined with division of labor was leading to mass production. Managers were needed to forecast demand, coordinate various activities, maintenance of machinery, and so forth.

The Scientific Management School Scientific Management Theory: Body of principles that addresses the efficiency of workers Father of Scientific Management- F.W.Taylor (1856-1915)

TAYLOR’S PRINCIPLES: 1. The development of a true science of work. - work study, with an acute emphasis on job specialisation. - emphasis on performance-related pay. The scientific selection and development of the worker. The bringing together of the science of work and the scientifically selected & trained workers. 4. The constant and close co-operation of management and men - specialization. - the removal of conflict.

FUNCTIONAL MANAGEMENT Also called administrative management; emphasizes on the manager and functions of the management. Max Weber Developed the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness. Henri Fayol First to systematize organization, using scientific forecasting and proper method of management.Focus on formal organization structure that separate basic process of general management.

Human Resources Approach HAWTHORNE STUDIES: Elton Mayo and his colleagues conducted studies at Western Electric’s Hawthorne Plant and began with an investigation to see if different lighting affected workers’ productivity. The Hawthorne effect is an increase in worker productivity produced by the psychological stimulus of being singled out and made to feel important.

Abraham Maslow He was a humanistic psychologist who proposed a hierarchy of human needs: physiological needs, safety, social, esteem and self-actualization. Maslow argued that each level in the hierarchy must be satisfied before the next could be activated.

Douglas McGregor He is best known for his formulation of two sets of assumptions- Theory X and Theory Y.

Open System continually interacts with its environment SYSTEMS APPROACH A system is defined as a set of interrelated or interacting elements. Closed System has little interaction with its environment; it receives very little feedback from the outside Open System continually interacts with its environment

Transformational Processes Organizations are open systems that constantly interact with the external environment: Inputs The people, money, information, equipment, and materials required to produce and organization’s goods or services Outputs The products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization Feedback Information about the reaction of the environment to the outputs that affect the inputs Transformational Processes The organization’s capabilities in management and technology that are applied to converting inputs to outputs

Contingency Approach There is no optimum way to structure organization. It is dependent on upon the contingencies of the situation. Four popular contingency variables Organization size (coordination) Routine- ness of task technology (task complexity dictates structure) Environmental uncertainty (change management) Individual differences (managerial styles , motivational techniques, and job design)