The Management Environment Module 1 LIS 580: Spring 2006 Instructor- Michael Crandall

Roadmap Why do we care? What do managers do? Where did management come from? What kinds of management are there? What’s happening today? July 21, 2005 LIS580- Spring 2006

Why Do We Care? “… modern society has become a society of organizations… In a society of organizations, managing becomes a social function and management the constitutive, the determining, the differential organ of society.” Drucker, 1986 In other words, you’re in it whether you like it or not, so better to understand how it works in order to use it to your advantage July 21, 2005 LIS580- Spring 2006

Organization Defined Organization A group of people with formally assigned roles who work together to achieve the stated goals of the group. Characteristics: Common purpose/goals Organizational structure G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

Management Defined Manager Management Process A person who plans, organizes, leads, and controls the work of others so that the organization achieves its goals. Is responsible for contribution. Gets things done through the efforts of other people. Is skilled at the management process. Management Process Refers to the manager’s four basic functions of planning, organizing, leading, and controlling. G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

Mintzberg’s Managerial Roles Figurehead Leader Liaison Spokesperson Negotiator G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

The Manager as Innovator The Entrepreneurial Process Getting employees to think of themselves as entrepreneurs. The Competence-Building Process Working hard to create an environment that lets employees really take charge. The Renewal Process Guarding against complacency by encouraging employees to question why they do things as they do—and if they might do them differently. G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

Types of Managers FIGURE 1–1 July 21, 2005 LIS580- Spring 2006 G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

The Managerial Skills Technical Skills Interpersonal Skills The need to know how to plan, organize, lead, and control. Interpersonal Skills An understanding of human behavior and group processes, and the feelings, attitudes, and motives of others, and ability to communicate clearly and persuasively. Conceptual Skills Good judgment, creativity, and the ability to see the “big picture” when confronted with information. G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

The Foundations Of Modern Management The Classical and Scientific School Frederick Winslow Taylor and Scientific Management The “one best way” Scientific selection of personnel Financial incentives Functional foremanship G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

The Foundations Of Modern Management (cont’d) The Classical and Scientific School (cont’d) Frank and Lillian Gilbreth and Motion Study Analyzed physical motion and work processes to improve worker efficiency. Henri Fayol and the Principles of Management Defined the functions of management Published “General and Industrial Management” Advocated “chain of command” G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

The Foundations Of Modern Management (cont’d) The Classical and Scientific School (cont’d) Max Weber and the Bureaucracy A well-defined hierarchy of authority A clear division of work A system of rules covering the rights and duties of position incumbents A system of procedures for dealing with the work situation Impersonality of interpersonal relationships Selection for employment, and promotion based on technical competence G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

The Foundations Of Modern Management (cont’d) The Behavioral School The Hawthorne Studies Researchers found that it was the social situations of the workers, not just the working conditions, that influenced behavior at work. The Human Relations Movement Emphasized that workers were not just “givens” in the system. Workers have needs and desires that organizations have to accommodate. G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

Douglas McGregor: Theory X and Theory Y Most people dislike work and responsibility and prefer to be directed. They are motivated not by the desire to do a good job, but simply by financial incentives. Most people must be closely supervised, controlled, and coerced into achieving organizational objectives. G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

Douglas McGregor: Theory X and Theory Y (cont’d) People wanted to work hard. People could enjoy work. People could exercise substantial self-control. Managers could trust employees if managers treated them right. G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

The Foundations Of Modern Management (cont’d) The Behavioral School (cont’d) Rensis Likert and the Employee-Centered Organization Less effective organizations have a “job-centered” focus: specialized jobs, emphasis on efficiency, and close supervision of workers. Effective “employee-centered” organizations build effective work groups with high performance goals.” Participation is an important approach employed by high-producing managers. G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

Bridging the Eras: The Administrative School Chester Barnard’s “Zone of Indifference” A range of orders that a worker will willingly accept without consciously questioning their legitimacy. Managers have to provide sufficient inducements (and not just financial ones) to make each employee’s zone of indifference wider. Herbert Simon and Managerial Influence Use the classicists’ command and control approach. Foster employee self-control by providing better training, encouraging participative leadership, and developing commitment and loyalty. G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

The Quantitative/Management Science School The Management Science Approach Operations Research/ Management Science Seeks optimal solutions to management problems through research and the use of scientific analysis and tools. The Systems Approach The view that an organization exists as a set of interrelated subsystems that all contribute internally to the organization’s purpose and success while interacting with the organization’s external environment. G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

The Situational/Contingency School Contingency View of Management. The organization and how its managers should manage it are contingent on the company’s environment and on technology. Tom Burns and G. M. Stalker Mechanistic organizations Organic organizations G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

Multi-Ontology Sense Making David Snowden proposes that we look at the problem through multiple lenses Clearly more complex space than most management systems take into account Kurtz, C. F.; Snowden, D. J. “The new dynamics of strategy: Sense-making in a complex and complicated world”. IBM Systems Management Journal. Volume 42, Number 3, 2003. http://www.research.ibm.com/journal/sj/423/kurtz.html From Pollard, D. How to Save the World. March 24, 2005. http://blogs.salon.com/0002007/2005/03/24.html July 21, 2005 LIS580- Spring 2006

Fundamental Changes Facing Managers FIGURE 1–2 G.Dessler, 2003 July 21, 2005 LIS580- Spring 2006

Two Books to Read Reich, Robert B. The Work of Nations: Preparing Ourselves for 21st Century Capitalism. Vintage, 1992. http://www.amazon.com/exec/obidos/tg/detail/-/0679736158 Friedman, Thomas L. The World Is Flat: A Brief History of the Twenty-first Century. Farrar, Straus and Giroux , 2005. http://www.amazon.com/exec/obidos/tg/detail/-/0374292884 July 21, 2005 LIS580- Spring 2006