© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2 Management Today

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives Define management and describe its complexity and pervasiveness. Define successful management in terms of efficiency and effectiveness. Discuss the importance of history and theory to the field of management.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives Discuss the origins of management and trace its development. Describe and assess the classical, behavioral, and quantitative schools of management theory. Identify major components of contemporary management theory.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Manager’s Job Definition of Management – Management: set of activities directed at efficient and effective use of resources in pursuit of one or more goals. The Complexity of Management – Different activities in which managers engage.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Manager’s Job The Pervasiveness of Management – Its applicability in many different situations and its influence in contemporary society. – Management found in every collection of people who find it necessary to coordinate their activities.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Manager’s Job Levels of Management – Top management Those at upper levels of organization (chief executive officer and vice presidents). Set overall organizational goals. Determine strategy and operating policies. Represent organization to external environment.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Manager’s Job Levels of Management – Middle managers Largest group in most companies. Top management to above first-line management. Implement strategies and policies set by top managers. Coordinate work of lower-level managers. – First-line managers Supervise operating employees.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Manager’s Job Areas of Management – Marketing managers – Operations managers – Finance managers – Human resource (HR) managers – Administrative managers

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Manager’s Job Efficiency and Effectiveness – Efficiency: operating in such a way that resources are not wasted. – Effectiveness: doing the right things in the right way at the right times. – Effectiveness combined with efficiency is hallmark of successful management.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Manager’s Job Managerial Functions – Planning and decision making: determining organization’s goals and deciding how best to achieve them. – Organizing: grouping activities and resources in a logical and appropriate fashion.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Manager’s Job Managerial Functions – Leading: guiding and directing employees toward goal attainment. – Controlling: monitoring and adjusting organizational activities toward goal attainment.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Evolution of Management The Importance of History and Theory – History helps managers: Understand current developments better and why “we do it this way.” Avoid repeating mistakes. – Theory helps managers: Organize information. Approach problems in systematic fashion.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Evolution of Management Origins of Management Theory – Ancient Management One of the earliest recorded uses of management is the Egyptians’ construction of pyramids. Babylonians, Greeks, Chinese, Romans, and Venetians practiced management. – Precursors of Modern Management Industrial Revolution factory system.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Evolution of Management The Classical School – Scientific management: work of individuals. – Administrative management: how organizations should be put together. – Concepts still in use today. – Tended to underestimate role of individual.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Evolution of Management

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Evolution of Management The Behavioral School – Hawthorne studies: impact of social forces and effects of feedback and rewards. – Human relations model: people bring their own unique needs and motives into workplace. – Human resources approach: variety of individual and social processes as determinants and consequences of human behavior.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Evolution of Management The Quantitative School – Quantitative or measurement techniques and concepts of interest to managers. – Management science: mathematical and statistical tools and techniques manager can use to enhance efficiency. – Operations management: processes and systems organization uses to transform resources into finished goods and services.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Evolution of Management The Quantitative School – Management information systems (MISs): created to store and provide information to managers. – Manager should choose right tools for job, apply them properly, understand results.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Contemporary Management Theory Systems Theory – Understanding how organizations function and operate. – System receives from environment inputs or resources included in definition of management. – Resources transformed into outputs, which are products or services, behaviors, profits or losses. – Feedback from environment provides system with information.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Contemporary Management Theory

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Contemporary Management Theory Systems Theory – Subsystem interdependencies: system within a system. – Synergy: two people or units can achieve more working together than working individually. – Entropy: organizations take closed-system perspective; they falter and die. – Equifinality: two or more paths may lead to same place.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Contemporary Management Theory Contingency Approach – Appropriate managerial actions in a situation depend or are contingent on certain major elements of that situation. – Universal approach: manager assumes all problems solved in same way. – Case approach: manager assumes every problem must be solved in different way.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Contemporary Management Theory Other Emerging Perspectives: TQM and High Involvement – TQM: entire quality movement. – High-involvement management: relies more on self- control and self-management at lowest levels of organizations.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Management: activities directed at efficient and effective use of resources in pursuit of one or more goals. Management is complex and pervasive. Managers exist at all organizational levels. – Three levels: top, middle, first-line. There are different kinds of managers.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Managers’ four functions: planning and decision making, organizing, leading, and controlling. Successful management: efficiency/effectiveness. Knowledge of history and theory important. Schools of management: classical, behavioral, quantitative. Contemporary management theory: systems, contingency approach, TQM, high-involvement.