PowerPoint Presentation by Charlie Cook The Environment of Managing Gary Dessler Principles and Practices for Tomorrow’s Leaders Copyright © 2004 Prentice Hall, Inc. All rights reserved. The Environment and Foundations of Modern Management The Environment and Foundations of Modern Management 1 C H A P T E R

Copyright © 2004 Prentice Hall. All rights reserved.1–2 Chapter Objectives After studying this chapter and the case exercises at the end, you should be able to: 1.List the specific management tasks facing the person in charge. 2.Identify the manager, and explain how that person’s job differs from that of others. 3.Answer the question, “Do I have what it takes to be a manager?” 4.List and describe five things a manager can learn from the evolution of management thought.

Copyright © 2004 Prentice Hall. All rights reserved.1–3 Chapter Objectives (cont’d) 5.Explain what environmental forces are influencing the manager’s business. 6.List the reasons why a manager should use a particular management approach.

Copyright © 2004 Prentice Hall. All rights reserved.1–4 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

Copyright © 2004 Prentice Hall. All rights reserved.1–5 Management Defined Manager  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.

Copyright © 2004 Prentice Hall. All rights reserved.1–6 Mintzberg’s Managerial Roles Figurehead Leader Liaison Spokesperson Negotiator

Copyright © 2004 Prentice Hall. All rights reserved.1–7 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.

Copyright © 2004 Prentice Hall. All rights reserved.1–8 Types of Managers FIGURE 1–1

Copyright © 2004 Prentice Hall. All rights reserved.1–9

Copyright © 2004 Prentice Hall. All rights reserved.1–10 Do You Have the Traits to Be a Manager? Personality and Interests  Social Orientation  Attracted to working with others in a helpful or facilitative way; comfortable dealing with people.  Enterprising Orientation  Enjoy working with people in a supervisory or persuasive way in order to achieve some goal.

Copyright © 2004 Prentice Hall. All rights reserved.1–11 Do You Have the Traits to Be a Manager? (cont’d) Competencies  Managerial Competence  The motivation and skills required to gain a management position, including intellectual (analytical), emotional, and interpersonal skills.  Career Anchor  A dominant concern or value that directs an individual’s career choices and that the person will not give up if a choice must be made.

Copyright © 2004 Prentice Hall. All rights reserved.1–12 The Managerial Skills Technical 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.

Copyright © 2004 Prentice Hall. All rights reserved.1–13 The Foundations Of Modern Management The Classical and Scientific School  Frederick Winslow Taylor and Scientific Management 1.The “one best way” 2.Scientific selection of personnel 3.Financial incentives 4.Functional foremanship

Copyright © 2004 Prentice Hall. All rights reserved.1–14 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”

Copyright © 2004 Prentice Hall. All rights reserved.1–15 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

Copyright © 2004 Prentice Hall. All rights reserved.1–16 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.

Copyright © 2004 Prentice Hall. All rights reserved.1–17 Douglas McGregor: Theory X and Theory Y Theory X  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.

Copyright © 2004 Prentice Hall. All rights reserved.1–18 Douglas McGregor: Theory X and Theory Y (cont’d) Theory Y  People wanted to work hard.  People could enjoy work.  People could exercise substantial self-control.  Managers could trust employees if managers treated them right.

Copyright © 2004 Prentice Hall. All rights reserved.1–19 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.

Copyright © 2004 Prentice Hall. All rights reserved.1–20 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.

Copyright © 2004 Prentice Hall. All rights reserved.1–21 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.

Copyright © 2004 Prentice Hall. All rights reserved.1–22 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

Copyright © 2004 Prentice Hall. All rights reserved.1–23 Today’s Management Environment Globalization  The tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. Technological Advances The Nature of Work The Workforce Category Killers Modern Management Thought

Copyright © 2004 Prentice Hall. All rights reserved.1–24 Fundamental Changes Facing Managers FIGURE 1–2

Copyright © 2004 Prentice Hall. All rights reserved.1–25 Basic Management Features Today Smaller, More Entrepreneurial Organizational Units Team-Based and Boundaryless Organizations Empowered Decision- Making Flatter Organizational Structures, Knowledge- Based Management New Bases of Management Power Knowledge-Based Management An Emphasis on Vision Leadership Is Key

Copyright © 2004 Prentice Hall. All rights reserved.1–26 Source: Harvard Business Review, March–April 1998, p. 82. Copyright © 1998 by the President and Fellows of Harvard College. All rights reserved. FIGURE 1–3 The Evolution of a Faster Business Model

Copyright © 2004 Prentice Hall. All rights reserved.1–27