1. Introducing Modern Management1
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2. Objectives
1. An understanding of the importance of management to society and individuals 2. An understanding of the role of management 3. An ability to define management in several different ways 4. An ability to list and define the basic functions of management 5. Working definitions of managerial effectiveness and managerial efficiency 6. An understanding of basic management skills and their relative importance to managers 7. An understanding of the universality of management 8. Knowledge of skills that help managers become successful 9. Insights concerning what management careers are and how they evolve
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3. Importance of Management
Managers influence all phases of modern organisations. Plant managers run manufacturing operations… producing clothes we wear, food we eat, automobiles we drive, etc. Sales managers provide markets the goods for selling, personell managers? They have a serious influence in the society for everyone.
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4. Importance of management
Managers are the biggest occupational group in the UK
over 800,000 new jobs will be created in management between 2010 and 2017.
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5. Importance of Management
According to Peter Drucker,
"Management is what the modern world is all about.«
This statement means that almost all the development that has taken place in the world is due to efficient management.
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6. Good management Facilitates growth and expansion
Improves life of workers
Improves corporate image
Encourages Innovation
Optimum use of resources
Reduces wastage
Increases efficiency
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7. Management Skill The ability to work with people and
other organisational resources to
accomplish organisational goals.
- ability to work with people,
- ability to work with organisational resources
- accomplishing organisational goals.
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8. Role of Management
The role of managers is to guide organizations toward goal accomplishment.
All organizations exist for certain purposes or goals, and managers are responsible for combining and using organizational resources to ensure that their organizations achieve their purposes.
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9. The Management Task Assigning activities organization members perform
They encourage individual activity that will reach organizational goals and discourage those that may prevent the purposes.
So they must keep the goal in mind all the time.
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10. Defining Management
management is the process of reaching organizational goals by working with and through people and other organizational resources.
Three main characteristics:
1. It is a process or series of continuing and related activities.
2. It involves and concentrates on reaching organizational goals.
3. It reaches these goals by working with and through people and other organizational resources.
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11. The Management Task
Planning: Attaining goals. Through their plans, managers outline exactly what organization must do to be successful. Involves choosing tasks and outlining how the tasks must be performed and indicating when they should be performed.
Organizing: Creates a mechanism to put plans in to action. People within the organization are given work assignments that contributes to the company’s goals.
(involves determining of tasks and grouping of work)
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12. The Management Task
Influencing: Motivating and leading. Guiding the activities of organizational members in appropriate directions. It aims to increase productivity.
Controlling: Gather information that measures recent performance. Compare present performance with previous ones and finds what should be modified.
4 of these functions can not be separeted.
Performance of one depends on other.
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13. How can we establish a milk factory and make it progress?
Produce
Market
Sell
Stock
Etc…..Think of the management functions.
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14. The Management Process = Manegement Functions
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15. Managerial Effectiveness: Best use of resources
Managerial Effectiveness: Best use of resources. Best reach of goals and objectives. Managerial Efficiency: is the proportion of total organizational resources that contribute to productivity during the manufacturing process. Higher this proportion more efficient is the manager. If more resources are wasted during the production process more inefficient is the manager.
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16. Management Skill: The Key to Management Success
Applies to all types of organizations
Varies from one type of organization to another
The Theory of Characteristics
Henri Fayol
Positive physical and mental qualities
Special knowledge related to operation
B. C. Forbes
Personal qualities
Enthusiasm
Earnestness of purpose
Confidence
Faith in their own worthiness
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17. Managerial Effectiveness: Best use of resources
Managerial Effectiveness: Best use of resources. Best reach of goals and objectives. Managerial Efficiency: is the proportion of total organizational resources that contribute to productivity during the manufacturing process. Higher this proportion more efficient is the manager. If more resources are wasted during the production process more inefficient is the manager.
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall

18. The major activities that modern managers typically perform
1. Task-related activities are management efforts aimed at carrying out critical management-related duties in organizations. Such activities include short-term planning, clarifying objectives of jobs in organizations, and monitoring operations and performance. 2. People-related activities are management efforts aimed at managing people in organizations. Such activities include providing support and encouragement to others, providing recognition for achievements and contributions, developing skill and confidence of organization members, consulting when making decisions, and empowering others to solve problems. 3. Change-related activities are management efforts aimed at modifying organizational components. Such activities include monitoring the organization’s external environment, proposing new strategies and vision, encouraging innovative thinking, and taking risks to promote needed change.
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19. Management Skills: The Key To Management Success
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20. The Foundations Of Modern Management
Modern management had its roots in the Industrial Revolution
Machine replaced human labor
Business boomed
At that time the Question was? how to manage these new and large organizations?
They referred to exiting org. Such as military and religious for quidance.
Organizations had central decision making, rigid chains of command, specialized divisions of work and autocratic leadership
And there were no universities, business schools , management principles, management gurus, and management textbooks!!!
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21. CLASSICAL SCHOOL OF MGMT EMERGED
As the companies grew, and as competition became more intense, managers needed new ways to cut costs and boost efficiency
People needed better management theories and so the classical school of management emerged
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22. The Classical and Scientific School
Frederick Taylor –Classical management writer (first writer)in the early 1900s
He developed management principles and practices-scientific management
Taylor’s basic theme was that manages should scientifically study how work was done in order to identify the one best way” to get the job done.
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23. His four principles were;
1. Must find the “one best way” to perform the job,
(through observe other managers in different activities)
2. Scientific selection of personnel
(Know their limitations, capacity for development, find the best fit and train them )
3. Financial incentives
(selecting the right employee was not enough and he proposed incentive system based on performance (based on progress))
4. Functional Foremanships-specialized experts
proposed division of work ;managers planning, preparing, inspecting and employees did the actual work
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24. In 1920s business environment changed
People moved from farms to cities and become more depend on each other (social)
Jobs became more specialized and interdependent
Government become more involved in economic matters
Reformers established minimum wage and encouraging trade unions
Hard work , individualism and maximizing profit questioned?-building blocks of classical mgmt!
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25. The Foundations Of Modern Management (cont’d)
The Behavioral School (to design the most specialized and efficient job you can)
The Hawthorne plant Studies-in 1927 (Western Electric Co)
Harvard university researchers isolated employees and they change lunch brakes, ventilation , lightning etc
Researchers found
it was the social situations of the workers, not just the working conditions, that influenced behavior at work.
performance depend on other factors than rate of pay and working conditions
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26. Hawthorne effect and changing environment
The researchers discover that the employees were feeling themselves special under observation-called Hawthorne effect!
Employees behavior at work can not be programmed
Companies started to make more R&D activities diversify and increase their product lines(produce different products)
forced them to set up separate divisions and
empower lower level managers
Motivate their employees
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27. The Human Relations Movement
Because of the Hawthorne findings and the other social changes taking place after World War II, managers started taking a much more people oriented approach to managing employees
workers were not just “givens” in the system.
Workers have needs and desires that organizations have to accommodate.
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28. Douglas McGregor: Theory X and Theory Y
Theory X (he collected classical organization assumptions)
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.
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29. Douglas McGregor: Theory X and Theory Y (cont’d)
He pointed that Theory X does not work anymore
Managements need new organizations and practices to deal with diversification, decentralization and participative decision making
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.
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30. 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.
(e.g.) Industrial engineers solve inventory control problems.
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31. 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 in 1960 analyzed several firms in UK and found two approaches
Mechanistic management approach-best for organizations with long stable production runs
Organic organizations-best for flexible organizations which survives in highly competitive environment
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32. Today’s Management Environment
Globalization
The tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad.(Toyota, Dell-China, Pepsi Cyprus, NAFTA, EU…)
More globalisation means more competition and more competition means
more pressure to improve - to lower costs, to make employees more
productive and to do things better and less expensive.
Technological Advances
The “digital revolution”!!
(factory jobs becoming more technologically demanding)
Knowledge incentive high-tech manufacturing jobs in such industries as aerospace, computers, telecommunications, …
Employment moving from manual to knowledge workers.
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