1. Management: An Overview

2. What Is An Organization?
An Organization Defined
A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone).
A collections of people who work together and coordinate their actions to achieve a wide variety of goals

3. What is an Organization
Common Characteristics of Organizations
Have a distinct purpose (goal)
Composed of people
Have a deliberate structure

4. The Changing Organization

5. What is Management?
Management is the force that unifies human as well as non-human resources in the service of organizational goals.
It is the attainment of organizational goals in an efficient and effective manner through planning, organizing, leading and controlling organizational resources.

6. What is Management?
Definition: Coordinating work activities so that they are completed efficiently and effectively with and through other people
Efficiency: “Doing things right”; getting the most output from the least input
Effectiveness: “Doing the right things”; completing activities so that the organization’s goals are attained.

7. What is Management?
Resources include people, skills, know-how and experience, machinery, raw materials, computers and IT, patents, financial capital, and loyal customers and employees

8. Management in Organizations
Inputs from the environment •
Human resources
Financial resources
Physical resources
Information resources
Planning
and decision
making
Leading
Organizing
Controlling
Goals attained
Efficiently
Effectively

9. The Management Process
Organizing
Determining how
best to group
activities and
resources
Controlling
Monitoring
and correcting
ongoing activities
to facilitate goal
attainment
Planning and
Decision Making
Setting the organiza-
tion ’
s goals and
deciding how best
to achieve them
Leading
Motivating members
of the organization
to work in the best
interests of the
organization

10. Classical Management Functions Updated Management Functions
Planning
Organizing
Staffing
Leading
Controlling
Making Things Happen
Meeting the Competition
Organizing People, Projects, and Processes
Classical Management Functions
Updated Management Functions
Classical functions of management are planning, controlling, organizing, and leading.
Planning is determining organizational goals and a means for achieving them. Controlling is monitoring progress toward goal achievement and taking corrective action when progress isn’t being made. Organizing is deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company. Leading is inspiring and motivating workers to work hard to achieve organizational goals.
Old-style managers think of themselves as the “manager” or the “boss.” New-style managers think of themselves as sponsors, team leaders, or internal consultants. Old-style managers follow the chain of command (reporting to the boss, who reports to the next boss at a higher managerial level, etc.), while new-style managers work with anyone who can help them accomplish their goals. Old-style managers make decisions by themselves. New-style managers ask others to participate in decisions. Old-style managers keep proprietary company information confidential. New-style managers share that information with others. Old-style managers demand long hours. New-style managers demand results.
Note that these new functions do not replace the classical functions of management; they build on them.
The textbook is organized around the four updated management functions, as shown on this slide, which have evolved out of the classical functions.

11. Four Functions of Management

12. Planning
Process of identifying and selecting appropriate organizational goals and courses of action

13. Steps in the Planning Process
Deciding which goals the organization will pursue
Deciding what courses of action to adopt to attain those goals
Deciding how to allocate organizational resources

14. Planning Complex, difficult activity
Strategy to adopt is not always immediately clear
Done under uncertainty

15. Organizing
Task managers perform to create a structure of working relationships that allow organizational members to interact and cooperate to achieve organizational goals

16. Organizing
Involves grouping people into departments according to the kinds of job-specific tasks they perform
Managers lay out lines of authority and responsibility
Decide how to coordinate organizational resources

17. Organizational Structure
A formal system of task and reporting relationships that coordinates and motivates members so that they work together to achieve organizational goals

18. Leading
Articulating a clear organizational vision for its members to accomplish, and energize and enable employees so that everyone understands the part they play in achieving organizational goals

19. Leading
Leadership involves using power, personality, and influence, persuasion, and communication skills
Outcome of leadership is highly motivated and committed workforce

20. Controlling
Task of managers is to evaluate how well an organization has achieved its goals and to take any corrective actions needed to maintain or improve performance
The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness

21. Organizational Performance
A measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals

23. Effectiveness and Efficiency in Management

24. Organizational Performance
Efficiency
A measure of how well or how productively resources are used to achieve a goal
Effectiveness
A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.
Productivity
It is a measure of output from a production process, per unit of input.

25. Getting work done through others
Management is…
Effectiveness
Efficiency
Getting work done through others
Management is getting work done through others.
Managers have to be concerned with efficiency and effectiveness in the workplace. Efficiency is getting work done with a minimum of effort, expense, or waste. Effectiveness is accomplishing tasks that help full organizational objectives, such as customer service and satisfaction.

26. Characteristics of Management
Management is Intangible
Management is Goal-oriented
Management is Universal
Management is a Social Process
Management is a group activity
Management is a system of authority
Management is an activity
Management is multidisciplinary
Management is a Science as well as an Art

27. Why Study Management? The Value of Studying Management
The universality of management
Good management is needed in all organizations.
The reality of work
Employees either manage or are managed.
Rewards and challenges of being a manager
Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work.
Successful managers receive significant monetary rewards for their efforts.

28. Universal Need for Management

29. Who Are Managers? Manager
Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished.
The people responsible for supervising the use of an organization’s resources to meet its goals

30. Managerial Tasks
Managers at all levels in all organizations perform each of the four essential managerial tasks of planning, organizing, leading, and controlling
Henri Fayol outlined the four managerial functions in his book General Industrial Management

31. Classifying Managers First-line Managers Middle Managers Top Managers
Individuals who manage the work of non- managerial employees.
Middle Managers
Individuals who manage the work of first-line managers.
Top Managers
Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.

32. Levels of Management Top Level Management Middle Level Management
First-Line
Management

33. Top Managers Responsible for… Creating a context for change
Developing attitudes of commitment and ownership in employees
Creating a positive organizational culture through language and action
Monitoring their business environments
Top managers hold positions like chief executive officer (CEO) or chief operating officer (COO) and are responsible for the overall direction of the organization.

34. Middle Managers Responsible for…
Setting objectives consistent with top management goals, planning strategies
Coordinating and linking groups, departments, and divisions
Monitoring and managing the performance of subunits and managers who report to them
Implementing the changes or strategies generated by top managers
Middle managers hold positions like plant manager, regional manager, or divisional manager.
Note how middle managers’ responsibilities are influenced by those of top managers.
Note also how their responsibilities are more narrowly focused than of top managers.

35. First-Line Managers Responsible for…
Managing the performance of entry-level employees
Teaching entry-level employees how to do their jobs
Making schedules and operating plans based on middle management’s intermediate-range plans
First-line managers hold positions like office manager, shift supervisor, or department manager.
First-line managers are the only managers who don’t supervise other managers.
They are closest to employees and have daily contact with employees.

36. What Companies Look for in Managers
Technical Skills
Human Skill
Conceptual Skill
Design Skill
Technical skills are most important for lower level managers, because these managers supervise the workers who produce products or serve customers. Team leaders and first-line managers need technical knowledge and skills to train new employees and help employees solve problems. Technical skills become less important as managers rise through the managerial ranks, but they are still important.
Human skills are equally important at all levels of management, from first-line supervisors to CEOs. However, because lower level managers spend much of their time solving technical problems, upper level managers may actually spend more time dealing directly with people.
Conceptual skill is the ability to see the organization as a whole, how the different parts of the company affect each other, and how the company fits into or is affected by its external environment. Conceptual skill increases in importance as managers rise through the management hierarchy.
Managers typically have a stronger motivation to manage than their subordinates, and managers at higher levels usually have stronger motivation to manage than managers at lower levels.
Furthermore, managers with stronger motivation to manage are promoted faster, are rated by their employees as better managers, and earn more money than managers with a weak motivation to manage.

37. Skills and the Manager
Technical Skills – ability to accomplish or understand tasks relevant to the organization
Interpersonal Skills – ability to communicate understand, and motivate other people, individually and in groups
Conceptual Skills – the ability to understand the the big picture, ability to analyze and diagnose the overall workings of the organization and its environment
Diagnostic Skills – the ability to recognize the symptoms of a problem then determine a way to fix it
Communication Skills – ability to both effectively convey ideas and information to others and to receive ideas and information from others
Decision-making Skills - the ability to correctly recognize and define problems and opportunities and then select appropriate courses of action
Time Management Skills – the ability to prioritize work, to work efficiently, and to delegate appropriately

38. Managerial Skills Conceptual skills Human skills Technical skills
The ability to analyze and diagnose a situation and distinguish between cause and effect.
Human skills
The ability to understand, alter, lead, and control the behavior of other individuals and groups.
Technical skills
Job-specific skills required to perform a particular type of work or occupation at a high level.

39. Fundamental Management Skills
Management Skill Mixes at Different Organizational Levels

40. Core skills and their use in the different levels
Managerial levels
Middle
Lower
Top
Conceptual skills
Human skills
Technical skills

41. What Managers Actually Do (Mintzberg)
Interaction
with others
with the organization
with the external context of the organization
Reflection
thoughtful thinking
Action
practical doing

42. What do Manager’s do : Managerial Roles
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
Interpersonal
Informational
Decisional
Interpersonal Roles–interacting with others
figurehead role: managers perform ceremonial duties
leader role: managers motivate and encourage workers to accomplish organizational objectives
liaison role: managers deal with people outside their units
Informational Roles–obtaining and sharing information
monitor role: managers scan their environment for information, actively contact others for information
disseminator role: managers share the information they have collected with their subordinates and others in the company
Decisional Roles–making good decisions
entrepreneur role: managers adapt themselves, their subordinates, and their units to incremental change
disturbance handler role: managers respond to pressures and problems so severe that they demand immediate attention and action
resource allocator role: managers decide who will get what resources and how many resources they get
negotiator role: managers negotiate schedules, projects, goals, outcomes, resources, and employee raises

43. Decisional Roles
Roles associated with methods managers use in planning strategy and utilizing resources.
Entrepreneur—deciding which new projects or programs to initiate and to invest resources in.
Disturbance handler—managing an unexpected event or crisis.
Resource allocator—assigning resources between functions and divisions, setting the budgets of lower managers.
Negotiator—reaching agreements between other managers, unions, customers, or shareholders.

44. Interpersonal Roles
Roles that managers assume to provide direction and supervision to both employees and the organization as a whole.
Figurehead—symbolizing the organization’s mission and what it is seeking to achieve.
Leader—training, counseling, and mentoring high employee performance.
Liaison—linking and coordinating the activities of people and groups both inside and outside the organization.

45. How The Manager’s Job Is Changing
The Increasing Importance of Customers
Customers: the reason that organizations exist
Managing customer relationships is the responsibility of all managers and employees.
Consistent high quality customer service is essential for survival.
Innovation
Doing things differently, exploring new territory, and taking risks
Managers should encourage employees to be aware of and act on opportunities for innovation.

46. Management Theory Pre-Classical Classical Approaches
Frederick Taylor: Scientific Management (1886)
Frank and Lillian Gilbreth: Time/motion studies (later 1800s)
Henri Fayol: 14 Principles of Management (1880s-1890s)
Max Weber : Bureaucracy (1920s)
Behavioral Approaches
The Hawthorne Experiment (1927)
MacGregor’s Theory X and Theory Y (1960)
Quantitative Approaches
Contemporary Approaches
Ouchi’s Theory Z (1981)
Contingency Management

47. Challenges for Management in a Global Environment
Rise of Global Organizations.
Building a Competitive Advantage
Maintaining Ethical Standards
Managing a Diverse Workforce
Utilizing Information Technology and Technologies
Global Crisis Management

48. Classical Approaches Frederick Taylor: Scientific Management (1886)
Frank and Lillian Gilbreth: Time and motion studies (later 1800s)
Henri Fayol: Fourteen Principles of Management (1880s-1890s)
Max Weber : Bureaucracy (1920s)

49. Frederick W. Taylor Developed Scientific Management
Laid foundation for the study of management
Key ideas:
Management as a separate field of study
Explicit guidelines for scientific study of management functions
Time studies for setting standards
Functional specialization of managers’ duties
Piece-rate Incentive systems

50. Taylor’s Principles of Management
The “one best way.”
Management using scientific observation
Scientific selection of personnel
Put right worker in right job, find limitations, train
Financial incentives
Putting right worker in right job not enough
A system of financial incentives is also needed
Functional foremanship
Division of labor between manager and workers
Manager plans, prepares, inspects
Worker does the actual work
“Functional foremen” , specialized experts, responsible for specific aspects of the job

51. Frank & Lillian Gilbreth
Time and motion efficiency experts
Developed therbligs, breakdown of manual skills into 16 actions
Frank was a lazy bricklayer looking for an easier way and Lillian was a psychologist.
Endorsed piece-work and suggested a higher rate per unit if his directions were followed.
Disagreed with Taylor’s idea that management should choose which workers took which jobs.

52. Henri Fayol
First came up with the five basic functions of management—Planning, Organizing, Staffing, Directing, Communicating, and Controlling
First wrote that management is a set of principles which can be learned.
Developed Fourteen Principles of Management

53. HENRI FAYOL’s
FOURTEEN PRINCIPLES OF MANAGEMENT

54. 1. Specialization of labor
1. Specialization of labor. Specializing encourages continuous improvement in skills and the development of improvements in methods.
2. Authority. The right to give orders and the power to exact obedience.
3. Discipline. No slacking, bending of rules.
4. Unity of command. Each employee has one and only one boss.
5. Unity of direction. A single mind generates a single plan and all play their part in that plan.
6. Subordination of Individual Interests. When at work, only work things should be pursued or thought about.
7. Remuneration. Employees receive fair payment for services, not what the company can get away with.

55. 8. Centralization. Consolidation of management functions
8. Centralization. Consolidation of management functions. Decisions are made from the top.
9. Scalar Chain (line of authority). Formal chain of command running from top to bottom of the organization, like military
10. Order. All materials and personnel have a prescribed place, and they must remain there.
11. Equity. Equality of treatment (but not necessarily identical treatment)
12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers.
13. Initiative. Thinking out a plan and do what it takes to make it happen.
14. Esprit de corps. Harmony, cohesion among personnel.

56. Max Weber Coined “bureaucracy”: the perfect office
Well defined chain of command
Clear division of work (job descriptions)
Procedures for any situation
Impersonality
Employment and promotion based on technical competence.

57. Behavioral Approaches
The Hawthorne Experiment (1927)
Chester Barnard (1930s – 1960s)
Herbert Simon (1947)
MacGregor’s Theory X and Theory Y (1960)

58. The Hawthorne Experiment
Research conducted at the Hawthorne plant of the Western Electric Company near Chicago,
Initial study: effects of lighting on worker performance
But the “Hawthorne Effect” was instead identified
The workers values, desires, and needs may be more important than physical conditions.
Workers want to have input.
Workers want to be respected.

59. Theories X and Y Conducted in 1960s by Douglas McGregor
Theory X: classical theory
Most people dislike work and responsibility, they are motivated only by money and do not care about the job.
Close supervision is required and people must be carefully controlled and coerced into working
Average person prefers direction

60. Theories X and Y Theory Y: Modern Management Theory
People often enjoy their work and will exercise self-control at work.
People are motivated by wanting to do a good job and will do well if the opportunity is presented
People have capacity for imagination, ingenuity, and creativity
People enjoy expending physical and mental effort in work as much as play and rest

61. Contemporary Approaches
Ouchi’s Theory Z (1981)
Contingency Management

62. Ouchi’s Theory Z Theory Z Value of culture in an industrial society
Intimate and cooperative work relationships
Alienated in work environment in which family ties, traditions, and social institutions are minimized
Workers have strong sense of moral obligation, discipline and order

63. Contingency Management
Managing in Different and Changing Situations
Require managers to use different approaches and techniques
Contingency perspective - different ways of managing are required in different organizations and different circumstances
stresses that there are no simplistic or universal rules
contingency variable
© Prentice Hall, 2002

64. Brief Behavioral Quantitative Approach System Theory
Mary Parker Follet : “Power Sharing”
Chris Argyris: Model I & Model II Organisations
Quantitative Approach
Management Science
Operation Management
MIS
System Theory