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Chapter Objectives Define management Identify and explain the levels of management Explain the management process Understand the different perspectives of scientific management and the human relations movement
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What is Management Management is the process of deciding the best way to use an organization’s resources to produce goods or provide services Make good decisions Communicate well Delegate Make work assignments Train employees Evaluate employee performance
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Senior Middle Supervisory Levels of Management Middle Management:
Senior Management: Chairman of the Board Chief Executives (CEO, CFO, COO) Senior Vice Presidents Senior Middle Supervisory Middle Management: Department Directors Sales Manager Regional Manager Supervisory Management: Foreman Crew Leader Store Manager
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The Management Process
Three ways to examine how management works Tasks Roles Skills
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Management Tasks Planning Organizing Staffing Leading Controlling
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Management Roles Henry Mintzberg – 1970’s Interpersonal Informational
Identified ten key roles split into 3 categories Interpersonal Figurehead / Leader / Liaison Informational Monitor / Disseminator / Spokesperson Decisional Entrepreneur / Disturbance handler / Resource Allocator / Negotiator Managers need to be more “in the moment” How can management be improved and the skills of managers appropriately developed, without first understanding how manager spend their time He learned that managers were more called upon to be “in the moment” opposed to be focused on the far reaching strategic plans. He found that their work was often filled with constant interruptions, jumping form subject to subject and problem to problem, rarely being allowed to give their undivided and uninterrupted attention to anything for any length of time
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Management Skills Progress Questions 1-4 Conceptual Human Relations
Technical Progress Questions 1-4 Conceptual Skills helps managers understand how different part of a company relate to one another and to the company as a whole. Decision making, planning, and organizing Human relations Skills are skills that managers use to understand and work well with people. Interviewing job applicants, forming partnerships, and resolving conflicts Technical Skills are the specific abilities that people use to perform their jobs. Using tools to perform tasks
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The History of Management
Scientific Management Maximum output with minimum effort Elimination of waste and inefficiencies Time motion studies The relationship between people and work Both management and the employees benefited from the scientific management. New attitudes toward their respective duties and each other – focused on the human effort
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Frederick W. Taylor – 4 main principles
Ideas based on a concern proper job design and the worker Produce more = get paid more 1912 congressional investigation Fordism Mass production Low prices High wages Workers as customers 1912 congressional investigation was because some thought that Taylors efforts were only to increase productivity – his ideas were thought of as inhumane. Fordism Constant experimentation The speed of the line Repeated tasks lead to boredom – which produce low morale and high injuries High turnover – hired to keep the factory staffed at 14000 Raised the daily wage to $5 from $2.25 – half wage and half performance bonus Employees had to agree to conditions – no drinking or gambling, had to learn English The assembly line lowed production costs, which Lowered the price of the finished product Which made it more affordable to the common family Which made Ford more profit Which made it possible for Ford to pay his work force more Which made it possible for Ford employees to purchase what they made.
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Fayols Theory of Management – 14 principles
The functions of management Planning/Organizing/Leading/Staffing/Controlling Proper management of personnel and other resources is the key to organizational success Division of Work Authority Discipline Unity of Command Unity of Direction What is Best for the Team Remuneration Centralization Scalar Chain Order Equity Stability of Employment Initiative Esprit de corps In Europe in the early 1900’s but not in the States until the 1940’s He mostly focused on the planning and organizing functions – mainly because he view them as essential to the other functions Taylor’s and Foyel’s studies were complimentary to one another: Proper management of personnel and other resources is the key to organizational success
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The Human Relations Movement
The Great Depression – Unemployment > 25% The Golden Age of Unionism Supported by legislature and courts Claimed to understand employees
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Hawthorne Studies A project to define the relationship between physical working conditions and worker productivity Findings Altered the environment Expected productivity to decrease, but it increased What they really found out Employees reacted favorably when they got attention Reacted to psychological and social conditions Informal group pressures Individual recognition Participation in decision making Effective supervision affected productivity and morale
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The professional manager
Non existent until the 1930’s Did not necessarily have an ownership stake Responsible to employees, shareholders and the public Owner/manager Captains of Industry Financial managers Owners dominated until after the Civil War Captains dominated from 1880 to the turn of the century Financial managers from 1905 to 1930’s – never owning what they controlled
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Different leaders have different styles. Strict or leave them alone
Types of Leadership Different leaders have different styles. Strict or leave them alone Many utilize more than one style Autocratic / Democratic / Free-rein
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Autocratic One person runs it all Makes all decisions Does not consult others Gives the orders Expects perfection Employees are lazy Employees must be watched Not too many people want to work for this type of boss Theory X
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Democratic Works with others Discusses situation Listens to others Encourages ideas Makes the decision But explains the reason Assumes that people have ideas and want to contribute and will do the best that they can do Theory Y
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Free-Rein Manager set goals Leaves employees to get the job done
Places confidence & trust in workers Deals with broader decisions Answers questions Resolves conflict Progress Questions
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