1. Chapter Outline An Introduction to Management –Kinds of Managers –Basic Management Functions –Fundamental Management Skills The Evolution of Management –Classical Management Perspective Scientific Management & Administrative Theory –The Behavioral Management Perspective Human Relations and Human Resources Management –The Quantitative Management Perspective Contemporary Management Thought –The Systems Perspective –The Contingency Perspective –Contemporary Management Challenges and Opportunities

2. ManagementManagement A form of work that involves coordinating an organization’s human, financial, physical and information resources toward accomplishing organizational objectives. Attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. NOTE THESE CHARACTERISTICS: Goal-driven Activity is effective and efficient Uses the four managerial functions

3. What is Management? A set of activities planning and decision making, organizing, leading, and controlling directed at an organization’s resources human, financial, physical, and information with the aim of achieving organizational goals in an efficient and effective manner.

4. Efficiency versus 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 Successful Management

5. 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

6. The Management Process

7. The Functions of Management Planning –Setting an organization’s goals and selecting a course of action to achieve them. Organizing –Determining how activities and resources are grouped. Leading –Getting organizational members to work together to advance the interests of the organization. Controlling –Monitoring organizational progress towards goals.

8. Planning and Organizing Involve… Planning –Environmental scanning and analysis –Developing a vision of the future –Setting long-term organizational objectives –Developing organizational and competitive strategies Organizing –Defining tasks and duties –Grouping positions into effective structures (departments) –Clarifying authority, responsibility, and reporting relationships –Allocating scarce resources (financial, human, physical) –Staffing positions with qualified personnel

9. Leading and Controlling Involve… Leading –Effective communication –Inspiring others to do their best –Motivation and rewards –Trust and assurance Controlling –Clear standards –Monitoring progress and results –Knowing when and how to intervene –Correcting deviations successfully

10. What is a Manager? Someone whose primary responsibility is to carry out the management process. Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.

11. Figure 1.1 Kinds of Managers by Level and Area

12. Kinds of Managers by Level Top Managers –The relatively small group of executives who manage the organization’s overall goals, strategy, and operating policies. Middle Managers –Largest group of managers in organizations Implement top management’s policies and plans. Supervise and coordinate lower-level managers’ activities. First-Line Managers –Managers who supervise and coordinate the activities of operating employees.

13. Examples of Managers by Area Marketing Managers –Work in areas related to getting consumers and clients to buy the organization’s products or services. Financial Managers –Deal primarily with an organization’s financial resources. Operations Managers –Concerned with creating and managing the systems that create organization’s products and services Human Resource Managers –Involved in planning, recruiting and selection, training and development, designing compensation and benefit systems, formulating performance appraisal systems. Administrative Managers –Serve as generalists in functional areas and are not associated with any particular management specialty. E.g. Hospital or clinic management

14. Skills and the Manager Fundamental Management Skills Technical Skills Interpersonal Skills Conceptual Skills Diagnostic Skills Communication Skills Decision-Making Skills Time-Management Skills

15. Fundamental Management Skills Technical –Skills necessary to accomplish or understand the specific kind of work being done in an organization. Interpersonal –The ability to communicate with, understand, and motivate both individuals and groups. Conceptual –The manager’s ability to think in the abstract and to see the “big picture.” To perceive how all the parts fit together.

16. 3 Primary Managerial Skills (KATZ) Technical skills FOCUS IS ON WHAT IS DONE –Specialized knowledge and proficiency –Analytical ability –Works with things, tools and techniques Interpersonal skills FOCUS IS ON HOW SOMETHING IS DONE –Works with and through people –Effective as a group/team member –Motivates, communicates, & resolves conflicts Conceptual skills FOCUS IS ON WHY SOMETHING IS DONE –Sees the “big picture” (how the parts fit together) –Understands the corporation as a whole –Future-oriented…thinks strategically

17. Fundamental Management Skills (cont’d) Diagnostic –The manager’s ability to visualize the most appropriate response to a situation. Communication –The manager’s abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others. Decision-Making –The manager’s ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities. Time-Management –The manager’s ability to prioritize work, to work efficiently, and to delegate appropriately.

18. Management Skill Mixes at Different Organizational Levels

19. Key Managerial Roles (Mintzberg) Key Management Roles Interpersonal Roles Decisional Roles Informational Roles 1.Figurehead 2.Leader 3.Liaison 1.Figurehead 2.Leader 3.Liaison 1.Monitor 2.Disseminator 3.Spokesperson 1.Monitor 2.Disseminator 3.Spokesperson 1.Entrepreneur (Innovator) 2.Disturbance handler 3.Resource Allocator 4.Negotiator 1.Entrepreneur (Innovator) 2.Disturbance handler 3.Resource Allocator 4.Negotiator

20. Managerial Success Factors Personal Factors –Abilities and skills –Motivation –Personality Situational Factors –Nature of the work and environment –Relationships with subordinates and supervisors –Abilities of subordinates Actions Taken –Appropriate for the situation? Luck –Being in the right place at the right time?

21. Management: Science or Art? The Science of Management –Assumes that problems can be approached using rational, logical, objective, and systematic ways. –Requires technical, diagnostic, and decision-making skills and techniques to solve problems. The Art of Management –Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights. –Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities.

22. The Importance of Theory Most managers develop theories about how to run the organization Management Models represents the “real world” and how it functions Provides a framework for organizing knowledge & a blueprint for action –Helps us organize our knowledge –Tells us what to pay attention to and what to ignore –Helps us to understand why events occur (causal relationships) –Summarizes diverse findings and highlights relationships –Gives guidance about how to bring about positive change Three Types of Management Theories –DESCRIPTIVE 80% + –PREDICTIVE ~ 15% –PRESCRIPTIVE < 5%

23. Early Management Pioneers Robert Owen (1771–1858) –British industrialist who was one of the first managers to recognize the importance of human resources and the welfare of workers. Charles Babbage (1792–1871) –English mathematician who focused on creating efficiencies of production through the division of labor, and the application of mathematics to management problems.

24. Classical Management Perspective Scientific Management –Concerned with improving the performance of individual workers (i.e., efficiency). –Grew out of the industrial revolution’s labor shortage at the beginning of the twentieth century. Administrative Management –A theory that focuses on managing the total organization rather than individuals.

25. Scientific Management Frederick Taylor (1856–1915) –Replaced old methods of how to do work with scientifically-based work methods. Eliminated “soldiering,” where employees deliberately worked at a pace slower than their capabilities. –Believed in selecting, training, teaching, and developing workers. –Used time studies of jobs, standards planning, exception rule of management, slide-rules, instruction cards, and piece-work pay systems to control and motivate employees.

26. Steps in Scientific Management

27. Summary of Scientific Management Assumptions –Productivity is a primary workplace problem –Managers should plan and direct the work –Individuals are economically motivated Contributions –“Scientific” or systematic study of work (time and motion) –Division of labor…Managers vs workers –Setting of work standards (and job descriptions) –Careful selection and training of workers –Use of Incentives Limitations –Social “needs” of workers overlooked –Many studies weren’t very scientific –Loss of self-control alienated workers –Group dynamics were ignored

28. Administrative Management Theory Focuses on managing the whole organization rather than individuals –Henri Fayol (1841–1925) Was first to identify the specific management functions of planning, organizing, leading, and controlling. –Lyndall Urwick (1891–1983) Integrated the work of previous management theorists. –Max Weber (1864–1920) His theory of bureaucracy is based on a rational set of guidelines for structuring organizations.

29. Administrative Theory – Henry Fayol Functions of Management –Planning –Organizing –Commanding –Coordinating –Controlling Principles of Management –Division of Labor (specialization) –Scalar Chain of Command (hierarchy of authority) –Unity of Command (only one superior for each worker) –Span of Control (number of subordinates supervised)

30. Summary of Administrative Theory Assumptions –There is an ideal way to structure the organization and administer the management processes necessary for organizational success –Management skills are generalizable Contributions –Functions and Principles of management –Ideal Bureaucracy –Raised awareness of basic management problems likely to be found in any organization Limitations –Stressed a “one-best-way” of organizing and managing –Theories were based on intuition and observation rather than empirical investigation –Principles are not applicable to organizations which exist in turbulent environments

31. The Hawthorne Studies (1927–1932) Conducted by Elton Mayo and Fritz Roethlisberger at Western Electric –Illumination studies Relay Assembly 1 Relay Assembly 2 –Incentive Studies Mica-splitting Bank Wiring Room –Interview program Discoveries at Hawthorne –Hawthorne Effect –Catharsis –Informal Group Influence

32. Human Relations Management Views Assumptions –Workers are motivated by social relationships and needs –Satisfied workers are the most productive workers –Management needs strong social skills to be successful Contributions –Grew out of the Hawthorne studies –The “Hawthorne Effect” and “Catharsis” – attention given to workers impacts their behavior –Influence of the informal group –Emphasized worker needs and motivation Limitations –Happy, satisfied workers aren’t necessarily productive workers –Economics (money, wages) DOES affect work activity –Boring work isn’t less so with friendly supervisor – motivation problem –Suspicion that supervisor interest isn’t genuine – is this manipulation? –Should business be responsible for meeting ALL human needs on the job?

33. The Transition to Human Resource Management Abraham Maslow (1943) –Advanced a theory that employees are motivated by a hierarchy of needs that they seek to satisfy. Douglas McGregor (1964) –Proposed Theory X and Theory Y concepts of managerial beliefs about people and work. Frederick Herzberg (1965) –Proposed the Two-Factor Theory of motivation (hygienes and intrinsic factors) which implies that job enrichment is important.

34. Theory X and Theory Y Theory X Assumptions –People do not like work and try to avoid it, so managers have to control, direct, coerce, and threaten employees to get them to work toward organizational goals. –People prefer to be directed, to avoid responsibility, and to want security; they have little ambition. Theory Y Assumptions –People do not dislike work; work is a natural part of their lives. –People are internally motivated to reach objectives to which they are committed. People can be innovative in solving problems. –People are committed to goals to the degree that they receive rewards when they reach their objectives. –People both seek and accept responsibility under favorable conditions. –People are bright, but under most organizational conditions their potentials are underutilized.

35. Theory z Theory z…concept combining positive aspects of American and Japanese management into a modified approach aimed at increasing managerial effectiveness. Developed by William Ouchi Theory Z Assumptions Long term employment Less specialized career paths Informal control Group decision making Concern for individual rises above work related issues

36. Emergence of Organizational Behavior A contemporary field focusing on behavioral perspectives on management. –Draws on psychology, sociology, anthropology, economics, and medicine. Important topics in organizational behavior research: –Job satisfaction and job stress –Motivation and leadership –Group dynamics and organizational politics –Interpersonal conflict –The structure and design of organizations

37. Human Resource Management Views Assumptions –Interesting work motivates intrinsically –Workers are trustworthy…give them responsibility –The Manager’s job is to challenge workers to develop their talents Contributions –Theory X and Y –Participative decision-making and management –Job Enrichment and Job Redesign –Management by Objectives –More rigorously-tested theories Limitations –Not everyone wants a challenging job –Complexity of individuals makes behavior difficult to predict. –Contemporary research findings are not often communicated to practicing managers in an understandable form.

38. Quantitative Management Perspective Quantitative Management –Emerged during World War II to help the Allied forces manage logistical problems. –Focuses on decision making, economic effectiveness, mathematical models, and the use of computers to solve quantitative problems.

39. Quantitative Management, Contd Management Science –Focuses on the development of representative mathematical models to assist with decisions. Operations Management –Practical application of management science to efficiently manage the production and distribution of products and services. Quality Management –Statistical improvement models

40. Quantitative Management Contributions –Developed sophisticated quantitative techniques to assist in decision making. –Application of models has increased our awareness and understanding of complex processes and situations. –Has been useful in the planning and controlling processes. Limitations –Quantitative management cannot fully explain or predict the behavior of people in organizations. –Mathematical sophistication may come at the expense of other managerial skills. –Quantitative models may require unrealistic or unfounded assumptions, limiting their general applicability.

41. The Systems Perspective of Organizations

42. Systems Perspectives for Managers A system is an interrelated set of elements functioning as a whole Open system –An organizational system that interacts with its environment. Closed system –An organizational system that does not interact with its environment. Subsystems –A system within another system. Their importance is due to their interdependence on each other within the organization.

43. The Contingency Perspective Universal Perspectives –Include the classical, behavioral, and quantitative approaches. –An attempt to identify the “one best way” to manage organizations. The Contingency Perspective –Suggests that each organization is unique. –The appropriate managerial behavior for managing an organization depends (is contingent) on the current situation in the organization.

44. An Integrative Framework of Management Perspectives Systems Approach Recognitionof internal interdependencies Recognition of environmental influences Contingency Perspective Recognitionof the situational nature of management Response to particular characteristics of situation Classical Management Perspectives Methods for enhancing efficiency and facilitating planning, organizing, and controlling Behavioral Management Perspectives Insights for moti- vating performance and understanding individual behavior, groups and teams, and leadership Quantitative Management Perspectives Techniques for improving decision making, resource allocation, and operations Effective and efficient management

45. Total Quality Management TQM is a management style that integrates of all functions of a business to achieve a high quality product. As an integrated method, it involves every aspect of company. The major hall marks are… Customer satisfaction Quality as the responsibility of all employees Teamwork TQM encourages employees to grow and learn and to participate in improvements, so it exemplifies a participative management style.

46. Management By Walking Around MBWA is a classical technique used by good managers who are pro active listeners. Managers using this style gather as much as information as possible so that a challenging situation does not turn into a big problem. Listening carefully to employees suggestions and concerns will help evade potential crises.

47. Management By Objectives MBO is a company wide process in which employees actively participate in setting goals that are tangible, verifible and measureable. Xerox, Intel and Du Pont are examples of few companies that use MBO at all levels of Organization. There are four steps involved in the MBO process:  Setting goals  Participative decision making  Implementing plans  Performance feed back

48. Prepared By…… A.S.M.Monjur-Al-Hossain M.Pharm (D.U.) Lecturer, Pharmacy Discipline Khulna University