2.  External and Internal Environment  Types of Businesses  What is a non profit business?

3.  Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplished selected aims.

4. Top level Managers Middle Level Managers First level Supervisors

5. Conceptual and Design Skills – Top Managers Human Skills for Middle Managers Technical skills for Supervisors

7.  Productivity = outputs/inputs  “The greatest opportunity for increasing productivity is surely to be found in knowledge work itself, and especially in management.” - Peter F. Drucker  Effectiveness is the achievement of objectives.  Efficiency is the achievement of the ends with the least amount of resources.

8.  Managing as a practice is an art;  The organized knowledge underlying the practice may be referred to as a science.

9.  Concepts. Mental images of anything formed by generalization from particulars.  Scientific Method. Determination of facts through observation.  When generalizations and hypothesis are tested, they are called Principles.  Theory. It is a systematic grouping of a interdependent concepts and principles that gives a framework to, or ties together, a significant area of knowledge.

11.  System Defined  A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.  Basic Types of Systems  Closed systems ▪ Are not influenced by and do not interact with their environment (all system input and output is internal).  Open systems ▪ Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

13.  Coordination of the organization’s parts is essential for proper functioning of the entire organization.  Decisions and actions taken in one area of the organization will have an effect in other areas of the organization.  Organizations are not self-contained and, therefore, must adapt to changes in their external environment.

15.  Ancient Management  Egypt (pyramids) and China (Great Wall)  Venetians (floating warship assembly lines)  Adam Smith  Published “The Wealth of Nations” in 1776 ▪ Advocated the division of labor (job specialization) to increase the productivity of workers  Industrial Revolution  Substituted machine power for human labor  Created large organizations in need of management

16.  Scientific Management  Operational Management Theory  Quantitative Management Approach  The Emergence of Behavioral Science  Systems Approach

17.  Fredrick Winslow Taylor  The “father” of scientific management  Published Principles of Scientific Management (1911) ▪ The theory of scientific management ▪ Using scientific methods to define the “one best way” for a job to be done:  Putting the right person on the job with the correct tools and equipment.  Having a standardized method of doing the job.  Providing an economic incentive to the worker.

18. Copyright © 2005 Prentice Hall, Inc. All rights reserved.2–18 Exhibit 2.2 1.Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method. 2.Scientifically select and then train, teach, and develop the worker. 3.Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4.Divide work and responsibility almost equally between management and workers. 5.Management takes over all work for which it is better fitted than the workers.

19.  Frank and Lillian Gilbreth  Focused on increasing worker productivity through the reduction of wasted motion  Developed the microchronometer to time worker motions and optimize performance  How Do Today’s Managers Use Scientific Management?  Use time and motion studies to increase productivity  Hire the best qualified employees  Design incentive systems based on output

20.  Henri Fayol  Believed that the practice of management was distinct from other organizational functions  Developed fourteen principles of management that applied to all organizational situations

21. Exhibit 2.3 1.Division of work. 2.Authority. 3.Discipline. 4.Unity of command. 5.Unity of direction. 6.Subordination of individual interest to the interests of the organization. 7.Remuneration. 8.Centralization. 9.Scalar chain. 10.Order. 11.Equity. 12.Stability of tenure of personnel. 13.Initiative. 14.Esprit de corps.

22.  Quantitative Approach  Also called operations research or management science  Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems  Focuses on improving managerial decision making by applying: ▪ Statistics, optimization models, information models, and computer simulations

23.  Organizational Behavior (OB)  The study of the actions of people at work; people are the most important asset of an organization  Early OB Advocates  Robert Owen  Hugo Munsterberg  Mary Parker Follett  Chester Barnard

24.  A series of productivity experiments conducted at Western Electric from 1927 to 1932.  Experimental findings  Productivity unexpectedly increased under imposed adverse working conditions.  The effect of incentive plans was less than expected.  Research conclusion  Social norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives.

27.  Interpersonal Roles  The figurehead role  The leader role  The liaison role  Informational Roles  The recipient role  Disseminator role  The spokesperson role  Decision Roles  The entrepreneurial role  The disturbance-handler role  The resource-allocator role  The negotiator role

28.  Strategy  Structure  Systems  Style  Staff  Shared value  Skills

29.  Contingency Approach Defined  Also sometimes called the situational approach.  There is no one universally applicable set of management principles (rules) by which to manage organizations.  Organizations are individually different, face different situations (contingency variables), and require different ways of managing. 2–29

30. Exhibit 2.7 Organization size Routineness of task technology Environmental uncertainty Individual differences

31.  Globalization  Ethics  Workforce Diversity  Entrepreneurship  E-business  Knowledge Management  Learning Organizations  Quality Management

32.  Globalization  Management in international organizations  Political and cultural challenges of operating in a global market  Ethics  Increased emphasis on ethics education in college curriculums  Increased creation and use of codes of ethics by businesses 2–32

33.  Workforce Diversity  Increasing heterogeneity in the workforce ▪ More gender, minority, ethnic, and other forms of diversity in employees  Aging workforce ▪ Older employees who work longer and do not retire ▪ The increased costs of public and private benefits for older workers ▪ An increasing demand for products and services related to aging.

34.  Entrepreneurship Defined  The process whereby an individual or group of individuals use organized efforts to create value and grow by fulfilling wants and needs through innovation and uniqueness.  Entrepreneurship process  Pursuit of opportunities  Innovation in products, services, or business methods  Desire for continual growth of the organization 2–34

35.  E-Business (Electronic Business)  The work preformed by an organization using electronic linkages to its key constituencies  E-commerce: the sales and marketing component of an e-business  Categories of E-Businesses  E-business enhanced organization  E-business enabled organization  Total e-business organization

36. Exhibit 2.9

37.  Knowledge Management  The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.  Learning Organization  An organization that has developed the capacity to continuously learn, adapt, and change.

39.  What is meant by the term “management theory jungle”?  Do various approaches to the analysis of management represent a management theory jungle, or do they represent simply an intellectual division of labor?

41.  Behavioral Approach  Problems