Tariq Hussain Rashid

Introduction to Management and Organizations



What Is An Organization?
‡ An Organization Defined 
A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone).

‡ Common Characteristics of Organizations 
Have a distinct purpose (goal)  Composed of people  Have a deliberate structure or process

Types of Organizations
‡ For-Profit-Organizations For-Profit‡ Not-For-Profit-Organizations Not-For-Profit‡ Governmental Organizations 
Non-Governmental Organizations Non-


Characteristics of Organizations


Universal Need for Management

Who Are Managers?
‡ Manager 
Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished.

Classifying Managers
‡ First-line Managers First Individuals who manage the work of non-managerial nonemployees.

‡ Middle Managers 
Individuals who manage the work of first-line firstmanagers.

‡ Top Managers 
Individuals who are responsible for making organization-wide decisions and establishing plans organizationand goals that affect the entire organization.

Exhibit 1±1 Managerial Levels 1±

What Is Management?
‡ Managerial Concerns 

³Doing things right´ ± is the ability to make the best use of available resources in the process of achieving goals. Efficiency is the ration of inputs used to achieve some level of outputs. 


³Doing the right things´ ± is the ability to choose appropriate goals and to achieve those goals.


Effectiveness and Efficiency in Management

What Do Managers Do?
‡ Functional Approach 

function that involves the process of defining goals, establishing strategies for achieving those goals. And developing plans to integrate and coordinate activities.

What Do Managers Do?
‡ Functional Approach 

function that involves the process of determining what tasks are to be done. Who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

What Do Managers Do?
‡ Functional Approach 

function that involves motivating subordinates, influencing individuals or teams as they work, selecting the most effective communication channels, or dealing in any way with employee behavior issues.

What Do Managers Do?
‡ Functional Approach

function that involves monitoring actual performance, comparing actual to standard and taking corrective action, if necessary.


Management Functions

Time spent in carrying out managerial functions

What Do Managers Do? (cont¶d)
‡ Manager¶s Roles:
A role is an organized set of behaviors that is associated with a particular office or position. In the late 1960s, Henry Mintzberg concluded that managers perform 10 different, but highly interrelated roles.

What Do Managers Do? (cont¶d)
‡ Management Roles:
Interpersonal roles
involve developing and maintaining positive relationships with others.  1) The figurehead performs symbolic legal or social duties.  2) The Leader builds relationships with employees and communicates with, motivates, and coaches them.  3) The liaison maintains a network of contacts outside the work unit to obtain information. 

What Do Managers Do? (cont¶d)
‡ Management Roles:
Informational roles
Informational roles pertain to receiving and transmitting information so that managers can serve as the nerve centers of their organizational units.  1) The monitor seeks internal and external information about issues that can affect the organization.  2) The disseminator transmits information internally that is obtained from either internal or external sources.  3) The spokesperson transmits information about the organization to outsiders. 

What Do Managers Do? (cont¶d)
‡ Management Roles:
Decisional roles
Decisional roles involve making significant decisions that affect the organization.  1) The entrepreneur acts as an initiator, designer, and encourager of change and innovation.  2) The disturbance handler takes corrective action when the organization faces important, unexpected difficulties.  3) The resource allocator distributes resources of all types, including time, funding, equipment, and human resources.  4) The negotiator represents the organization in major negotiations affecting the manager¶s areas of responsibility 

What Do Managers Do? (cont¶d)
‡ Skills Approach 
Technical skills 

are skills that reflect both an understanding of and a proficiency in a specialized field. Technical skills include knowledge of and proficiency in a certain specialized field, such as engineering, computers, accounting, or manufacturing. These skills are more important at lower levels of management since these managers are dealing directly with employees doing the organization¶s work.  

What Do Managers Do? (cont¶d)
‡ Skills Approach Human skills 

associated with a manager¶s ability to work well with others both as a member of a group and as a leader who gets things done through others.  Because managers deal directly with people, this skill is crucial! Managers with good human skills are able to get the best out of their people. They know how to communicate, motivate, lead, and inspire enthusiasm and trust. These skills are equally important at all levels of management.

What Do Managers Do? (cont¶d)
‡ Skills Approach  Conceptual skills
are skills related to the ability to visualize the organization as a whole, recognize interrelationships among organizational parts, and understand how the organization fit into the wider context of the industry, community, and world.  Conceptual skills are the skills managers must have to think and to conceptualize about abstract and complex situations. Using these skills, managers must be able to see the organization as a whole, understand the relationships among various departments, and visualize how the organization fits into its broader environment. 

Practical approach

Practical approach

Exhibit 1±5 Skills Needed at Different Management Levels 1±

Skills versus Management Levels

The Great Pyramids ‡ The construction of a single pyramid occupied more than 100,000 workers for 20 years. ‡ covers thirteen acres and contains 2,300,000 stone blocks. ‡ The blocks weigh about two and a half tons each and were cut to size many miles away. ‡ how they managed 100,000 workers in a twentyyear project

The Great China Wall ‡ The Great China Wall built in the time period of 956 years. ‡ It is 6000 Km long ‡ Its base is 20 feet wide and top 11 feet wide. ‡ According to history, the purpose of china wall was: ‡ ‡ To mark territories ‡ ‡ To defend the area ‡ ‡ To protect silk road

Pre-classical Contributors:
1. Robert Owen (1771-1858) was a British factory owner who advocated concern for the working and living conditions of workers, many of them young children. Many of his contemporaries thought he was a radical for such ideas. 2. Charles Babbage (1792-1871) is considered to be the ³father of modern computing.´ He foresaw the need for work specialization involving mental work. His management ideas also anticipated the concept of profit sharing to improve productivity. 3. Henry E. Towne (1844-1924) called for the establishment of a science of management and the development of management principles that could be applied across management situations.

Scientific management:

Scientific management is defined as the use of the scientific method to define the ³one best way´ for a job to be done.

Important Contributions:
Frederick Winslow Taylor (1856-1915)  Taylor¶s Four Principles of Scientific Management: 1. Study each part of the task scientifically, and develop a

best method to perform it. 2. Carefully select workers and train them to perform a task using the scientifically developed method. 3. Cooperate fully with workers to ensure they use the proper method.  4. Divide work and responsibility so management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly.

Important Contributions: Frank and Lillian Gilbreth (1868-1924 and 1878-1972)
perfected the time-and-motion study techniques first introduced by Taylor. b. Together they provided the first vocabulary for identifying hand, arm, and body motions used at work²which they called ³Therbligs.´ c. Lillian¶s doctoral dissertation was published as the book, The Psychology of Management, one of the first books published on the findings of psychology in the workplace. d. Frank ³proved´ the value of motion studies in his own construction company whose productivity was nearly three times better than his competitors who used the older work methods.
a. They

Administrative Viewpoint
Henri Fayol (1841-1925) : 

a successful French industrialist, developed theories about management he thought could be taught to those individuals with administrative responsibilities. Fayol gives us 14 principles of management which are still being used nowadays.

Henri Fayol (1841-1925): 14 Principles
1. Division of work Specialization increases output by making employees more efficient. 2. Authority. Managers must be able to give orders. Authority gives them this right. Along with authority, however, goes responsibility. 3. Discipline. Employees must obey and respect the rules that govern the organization. 4. Unity of Command An employee should receive orders from one superior only.

Henri Fayol (1841-1925): 14 Principles
5. Unity of direction.
The organization should have a single plan of action to guide managers and workers. 6. Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole. 7. Remuneration. Workers must be paid a fair wage for their services. 8. Centralization. This term refers to the degree to which subordinates are involved in decision making.

9. Scalar Chain. The line term refers to the degree to which subordinates are involved I decision making. 10. Order. People and materials should be in the right place at the right time. 11. Equity. Managers should be kind and fair to their subordinates. 12. Stability of tenure of personnel Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. 13. Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort. 14. Esprit de corps Promoting team spirit will build harmony and unity within the organization.

Henri Fayol (1841-1925): 14 Principles

Behavioral Viewpoint of Management:
1. Robert Owen, a successful Scottish businessman, proposed a utopian workplace. 2. Hugo Munsterberg created the field of industrial psychology²the scientific study of individuals at work to maximize their productivity and adjustment. 3. Mary Parker Follett was a social philosopher who thought the manager¶s job was to harmonize and coordinate group efforts. 4. Chester Barnard, president of New Jersey Bell Telephone Company, saw organizations as social systems that required human cooperation. a. He believed that managers¶ major roles were to communicate and stimulate subordinates to high levels of effort. b. He also introduced the idea that managers have to examine the environment and then adjust the organization to maintain a state of equilibrium.

The Hawthorne Studies 1924-1932
1. In the first set of studies, no correlation was found between changes in lighting conditions and individual work performance. In fact, performance nearly always went up with any change²brighter or darker²in illumination. 2. In the second set of studies, the concept of the Hawthorne effect emerged. The Hawthorne effect refers to the possibility that individuals singled out for a study may improve their performance simply because of the added attention they receive from the researchers, rather than because of any specific factors being tested in the study.

Human Relations Movement: 
This movement was an attempt to equip managers with the social skills they need. Abraham Maslow (1908-1970) Needs fit into a somewhat predictable hierarchy ranging from basic, lower-level needs to higher-level needs: 1) Physiological (lowest) 2) Safety 3) Belongingness or social 4) Esteem 5) Self-actualization (highest and NOT achieved by everyone)

Human Relations Movement:
Douglas McGregor (1906-1964)

developed the Theory X and Theory Y dichotomy about the assumptions managers make about workers and how these assumptions affect behavior. a. Theory X managers tend to assume that workers are lazy, need to be coerced, have little ambition, and are focused on security needs. These managers then treat their subordinates as if these assumptions were true. b. Theory Y managers tend to assume that workers do not inherently dislike work, are capable of self-control, have the capacity to be creative and innovative, and generally have higher-level needs that are often not met on the job. These managers then treat their subordinates as if these assumptions were true. c. Workers, like all of us, tend to work up or down to expectations.

Terms to Know
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ manager first-line managers firstmiddle managers top managers management efficiency effectiveness planning organizing leading controlling ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ management roles interpersonal roles informational roles decisional roles technical skills human skills conceptual skills organization universality of management

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