A Glance into Management

B.Tech Semester VI
Principles of Management
 What Is an Organization?
• An Organization Defined
– A deliberate arrangement of people who act
together to accomplish some specific purpose
• Common Characteristics of Organizations
– Distinct purpose
– Composed of people
– Deliberate structure

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Characteristics of Organizations

Distinct Deliberate
Purpose Structure

People

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 The Changing Organization
Traditional New Organization
• Stable
• Dynamic
• Inflexible
• Flexible
• Job-focused
• Skills-focused
• Work is defined by job positions
• Work is defined in terms of tasks to be done
• Individual-oriented
• Team-oriented
• Permanent jobs
• Temporary jobs
• Command-oriented
• Involvement-oriented
• Managers always make decisions
• Employees participate in decision making
• Rule-oriented
• Customer-oriented
• Relatively homogeneous workforce
• Diverse workforce
• Workdays defined as 9 to 5
• Workdays have no time boundaries
• Hierarchical relationships
• Lateral and networked relationships
• Work at organizational facility during specific
hours • Work anywhere, anytime

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 The Types of Organizations
• Managers and employees work in a variety of sizes of organizations
– Large organizations represent only 2% of the organizations in
Canada
– Small business represent 98% of all Canadian companies
• Managers and employees work in a variety of organizations, and
the type of organization has an impact on what managers can do
– Publicly held organizations
– Privately held organizations
– Public sector organizations
– Crown Corporations
– Subsidiaries of foreign organizations (e.g., Sears, Safeway,
General Motors, and Ford Motor Company)

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 Defining the Manager’s Terrain
•Managers:
–Coordinate work activities to achieve organizational
goals.
–Their ability to act is affected by both the internal
culture of the organization and the constraints of the
external environment – including the global
environment.
• Also deal with complicated ethical and social
responsibility issues as they plan, organize, lead and
control.

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 Defining the Manager’s Terrain
• When considering the manager’s terrain, managers
might ask these questions:
– What is my role as a manager?
– What constraints do I face as a manager both within the
organization and from the external environment?
– How does the global environment affect my ability to
manage?
– What can I do to be an ethical and socially responsible
manager?

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 Who Are Managers?

• Manager
–Someone who works with and through
other people by coordinating their
work activities in order to accomplish
organizational goals

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 Types of Managers
• First-line Managers
– Managers at the lowest level manage the work of non-
managerial employees directly or indirectly involved with
the production or creation of the organization’s products.
• Middle Managers
– Managers between the first-line level and the top level of
the organization who manage the work of first-line
managers
• Top Managers
– Managers at or near the top level are responsible for
making organization-wide decisions and establishing plans
and goals affecting the entire organization

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 Managerial Levels

Top
Managers
Middle Managers
First-Line Managers
Nonmanagerial Employees
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 Efficiency and Effectiveness
• Managerial Concerns
– Efficiency
• “Doing things right”
– Getting the most output from the least amount of
inputs
– Effectiveness
• “Doing the right things”
– Completing activities so that organizational goals
are achieved

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 Efficiency and Effectiveness in
Management
Efficiency (Means) Effectiveness (Ends)

Resource Goal
Usage Attainment

Low Waste High Attainment

Management Strives for:

Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)

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 Management Functions
• According to the functions approach,
managers perform certain activities or duties
as they efficiently and effectively coordinate
the work of others.
• Henry Fayol first proposed that all managers
perform five functions: planning, organizing,
commanding, coordinating and controlling.

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 Management Functions
Planning Organizing Leading Controlling
Lead to
Defining Determining Directing and Monitoring
goals, what needs motivating all activities to
establishing to be done, involved ensure that Achieving the
strategy, and how it will be parties and they are organization’s
developing done and resolving accomplished stated
sub-plans to who is to do conflicts. as planned purpose
co-ordinate it.
activities.

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 Management Roles
• Henry Mintzberg’s Management Roles Approach
– Interpersonal roles
• Figurehead, leader, liaison
– Informational roles
• Monitor, disseminator, spokesperson
– Decisional roles
• Entrepreneur, disturbance handler, resource allocator,
negotiator

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 Management Roles
• Robert Katz Management Skills Approach
– Technical skills
• Knowledge and proficiency in a specific field
– Human skills
• The ability to work well with other people
– Conceptual skills
• The ability to think and conceptualize about abstract
and complex situations concerning the organization

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 Skills Needed at Different Management
Levels

Top Conceptual
Managers
Skills
Middle Human
Managers Skills

Lower-level Technical
Skills
Managers

Importance

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 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
– Self-employment
• Running your own business rather than working for
someone else

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 Things to ponder….
• What makes someone a manager?
– Managers work with and through other people by
coordinating employee work activities in order to
accomplish organizational goals.
• What is management and what do managers
do?
– Management is coordinating work activities so
that they are done efficiently and effectively.

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• What characteristics define an organization?
– Managers work in a variety of organizations both large and
small within various industries
• What are the challenges to managing?
– The greatest managerial challenge is the crisis in ethical
responsibility damaging today’s organizations
• Does studying management make a difference?
– Understanding management helps us to improve
organizations

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 Challenges to Managing
• Ethics
– Rules and principles that define right and wrong
behaviour
– Increased emphasis on ethics education seen in
university and college curriculums
– Increased creation and use of codes of ethics by
businesses currently

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 Challenges to Managing
• Workforce Diversity
– The mix of people in organizations in terms of
gender, race, ethnicity, disability, sexual
orientation, age, demographic characteristics such
as education and socio-economic status
• Globalization
– Management in international organizations
– Political and cultural challenges of operating in a
global market

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 Challenges to Managing
• Managing in an E-Business World
– The work performed 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

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 Challenges to Managing
• Customers
– Customers have more opportunities than ever
before
– Delivering consistent high-quality service is
essential
– Managers need to create customer-responsive
organizations

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 Challenges to Managing
• Innovation
– “Nothing is more risky than not innovating”
– Doing things differently, exploring new territory,
and taking risks
– Managers need to encourage all employees to be
innovative

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 Challenges to Managing
• 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

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Learning Organization vs. Traditional
Organization

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Elton Mayo
1880 – 1949
 Hawthorne Studies
• Hawthorne Studies (1927-1932)
– Hawthorne Plant of Western Electric Company
• Most famous part of the research
– Six female employees – separate room
– Expectation: production would vary in predictable
ways
• Example: More hours, fewer breaks would increase
fatigue and lower production
 Surprise at Hawthorne
• Amazed researchers
– No matter what they did, production went up!
• Mayo’s conclusion
– Changes in production were not attributed to changes in
conditions
– Instead attributed to:
– Employees treated as special people
– Involved in decisions
– Improved morale
 Hawthorne Effect
• The mere act of showing people you are
concerned about them spurs them to better
performance
• Widely used even today
 Results from Hawthorne Studies
• Discovery that workplaces are social environments
• Within workplaces, people are motivated by much
more than economic self interest
• All aspects of industrial environment carry social
value
• Impact on Management Theory
– Represent the beginning of the human relations
movement in the study of management