MANAGEMENT MANAGERIAL LEVELS

- Process of achieving organizational goals STRATEGIC MANAGERS

- Utilizes resources efficiently
- CEO, President, VP, Executive
- Gets things done through people Director, Senior VP, Executive
VP
- Achieves a stated goal by means of group
effort TACTICAL MANAGERS

ENGINEERING MANAGEMENT - responsible for managers at lower levels

- Manager, Director of..., Chief,
Department Head, Division Head
- Designing and maintaining an environment
where individuals work in groups to efficiently OPERATIONAL MANAGERS
accomplish organizational goals
-responsible for work of operational (nonmanagerial)
- MANAGEMENT applies to any kind of employees; SUPERVISOR

organization
- MANAGING is concerned with productivity

FUNCTIONS OF MANAGEMENT
MANAGERIAL SKILLS
1. Planning & Decision-making
Conceptual Skill
- Selecting objectives to accomplish
- Choosing the BEST among the alternatives - Ability to see the organization as a whole and
*** GOAL – long range the relationships among its parts
*** OBJECTIVE – short range Human Skill
2. Organizing - Ability to work with and through other people
- Grouping and assigning activities
- Providing authority to carry out objectives Technical Skill
3. Staffing
- Filling and keeping positions filled in the - Understanding and proficiency in performing
organizational structure specific tasks
- Select  train  promote  retire
4. Directing or Leading
- Influencing people to contribute to goals DEFINITION OF TERMS

*** extrinsic motivation – praises, non-monetary PRODUCTIVITY – index that measures output relative to
*** intrinsic motivation – monetary input

5. Controlling EFFECTIVENESS – capability of producing an effect and

- Measuring and correcting performance
- Facilitates accomplishment of plans
- REGULATING organizational activities so that
actual performance conforms to expected
standards
“doing the right things”
EFFICIENCY – how well a certain aspect is performing
and “doing things right”
ART – skill in conducting any human activity

SCIENCE – skill/technique that reflects a precise

TIME SPENT IN CARRYING OUR MANAGERIAL FUNCTIONS application of facts or principles

Top Level Middle Level First Line

Managers Managers Supervisors

Planning, Organizing, Leading, Controlling

 MAX WEBER 7. Remuneration ($$$)
- Reward efforts that support the
- Maximilian Karl Emil Weber organizations direction
- German 8. Centralization
- Determine the relative importance of
PARTICULARISM
superior and subordinate roles
- Employees are hired/fired for non- 9. Scalar Chain
organizational reasons - Keep communications within the chain of
command
BUREAUCRACY 10. Order
- Order jobs and material so they support the
- A system of controlling an organization that is
organization’s direction
operated by a large number of officials
11. Equity
employed to follow rules carefully
- Managers should be kind and fair to their
BUREAUCRATIC THEORY subordinates
12. Stability of Tenure
- Best way to run an organization is to structure it - Planning to ensure that replacements are
into a rigid hierarchy of people governed by available to fill vacancies
strict rules and procedures 13. Initiative
- Allow employees to originate and carry out
2 PARTS OF BUREAUCRATIC THEORY
plans
1. A clear organizational hierarchy 14. Esprit de Corps
2. Clear rules for decision making - Promoting team spirit to build harmony and
unity within the org
6 BUREAUCRACY CHARACTERISTICS
CHESTER BARNARD
1. HIERARCHICAL MANAGEMENT STRUCTURE
- Level below is controlled by the upper level ORGANIZATION
2. DIVISION OF LABOR
- Tasks are divided between the employees of - Systems of cooperation of human activity
- Need to be effective and efficient
the organization
3. FORMAL SELECTION PROCESS Functions of Executive
- All employees are treated equally
- Hired/promoted based on qualifications, - Establishing and maintaining a system of
expertise.. communication
4. CAREER ORIENTATION - Securing essential service from other members
- Follow the rules and regulations to not be fired - Formulating organizational purposes and
5. FORMAL RULES AND REGULATIONS objectives
- Rules govern how all employees behave - Manage people and make sure they do their
6. IMPERSONALITY jobs
- Rules are well defined and clear
- Rules apply to everyone ZONE OF INDIFFERENCE
- Rules are to prevent favoritism and nepotism - Employees only tend to accept authority within
HENRI FAYOL the range of acceptance
- Areas/limits only tend to accept authority of
- The principles of scientific management (1911) superiors over them
- FATHER of Administrative Management Theory
LIMITS WITHIN INDIVIDUALS ACCEPT AUTHORITY
- FAYOLISM – general theory of administration
- MANAGEMENT – dynamic force which makes a. Actions which are unacceptable
the business work smoothly and profitably b. Actions that are both acceptable or
unacceptable
14 PRINCIPLES OF MANAGEMENT
c. Actions which are acceptable
1. Division of Work
CONDITIONS TO ACCEPT AUTHORITY
2. Authority
3. Discipline 1. He fully understands the communication
- Make expectations clear and sanction
2. At the time of decision, he believes it is consistent
violations
with the objectives of the organization
4. Unity of Command
- 1 employee = 1 supervisor 3. At the time of the decision, he also believes that it is
5. Unity of Direction consistent with his personal objectives
- Employees’ efforts focused on achieving 4. He is physically and mentally adjusted to the
organizational objectives communication (he agrees to accept the
6. Subordination of Individual Interest to the communication)
General Interest
 SPECIFIC INCENTIVES

 Money and other material inducements

 Personal non-material opportunities for
distinction
 Desirable physical conditions of work
 Ideal benefactions, such as pride of
workmanship…

MARY PARKER FOLLETT

- Mother of Modern Management

- Powering WITH > Powering OVER

PRINCIPLES OF COORDINATION

1. DIRECT CONTACT
- To avoid conflict and misunderstandings
- Holding regular meetings
- Discussing assignments
2. EARLY STAGES
- Coordination should be learned and mastered
straight away
- No employees should feel less important
- Each has a significant role
3. RECIPROCAL RELATIONSHIP
- No one should be trying less or more than
another
- Team effort
4. CONTINUOUS PROCESS
- Coordination must be maintained
- Don’t just learn it and forget about it, channel it
in everything you do

FOLLETT’S MANAGEMENT THEORY

MAIN PRINCIPLES

 Integration – pull > push

 Powering with – powering with > powering over
6. Group power – group power > personal power
BEHAVIORAL MANAGEMENT
Self-actualization
x
- “behavioral school”
- How management should behave
Esteem
x
- Focuses on the human side of the
organization Belongingness or Social
- Human relations movement x
(Love and Acceptance)
- Need for workers to find intrinsic values in
Safety
their job (Safe Environment)
- Positive impact of social relations on
productivity is emphasized Physiological

ELTON MAYO
- Employees are motivated by hierarchy of
- Helped to lay the foundation for the needs that they need to satisfy
human relations movement - If ESTEEM needs are not met, workers
- Known for his industrial research develop a feeling of inferiority
“HAWTHORNE STUDIES” - SELF ACTUALIZATION – doing what we
**Hawthorne Studies believe we are meant to do
- LIMITATIONS: there is little evidence that
To study the impact of human
- people satisfy one need at a time, this can
factors on productivity create conflict between stages of needs
- Employees are motivated by
relation factors not by monetary DOUGLAS MCGREGOR
rewards
- Productivity increases when - Management professor at MIT Sloan
workers believe they are being school of management
observed closely - Theory X & Y
- In this experiment, productivity was THEORY X THEORY Y
measured on different levels of “authoritarian” “participative”
lighting Views of scientific Human relations
GRP NORMS COHESIVE- RESULT mgmt. approach
NESS Management must Managers should create
1 ↓ ↓ Ineffective closely supervise an environment that will
2 ↓ ↑ Negative impact through reward and stimulate the worker
punishment motivation (productivity)
Some degree of +
impact thru individual Workers are lazy, Employers are
3 ↑ ↓ untrustworthy, & trustworthy and capable
member
accomplishments incapable of assuming of assuming
responsibility responsibility + have
4 ↑ ↑ Great + impact
high levels of motivation
Negative Positive
ABRAHAM MASLOW Carrot and Stick Appraisal is frequent
Approach
- Proposed motivation theory OTHER FACTORS THAT MOTIVATE PEOPLE:
- Focused on the needs of employees to
keep them motivated → Organizational structure (tiered or flat)
1. Needs of human beings cannot be → Type of work that your people do
satisfied completely (repetitive or challenging)
2. Humans always strive to satisfy their → Their skill level (amateur or experienced)
needs, which are still unsatisfied
3. The priority of needs can be sorted into
WILLIAM OUCHI
a hierarchy that ranges from basic,
lower-level needs to higher level needs - American economist and a management
professor
- Inventor of Theory Z
- “Samurai model”
Theory Z
Assumes that employees what to enter into
partnerships with their employer and colleagues
 Continuation of Theory Y (but more
participative)
Employees have a strong desire for connection
Employees expect reciprocity & support from
their organization
Employees trust that they can carry out their
work properly with the right support from
management
Mutual understanding between employer &
employees
- Employees want to build cooperative
relationship
- People value their family life, culture,
tradition…
- Combination of Theory Y + best Japanese
practices
Characteristics of Theory Z

1. Collective decision-making
2. Long-term employment
3. Job rotation
4. Slow promotion
5. Focus on Training
6. Care for personal circumstances
7. Formalized measures
7. Individual responsibility