Lecture 1

Introduction to management
 Learning Outcomes
 Tell who managers are and where they
work.
 Define management.
 Describe what managers do.
 Explain why it’s important to study
management.
 Describe the factors that are reshaping and
redefining management.

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1
Managers and
Management

1-2
 1-1
Tell who managers
are and where they
work.

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 Who Are Managers?
Where Do They Work?
Organization
A deliberate arrangement of people
brought together to accomplish a specific
purpose

Common Characteristics of Organizations

• Goals
• People
• Structure
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 Three Characteristics
of Organizations

1. Goal
• Objectives that a business hopes and plans to achieve
2. People
• Make decision and engage in work activities to make the goal (s) a reality
3. Structure
• Rules and regulations might guide what people can or cannot do.
• Some members supervise other members, work teams might be formed, or
job descriptions might be created so organizational members know what
they are supposed to do

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 How Are Managers Different
from Nonmanagerial Employees?
Nonmanagerial Employees
• Work directly on tasks
• Not responsible for overseeing others’ work
Managers
• Direct and oversee the activities of others
• May have work duties not related to
overseeing others

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Management Levels

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What Titles Do Managers Have?
Top Managers
– manager responsible for a firm’s overall performance and
effectiveness.
– Make decisions about the direction of an organization
– president, vice-president, treasurer, chief executive officer
(CEO), and chief financial officer (CFO)
– set general policies, formulate strategies, approve all significant
decisions, and represent the company in dealings with other
firms and with government bodies

Middle Managers
– manager responsible for implementing the strategies and
working toward the goals set by top managers
– plant manager, operations manager, and division manager
– Manage other managers
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What Titles Do Managers Have?
First-line Managers
– manager responsible for supervising the work of
employees
– supervisor, office manager, project manager,
team leader, group leader

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 11-2
Define
management.

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 What Is Management?
The process of getting things done effectively and efficiently, with and through
people.

Process refers to the primary activities or functions that managers perform

Efficiency and effectiveness have to do with the work being done and how it’s
being done

Efficiency means doing a task correctly (“doing things right”) and getting the
most output from the least amount of inputs. It also means getting things
done
Managers deal with scarce inputs – including resources (people, money and
equipment). They want to minimize resource usage and costs

Managers also concerned with effectiveness (completing activities)

Effectiveness means “doing the right things” by doing those work tasks that
help the organization reach its goals. It concerns with the ends, or
attainment of organizational goals
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Efficiency and Effectiveness

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 11-3
Describe what
managers do.

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 What do managers do?
• Managers perform certain activities or functions as they direct and oversee
others’ work.

• Henri Fayol, a French businessman, first proposed in the early part of the
twentieth century that all managers perform five functions: planning,
organizing, commanding, coordinating, and controlling.

• Today, these functions have been condensed to four: planning, organizing,

leading, and controlling
 What do managers do?

FOUR MANAGEMENT FUNCTIONS

To ensure goals are met and work is done as it should be, managers
monitor and evaluate performance. Actual performance is compared
with the set goals. If those goals aren’t achieved, it’s the manager’s job
to get work back on track
 What are management
roles?
• Fayol’s original description of management functions was not derived from
careful surveys of managers in organization
• Rather, it simply represented his observations and experiences in the French
mining industry
• In the late 1960s, Henry Mintzberg, a well-known management researcher,
studied actual managers at work. In his first comprehensive study.
• Mintzberg concluded that what managers do can best be described by looking
at the managerial roles they engage in at work
• The term managerial roles refers to specific actions or behaviors expected of
and exhibited by a manager
• Mintzberg identified 10 roles grouped around interpersonal relationships, the
transfer of information, and decision making
Management Roles Approach
Mintzberg (late 1960s) – empirical study of 5 CEOs.

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 What are management
roles?
Interpersonal Roles
• A category of managerial roles including figurehead, leader, and liaison
• Figurehead – taking visitors to dinner
• Leader – hiring, training, and motivating employees
• Liaison- as coordinator or link among people, groups or organizations
• e.g. Companies in computer industry use liaison to keep other companies
informed about their plans
• e.g. Microsoft create software to interface with HP printers
 What are management
roles?
Informational Roles
• A category of managerial roles including monitor, disseminator, and
spokesperson
• Monitor – actively seeks information that may be of value.
• Disseminator – transmit relevant information back to others in the
workplace
• Spokesperson – relays information to people outside the unit or
outside the organization
• Roles of figurehead and spokesperson are similar
• Figurehead – manager’s presence as a symbol of the organization
• Spokesperson – manager carries information and communicates it to
others in a formal sense
 What are management
roles?
Decisional Roles
• A category of managerial roles including entrepreneur, disturbance
handler, resource allocator, and negotiator
• Entrepreneur – the voluntary initiator of change. e.g. a manager at
3M company developed the idea for the Post-it note pad but had
to sell it to other sceptical managers in the company
• Disturbance handler – handling problems such as strikes,
copyright infringement, or problems in public relations or corporate
image
• Resource allocator – Manager decides how resources are
distributed and with whom he or she will work most closely
• Negotiator – enter into negotiations with other groups or
organizations as a representative of the company. May also be
internal to the organization. e.g. a long-term relationship with a
supplier
Which Approach Takes the Prize?

Popular
Functions ☑
Clear and Simple

Roles ☐

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 Skills and Competencies
What Skills Do Managers Need?

Source: Simon/Fotolia
1-23
 What skills and competencies
do managers need?
Management researcher, Robert L. Katz proposed that managers need three
critical skills in managing: technical, interpersonal, and conceptual

Technical skills are the job-specific knowledge and techniques needed to

proficiently perform work tasks. These skills tend to be more important for first-
line managers because they typically manage employees who use tools and
techniques to produce the organization’s products or service the organization’s
customers
Interpersonal skills involve the ability to work well with other people both
individually and in a group. Because all managers deal with people, these skills
are equally important to all levels of management.
Conceptual skills are the skills managers use to think and to conceptualize about
abstract and complex situations. Using these skills, managers see the
organization as a whole, understand the relationships among various subunits,
and visualize how the organization fits into its broader environment. These
skills are most important to top managers.
Skills Needed at Different
Managerial Levels
 11-4
Explain why it’s
important to study
management.

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Why study management?
Have a vested interest in improving the way
organizations are managed
• Because we interact with them everyday of our lives and an
understanding of management offers insights into many aspects

You will either manage or be managed

• An understanding of management forms the foundation on which to

build your management skills and abilities
 11-5
Describe the factors
that are reshaping
and redefining
management.

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 What Factors Are Reshaping
and Redefining Management?
Welcome to the new world of
management! Today managers must
deal with
• Changing workplaces
• Ethical and trust issues
• Global economic uncertainties
• Changing technologies

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1-29
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 Why Are Customers Important
to the Manager’s Job?
• Without them, most organizations would cease to exist
• Managers are recognizing that delivering consistent high-
quality customer service is essential for survival and success
in today’s competitive environment
• Employees are an important part of that equation
• They must create a customer-responsive organization where
employees are friendly and courteous, accessible,
knowledgeable, prompt in responding to customer needs and
willing to do what’s necessary to please the customer
Why Is Innovation Important to the
Manager’s Job?
“Nothing is more risky
than not
innovating”
Innovation isn’t just
important for high
technology
companies but
essential in all types
of organizations
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Importance of Social Media
 Connecting with customers
 Managing human resources

Importance of Sustainability
Integrating economic, environmental, and
social opportunities into business
strategies.

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 Managers Matter!

Employee productivity, loyalty, and

engagement hinge on employee/manager
relationships.

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 Lecture 1
A Brief History of
Management’s Roots

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Publishing as Prentice Hall.
Early Management
• Management has
been practiced a long
time.
• Organized endeavors
directed by people
responsible for
planning, organizing,
leading and controlling
have existed for
thousands of years

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as
Prentice Hall.
 Classical Approaches

Scientific Management
– Frederick W. Taylor
described scientific
management as a method
of scientifically finding the
“one best way to do a job”

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 Other Classic Approaches

General Administrative Theory

– focused on what constituted good
management
– Max Weber (pictured) described the
bureaucracy as an ideal rational form
of organization
– Henri Fayol identified five
management functions and 14
management principles

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Education, Inc. Publishing
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as
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 Henri Fayol’s Universal
Management Process
• Fayol was first an engineer and later a successful
administrator in a large French mining and metallurgical
concern.
• Fayol published Administration Industrielle et Générale
in 1916.
• He divided a manager’s job into five functions:
• Planning
• Organizing
• Command
• Coordination
• Control (POC3)
• He developed 14 universal principles of management.
 Fayol’s Fourteen
Principles of Management
 Division of work  Centralization
 Authority  Scalar chain
 Discipline  Order
 Unity of command  Equity
 Unity of direction  Stability of tenure
 Subordination of personnel
individual interests to  Initiative
the general interest  Esprit de corps
 Remuneration
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 The Behavioral Approach
• Advocates of the behavioural approach to management
point out that people deserve to be the central focus of
organized activity.
• They believe that successful management depends
largely on a manager's ability to understand and work
with people who have a variety of backgrounds, needs,
perceptions, and aspirations.
• The progress of this humanistic approach from the
human relations movement to modern organizational
behaviour has greatly influenced management theory
and practice.
 The Behavioral Approach
(cont’d)
The Human Relations Movement
• An effort to make managers more
sensitive to their employees’ needs
• Arose out of the influences of
The threat of unionization
The Hawthorne studies
The philosophy of industrial humanism
 The Behavioral Approach (cont’d)
The Threat of Unionization
• The Wagner Act of 1935 legalized union-
management collective bargaining, promoting
the growth of unions and union avoidance by
firms.
The Hawthorne Studies (1924)
• The study’s results that productivity was
strongly affected by workers’ attitudes turned
management toward the humanistic and
realistic viewpoint of the “social man” model.
 The Hawthorne Studies
Studies conducted at the Hawthorne Works of the
Western Electric Company:
 Provided new insights into individual and
group behavior at work
 Concluded that group
pressures can significantly
impact individual productivity

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 Behavioral Approach
Early management writers included:
• Robert Owen, who was concerned about
deplorable working conditions.
• Hugo Munsterberg, a pioneer in the field
of industrial psychology.
• Mary Parker Follett, who recognized that
organizations could be viewed from both
individual and group behavior
perspectives.
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 The Philosophy of Industrial Humanism

Elton Mayo
• Emotional factors were more important determinants of
productive efficiency than were physical and logical factors.
Mary Parker Follett
• Managers should be aware of how complex each employee is
and how to motivate employees to cooperate rather than to
demand performance from them.
Douglas McGregor
• Developed Theory X and Theory Y
Theory X: Management’s traditionally negative view of
employees as unmotivated and unwilling workers
Theory Y: The positive view of employees as energetic,
creative, and willing workers
 Human Relations School
• Studies by Mayo and others at Hawthorne contributed the idea
that worker output was affected by numerous variables such
as
i) how they were treated,
ii) how they felt about their work, coworker and boss and
iii) what happened to them outside work.
• In summary, workers were more than a pair of “hands”;
workers have feelings and attitudes that affect productivity.
• Norms and rules of the work groups profoundly affect
productivity.
• Bottom line, an effective manager was expected to pay
attention to people’s social needs and elicit their ideas
about work.
Behavioral Approaches 1930s –
1950s

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Behavioral Approaches 1960s –
Today

Organizational
Behavior (OB)

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 Organizational Behavior
Organizational Behavior
• A modern research-oriented approach seeking to
discover the causes of work behavior and to develop
better management techniques
Lessons from the Behavioral Approach
• People are the key to productivity.
• Success depends on motivated and skilled individuals
committed to the organization.
• Managerial sensitivity to employees is necessary to
foster the cooperation needed for high productivity.
 The Quantitative Approach
• Used quantitative techniques to improve
decision making
• W. Edwards Deming and Joseph M. Juran:

total quality management

(TQM)

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 Quantitative Approaches
Quantitative Approach
– Used quantitative techniques to improve
decision making
– Evolved from mathematical and
statistical solutions developed for
military problems during World War II
– W. Edwards Deming and Joseph M.
Duran ‘s ideas became the basis for
total quality management (TQM)
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Contemporary Approaches:
Systems Approach

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 The Systems Approach
What Is a System?
• A collection of parts operating interdependently to
achieve a common purpose
Systems Approach
• Views an organisation as a group of interrelated parts
with a single purpose: to remain in balance
• Postulates that the performance of the whole is
greater than the sum of the performance of its parts
Seeks to identify all parts of an organized activity and how they
interact
 The Systems Approach
Systems Approach
• Managers therefore can deal with separately with individual
parts: they should views the organisation as whole and should
anticipate the effects of their decisions on the other parts of the
organisation
• Management should maintain a balance between the various
parts of the organisation as well as the organisation and the
environment
• Organisation as a system comprise four elements
Input (resources)
Transformational process
Outputs (products and services)
Feedback (reactions from the environment)
 The Systems Approach
Chester I. Barnard’s Early Systems Perspective
• Wrote Functions of the Executive
• Characterized all organizations as cooperative
systems
• Defined principal elements in an organization as
Willingness to serve
Common purpose
Communication
• Strong advocate of business ethics
 General Systems Theory
General Systems Theory
• An area of study based on the
assumptions that everything is part of a
larger, interdependent arrangement
Levels of systems
• Each system is a subsystem of the
system above it.
• Identification of systems at various
levels helps translate abstract systems
Figure 1: Levels of Living Systems
 General Systems Theory (cont’d)

Closed Versus Open Systems

• Closed system: A self-sufficient entity
• Open system: Something that depends
on its surrounding environment for
survival
Systems are classified as open
(closed) by how much (how little) they
interact with their environments.
 The Systems Approach
New Directions in Systems Thinking
• Organizational learning and knowledge management
Organizations are living and thinking open systems that learn from
experience and engage in complex mental processes.
• Chaos theory
Every complex system has a life of its own, with its own rule book.
• Complex adaptive systems
Complex systems are self-organizing.
 Open Systems
• The theory maintains that organizations and all subdivisions take
in resources and transform them into a service or product that is
purchased or utilized by a larger system.
• A knowledge of subsystem interdependence and interfacing is
essential to org success
• The systems theory implies that organizational effectiveness
is governed by three factors:
i) individuals in the organization,
ii) the organization itself and
iii) the environment in which an organization exists.
• Bottom line, the effective management of the interfaces
between the three factors is central to organizational
success.
Contemporary Approaches:
Contingency Approach

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The Contingency Approach
Contingency Approach
• A research effort to determine which
managerial practices and techniques
are appropriate in specific situations
Different situations require different managerial
responses.
It deals with intercultural feelings in which
custom and habits cannot be taken for granted.
 Contingency Theory
• Application of management principles depend/varies
according to the particular situation.
• Individuals, groups, industries, managing styles can all vary
enormously.
• No single best way to manage, method effective in one situation
not work in another
• Management has to decide – scientific, bureaucratic,
administrative, Behavioural e.t.c. (e.g. Hospital specialist vs
hierachy)
• If production manager needs to improve productivity, he/she
decides on a new work method (a scientific), or to restructure
(bureaucratic), or new motivation approach (behavioural)
 The Contingency Approach (cont’d)
Lessons from the Contingency Approach
• Approach emphasizes situational appropriateness rather than
rigid adherence to universal principles
• Approach creates the impression that an organization is captive
to its environment
• The contingency approach emphasises situational
appropriateness.
• Contingency thinking is a practical extension of the systems
approach
• The contingency approach is still undeveloped. Its final impact
remains to be seen.
• Critics say contingency theory creates the impression that the
organization is a captive of its environment, making attempts to
manage it useless.
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