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Where We Are
Part 1 Introduction Part 2 Planning Part 3 Organizing Part 4 Leading Part 5 Controlling
Chapter 1 Managers and management
Chapter 2 Managing in Today’s World
• Three starting concepts • Nature of management
– Functional view on Management – Manager’s role model – Universality of management
• Skills and competencies of managers • Management as a field of study
– Relevant disciplines to management – Evolution of modern management practices – Contemporary approaches on Management
Starting concepts: Organization Define Organization An organization is a systematic arrangement of people to accomplish some specific purpose. .
Starting concepts: Organization Common Characteristics of Organizations Goals Structure People B A .
.Starting concepts: Managers Define Managers Managers are individuals in an organization who direct the activities of others. Operatives are the people who work directly.
Starting concepts: Managers Supervise Others Top Managers Middle Managers First-Line Managers Operative Employees Work on Jobs The Levels of an Organization .
Management skills: Mentoring
Guidelines for Mentoring Others
• Communicate honestly and openly with your protégé
• Encourage honest and open communication from your protégé • Treat the relationship with the protégé as a learning opportunity
• Take time to get to know your your protégé
Starting concepts: management
The term management refers to the process of getting things done effectively and efficiently, through and with other people.
Starting concepts: Management
Efficiency and Effectiveness
R E S O U R C E U S A G E
low waste high attainment
G O A L A T T A I N M E M T
Nature of management: Functional view Planning The Process of Management Organizing Leading Controlling .
Nature of management: Functional view Planning Defining an organization’s goals Establishing strategy for achieving the goals Developing a comprehensive hierarchies of plans to integrate and coordinate activities .
Nature of management: Functional view Organizing Determining What task to be done Determining Who is to do them Determining How the tasks are be grouped Determining Who reports to whom Determining Where decisions are to be made .
Nature of management: Functional view Leading Motivating employees Directing activities of others Selecting effective communication channels Resolving conflict among members .
Nature of management: Functional view Controlling Monitoring the organization’s performance Comparing actual performance with previous set goals Correcting any significant deviations .
Nature of management: Role model The Roles of Management Decisional Informational The Mintzberg Studies Interpersonal .
Nature of management: Role model Interpersonal Roles Figurehead Leader Formal Authority and Status Liaison .
Nature of management: Role model Informational Roles Monitor Disseminator Interpersonal Roles Spokesman .
Nature of management: Role model Decisional Roles Entrepreneur Disturbance Handler Resource Allocator Informational Roles Negotiator .
Nature of management: Role model Is The Manager’s Job Universal? Level in the Organization Profit Versus Non-Profit Size of the Organization .
Nature of management: Functional view Time per Function by Organizational Level First-Level Managers Middle Managers Top Managers 24% 15% 10% 51% 18% 13% 33% 28% 36% 14% 36% 22% Planning Organizing Controlling Leading .
Nature of management: Universality The Roles That Managers Play Small Firms Spokesperson Importance High Large Firms Resource Allocator Entrepreneur Figurehead Leader Moderate Liaison Monitor Disturbance Handler Negotiator Disseminator Low Entrepreneur .
Nature of management: Universality Contemporary Management Issues Decision Making National Borders Handling Change .
Follows the chain or command Deals with anyone necessary to get the job done Makes most decisions alone Invites others to join in decision making Demands long hours of Demands results working . NEW MANAGER Thinks of self as team leader or internal consultant.Managerial Roles currently emphasized Managers today emphasize horizontal relationships and de-emphasize vertical (top-down) relationships. OLD MANAGER Thinks of self as manager or boss.
Skills and competencies: General skills Conceptual Interpersonal General Management Skills Technical Political .
human skill concerns people. oHuman skill involves the ability to interact effectively with people. Managers use the processes. . and solve problems creatively. and conceptual skill has to do with ideas. develop ideas. oConceptual skill involves the formulation of ideas. Managers understand abstract relationships. oThus. techniques and tools of a specific area.oTechnical Skills involves process or technique knowledge and proficiency. technical skill deals with things. Managers interact and cooperate with employees.
Skills and competencies: General skills Managerial Skills at different levels of Organization Top managers Middle managers First-line managers Non managers Concept Skills Human Skills Technical Skills .
Skills and competencies: Specific Skills Specific Management Skills • Controlling the environment and resources • Organizing and coordinating • Handling information • Growing and developing • Handling conflicts and motivating employees • Strategic problem solving .
Skills and competencies: MCI standards Management Competencies Management Charter Initiative (MCI) • Initiate and implement change and improvement • Monitor. maintain. and improve delivery • Monitor and control the use of resources • Allocate resources effectively • Recruit and select personnel .
and organize information • Exchange business information . individuals. and evaluate work • Create. allocate. and enhance relationships • Seek. and self • Plan.Skills and competencies: MCI Standards Management Competencies Management Charter Initiative (MCI) • Develop teams. evaluate. maintain.
Study management: Its importance Management As a Field of Study The Importance of Management The Study of Management .
Study management: Relevant disciplines Management and Other Disciplines • Anthropology • Economics • Philosophy • Psychology • Sociology • Political Science .
Study management: Historical development (see History Model p28-40) Historical Roots of Management Practice • Frederic Taylor’s Scientific management • Max Weber’s Bureaucracy Theory • Henri Fayol’s Principles of Management .
games theory.CPM.Break even Analysis) .Study management: Historical development (see History Model p28-40) Historical Roots of Management Practice • Hawthorne Studies and Human Relation Movement • The Quantitative Approaches and Management Science(pert .
• History of Management -Video .
The Egyptian Pyramids and the Great wall of China.g.EVOLUTION OF MANAGEMENT Management in antiquity Organized endeavors directed by people responsible for planning. Thus management has been practiced for a long time! . Another example is of Roman Catholic Church. E. Its highest authority is Pope. leading. They have followed a simple hierarchy that has remained unchanged for almost two thousand years. organizing. and controlling activities have existed for thousands of years.
Production—each worker specialized in one step.PRE-SCIENTIFIC MANAGEMENT Adam Smith (18th century economist) Observed that firms manufactured pins in one of two different ways: Craft-style—each worker did all steps. Thus introduced the concept of division of labor : The breakdown of jobs into narrow. . repetitive tasks.
o Managers were needed to forecast demand. . o The advent of machine power combined with division of labor was leading to mass production.o The most important pre-twentieth-century influence on management was the industrial revolution. maintenance of machinery. Machine power was rapidly substituted for human power. coordinate various activities. and so forth.
1.Classical Theory a)The Scientific Management School Scientific Management Theory: Body of principles that addresses the efficiency of workers Father of Scientific ManagementF.Taylor (1856-1915) .W.
The bringing together of the science of work and the scientifically selected & trained workers.specialization. The scientific selection and development of the worker. . 2. . with an acute emphasis on job specialisation. 3.TAYLOR’S PRINCIPLES: 1.emphasis on performance-related pay. The constant and close co-operation of management and men . .the removal of conflict.work study. The development of a true science of work. . 4.
Focus on formal organization structure that separate basic process of general management.) b)Administrative Mgt /Functional Management Also called administrative management.1. using scientific forecasting and proper method of management. • Henri Fayol First to systematize organization. .Classical Theory(cont…. emphasizes on the manager and functions of the management.
one objective) Subordination of individual interests to organzational interest • Remuneration(fair compensationboth for employees and employers ) .Fayols 14 principles • • • • • • Division of work Authority and responsibility Discipline Unity of command (one boss) Unity of direction(one plan .
Fayols 14 principles • • • • • • • Centralisation Scalar chain Order Equity Stability Initiative Espirit de corps (unity is strength.team work) .
) • C) Bureaucracy • Max Weber – Developed the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness.1. .Classical Theory(cont….
. • Traditional authority: people obey a person because he belongs to a certain class(ex royalty) • Charismatic Authority: obedience is based on the followers belie that the leader has some special power or appeal.C) Bureaucracy Max Weber • Rational legal Authority: obedience is owned to a legally established position or rank within the hierarchy of the organisation.
C) Bureaucracy Max Weber(features) • • • • • • • Division of work Hierarchy of positions Rules and regulations Impersonal conduct Staffing Technical competence Official record keeping .
Neoclassical Approach Human Resources Approach HAWTHORNE STUDIES: •Elton Mayo and rothlesberger from harward business school were requested to be consultants studies at Western Electric’s Hawthorne Plant and began with an investigation to see if different lighting affected workers’ productivity.2. . •The Hawthorne effect is an increase in worker productivity produced by the psychological stimulus of being singled out and made to feel important.
improved physical conditions etc were maintained. However even when withdrawn productivity increased.rest pauses. Prodn records of these 14 wrks were compared with earlier records however no change . But existence of informal cliques groups and informal prodn norms observed ( ex people maintained or restricted output in interest of slow performing workers) • Mass Interview Programme:researches interviewed to find perception of working conditions norms etc Findings confirmed importance of social factors at work in the total work environment. Hawthorne Experiments .(Socio psychological factors – I am important and under observation) • Bank wiring experiments :study workers under normal conditions.• Illumination Experiments : Mapped workers productivity with varying levels of illumination (control gp and exp gp) • Relay Assembly room experiments: work gp of girls )new elements like shorter work hours.
social. . Maslow argued that each level in the hierarchy must be satisfied before the next could be activated.3. safety. esteem and selfactualization.Behavioural Science Approach Abraham Maslow He was a humanistic psychologist who proposed a hierarchy of human needs: physiological needs.
.Douglas McGregor He is best known for his formulation of two sets of assumptionsTheory X and Theory Y.
Organize. Controlling . Directing. Staffing. Organizing.Study management: Modern approaches (see History Model p41) Process Approach • 1920s (Henri Fayol): Plan. Leading. Organizing. Control • 1950s (Harold Koontz): Planning. Command. Controlling • 1990s (Stephen Robbins): Planning. Coordinate.
and developing subplans to coordinate activities Controlling Monitoring activities to ensure that they are accomplished as planned . Leading Directing and motivating all involved parties and resolving conflicts Planning Achieving the organization's stated purpose Defining goals. and who is to do it.Study management: Modern approaches (see History Model p41) Process Approach Organizing Determining what needs to be done. establishing strategy.
• Environment and system: System interact with the environment by exchanging materials. • System view on management: Organizations do not operate in isolation.Study management: Modern approaches (see History Model p41) 4.Systems Approach • System: A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. their survival and growth often depends on successful interactions with the external environment. energy and information. .
Study management: Modern approaches (see History Model p41) Systems Approach Global Public Pressure Groups Government Suppliers The Organization Customers Competitors Labor Unions .
it receives very little feedback from the outside . Open System continually interacts with its environment Closed System has little interaction with its environment.SYSTEMS APPROACH A system is defined as a set of interrelated or interacting elements.
profits. losses.Organizations are open systems that constantly interact with the external environment: Inputs The people. money. and the like that are produced by the organization Feedback Information about the reaction of the environment to the outputs that affect the inputs The organization’s capabilities in management and technology that are applied to converting inputs to outputs . equipment. information. employee satisfaction or discontent. services. and materials required to produce and organization’s goods or services Transformational Processes Outputs The products.
You can get hundreds of them. It all depends....Study management: Modern approaches (see History Model p42) 5. • What it depends on ? ... . • What are contingency variables ? ... It depends Contingency factors or contingency variables...Contingency Approach • What is the best way to management ? .
Study management: Modern approaches (see History Model p42) Contingency Approach Organization Size Environmental Uncertainty Effective Management Routineness of Task Technology Individual Differences .
motivational techniques.ness of task technology (task complexity dictates structure) –Environmental uncertainty (change management) –Individual differences (managerial styles . •Four popular contingency variables –Organization size (coordination) –Routine. and job design) . It is dependent on upon the contingencies of the situation.Contingency Approach There is no optimum way to structure organization.
After 1 week his father .I know that they taught you human relations at the management institutebut it just does not work here.a retired government officer said .But believe me there is more to manage people then just being nice to them .”Naval have had a chance to observe your working of men and women for the past few days.” .I remember when Hawthorne studies were reported everyone got excited about them.Case study 1 • Naval had just graduated from a reputed b school and joined his fathers business which employed 28 semiskilled workers. Although I hate to . You are just too nice to people. but I must say something.
?Questions • Do you think Naval’s father interpreted and understood Hawthorne studies completely? • If you were Naval what would be your reactions to Your fathers comments? .
operative employees • Meaning of management • Efficiency and effectiveness • Four primary management processes • Three levels of managers .Chapter Summary • Managers vs.
Chapter Summary • Essential roles of managers • Generic character of the manager’s job • Skills of successful managers • Value of studying management • Relevant Disciplines to management .
Chapter Summary • Prominent early contributors • Hawthorne studies • Process approach • System approach • Contingency approach .
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