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MANAGEMENT:

A GLOBAL AND ENTREPRENEURIAL PERSPECTIVE


by Weihrich, Cannice, and Koontz

Chapter

Management: Science, Theory, and Practice


2008 Weihrich & Cannice

Chapter 1. Management: Science, Theory, and Practice

After studying this chapter, you should be


able to:
1. Explain the nature and purpose of management
2. Understand that management applies to all kinds of organization and to
managers at all organizational levels
3. Recognize that the aim of all managers is to create a "surplus
4. Identify the trends in information technology and globalization
5. Explain the concepts of productivity, effectiveness, and efficiency
6. Describe the evolution of management and some recent contributions
to management thought
7. Describe the various approaches to management
8. Show how the management process approach draws from other
approaches
9. Realize the managing requires a systems approach
10. Define the managerial functions of planning, organizing, staffing,
leading, and controlling

2008 Weihrich and Cannice

Chapter 1. Management: Science, Theory, and Practice

Definition of Management:
Its Nature and Purpose

Management is the process of


designing and maintaining an
environment in which individuals,
working together in groups, efficiently
accomplish selected aims.

2008 Weihrich and Cannice

Chapter 1. Management: Science, Theory, and Practice

The Functions of Management

The five managerial functions around


which managerial knowledge are
organized: planning, organizing,
staffing, leading, controlling.

2008 Weihrich and Cannice

Chapter 1. Management: Science, Theory, and Practice

Managerial Functions at Different


Organizational Levels

All managers carry out managerial


functions, but the time spent for each
function may differ.

2008 Weihrich and Cannice

Chapter 1. Management: Science, Theory, and Practice

Fig. 1-1 Time Spent in Carrying Out


Managerial Functions

2008 Weihrich and Cannice

Chapter 1. Management: Science, Theory, and Practice

Managerial Skills and the Organizational


Hierarchy

The four skills required of


administrators:
Technical skills
Human skills
Conceptual skills
Design skills

2008 Weihrich and Cannice

Chapter 1. Management: Science, Theory, and Practice

Fig. 1-2 Skills and Management Levels

2008 Weihrich and Cannice

Chapter 1. Management: Science, Theory, and Practice

The Goals of All Managers and Organizations

The aim of all managers should be to


create a surplus. Thus, managers must
establish an environment in which
people can accomplish group goals with
the least amount of time, money,
materials, and personal dissatisfaction.

2008 Weihrich and Cannice

Chapter 1. Management: Science, Theory, and Practice

The External Environment


The external elements that affect operations
can be grouped into:
Economic factors
Technological factors
Social factors
Ecological factors

Political/legal factors
Ethical factors
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Characteristics of Excellent
Companies (Peters & Waterman)

Oriented toward action


Learned about the needs of their customers
Promoted managerial autonomy and entrepreneurship
Achieved productivity by paying close attention to the
needs of their people
Driven by a company philosophy often based on the
values of their leaders
Focused on the business they knew best
Had a simple organization structure with a lean staff
Were centralized as well as decentralized, depending on
appropriateness

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The Most Admired Companies in America


listed in Fortunes March 6, 2006 issue were

1. General Electric
2. FedEx
3. Southwest Airlines
4. Proctor & Gamble
5. Starbucks
6. Johnson & Johnson
7. Berkshire Hathaway
8. Dell
9. Toyota Motor
10. Microsoft.

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Adapting to Changes in
the 21st Century

To be successful in the 21st Century,


companies must take advantage of the
new information technologyespecially
the Internetand globalization.
M-commerce is mobile or wireless
commerce.

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Productivity

The output-input ratio within a time


period with due consideration for
quality.

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Definitions of Effectiveness
and Efficiency

Productivity implies effectiveness and


efficiency in individual and
organizational performance.
Effectiveness is the achievement of
objectives.
Efficiency is the achievement of the
ends with the least amount of resources
(time, money, etc.).
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Managing: Science or Art?

Managing as practice is an art; the


organized knowledge underlying the
practice may be referred to as a
science.

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The Evolution of Management Thought


& Patterns of Management Analysis

Frederick Taylor and Scientific


Management
Fayol, the Father of Modern
Operational Management Theory
Elton Mayo and F. Roethlisberger and
the Hawthorne Studies
Recent Contributors to Management
Thought, including Peter Drucker
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Taylor's Principles of
Scientific Management
1. Replacing rules of thumb with science (organized
knowledge)
2. Obtaining harmony in group action, rather than
discord
3. Achieving cooperation of human beings, rather
than chaotic individualism
4. Working for maximum output, rather than restricted
output
5. Developing all workers to the fullest extent possible
for their own and their company's highest
prosperity
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Fayol, the Father of Modern


Management Theory
Authority and responsibility. Authority is a
combination of official and personal factors.
Unity of Command. Employees should
receive orders from one superior only.
Scalar Chain. A "chain of superiors" from the
highest to the lowest ranks should be
shortcircuited when to follow it scrupulously
would be detrimental.
Esprit de Corps. This is the principle that "in
union there is strength.
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Elton Mayo and F. Roethlisberger and


the Hawthorne Studies.
In general, the improvement in productivity
was due to such social factors as morale,
satisfactory interrelationships between
members of a work group (a "sense of
belonging"), and effective managementa
kind of managing that would understand
human behavior, especially group behavior,
and serve it through such interpersonal skills
as motivating, counseling, leading, and
communicating.
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Recent Contributors to Management


Thought

Peter F. Drucker
Keith Davis
W. Edwards Deming
Joseph M. Juran
Laurence Peter
William Ouchi
Thomas Peters and Robert Waterman

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Patterns of Management Analysis: A


Management Theory Jungle?
1.
2.
3.
4.

The empirical, or case, approach


The managerial roles approach
The contingency, or situational, approach
The mathematical, or "management
science," approach
5. The decision theory approach
6. The reengineering approach
7. The systems approach
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Patterns of Management Analysis


cont.
8.
9.
10.
11.
12.
13.
14.

The sociotechnical systems approach


The cooperative social systems approach
The group behavior approach
The interpersonal behavior approach
McKinsey's 7S framework
The total quality management approach
The management process, or operational,
approach

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Fig. 1-4 The Management Process, or


Operational Approach

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The Management Process, or


Operational, Approach

This approach draws together the


pertinent knowledge of management by
relating it to the managerial jobwhat
managers do.
It tries to integrate the concepts,
principles, and techniques that underlie
the task of managing.
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Fig. 1-5 A Basic Input-Output Model

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The Five Managerial Functions

Planning
Organizing
Staffing
Leading
Controlling

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Definition of Planning

Selecting missions and objectives and


the actions to achieve them, which
requires decision making.

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Definition of Organizing

Organizing involves establishing an


intentional structure of roles for people
to fill in an organization.

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Definition of Staffing

Staffing involves filling, and keeping


filled, the positions in the organization
structure.

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Definition of Leading

Leading is influencing people so that


they will contribute to organization and
group goals.

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Definition of Controlling

Controlling is measuring and correcting


individual and organizational
performance to ensure that events
conform to plans

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KEY IDEAS AND CONCEPTS FOR REVIEW

Management
Managerial functions
Managerial skills in the
organizational hierarchy
The goal of all managers
Characteristics of excellent and
most admired companies
Three major trends: Advances
in technology, globalization, and
entrepreneurship
Productivity, effectiveness, and
efficiency
Managing: science or art?
Major contributors to
management thought

2008 Weihrich and Cannice

Contributors to scientific
management
Fayols operational
management theory
Mayo and Roethlisberger
Recent contributors to
management thought
Management theory jungle
Managerial roles approach
Management process, or
operational, approach
Systems approach to the
management process
Five managerial functions

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