MGT 6110

LECTURE 1
MANAGING CORPORATE
RESOURCES

1ST SESSION
TARUF

responsibility. One tradition of Prophet

Muhammad peace and blessings be upon
him reported by the companion Abdullah ibn
Umar says: The Messenger of Allah, peace
and blessings be upon him, said, Every
one of you is a shepherd and is
responsible for his flock. The leader of
people is a guardian and is responsible
for his subjects. A man is the guardian
of his family and he is responsible for
them. A woman is the guardian of her
husbands home and his children and
she is responsible for them. The
servant of a man is a guardian of the
property of his master and he is
responsible for it. Surely, every one of

A MANAGER

Why Study Management?

Management examines management policies and practices in the context of organizational

growth and development, management theory, theories of leadership, communication
processes, employment relations and the dynamics of organizational behaviour.

A MANAGER
a person who has control or direction of an
institution, business, etc., or of a part, division,
or phase of it.
a person who manages: the manager of our
track team.
a person who controls and manipulates
resources and expenditures, as of a household.
British (formerly) a theatrical producer.
Dictionary.Com

Definition: A Manager is the person responsible for planning and directing the work of a
group of individuals, monitoring their work, and taking corrective action when necessary.
For many people, this is their first step into a management career.

Managers may direct workers directly or they may direct several supervisors who direct the workers. The
manager must be familiar with the work of all the groups he/she supervises, but does not need to be the
best in any or all of the areas. It is more important for the manager to know how to manage the workers
than to know how to do their work well.

A manager may have the power to hire or fire employees or to promote them. In larger companies, a manager may only
recommends such action to the next level of management. The manager has the authority to change the work assignments of
team members.

What do Managers do?

A manager's title reflects what he/she is responsible for. For example: An Accounting
Manager supervises the Accounting function.

An Operations Manager is responsible for the

operations of the company. The Manager of
Design Engineering supervises engineers
and support staff engaged in design of a
product or service. A Night Manager is
responsible for the activities that take place
at night. There are many management
functions in business and, therefore,
many manager titles. Regardless of

title, the manager is

responsible for planning,
directing, monitoring and
controlling the people and
their work.

Innovation. Are we developing, making, and delivering new value

that meets stakeholder needs at a pace faster than the competition?

Talent. Are we achieving competitive advantage by having superior

systems in place to recruit, hire, develop, and retain the best talent?

Process. Are we recording annual productivity and quality gains that

exceed the competition through an organization-wide commitment to
continuous improvement?

Leadership
Leadership, a critical management skill, is the ability to motivate a group
of people toward a common goal.

Effective Leadership is essential

for any to be successful. Great
leaders are always critically
analyzing ways in which he/she
can improve in order to achieve an
array of goals. Everyone has the
capacity to lead.
It is through leadership that a
leader can become a catalyst for
positive change (s). Once a
sustainable change takes hold, the
fruits of everybodys labour would
be visible. This cannot happen

There are patterns of behavior that capture effective leadership. Leadership is a combination of art, science and
human nature. For some, it is an innate process; for others, it evolves and is refined over time. Everyone has the
ability to lead, although many choose not to lead. There is also no perfect way to lead, as leadership strategies and
practices need to adapt to the various dynamic environments in which leaders find themselves.

An organization needs individuals

to establish a collective vision and
put it into action to improve
professional practice.
Organization cannot be successful
if this does not happen, and the
success of the organization as a
whole depends on how well its
leaders guide the majority to
embrace meaningful change.

Essential Elements of Effective

Leadership
Modeling: The best leaders model
their expectations for their employees
and peers. The best leaders not only
talk the talk, but they also walk the
walk. Dont ask your employees or
colleagues do something that you are
not prepared to do. Better yet, show
them what the practice can and
should look like in action.

Essential Elements of Effective

Leadership
Not looking for buy-in: Effective leaders
should not have to sell their employees and
colleagues on a better way of doing things.
Intrinsic motivation is the most powerful force
we have to initiate and sustain change. Think
about how you can get people to embrace a
new idea, strategy, or initiative. If you do this,
the chances are you will have real results.
Start out by simply removing the words buyin from your vocabulary.

Essential Elements of Effective

Leadership
Providing support: Support comes in many
forms - financial, time, and professional
learning opportunities. The lack of any (or all)
of these should never be an excuse to not
move forward. Support begins with adopting
a no-excuse attitude and the resilience to
always seek out solutions to the many
problems that arise. Support should also be
differentiated. As we have come to know with
our students, a one-size-fits-all approach
never works.

Essential Elements of Effective

Leadership
Learning from failure: Everyone fails. That is
life. The key point, however, is that failure is one
of the greatest learning tools we have. We dont
like it, but it should be embraced. If leaders are
afraid to fail, then nothing will ever change.
Leadership is all about risks and rewards. With
every risk there is the potential for failure looming
around the corner. Learning from our experiences
including our failures empowers leaders to
be fearless change agents. Admitting when we
have failed actually inspires others.

Essential Elements of Effective

Leadership
Transparency: Leaders decisions and actions are
not challenged as much if those leaders are
transparent. Effective leaders use transparency to
assist with the embracement of change. This is
accomplished through a combination of
communication, shared decision-making,
consensus, debate, and social media. In the end,
all stakeholders should know why and how a leader
made a particular decision and how that decision
impacts the system. Transparent leaders to not
micromanage, give credit to others when
initiatives succeed, and take the blame things fail.

Essential Elements of Effective

Leadership
Flexibility: Stubbornness and
rigidity are clear indicators of a topdown approach to leadership. This
almost always builds resentment and
animosity towards change. Leaders
who are flexible listen to other points
of view, bend when necessary, and
are not afraid to change course if
things are not going well.

Essential Elements of Effective

Leadership
Resilience: Leadership is fraught with
challenges on a daily basis. There will
always be people second-guessing,
undermining, and ignoring decisions that
are made. Effective leadership requires
something between having empathy and
having a thick skin. This results in
resilience. Without resilience, ones
ability to lead effectively will be severely
diminished.

Essential Elements of Effective

Leadership
Never passing the buck: If you are
or want to be a leader, you
must always remember that there is
no passing the buck. When final
decisions have to be made, they
must be made with confidence,
clarity, and decisiveness.

WHY LEADERSHIP IN
MANAGEMENT?

CONTRASTING

MANAGE AN
ORGANIZATION

ORGANIZATION
an organized group of people with a
particular purpose, such as a
business or government department:
company firm concern operation
corporation
institution group establishment
consortium conglomerate combine
syndicate body agency
federation confederation alliance
coalition association movement
society league club network
confederacy outfit set-up

ORGANIZATION
the action of organizing something:
"the organization of conferences
synonyms: planning arrangement
coordination structuring
administration organizing running
management logistics establishment
formation development assembling
assembly regulation

ORGANIZATION
the quality of being systematic and efficient:
"his lack of organization
synonyms: efficiency order orderliness sense of order
method system tidiness planning
the way in which the elements of a whole are arranged:
"the spatial organization of the cells.
synonyms: structure arrangement scheme plan
pattern order form format framework system
composition constitution shape make-up
configuration systematization methodization
categorization classification codification

ORGANIZATION
Management examines management
policies and practices in the context
of organisational growth and
development, management theory,
theories of leadership,
communication processes,
employment relations and the
dynamics of organisational
behaviour.

Time is never going to be

enough!

2ND SESSION

HISTORICAL BACKGROUND OF
MANAGEMENT

HISTORICAL BACKGROUND

ACHIEVING THE
IMPOSSIBLE

CLASSICAL MANAGEMENT
APPROACH (1900-30)
The classical approach to
management can be divided into
mainly three distinct areas. These
are:
a) Lower level management analysis
or scientific management
b) Comprehensive analysis of
management or administrative
management

Classical approach to management is a set of homogeneous ideas on the management of organizations that evolved in
the late 19th century and early 20th century. This perspective emerges from the industrial revolution and centers on
theories of efficiency.

Classical approach of management is the

first
studies
of
management,
which
emphasized
rationality
and
making
organizations and workers as efficient as
possible.
It offers a convenient framework for the

Main proponents to Classical Aproach were Frederick Taylor, Henri Fayol and Max Weber
who generated management theories such as Taylors Scientific Management, Fayols
Administrative Management and Webers Bureaucratic Management (George, 1948)

The classical school is characterized

by highly structured, with emphasis
on the formal organization with
clearly defined functions and detailed
rules, autocratic leadership

Weberian bureaucracy
Disenchantment Ideal type
Iron cage Life chances
Methodological individualism
Monopoly on violence
Protestant work ethic
Rationalisation Social action
Three-component stratification
Tripartite classification of authority
Verstehen

PURSUIT OF ECONOMIC EFFICIENCY

Frederick Taylor
(1856-1915)
Leading proponent of

Scientific Management.

Also called Taylorism,[1] is a theory of management that analyzes and synthesizes workflows. Its main objective
is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science
to the engineering of processes and to management.

As at the end of the 19th century, when

factory production became pervasive and
large scale organizations raised, people
have been looking for ways to motivate
employees and improve productivity. As a
reaction to approaches of classical theory
which over-emphasized the mechanical and
physiological characters of management,
came up the schools of neoclassical theory
with a more human-oriented approach and
emphasis on time needs, drives, behaviors
and attitudes of individuals (Singh,1983).

Two important groups, namely, human relations school and behavioral schools emerged during 1920s and
1930s under the neoclassical theory. As in the late 1920s and early 1930s the Hawthorne experiments were
conducted by Elton Mayo and his associates to the Behavioral viewpoint. This brought about a led to Human
Relations Movement which included Douglas McGregors Theory X and Theory Y approach.

Neo-classical approach is the extended form of classical approach of management. It builds on Classical approach,
but broadens and expands it; it does not totally divorce itself from its predecessor. Rather, neoclassical theory adds
a more human element to the science of organization and management. (Gupta C B, 1992).

Neoclassical theorists recognized the

importance of individual or group
behavior and emphasized human
relations. Based on the Hawthorne
experiments, the neoclassical
approach emphasized social or
human relationships among the
operators, researchers and
supervisors (Hersey, P & Blanchard K,

Management theories can be classified into three broad groups. i)

Classical management theory ii) Neoclassical management theory iii)
Modern management theory .Under each group a few schools of thought
are identified.

Scientific management concentrates on the one best way to perform a task;

that is, it investigates how a task situation can be structured to get the highest
production from workers. The process of finding this one best way has
become known as scientific management (Certo S C & Certo S T, 2006).

Frederick W Taylor (1856-1915)

(Father of Scientific Management)

1. Develop a science for each element of an

individuals work to replace the old rule of thumb
method.
2. Scientifically select and then train, teach, and
develop the worker.
3. Heartily cooperate with the workers so as to
ensure that all work is done in accordance with the
principles of the science that has been developed.
4. Divide work and responsibility almost equality
between management and workers. Management
does all work for which it better suited than the
workers.

Administrative management focuses on

organizational efficiency. This approach is also called
comprehensive analysis of management

Bureaucratic Management: a stream of

classical theory of management. It is a
formal system of organization that is based
on clearly defined hierarchical levels and roles
in order to maintain efficiency and
effectiveness (Hodgetts et al, 1981). This
theory was developed by Max Weber and is
widely used in the management of both public
and private sector organizations. According to
the bureaucratic management approach,
organizations are usually divided into
hierarchies. These divisions help in creating
strong lines of authority and control (Singh R
N, 1983) within the ideal type of organization
he called a bureaucracy a form of
organization characterized by division of
labor, a clearly defined hierarchy, detailed
rules and regulations, and impersonal

Max Weber (1864-1924) was the first of

management theorists who developed
a theory of authority structures and
relations based on an impersonal
relationships (Wren D A, 1994).
Bureaucratic management depends
upon administration devices. Max
Weber presents the ideal organization
structure. According to Weber the
bureaucratic management approach is
based on four principles -Hierarchical
positions, rules of system, division of
labor for specialization, and impersonal
relationship.

Classical approach has been criticized on several counts. First, this theory is said to be
too formal, secondly, it is more appropriate for stable and simple organization than for
today's dynamic and complex organizations. Thirdly, it often prescribed the universal
procedures that are not appropriate in some setting.

Human relation movement: Taking a clue from

the Hawthorne Experiments several theorists
conducted research in the field of interpersonal and
social relations among the members of the
organization. These relations are known as human
relations. A series of studies by Abraham H. Maslow,
Douglas Mc Gregor, Frederick Herzberg, Keth Davis,
Rensis Likert and others lead to what is human
relation movement (Singh, 1983). Human relation
movement argued that workers respond primarily
to the social context of the workplace, including
social conditioning, group norms and interpersonal
dynamics.

Organizational behavior: Several

psychologists and sociologists began the
study of group dynamics, Chris Argyris,
Homans Kurt Lewin, R.L. Katz, Kahn and
others developed the field of organizational
behavior. It involves the study of attitudes,
behavior and performance of individuals and
groups in organizational settings. This
approach came to be known as movement. It
is multidbehavioral approach. It is extended
and improved version of human relations
imensional and interdisciplinary the
application of knowledge drawn from
behavioral sciences (Psychology, sociology,
anthropology, etc) to the management
problems (Cole G A, 1984). Therefore, it is
also called behavioral science approach.

Neoclassical approach is not free from

limitations. First, it lacks the precision of
classical theory because human behavior is
unpredictable. Secondly, its conclusions lack
scientific validity and suffer from a clinical
bias, its findings are tentative. Lastly its
application in practice is very difficult
because it requires fundamental changes in
the thinking and attitude of both
management and workers.

Points of distinction

Classical Approach

Neoclassical
Approach

Focus

Functions and
economic demands of
workers

Emotion and quality of

worker

Structure

Impersonal and
mechanistic

Social system

Applications

Autocratic
Democratic process
management and strict
rules

Emphasis

Discipline and
rationality

Personal security and

social demands

Goal of Worker

Maximum
remuneration and
Reward

Attainment of
Organizational Goal

Concept about men

Economic being

Social being

Content

Scientific
management,
administrative
management and

Hawthorne experiment,
Human relation
movement and
Organizational