ESSENTIALS OF MANAGEMENT:

An International Perspective
Sixth Edition
Weihrich and Koontz

Chapter 1. Management: Science,

Theory, and Practice

2004 H. Chapt. 1. 1
After studying this chapter, you should understand

1. The nature and purpose of management.

2. That management applies to all kinds of organizations
and to managers at all organizational levels.
3. That the aim of all managers is to create a "surplus"
4. That the nature of excellent and admired companies and
their characteristics.
5 The trends in information technology and globalization.
6. The concepts of productivity, effectiveness, and efficiency.
7. That management as practice is an art in which the
underlying theory and science are applied in light of
situations.
8. The evolution of management and some recent
contributions to management thought.

2004 H. Chapt. 1. 2
 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

2004 H. Chapt. 1. 3
The Functions of Management
The five managerial functions
around which managerial
knowledge are organized are:
planning, organizing, staffing,
leading, and controlling

2004 H. Chapt. 1. 4
Managerial Functions at Different
Organizational Levels
No basic distinction is made between
managers, executives, administrators,
and supervisors
All managers carry out managerial
functions. However, the time spent for
each function may differ

2004 H. Chapt. 1. 5
Time Spent in Carrying Out
Managerial Functions

2004 H. Chapt. 1. 6
 .
Managerial Skills and the
Organizational Hierarchy
The four skills for administrators are:
technical,
human,
conceptual, and
design skills

2004 H. Chapt. 1. 7
 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
2004 H. Chapt. 1. 8
 Characteristics of Excellent Companies
(Peters & Waterman)
These firms
* Were 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
* Were 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

2004 H. Chapt. 1. 9
 Excellent Companies Adapt to
Changes in the 21st Century
To be successful in the 21st Century,
companies must take advantage of the
new information technology - especially
the Internet - and globalization
M-Commerce is mobile or wireless
commerce

2004 H. Chapt. 1. 10
 Definition of Productivity
Productivity is the output-input ratio
within a time period with due
consideration for quality

2004 H. Chapt. 1. 11
 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.)

2004 H. Chapt. 1. 12
 Managing: Science or Art?
Managing as practice is an art; the
organized knowledge underlying
the practice may be referred to as a
science

2004 H. Chapt. 1. 13
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
2004 H. Chapt. 1. 14
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

2004 H. Chapt. 1. 15
 Fayol, the Father of Modern
OperationalManagement Theory
Authority and responsibility. authority is a
combination of officialfactors 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"

2004 H. Chapt. 1. 16
 Elton Mayo and F. Roethlisberger
and the Hawthorne Studies.
In general, that 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 management--a
kind of managing that would understand
human behavior, especially group behavior,
and serve it through such interpersonal skills
as motivating, counseling, leading, and
communicating

2004 H. Chapt. 1. 17
Recent Contributors to Management
Thought
Peter F. Drucker
Keith Davis
Edwards Deming
Joseph M. Juran
Peter Laurence
William Ouchi
Thomas Peters and Robert Waterman
2004 H. Chapt. 1. 18
PATTERNS OF MANAGEMENT ANALYSIS: A
MANAGEMENT THEORY JUNGLE?

(1) the empirical, or case, approach,

(2) the managerial roles approach,
(3) the contingency, or situational, approach,
(4) the mathematical, or "management
science," approach,
(5) the decision theory approach,
(6) the reengineering approach,
(7) the systems approach,

2004 H. Chapt. 1. 19
PATTERNS OF MANAGEMENT ANALYSIS:
-- continued

(8) the sociotechnical systems approach,

(9) the cooperative social systems approach,
(10) the group behavior approach,
(11) the interpersonal behavior approach,
(12) McKinsey's 7S framework,
(13) the total quality management approach,
(14) the management process, or operational,
approach.
2004 H. Chapt. 1. 20
 The Managerial Roles Approach
(Mintzberg)
3 Interpersonal roles
3 Informational roles
4 Decision roles

2004 H. Chapt. 1. 21
The Management Process, or
Operational, Approach
This approach draws together the
pertinent knowledge of management by
relating it to the managerial job--what
managers do
It tries to integrate the concepts,
principles, and techniques that underlie
the task of managing

2004 H. Chapt. 1. 22
 SSooccioiolo
y loggyy/ /s
e or soocciaia
th l lppssyy
tems cchhoolo
loggyy
s
Sy

Ps
y
ch
olo
gy
D
ec
isi
on
th
eo
r
y

Mat i ca l ce
hem in en
atics Cl peri
ex

2004 H. Chapt. 1. 23
 A Basic Input-Output Model

2004 H. Chapt. 1. 24
 The Five Managerial Functions

Planning
Organizing
Staffing
Leading
Controlling

2004 H. Chapt. 1. 25
 Definition of Planning
Planning involves selecting missions
and objectives and the actions to
achieve them; it requires decision
making

2004 H. Chapt. 1. 26
 Definition of Organizing
Organizing involves establishing an
intentional structure of roles for people
to fill in an organization

2004 H. Chapt. 1. 27
 Definition of Staffing
Staffing involves filling, and keeping
filled, the positions in the organization
structure

2004 H. Chapt. 1. 28
 Definition of Leading
Leading is influencing people so that
they will contribute to organization and
group goals

2004 H. Chapt. 1. 29
 Definition of Controlling
Controlling is measuring and correcting
individual and organizational
performance to ensure that events
conform to plans

2004 H. Chapt. 1. 30
The Systems Model of
Management and This
Book

2004 H. Chapt. 1. 31