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Who Are Managers?
‡ Explain how manager differ from non-managerial employees.
‡ Discuss how to classify managers in organizations.

What Is Management?
‡ Define management.
‡ Contrast efficiency and effectiveness.
‡ Explain why efficiency and effectiveness are important to management.



 
What Do Managers Do?
‡ Describe the four functions of management.
‡ Explain Mintzberg·s managerial roles.
‡ Describe
Katz·s three essential managerial skills and how the
importance of these skills changes depending on managerial
level.
‡ Discuss the changes that are impacting managers· jobs.
‡ Explain
why customer service and innovation are important to
the manager·s job.



 
What Is An Organization?
‡ Describe the characteristics of an organization.
‡ Explain how the concept of an organization is changing.

Why Study Management?

‡ Explain the universality of management concept.
‡ Discuss why an understanding of management is important even if you
don·t plan to be a manager.
‡ Describe the rewards and challenges of being a manager.


m
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( An Organization Defined
ºA deliberate arrangement of people to accomplish
some specific purpose
( Common Characteristics of Organizations

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( Manager
º Someone who works with and through other people
by coordinating and integrating their work activities
in order to accomplish organizational goals.
º Classification
( First-line Managers
º Are at the lowest level of management and manage the work of non-managerial
employees.
( Middle Managers
º Manage the work of first-line managers.
( Top Managers
º Are responsible for making organization-wide decisions and establishing plans
and goals that affect the entire organization.

MANAGERIAL FUNCTIONS AS AT DIFFERENT ORGANIZATIONAL
LEVELS .

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º Efficiency
D ´Doing things rightµ
Getting the most output for
the least inputs
º Effectiveness
D ´Doing the right thingsµ
Attaining organizational goals


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( Functional Approach
º Planning
D Defining
goals, establishing strategies to achieve goals,
developing plans to integrate and coordinate activities.
º Organizing
D Arranging work to accomplish organizational goals.
º Leading
D Working with and through people to accomplish goals.
º Controlling
D Monitoring, comparing, and correcting the work.

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MANAGEMENT KI AT ARI EVELS

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( Management Roles Approach
º Interpersonal roles
D Figurehead, leader, liaison
º Informational roles
D Monitor, disseminator, spokesperson
º Decisional roles
D Disturbance handler, resource allocator, negotiator


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( INTERPERSONAL
( Figurehead Performs ceremonial and symbolic duties such as greeting
visitors, signing legal documents
( Leader Direct and motivate subordinates, training, counseling, and
communicating with subordinates
( Liaison Maintain information links both inside and outside organizaion; use
mail, phone calls, meetings
( INFORMATIONAL
( Monitor Seek and receive information, scan periodicals and reports,
maintain personal contacts
( Disseminator Forward information to other organization members; send
memos and reports, make phone calls
( Spokesperson Transmit information to outsiders through speeches, reports,
memos; represent departmental interests

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( DECISIONAL
( Entrepreneur Initiate improvement projects, identify new ideas,
delegate idea responsibility to others
( Disturbance Handler Take corrective action during disputes or
crises; resolve conflicts among subordinates; adapt to
environmental crises
( Resource Allocator Decide who gets resources, scheduling,
budgeting, setting priorities
( Negotiator Represent department during negotiation of union
contracts, sales, purchases, budgets


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( The Increasing Importance of Customers

º Customers: the reason that organizations exist

D Managing customer relationships is the responsibility of all
managers and employees.
D Consistent high quality customer service is essential for survival.

( Innovation

º Doing things differently, exploring new territory, and taking risks

D Managers should encourage employees to be aware of and act on
opportunities for innovation.
-
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What is Management ?

( A Discipline - Accumulated body of knowledge that

can be learned
( Human Activity - managing the most important
asset of an organisation ie People
( Process ² involving certain functions and activities.
( Career


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( Management is the Process of ´getting things done

through the efforts of othersµ,getting from where
we are to where we want to be with the least
expenditure of time,money and efforts.

( Coordinating individual and group efforts towards

superordinate goals.




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( The recorded use of organised management dates
back to 5000 B.C. when the agricultural revolution had
taken place. These agricultural civilizations existed in
India, China and Egypt
( As early as 4000 B.C., the Egyptians were aware of the
importance of planning, organising and controlling.
( In ancient India Kautilya wrote his Arthashastra in about
321 B.C. the major theme of which was political, social
and economic management of the State. The study of
administration of the cities of Mohenjodaro and
Harappa of the ancient Aryans in 2000 B. C., Buddha's
order and the Sangha in 530 B. C., provide evidence
about the use of the principles of management.


 



 

´The process of achieving the

objectives of the business
organization by bringing
together human, physical, and
financial resources in an
optimum combination and
making the best decision for
the organization while taking
into consideration its operating
environmentµ.

mm
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( Scientific Management
( General Administrative Theory

( Quantitative Management

( Organizational Behavior

( Systems Approach

( Contingency Approach

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o THE CLASSICAL THEORY OF MANAGEMENT
a) Scientific Management Theory
b) Organization Theory - Bureaucracy Theory and
Administrative Management.
o THE NEO-CLASSICAL THEORY OF MANAGEMENT:
a) Human Relations Approach
b) Behavioral Sciences Approach.
o THE MODERN THEORY OF MANAGEMENT:
a) Quantitative Approach to Management (Operations
Research)
b) Systems Approach to Management and
c) Contingency Approach to Management.
(



 


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( The scientific management schools
( Scientific management theory arose in part from the need to
increase productivity.
( In the united states especially, skilled labor was in short
supply at the beginning of the twentieth century.
( The only way to expand the productivity was to raise the
efficiency of workers.Therefore ,Fredick W.Taylor,Henry
Gantt,and Frank and Lillian Gilbreth devised the body of
principles known as Scientific management theory



 


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SCIENTI IC MANAGEMENT 4 PRINCIPLES

1. Develop a science for each element of an individual¶s work,

which will 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 equally between
management and workers.

-

 


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( Employers to pay more productive workers higher rate than

others. Using a ´scientifically correct ´rate that would benefit
both the company and workers.

( Thus the workers were urged to surpass their previous

performance standards to earn more pay

( Taylor called his plane the differential rate system.


LIMITATI NS SCIENTI IC MANAGEMENT
THEORY
( Although Taylor's method led to dramatic increase in productivity and higher
pay in number of instance , Workers and unions began to oppose his approach
because they feared that working harder or faster would exhaust whatever work
was available Causing layoffs.

( Taylors system clearly meant that time was of the essence .

( ² His critics objected to the speed up condition that placed undue pressure on
employees to perform at faster and faster levels.

( ² The emphasis on productivity and by extension profitability led some

managers to exploit both the workers and customers.

( ² As a result more workers joined unions and thus reinforced a pattern of

suspicious and mistrust that shaded labor relations for decades.


HENRY L.GANNT (1861-1919)
( Abandoning the differential rate system as having too little motivational impact
Gannt came up with new idea.
( He proposed that every worker who finished days assigned work load would win
50 percent bonus.
( The supervisor would earn a bonus for each workers who reached the daily
standard , plus a extra bonus if all the workers reached it.
( This Gantt reasoned would spur super wiser to train their workers to do a better
job.
( Every workers progress was rated publicly and recorded on individual bar
charts black on days the worker made the standard and Red when he or she fell
below it.
( Gantt originated a Charting system for production.
1. The critical path method (cpm) originated by Dupont,and program evaluation and
review Technique(PERT),developed by navy and lotus 1-2-3 system were devised
as a direct outcome of Gannt ¶s contribution.


RANK B. AND LILLIAN M.GILBRETH(1868-
1924) AND (1878-1972)
( Frank and Lillian Gilbreth
º Focused on increasing worker productivity through the
reduction of wasted motion
º Developed the microchronometer to time worker motions
and optimize performance
( How Do Today·s Managers Use Scientific Management?
º Use time and motion studies to increase productivity
º Hire the best qualified employees
º Design incentive systems based on output


 RANK B. AND LILLIAN M.GILBRETH(1868-1924)
AND (1878-1972)
( To the scientific management movement as a husband and wife team.
Lillian and Franck collaborated on fatigue and motion studies or Time
and Motion Studies and focus on ways on promoting the individual
workers welfare.
( The ultimate aim of scientific management was to help workers reach
their full potential as human beings
( In their conception motion and fatigue were intertwined every motion
that was eliminated reduced fatigue.
( Using motion picture cameras they tried to find out the most
economical motions for each task in order to upgrade performance and
reduce fatigue .


 m
  
( Activity based on Scientific Management
Theory
( Based on your experiences at school, describe
some ways in which the principles of scientific
management and bureaucracy are still used in
education sector. Do you believe these
characteristics will ever cease to be a part of
institution life? Discuss.
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The Theory had 2 major purpose.
1. To develop principles that could guide the
design , creation and maintenance of large
organizations.
2. To identify the basic functions of managing
organizations.


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( Theory of Bureaucracy : Organisation
as a Bureaucracy contributed by Max
Weber (1864-1920 )

( Administrative Theory : Emphasized

management functions and
attempted to generate broad
administrative principles that would
serve as guidelines for organizational
activities. Contributors Henri Fayol
(1949 trans.), Mooney and Reiley
(1939) and Gulick and Urwick (1937)


 m:
( The Bureaucracy Theory - An Efficient Organization should be based on 5
principles.
1. A managers·s formal authority should be derived from the position held
within the organization.
2. People should occupy positions in an organization based on their
performance / Qualifications and not social standing or personal contact.
3. Each Position·s authority , task responsibility and working relationship
should be clearly specified.
4. Reporting relationships should be clear and Organization·s hierarchy should
enable effective Authority.
5. To control behavior , manager·s must create a wel dfined system of ruls ,
SOP·s and norms.


mm8m
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( Henry Fayol (1841-1925) :
( Divided the manager·s job into five functions:
D Planning, organizing, staffing, commanding, coordination, and
control.
Developed 14 universal principles of management.
( Fayol divided general and industrial management into following six groups
1. Technical activities (production, manufacture, adaptation).
2. Commercial activities (buying, selling and exchange).
3. Financial activities (search for and optimum use of capital).
4. Security activities (protection of property and persons).
5. Accounting activities (stock taking, balance sheet, cost, and statistics).
6. Managerial activities (planning, organising, command, coordination and
control)


  

m -Ñ
14 General Principles of Management

ù Division of labor ù Centralization

ù Authority ù Scalar chain
ù Discipline ù Order
ù Unity of command ù Equity
ù Unity of direction ù Stability and tenure
ù Subordination of of staff
individual interest ù Initiative
ù Remuneration ù Esprit de corps


m ;  

 
( He gave overall concepts of general management and suggested the basic
functions of management.
( He recommended the selection and training of workers and managers.
( He also advocated the use of organisation charts. He suggested certain
qualities of manager·s winch include physical, mental, moral, educational
technical and experience.
( Fayol·s theory of management was the first complete theory of
management as we understand today. It incorporated proven principles,
elements, procedures and techniques based on his practical experience.
( Henry Fayol came to be recognised as the founder of modern management
theory.


 m



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m 
( The focus is on ´People ´ who staff for, and manage the
organisation rather than just the Organisation as an Entity.
( Deeper understanding of human behaviour, needs, and
attitudes in the workplace.
 Human Relations Approach : Psychological Behavior &
Social Acceptance .
 Behavioral Sciences Approach : Self Actualisation



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( The Human Relations Movement
º An effort to make managers more sensitive to their
employees· needs.
º Arose out the influences of
Dthe threat of unionization.
Dthe Hawthorne studies.

Dthe philosophy of industrial humanism.

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mm
( The Threat of Unionization
º The Wagner Act of 1935 legalized union-management
collective bargaining, promoting the growth of unions and
union avoidance by firms.
( The Hawthorne Studies (1924)
º The study·s results that productivity was strongly affected by
workers· attitudes , this turned management toward the
humanistic and realistic viewpoint of the ´social manµ
model.


 m  m
    
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( Elton Mayo

º Believed emotional factors were more important determinants of

productive efficiency than were physical and logical factors.
( Mary Parker Follett
º Advocated that managers become aware of how complex each
employee is and how to motivate employees to cooperate rather
than to demand performance from them.
( Douglas McGregor
º Developed Theory X and Theory Y

D Theory X: management·s traditionally negative view of

employees as unmotivated and unwilling workers.
D Theory Y: the positive view of employees as energetic, creative,
and willing workers.


 mm
 -

( Importance of common super-ordinate goals for

reducing conflict in organizations

( Leadership ² importance of people vs. engineering

techniques

-
 :m 
( Douglas McGregor (1906-
(1906-1964)
º Articulated basic principles of human relations theory
º M


 
 
(1960, 1985)
º To understand human behavior, one must discover the theoretical assumptions
upon which behavior is based
º Especially interested in the behavior of managers toward workers
º ´Every managerial act rests on assumptions, generalizations, and hypotheses--
that is to say, on theory . . . Theory and practice are inseparable.µ
º Two Objectives:
D Predict and control behavior
D Tap Unrealized potential
º Theory X - Classical Theory
º Theory Y - Human Relations Theory
º FOCUS: Manager·s assumptions about HUMAN NATURE

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( Lessons from the Behavioral Approach
º People are the key to productivity.
º Success depends on motivated and skilled
individuals committed to the organization.
º Managerial sensitivity to employees is necessary to
foster the cooperation needed for high productivity.

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( Chester Barnard
º Considered a bridge between classical and human
relations theories
º M
 
 
 
1938)

 
 
1938)
º Argues for . . .
D strict lines of communication - classical theory
D a ´human-
´human-based system of organizationµ
D The potential of every worker and the centrality of
communication to the organizing process
º Six Issues Relevant to Organizational Communication
D Formal vs. Informal Organization
D Cooperation
D Communication
D Incentives
D Authority
D Zone of Indifference
SIX ISSUES RELEVANT TO ORGANI ATIONAL
COMMUNICATION
( Formal vs. Informal Organization
º Formal Organization - a system of consciously coordinated activities or forces of two or more
persons. (definite, structured, common purpose)
D Persons are able to communicate with one another
D Willing to contribute action
D To accomplish a common purpose
º Informal Organization - based on myriad interactions that take place thourghout an organization·s
history.
D Indefinite
D Structureless
D No definite subdivisions of personnel
D Results: customs, mores, folklore, institutions, social norms, ideals -- may lead to formal organization
( Cooperation
º Necessary component of formal organization
º The expression of the net satisfactions or dissatisfactions experienced or anticipated by each
individual in comparison with those experienced or anticipated through alternative opportunities
( Communication
º Critical to cooperation
º The most universal form of human cooperation, and perhaps the most complex, is speech
º The most likely reason for the success of cooperation and the reason for its failure
º System of communication: known, formal channels which are as direct (short) as possible, where
the complete line of communication is used, the supervisory heads must be competent, the line of
communication should not be interrupted, and every communication should be authenticated.
º Barnard·s system lacks relationship formation and maintenance mechanisms
‡ SIX ISSUES RELEVANT TO ORGANIZATIONAL
COMMUNICATION
( Incentives
º Should be available
º Not discussed in detail
( Authority
º Associated with securing cooperation for organizational members
º The interrelationship among the originator of the communication, the
communication itself, and the receiver
º Authority of position OVER Authority of Leadership (knowledge & ability).
( Zone of Indifference - orders followed
º Marks the boundaries of what employees will consider doing without
question, based on expectations developed on entering the organization.

Barnard drew attention away from formal organizational structures toward

communication, cooperation, and the informal organization. His work was
integrated by other theorists in the human relations movement.
   mm m 


( Elton Mayo : Believed emotional
factors were more important determinants
of productive efficiency than were physical
and logical factors.

( Conducted the Hawthorne Experiments :

Demonstrated the importance of
understanding how the feelings, thoughts,
and behavior of work-group members and
managers affect performance

Ñ
 m 

( The Hawthorne studies
were carried out by the
Western Electric company
at their Hawthorne plant
in the 1920's.
( Ten year study
º 1924 - Chicago
º Research focus:
Relation of quality and
quantity of illumination
to efficiency in industry
º Four Important Studies

Ñ
 THE HAWTHORNE STUDIES
( Illumination Study (November 1924)
º Designed to test the effect of lighting intensity on worker productivity , Experiment indicated that Productivity
increased when studies were on and slumped when the study got over as workers were motivated due to the
interest shown by management .
º The mere practice of observing people·s behavior tends to alter their behavior and is called (Hawthorne Effect)

º This formed the basis of the Further Experiments done by Mayo .

( Relay Assembly Test Room Study (1927-

(1927-1932)
º Assembly of telephone relays (35 parts - 4 machine screws)
º Production and satisfaction increased regardless of IV manipulation (payrate
(payrate , break interval , meals , hours of
work )
º Workers· increased production and satisfaction related to supervisory practices
º Human interrelationships are important contributing factors to worker productivity
º Bottom Line: Supervisory practices increase employee morale AND productivity

( Interviewing Program (1928-

(1928-1930)
º Investigate connection between supervisory practices and employee morale
º The results proved that upward communication in an organisation creates a positive attitude in the work
environment.
º The workers feel pleased that their ideas are being heard.
( Bank Wiring Room Observation Study (November 1931 - May 1932)
º Social groups can influence production and individual work behavior
º RQ: How is social control manifested on the shop floor?
º Informal organization constrains employee behavior within formal organizational structure Ñ
RELAY ROOM EXPERIMENT
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( Researchers spent five years measuring how different variables impacted the group's and
individuals' productivity. Some of the variables were:
( changing the pay rules so that the group was paid for overall group production, not individual
production
( giving two 5-minute breaks (after a discussion with them on the best length of time), and then
changing to two 10-minute breaks (not their preference). Productivity increased, but when they
received six 5-minute rests, they disliked it and reduced output.
( providing food during the breaks
( shortening the day by 30 minutes (output went up); shortening it more (output per hour went
up, but overall output decreased); returning to the first condition (where output peaked).

( What Really Increased the Productivity?

( choosing one's own coworkers, working as a group, being treated as special (as evidenced by
working in a separate room), and having a sympathetic supervisor were the real reasons for the
productivity increase


m 

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( The purpose of the next study was to find out how payment incentives would
affect productivity.
( The surprising result was that productivity actually decreased, because the
men were afraid that the company would lower the base rate and had a
clear idea of a fair day·s work .
( Workers apparently had become suspicious that their productivity may have
been boosted to justify firing some of the workers
( Done on group of fourteen men who put together telephone switching
equipment.
( There was existence of informal groups or "cliques" within the formal groups.
These cliques developed informal rules of behavior as well as mechanisms
to enforce them. The cliques served to control group members and to
manage bosses; when bosses asked questions, clique members gave the
same responses, even if they were untrue.


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force of their peer groups than to the
control and incentives of management.


 IMPLICATIONS O HAWTHORNE
( STUDIES
Illumination Study (November 1924)
º The mere practice of observing people·s behavior tends to alter their behavior (Hawthorne Effect)
( Relay Assembly Test Room Study (1927-
(1927-1932)
º Relationships between workers and their supervisors are powerful
º Human interrelationships / informal group increase the amount and quality of worker participation in
decision making
( Interviewing Program (1928-
(1928-1930)
º Demonstrated powerful influence of upward communication
º Workers were asked for opinions, told they mattered, and positive attitudes toward company increased
( Bank Wiring Room Observation Study (November 1931 - May 1932)
º Led future theorists to account for the existence of informal communication

( Taken together, these studies helped to document the powerful nature of social relations in the
workplace and moved managers more toward the interpersonal aspects of organizing.


m m  
 


( Emerged after WW II
( Applied mathematics, statistics, and other
quantitative techniques to managerial
problems
l Operations Research ² mathematical modeling
l Operations Management ² specializes in
physical production of goods or services
l Information Technology ² reflected in
management information systems

   

 Systems Theory

 Contingency Theory

 Current Trends in Mgmt

Ñ
 mm
( System Defined
º A set of interrelated and interdependent parts arranged in a manner
that produces a unified whole.
( Basic Types of Systems
º Closed systems

D Are not influenced by and do not interact with their environment (all
system input and output is internal).
º Open systems

D Dynamically interact to their environments by taking in inputs and

transforming them into outputs that are distributed into their
environments.
m
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m
 
 
mm
o Coordination of the organization·s parts is essential for proper functioning of
the entire organization.

o Decisions and actions taken in one area of the organization will have an
effect in other areas of the organization.

o Organizations are not self-contained and, therefore, must adapt to changes

in their external environment.
 
 mm
Contingency Approach Defined
( Also sometimes called the    
( There is no one universally applicable set of management principles
(rules) by which to manage organizations.
( Organizations are individually different, face different situations
(contingency variables), and require different ways of managing.
Popular Contingency Variables
‡ Organization size
‡ Routineness of task technology
‡ Environmental uncertainty
‡ Individual differences
  m 

( Globalization
( Ethics

( Workforce Diversity

( Entrepreneurship

( E-business

( Knowledge Management

( Learning Organizations

( Quality Management
  m 

( Globalization
º Management in international organizations
º Political and cultural challenges of operating in a
global market
( Ethics
º Increased emphasis on ethics education in college
curriculums
º Increased creation and use of codes of ethics by
businesses
  m 
? ;@
( Globalization
º Management in international organizations
º Political and cultural challenges of operating in a
global market
( Ethics
º Increased emphasis on ethics education in college
curriculums
º Increased creation and use of codes of ethics by
businesses
  m 
? ;@
( Workforce Diversity
º Increasing heterogeneity in the workforce
D More gender, minority, ethnic, and other forms of
diversity in employees
º Aging workforce
D Older employees who work longer and do not retire
D Theincreased costs of public and private benefits for
older workers
D Anincreasing demand for products and services related
to aging.
  m 
? ;@

( Entrepreneurship process involves

º Pursuit of opportunities
º Innovation in products, services, or business
methods
º Desire for continual growth of the organization
  m 
? ;@

( E-Business (Electronic Business)

º The work preformed by an organization using electronic
linkages to its key constituencies
º E-commerce: the sales and marketing component of an e-
business
( Categories of E-Businesses
º E-business enhanced organization
º E-business enabled organization
º Total e-business organization
  m 
? ;@

( Knowledge Management
º The cultivation of a learning culture where organizational
members systematically gather and share knowledge with
others in order to achieve better performance.
( Learning Organization
º An organization that has developed the capacity to
continuously learn, adapt, and change.
 m
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( Quality Management
ºA philosophy of management driven by continual
improvement in the quality of work processes and
responding to customer needs and expectations
º Inspired by the total quality management (TQM)
ideas of Deming and Juran
º Quality is not directly related to cost
m
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