Chapter 1

Management: Science, Theory, &

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.
 Functions of Management
• Planning
• Organizing
• Staffing
• Leading
• Controlling
 Managerial Functions at Different
Organizational Levels
• All managers carry out managerial functions, but the time spent for
each function may differ.
Time Spent in Carrying Out
Managerial Functions
 Managerial Skills and the Organizational Hierarchy

The four skills required of administrators:

• Technical skills
• Human skills
• Conceptual And Design skills
Skills and Management Levels
 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.
 Characteristics of Excellent & Most Admired
Companies
• 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
• Centralized as well as decentralized, depending on appropriateness.
 Trends
• Technology
• Globalization
• Entrepreneurship
 Productivity
• Productivity implies effectiveness and efficiency in individual and
organizational performance.
• Productivity= Input
Output
• Increasing outputs with the same inputs
• Decreasing inputs but maintaining the same outputs
• Increasing the outputs and decreasing the inputs to change the ratio
favorably
 Definitions of Effectiveness
and Efficiency
• Effectiveness is the achievement of objectives.
• Efficiency is the achievement of the ends with the least amount of
resources (time, money, etc.).
 Managing: Science or Art
• Managing as practice is an art; the organized knowledge underlying
the practice is a science.
 Management & Administration
Administration
Traditional & bureaucratic
Refers to decision making &
determination of what is to be done &
how
Normative by nature
Stress on process, & elaborate rule
governed procedure
Focus on ideology
Importance of uniformity & standards
Priority is governance
Management
More modern & dynamic
Refers to execution & implementation of
agreed goals
Problem solving by nature
Stress on output by often not trying to
minimize something, but optimizing the
opposing forces.
Focus on skills
Importance of variance & context
Priority is performance
 The Evolution of Management Thought
• Scientific management
– Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth
• Modern operational management theory
– Henry Fayol
• Behavioural sciences
– Hugo Munsterberg, Walter Dill Scott, Max Weber, Vilfredo Pareto, Elton
Mayo & F J Roethilisberger
• Systems theory
– Chester Bernard
• Modern management thought
– Peter F Drucker, W Edwards Deming, Laurence Peter, William Ouchi,
Thomas Peters and Robert Waterman
 Frederick Taylor & Scientific Management
• Fundamental principles that Taylor saw underlying scientific
management:
– Replacing rules of thumb with science (organized knowledge)
– Obtaining harmony, rather than discord, in group action
– Achieving cooperation of human beings, rather than restricted output
– Developing all workers to the fullest extent possible for their own and
their company’s highest prosperity.
Henri Fayol’s 14 Principles of Management
• Division of labour
• Authority
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of Individual Interest to Common Good
• Remuneration
• Centralization
• The Hierarchy
• Order
• Equity
• Stability of staff
• Initiative
• Esprit de Corps
 Patterns of Management Analysis
• The Managerial Roles Approach
– Interpersonal roles
– Informational roles
– Decision roles
• The Management Process or Operational Approach
– Draws together the pertinent knowledge of management by relating it to
the managerial job.
 The Systems Approach to the Management
Process
• Inputs and claimants
• The managerial transformation process
• The communication system
• External variables
• Outputs
• Reenergizing the system
 The Functions of Managers
• Planning
– Selecting missions and objectives as well as the actions to achieve them,
which requires decision making
• Organizing
– Establishing an intentional structure of roles for people to fill in an organization
• Staffing
– Filling and keeping filled, the positions in the organization structure
• Leading
– Influencing people so that they will contribute to organizational and group roles
• Controlling
– Measuring and correcting individual and organizational performance to ensure
that events conform to plans