ESSENTIALS OF MANAGEMENT:

An International Perspective
Sixth Edition
Weihrich and Koontz

Chapter 1. Management: Science,

Theory, and Practice

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 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.

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 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

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The Functions of Management
• The five managerial functions
around which managerial
knowledge are organized are:
planning, organizing, staffing,
leading, and controlling

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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

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 Time Spent in Carrying Out
Managerial Functions

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 .
Managerial Skills and the
Organizational Hierarchy
The four skills for administrators are:
• technical,
• human,
• conceptual, and
• design skills

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 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
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 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

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 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

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. Science, Theory, Practice
 Definition of Productivity
• Productivity is 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
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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
Operational‑Management Theory
• Authority and responsibility. authority is a
combination of official‑factors 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
short‑circuited 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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. Science, Theory, Practice
 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
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 Recent Contributors to Management
Thought
• Peter F. Drucker
• Keith Davis
• Edwards Deming
• Joseph M. Juran
• Peter Laurence
• William Ouchi
• Thomas Peters and Robert Waterman
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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,

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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 7‑S framework,
(13) the total quality management approach,
(14) the management process, or operational,
approach.
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 The Managerial Roles Approach
(Mintzberg)
• 3 Interpersonal roles
• 3 Informational roles
• 4 Decision roles

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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 job--what
managers do
• It tries to integrate the concepts,
principles, and techniques that underlie
the task of managing

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 A Basic Input-Output Model

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. Science, Theory, Practice
 The Five Managerial Functions

• Planning
• Organizing
• Staffing
• Leading
• Controlling

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 Definition of Planning
• Planning involves selecting missions
and objectives and the actions to
achieve them; it 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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. Science, Theory, Practice
 Definition of Controlling
• Controlling is measuring and correcting
individual and organizational
performance to ensure that events
conform to plans

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. Science, Theory, Practice
The Systems Model of
Management and This
Book

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