CHAPTER OUTLINE

1.1 Definition of Management and Organization

1.2 Measuring Managerial Performance
1.3 Management Process, Functions and Activities
1.4 Managerial Levels, Skills and Roles
1.5 Evolutions of Management Thought
LEARNING OBJECTIVES
1. Describe the terms management and leadership, as well as the relationship
between the two concepts.
2. Define the concept of management within an organizational context and as a
process.
3. Identify the roles played by managers.
4. Discuss the scope of responsibilities of functional and general managers.
5. Describe the three levels of managers in terms of the skills they need and the
activities in which they are involved.
 WHAT IS AN ORGANIZATION?

An organization is a group of
individuals who work together
toward common goals.

An organization is a systematic
arrangement of people brought
together to accomplish some specific
purpose.
WHAT DO ALL ORGANIZATIONS
HAVE IN COMMON?

A distinct goal and purpose

Comprises people working together to accomplish certain objectives

A systematic structure

An aim to serve society

MANAGEMENT: THE CLASSIC
DEFINITION
The art of getting things done
through people.
– Mary Parker Follet
MANAGEMENT: A BROADER
DEFINITION

The process of administering and

coordinating resources effectively,
efficiently, and in an effort to achieve
the goals of the organization.
EFFECTIVENESS VS.
EFFICIENCY
Effectiveness
Effectiveness is achieved when the organization pursues
appropriate goals. This means “doing the right thing.”
Efficiency
Efficiency is achieved by using the fewest inputs (e.g., people and
money) to generate a given output. This means “doing things
right.”
The end result of effective and efficient management is
organizational success.
THE FOUR
FUNCTIONS OF MANAGEMENT
SLIDE 1 OF 4
PLANNING AND ORGANIZING
Planning
 Setting goals and defining the actions necessary to
achieve those goals.
Organizing
 The process of determining the tasks to be done, who will
do them, and how those tasks will be managed and
coordinated.
LEADING
The capacity to lead the members of work groups
toward the accomplishment of organizational goals.
Requires a number of skill sets including:
 Understanding individual/group behavior dynamics
 The ability to motivate employees
 Be effective communicators
 Able to envision future and share that vision
 3C’s Leadership Model (Confident, Connection and
Credibility)
CONTROLLING
Monitoring the performance of the organization and the
progress in implementing strategic and operational plans.
Identifying deviations between planned and actual results.
Taking corrective action
Ensuring that the organization is moving toward the
achievement of its goals.
MANAGERS
Managers are the people who plan, organize, lead, and control
the activities of the organization so that its goals can be
achieved.
LEVELS OF MANAGEMENT
Top-level Managers

Middle Managers

First-line Managers

Operational Employees
Example Levels of Management
Establish objectives, policy &
strategy, make long-term
decisions. E.g.: CEO, President

Interpret top management

directives into operating plans,
make implementation decision.
E.g.: Marketing Manager, H.R.
Manager

Direct & support work on non-

managerial personnel, make
short-term operating decision.
E.g.: Supervisor
MANAGEMENT SKILLS
Technical Skills
 The ability to utilize the knowledge of tools, techniques,
and procedures that are specific to a particular field.
Human Skills
 The ability to work effectively with one’s own work
group as well as others within the organization.
Conceptual Skills
 The ability to process a tremendous amount of
information about the internal/external environment of
the organization and determine implications of that
information.
SKILLS NEEDED AT
DIFFERENT LEVELS OF
MANAGEMENT
First-line Middle Top-Level
Management Management Management

Conceptual Conceptual
Conceptual
Human
Human
Human
Technical
Technical
Technical
MINTZBERG’S MANAGERIAL
ROLES SLIDE 1 OFInterpersonal
3
Roles
 The manager’s responsibility for managing
relationships with organizational members
and other constituents:
 Figurehead- A department head performing
ceremonial duties like greeting visitors, signing
legal documents.
 Leader- A person who is responsible for hiring,
training & motivating subordinates in the
organization.
 Liaison- A person who perform & interacts
with other people outside the organization.
MINTZBERG’S MANAGERIAL
ROLES SLIDE 2 OF 3
Informational Roles
 The manager’s responsibility for
gathering and disseminating information
to the stakeholders of the organization:
 Monitor- Manager continuously seeks
information that can be used to advantage.
 Disseminator- Information received
internally or externally will be transmitted to
the subordinates.
 Spokesperson- Information will be
transmitted to people outside the organization
or unit.
MINTZBERG’S MANAGERIAL
ROLES SLIDE 3 OF 3Decisional Roles
 The manager’s responsibility for processing
information and reaching conclusions:
 Entrepreneur- Manager tries to improve the unit &
initiate the changes.
 Disturbance handler- Manager is responsible for
corrective actions when the organization faces important,
unexpected disturbances.
 Resource allocator- Manager is responsible in
allocating the resources of the organization.
 Negotiator- Manager is responsible for representing
the organization at major negotiations.
SCOPE OF RESPONSIBILITY
Functional Managers
 Managers who are responsible for managing a work unit that is grouped
based on the function served.
General Managers
 Managers who are responsible for managing several different departments
that are responsible for different tasks.
FUNCTIONAL MANAGER
Chief Executive
General Parts Inc.

VP of VP of Finance
Production

Plant Service Account Payroll

Manager Manager Manager Manager

A functional manager is a manager responsible

for a work group segmented by function.
GENERAL MANAGER
General Manager
Supermarket, Inc.

Produce Grocery Bakery

Manager Manager Manager

A general manager is a manager

responsible for several different work
groups segmented by task.
TEST YOUR KNOWLEDGE…..
EVOLUTION OF MANAGEMENT
THOUGHT
 Classical Approach
 Scientific Approach
 Contingency Approach
LEARNING OBJECTIVES
1. Describe the major influences on the

development of management
thought.
2. Identify the five major perspectives of

management thought that have

evolved

over the years.

ENVIRONMENTAL FACTORS
INFLUENCING MANAGEMENT THOUGHT
SLIDE 1 OF 2

Economic Influences
Relate to the availability, production, and
distribution of resources within a society.
Social Influences
Relate to the aspects of a culture that influence
interpersonal relationships.
Political Influences
Relate to the impact of political institutions on
individuals and organizations.
ENVIRONMENTAL FACTORS
INFLUENCING MANAGEMENT THOUGHT
SLIDE 2 OF 2

Technological Influences
 Relate to the advances and refinements in any of the
devices that are used in conjunction with conducting
business.
Global Influences
 Relate to the pressures to improve quality, productivity,
and costs as organizations attempt to compete in the
worldwide marketplace.
SCHOOLS OF MANAGEMENT
THOUGHT
Classical Perspective

Behavioral Perspective

Quantitative Perspective

Systems Perspective

Contingency Perspective
CHRONOLOGICAL
DEVELOPMENT OF
MANAGEMENT THOUGHT
CLASSICAL PERSPECTIVE
Tends to focus on
Scientific the productivity of
Management the individual
worker
CLASSICAL PERSPECTIVE
Tends to focus on
Scientific the functions of
Management management

Administrative
Management
CLASSICAL PERSPECTIVE
Tends to focus on the
Scientific overall organizational
Management system

Administrative Bureaucratic
Management Management
SCIENTIFIC MANAGEMENT:
FREDERICK W. TAYLOR (1856-
1915)
Father of “Scientific Management.
In order to improve productivity, must improve poor
management practices.
Taylor attempted to define “the one best way” to perform
every task through systematic study and other scientific
methods.
Three areas of focus
 Task Performance
 Supervision
 Motivation
TASK PERFORMANCE
Scientific management incorporates several basic
expectations of management, including:
 Development of work standards
 Selection of workers
 Training of workers
 Support of workers
SUPERVISION
Taylor felt that a single supervisor could not
be an expert at all tasks.

As a result, each first-level supervisor should

be responsible only workers who perform a
common function familiar to the supervisor.

This became known as “Functional

Foremanship.”
MOTIVATION
Taylor believed money was the way to motivate
workers to their fullest capabilities.

He advocated a piecework system in which

worker’s pay was tied to their output.
 Workers who med a standard level of production were paid a standard
wage rate.
 Workers whose production exceeded the standard were paid at a higher
rate for all of their production output.
SCIENTIFIC MANAGEMENT:
FRANK GILBRETH
Specialized in time and motion studies to
determine the most efficient way to perform
tasks.

Used the new medium of motion pictures to

examine the work of bricklayers.

Identified 17 work elements (such as lifting

and grasping) and called them therbligs.
SCIENTIFIC MANAGEMENT:
LILLIAN GILBRETH
A strong proponent of better working conditions as a
means of improving efficiency and productivity.
 She favored standard days with scheduled lunch breaks and rest
periods for workers.
 She also strived for removal of unsafe working conditions and
the abolition of child labor.
ADMINISTRATIVE
MANAGEMENT: HENRI
Henri Fayol (1841-1925)was the firstFAYOL
to
recognize that successful managers had to
understand the basic managerial functions.
Developed a set of 14 general principles of
management.
Fayol’s managerial functions of planning,
leading, organizing and controlling are
routinely used in modern organizations.
CLASSICAL PERSPECTIVE
Tends to focus on the
Scientific overall organizational
Management system

Administrative Bureaucratic
Management Management
BUREAUCRATIC
MANAGEMENT
Focuses on the overall organizational system.
Bureaucratic management is based upon:
 Firm rules
 Policies and procedures
 A fixed hierarchy
 A clear division of labor
BUREAUCRATIC
MANAGEMENT: MAX WEBER
Max Weber (1864-1920) - a German sociologist and historian, is
most closely associated with bureaucratic management.
 Envisioned a system of management that would be based upon
impersonal and rational behavior.
 Conceptualized the approach to management referred to as
bureaucracy.
 Division of labor
 Hierarchy of authority
 Rules and procedures
 Impersonality
 Employee selection and promotion
WEBER’S FORMS OF
AUTHORITY
Traditional authority
 Subordinate obedience based upon custom or tradition (i.e., kings,
queens, chiefs).
Charismatic authority
 Subordinates voluntarily comply with a leader because of his or
her special personal qualities or abilities (i.e., Martin Luther King,
Gandhi).
Rational-legal authority
 Subordinate obedience based upon the position held by superiors
within the organization (i.e., police officers, executives,
supervisors).
SCHOOLS OF MANAGEMENT
THOUGHT
Classical Perspective

Contingency Perspective
CONTINGENCY PERSPECTIVE
A view that proposes that there is no one best
approach to management for all situations.
Asserts that managers are responsible for
determining which managerial approach is
likely to be most effective in a given situation.
This requires managers to identify the key
contingencies in a given situation.
EXAMPLE OF THE
CONTINGENCY PERSPECTIVE
Joan Woodward discovered that a particular
management style is affected by the
organization’s technology.
Woodward identified and described three
different types of technology:
 Small-batch technology
 Mass-production technology
 Continuous-process technology
PRODUCTION TECHNOLOGY EXAMPLE
Custom fabrication
Small-batch machine shop, neon
technology sign manufacturer,
trophy shop
Car manufacturer, hair
Mass-production dryer manufacturer,
technology pencil manufacturer
Oil refinery, flour
Continuous-process mill, soft drink bottler,
technology chemical processor
BLENDING
COMPONENTS
INTO A
CONTINGENCY
PERSPECTIVE
 INFORMATION TECHNOLOGY
AND MANAGEMENT STYLE

In many cases, information technology can facilitate the use

of a particular management style.

Quantitative & Systems

Perspectives Classical Perspective

Facilitated by advanced Facilitated by modern

computers communications
equipment
FUTURE ISSUES
INFLUENCING MANAGEMENT
THOUGHT
Diversity

Globalization

Quality