F U N D A M E N T A L O F M A N A G E M E N T

INTRODUCTION TO MANAGEMENT

Chapter 1
Understanding The Manager’s Job

1
© By Ricky W. Griffin - Ninth Edition - Part I MBA Trần Tấn Hoan
 After studying this chapter, you should be able to:
Learning Objectives • Define management, describe the kinds of managers found in
organizations, identify and explain the four basic management
functions, describe the fundamental management skills, and comment
on management as a science and art.

• Justify the importance of history and theory to managers, and explain

the evolution of management through the classical, behavioral, and
quantitative perspectives.

• Identify and discuss key contemporary management perspectives

represented by the systems and contingency perspectives, and identify
the major challenges and opportunities faced by managers today.

2
 Discussion Starter |1|

Unlike most traditional managers, Netflix CEO, Reed Hastings does not have an office. He wanders around
headquarters, talking to people about their work and their ideas. Hastings continues to look for the “next big
thing.”
To watch a brief interview with Reed Hastings, visit CNN Money (shorturl.at/BEFUX).

What qualities and traits do you think are essential for

a manager to have in order to create a successful
business?

3
 An Introduction to Management

Organization
A group of people working together in a structured and coordinated fashion to achieve a set of goals

Management
A set of activities (including planning and decision making,
organizing, leading, and controlling) directed at
an organization’s resources (human, financial,
physical, and information) with the aim of achieving
organizational goals in an efficient and effective manner

4
 An Introduction to Management

Efficiently Effectively
Using resources wisely Making the right decisions and
in a cost-effective way successfully implementing them

5
 An Introduction to Management

Manager
Someone whose primary responsibility is to carry out the management process

6
FIGURE 1.1 Kinds of Managers by Level and Area
 Levels of Management

Top managers
• Executives who manage the overall organization
• Create the organization’s goals, overall strategy, and operating policies

Middle managers
• Implement the policies and plans developed by top managers
• Supervise and coordinate the activities of lower-level managers

First-line managers
• Supervise and coordinate the activities of operating employees
• Spend a large proportion of their time supervising the work of their
subordinates

7
 Managing in Different Areas of the Organization

Kinds of Managers by Area

CEO
Human Resources
Managers

Kinds of
Financial Administrative
Marketing Managers Specialist Financial Human Resources
Manager Managers Administrative
Managers Managers Managers
Operations
Managers Managers Managers
by Area

Operations Specialist
Managers Managers
Leader Leader Leader Leader Leader Leader Leader Leader

8
 FIGURE 1.2 The Management Process

9
 Fundamental Management Skills

TECHNICA INTERPERSON
L The abilityAL
to communicate with, understand, and
The skills necessary to accomplish or understand the motivate both individuals and groups
specific kind of work done in an organization

Fundamental
Management
CONCEPTUAL COMMUNICATION
The manager’s ability to think in the abstract
Skills The manager’s abilities both to effectively
convey ideas and information to others and to
effectively receive ideas and information from
others

DIAGNOSTIC TIME
TheMANAGEMENT
manager’s ability to prioritize work, to work
The manager’s ability to visualize the most
efficiently, and to delegate appropriately
appropriate response to a situation

DECISION MAKING
The manager’s ability to correctly recognize and define problems and opportunities
10 and to then select an appropriate course of action to solve problems and capitalize
on opportunities
 Fundamental Management Skills

Watch this video from Bloomberg in which CEOs identify what they believe to be one skill every leader needs:

11
 Discussion Starter |2|

Is the boss necessarily better than the employee?

12
1-1d The Science and the Art of Management

The Science of Management

• Assumes problems and issues can be approached using rational,
logical, objective, and systematic ways
• Requires technical, diagnostic, and decision-making skills

The Art of Management

• Requires a blend of intuition, experience, instinct, and personal
insights
• Relies heavily on conceptual, communication, interpersonal, and
time management skills
13
1-2a The Importance of Theory and History

Why Theory?
Provides a conceptual framework for organizing knowledge and providing a blueprint for
action

•Management theories are grounded in reality.

•Most managers develop and refine their own theories of how they should run their
organizations and manage the behavior of their employees.

Why History?

Stresses an awareness and understanding of historical developments in

management

• Understanding the historical context of management provides a sense of

heritage and can help managers avoid the mistakes of others.
14
 1-2b The Historical Context of Management

Charles Babbage (1792–1871)

Robert Owen (1771–1858)
Focused on efficiencies of production through division of labor and
Recognized the importance of an organization’s human
advocated the application of mathematics to management problems
resources and expressed concern for the personal welfare of
workers
15
1-2c The Classical Management Perspective

Classical management perspective

Consists of two distinct branches:
 Scientific management

• Concerned with improving the performance of individual workers

 Administrative management

• Focuses on managing the total organization

16
 Scientific Management Pioneers

Frederick W. Taylor (1856–1915)

Replaced old work methods with scientifically-based work methods

• Eliminated “soldiering,” where employees deliberately worked at a pace slower than their
capabilities

Studied and redesigned jobs, introduced rest periods to reduce fatigue, and implemented piecework
pay systems

17
FIGURE 1.3 Steps in Scientific Management
 Scientific Management Pioneers

Frank Gilbreth (1868–1924) and Lillian Gilbreth (1878–1972)

Both developed techniques and strategies for eliminating inefficiency.

• Frank reduced bricklaying movements, resulting in increased output of about 200 percent.

• Lillian made substantive contributions to the fields of industrial psychology and personnel
management.

18
 Administrative Management Theorists

Henri Fayol (1841–1925)

• Identified the specific management functions of planning, organizing, leading, and controlling

Lyndall Urwick (1891–1983)

• Integrated scientific management with the work of other administrative management theorists

Max Weber (1864–1920)

• His theory of bureaucracy is based on a rational set of guidelines for structuring organizations in the most efficient
manner.

19
 The Classical Management Perspective Today

Contributions Limitations

• Provides many management techniques • More appropriate for use in stable, simple
and approaches that are still relevant organizations rather than the changing and
today complex organizations of today

• Focused attention on management as a • Proposed universal guidelines that do not fit

meaningful field of study every organization

• Slighted the role of the individual in

organizations

20
 The Behavioral Management Perspective

Behavioral management perspective

• Emphasizes individual attitudes and behaviors and group processes

21
 Behavioral Management Advocates

Hugo Munsterberg (1863–1916)

• Advocated applying psychological concepts to employee selection and motivation

Mary Parker Follett (1868–1933)

• Recognized the importance of human behavior in the workplace

22
 The Hawthorne Studies

Conducted at Western Electric’s Hawthorne plant between 1927 and 1932

Illumination study

Lighting adjustments affected the productivity of both control and experimental groups of employees.

Group study

A piecework incentive pay plan caused workers to establish informal levels of individual output.
• Overproducing workers were labeled “rate busters.”

• Underproducing workers were considered “chiselers.”

Interview program

Confirmed the importance of human behavior in the workplace

23
 Discussion Starter |3|

What assumptions do the scientific management and administrative management perspectives make about
workers? To what extent are these assumptions still valid today?

24
 The Human Relations Movement

Human relations movement

• Grew out of the Hawthorne studies

• Proposed that workers respond primarily to the social context of work, including social conditioning, group norms, and
interpersonal dynamics

• Assumed that the manager’s concern for workers would lead to increased worker satisfaction and
improved worker performance

25
 The Human Relations Movement

Abraham Maslow (1908–1970)

Advanced a theory suggesting that employees are motivated by a hierarchy of needs that they seek to
satisfy

Douglas McGregor (1906–1964)

Proposed Theory X and Theory Y concepts of managerial beliefs about people and work
• Theory X

A pessimistic and negative view of workers consistent with the views of scientific
management
• Theory Y

A positive view of workers; it represents the assumptions that human relations advocates
26
make
 The Human Relations Movement

Table 1.1 Theory X and Theory Y

1. People do not like work and try to avoid it.
2. People do not like work, so managers have to control, direct, coerce, and threaten
Theory X
employees to get them to work toward organizational goals.
Assumptions
3. People prefer to be directed, to avoid responsibility, and to want security; they have little
ambition.

1. People do not naturally dislike work; work is a natural part of their lives.
2. People are internally motivated to reach objectives to which they are committed.
3. People are committed to goals to the degree that they receive personal rewards when they
Theory Y
reach their objectives.
Assumptions
4. People will both seek and accept responsibility under favorable conditions.
5. People have the capacity to be innovative in solving organizational problems.
6. People are bright, but under most organizational conditions their potential is underutilized.
27
 Contemporary Behavior Science in Management

Organizational behavior

• Contemporary field focusing on behavioral perspectives on management

• Draws on psychology, sociology, anthropology, economics, and medicine

• Takes a holistic view of behavior and addresses individual, group, and organization processes

28
 Contemporary Behavior Science in Management

Important organizational behavior topics:

• Job satisfaction
• Stress
• Motivation
• Leadership
• Group dynamics
• Organizational politics
• Interpersonal conflict
• The structure and design of organizations
29
 The Behavioral Management Perspective Today

Contributions Limitations

• The importance of behavioral process are • The complexity of individuals makes behavior
more likely to be recognized by managers. difficult to predict.

• Managers are more likely to view • It is not always accepted or understood by

employees as valuable resources instead of practicing managers.
mere tools.

30
1-2e The Quantitative Management Perspective

Quantitative management perspective

• Applies quantitative techniques to management
• Helped Allied forces manage logistical problems during World War II
• Focuses on decision making, cost-effectiveness, mathematical models, and use of
computers to solve quantitative problems

31
1-2e The Quantitative Management Perspective

There are two branches of the quantitative approach:

Management science
• Focuses specifically on the development of representative mathematical models
Operations management
• Concerned with helping the organization produce its products or services more efficiently

32
 The Quantitative Management Perspective Today

Contributions Limitations

• Provides managers with an abundance of • Cannot fully account for individual behaviors
decision-making tools and techniques and attitudes

• Increased understanding of overall • Competence needed many retard the

organizational processes development of other managerial skills

• Particularly useful in the areas of planning • Typically require a set of assumptions that
and controlling may not be realistic

33
1-3a The Systems Perspective

• System
An interrelated set of elements functioning as a whole

FIGURE 1.4 The Systems Perspective of Organizations

34
1-3a The Systems Perspective

• Open system
An organizational system that interacts with its environment.
• Closed system
A system that does not interact with its environment.
• Subsystems
A system within another system
• Synergy
Two or more subsystems working together to produce more than the total of what they might produce working alone
• Entropy
A normal process leading to system decline
• Break into small groups. Select an organization and diagram its inputs, transformation processes, outputs, and
feedback mechanisms.

35
1-3b The Contingency Perspective

Universal perspectives
• Include the classical, behavioral, and quantitative approaches
• Try to identify the “one best way” to manage organizations

Contingency perspective
• Suggests that appropriate managerial behavior in a given situation depends on, or is contingent on,
unique elements in a given situation

36
1-3c Contemporary Management Issues and Challenges

• Globalization of product and service markets

• Increased emphasis on ethics and social responsibility
• The use of quality as the basis for competition
• The shift to a predominately service-based economy
• Meeting the challenges of a recovering economy
• An increasingly diverse workforce
• Creating new organizational structures to provide challenging, motivating, and flexible work
environments
• The effects of new information technology on how work is done in organization

37
 EXPERIENTIAL EXERCISE: Johari Window

38