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The Management Environment
Module 1
LIS 580: Spring 2006
Instructor- Michael Crandall
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July 21, 2005 LIS580- Spring 2006 2
Roadmap
• Why do we care?
• What do managers do?
• Where did management come from?
• What kinds of management are there?
• What’s happening today?
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July 21, 2005 LIS580- Spring 2006 3
Why Do We Care?
• “… modern society has become a society of organizations… In a society of organizations, managing becomes a social function and management the constitutive, the determining, the differential organ of society.”
Drucker, 1986
• In other words, you’re in it whether you like it or not, so better to understand how it works in order to use it to your advantage
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July 21, 2005 LIS580- Spring 2006 4
Organization Defined
• Organization– A group of people with formally assigned
roles who work together to achieve the stated goals of the group.
– Characteristics:• Common purpose/goals• Organizational structure
G.Dessler, 2003
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Management Defined
• Manager– A person who plans, organizes, leads, and controls
the work of others so that the organization achieves its goals.
• Is responsible for contribution.• Gets things done through the efforts of other people.• Is skilled at the management process.
• Management Process– Refers to the manager’s four basic functions of
planning, organizing, leading, and controlling.
G.Dessler, 2003
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July 21, 2005 LIS580- Spring 2006 6
Mintzberg’s Managerial Roles
• Figurehead
• Leader
• Liaison
• Spokesperson
• Negotiator
G.Dessler, 2003
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July 21, 2005 LIS580- Spring 2006 7
The Manager as Innovator
• The Entrepreneurial Process– Getting employees to think of themselves as
entrepreneurs.
• The Competence-Building Process– Working hard to create an environment that lets
employees really take charge.
• The Renewal Process– Guarding against complacency by encouraging
employees to question why they do things as they do—and if they might do them differently.
G.Dessler, 2003
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July 21, 2005 LIS580- Spring 2006 8
Types of Managers
FIGURE 1–1
G.Dessler, 2003
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July 21, 2005 LIS580- Spring 2006 9
The Managerial Skills
• Technical Skills– The need to know how to plan, organize, lead, and
control.
• Interpersonal Skills– An understanding of human behavior and group
processes, and the feelings, attitudes, and motives of others, and ability to communicate clearly and persuasively.
• Conceptual Skills– Good judgment, creativity, and the ability to see
the “big picture” when confronted with information.G.Dessler, 2003
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The Foundations Of Modern Management
• The Classical and Scientific School– Frederick Winslow Taylor and Scientific
Management1. The “one best way”
2. Scientific selection of personnel
3. Financial incentives
4. Functional foremanship
G.Dessler, 2003
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The Foundations Of Modern Management (cont’d)
• The Classical and Scientific School (cont’d)– Frank and Lillian Gilbreth and Motion Study
• Analyzed physical motion and work processes to improve worker efficiency.
– Henri Fayol and the Principles of Management• Defined the functions of management• Published “General and Industrial Management”• Advocated “chain of command”
G.Dessler, 2003
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The Foundations Of Modern Management (cont’d)
• The Classical and Scientific School (cont’d)– Max Weber and the Bureaucracy
• A well-defined hierarchy of authority• A clear division of work• A system of rules covering the rights and duties of
position incumbents• A system of procedures for dealing with the work
situation• Impersonality of interpersonal relationships• Selection for employment, and promotion based on
technical competence
G.Dessler, 2003
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The Foundations Of Modern Management (cont’d)
• The Behavioral School– The Hawthorne Studies
• Researchers found that it was the social situations of the workers, not just the working conditions, that influenced behavior at work.
– The Human Relations Movement• Emphasized that workers were not just “givens”
in the system. Workers have needs and desires that organizations have to accommodate.
G.Dessler, 2003
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July 21, 2005 LIS580- Spring 2006 14
Douglas McGregor: Theory X and Theory Y
• Theory X– Most people dislike work and responsibility
and prefer to be directed.– They are motivated not by the desire to do
a good job, but simply by financial incentives.
– Most people must be closely supervised, controlled, and coerced into achieving organizational objectives.
G.Dessler, 2003
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July 21, 2005 LIS580- Spring 2006 15
Douglas McGregor: Theory X and Theory Y (cont’d)
• Theory Y– People wanted to work hard.– People could enjoy work.– People could exercise substantial self-
control.– Managers could trust employees if
managers treated them right.
G.Dessler, 2003
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The Foundations Of Modern Management (cont’d)
• The Behavioral School (cont’d)– Rensis Likert and the Employee-Centered
Organization• Less effective organizations have a “job-
centered” focus: specialized jobs, emphasis on efficiency, and close supervision of workers.
• Effective “employee-centered” organizations build effective work groups with high performance goals.”
• Participation is an important approach employed by high-producing managers.
G.Dessler, 2003
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Bridging the Eras: The Administrative School
• Chester Barnard’s “Zone of Indifference”– A range of orders that a worker will willingly accept
without consciously questioning their legitimacy.• Managers have to provide sufficient inducements (and
not just financial ones) to make each employee’s zone of indifference wider.
• Herbert Simon and Managerial Influence– Use the classicists’ command and control
approach.• Foster employee self-control by providing better training,
encouraging participative leadership, and developing commitment and loyalty.
G.Dessler, 2003
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The Quantitative/Management Science School
• The Management Science Approach – Operations Research/ Management Science
• Seeks optimal solutions to management problems through research and the use of scientific analysis and tools.
– The Systems Approach• The view that an organization exists as a set of
interrelated subsystems that all contribute internally to the organization’s purpose and success while interacting with the organization’s external environment.
G.Dessler, 2003
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July 21, 2005 LIS580- Spring 2006 19
The Situational/Contingency School
• Contingency View of Management.– The organization and how its managers
should manage it are contingent on the company’s environment and on technology.
– Tom Burns and G. M. Stalker• Mechanistic organizations• Organic organizations
G.Dessler, 2003
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Kurtz, C. F.; Snowden, D. J. “The new dynamics of strategy: Sense-making in a complex and complicated world”. IBM Systems Management Journal. Volume 42, Number 3, 2003. http://www.research.ibm.com/journal/sj/423/kurtz.html
Multi-Ontology Sense Making
• David Snowden proposes that we look at the problem through multiple lenses
• Clearly more complex space than most management systems take into account
From Pollard, D. How to Save the World. March 24, 2005. http://blogs.salon.com/0002007/2005/03/24.html
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July 21, 2005 LIS580- Spring 2006 21
Fundamental Changes Facing Managers
FIGURE 1–2
G.Dessler, 2003
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July 21, 2005 LIS580- Spring 2006 22
Two Books to Read
• Reich, Robert B. The Work of Nations: Preparing Ourselves for 21st Century Capitalism. Vintage, 1992. http://www.amazon.com/exec/obidos/tg/detail/-/0679736158
• Friedman, Thomas L. The World Is Flat: A Brief History of the Twenty-first Century. Farrar, Straus and Giroux , 2005.
http://www.amazon.com/exec/obidos/tg/detail/-/0374292884