griffin ppt01

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Copyright 2005 by Houghton Mifflin Company. All rights reserved. 11

Chapter Outline

An Introduction to Management Kinds of Managers

Basic Management Functions

Fundamental Management Skills

The Evolution of Management

Classical Management Perspective Scientific Management & Administrative Theory

The Behavioral Management Perspective

Human Relations and Human Resources Management

The Quantitative Management Perspective

Contemporary Management Thought The Systems Perspective

The Contingency Perspective

Contemporary Management Challenges and Opportunities


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Management

A form of work that involves coordinating an organizationshuman, financial, physical and information resourcestoward accomplishing organizational objectives.

Attainment of organizational goals in an effective andefficient manner through planning, organizing, leading andcontrolling organizational resources.

NOTE THESE CHARACTERISTICS:Goal-driven

Activity is effective and efficient

Uses the four managerial functions


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What is Management?

A set of activitiesplanning and decision making, organizing, leading, andcontrolling

directed at an organizations resources

human, financial, physical, and information

with the aim of achieving organizational goalsin an efficient and effectivemanner.


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Efficiencyversus

Effectiveness

Efficiency:Operating insuch a waythat resourcesare not wasted

Effectiveness:Doing the right

things in theright way at

the right times

SuccessfulManagement

Source: Adapted from Van Fleet, David D., Contemporary Management, Second Edition.

Copyright 1991 by Houghton Mifflin Company. Used with permission.


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What is a Manager?

Someone whose primary responsibility is tocarry out the management process.

Someone who plans and makes decisions,organizes, leads, and controls

human, financial, physical,and information resources.


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Figure 1.1Kinds of Managers by Level and Area


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Kinds of Managers by Level

Top ManagersThe relatively small group of executives who manage

the organizations overall goals, strategy, and

operating policies.

Middle ManagersLargest group of managers in organizations

Implement top managements policies and plans.

Supervise and coordinate lower-level managers activities.

First-Line ManagersManagers who supervise and coordinate the activities

of operating employees.



Examples of Managers by Area

Marketing Managers

Work in areas related to getting consumers and clients to buy theorganizations products or services.

Financial Managers Deal primarily with an organizations financial resources.

Operations Managers Concerned with creating and managing the systems that create

organizations products and services

Human Resource Managers Involved in planning, recruiting and selection, training and

development, designing compensation and benefit systems,

formulating performance appraisal systems.

Administrative Managers Serve as generalists in functional areas and are not associated

with any particular management specialty.



Management in Organizations

Inputs from the environment

Human resources

Financial resources

Physical resources

Information resources

Planning

and decision

making

Leading

Organizing

Controlling

Goals attained

Efficiently

Effectively



The Management Process



The Functions of Management

PlanningSetting an organizations goals and selecting a course

of action to achieve them.

Organizing

Determining how activities and resources are grouped.

Leading

Getting organizational members to work together toadvance the interests of the organization.

Controlling

Monitoring organizational progress towards goals.



Planning and Organizing Involve

Planning Environmental scanning and analysis

Developing a vision of the future

Setting long-term organizational objectives

Developing organizational and competitive strategies

Organizing

Defining tasks and duties

Grouping positions into effective structures (departments)

Clarifying authority, responsibility, and reporting relationships Allocating scarce resources (financial, human, physical)

Staffing positions with qualified personnel



Leading and Controlling Involve

LeadingEffective communicationInspiring others to do their best

Motivation and rewards

Trust and assurance

ControllingClear standards

Monitoring progress and resultsKnowing when and how to intervene

Correcting deviations successfully



Skills and theManager

FundamentalManagement

Skills

Technical Skills

Interpersonal Skills

Conceptual Skills

Diagnostic Skills

Communication Skills

Decision-Making Skills

Time-Management Skills



Fundamental Management Skills

TechnicalSkills necessary to accomplish or understand the

specific kind of work being done in an organization.

Interpersonal

The ability to communicate with, understand, andmotivate both individuals and groups.

Conceptual

The managers ability to think in the abstract and to

see the big picture. To perceive how all the parts fit

together.



3 Primary Managerial Skills (KATZ)

Technical skillsFOCUS IS ON WHAT IS DONE

Specialized knowledge and proficiency

Analytical ability

Works with things, tools and techniques

Interpersonalskills FOCUS IS ON HOW SOMETHING IS DONEWorks with and through people

Effective as a group/team member

Motivates, communicates, & resolves conflicts

Conceptual skills FOCUS IS ON WHY SOMETHING IS DONESees the big picture (how the parts fit together)

Understands the corporation as a whole

Future-orientedthinks strategically



Fundamental Management Skills (contd)

Diagnostic The managers ability to visualize the most appropriate response

to a situation.

Communication The managers abilities both to convey ideas and information

effectively to others and to receive ideas and informationeffectively from others.

Decision-Making The managers ability to recognize and define problems and

opportunities correctly and then to select an appropriate courseof action to solve the problems and capitalize on opportunities.

Time-Management The managers ability to prioritize work, to work efficiently, and to

delegate appropriately.



Management Skill Mixes at DifferentOrganizational Levels



Managerial Activities MINTZBERG

Characterized by variety, fragmentation, and brevity Little time for quiet reflection

Crises are interspersed with trivial events

Must be able to shift gears quickly

Managers perform a great deal of work at an unrelenting

pace.

In one day Processed 36 memos, letters and notes

Attended 8 meetings

Got 11 phone calls

Met with some very unhappy customers

Refereed two internal managerial disputes

Spent an average of 9 minutes on each task during the day



Key Managerial Roles (Mintzberg)

Key ManagementRoles

InterpersonalRoles

DecisionalRoles

InformationalRoles

1. Figurehead

2. Leader3. Liaison

1. Monitor

2. Disseminator3. Spokesperson

1. Entrepreneur

(Innovator)2. Disturbance

handler3. Resource

Allocator4. Negotiator



Managerial Success Factors

Personal FactorsAbilities and skillsMotivation

Personality

Situational FactorsNature of the work and environment

Relationships with subordinates and supervisors

Abilities of subordinates

Actions TakenAppropriate for the situation?

LuckBeing in the right place at the right time?


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The Importance of Theory

Most managers develop theories about how to run the organization

Management Models represents the real world and how it functions

Provides a framework for organizing knowledge & a blueprint for action

Helps us organize our knowledge

Tells us what to pay attention to and what to ignore

Helps us to understand why events occur (causal relationships) Summarizes diverse findings and highlights relationships

Gives guidance about how to bring about positive change

Three Types of Management Theories

DESCRIPTIVE 80% +

PREDICTIVE ~ 15%

PRESCRIPTIVE < 5%



Theories are derived from

Observation and deduction Personal experience

On-site observation

Archival records

Survey research Interviews

Questionnaires

Experimentation

Laboratory

Field

Natural



Research Designs--Observation

POSITIVES Probe one situation in great detail

A search for clues/causes of problems

Discovers unexpected relationships

Rich in optional explanations

NEGATIVES Selective observation and limited recall

Researcher bias toward the dramatic

Data not easily quantified or recorded Generalizations are difficult (impossible) to make

Time consumingwhen do you stop observing/gathering info?



Research Designs--Surveys

POSITIVES

Collect data independent of the researcher

Questions/info gathered can be standardized

Allows quantitative analysis of findings

Sampling of populations is possible (census isnt necessary)

NEGATIVES

Objectivity of responses?

Issue of non-responses

Identifies symptoms, not cause-effect links Requires much expertise and time


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Research Designs--Experiments

POSITIVESCan infer cause-effect relationships

Can be repeatedchecked for consistency

NEGATIVESDifficult to control all the variables (precision)

Timing of observations and measurements

Impact of the experiment on work productivity

Subject bias and loss

Generalizability to other organizations


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History of Management Through the Ages

3000 B.C. 2500 B.C.

A Sumerians F Chinese

B Egyptians

C Babylonians

D Greeks

G Venetians

E Romans

2000 B.C. 1500 B.C. 1000 B.C. 500 B.C. A.D. 1500A.D.500 A.D. 1000

A Used written rules and regulations for governance

B Used management practices to construct pyramids

C Used extensive set of laws and policies for governance

D Used different governing systems for cities and state

E Used organized structure for communication and control

F Used extensive organization structure for governmentagencies and the arts

G Used organization design and planning concepts to

control the seas


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Early Management Pioneers

Robert Owen (17711858)British industrialist who was one of the first managersto recognize the importance of human resources andthe welfare of workers.

Charles Babbage (17921871)English mathematician who focused on creating

efficiencies of production through the division of labor,and the application of mathematics

to management problems.


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Classical Management Perspective

Scientific ManagementConcerned with improving the performance ofindividual workers (i.e., efficiency).

Grew out of the industrial revolutions labor shortage

at the beginning of the twentieth century. Administrative Management

A theory that focuses onmanaging the total organization

rather than individuals.


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Scientific Management

Frederick Taylor (18561915)Replaced old methods of how to do work with

scientifically-based work methods.

Eliminated soldiering, where employees deliberately worked

at a pace slower than their capabilities.

Believed in selecting, training, teaching, anddeveloping workers.

Used time studies of jobs, standards planning,

exception rule of management, slide-rules, instructioncards, and piece-work pay systems to control andmotivate employees.


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Steps in Scientific Management


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Frederick Taylor

Work Experiments

Midvale Steel

Simonds Rolling Machine Co.

Bethlehem Steel

Pig Iron

Shoveling

Contributions

Time Study

Standards for Work

Job Specialization

Managerial Planning and Control

Worker Selection and Training

Incentives


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Others in Scientific Management

Henry GanttGantt Charts

Sliding Incentives for Workers

Incentives for Supervisors

Frank & Lillian Gilbreth

Motion Studies (therbligs)

Fatigue Reduction

Suggestion Systems


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Summary of Scientific Management

Assumptions

Productivity is a primary workplace problem

Managers should plan and direct the work

Individuals are economically motivated

Contributions

Scientific or systematic study of work (time and motion) Division of laborManagers vs workers

Setting of work standards (and job descriptions)

Careful selection and training of workers

Use of Incentives

Limitations

Social needs of workers overlooked

Many studies werent very scientific

Loss of self-control alienated workers

Group dynamics were ignored


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Administrative Management Theory

Focuses on managing the whole organizationrather than individuals

Henri Fayol (18411925)

Was first to identify the specific management functions ofplanning, organizing, leading, and controlling.

Lyndall Urwick (18911983)

Integrated the work of previous management theorists.

Max Weber (18641920) His theory of bureaucracy is based on a rational set of

guidelines for structuring organizations.


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Administrative Theory Henry Fayol

Functions of Management

Planning

Organizing

Commanding

Coordinating

Controlling

Principles of Management

Division of Labor (specialization)

Scalar Chain of Command (hierarchy of authority) Unity of Command (only one superior for each worker)

Span of Control (number of subordinates supervised)


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The Ideal Bureaucracy Max Weber

Division of Labor Horizontal specialization

Hierarchy of Authority Vertical specialization

Rules and Procedures

Enforced Technical Competence

Selection and promotion

Impersonal Treatment No favoritism

Centralized Decision-Making Exceptions controlled from the top

Formalization Documentation


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Summary of Administrative Theory

Assumptions

There is an ideal way to structure the organization and administerthe management processes necessary for organizational success

Management skills are generalizable

Contributions

Functions and Principles of management Ideal Bureaucracy

Raised awareness of basic management problems likely to befound in any organization

Limitations

Stressed a one-best-way of organizing and managing

Theories were based on intuition and observation rather thanempirical investigation

Principles are not applicable to organizations which exist inturbulent environments


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The Hawthorne Studies (19271932)

Conducted by Elton Mayo and Fritz Roethlisberger atWestern Electric

Illumination studies Relay Assembly 1

Relay Assembly 2

Incentive Studies Mica-splitting

Bank Wiring Room

Interview program

Discoveries at Hawthorne

Hawthorne EffectCatharsis

Informal Group Influence

H R l ti M t Vi


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Human Relations Management Views

Assumptions Workers are motivated by social relationships and needs

Satisfied workers are the most productive workers

Management needs strong social skills to be successful

Contributions Grew out of the Hawthorne studies

The Hawthorne Effect and Catharsis attention given to workersimpacts their behavior

Influence of the informal group

Emphasized worker needs and motivation

Limitations Happy, satisfied workers arent necessarily productive workers

Economics (money, wages) DOES affect work activity

Boring work isnt less so with friendly supervisor motivation problem

Suspicion that supervisor interest isnt genuine is this manipulation?

Should business be responsible for meeting ALL human needs on thejob?


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The Transition to Human ResourceManagement

Abraham Maslow (1943)

Advanced a theory that employees are motivated by ahierarchy of needs that they seek to satisfy.

Douglas McGregor (1964)

Proposed Theory X and Theory Y concepts ofmanagerial beliefs about people and work.

Frederick Herzberg (1965)Proposed the Two-Factor Theory of motivation

(hygienes and intrinsic factors) which implies that jobenrichment is important.


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Theory X and Theory Y

Theory X Assumptions

People do not like work and try to avoid it, so managers have tocontrol, direct, coerce, and threaten employees to get them towork toward organizational goals.

People prefer to be directed, to avoid responsibility, and to wantsecurity; they have little ambition.

Theory Y Assumptions People do not dislike work; work is a natural part of their lives.

People are internally motivated to reach objectives to which theyare committed. People can be innovative in solving problems.

People are committed to goals to the degree that they receive

rewards when they reach their objectives. People both seek and accept responsibility under favorable

conditions.

People are bright, but under most organizational conditions theirpotentials are underutilized.


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Emergence of Organizational Behavior

A contemporary field focusing on behavioralperspectives on management.Draws on psychology, sociology, anthropology,

economics, and medicine.

Important topics in organizational behaviorresearch:Job satisfaction and job stress

Motivation and leadership

Group dynamics and organizational politics

Interpersonal conflict

The structure and design of organizations

Human Resource Management Views


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Human Resource Management Views

Assumptions

Interesting work motivates intrinsically Workers are trustworthygive them responsibility

The Managers job is to challenge workers to develop theirtalents

Contributions

Theory X and Y Participative decision-making and management

Job Enrichment and Job Redesign

Management by Objectives

More rigorously-tested theories

Limitations Not everyone wants a challenging job

Complexity of individuals makes behavior difficult to predict.

Contemporary research findings are not often communicated topracticing managers in an understandable form.


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Quantitative Management Perspective

Quantitative Management

Emerged during World War II to help the Allied forcesmanage logistical problems.

Focuses on decision making, economic effectiveness,mathematical models, and the use of computers tosolve quantitative problems.


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Quantitative Management, Contd

Management Science

Focuses on the development of representativemathematical models to assist with decisions.

Operations ManagementPractical application of management

science to efficiently manage theproduction and distribution

of products and services.

Quality Management

Statistical improvement models


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Quantitative Management

Contributions Developed sophisticated quantitative techniques to assist in

decision making.

Application of models has increased our awarenessand understanding of complex processes and situations.

Has been useful in the planning and controlling processes.

Limitations

Quantitative management cannot fully explain or predict thebehavior of people in organizations.

Mathematical sophistication may come at the expense of othermanagerial skills.

Quantitative models may require unrealistic or unfoundedassumptions, limiting their general applicability.


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The Systems Perspective of Organizations


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Systems Perspectives for Managers

A system is an interrelated set of elements functioningas a whole

Open system

An organizational system that interacts with its environment.

Closed system

An organizational system that does not interact with itsenvironment.

Subsystems

A system within another system. Their importance is due to theirinterdependence on each other within the organization.


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Synergy and Entropy

Synergy

Subsystems are more successful working together in acooperative and coordinated fashion than working alone.

The whole system (subsystems working together as one system)is more productive and efficient than the sum of its parts.

Entropy A normal process in which an organizational system declines due

to failing to adjust to change in its environment

Entropy can be avoided andthe organization re-energized

through organizational changeand renewal.


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Universal Perspectives

Include the classical, behavioral, and quantitativeapproaches.

An attempt to identify the one best way to manage

organizations.


Suggests that each organization is unique.

The appropriate managerial behavior for

managing an organization depends(is contingent) on the currentsituation in the organization.


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The Contingency Perspective (contd)

Problem or Situation

Solution orAction B

Solution orAction A

Solution orAction C

ImportantContingencies

Source: Van Fleet, David D., Contemporary Management, Second Edition.Copyright 1991 by Houghton Mifflin Company. Used with permission.


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An Integrative Frameworkof Management Perspectives

Systems Approach Recognition of internal

interdependencies Recognition of

environmental influences

Contingency Perspective Recognition of the situational

nature of management Response to particular

characteristics of situation

ClassicalManagementPerspectivesMethods for

enhancingefficiency and

facilitating planning,organizing, andcontrolling

BehavioralManagementPerspectivesInsights for moti-

vating performanceand understanding

individual behavior,groups and teams,and leadership

QuantitativeManagementPerspectivesTechniques for

improving decisionmaking, resource

allocation, andoperations

Effective and efficient management


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The Emergence of Modern ManagementPerspectives

How management theory and practice has evolved over time

Contemporary


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ContemporaryManagement Issues and Challenges

An increasingly diverse and globalized workforce

The need to create challenging, motivating, and flexible workenvironments

Acute labor shortages in high-technology job sectors and anoversupply of less-skilled labor

The effects of information technology on how people work

The complex array of new ways of structuring organizations

Increasing globalization of product and service markets

The renewed importance of ethics and social responsibility The use of quality as the basis for competition

The shift to a predominately service-based economy

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