2. LEARNING OUTCOMES:
• Describe the difference between managers and operative
employees.
• Explain what is meant by the term management..
• Differentiate between efficiency and effectiveness,
• Describe the four primary processes of management.
• Classify the three levels of managers and identify the primary
responsibility of each group.
• Describe the value of studying management.
• Identify the Fourteen Principles of Management
3. Organizations
A s y s t e m a t i c a r r a n g e m e n t o f p e o p l e b r o u g h t
t o g e t h e r t o a c c o m p l i s h s o m e s p e c i f i c p u r p o s e ;
applies to all organizations – for profit as well as
not-for profit organizations.
Where managers work (manage)
5. People Differences
OPERATIVES
People who work directly on a job or task and
have no responsibility for overseeing the work of
others
MANAGERS
Individuals in an organization who directs the
activities of others
6. Top Level Management
Middle-Level Management
Lower-Level Management
Management Levels
They make decisions affecting the entirety of the
firm.
They are responsible for carrying out the goals set
by top management.
They are responsible for the daily management of
line workers the employees who produce the
product or offer the service.
7. Ø The process of getting things done, effectively and
efficiently, through and with other people
Ø Management is an art and science
Art
•Practical know how
•Technical skills
•Concrete results
•Creativity
•Personalized nature
Science
•Empirically Derived
•Critically tested
•General principles
•Cause and effect
relationship
•Universal applicability
MANAGEMENT Defined
8. Difference between Management and Administration
ADMINISTRATION
Ø Administration is concerned mainly with determining goals to be
achieved and policy working.
Ø Administration requires conceptual skills.
Ø Oriented more towards the external environment.
MANAGEMENT
Ø Management is concerned mainly with
implementation of policies.
Ø Management requires technical skills
Ø Oriented more towards the internal environment.
9. Efficiency and Effectiveness
EFFICIENCY
m e a n s d o i n g t h e t h i n g c o r r e c t l y ;
r e f e r s t o t h e r e l a t i o n s h i p b e t w e e n
i n p u t s a n d o u t p u t s ; s e e k s t o
m i n i m i z e r e s o u r c e c o s t s .
EFFECTIVENESS
m e a n s d o i n g t h e r i g h t t h i n g s ; g o a l
a t t a i n m e n t .
10. Management Process Activities
Includes defining goals,
establishing strategy, and
developing plans to coordinate
activities.
Includes motivating employees,
directing the activities of others,
s e l e c t i n g t h e m o s t e f f e c t i v e
c o m m u n i c a t i o n c h a n n e l , a n d
resolving conflicts.
Includes determining what tasks to be
done, who is to doo them, how the
tasks are to be grouped, who reports to
whom, and where decisions are to be
made.
The process of monitoring
performance, comparing it with
goals, and correcting any
significant deviations.
11. Is the Manager’s Job Universal?
Do managers manage differently based on where they are in the organization?
• Level in the organization
Is managing in a commercial enterprise different than managing in a non-
commercial organization?
• Profit versus not-for-profit
Does the size of an organization affect how managers function in the organization?
• Size of organization
Is management the same in all economic, cultural, social, and political systems?
• Management concepts and national borders
12. Distribution of Time per Activity by Organizational Level
First-Level Managers
10% - Controlling
15% - Planning
24% - Organizing
51% Leading
Middle Managers
13% - Controlling
18% - Planning
33% - Organizing
36% Leading
Top Managers
14% - Controlling
28% - Planning
36% - Organizing
22% Leading
Source: Adapted from T.A. Mahoney, T.H Jerdee,
and S.J. Carroll,”The Job(s) of Management”
13. Importance of Roles
ROLES PLAYED
BY MANAGERS
IN SMALL FIRMS
ROLES PLAYED
BY MANAGERS
IN LARGE FIRMS
High
Low
Moderate
Spokesperson
Entrepreneur
Figurehead
Leader
Disseminator
Resource Allocator
Liaison Monitor
Disturbance handler
Negotiator
Entrepreneur
14. Three Basic kinds of skills
TECHNICAL SKILL
Is the ability to use procedures, techniques and
knowledge of a specialized field. Eg. Surgeon, engineers,
accountants.
HUMAN SKILL
Is the ability to work with, understand, and
motivate other people as individual or in
groups.
CONCEPTUAL SKILL
Is the ability to coordinate and integrate the
organization goals and activities.
15. Specific Skills for Managers
• Behaviors related to a manager’s effectiveness
Controlling the organization's
environment and it’s resources
Organizing and coordinating.
Handling information
Providing for growth and
development
Motivating employees and handling
conflicts
Strategic problem solving
16. How does Management Relate To Other Disciplines?
SOCIOLOGY
PSYCHOLOGY
PHILOSOPHY
ANTHROPOLOGY
ECONOMICS
POLITICAL
SCIENCE
17. How Much Important Does The Marketplace Put on
Managers?
Ø Managerial compensation packages are one measure of the
value that organizations place on them.
Ø Management compensation reflects the market forces of
supply and demand.
v Management superstars, like superstar athletes in
professional sports, are wooed with signing bonuses, interest-
free loans, performance incentive packages, and guaranteed
contracts.
18. CONCEPTUAL SKILLS
General Skills for Managers
• A manager’s mental ability to
coordinate all of the organization’s
interests and activities
INTERPERSONAL
SKILLS
• A manager's ability to work with,
understand, mentor, and motivate
others, both individually and in
groups.
TECHNICAL SKILLS
• A manager’s ability to use tools,
procedures, and techniques of a
specialized field.
POLITICAL SKILLS
• A manager’s ability to build a
power base and establish the right
connections.
19. Why study Management?
• We a l l h a v e a v e s t e d i n t e r e s t i n i m p r o v i n g t h e
w a y o r g a n i z a t i o n s a r e m a n a g e d .
• Yo u w i l l e v e n t u a l l y e i t h e r m a n a g e o r b e m a n a g e d
Ø Gaining an understanding of the management process
provides the foundation for developing management
skills and insight into the behavior individuals and the
organizations.
Ø Better organizations are, in part, the result of good
management.
20.
21. Historical Background of Management
• Ancient Management
Ø Egypt (pyramids) and China (Great Wall)
Venetians (floating warship assembly lines)
• Adam Smith
Ø Published “The Wealth of Nations” in 1776
Ø Advocated the division of labor (job specialization)
to increase the productivity of workers
• Industrial Revolution ( 18th Century)
Ø Substituted machine power for human labor
Ø Created large organizations in need of management
24. Major Approaches to Management
SCIENTIFIC MANAGEMENT
GENERAL ADMINISTRATIVE
THEROY
QUANTITATIVE
MANAGEMENT
ORGANIZATION BEHAVIOR
SYSTEMS APPROACH
CONTIGENCY APPROACH
25. Major Approaches to Management
• Scientific Management Theory
Began in the industrial revolution in the late 19th century as:
Managers of organizations began seeking ways to better satisfy customer needs.
Large-scale mechanized manufacturing began to supplant small-scale craft production in the
ways in which goods were produced.
Social problems developed in the large groups of workers employed under the factory system.
Managers began to focus on increasing the efficiency of the worker-task mix.
• Administrative Theory
• Quantitative Approach
Ø Also called operations research or management science
Ø Evolved from mathematical and statistical methods developed to solve WWII military
logistics and quality control problems
Ø Focuses on improving managerial decision making by applying:
Ø Statistics, optimization models, information models, and computer simulations
26. • Job specialization and the division of labor
• Adam Smith (18th century economist)
Ø Observed that firms manufactured pins in one of two
different ways:
Ø Craft-style—each worker did all steps.
Ø Production—each worker specialized in one step.
Ø Realized that job specialization resulted in
much higher efficiency and productivity
Ø Breaking down the total job allowed for the division of
labor in which workers became very skilled at their
specific tasks.
27. • Scientific Management
• Fredrick Winslow Taylor
Ø The “father” of scientific management
Ø Published Principles of Scientific Management (1911)
Ø The theory of scientific management.
Using scientific methods to define the “one best way” for
a job to be done:
• Putting the right person on the job with the correct tools
and equipment.
• Having a standardized method of doing the job.
• Providing an economic incentive to the worker.
29. Frank and Lillian Gilbreth
Refined Taylor’s work and made many
improvements to the methodologies of time and
motion studies.
Ø Time and motion studies
Ø Breaking up each job action into its
components.
Ø Finding better ways to perform the action.
Ø Reorganizing each job action to be more
efficient.
• Also studied worker-related fatigue problems
caused by lighting, heating, and the design of
tools and machines.
30. Henry Gantt (1861-1919)
• Originated a unique pay arrangement in which
all workers were entitled to a basic daily wage,
compared with Taylor's differential piece rate pay
system, which paid according to output.
• In Gantt's task and bonus system, if employees
completed their tasks on time they earned a
bonus, and if they performed beyond expectations
they were again rewarded, as were their
supervisors. Gantt wanted to encourage
supervisors to coach employees rather than drive
them to perform.
• Gantt believed that humanitarian management
was the key to achieving organizational goals.
31. Weber’s Ideal Bureaucracy
• Authority is the power to hold
people accountable for their actions.
• Positions in the firm should be held
based on performance, not social
contacts.
• Position duties are clearly identified
so that people know what is expected
of them.
• Lines of authority should be clearly
identified such that workers know
who reports to who.
• R u l e s , s t a n d a r d o p e r a t i n g
procedures (SOPs), and norms guide
the firm’s operations.
Weber’s Five Principles
33. Fourteen Principles of Management
By Henry Fayol
Fayol noted jobs can have too much specialization
leading to poor quality and worker dissatisfaction.
v DIVISION OF LABOR
Fayol included both formal and informal authority
resulting from special expertise.
v AUTHORITY AND RESPONSIBILITY
Employees should have only one boss.
v UNITY OF COMMAND
A clear chain of command from top to
bottom of the firm.
v LINE OF AUTHORITY
The degree to which authority rests at the top of the
organization.
v CENTRALIZATION
A single plan of action to guide the organization.
v UNITY OF DIRECTION
The provision of justice and the fair and
impartial treatment of all employees.
v EQUITY
The arrangement of employees where they
will be of the most value to the organization
and to provide career opportunities.
v ORDER
34. Fourteen Principles of Management By Henry
Fayol
The fostering of creativity and innovation by
encouraging employees to act on their own.
v INITIATIVE
Obedient, applied, respectful employees are
necessary for the organization to function.
v DISCIPLINE
An equitable uniform payment system
that motivates
contributes to organizational success.
v REMUNERATIION
Long-term employment is important for
the development of skills that improve the
organization’sperformance.
v STABILITY OF TENURE
The interest of the organization takes
precedence over that of the individual
employee
v SUBORDINATION
Comradeship, shared enthusiasm foster
devotion to the common cause
(organization).
v ESPRIT DE CORPS
35. • Quantitative Approach to Management
• Administrative Management
Ø The study of how to create an organizational structure that leads to high
efficiency and effectiveness.
• Max Weber
Ø Developed the concept of bureaucracy as a formal system of organization and
administration
designed to ensure efficiency and effectiveness.
• Contingency Approach
Also sometimes called the situational approach.
• There is no one universally applicable set of management principles (rules) by which to
manage organizations.
• Organizations are individually different, face different situations (contingency variables),
and require different ways of managing.
36. • Understanding Organizational Behavior
• Organizational Behavior (OB)
The study of the actions of
people at work; people are the
most important asset of an
organization
• Early OB Advocates
Robert Owen
Hugo Munsterberg
Mary Parker Follett
Chester Barnard
Early Advocates of OB
37. • The Systems Approach
• System Defined
• A set of interrelated and interdependent parts arranged in
a manner that produces a unified whole.
Basic Types of Systems:
• Closed systems
• Are not influenced by and do not interact with their
environment (all system input and output is internal).
• Open systems
• Dynamically interact to their environments by taking in
inputs and transforming them into outputs that are
distributed into their environments.
Implications of the Systems Approach
• Coordination of the organization’s parts is
essential for proper functioning of the entire
organization.
• Decisions and actions taken in one area of
the organization will have an effect in other
areas of the organization.
• Organizations are not self-contained and,
therefore, must adapt to changes in their
external environment.
The Organization as an Open System
40. CURRENT TRENDS AND
ISSUES
• Management in international organizations
• Political and cultural challenges of operating in a
global market
v GLOBALIZATION
Increasing heterogeneity in the workforce
• More gender, minority, ethnic, and other forms of
diversity in employees
Aging workforce
• Older employees who work longer and do not
retire.
• The increased costs of public and private
benefits for older workers
• An increasing demand for products and services
related to aging
v WORKFORCE DIVERSITY
The process whereby an individual or group of
individuals use organized efforts to create value and
grow by fulfilling wants and needs through innovation and
uniqueness.
• Entrepreneurship process
Pursuit of opportunities
Innovation in products, services, or business methods
Desire for continual growth of the organization
v ENTREPRENEURSHIP
• Increased emphasis on ethics education in
college curriculums.
• Increased creation and use of codes of ethics by
businesses
v ETHICS
41. A philosophy of management driven by continual
improvement in the quality of work processes and
responding to customer needs and expectations
Inspired by the total quality management (TQM)
ideas of Deming and Juran
Quality is not directly related to cost
v QUALITY MANAGEMENT
The cultivation of a learning culture where
organizational members systematically gather and
share knowledge with others in order to achieve
better performance.
v KNOWLEDGE MANAGEMENT
An organization that has developed the
capacity to
continuously learn, adapt, and change.
v LEARNING ORGANIZATION
The work preformed by an organization using
electronic linkages to its key constituencies
• E-commerce: the sales and marketing
component of an e-business
v E-BUSINESS
C U R R E N T T R E N D S A N D I S S U E S
