Management
and Its
Evolution
Successful Organizations
firm can be efficient by making the best use
of people, money, physical plants, and
technology.
A
is ineffective if its goals do not provide a
sustained competitive advantage.
 Successful organizations know how to manage
 It
people and resources efficiently and
effectively to accomplish organizational goals
and to keep those goals in tune with
changes in the external environment.
How business in the 21st century is
different
 Emphasis
on the Management of
Change
 Increasing Emphasis on Customer
Service
 Need for Higher Business Ethics.
Who is a manager?

A person who is responsible for making
resource allocation decisions and with the
formal authority to direct others
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Operational- lowest level, supervise the affairs
of the organization
Tactical- translate general goals into specific
activities
Strategic- senior executives responsible for
overall development.
What is a Team?
A set of people performing a task to attain a
common goal.
Cross-functional teams
 Composed
of individuals from different parts of
the organization
Cross-disciplinary
 Composed
of team members with diverse
background
 Define
the problem, set objectives, establish
priorities, proposes new ways of doing things, and
assigns members to different tasks.
Working in a modern organization

Manager
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Individual
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A holistic view
Effective and Efficient Planning
Integrity, honesty, respect
Good Communication
Initiative
Leadership
Learning ability
Flexibility
Trustworthiness
Team
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Evaluate overall team performance
Appreciate teams that think out of the box
Appreciate diversity.
Functions of Management

Planning: assesses the management
environment to set future objectives and
map out activities necessary to achieve
those objectives.
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COORDINATION is required
Organizing: determines how the firm’s
human, financial, physical, informational,
and technical resources are arranged and
coordinated to perform tasks to achieve
desired goals.

RESOURCE deployment is required
Functions of Management (contd.)

Leading : energizes people to contribute their
best individually and in cooperation with other
people
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COMMUNICATION, MOTIVATION are required
Controlling: measures performance, compares
it to objectives, implements necessary changes,
and monitors progress.

FEEDBACK, PROBLEM SOLVING are required.
Roles of Managers

Interpersonal- involving interaction with
superiors, peers and subordinates and people
outside the organization.
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Figurehead
Leader
Liaison
Informational- Obtaining, interpreting and
giving out a great deal of information.
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Monitor
Disseminator
Roles of Managers(contd.)

Decisional- Choosing among alternatives,
balancing interests of various parties.
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Entrepreneur
Disturbance handler
Resource allocator
Negotiator
Early Management Thought

Management strategy: Sun Tzu, The

Leadership: Nicolò Machiavelli, The

Design and organization of work:
Art of War
Prince
Adam Smith, The Wealth of Nations
•
division of labor
The Operational Perspective
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Scientific Management: Frederick W. Taylor
Quantitative Management: Ford W. Harris
Quality Management: Walter A. Shewhart
Bureaucratic Management: Max Weber
Administrative Management: Henri Fayol
Taylors Scientific Management
 Scientifically study each part of a task develop the best
method of performing the task.
 Carefully select workers and train them to perform the
task by using the scientifically developed method.
 Cooperate fully with workers to ensure that they use the
proper method.
 Divide work and responsibility so that management is
responsible for planning work methods using scientific
principles and workers are responsible for executing the
work accordingly.
Weber’s Ideal Bureaucracy

Specialization of labor
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Formal rules and procedures
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Impersonality
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Well-defined hierarchy
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Career advancement based on merit
Fayol’s Principles of
Management

Division of work
 Centralization
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Authority
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Scalar chain
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Discipline
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Order
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Unity of command
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Equity
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Unity of direction
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Stability and tenure
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Subordination of individual
interest to the general
interest
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Initiative
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Esprit de corps

Remuneration
Functional approach to management
Unity of command
Unity of direction
Equity
Behavioral Perspective
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Based on the fact that psychological and social
processes of human behavior can result in
improvements in productivity and work
satisfaction.
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The Hawthorne effect - when a manager shows
concern for employees, their motivation and productivity
levels are likely to improve.
Human Relations Approach - the relationship
between employees and a supervisor is a vital aspect of
management.
 Employee motivation
 Leadership style
Hawthorne Studies
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1924 – 1932 at Western Electric Company’s
plant near Chicago.
Paying special attention to employees
motivates them to put greater effort into
their jobs.
Work groups are important- the chiselers
are convinced to speed up and the ratebusters to slow down.
Maslow’s Hierarchy
of Needs
Self-
Actualization
Need for Self Esteem
Need for Social Relations
Need for Security
Physical Needs
McGregor’s Theory X and
Theory Y
o
Theory X assumes that employees are
inherently lazy and lack ambition.
o negative
perspective on human
behavior.
o
Theory Y assumes that most employees do not
dislike work and want to make useful
contributions to the organization.
o positive
perspective on human
behavior.
Contemporary
Management Approach
Systems
Theory
Contingency
The
Theory
Learning Organization
Perspective
Systems Theory
 The
organization is a system of interrelated parts
that function in a holistic way to achieve a common
purpose.
 Input process output occurs
 Environment= external market
 Feedback is an important component
 Systems theory concepts that affect management thinking:
•
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Open and closed systems- open interact with environment, closed
do not.
Subsystems- interdependent parts of the system
Synergy- whole greater than the parts
Equifinality- same goal different routes
THE WHOLE IS GREATER THAN THE SUM OF PARTS
Contingency Theory
There
is no “one best way” to
manage an organization.
 what
works for one organization may not work
for another
 Situational characteristics (contingencies) differ
 Managers need to understand the key
contingencies that determine the most effective
management practices in a given situation
The Learning Organization
 The
management approach based on an
organization anticipating change faster than
its counterparts to have an advantage in the
market over its competitors.
than reacting to change , which is a
normal part of the business landscape,
organizations need to anticipate change so
they are well positioned to satisfy customer
needs.
 Rather
Emerging Perspectives
and Issues
The Modular Organization
Every function not regarded as crucial is outsourced to an
independent organization.
 “Disaggregated Corporation”
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The Intangible Organization
Shifts from tangible (plant and equipment) to intangible
(know-how and product design) investments
 Mangers and employees in today’s companies focus on
opportunities rather than efficiencies
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