Chapter 1: Nature and Concept of Management Organization • • • Refers to a collection of people, who are involved in pursuing defined objectives. It can be understood as a social system which comprises all formal human relationships. The organization encompasses division of work among employees and alignment of tasks towards the goal of the company. Management • • Means the group of persons occupying managerial positions. It refers to all those individuals who perform managerial functions. a distinct process of planning, organizing, staffing, directing, and controlling (POSDICON), performed to determine and accomplish stated objectives by the use of human being and other business resources. Managers Are individuals in an organization who direct and oversee the activities of other people in the organization. 3 Management Skills 1. Technical Skills: job-specific knowledge and techniques needed to proficiently perform work tasks 2. Human Skills: ability to work well with other people both individually and in group 3. Conceptual Skills: ability to see the organization as a whole, understand the relationships among various subunits, visualize how the organization fits into its external environment • Top Level Management • These individuals are at the top one or two levels in an organization and hold titles such as Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer (COO), Chief Information Officer (CIO), Chairperson of the Board, President, Vice president, Corporate head. Middle Managament • Middle managers’ job titles include General Manager, Plant Manager, Regional Manager, and Divisional manager. Lower-Level Management • These managers have job titles such as office manager, Shift Supervisor, Department Manager, Foreperson, Crew leader, Store manager. 4 Functions of Management 1. Planning • In the planning stage, managers establish organizational goals and create a course of action to achieve them. • During the planning phase, management makes strategic decisions to set a direction for the organization. 2. Organizing • The purpose of organizing is to distribute the resources and delegate tasks to personnel to achieve the goals established in the planning stage. 3. Leading • Leading consists of motivating employees and influencing their behavior to achieve organizational objectives. • Leading focuses on managing people, such as individual employees, teams and groups rather than tasks. 4. Controlling • Controlling is the process of evaluating the execution of the plan and making adjustments to ensure that the organizational goal is achieved. • During the controlling stage, managers perform tasks such as training employees as necessary and managing deadlines. Evolution of Management Theories • • Evolution of modern management began in the late 19th century, after the industrial revolution. Studying history enables us to learn from mistakes made in the past so as to avoid making them in the future. Classical Management Theory • • Classical approach is the oldest formal school of thought which began around 1900 and continued into the 1920s. Its mainly concerned with the increasing in efficiency of workers and organizations based on management practices, which were an outcome of careful observation. 3 Types of Classical Management Theory 1. Scientific Management • This is an approach within the classical management perspective that emphasizes the scientific study of work methods in order to improve work efficiency. • The major representatives of this approach includes Frederick W. Taylor, Frank and Lilian Gilberth, and Henry Gantt. 2. Bureaucratic Management • This is an approach that emphasizes the need for operations to operate in a rational manner rather than relying on the arbitary of owners and managers. • This is based mainly on the work of German sociologists, Max Weber. 3. Administrative Management • This is an approach that focuses on principles that can be used by managers to coordinate the internal activities of organizations. • The major contributors include Henry Fayol and Chester Bernard. Behavioral Management Theory • • • Is concerned with how to manage productivity by understanding worker motivation, including expectations, needs and interests, and group dynamics. Behavioral management theory is sometimes referred to as the human relations movement due to its focus on the human dimension of work. Theorists who contributed to behavioral management include Mary Parker Follett, Elton Mayo, and Abraham Maslow. A. The Hawthorne Studies • Human factors related to work were found to be more important than physical conditions or design of the work. • Hawthorne studies found that worker’s feelings and attitudes affected their work. • It was developed by Australian sociologist Elton Mayo. B. Human Relations Management • Is a researched belief that people desire to be part of a supportive team that facilitates development and growth. • Therefore, if employees receive special attention and are encouraged to participate, they perceive their work as having significance and are motivated to be more productive, resulting in high-quality work. • It was developed by Abraham Maslow and Douglas McGregor. Abraham Maslow • He proposed that people are motivated by five categories of needs: physiological, safety, love, esteem, and self-actualization. Douglas McGregor • • Expressed his views of human nature in two sets of assumptions. They are popularly known as ‘Theory X’ and ‘Theory Y’. Theory X - Assumes that workers have little ambition, dislike work, avoid responsibility and require close supervision. • Theory Y - Assumes that workers can exercise self-direction, desire responsibility and like to work. C. Contemporary Behavioral Science in Management • Current behavioral perspectives on management, known as organizational behavior, acknowledge that human behavior in organizations is much more complex than what the human relations realized. The Quantitative Management Theory • It is an approach that is given by the mathematical school that recommends the use of computers and mathematical techniques to solve complex management issues and assist in the managerial decision-making process. A. Management Science • The management science approach stresses the use of mathematical models and statistical methods for decision-making. B. Operations Management • Operations management is an applied form of management science. • It deals with the effective management of the production process and the timely delivery of an organization's products and services Contemporary Management Theory • • Were developed in the second half of the 20 th century attempted to address the shortcomings of the classical, behavioral and quantitative perspectives. The 2 perspectives are The Systems Perspective and The Contingency Perspective.
