1A - INTRODUCTION TO MANAGEMENT
Enterprise – A business, government
agency, hospital, university, or any other
type of organization.
Organization – A group of people
working towards the same set of goals.
Management – An effective and efficient
way to achieve organizational goals
through activities of the organization’s
resources.
Four basic resources (Organizations)
-
Human Resources
Financial Resources
Physical Resources
Informational Resources
-
Efficiency
Marketing Managers – Sell the product
and work in promotion and distribution
Financial Managers – In control of
accounting, cash management, and
investments
Operations
Managers
–
Control
production, inventory, quality, and plant
layout process
Doing things RIGHT
Getting the most output for the
least inputs
Administrative Managers – Specialist
with basic familiarity of all functional
areas
ART & SCIENCE OF
MANAGEMENT
Effectiveness
-
Doing the RIGHT things
Attaining organizational goals
THE MANAGEMENT PROCESS
Involves four basic activities (POLC):
-
PLANNING
/
MAKING
ORGANIZING
LEADING
CONTROLLING
Top Managers – CEO, CFO, VP
Middle Manager – Division Head,
Plant Manager
Supervisor, Office
Managers,
Coordinators
HR Managers – Hire and develop
employees; recruiting and training
Efficiency vs Effectiveness
-
Levels of Management
Science of Management
-
Uses rational, logical, and objective
ways to approach problems
Relies on technical, diagnostic, and
decision-making skills to solve
DECISION
Leads to achieving organization’s purposes
Art of Management
-
-
Uses a blend of intuition,
experience, and instinct to solve
problems
Relies on conceptual,
communication, interpersonal skills
1B - HISTORICAL CONTEXT OF MANAGEMENT
3000 B.C. – Written rules for governance
(Sumerians)
2500 B.C. – Management practices for
construction of pyramids (Egyptians)
2000 B.C. – Extensive set of laws for
governance (Babylonians)
1500 B.C. – Used governing systems for
cities and state (Greeks)
Industrial Revolution
-
Mass production of technology
Machine power for human labour
Scientific Management – Improve the
performance of individual workers
General Administrative Management –
Managing the total organization
1000 B.C. – Organized structure for
communication (Romans)
Frederick Winslow Taylor – Increased
efficiency and productivity for a job to be
done
500 B.C. –
structure for
(Chinese)
Henri Fayol – Identified the management
functions of POLC and 14 Principles of
Management
Extensive organization
governmental agencies
A.D. 500 – Used organization design to
control the seas (Venetians)
Adam Smith – Scottish Philosopher
-
Father of Modern Economics
Wrote The Wealth of Nations
(1776)
Robert Owen – Welsh Industrialist
-
Recognized the importance of
human resources
Believed that a better quality of life
yields a happier society
Charles
Babbage
Mathematician
-
–
Father of Computing
Applies
mathematics
management
English
to
-
Division of Work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination
Remuneration
Centralization
Scalar Chain
Order
Equity
Stability of Tenure
Initiative
Esprit de Corps
Unity of Command – One boss who is
accountable for their orders
Authority – The right to give commands
and receive obedience from subordinates
Max Weber – Theory of Bureaucracy
which stressed strict rules and a firm
distribution of power
Behavioural Management Perspective People are the most important asset of an
organization
Hugo Munsterberg
-
Psychology
and
Industrial
Efficiency
Matching worker’s ability to job
requirements
The Hawthorne Studies
-
Work performance depends on
social issues and job satisfaction
Hawthorne Effect – When workers know
people are concerned about them their
productivity increases
Mayo Management Theory
-
Employees are motivated more by
attention and camaraderie than
monetary gains
Elton Mayo
-
Founder of the Human Relations
Approach for Management
Abraham Maslow
-
-
Advanced a theory that employees
are motivated by a Hierarchy of
needs
Self-actualization
Hierarchy of Needs
-
Self-actualization (Fulfilment)
Belongingness (Psychological)
Safety needs (Physical)
Henry Mintzberg
Key management roles:
-
Interpersonal Roles
Informational Roles
Decisional Roles
Dr. William Ouchi
Theory Z
-
-
Increasing employee’s loyalty to
the company focused on his wellbeing
Increased job commitment and
productivity
Organizational Behaviour
-
Study of how humans interact
within an organization
Focuses
on
behavioural
perspectives
Systems Approach
System – Collection of elements that are
inter-related that produces a unified whole
Subsystem – System within another system
that is important due to its interdependence
Synergy – Subsystems are successful when
working together rather than alone
Entropy – Where an organizational system
declines due to failing to adjust to change
Systems Perspective of Organizations
Inputs – Raw Materials, Human Resources
Transformation – Management Activities
Outputs – Products, Information, Human
Results
Contingency
Perspective
organization is unique
-
Each
Universal Perspectives – Attempts to
identify the best way to manage
organizations
Effective and Efficient Management
Classical Management Perspectives –
Methods
for
enhancing,
planning,
organizing, and controlling
Behavioural Management Perspectives
–
Motivating
performance
and
understanding individual behaviour
Quantitative Management Perspectives
– To improve decision making, resource
allocation, and operations
Contemporary Management Issues
-
Globalization of product
Increasingly diverse workforce
Ethics and Social Responsibility
Quality as the basis for competition
Shift to a service-based economy
Challenges of a recovering
economy
New organizational structures
Effects of new information
technology in an organization
Importance of History
-
Development of management
practices
Avoid mistakes made in the past
Closed Systems – Are not influenced with
their environment
Open Systems – Dynamically interacts
with their environments