MANA 3319 Management and its Evolution. A Firm needs to be Successful and Effective. A firm can be efficient by making the best use of people, money, physical plants, and technology. It is ineffective if its goals do not provide a sustained competitive advantage. Successful organizations know how to manage people and resources efficiently and effectively to accomplish organizational goals and to keep those goals in tune with changes in the external environment. Business in the 21st century is different: 1. Emphasis on the Management of Change 2. Increasing Emphasis on Customer Service 3. Need for Higher Business Ethics. Manager: A person who is responsible for making resource allocation decisions and with the formal authority to direct others i. Operational- lowest level, supervise the affairs of the organization ii. Tactical- translate general goals into specific activities iii. Strategic- senior executives responsible for overall development. A Manager needs to: Have a holistic view Effective and Efficient Planning Integrity, honesty, respect Good Communication 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 Functions of Management a. Planning: assesses the management environment to set future objectives and map out activities necessary to achieve those objectives COORDINATION is required b. 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 c. Leading : energizes people to contribute their best individually and in cooperation with other people. COMMUNICATION, MOTIVATION are required d. Controlling: measures performance, compares it to objectives, implements necessary changes, and monitors progress. FEEDBACK, PROBLEM SOLVING are required. A Pandey MANA 3319 Roles of Managers Interpersonal- involving interaction with superiors, peers and subordinates and people outside the organization. Figurehead Leader Liaison Informational- Obtaining, interpreting and giving out a great deal of information. Monitor Disseminator Decisional- Choosing among alternatives, balancing interests of various parties. Entrepreneur Disturbance handler Resource allocator Negotiator Principles of Taylor’s Scientific Management a. Scientifically study each part of a task develop the best method of performing the task. b. Carefully select workers and train them to perform the task by using the scientifically developed method. c. Cooperate fully with workers to ensure that they use the proper method. d. 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 a. Specialization of labor b. Formal rules and procedures c. Impersonality d. Well-defined hierarchy e. Career advancement based on merit Functional approach to management a. Unity of command b. Unity of direction c. Equity The Behavioral Perspective of Management is based on the fact that psychological and social processes of human behavior can result in improvements in productivity and work satisfaction. Human Relations Approach - the relationship between employees and a supervisor is a vital aspect of management. It involves: Employee motivation Leadership style A Pandey MANA 3319 McGregor’s Theory X and Theory Y a. Theory X assumes that employees are inherently lazy and lack ambition. Negative perspective on human behavior. b. Theory Y assumes that most employees do not dislike work and want to make useful contributions to the organization. Positive perspective on human behavior. 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 Important concepts are: A. Open and closed systems- open interact with environment, closed do not. B. Subsystems- interdependent parts of the system C. Synergy- whole greater than the parts D. Equifinality- same goal different routes Contingency Theory There is no “one best way” to manage an organization. what works for one organization may not work for another Contingencies: Situational characteristics which differ from situation to situation. 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. Rather 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. A Pandey