Management Process dr hab. Jerzy Supernat Institute of Administrative Studies University of Wroclaw Management Process Father of scientific management Frederick W. Taylor (1856-1915): The art of management has been defined as knowing exactly what you want men to do and then seeing that they do it in the best and cheapest way. dr hab. Jerzy Supernat Management Process Old adage A manager does his work by getting other people to do theirs. dr hab. Jerzy Supernat Management Process Frederick W. Taylor: The old fashioned dictator does not exist under Scientific Management. The man at the head of the business under Scientific Management is governed by rules and laws which have been developed through hundreds of experiments just as much as the workman is, and the standards developed are equitable. F.W. Taylor: A very serious objection has been made to the use of the word ‘science’ in this connection. […] I think the proper answer to this criticism is to quote President professor McLaurin, of the Institute of Technology, of Boston. He recently defined the word science as ‘classified or organized knowledge of any kind’ […]. dr hab. Jerzy Supernat Management Process Ricky W. Griffin: Management is a set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organization’s resources (human, financial, physical, and information) with the aim of achieving organizational goals in an efficient and effective manner. dr hab. Jerzy Supernat Management Process The basic purpose of management: ensure that an organization’s goals are achieved in an efficient and effective manner. efficient: using resources wisely and in a costeffective way effective: making the right decisions and successfully implementing them Successful organizations are both efficient and effective. dr hab. Jerzy Supernat Management Process Father of efficiency Benjamin Franklin (1706-1790): Lose no time; be always employed in something useful; cut off all unnecessary action. dr hab. Jerzy Supernat Management Process Benjamin Franklin’s thirteen virtues 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. TEMPERANCE. Eat not to dullness; drink not to elevation. SILENCE. Speak not but what may benefit others or yourself; avoid trifling conversation. ORDER. Let all your things have their places; let each part of your business have its time. RESOLUTION. Resolve to perform what you ought; perform without fail what you resolve. FRUGALITY. Make no expense but to do good to others or yourself; i.e., waste nothing. INDUSTRY. Lose no time; be always employed in something useful; cut off all unnecessary actions. SINCERITY. Use no hurtful deceit; think innocently and justly, and, if you speak, speak accordingly. JUSTICE. Wrong none by doing injuries, or omitting the benefits that are your duty. MODERATION. Avoid extremes; forbear resenting injuries so much as you think they deserve. CLEANLINESS. Tolerate no uncleanliness in body, cloaths, or habitation. TRANQUILITY. Be not disturbed at trifles, or at accidents common or unavoidable. CHASTITY. Rarely use venery but for health or offspring, never to dullness, weakness, or the injury of your own or another's peace or reputation. HUMILITY. Imitate Jesus and Socrates. dr hab. Jerzy Supernat Management Process Benjamin Franklin on the U.S. one hundred dollar bill dr hab. Jerzy Supernat Management Process Anglo-Irish novelist Maria Edgeworth (1767-1849): All work and no play makes Jack a dull boy. All play and no work makes Jack a mere toy. dr hab. Jerzy Supernat Management Process Ricky W. Griffin: A manager is someone whose primarily responsibility is to carry out the management process. In particular, a manager is someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources. The functions or stages of management do not usually occur in a tidy, stepby-step fashion. At any given time a manager is likely to be engaged in several activities simultaneously. Peter F. Drucker Who is a manager can be defined only by man’s function and by the contribution he is expected to make. And the function which distinguishes the manager above all others is his educational one. The one contribution he is uniquely expected to make is to give others vision and ability to perform. It is vision and moral responsibility that […] define manager. dr hab. Jerzy Supernat Management Process The first stage of the management process is planning and decision-making. Planning means setting an organization’s goals and deciding how best to achieve them. Decision-making involves selecting a course of action from a set of alternatives. Planning and decision-making help maintain managerial effectiveness by serving as guides for future activities / help managers allocate their time and resources. dr hab. Jerzy Supernat If you want to make God laugh, tell Him your plans. Management Process The second stage of the management process is organizing. Once a manager has set goals and developed a workable plan, the next management stage is to organize the people and other resources necessary to carry out the plan. Specifically, organizing involves how activities and resources are to be grouped. dr hab. Jerzy Supernat Management Process The third stage of the management process is leading. Leading is the set of activities used to get people to work together to advance the interests of the organization. Some people consider leading to be the most important and the most challenging of all managerial functions. dr hab. Jerzy Supernat Management Process The fourth and final stage of the management process is controlling, or monitoring the organization’s progress towards its goals. Controlling helps ensure the effectiveness and efficiency needed for successful management. dr hab. Jerzy Supernat Management Process Effective managers must be capable of moving back and forth among the stages of the management process as circumstances warrant, and must juggle multiple functions and activities simultaneously. Managers cannot afford to be effective in or enjoy performing only some of the functions and activities, since all are important. dr hab. Jerzy Supernat Management Process Peter F. Drucker Categories of manager’s work: setting objectives organizing motivating and communicating measuring developing people Every one of these categories can be divided further into sub-categories, and each of sub-categories could be discussed in a book of its own. The work of the manager, in other words, is complex. And every one of its categories requires different qualities and qualifications. dr hab. Jerzy Supernat Management Process A manager, in the first place, sets objectives: he determines what the objectives should be he determines what the goals in each area of objectives should be he decides what has to be done to reach these objectives he makes the objectives effective by communicating them to the people whose performance is needed to attain them dr hab. Jerzy Supernat Management Process Secondly, a manager organizes: he analyses the activities, decisions and relations needed he classifies the work he divides the work into manageable activities he further divides the activities into manageable jobs he groups the jobs into an organizational structure he selects people for the jobs to be done dr hab. Jerzy Supernat Management Process Andrew Carnegie - a man who knew how to enlist the service of better men than himself. Management Process Next a manager motivates and communicates (makes a team out of the people that are responsible for various jobs): he does it through the practices with which he manages he does it in his own relation to the men he manages he does it through incentives and rewards for successful work he does it through his promotion policy he does it through constant communication with his subordinates and his superiors dr hab. Jerzy Supernat Management Process The fourth basic element in the work of the manager is the job of measurement: he establishes measuring yardsticks he sees to it that each man in the organization has measurements available to him which are focused on the performance of the whole organization and which at the same time focus on the work of the individual and help him do it he analyses performance, appraises it and interprets it he communicates both the meaning of the measurements and their findings to his subordinates as well as to his superiors dr hab. Jerzy Supernat Management Process Finally, a manager develops people (through the way he manages he makes it easy or difficult for them to develop themselves): he directs people or misdirects them he brings out what is in them or he stifles them he strengthens their integrity or he corrupts them he trains them to stand upright and strong or he deforms them dr hab. Jerzy Supernat Management Process Peter F. Drucker: Setting objectives, organizing, motivating and communicating, measuring and developing people are formal, classifying categories. Only a manager’s experience can bring them to life, concrete and meaningful. But because they are formal, they apply to every manager and to everything he does as a manager. They can therefore be used by every manager to appraise his own skill and performance, and to work systematically on improving himself and his performance as a manager. Being able to set objectives does not make a man manager, just as ability to tie a small knot in confined space does not make a man a surgeon. But without ability to set objectives a man cannot be an adequate manager, just as a man cannot do a good surgery who cannot tie small knots. And as a surgeon becomes a better surgeon by improving his knot-tying skill, a manager becomes a better manager by improving his skill and performance in all five categories of his work. dr hab. Jerzy Supernat Management Process Kinds of managers by level of management top managers (they manage the overall organization; common titles: president and CEO) • middle managers (they bridge the upper and lower levels of the organization; common titles: plant manager, operations manager, and division head) • first-line managers (they supervise and coordinate the activities of operating employees; common titles: supervisor, coordinator, and office manager) • dr hab. Jerzy Supernat Management Process A man of words and not of deeds Is like a garden full of weeds. Jack Welch Former CEO of General Electric My main job was developing talent. I was a gardener providing water and other nourishment to our top 750 people. Of course, I had to pull out some weeds, too. dr hab. Jerzy Supernat Management Process Kinds of managers by area of management They are concerned with establishing and managing the systems that create an organization’s products and services. Typical responsibilities of operations managers include production control, inventory control, quality control, plant layout, and site selection. • marketing managers • financial managers • operations managers • human-resource managers • administrative managers • public-relations managers • research and development managers, and so on Administrative, or general, managers are not associated with any particular specialty. E.g. a hospital administrator. dr hab. Jerzy Supernat Management Process The skills necessary to accomplish or understand the specific kind of work being done in an organization. Managerial skills • technical • interpersonal • conceptual • diagnostic • communication • decision-making • time-management The ability to communicate with, understand, and motivate individuals and groups. The ability to think in the abstract. The ability to visualize the most appropriate response to a situation. The ability to both effectively convey ideas and information to others and effectively receive ideas and information from others. The ability to correctly recognize and define problems and opportunities and then select an appropriate course of action to solve problems and capitalize on opportunities. The ability to prioritize work, to work efficiently, and to delegate appropriately. dr hab. Jerzy Supernat Management Process Scope of management Management is applicable to all organizations (both profit-seeking, and not-for-profit). In other words, any group of two or more persons working together to achieve a goal and having human, financial, physical, or informational resources at its disposal requires the practice of management. dr hab. Jerzy Supernat Concluding Remark Management manages by making decisions and by seeing that those decisions are implemented. Harold S. Geneen (1910-1997) dr hab. Jerzy Supernat