2–1
Recap on last week lesson
•
Management not an exact science – some say
it is an art acquired over time and with
experience
•
There is not necessarily a “right” or “wrong”
way – different people
- different circumstances
- different organisations
- different countries
•
•
•
2
Recap (cont’d)
What is a Manager?
Robbins, Bergman, Stagg & Coulter (2009), a
manager is someone who coordinates and
oversees the work of others so that the
organisational goals can be accomplished.
What makes a “good” Manager?
3
Recap
• Why study management?
• It is universal, you will either manage or be
managed.
• Understanding of the management process will
help you to build your skills, enhancing (raise to a
higher level )your personal and professional
development.
• The universal need is that it is:• In all organisations small to large
• All types of organisations profit & not-for-profit
• All areas from manufacturing to marketing etc
• Across levels bottom to top
4
cont’d
• What are the rewards and challenges being a
manager in today’s work place?
2–5
Exhibit 1–12 Rewards and Challenges of Being A Manager
1–6
Management
Chapter
2
Management
History
2–7
Learning Outcomes
Follow this Learning Outline as you read and study
this chapter.
2.1 Historical Background Of Management.
•
Explain why studying management history is important.
•
Describe some early evidences of management practice.
•
Describe two important historical events that are significant to
the study of management.
2.2 Classical Approach.
•
Describe the important contributions made by Frederick W.
Taylor and Frank and Lillian Gilbreth.
•
Discuss Fayol’s and Weber’s contributions to management
theory.
•
Explain how today’s managers use scientific management and
general administrative theory.
2–8
Learning Outcomes
2.3 Quantitative Approach.
• Explain what the quantitative approach has
contributed to the field of management.
• Describe total quality management.
• Discuss how today’s managers use the quantitative
approach.
2.4 Behavioral approach.
• Describe the contributions of the early advocates of
OB.
• Explain the contributions of the Hawthorne Studies to
the field of management.
• Discuss how today’s managers use the behavioral
approach.
2–9
Learning Outcomes
2.5 Contemporary Approach
• Describe an organization using the systems approach.
• Discuss how the systems approach helps us
understand management.
• Explain how the contingency approach is appropriate
for studying management.
2–10
Historical Background of
Management
• Ancient Management (1400s)
 Egypt (pyramids) and China (Great Wall)
 Venetians (floating warship assembly lines)
• Adam Smith
 Published The Wealth of Nations in 1776
Advocated the division of labor (job specialization) to increase
the productivity of workers
 Breakdown of jobs into narrow and repetitive tasks.

• Industrial Revolution
 Substituted machine power for human labor
 Created large organizations in need of management
2–11
HISTORY OF MANAGEMENT
• Management has existed for thousands of years
• Early civilizations – massive projects (e.g.
pyramids in Egypt)
 Can you think of any other major projects or events that
would have required effective and efficient management
skills?
12
• These examples from the past demonstrate that
organizations have been around for thousands
of years and that manage has been practiced.
2–13
2–14
2–15
IN MORE MODERN TIMES …
• 1776: Adam Smith wrote “The Wealth of
Nations”, outlining economic advantages of:
 Division of labour
 Job specialisation
• 18th Century, the Industrial Revolution saw shift
from human power to machine power – a shift
from craft to production
• Allowed large scale production but needed more
effective management to be economical
16
Class discussion
• Explain why division of labour and the industrial
revolution are important to the study of
management
2–17
Exhibit 2–1 Major Approaches to Management
2–18
Major Approaches to
Management
• Classical
• Quantitative
• Behavioral
• Contemporary
2–19
Scientific Management
• Fredrick Winslow Taylor
 The “father” of scientific management
 Published Principles of Scientific Management (1911)

The theory of scientific management
– Using scientific methods to define the “one best way” for a
job to be done:
• Putting the right person on the job with the correct tools
and equipment.
• Having a standardized method of doing the job.
• Providing an economic incentive to the worker.
2–20
Exhibit 2–2 Taylor’s Scientific Management Principles
1. Develop a science for each element of an individual’s work, which
will replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the worker.
3. Heartily cooperate with the workers so as to ensure that all work
is done in accordance with the principles of the science that has
been developed.
4. Divide work and responsibility almost equally between
management and workers. Management takes over all work for
which it is better fitted than the workers.
2–21
Scientific Management (cont’d)
• Frank and Lillian Gilbreth
 Focused on increasing worker productivity through
the reduction of wasted motion
 Developed the microchronometer to time worker
motions and optimize work performance
• How Do Today’s Managers Use Scientific
Management?
 Use time and motion studies to increase productivity
 Hire the best qualified employees
 Design incentive systems based on output
2–22
GENERAL ADMINISTRATIVE
THEORISTS
• Scientific management focused on tasks
performed by workers and designing better
practices – supervision by first-line managers
(supervisors)
• General administration focused on what managers
at all levels do – provided a set of general
principles for managers to follow
• Henri Fayol – Management Functions (Planning,
Organising, Leading, Controlling)
23
Exhibit 2–3 Fayol’s Principles of
Management
1. Division of work
7.
Remuneration
2. Authority
8.
Centralization
3. Discipline
9.
Order
4. Unity of command
10. Equity
5. Unity of direction
11. Stability of tenure
of personnel
12. Initiative
2–24
WEBER’S IDEAL BUREAUCRACY
• Weber, early 1900s: structural design of
organisations
• Bureaucracy ideal form for large organisation
 Division of labour
 Clearly defined hierarchy
 Detailed rules and regulations
 Impersonal relationships
• Similar to Fayol’s principles but some differences?
What are these?
25
Exhibit 2–4 Weber’s Bureaucracy
2–26
ORGANISATIONAL BEHAVIOUR
• Hawthorne studies
• Focus on the actions and behaviour of people in
organisations, not just on how they do a task,
e.g.
 Motivation
 Leadership (and ‘followership’)
 Teamwork
 Conflict management
 Trust
 Organisational commitment
• Influenced by application of psychology to
behaviour in organisations
27
ORGANISATIONAL BEHAVIOUR
• Organisations as social systems – peopleoriented not impersonal and just about task
• Managers’ job to influence, motivate and
communicate not just command
• Organisations contain both individuals and
groups – need to study group dynamics
• Recognition of individual differences, e.g.
skills, learning, motivations, etc.
28
Quantitative Approach to
Management
• Quantitative Approach
 Also called operations research or management
science
 Evolved from mathematical and statistical methods
developed to solve WWII military logistics and quality
control problems
 Focuses on improving managerial decision making by
applying:

Statistics, optimization models, information models, and
computer simulations
2–29
Exhibit 2–5 What Is Quality Management?
Intense focus on the customer
Concern for continual improvement
Process-focused
Improvement in the quality of everything
Accurate measurement
Empowerment of employees
2–30
The Contingency Approach
• Contingency Approach Defined
 Also sometimes called the situational approach.
 There is no one universally applicable set of
management principles (rules) by which to manage
organizations.
 Organizations are individually different, face different
situations (contingency variables), and require
different ways of managing.
2–31
Exhibit 2–8 Popular Contingency Variables
• Organization size
• As size increases, so do the problems of coordination.
• Routineness of task technology
• Routine technologies require organizational structures,
leadership styles, and control systems that differ from
those required by customized or non-routine
technologies.
• Environmental uncertainty
• What works best in a stable and predictable environment
may be totally inappropriate in a rapidly changing and
unpredictable environment.
• Individual differences
• Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations.
2–32
SUMMARY
• Classical/scientific management
 Focus on production, task, organizational structures
 Employees as doers (‘workers’)
• Human relations
 Focus on people: what motivates employees to work,
psychology and behaviour, keeping employees happy
 Employees as feelers
• Human resources
 People and task: empowerment, employees as valuable
resources and sources of innovation
 Employees as thinkers
33
TRADITIONAL TO MODERN:
CHANGES
34
Chapter
3
© 2007 Prentice Hall, Inc.
All rights reserved.
Organizational
Culture and
Environment:
The Constraints
LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter.
• The Environment
• Describe the components of the specific and general
environments.
• Identify the most common organizational stakeholders.
• Explain the four steps in managing external stakeholder
relationships.
© 2007 Prentice Hall, Inc. All rights reserved.
3–36
L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.
• The Organization’s Culture
• Describe the seven dimensions of organizational culture.
• Discuss the impact of a strong culture on organizations
and managers.
• Explain the source of an organization’s culture.
• Describe how culture affects managers.
© 2007 Prentice Hall, Inc. All rights reserved.
3–37
Exhibit 3–1 Parameters of Managerial Discretion
© 2007 Prentice Hall, Inc. All rights reserved.
3–38
Defining the External
Environment
• External Environment
 Those factors and forces outside the organization that
affect the organization’s performance.
• Components of the External Environment
 Specific environment: external forces that have a
direct and immediate impact on the organization.
 General environment: broad economic, sociocultural, political/legal, demographic, technological,
and global conditions that may affect the organization.
© 2007 Prentice Hall, Inc. All rights reserved.
3–39
Exhibit 3–9 The External Environment Factors
© 2007 Prentice Hall, Inc. All rights reserved.
3–40
How the Environment Affects
Managers
• Environmental Uncertainty
 The extent to which managers have knowledge of
and are able to predict change their organization’s
external environment is affected by:

Complexity of the environment: the number of components
in an organization’s external environment.

Degree of change in environmental components: how
dynamic or stable the external environment is.
© 2007 Prentice Hall, Inc. All rights reserved.
3–41
Stakeholder Relationships
• Stakeholders
 Any constituencies in the organization’s environment
that are affected by the organization’s decisions and
actions
• Why Manage Stakeholder Relationships?
 It can lead to improved organizational performance.
 It’s the “right” thing to do given the interdependence
of the organization and its external stakeholders.
© 2007 Prentice Hall, Inc. All rights reserved.
3–42
Managing Stakeholder
Relationships
1. Identify the organization’s external
stakeholders.
2. Determine the particular interests and
concerns of the external stakeholders.
3. Decide how critical each external stakeholder
is to the organization.
4. Determine how to manage each individual
external stakeholder relationship.
© 2007 Prentice Hall, Inc. All rights reserved.
3–43
Exhibit 3–12 Organizational Stakeholders
© 2007 Prentice Hall, Inc. All rights reserved.
3–44
The Organization’s Culture
• Organizational Culture
 A system of shared meanings and common beliefs
held by organizational members that determines, in a
large degree, how they act towards each other.
 “The way we do things around here.”

Values, symbols, rituals, myths, and practices
 Implications:

Culture is a perception.

Culture is shared.

Culture is descriptive.
© 2007 Prentice Hall, Inc. All rights reserved.
3–45
Exhibit 3–2 Dimensions of Organizational Culture
© 2007 Prentice Hall, Inc. All rights reserved.
3–46
How Culture Affects Managers
• Cultural Constraints on Managers
 Whatever managerial actions the organization
recognizes as proper or improper on its behalf
 Whatever organizational activities the organization
values and encourages
 The overall strength or weakness of the
organizational culture
Simple rule for getting ahead in an organization:
Find out what the organization rewards and do those things.
© 2007 Prentice Hall, Inc. All rights reserved.
3–47
Introduction – the report
•
•
•
In 1991 the Australian government
commissioned a report on leadership and
management skills in Australia.
In 1995 the report was delivered and was
named; Enterprising Nation:
Renewing Australias Managers to meet the
challenges of the Asia-Pacific Century: Report
of the Industry Task force on Management &
Leadership skills –now widely known as the
‘Karpin Report’.
48
Karpin report – Key findings
• Attracting and developing quality staff
• Executive management
• HR practitioners are key implementers
• 95% of organisations claim a relationship between
mgt dev & org performance
• 87% of organisations use performance mgt
systems
• Resourcing
49
• Informal v formal learning
• Coaching & mentoring
• Evaluation is critical
• Commitment to management development
2–50
Karpin Report – recommendations
•
•
•
•
•
•
28 recommendations in (1995) some listed below:Development of organisational culture
Leadership initiative
Management for diversity
Frontline manager program
Australian Council for Management Development
As a result of the Karpin Report a significant shift in focus
on management skills began – now all
technical/vocational courses as well as HE have
significant elements of management training
Managers play key role in organisations
successfully doing what they do!
51
Future issues/opportunities:
•
Professor Danny Samson prepared a report
with Innovation & Business Skills Australia Ltd,
where funding was provided by the
Commonwealth Government through the
Department of Education, Employment and
Workplace Relations (DEEWR), this report
named:-
•
•
Karpin Report Revisited:
Leadership and Management Challenges in
Australia, (March, 2011)
52
Future = now to 2030
• 9 themes have been identified from the report
as challenges and opportunities facing
managers and their organisations today and
into the future:• Leadership
• Sustainable development
• Innovation, entrepreneurship
• Management education
53
cont’d
• Diversity
• Global influences and international business
opportunities
• People management
• Risk & volatility
• Australian demographic and culture
2–54
Further challenges exist :Further challenges' that exist for business
management include:• the recent GFC (global financial crisis) which still
has reverberations
• Acts of terrorism
• Technological disruptions
• Extreme weather events
• Unpredictable price fluctuations on important
products and services (eg oil)
55
2–56
Organisations
•
•
Without organisations – no Managers!
Organisation – “deliberate arrangement of
people to accomplish some specific purpose”
(Text page 7)
•
Range from large corporate companies to
small sole-trader businesses, government
departments, charities, clubs
57
Organisations
•
3 Core
Elements/Characteristics of
an organisation:
Purpose
People
Structure
 Distinct Purpose – goals and
objectives
 People – usually more than 1
person required
 Deliberate Structure – many
different types – open,
flexible, rigid
58
Organisations
•
Purpose
Change and evolve over time
People
•
Different structures &
approaches needed
•
Successful managers evolve
and adapt with the changes
in the organisation
Structure
59
FUTURE ISSUES
• Key issues
directly
impacting upon
organisational
performance
Attracting and retaining
talent
• Developing leadership skills
• Emphasis on individual
development needs and
individual effectiveness
• Using performance
management initiatives
Organisations are Changing
• Why are they changing?
The world is changing!: Social, Technological,
Economical, Global – to get the job done (being
successful) organisations must change and
adapt
• What do these changes mean?
For Staff ……?
For Managers …..?
61
Old Structure
Customer
62
New Structure
Layers of
management
reducing.
Top Manager
“Closer”to
Customer
63
Establishing Reporting Relationships:
Tall versus Flat Organizations

Tall Organizations

Flat Organizations
◦ Are more expensive
because of the number
of managers involved.
◦ Lead to higher levels of
employee morale and
productivity.
◦ Foster more
communication problems
because of the number
of people through whom
information must pass.
◦ Create more
administrative
responsibility for the
relatively few managers.
◦ Create more supervisory
responsibility for
managers due to wider
spans of control.
11–64
Things have changed
• The guest is up the top of the pyramid
• The GM is on the bottom
• Higher labour costs
• Fewer associates do the same amount of work
• Organisations are more flexible in their desire to
delight the guest
• Some hotels have rapid response team who
respond to urgent guest needs
65
GUESTS
FRONTLINE ASSOCIATES
FIRST LEVEL MANAGERS
MIDDLE MANAGERS
GM/TOP
MANAGERS
PRESIDENT
66
• Current trends in organisational
structures
• In most T&H organisations there are evidence of a
reduction in middle management.
• The layer of management has been reduced from
an average of seven (7) to just four (4).
• Most assistant managers positions have
disappeared
67