Management: An Overview
What Is An Organization?

An Organization Defined
◦ A deliberate arrangement of people to
accomplish some specific purpose (that
individuals independently could not
accomplish alone).
◦ A collections of people who work together
and coordinate their actions to achieve a wide
variety of goals
What is an Organization

Common Characteristics of
Organizations
◦ Have a distinct purpose (goal)
◦ Composed of people
◦ Have a deliberate structure
The Changing Organization
What is Management?


Management is the force that unifies
human as well as non-human resources in
the service of organizational goals.
It is the attainment of organizational goals
in an efficient and effective manner
through planning, organizing, leading and
controlling organizational resources.
What is Management?


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Definition: Coordinating work activities so
that they are completed efficiently and
effectively with and through other people
Efficiency: “Doing things right”; getting the
most output from the least input
Effectiveness: “Doing the right things”;
completing activities so that the organization’s
goals are attained.
What is Management?

Resources include people, skills, know-how
and experience, machinery, raw materials,
computers and IT, patents, financial capital,
and loyal customers and employees
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Management in Organizations
Planning
and decision
Organizing
making
Inputs from the environment
• Human resources
Goals attained
• Financial resources
• Efficiently
• Physical resources
• Effectively
• Information resources
Controlling
Leading
The Management Process
Planning and
Decision Making
Setting the organization’s goals and
deciding how best
to achieve them
Controlling
Monitoring
and correcting
ongoing activities
to facilitate goal
attainment
Organizing
Determining how
best to group
activities and
resources
Leading
Motivating members
of the organization
to work in the best
interests of the
organization
Management Functions
Classical
Management Functions
Updated
Management Functions
Planning
Making Things Happen
Organizing
Meeting the Competition
Staffing
Leading
Controlling
Organizing People,
Projects, and Processes
Four Functions of Management
Planning
Process of identifying and selecting
appropriate organizational goals and
courses of action
112
Steps in the Planning Process

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Deciding which goals the organization will
pursue
Deciding what courses of action to adopt
to attain those goals
Deciding how to allocate organizational
resources
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Planning
Complex, difficult activity
 Strategy to adopt is not always immediately
clear
 Done under
uncertainty

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Organizing
Task managers perform to create a structure
of working relationships that allow
organizational members to interact and
cooperate to achieve organizational goals
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Organizing
Involves grouping people into departments
according to the kinds of job-specific tasks
they perform
 Managers lay out lines of authority and
responsibility
 Decide how to coordinate organizational
resources

116
Organizational Structure
A formal system of task and reporting
relationships that coordinates and motivates
members so that they work together to
achieve organizational goals
117
Leading
Articulating a clear organizational vision for its
members to accomplish, and energize and
enable employees so that everyone
understands the part they play in achieving
organizational goals
118
Leading

Leadership involves using power, personality,
and influence, persuasion, and
communication skills

Outcome of leadership is highly motivated
and committed workforce
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Controlling

Task of managers is to evaluate how well an
organization has achieved its goals and to
take any corrective actions needed to
maintain or improve performance
◦ The outcome of the control process is the ability to
measure performance accurately and regulate
organizational efficiency and effectiveness
120
Organizational Performance
A measure of how efficiently and effectively
managers use available resources to satisfy
customers and achieve organizational goals
121
Effectiveness and Efficiency in Management
Organizational Performance
Efficiency
◦ A measure of how well or how productively
resources are used to achieve a goal
Effectiveness
◦ A measure of the appropriateness of the goals an
organization is pursuing and the degree to which
they are achieved.
Productivity
◦ It is a measure of output from a production
process, per unit of input.
124
Management is…
Getting work
done through
others
Efficiency
Effectiveness
Characteristics of Management
1.
2.
3.
4.
5.
6.
7.
8.
9.
Management is Intangible
Management is Goal-oriented
Management is Universal
Management is a Social Process
Management is a group activity
Management is a system of authority
Management is an activity
Management is multidisciplinary
Management is a Science as well as an Art
Why Study Management?

The Value of Studying Management
◦ The universality of management
 Good management is needed in all organizations.
◦ The reality of work
 Employees either manage or are managed.
◦ Rewards and challenges of being a manager
 Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
 Successful managers receive significant monetary rewards for
their efforts.
1–27
Universal Need for Management
Who Are Managers?

Manager
◦ Someone who coordinates and oversees the work of
other people so that organizational goals can be
accomplished.
◦ The people responsible for supervising the use of an
organization’s resources to meet its goals
1–29
Managerial Tasks

Managers at all levels in all organizations
perform each of the four essential
managerial tasks of planning, organizing,
leading, and controlling
130
Classifying Managers

First-line Managers
◦ Individuals who manage the work of nonmanagerial employees.

Middle Managers
◦ Individuals who manage the work of first-line
managers.

Top Managers
◦ Individuals who are responsible for making
organization-wide decisions and establishing plans
and goals that affect the entire organization.
1–31
Levels of Management
Top Level Management
Middle Level Management
First-Line
Management
CEO
COO
CIO
General Mgr
Plant Mgr
Regional Mgr
Office Manager
Shift Supervisor
Department Manager
Team Leader
Top Managers
Responsible for…
Creating a context for change
Developing attitudes of commitment
and ownership in employees
Creating a positive organizational
culture through language and action
Monitoring their business environments
Middle Managers
Responsible for…
Setting objectives consistent with top
management goals, planning strategies
Coordinating and linking groups,
departments, and divisions
Monitoring and managing the performance
of subunits and managers who report to them
Implementing the changes or strategies
generated by top managers
First-Line Managers
Responsible for…
Managing the performance of
entry-level employees
Teaching entry-level employees
how to do their jobs
Making schedules and operating plans based on
middle management’s intermediate-range plans
What Companies Look for in Managers
Technical Skills
Human Skill
Conceptual Skill
Design Skill
Skills and
the
Manager
Managerial Skills

Conceptual skills
◦ The ability to analyze and diagnose a situation and
distinguish between cause and effect.

Human skills
◦ The ability to understand, alter, lead, and control the
behavior of other individuals and groups.

Technical skills
◦ Job-specific skills required to perform a particular type of
work or occupation at a high level.
138
Fundamental Management Skills

Management Skill Mixes at Different
Organizational Levels
Core skills and their use in the
different levels
Managerial levels
Lower
Middle
Top
Conceptual skills
Human skills
Technical skills
What Managers Actually Do
(Mintzberg)

Interaction
◦ with others
◦ with the organization
◦ with the external context of
the organization

Reflection
◦ thoughtful thinking

Action
◦ practical doing
What do Manager’s do :
Managerial Roles
Interpersonal
Informational
Decisional
Figurehead
Monitor
Entrepreneur
Leader
Disseminator
Disturbance
Handler
Liaison
Spokesperson
Resource
Allocator
Negotiator
Decisional Roles
Roles associated with methods managers use in
planning strategy and utilizing resources.
◦ Entrepreneur—deciding which new projects or
programs to initiate and to invest resources in.
◦ Disturbance handler—managing an unexpected
event or crisis.
◦ Resource allocator—assigning resources between
functions and divisions, setting the budgets of lower
managers.
◦ Negotiator—reaching agreements between other
managers, unions, customers, or shareholders.
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Interpersonal Roles
Roles that managers assume to provide direction and
supervision to both employees and the organization as a
whole.
◦ Figurehead—symbolizing the organization’s mission and
what it is seeking to achieve.
◦ Leader—training, counseling, and mentoring high
employee performance.
◦ Liaison—linking and coordinating the activities of
people and groups both inside and outside the
organization.
144
How The Manager’s Job Is
Changing

The Increasing Importance of Customers
◦ Customers: the reason that organizations exist
 Managing customer relationships is the responsibility of
all managers and employees.
 Consistent high quality customer service is essential for
survival.

Innovation
◦ Doing things differently, exploring new territory,
and taking risks
 Managers should encourage employees to be aware of
and act on opportunities for innovation.
Management Theory

Pre-Classical
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Classical Approaches
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Behavioral Approaches
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Frederick Taylor: Scientific Management (1886)
Frank and Lillian Gilbreth: Time/motion studies (later 1800s)
Henri Fayol: 14 Principles of Management (1880s-1890s)
Max Weber : Bureaucracy (1920s)
The Hawthorne Experiment (1927)
MacGregor’s Theory X and Theory Y (1960)
Quantitative Approaches
Contemporary Approaches
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
Ouchi’s Theory Z (1981)
Contingency Management
Challenges for Management in
a Global Environment
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Rise of Global Organizations.
Building a Competitive Advantage
Maintaining Ethical Standards
Managing a Diverse Workforce
Utilizing Information Technology and Technologies
Global Crisis Management
147
Classical Approaches
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Frederick Taylor: Scientific Management
(1886)
Frank and Lillian Gilbreth: Time and motion
studies (later 1800s)
Henri Fayol: Fourteen Principles of
Management (1880s-1890s)
Max Weber : Bureaucracy (1920s)
Frederick W. Taylor
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Developed Scientific Management
Laid foundation for the study of management
Key ideas:
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Management as a separate field of study
Explicit guidelines for scientific study of
management functions
Time studies for setting standards
Functional specialization of managers’ duties
Piece-rate Incentive systems
Taylor’s Principles of Management
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The “one best way.”
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Scientific selection of personnel
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Put right worker in right job, find limitations, train
Financial incentives
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Management using scientific observation
Putting right worker in right job not enough
A system of financial incentives is also needed
Functional foremanship
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Division of labor between manager and workers
Manager plans, prepares, inspects
Worker does the actual work
“Functional foremen” , specialized experts,
responsible for specific aspects of the job
Frank & Lillian Gilbreth
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Time and motion efficiency experts
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Developed therbligs, breakdown of manual skills
into 16 actions
Frank was a lazy bricklayer looking for an
easier way and Lillian was a psychologist.
Endorsed piece-work and suggested a higher
rate per unit if his directions were followed.
Disagreed with Taylor’s idea that
management should choose which workers
took which jobs.
Henri Fayol
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First came up with the five basic
functions of management—Planning,
Organizing, Staffing, Directing,
Communicating, and Controlling
First wrote that management is a set of
principles which can be learned.
Developed Fourteen Principles of
Management
HENRI FAYOL’s
FOURTEEN PRINCIPLES OF MANAGEMENT
1. Specialization of labor. Specializing encourages
continuous improvement in skills and the development of
improvements in methods.
2. Authority. The right to give orders and the power to exact
obedience.
3. Discipline. No slacking, bending of rules.
4. Unity of command. Each employee has one and only one
boss.
5. Unity of direction. A single mind generates a single plan
and all play their part in that plan.
6. Subordination of Individual Interests. When at work,
only work things should be pursued or thought about.
7. Remuneration. Employees receive fair payment for
services, not what the company can get away with.
8. Centralization. Consolidation of management
functions. Decisions are made from the top.
9. Scalar Chain (line of authority). Formal chain
of command running from top to bottom of the
organization, like military
10. Order. All materials and personnel have a
prescribed place, and they must remain there.
11. Equity. Equality of treatment (but not
necessarily identical treatment)
12. Personnel Tenure. Limited turnover of
personnel. Lifetime employment for good workers.
13. Initiative. Thinking out a plan and do what it
takes to make it happen.
14. Esprit de corps. Harmony, cohesion among
personnel.
Max Weber
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Coined “bureaucracy”: the perfect office
Well defined chain of command
Clear division of work (job descriptions)
Procedures for any situation
Impersonality
Employment and promotion based on
technical competence.
Behavioral Approaches
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The Hawthorne Experiment (1927)
Chester Barnard (1930s – 1960s)
Herbert Simon (1947)
MacGregor’s Theory X and Theory Y (1960)
The Hawthorne Experiment

Research conducted at the Hawthorne plant
of the Western Electric Company near
Chicago, 1927-1937

Initial study: effects of lighting on worker
performance
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But the “Hawthorne Effect” was instead
identified
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The workers values, desires, and needs may be
more important than physical conditions.
Workers want to have input.
Workers want to be respected.
Theories X and Y
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Conducted in 1960s by Douglas McGregor
Theory X: classical theory
 Most people dislike work and responsibility,
they are motivated only by money and do
not care about the job.
 Close supervision is required and people
must be carefully controlled and coerced
into working
 Average person prefers direction
Theories X and Y

Theory Y: Modern Management Theory
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People often enjoy their work and will exercise
self-control at work.
People are motivated by wanting to do a good job
and will do well if the opportunity is presented
People have capacity for imagination, ingenuity,
and creativity
People enjoy expending physical and mental effort
in work as much as play and rest
Contemporary Approaches
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Ouchi’s Theory Z (1981)
Contingency Management
Ouchi’s Theory Z
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Theory Z
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Value of culture in an industrial society
Intimate and cooperative work
relationships
Alienated in work environment in which
family ties, traditions, and social
institutions are minimized
Workers have strong sense of moral
obligation, discipline and order
Contingency Management
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Managing in Different and Changing
Situations
Require managers to use different approaches and
techniques
Contingency perspective - different ways of
managing are required in different organizations
and different circumstances
 stresses that there are no simplistic or universal
rules
contingency variable
© Prentice Hall, 2002

Brief
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Behavioral
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Quantitative Approach
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Mary Parker Follet : “Power Sharing”
Chris Argyris: Model I & Model II Organisations
Management Science
Operation Management
MIS
System Theory