Principles and Practices for Tomorrow’s Leaders
Gary Dessler
CHAPTER
1
The Environment and Foundations
of Modern Management
The Environment of Managing
PowerPoint Presentation by Charlie Cook
Copyright © 2004 Prentice Hall, Inc. All rights reserved.
Chapter Objectives
After studying this chapter and the case exercises at
the end, you should be able to:
1. List the specific management tasks facing the
person in charge.
2. Identify the manager, and explain how that
person’s job differs from that of others.
3. Answer the question, “Do I have what it takes to
be a manager?”
4. List and describe five things a manager can
learn from the evolution of management
thought.
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1–2
Chapter Objectives (cont’d)
5. Explain what environmental forces are
influencing the manager’s business.
6. List the reasons why a manager should use a
particular management approach.
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1–3
Organization Defined
• Organization
 A group of people with formally assigned roles who
work together to achieve the stated goals of the
group.
 Characteristics:
 Common
purpose/goals
 Organizational structure
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1–4
Management Defined
• Manager
 A person who plans, organizes, leads, and controls
the work of others so that the organization achieves
its goals.
 Is
responsible for contribution.
 Gets things done through the efforts of other people.
 Is skilled at the management process.
• Management Process
 Refers to the manager’s four basic functions of
planning, organizing, leading, and controlling.
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1–5
Mintzberg’s Managerial Roles
• Figurehead
• Leader
• Liaison
• Spokesperson
• Negotiator
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1–6
The Manager as Innovator
• The Entrepreneurial Process
 Getting employees to think of themselves as
entrepreneurs.
• The Competence-Building Process
 Working hard to create an environment that lets
employees really take charge.
• The Renewal Process
 Guarding against complacency by encouraging
employees to question why they do things as they
do—and if they might do them differently.
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1–7
Types of
Managers
FIGURE 1–1
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1–8
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1–9
Do You Have the Traits to Be a Manager?
• Personality and Interests
 Social Orientation
 Attracted
to working with others in a helpful or
facilitative way; comfortable dealing with people.
 Enterprising Orientation
 Enjoy
working with people in a supervisory or
persuasive way in order to achieve some goal.
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1–10
Do You Have the Traits to Be a Manager?
(cont’d)
• Competencies
 Managerial Competence
 The
motivation and skills required to gain a
management position, including intellectual
(analytical), emotional, and interpersonal skills.
 Career Anchor
 A dominant
concern or value that directs an
individual’s career choices and that the person
will not give up if a choice must be made.
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1–11
The Managerial Skills
• Technical Skills
 The need to know how to plan, organize, lead, and
control.
• Interpersonal Skills
 An understanding of human behavior and group
processes, and the feelings, attitudes, and motives of
others, and ability to communicate clearly and
persuasively.
• Conceptual Skills
 Good judgment, creativity, and the ability to see the
“big picture” when confronted with information.
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1–12
The Foundations Of Modern
Management
• The Classical and Scientific School
 Frederick Winslow Taylor and Scientific
Management
1.
2.
3.
4.
The “one best way”
Scientific selection of personnel
Financial incentives
Functional foremanship
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1–13
The Foundations Of Modern
Management (cont’d)
• The Classical and Scientific School (cont’d)
 Frank and Lillian Gilbreth and Motion Study

Analyzed physical motion and work processes to
improve worker efficiency.
 Henri Fayol and the Principles of Management



Defined the functions of management
Published “General and Industrial Management”
Advocated “chain of command”
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1–14
The Foundations Of Modern
Management (cont’d)
• The Classical and Scientific School (cont’d)
 Max Weber and the Bureaucracy






A well-defined hierarchy of authority
A clear division of work
A system of rules covering the rights and duties of
position incumbents
A system of procedures for dealing with the work
situation
Impersonality of interpersonal relationships
Selection for employment, and promotion based on
technical competence
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1–15
The Foundations Of Modern
Management (cont’d)
• The Behavioral School
 The Hawthorne Studies

Researchers found that it was the social situations of
the workers, not just the working conditions, that
influenced behavior at work.
 The Human Relations Movement

Emphasized that workers were not just “givens” in the
system. Workers have needs and desires that
organizations have to accommodate.
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1–16
Douglas McGregor: Theory X and
Theory Y
• Theory X
 Most people dislike work and responsibility and prefer
to be directed.
 They are motivated not by the desire to do a good
job, but simply by financial incentives.
 Most people must be closely supervised, controlled,
and coerced into achieving organizational objectives.
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1–17
Douglas McGregor: Theory X and
Theory Y (cont’d)
• Theory Y
 People wanted to work hard.
 People could enjoy work.
 People could exercise substantial self-control.
 Managers could trust employees if managers treated
them right.
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1–18
The Foundations Of Modern
Management (cont’d)
• The Behavioral School (cont’d)
 Rensis Likert and the Employee-Centered
Organization



Less effective organizations have a “job-centered”
focus: specialized jobs, emphasis on efficiency, and
close supervision of workers.
Effective “employee-centered” organizations build
effective work groups with high performance goals.”
Participation is an important approach employed by
high-producing managers.
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1–19
Bridging the Eras: The Administrative
School
• Chester Barnard’s “Zone of Indifference”
 A range of orders that a worker will willingly accept
without consciously questioning their legitimacy.
 Managers
have to provide sufficient inducements (and
not just financial ones) to make each employee’s zone
of indifference wider.
• Herbert Simon and Managerial Influence
 Use the classicists’ command and control approach.
 Foster
employee self-control by providing better
training, encouraging participative leadership, and
developing commitment and loyalty.
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1–20
The Quantitative/Management Science
School
• The Management Science Approach
 Operations Research/ Management Science
 Seeks
optimal solutions to management problems
through research and the use of scientific analysis and
tools.
 The Systems Approach
 The
view that an organization exists as a set of
interrelated subsystems that all contribute internally to
the organization’s purpose and success while
interacting with the organization’s external environment.
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1–21
The Situational/Contingency School
• Contingency View of Management.
 The organization and how its managers should
manage it are contingent on the company’s
environment and on technology.
 Tom Burns and G. M. Stalker
 Mechanistic
organizations
 Organic organizations
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1–22
Today’s Management Environment
• Globalization
 The tendency of firms to extend their sales,
ownership, and/or manufacturing to new markets
abroad.
• Technological Advances
• The Nature of Work
• The Workforce
• Category Killers
• Modern Management Thought
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1–23
Fundamental Changes Facing Managers
FIGURE 1–2
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1–24
Basic Management Features Today
• Smaller, More
Entrepreneurial
Organizational Units
• Team-Based and
Boundaryless
Organizations
• Empowered DecisionMaking
• Flatter Organizational
Structures, KnowledgeBased Management
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• New Bases of
Management Power
• Knowledge-Based
Management
• An Emphasis on Vision
• Leadership Is Key
1–25
The Evolution of a Faster Business Model
Source: Harvard Business Review, March–April 1998, p. 82. Copyright ©
1998 by the President and Fellows of Harvard College. All rights reserved.
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FIGURE 1–3
1–26
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1–27