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Im101 Chap1


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Im101 Chap1

  1. 1. Chapter 1: Managers and management <ul><li>Introduction – Who are managers? </li></ul><ul><li>Managers work in organizations and direct the activities of others (operatives). First line managers are often referred to as supervisors and comprise the lowest level of management. </li></ul><ul><li>2. What is management and what managers do? </li></ul><ul><li>Management is the process of getting activities done efficiently with and through other people. </li></ul><ul><li>Henri Fayol proposed that managers perform five management functions: POCCC (Plan, organize, command, coordinate, control). However the functions have been condensed to four: </li></ul>
  2. 2. Chapter 1 i. Planning includes defining goals, establishing strategy, and developing plans to coordinate activities. ii. Organizing is determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom and where decisions are to be made iii. Leading includes motivating subordinates, directing others selecting the most effective communication channels and resolving conflicts iv. Controlling is monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations.
  3. 3. Chapter 1 <ul><li>3. Management roles: </li></ul><ul><li>Interpersonal roles included figurehead, leadership and liaison activities </li></ul><ul><li>Informational roles included monitoring, disseminating, and spoke person activities </li></ul><ul><li>Decisional roles included those of entrepreneur, disturbance handler, resource allocator and negotiator </li></ul><ul><li>Follow up studies Mintzberg’s roles categories in different types of organizations and at different managerial levels within organizations have generally supported the notion that managers perform similar roles </li></ul><ul><li>However the more traditional functions have not been invalidated. Functional approach still useful to classify manager’s job </li></ul>
  4. 4. Chapter 1 <ul><li>Management skill: Managers need certain skills to perform the varied duties and activities associated with being a manager </li></ul><ul><li>Robert L. Katz found through his research that managers need three essential skills or competencies i.e.: </li></ul><ul><li>Technical skills – include knowledge and proficiency in a certain specialized field </li></ul><ul><li>Human skills – ability to work well with other people both individually and in a group </li></ul><ul><li>Conceptual skills – ability to think and to conceptualize about abstract situations, to see the organization as a whole and the relationships among the various subunits, and to visualize how the organization fits into its broader environment </li></ul>
  5. 5. Chapter 1 <ul><li>Is the manager’s job universal? </li></ul><ul><li>All managers perform essentially the same function but lower-level managers emphasize leading while upper level managers spend more time on planning, organizing and controlling </li></ul><ul><li>Manager’s job is about the same in profit and not-for-profit organizations </li></ul><ul><li>Manager’s is small businesses tend to emphasize the spokesperson role and are generalists. But in large organization the structure and manager’s job is formal </li></ul><ul><li>Managers modify their management practice when working in different countries / states. </li></ul>
  6. 6. Chapter 1 <ul><li>Why study management? </li></ul><ul><li>We interact with organizations every day of our lives. Every product we use and every action we take is provided or affected by organizations. These organizations require managers </li></ul><ul><li>Upon graduating, you will either be manage or be managed. A course/subject about management provides understanding of management in a organization. </li></ul>
  7. 7. Chapter 2 : The evolution of management Management theories Classical theorists Classical theorists Quantitative approach Organizational behavior Scientific management General administrative theorists
  8. 8. Chapter 2 <ul><li>THE EARLY YEARS </li></ul><ul><li>From 1901 to 40s was a period of contrasts in management thought. Four approaches to management i.e. scientific management, general administrative, organizational behavior (human resource/people side) and quantitative. </li></ul><ul><li>Scientific management </li></ul><ul><li>The use of the scientific method (conduct experiment- testing of hypothesis) to define the ‘one best way’ for a job to be done. Frederick Taylor is known as the ‘father’ of scientific management. He sought to create a mental revolution among both workers and managers by defining clear guidelines for improving production efficiency. Using the four principles of scientific management i.e.: </li></ul>
  9. 9. Chapter 2 <ul><li>Develop a science for each element of an individual’s work, which replaces the old rule-of-thumb method </li></ul><ul><li>Scientifically select and then train, teach and develop the worker. (Previously, workers chose their own work and trained themselves as best they could) </li></ul><ul><li>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 </li></ul><ul><li>Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers. (Previously almost all the work and the greater part of the responsibility were thrown upon the workers) </li></ul>
  10. 10. Chapter 2 <ul><li>Frank and Lillian Gilbreth were inspired by Taylor’s work and went to study and develop their own methods of scientific management </li></ul><ul><li>Frank is known for this experiments in reducing the number of motions in bricklaying </li></ul><ul><li>The Gilbreth’s were among the first to use motion picture films to study hand and body motions </li></ul><ul><li>Henry L. Gantt was a close associate of Taylor at the steel plants. Gantt also sought to increase worker efficiency through scientific investigation. He devised an incentive system and most noted for this development of the Gantt chart – for planning and controlling work. </li></ul>
  11. 11. Chapter 2 <ul><li>B. General administrative theorists </li></ul><ul><li>Focus on the entire organization developing more general theories of what managers do and what constitutes good management practice. The most prominent of the general administrative theorists were Henri Fayol, Max Weber and Ralph Davis. This group and the group of scientific management theorists are often referred to as the classical theorists. </li></ul><ul><li>Henri Fayol was the managing director of a large French coal mining firm. Whereas Taylor is a scientist and was concerned with first line management i.e. supervisor, and used scientific method, Fayol’s attention was directed at the activities of all manager levels and he wrote from personal experience. He developed 14 principles of management – fundamental or universal truths – that can be taught in any business, government, university, school and even home </li></ul>
  12. 12. Chapter 2 <ul><li>Division of work- specialization increases output </li></ul><ul><li>Authority- able to give order, responsibility arise with the order </li></ul><ul><li>Discipline- Obey the rules that administrate the organization </li></ul><ul><li>Unity of command- worker receive order from one superior </li></ul><ul><li>Unity of direction- One master plan to achieve main objectives </li></ul><ul><li>Subordination of minor objectives to the major objectives </li></ul><ul><li>Remuneration- Worker paid a fair wage for the service given </li></ul><ul><li>Centralization- Degree subordinate involve in decision making </li></ul><ul><li>Scalar chain- The line authority from top to lowest ranks </li></ul><ul><li>Order- People and material at the right place and time </li></ul><ul><li>Equity- Managers should be kind and fair to subordinates </li></ul><ul><li>Stability of tenure of personnel- Orderly personnel planning </li></ul><ul><li>Initiative- Workers allowed to originate and carry out plan </li></ul><ul><li>Esprit de corps- Team spirit will build harmony and unity </li></ul>
  13. 13. Chapter 2 <ul><li>Max Weber is a German sociologist develop a theory of authority structures and described organizational activity based on authority relations and called the ideal form of organization a bureaucracy . </li></ul><ul><li>Division of labor- Jobs are broken down into simple, routine and well defined tasks </li></ul><ul><li>Authority hierarchy- Lower positions are controlled by a higher one </li></ul><ul><li>Formal selection- based on training, education or formal education </li></ul><ul><li>Formal rules and regulations- Regulate the actions of workers </li></ul><ul><li>Impersonality- Rules and controls are applied to all and to avoid personal preferences of workers </li></ul><ul><li>Career orientation- Managers are professional officials rather than owners of the business they manage </li></ul>
  14. 14. Chapter 2 <ul><li>C. ORGANISATIONAL BEHAVIOR (OB)/HUMAN RESOURCE (HR) APPROACH </li></ul><ul><li>In the late 1800s and early 1900s four individual stand out as early advocates of the OB approach: Robert Owen, Hugo Munsterburg, Mary Parker Follet and Chester Barnard </li></ul><ul><li>Owen is a social reformer and believe money spent on improving labor was one of the best investments, e.g. work hours regulated, child labor outlawed, public education, meals at work and involved in community projects, to reduce suffering. </li></ul><ul><li>Munsterburg created the field of industrial psychology- the scientific study of individuals at work to maximize their productivity and adjustment </li></ul>
  15. 15. Chapter 2 <ul><li>Parker was a social philosopher who thought the manager’s job was to harmonize and coordinate group efforts. </li></ul><ul><li>Barnard was a president at New Jersey Bell Telephone Company saw organizations as social systems that required human cooperation whose ideas bridged the classical and OB/HR viewpoints. He believed that manager’s major roles were to communicate and stimulate subordinates to high levels of effort </li></ul><ul><li>The Hawthorne Studies were the most important contribution to OB/HR approach. These were a series of experiments conducted from 1927 to 1932 at Western Electric Company’s Hawthorne Works e.g. the effect of various illumination levels on worker productivity, the effect of money in determining output compare to a group standards, group sentiment and security. The studies provided insight into group norms and behavior </li></ul>
  16. 16. Chapter 2 <ul><li>Human relations movement in 1930s believed that satisfied workers would be productive. Dale Carnegie, Abraham Maslow and Douglas McGregor whose views were shaped more by their personal philosophies than by substantive research evidence. </li></ul><ul><li>Carnegie said that the way to success was winning the cooperation of others by (1) making others feel important through a sincere appreciation of their efforts (2) making a good first impression (3) winning people to your way of thinking by letting others do the talking, being sympathetic and ‘never telling a man he is wrong’ and (4) changing people by praising their good traits and giving the offender the opportunity to save face. </li></ul>
  17. 17. Chapter 2 <ul><li>Maslow, a humanistic psychologist, proposed a theoretical hierarchy of five needs: physiological, safety, social, esteem and self actualization. In terms of motivation, each step in the hierarchy must be satisfied before the next can be activated, and once a need was substantially satisfied it no longer motivated behavior. </li></ul><ul><li>McGregor is best known for this formulation of two sets of assumptions on human nature- Theory X; presents an essentially negative view of people e.g. little ambition, dislike work, avoid responsibility and need to be closely directed to work effectively; and Theory Y; assumes people can exercise self direction, accept responsibility and consider work to be as natural as rest or play. </li></ul>
  18. 18. Chapter 2 <ul><li>Behavioral Science Theorists (BST) are a group of psychologists and sociologists; e.g. Fieldler, Vroom, Herzberg, Locke and Perrow; who relied on the scientific method for the study of OB/HR. Unlike the theorists of the human relations movement, the BST engaged in objective research of human behavior in organization. They sought to develop rigorous research designs that could be replicated by other behavioral scientists. </li></ul><ul><li>Both the scientific and administrative approaches viewed organizations as machines with managers as the engineers which make the jobs monotonous resulting worker resentment. OB/HR approach forced managers to reassess the simplistic machine model view. </li></ul>
  19. 19. Chapter 2 <ul><li>D. QUATITATIVE APPROACH </li></ul><ul><li>This approach evolved out of the development of mathematical statistical solutions to military problems during World War 2. This approach also has been called operation research or management science. It includes applications of statistics, optimization models, information models and computer simulations. The quantitative approach has contributed most directly to management decision making, particularly in planning controlling decisions. </li></ul>
  20. 20. Chapter 2 <ul><li>RECENT YEARS: TOWARD INTEGRATION </li></ul><ul><li>Like most fields of study, management in its maturity has moved towards integration. The Tavistock Institute, London, which grew out of the World War 2 was concerned with disruptions to social systems caused by the introduction of new technology. The work led to a concept called Sociotechnical Systems, which is the idea that new technology should be introduced to organizations with the least disruption to the social systems of the organizations. Joan Woodward concluded that an organization’s structure and management systems should vary with the production technology of the firm from the research done at a manufacturing organization between in 1953 and 1957. </li></ul>
  21. 21. Chapter 2 <ul><li>In 1961 Professor Harold Koontz concluded that there existed a ‘management theory jungle’. Koontz conceded that each of the diverse approaches had something to offer management theory but demonstrate that (1) the OB/HR and quantitative approaches were not equivalent to the field management but rather were tools to be used by managers and (2) a process approach could encompass and synthesize the diversity of the times. The process approach , originally introduced by Fayol, is based on the management functions; planning, organizing, leading and controlling; is seen as circular and continuous. In 1960s that the systems approach was recognized the interdependency of internal activities in the organization (closed system) and between the organization and its external environment (open system). The third approach in integrating different management theories during 1900s is the contingency approach that helped in identification of situational variables, e.g. politic, technology and etc., that affect managerial actions and organization performance. </li></ul>
  22. 22. Chapter 2 <ul><li>A number of trends and issues affecting manager’s job are: </li></ul><ul><li>Work force diversity refers to employees in organizations who are heterogenous in terms of gender, race, ethnicity or other characteristics. The challenge for manager is to make their organizations more accommodating to diverse groups of people by addressing different lifestyles, family needs and work styles </li></ul><ul><li>Ethics and the perceived decline in ethical standards are receiving much attention. Behaviors that once were thought to be disgraceful, unfortunately have become to many business people, acceptable or necessary business practices e.g. bribes. </li></ul><ul><li>Stimulating innovation and change has become a critical activity for managers. Many of the past guidelines, created for a more stable and predictable world no longer apply. </li></ul>
  23. 23. Chapter 2 <ul><li>Total Quality Management (TQM) is a philosophy of management that is driven by customer needs and expectations with the objective to create an organization committed to continuous improvement. TQM was inspired mainly by Edwards Deming. TQM represents a counter point to earlier management theorists who believed that low costs were the only road to increased productivity. </li></ul><ul><li>Reengineering is a term coined by former MIT computer science professor Michael Hammer refers to a radical redesign of all or part of a company’s work processes to improve productivity and financial performance. Traditional assumptions and approaches are questioned. The essence of reengineering is the question ‘How would we design this structure and processes if we started from scratch?’ </li></ul><ul><li>Empowerment is increasing the decision making discretion of workers. It builds on ideas originally expounded by the OB/HR theorists. </li></ul><ul><li>The bimodal workforce refers to the fact that employees tend to perform either low skilled service jobs for near minimum wage or high skilled well paying jobs. </li></ul>
  24. 24. Chapter 2 <ul><li>Many managers, executives and other professionals have seen their jobs disappear due to various reasons. Downsizing describes organizational restructuring efforts in which individuals are laid off from their jobs. Even employees who survive a downsizing find themselves anxious and uncertain. The positive aspects for downsizing survivors is that they often get to learn new skills and gain broader job experience. </li></ul><ul><li>Contingent workers are part time, temporary or free lance employees may due to downsizing, advantages offered by contingent work e.g. skilled worker, and etc. The key in managing contingent workers successfully is to treat these workers fairly and flexibly and not treated as second class citizens in the workplace. In fact, keeping the entire workforce motivated, creatively involved and committed to doing a good job is the real work of today’s and future managers. </li></ul>