MBA MCO101 Unit 1 Lecture 2 20080621


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MBA MCO101 Unit 1 Lecture 2 20080621

  1. 1. Unit 1: Management, Managers and evolution of Management theory
  2. 2. Managing Expectations <ul><li>LEARNING OUTCOMES: </li></ul><ul><li>At the end of the course, students will be able to: </li></ul><ul><ul><li>Explain fundamental concepts and principles of management including the basic roles, skills, and functions of management </li></ul></ul><ul><ul><li>Discuss the knowledgeable of historical development, theoretical aspects and practice application of managerial process </li></ul></ul><ul><ul><li>Examine the environment, technology, human resources, and organizations in order to achieve high performance </li></ul></ul><ul><ul><li>Discuss the ethical dilemmas faced by managers and the social responsibilities of businesses. </li></ul></ul>
  3. 3. Managing Expectations <ul><li>SUBJECTS DISCUSSED: </li></ul><ul><ul><li>Management, Managers and evolution of Management theory </li></ul></ul><ul><ul><li>Personality traits and diversity </li></ul></ul><ul><ul><li>Organisation, Globalisation and the resulting environments </li></ul></ul><ul><ul><li>Decision-making and Planning </li></ul></ul><ul><ul><li>Structure and Strategy </li></ul></ul><ul><ul><li>Executing and Controlling </li></ul></ul><ul><ul><li>Human Resources Management as a function </li></ul></ul><ul><ul><li>Motivation, Leadership, Groups and Teams </li></ul></ul><ul><ul><li>Communication, conflicts and politics </li></ul></ul><ul><ul><li>Operations Management. Entrepreneurship. Innovation </li></ul></ul>
  4. 4. Managing Expectations <ul><li>TOPIC DETAILS: </li></ul><ul><li>After going through UNIT 1, you should be able to: </li></ul><ul><ul><li>Describe what management is. </li></ul></ul><ul><ul><li>Explain the four functions of management. </li></ul></ul><ul><ul><li>Describe different kinds of managers. </li></ul></ul><ul><ul><li>Explain the major roles and sub roles that managers perform in their jobs. </li></ul></ul><ul><ul><li>Explain what companies look for in managers. </li></ul></ul><ul><ul><li>Discuss the top mistakes that managers make in their jobs. </li></ul></ul><ul><ul><li>Describe the transition that employees go through when they are promoted to management. Explain the origins of management </li></ul></ul><ul><ul><li>Explain the history of scientific management. </li></ul></ul><ul><ul><li>Discuss the history of bureaucratic and administrative management. </li></ul></ul><ul><ul><li>Explain the history of human relations management. </li></ul></ul><ul><ul><li>Discuss the history of operations, information systems, and contingency management. </li></ul></ul>
  5. 5. What is Management? <ul><li>Management is: </li></ul>Effectiveness Efficiency Getting work done through others
  6. 6. Management Function <ul><li>PLANNING </li></ul>ORGANISING CONTROLLING LEADING
  7. 7. Planning <ul><li>PLANNING </li></ul>Determining organisational goals and a means for achieving them
  8. 8. Organising <ul><li>ORGANISING </li></ul><ul><li>Deciding where decisions will be made </li></ul><ul><li>Who will do what jobs and tasks </li></ul><ul><li>Who will work for whom </li></ul>
  9. 9. Leading <ul><li>LEADING </li></ul>Inspiring Motivating For Anne Mulcahy, CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers.
  10. 10. Controlling <ul><li>CONTROLLING </li></ul>Monitoring progress toward goal achievement and taking corrective action when needed
  11. 11. Controlling Process Set standards to achieve goals Compare actual performance to standards Make changes to return performance to standards
  12. 12. Kinds of Managers <ul><li>Top Managers </li></ul><ul><li>Middle Managers </li></ul><ul><li>First-Line Managers </li></ul><ul><li>Team Leaders </li></ul>
  13. 13. Kinds of Managers
  14. 14. Top Managers <ul><li>Chief Executive Officer (CEO) </li></ul><ul><li>Chief Operating Officer (COO) </li></ul><ul><li>Chief Financial Officer (CFO) </li></ul><ul><li>Chief Information Officer (CIO) </li></ul>Generally responsible for Creating a context for change Developing commitment and ownership in employees Creating a positive organisational culture through language and action Monitoring their business environments
  15. 15. Middle Managers <ul><li>Plant Manager </li></ul><ul><li>Regional Manager </li></ul><ul><li>Divisional Manager </li></ul>Generally responsible for Coordinate and link groups, departments, and divisions Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers Plan and allocate resources to meet objectives
  16. 16. First Line Managers <ul><li>Office Manager </li></ul><ul><li>Shift Supervisor </li></ul><ul><li>Department Manager </li></ul>Generally responsible for Manage the performance of entry-level employees Encourage, monitor, and reward the performance of workers Teach entry-level employees how to do their jobs Make detailed schedules and operating plans
  17. 17. Team Leaders <ul><li>Team Leaders </li></ul>Generally responsible for Facilitate team performance Facilitate internal team relationships Manage external relations
  18. 18. Managerial Roles <ul><li>Interpersonal </li></ul><ul><li>Figurehead </li></ul><ul><li>Leader </li></ul><ul><li>Liaison </li></ul><ul><li>Informational </li></ul><ul><li>Monitor </li></ul><ul><li>Disseminator </li></ul><ul><li>Spokesperson </li></ul><ul><li>Decisional </li></ul><ul><li>Entrepreneur </li></ul><ul><li>Disturbance Handler </li></ul><ul><li>Resource Allocator </li></ul><ul><li>Negotiator </li></ul>
  19. 19. Interpersonal Role Monitor: Managers scan their environment for information Disseminator: Managers share information with others in their company Spokesperson: Managers share information with others outside their departments or companies
  20. 20. Informational Role Figurehead: Managers perform ceremonial duties Leader: Managers motivate and encourage workers to accomplish objectives Liaison: Managers deal with people outside their units
  21. 21. Decisional Role Entrepreneur: Managers adapt to incremental change Disturbance Managers respond to problems that Handler: demand immediate action Resource Allocator: Managers decide who gets what resources Negotiator: Managers negotiate schedules, projects, goals, outcomes, resources, and raises
  22. 22. What Companies Look for in Managers Conceptual Skills Motivation to Manage Technical Skills Human Skills
  23. 23. What Companies Look for in Managers Skills are more or less important at different levels of management:
  24. 24. Mistakes Managers Make Adapted from Exhibit 1.6 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983 1. Insensitive to others 2. Cold, aloof, arrogant 3. Betrayal of trust 4. Overly ambitious 5. Specific performance problems with the business 6. Overmanaging: unable to delegate or build a team 7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style 10. Overdependent on advocate or mentor
  25. 25. Manager’s transition <ul><li>Be the boss </li></ul><ul><li>Formal authority </li></ul><ul><li>Manage tasks </li></ul><ul><li>Job is not managing people </li></ul><ul><li> </li></ul><ul><li>Initial expecta- tions were wrong </li></ul><ul><li>Fast pace </li></ul><ul><li>Heavy workload </li></ul><ul><li>Job is to be problem-solver and troubleshooter </li></ul><ul><li>No longer “doer” </li></ul><ul><li>Communication, listening, positive reinforcement </li></ul><ul><li>Learning to adapt and control stress </li></ul><ul><li>Job is people development </li></ul>Managers’ Initial Expectations After Six Months As a Manager After a Year As a Manager
  26. 26. Discussion <ul><li>Discuss how and why companies can create competitive advantage through people? </li></ul>
  27. 27. History of Management <ul><li>TOPIC DETAILS: </li></ul><ul><li>After going through this part, you should be able to: </li></ul><ul><ul><li>Explain the origins of management </li></ul></ul><ul><ul><li>Explain the history of scientific management. </li></ul></ul><ul><ul><li>Discuss the history of bureaucratic and administrative management. </li></ul></ul><ul><ul><li>Explain the history of human relations management. </li></ul></ul><ul><ul><li>Discuss the history of operations, information systems, and contingency management. </li></ul></ul>
  28. 28. Management Ideas and Practice Throughout History 5000 BC 4000-2000 BC 1800 BC 600 BC 500 BC 400 BC 400 BC 175 284 900 1100 1418 1436 1500 1525 Sumerians Egyptians Hammurabi Nebuchadnezzar Sun Tzu Xenophon Cyrus Cato Diocletian Alfarabi Ghazali Barbarigo Venetians Sir Thomas More Machiavelli Record keeping Plan, organize, control. Written requests. Controls and written documentation Wage incentives, production control Strategy Management as a separate art Human relations and motion study Job descriptions Delegation of authority Listed leadership traits Listed managerial traits Different organizational forms/structures Numbering, standardization, interchangeability Critical of poor management and leadership Cohesiveness, power, and leadership
  29. 29. Why we need managers today? Work in families Skilled labourers Small, self-organised groups Unique, small batches of production Then Work in factories Specialised, unskilled labourers Large factories Large standardised mass production Now
  30. 30. Scientific Management <ul><li>Scientific Management </li></ul><ul><li>Studies and tests methods to identify the best, most efficient ways </li></ul><ul><li>“ Seat-of-the Pants” Management </li></ul><ul><li>No standardisation of procedures </li></ul><ul><li>No follow-up on improvements </li></ul>
  31. 31. Frederick W. Taylor Frederick Taylor is known today as the &quot;father of scientific management.&quot; One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day. Frederick W. Taylor, 1856-1915
  32. 32. Taylor’s Four Management Principles Develop a science for each element of a man’s work, which replaces the old rule-of-thumb method. Scientifically select and then train, teach, and develop the workman. Cooperate with the men to insure all work is done in accordance with the principles of the science. There is almost equal division of the work and the responsibility between management and workmen.
  33. 33. Frank & Lillian Gilbreth Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter. Time Study: Timing how long it takes good workers to complete each part of their jobs. Motion Study: Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive.
  34. 34. Henry Gantt
  35. 35. Bureaucratic Management Max Weber, 1864-1920 The exercise of control on the basis of knowledge, expertise, or experience, with the following aims: 1. Qualification-based hiring 2. Merit-based promotion 3. Chain of command 4. Division of labor 5. Impartial application of rules and procedures 6. Recorded in writing 7. Managers separate from owners
  36. 36. Administrative Management: Henri Fayol 1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interests 7. Remuneration 8. Centralisation 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corps
  37. 37. Human Relations Management Efficiency alone is not enough to produce organisational success. Success also depends on treating workers well.
  38. 38. Mary Parker Follett Mary Parker Follett, 1868-1933 Mary Parker Follett is known today as the “mother of scientific management.&quot; Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing.
  39. 39. Constructive Conflict and Coordination: Mary Parker Follett Dealing with Conflict Compromise Domination Integration
  40. 40. Constructive Conflict and Coordination: Mary Parker Follett <ul><li>Coordination as reciprocal relating all the factors in a situation </li></ul><ul><li>Coordination by direct contact of the responsible people concerned </li></ul><ul><li>Coordination in the early stages </li></ul><ul><li>Coordination as a continuing process </li></ul>Fundamental Principals of Organisations
  41. 41. Hawthorne Studies: Elton Mayo <ul><li>Workers’ feelings and attitudes affected their work </li></ul><ul><li>Financial incentives weren’t the most important motivator for workers </li></ul><ul><li>Group norms and behaviour play a critical role in behaviour at work </li></ul>
  42. 42. Cooperation and Acceptance of Authority: Chester Barnard <ul><li>Managers can gain cooperation by: </li></ul><ul><ul><li>Securing essential services from individuals </li></ul></ul><ul><ul><li>Unifying people by clearly formulating an organisation’s purpose and objectives </li></ul></ul><ul><ul><li>Providing a system of effective communication </li></ul></ul><ul><li>People will be indifferent to managerial directives if they… </li></ul><ul><ul><li>are understood </li></ul></ul><ul><ul><li>are consistent with the purpose of the organisation </li></ul></ul><ul><ul><li>are compatible with the people’s personal interests </li></ul></ul><ul><ul><li>can actually be carried out by those people </li></ul></ul>
  43. 43. Operations, Information, Systems, and Contingency Management Information Management Operations Management Contingency Management Systems Management
  44. 44. Origin of Operations Management Quality control Forecasting techniques Capacity planning <ul><ul><ul><li>Productivity measurement and improvement </li></ul></ul></ul><ul><ul><ul><li>Linear programming </li></ul></ul></ul><ul><ul><ul><li>Scheduling systems </li></ul></ul></ul><ul><ul><ul><li>Inventory systems </li></ul></ul></ul><ul><ul><ul><li>Work measurement techniques </li></ul></ul></ul>Project management <ul><ul><ul><li>Cost-benefit analysis </li></ul></ul></ul>
  45. 45. Whitney, Monge, and Olds Eli Whitney, 1765-1825 Gaspard Monge, 1746-1818 Ransom Olds, 1864-1950
  46. 46. Information Management Milestones in information management: 1400s Horses in Italy 1500-1700 Creation of paper and the printing press 1850 Manual typewriter 1860s Vertical file cabinets and the telegraph 1879 Cash registers 1880s Telephone 1890s Time clocks 1980s Personal computer 1990s Internet
  47. 47. Systems Management
  48. 48. Contingency Management <ul><li>Contingency Approach </li></ul><ul><ul><li>Holds that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place. </li></ul></ul><ul><ul><ul><li>Management is harder than it looks </li></ul></ul></ul><ul><ul><ul><li>Managers need to look for key contingencies that differentiate today’s situation from yesterday’s situation </li></ul></ul></ul><ul><ul><ul><li>Managers need to spend more time analyzing problems before taking action </li></ul></ul></ul><ul><ul><ul><li>Pay attention to qualifying phrases, such as “usually” </li></ul></ul></ul>