3. Chapter Outline:
• 1.1 Definition of organization and management
• 1.2 Measuring managerial performance
• 1.3 Management process functions and activities
• 1.4 Managerial levels, skills and roles
• 1.5 Evolution of management thoughts
4. 1.1 definition of
organization & management
management:
a broader definition
The process of administering and coordinating resources
effectively, efficiently, and in an effort to achieve the goals of
the organization (Lewis)
management:
the classic definition
The art of getting things done through people
( Marry Parker Follet)
MGT162/UiTMJOHOR/2013
5. Definition of organization
& manager
Organization:
An organization is a group of individuals who work together toward
common goals (Lewis)
Manager:
“An organizational member who is responsible for planning,
organizing, leading, and controlling the activities of the organization
so that its goals are achieved” (Lewis)
measuring
managerial performance;
Effectiveness
Efficiency
MGT162/UiTMJOHOR/2013
7. Management is a process that contains several functions. It comprises of the
activities of Planning, Organizing, Leading & Controlling (POLC).
ACHIEVING THE ORGANIZATION’S
STATED PURPOSE (GOALS/ MISSION)
PLANNING
ORGANIZING
LEADING
CONTROLLING
LEADS TO
management process function
(polc)
1.3 Management process, functions and
activities
MGT162/UiTMJOHOR/2013
8. 1.4 Managerial levels, skills and roles
Top
Managers
Middle
Managers
First-Line Managers
Nonmanageri
al personnel
Managerial Levels:
MGT162/UiTMJOHOR/2013
9. Manager
By their level
in the organization
Top managers
Middle manager
First-line manager
By the range of
organization
activities they are
responsible
Functional
manager
General manager
Responsible for a
single area of
activity. E.g.:
Finance manager,
Marketing manager
Responsible for
more complex units
that include many
functional areas of
activity. E.g.: Plant
manager
Type of Managers:
MGT162/UiTMJOHOR/2013
10. • There are 3 basic skills required by managers:
3 Basic skills
Technical skills (T) Human skills (H) Conceptual skills (C)
Management Skills:
MGT162/UiTMJOHOR/2013
16. Focuses on the individual
worker’s productivity
Focuses on the
functions of
management
Focuses on the
overall organizational
system
Classical Perspective
on management:
MGT162/UiTMJOHOR/2013
17. • Focus on the productivity of the individual workers.
• 3 areas of focus:
(I) Task Performance
(II) Supervision
(III) Motivation
Scientific Management:
Frederick W.Taylor (1856-1915)
Scientific management:
The Gilbreths
Frank Glibreth
Lilian Gilbreth
MGT162/UiTMJOHOR/2013
18. • Henri Fayol (1841-1925)was the first to recognize that successful
managers had to understand the basic managerial functions.
• Developed a set of 14 general principles of management.
• Fayol’s managerial functions of planning, leading, organizing and
controlling are routinely used in modern organizations.
Administrative Management:
Henri Fayol (1841 – 1925)
Fayol’s general principles of management
1. Division of work
2. Centralization
3. Authority
4. Scalar chain
5. Discipline
6. Order
7. Unity of command
8. Equity
9. Unity of direction
10. Stability of tenure
11. Interest of the organization
12. Initiative
13. Remuneration of personal
14. Esprit de corps
19. • Focuses on the overall organizational system.
• Bureaucratic management is based upon:
Firm rules
Policies and procedures
A fixed hierarchy
A clear division of labor
Bureaucratic Management:
Max Weber (1864 – 1920)
A German sociologist and historian who envisioned a system of management that
would be based upon impersonal and rational behavior – the approach to
management now referred to as “bureaucracy”.
Division of labor
Hierarchy of authority
Rules and procedures
Impersonality
Employee selection and promotion.
MGT162/UiTMJOHOR/2013
20. Focused on
rational behavior
Classical Perspective
Acknowledged the
importance of human
behavior
Behavioral Perspective
vs.
Classical versus Behavioral Perspective
MGT162/UiTMJOHOR/2013
21. • Managers were being presented with more evidence that human
behaviour has a significant impact on the actions of workers.
• Follet concluded that a key to effective management was coordination
• Hawthorne effect – the phenomenon whereby individual or group
performance is influenced by human behaviour factors.
• Theory X – advocates that a manager percives that subordinates have
an inherent dislike of work and will avoid it if possible.
• Theory Y- advocates that manager perceives that subordinates enjoy
work and will again satisfaction from their jobs.
Behavioral Perspective
The Quantitative Perspective
Characterized by its use of mathematics, statistics, and other quantitative
techniques for management decision making and problem solving.
1. A decision-making focus – require some direct action on the part of
management
2. measurable criteria – select some alternative course of action by
making comparison
3. quantitative model – make use of mathematical symbols, equations
and formulas
4. The use of computers
MGT162/UiTMJOHOR/2013
22. Systems Perspective:
• An approach to problem solving based that attacks complex
systems by breaking them down into their constituent elements
MGT162/UiTMJOHOR/2013
23. • A view that proposes that there is no one best approach to management for all
situations.
• Asserts that managers are responsible for determining which managerial
approach is likely to be most effective in a given situation.
• This requires managers to identify the key contingencies in a given situation.
The Contingency Perspective
Blending Components
into a Contingency Perspective
24. • Joan Woodward’s Research
• Discovered that a particular management style is affected by the
organization’s technology.
• Identified and described three different types of technology:
• Small-batch technology
• Mass-production technology
• Continuous-process technology
An Example of the
Contingency Perspective
MGT162/UiTMJOHOR/2013