Management involves coordinating work through other people to achieve goals efficiently and effectively. There are different levels and functions of management. Early theories focused on scientific principles of management to increase efficiency while later behavioral theories emphasized the human element and that workers want input and respect. Contemporary approaches recognize there is no single best way to manage and the approach must fit the situation.
2. Organization
Organization is a system which operates through
human activity.
Organizations are very complex social formations,
their links can’t be described with only one theory.
Organization Theories concerns 3 levels:
Macro: cooperation among different organization
Mezzo: structures of the organizations, and influencing
factors
Micro: behavior of the members of the organizations,
motivation, conflict etc.
3. What is Management?
Definition: Coordinating work activities so
that they are completed efficiently and
effectively with and through other people
Efficiency: getting the most output from
the least input
Effectiveness: completing activities so
that the organization’s goals are attained.
7. Levels of Management
CEO
COO
CIO
General Mgr
Plant Mgr
Regional Mgr
Office Manager
Shift Supervisor
Department Manager
Team Leader
Top Level Management
Middle Level Management
First-Line
Management
8. Top Managers
Responsible for…Responsible for…
Creating a context for changeCreating a context for change
Developing attitudes of commitment
and ownership in employees
Developing attitudes of commitment
and ownership in employees
Creating a positive organizational
culture through language and action
Creating a positive organizational
culture through language and action
Monitoring their business environmentsMonitoring their business environments
9. Middle Managers
Responsible for…Responsible for…
Setting objectives consistent with top
management goals, planning strategies
Setting objectives consistent with top
management goals, planning strategies
Coordinating and linking groups,
departments, and divisions
Coordinating and linking groups,
departments, and divisions
Monitoring and managing the performance
of subunits and managers who report to them
Monitoring and managing the performance
of subunits and managers who report to them
Implementing the changes or strategies
generated by top managers
Implementing the changes or strategies
generated by top managers
10. First-Line Managers
Responsible for…Responsible for…
Managing the performance of
entry-level employees
Managing the performance of
entry-level employees
Teaching entry-level employees
how to do their jobs
Teaching entry-level employees
how to do their jobs
Making schedules and operating plans based on
middle management’s intermediate-range plans
Making schedules and operating plans based on
middle management’s intermediate-range plans
11. What Companies Look for in
Managers
Technical SkillsTechnical Skills Human SkillHuman Skill
Conceptual SkillConceptual Skill Design SkillDesign Skill
12. Core skills and their use in the
different levels
Conceptual skills
Human skills
Technical skills
Managerial levels
Lower Middle Top
13. Management Theory
Pre-Classical
Classical Approaches
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)
Behavioral Approaches
The Hawthorne Experiment (1927)
MacGregor’s Theory X and Theory Y (1960)
Quantitative Approaches
Contemporary Approaches
Ouchi’s Theory Z (1981)
Contingency Management
14. Classical Approaches
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)
15. Frederick W. Taylor
Developed Scientific Management
Laid foundation for the study of management
Key ideas:
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
16. Taylor’s Principles of Management
The “one best way.”
Management using scientific observation
Scientific selection of personnel
Put right worker in right job, find limitations, train
Financial incentives
Putting right worker in right job not enough
A system of financial incentives is also needed
Functional foremanship
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
17. Frank & Lillian Gilbreth
Time and motion efficiency experts
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.
18. Henri Fayol
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
20. 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.
21. 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.
22. Max Weber
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.
23. Behavioral Approaches
The Hawthorne Experiment (1927)
Chester Barnard (1930s – 1960s)
Herbert Simon (1947)
MacGregor’s Theory X and Theory Y
(1960)
24. 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
But the “Hawthorne Effect” was instead identified
The workers values, desires, and needs may be more important
than physical conditions.
Workers want to have input.
Workers want to be respected.
25. Theories X and Y
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
26. Theories X and Y
Theory Y: Modern Management Theory
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
28. Ouchi’s Theory Z
Theory Z
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
29. Contingency Management
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
30. Brief
Behavioral
Mary Parker Follet : “Power Sharing”
Chris Argyris: Model I & Model II Organisations
Quantitative Approach
Management Science
Operation Management
MIS
System Theory
Editor's Notes
Management is getting work done through others.
Managers have to be concerned with efficiency and effectiveness in the workplace. Efficiency is getting work done with a minimum of effort, expense, or waste. Effectiveness is accomplishing tasks that help full organizational objectives, such as customer service and satisfaction.
Interpersonal Roles–interacting with others
figurehead role: managers perform ceremonial duties
leader role: managers motivate and encourage workers to accomplish organizational objectives
liaison role: managers deal with people outside their units
Informational Roles–obtaining and sharing information
monitor role: managers scan their environment for information, actively contact others for information
disseminator role: managers share the information they have collected with their subordinates and others in the company
Decisional Roles–making good decisions
entrepreneur role: managers adapt themselves, their subordinates, and their units to incremental change
disturbance handler role: managers respond to pressures and problems so severe that they demand immediate attention and action
resource allocator role: managers decide who will get what resources and how many resources they get
negotiator role: managers negotiate schedules, projects, goals, outcomes, resources, and employee raises
Classical functions of management are planning, controlling, organizing, and leading.
Planning is determining organizational goals and a means for achieving them. Controlling is monitoring progress toward goal achievement and taking corrective action when progress isn’t being made. Organizing is deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company. Leading is inspiring and motivating workers to work hard to achieve organizational goals.
Old-style managers think of themselves as the “manager” or the “boss.” New-style managers think of themselves as sponsors, team leaders, or internal consultants. Old-style managers follow the chain of command (reporting to the boss, who reports to the next boss at a higher managerial level, etc.), while new-style managers work with anyone who can help them accomplish their goals. Old-style managers make decisions by themselves. New-style managers ask others to participate in decisions. Old-style managers keep proprietary company information confidential. New-style managers share that information with others. Old-style managers demand long hours. New-style managers demand results.
Note that these new functions do not replace the classical functions of management; they build on them.
The textbook is organized around the four updated management functions, as shown on this slide, which have evolved out of the classical functions.
The jobs and responsibilities of the four kinds of managers are shown in Exhibit 1.2.
Top managers hold positions like chief executive officer (CEO) or chief operating officer (COO) and are responsible for the overall direction of the organization.
Middle managers hold positions like plant manager, regional manager, or divisional manager.
Note how middle managers’ responsibilities are influenced by those of top managers.
Note also how their responsibilities are more narrowly focused than of top managers.
First-line managers hold positions like office manager, shift supervisor, or department manager.
First-line managers are the only managers who don’t supervise other managers.
They are closest to employees and have daily contact with employees.
Technical skills are most important for lower level managers, because these managers supervise the workers who produce products or serve customers. Team leaders and first-line managers need technical knowledge and skills to train new employees and help employees solve problems. Technical skills become less important as managers rise through the managerial ranks, but they are still important.
Human skills are equally important at all levels of management, from first-line supervisors to CEOs. However, because lower level managers spend much of their time solving technical problems, upper level managers may actually spend more time dealing directly with people.
Conceptual skill is the ability to see the organization as a whole, how the different parts of the company affect each other, and how the company fits into or is affected by its external environment. Conceptual skill increases in importance as managers rise through the management hierarchy.
Managers typically have a stronger motivation to manage than their subordinates, and managers at higher levels usually have stronger motivation to manage than managers at lower levels.
Furthermore, managers with stronger motivation to manage are promoted faster, are rated by their employees as better managers, and earn more money than managers with a weak motivation to manage.