Faculty of Administrative Science and Policy StudiesDiploma in Public Administration

INTRODUCTION TO MANAGEMENT

MISS FARHANA BINTI YAAKUBLecture by:

CHAPTER 1Fundamentals of Management MGT162

CHAPTER OUTCOMES

In the end of this chapter, students should be able to:

i. Explain the key concepts of management and its importance.

ii. Discuss the skills in management and it’s roles in each level of management.

iii. Describe the development of management thought.

1.1 Definition of organization and management

1.2 Measuring managerial performance1.3 Management process functions and

activities1.4 Managerial levels, skills and roles1.5 Evolution of management thoughts

CHAPTER OUTLINE

Definition of ORGANIZATION

A social unit in which two or more people interact to achieve a common or a set of goals (Stoner)

The structure of relationships that exists when two or more people mutually cooperates to pursue common objectives (Holt)

1.1

Definition of MANAGEMENT The process of administering and

coordinating resources effectively and efficiently in an effort to achieve the goals of the organization (Goodman & Fandt)

Process of achieving organizational goals by engaging in the 4 major functions of planning, organizing, leading and controlling (Bartol and Martin)

Definition of MANAGEMENT Management is a process of planning, organizing,

leading and controlling by refers to the practices and policies you need to carry out the people or personnel aspects of your management job. Its include :i. Conducting job analysisii. Training and developingiii. Planning labor needsiv. Selecting job candidatesv. Orienting and training new employeesvi. Communicating (interview, counseling, disciplining etc.)vii. Appraising performanceviii. Managing wages and salaries

The IMPORTANCE…. Equip personnel with effort management theories and

practices. Better and effective manager - solve problems, making good decision and effective utilization of organization resources. To understand many events, challenges and skills. Help organization achieve higher level of performance : utilization of its human and material resources. Makes good planners : assess the future and make plans. Managers will be responsible and accountable : organization objective will be achieved.

Performance – EFFECTIVENESS & EFFICIENCY1.2EFFECTIVENESS

• The result of making decisions that lead to doing the right things which help to fulfill the mission of an enterprise

• DOING THE RIGHT THINGS.

EFFICIENCY• Using fewest inputs to

generate given output.

• It is an ‘input-output’ concept.

• DOING THINGS RIGHT.

Performance – EFFECTIVENESS & EFFICIENCY

Effective but not efficient.

Some resources are wasted

Effective & efficient. Goal achieved.

Resource are well utilized, area of high

productivity

Neither effective nor efficient.

Goal are not achieve. Resource wasted in the

process.

Efficient but not effective.

No wasted resource.Goals not achieve

High

Low

Poor GoodResource Utilization

Goa

l Att

ainm

ent

1.3 The PROCESS / FUNCTION of Management (Bartol & Martin)

PLANNING

ORGANIZINGCONTROLLING

LEADING

REMEMBER!!! POLC

The PROCESS/FUNCTIONS of Management

PLANNING Establishing goals and standards Developing rules and procedures Developing plan and forecasting Predicting or projecting some future occurrence

ORGANIZING Giving subordinate specific task Establishing departments Delegating authority to subordinates Establishing channels of authority an communication Coordinating the work subordinates

The PROCESS of Management

Getting others to get the job done Maintaining morale Motivating subordinates

Setting standards such as sales, quotas, quality standards and production level

Checking to see how actual performance compares with these standards

Taking corrective action as needed

LEADING

CONTROLLING

1.4

Individuals in an organization who direct the activities of others. (Robbins)

A person that responsible for planning and directing the work of a group of

individuals, monitoring their work, and taking corrective action when necessary.

WHO IS MANAGER?

MANAGERIAL SCOPE

• Responsible for all functional activities.• E.g. Manager are responsible to managing

the overall supermarket.GENERAL

• Responsible for just one organizational activity

• E.g. The Manager of Marketing, Financing, Human Resource, IT.

FUNCTIONAL

MANAGERIAL SCOPE

LEVELS of Management1.4.1

TOP

MANAGEMENT

MIDDLE

MANAGEMENT

FIRST LINE

MANAGEMENT

LABOR, STAFF, WORKERS

( Operational Employees)

Head Department, Head of Division, Operation Manager,

Factory Manager

President, Vice President, Chief Executive Officer (CEO)

Technical Supervisor, Moderator, Clerical Supervisor

EXAMPLES

LEVELS of ManagementTOP – LEVEL MANAGER

Established organizational goals and operating policiesDecide how departments should interact and monitor the

performance of middle managementGood decision maker in uncertain situation

MIDDLE MANAGERSupervised first line managers

Responsible for finding the best way to use the resources to achieve organization goals

FIRST LINE MANAGEMENTResponsible for the daily supervision of non-managerial employees

LEVELS of Management (Examples with Organizational Chart)

TOP MANAGEMENT

MIDDLEMANAGEMENT

FIRST LINEMANAGEMENT

LABOR, STAFF, WORKERS ( Non-managerial level )

USE OF MANAGEMENT AT DIFFERENT HIERARCHICAL LEVEL

PLANNING

ORGANIZING

CONTROLLING

LEADING

1st LINE MIDDLE TOP

Basic managerial SKILLS/EXPERTISE1.4.2

CONCEPTUAL Mental ability to analyze and diagnose complex situation. Involve planning, scheduling and related tasks. Lead to a good decision making. Important to top management.

HUMANTECHNICAL

POLITICAL

Ability to work effectively with each others. Important to middle management. Involves motivating & disciplining subordinates, monitoring performance, providing feedback and improving communication.

Refer to the knowledge and use of tools, techniques and procedures that specific to particular field. Important to first-line management. E.g. Skills learned by Surgeon, Musicians, Accountants & Engineers

Ability to enhance position, build power base and establish right connections. Good political skills lead to better in getting resources to their group. Usually need by top management.

MANAGEMENT SKILLS IN DIFFERENT HIERARCHICAL LEVEL

1st Line Middle Top

CONCEPTUAL CONCEPTUALCONCEPTUAL

HUMAN

HUMAN HUMAN

TECHNICALTECHNICAL

TECHNICAL

POLITICAL POLITICALPOLITICAL

Managerial ROLES (Mintzberg)

1.4.3Interpersonal

Figurehead

Leader

Liaison

InformationalMonitor

Disseminator

Spokesperson

DecisionalEntrepreneur

Disturbance handler

Resource allocator

Negotiator

Source: The Nature of Managerial Work (paperback) by H. Mintzberg. Table 2, pp. 92–93. Reprinted by permission of Pearson Education Inc., Upper Saddle River, NJ.

Managerial ROLES (Mintzberg)

Interpersonal

i) FigureheadPerform symbolic duties or legal or social nature

ii) LeaderBuilds relationships with subordinates and communicate with, motivates and coaches them

iii) LiaisonMaintains networks of contacts outside work unit

who provide help and information.

Managerial ROLES (Mintzberg)

Informational

i) MonitorSeeks internal and external information about issues that can effect organization.

ii) DisseminatorTransmit information either internal or external

iii) SpokespersonTransmit information about organization to outsider.

Managerial ROLES (Mintzberg) Decisional

i) EntrepreneurInitiator, designer and encourage change and innovation

ii) Disturbance handlerTakes corrective action when organization faces important unexpected difficulties.

iii) Resource allocator Distributes resources of all types including time, funding, equipment and human resources.

iv) Negotiator Representing organization at major negotiations

• Ancient Massive Construction Projects– Egyptian pyramids– Great Wall of China

• Michelangelo, the Manager.

The Pre-modern Era

Evolution of management thoughts1.5

MANAGEMENT APPROACHES1. Classical approach

a) Scientific managementb) Administrative managementc) Bureaucratic organization

2. Behavioral perspectivea) Mary Parker Follettb) Elton Mayo c) Douglas McGregor

3. Modern approachesa) System approachb) Contingency approach

The Classical Approach1.5.1The term used to describe the hypotheses of the scientific management theorists and the general

administrative theorists.Scientific

management theorists

Fredrick W. Taylor

Frank and Lillian Gilbreth

Henry Gantt

Bureaucraticmanagement

theorists

Max Weber

General administrative

theorists

Henri Fayol

a) Scientific Management

i) Fredrick W. Taylor The Principles of Scientific Management (1911)

Advocated the use of the scientific method to define the “one best way” for a job to be done

Believed that increased efficiency could be achieved by selecting the right people for the job and training them to do it precisely in the one best way. To motivate workers, he favored incentive wage plans. Separated managerial work from operative work.

Taylor’s Four Principles of Management

1. Development of work standardsStandard methods should be developed for performing for performing each job within the organization.

2. Selection of workers.Workers with the appropriate abilities should be selected for each job.

3. Training of workers.Workers should be trained in the standard methods.

4. Support of workers.Workers should be supported by having their work planned for them.

Scientific Management

ii) Frank and Lillian Gilbreth Bricklaying efficiency improvements Time and motion studies (therbligs)

iii) Henry Gantt Incentive compensation systems Gantt chart for scheduling work operations

b) Bureaucratic Management

Max Weber (Germany)• Bureaucracy: Ideal type of organization characterized

by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.

• This theory provides a blueprint of how an entire organization should operate.

• Max Weber (1864-1920), a German social historian, is most closely associated with bureaucratic management.

Bureaucratic Management

Max Weber (Germany)

1.Division of Labor2.Authority Hierarchy3.Formal Selection4.Formal Rules and Regulations5.Impersonality6.Career Orientation

c) General AdministrativeDeveloped general theories of what managers do and

what constitutes good management practice

Henri Fayol (France)Fourteen Principles of Management: Fundamental or universal principles of management practice

1. Division of Work 2. Authority3. Discipline 4. Unity of Command5. Unity of Direction 6. Subordination of

Individual Interests to the General Interest

7. Remuneration 8. Centralization9. Scalar Chain10. Order11. Equity 12. Stability of Tenure of Personnel13. Initiative14. Esprit de Corps

The Behavioral Approacha) Mary Parker Follett

Introduce 4 Principles of Coordination to promote effective work group.

Coordination requires that people be in direct contact with each other.

Coordination in essential during the initial stages of any endeavor.

Coordination must address all factors and phases of any endeavor.

Coordination is continuous / on going process.

1.5.2

Hawthorne Studies• A series of studies done during the 1920s and

1930s that provided new insights into group norms and behaviors– Hawthorne effect

• Social norms or standards of the group are the key determinants of individual work behavior.

• Changed the prevalent view of the time that people were no different than machines.

The Behavioral Approachb) Elton Mayo

The Behavioral Approachc) Douglas McGregor (Theory X and Y)

• The assumption that employees dislike

work, are lazy, seek to avoid responsibility, and must be coerced

to perform.

Theory

• The assumption that employees are creative, seek

responsibility, and can exercise self-direction.

TheoryX Y

The Behavioral Approachb) Douglas McGregor (Theory X and Y)

FACTOR THEORY X ASSUMPTIONS

THEORY Y ASSUMPTIONS

Employees attitude towards work

Employees dislike work and will avoid it if at all possible.

Employees enjoy work and will actively seek it.

Management view of direction

Employees must be directed, coerced. Controlled, or

threatened to get them to put forth adequate effort.

Employees are self-motivated and self-directed

toward achieving organizational goals.

Employee view of direction

Employees wish to avoid responsibility; they prefer to be

directed and told what to do and how to do it.

Employees seek responsibility; they wish to

use their creativity, imagination and ingenuity in

performing their jobs.

Management style Authoritarian style of management.

Participatory style of management.

a) The System ApproachDefines a system as a set of interrelated and

interdependent parts arranged in a manner that produces a unified whole.

CLOSED SystemA system that is not influenced by and does not interact with environment

OPEN System

A system that dynamically interacts with its environment

1.5.3 Modern Approaches

The System Approach

The Organization

and its environment

b) The Contingency ApproachReplaces more simplistic systems and integrates much of

management theory.

Organization size (coordination) Routines of task technology

(task complexity dictates structure)

Environmental uncertainty (change management) Individual differences

(managerial styles , motivational techniques, and job design)

Four Contingency Variables

NEXT WEEK• Write up a simple notes for:

– Definition of planning– It’s Importance– Types of Planning

(Strategic and Operational Planning)