Upload
hadat
View
234
Download
1
Embed Size (px)
Citation preview
Learning Goals
• Define management, describe the kinds of managers found in organizations, and identify and briefly explain the four basic management functions
• Justify the importance of history and theory to • Justify the importance of history and theory to management and explain the evolution of management thought
• Discuss contemporary management issues and challenges
principles of management 2
Management
• Management is a set of activities
directed at an organization’s
resources with the aim of achieving resources with the aim of achieving
organizational goals in an efficient
and effective manner
principles of management 3
Management
• Activities include the four functions
of management
–Planning (and decision making)–Planning (and decision making)
–Organizing
–Leading
–Controlling
principles of management 4
Management in Organizations
Inputs from the environment• Human resources• Financial resources
Planningand decision
makingOrganizing
Goals attained• Efficiently• Financial resources
• Physical resources• Information resources
LeadingControlling
• Efficiently• Effectively
principles of management 6
Efficiency
versusversus
Effectiveness
Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright © 1991 by Houghton Mifflin Company. Used with permissions.
principles of management 7
EFFICIENCYAllocatesAllocates
andandConservesConservesResourcesResourcesDoing thingsDoing things
Efficiency vs. Effectiveness
EFFECTIVENESSEFFECTIVENESS
Waste ofWaste ofResourcesResources
right (effort)right (effort)
DoingDoing the right things (accomplishment)principles of management 8
Kinds of Managers by Level and Area
Levels of Management
Top managers
Middle managers
Areas of Management
First-line managers
principles of management 9
Important Definitions
• Top Managers
• Middle Managers
• First-line Managers
• Operative Employees
principles of management 10
Managers In Different Areas of The
Organization
• Marketing Managers
• Financial Managers
• Operations Managers• Operations Managers
• Human Resource Managers
• Administrative Managers
principles of management 11
The Management Process
OrganizingDetermining how
best to groupactivities and
resources
Planning andDecision Making
Setting the organiza-tion’s goals and
deciding how bestto achieve them
ControllingMonitoring
and correctingongoing activitiesto facilitate goal
attainment
LeadingMotivating membersof the organizationto work in the best
interests of theorganization
Figure 1.2principles of management 12
The Basic Functions of Management
A Circular Process
Planning and Decision Making
Organizing
Leading
Controlling
principles of management 13
Fundamental Management Skills
• Management Skill Mixes at Different
Organizational Levels
principles of management 15
Management: Science or Art?
• Science of Management – some aspects of management are objective and can be approached with rationality and logic
• Art of Management – some aspects of management are subjective and are based on intuition and experience
principles of management 16
The Evolution of the Study of Management
The importance of history and theory
• Theory
• HistoryHistory
principles of management 17
The Historical Context of Management
• Management Through the Ages
B Egyptians
C Babylonians
D Greeks
G Venetians
E Romans
3000 B.C. 2500 B.C.
A Sumerians F Chinese
2000 B.C. 1500 B.C. 1000 B.C. 500 B.C. A.D.1500A.D.500 A.D.1000
A Used written rules and regulations for governance
B Used management practices to construct pyramids
C Used extensive set of laws and policies for gover nance
D Used different governing systems for cities and s tate
E Used organized structure for communication and con trol
F Used extensive organization structure for governme ntagencies and the arts
G Used organization design and planning concepts tocontrol the seas
principles of management 18
An Integrative Framework
of Management Perspectives
Systems Approach• Recognition of internal
interdependencies• Recognition of
environmental influences
Contingency Perspective• Recognition of the situational
nature of management• Response to particular
characteristics of situation
ClassicalManagementPerspectives
BehavioralManagementPerspectives
QuantitativeManagementPerspectivesPerspectives
Methods forenhancingefficiency andfacilitating planning,organizing, andcontrolling
PerspectivesInsights for moti-vating performanceand understandingindividual behavior,groups and teams,and leadership
PerspectivesTechniques forimproving decisionmaking, resourceallocation, andoperations
Effective and efficient management
principles of management 19
Classical Management Perspective
• Scientific Management
– Frederick Taylor
– The Gilbreths– The Gilbreths
– Henry Gantt
principles of management 20
Steps in Scientific Management
Develop a sciencefor each element ofthe job to replace oldrule-of-thumb methods
Scientifically selectemployees and thentrain them to do the jobas described in step 1
Supervise employeesto make sure theyfollow the prescribedmethods for performingtheir jobs
Continue to plan the work, but use workers to get the work done
21 43
Figure 1.3
principles of management 21
The Classical Management Perspective
• Administrative Management – focuses on
managing the total organization
– Henry Fayol
– Lyndal Urwick
– Max Weber
principles of management 22
Fayol’s Guidelines to Effective
Management Practices
• Division of labor
• Authority
• Discipline
• Unity of command
• Renumeration
• Centralization
• Scalar chain
• OrderUnity of command
• Unity of direction
• Subordination of individuals to the common good
Order
• Equity
• Stability
• Initiative
• Esprit de corps
principles of management 23
Weber’s Theory of Bureaucracy
• Division of labor
• Reliance on rules and regulations
• Hierarchy of authority
• Employment based on expertise• Employment based on expertise
• Inflexible
• Rigid
• Impersonal
principles of management 24
The Classical Management Perspective
• Contributions– Laid the foundation for management theory
– Identified key processes, functions, and skills of managers – still important today
– Made management a valid subject of scientific inquiry
• Limitations• Limitations– Best used in simple, stable organizations
– Provided universal procedures that are not appropriate in all settings
– Most viewed employees as tools rather than resources
principles of management 25
The Behavioral Management
Perspective
• Placed much more emphasis on individual attitudes and behaviors and on group processes in organizations.
• Recognized the importance of behavioral • Recognized the importance of behavioral processes in organizations
– Hugo Munsterberg
– Mary Parker Follet
– Elton Mayo
principles of management 26
Behavioral Management
Perspective
• Elton Mayo – Hawthorne Studies
– Illumination study
– Group study– Group study
principles of management 27
Human Relations Movement
– Grew out of the Hawthorne studies.
– Proposed that workers respond primarily to the social context of work, including social conditioning, group norms, and interpersonal dynamics.and interpersonal dynamics.
– Assumed that the manager’s concern for workers would lead to increased worker satisfaction and improved worker performance.
principles of management 28
Behavioral Management
Perspective
• Abraham Maslow
– Advanced a theory that employees are motivated
by a hierarchy of needs that they seek to satisfy.
• Douglas McGregor• Douglas McGregor
– Proposed Theory X and Theory Y concepts
of managerial beliefs about people
and work.
principles of management 29
Maslow’s Hierarchy of Needs
• Five levels
– Physiological – hunger, thirst, shelter, sex
– Safety – security and protection– Safety – security and protection
– Social – affection, interpersonal relationships
– Esteem – self-respect, achievement status
– Self-actualization – achieving full potential
• Usually thought in the form of a pyramid
principles of management 30
Maslow’s Hierarchy of Needs
SA
Esteem NeedsEsteem Needs
Social Needs
Security Needs
Physiological Needs
principles of management 31
Theory X and Theory Y
• Theory X Assumptions
– People do not like work and try to avoid it.
– Managers have to control, direct, coerce, and threaten employees to get them to work threaten employees to get them to work toward organizational goals.
– People prefer to be directed, to avoid responsibility, and to want security; they have little ambition.
Source: Douglas McGregor, The Human Side of Enterprise, Copyright © 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.
principles of management 32
Theory X and Theory Y
• Theory Y Assumptions
– People do not dislike work; work is a natural part
of their lives.
– People are internally motivated to reach – People are internally motivated to reach
objectives to which they are committed.
– People are committed to goals to the degree that
they receive rewards when they reach their
objectives.
Source: Douglas McGregor, The Human Side of Enterprise, Copyright © 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.
principles of management 33
Theory X and Theory Y
• Theory Y Assumptions
– People seek both seek responsibility and accept
responsibility under favorable conditions.
– People can be innovative in solving problems.– People can be innovative in solving problems.
– People are bright, but under most organizational
conditions their potentials are underutilized.
Source: Douglas McGregor, The Human Side of Enterprise, Copyright © 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.
principles of management 34
Theory X – Theory Y
Think of these theories as a continuum
Theory X Theory Y
Employees fall somewhere in between the two ends
principles of management 35
The Behavioral Management
Perspective
• Contemporary behavioral science in
management – emerged because of the too
simplistic descriptions of work behavior by simplistic descriptions of work behavior by
the human relations theorists.
• Organizational behavior takes a holistic view
of behavior, including individual, group, and
organization processes
principles of management 36
Organizational Behavior
• Important topics in organizational behavior
research:
– Job satisfaction and job stress
– Motivation and leadership– Motivation and leadership
– Group dynamics and organizational politics
– Interpersonal conflict
– The structure and design of organizations
principles of management 37
The Behavioral Management
Perspective
• Contributions
– Gave insights into interpersonal processes such as motivation and group dynamics in organizations
– Focused managerial attention on these processes
– Challenged the view of employees as tools and not resources– Challenged the view of employees as tools and not resources
• Limitations
– The complexity of human behavior makes prediction difficult
– Managers may be reluctant to adopt some of the behavioral concepts
– Contributions are often not communicated to the practicing managers in an understandable form
principles of management 38
The Quantitative Management
Perspective
• Focuses on decision making, economic
effectiveness, mathematical models, and the
use of computers in organizations
– Management science
– Operations management
principles of management 39
The Quantitative Management
Perspective
• Contributions
– Developed sophisticated quantitative techniques to assist decision making
– Models have increased our awareness of complex organizational processes and have aided in the planning and controlling processes
• Limitations
– Cannot fully explain or predict behavior
– Mathematical sophistication may come at the expense of other important skills
– Models may require unrealistic or unfounded assumptions
principles of management 40
Contemporary Management Theory
• The Systems Perspective
– A system is an interrelated set of elements
functioning as a whole. An organization as a
system is composed of four elements:
• Inputs (material and/or human resources)
• Transformation processes (technical and managerial
processes)
• Outputs (products and services)
• Feedback (reactions from the environment)
principles of management 41
The Integrated Systems Model
InputsInputsFrom theFrom theenvironment:environment:HumanHumanMaterialMaterial
ProcessingProcessingTransformationTransformationprocess:process:TechnologyTechnologyOperating systemsOperating systems
OutputsOutputsInto the Into the environmentenvironmentProductProductServicesServices
FeedbackFeedback
MaterialMaterialFinancialFinancialInformationInformation
Operating systemsOperating systemsAdministrative Administrative systemssystemsControl systemsControl systems
ServicesServicesProfit/lossProfit/lossEmployee behaviorEmployee behaviorInformationInformation
principles of management 42
Systems Perspective
• Open systems interact with one another and
other environments
• Closed systems do not interact with their • Closed systems do not interact with their
environment
• Subsystems recognizes the importance of
subsystems because of their
interdependence
principles of management 43
Systems Perspective
• Synergy
– Subsystems are more successful working
together than working alone. The whole,
working together, is greater than the sum of its
parts.parts.
• Entropy
– A natural process leading to system decline
which can be avoided through organizational
change and renewal.
principles of management 44
The Universal Perspective vs The
Contingency Perspective
• The Universal Perspective tries to identify the one
best way to manage an organization, includes
classical, behavioral and quantitative approaches
The Contingency Perspective suggests that universal • The Contingency Perspective suggests that universal
theories cannot be applied to organizations because
each organization is unique – what works in one
situation may not work in another
principles of management 45
Contemporary Management Issues &
Challenges
• Downsizing
• Diversity and the New Workforce
• Information Technology
• New Ways of Managing• New Ways of Managing
• Globalization
• Ethics and Social Responsibility
• Managing for Quality
• Service Economy
principles of management 46
Principles of Management
Chapter 2
The Environment of Organizations
and Managers
principles of management 47
Learning Goals
• Discuss the environment of organizations and identify the
components of the general, task, and internal environments
• Describe the ethical and social environment of management
• Describe the international environment of management
• Discuss the importance and determinants of an • Discuss the importance and determinants of an
organization’s culture
principles of management 48
The Organization’s Environment
• External Environment
– General environment
– Task environment
• Internal Environment• Internal Environment
– Conditions and forces within an organization.
principles of management 49
The Organization and Its Environments
Competitors
Internationaldimension
Technologicaldimension
OwnersEmployees
Physical environmentBoard of directors
CulturePolitical-
legaldimension
Socioculturaldimension
Economicdimension
Regulators Customers
Strategicpartners
Suppliers
Internal environment
Task environment ExternalenvironmentGeneral environment
principles of management 50
Five Dimensions of the
General Environment
Five Dimensions of the
General Environment
• The economic dimension - the overall health and vitality of the economic system in which the organization operates
• The technological dimension - the methods available for converting resources into products or services resources into products or services
• The political-legal dimension - government regulation of business and the relationship between business and the government
• The socio-cultural dimension — the general societal/cultural norms that the organization functions under
• The international dimension — the extent to which an organization is involved in or affected by business in other countries.
principles of management 51
McDonald’s General Environment
International Dimension• Restaurants in 115
countries• About two-thirds of
sales from outsidethe UnitedStates
TechnologicalDimension• Improved information
technology• More efficient
operating systems
McDonald’sPolitical-LegalDimension• Government
food standards• Local zoning
climate• General posture
toward businessregulation
Sociocultural Dimension• Demographic shifts in
number of single adultsand dual-income families
• Growing concerns abouthealth and nutrition
EconomicDimension• Strong economic
growth• Low unemploy-
ment• Low inflation
Internal environment
Task environmentExternal environment
General environment
principles of management52
Five Dimensions of the Task
Environment
• Specific groups affecting the organization• Competitors seeking the same resources as the organization.
• Customers who acquire an organization’s products or resources.
• Suppliers that provide resources for the organization.
• Regulators (agencies and interest groups) that control, legislate, or • Regulators (agencies and interest groups) that control, legislate, or
influence the organization’s policies and practices.
• Strategic partners (allies) who are in a joint venture or partnership
with the organization.
principles of management 53
McDonald’s Task Environment
Competitors• Burger King• Wendy’s• Subway• Dairy Queen
Customers• Individual
consumers• Institutional
customers
Regulators• Food and Drug
Administration• Securities
andExchangeCommission
• Environmental McDonald’s customers
Suppliers• Coca-Cola• Wholesale food
processors• Packaging
manufacturers
Strategic Partners• Wal-Mart• Disney• Foreign partners
• EnvironmentalProtectionAgency
Internal environment
Task environment
principles of management 54
How Business and Government
Influence Each Other
TheGovernment
The government influences businessthrough direct and indirect regulation:
• Environmental protection legislation• Consumer protection legislation• Employee protection legislation• Securities legislation• The tax codes
Business
• The tax codes
Business influences the government through:
• Personal contacts and networks• Lobbying• Political action committees (PACs)• Favors and other influence tactics
principles of management 56
The Internal Environment
• Conditions and stakeholder forces within an organization
– Owners– Owners
– Board of Directors
– Employees
– Physical Work Environment - the actual physical environment of the organization and the work that people do.
principles of management 57
Individual Ethics
• Ethical Behavior
– An individual’s personal beliefs regarding what
is right and wrong or good and bad.is right and wrong or good and bad.
principles of management 58
Managerial Ethics
Are the standards of behavior that guide
individual managers in their work
principles of management 60
Managerial
EthicsEmployees Organization
• Conflicts of interest• Secrecy and
confidentiality• Honesty
• Hiring and firing• Wages and working
conditions• Privacy and respect
Subject to ethical ambiguities• Advertising and promotions• Ordering and purchasing
Three areas of concern for managerial ethics
•The relationships of the firm to the employee. • Ordering and purchasing
• Bargaining and negotiation• Financial disclosure• Shipping and solicitation• Other business relationships
Economic Agents• Customers• Competitors• Stockholders• Suppliers• Dealers• Unions
employee.
•The employee to the firm.
•The firm to other economic agents.
principles of management 61
Ethics in OrganizationsEthics in Organizations
Organizational Values+
Individual ValuesIndividual Values=
Managerial Values
principles of management 62
Ethics in Organizations
• Managing Ethical Behavior
– Must begin with top management
– Training on how to handle different ethical dilemmas.dilemmas.
– Code of Ethics
• A formal, written statement of the values and ethical standards that guides a firm’s actions
– Individual behavior
principles of management 63
Social Responsibility and Organizations
• Social Responsibility
– The set of obligations (to behave responsibly) that
an organization has to protect and enhance the
social context in which it functions.social context in which it functions.
principles of management 64
Social Responsibility and Organizations
• Areas of Social Responsibility
– Stakeholders: customers, employees, and
investors.
– The natural environment: environmentally – The natural environment: environmentally
sensitive products, recycling, and public safety.
– The general social welfare: charitable
contributions, and support for social issues such
as child labor and human rights.
principles of management 65
Social Responsibility
VoluntaryResponsibilities
being a “good corporate citizen”;
contributing to the
Ethical Responsibilitiesbeing ethical; doing what is right, just,
and fair; avoiding harm
community and quality of life
Source: Adapted from Archie B. Carroll, “The Pyramid of CorporateSocial Responsibility: Toward the Moral Management of Organizational Stakeholders.” Business Horizons 34 (July/August 1991): 42.
Legal Responsibilitiesobeying the law (society’s codification of rightand wrong); playing by the rules of the game
Economic Responsibilitiesbeing profitable
principles of management 66
Arguments For and Against
Social Responsibility
1. Business creates problems andshould therefore help solve them.
2. Corporations are citizens in oursociety.
2. Involvement in social programsgives business too much power.
1. Business lacks the expertise tomanage social programs.
Arguments For Social Responsibility Arguments Against Social Responsibility
society.
3. Business often has the resourcesnecessary to solve problems.
4. Business is a partner in oursociety, along with the govern-ment and the general population.
SocialResponsibility
4. The purpose of business in U.S.society is to generate profitfor owners.
gives business too much power.
3. There is potential for conflictsof interest.
principles of management 67
Approaches
to Social to Social
Responsibility
Source: Barney, Jay B. and Ricky W. Griffin, The Management of Organizations. Copyright © 1992 by Houghton Mifflin Company. Used with permissions.
principles of management 68
Managing Social ResponsibilityFormal Organizational Dimensions
• Legal Compliance
– Extent to which the organization conforms to local, state,
federal, and international laws
Ethical Compliance• Ethical Compliance
– Extent to which members of the organization follow
basic ethical/legal standards of behavior
• Philanthropic Giving
– Awarding of funds or gifts to charities and other social
programs
principles of management 69
Trends in International Business
• Technological advances make this a very small
world
• Decreasing Isolation from Foreign Competition• Decreasing Isolation from Foreign Competition
– U.S. consumer goods markets are open to
overseas competitors.
principles of management 70
Levels of International Business
Activity
• Exporting
• Importing
• Licensing
• Strategic Alliance and Joint Ventures• Strategic Alliance and Joint Ventures
• Direct Investment
principles of management 71
Advantages and Disadvantages of Various
Approaches to Internationalization
Approaches to Internationalization Advantages Disadvantages
Importing or Exporting
1. Small cash outlay 2. Little risk 3. No adaptation necessary
1. Tariffs and taxes 2. High transportation costs 3. Government restrictions
Licensing 1. Increased profitability 2. Extended profitability
1. Inflexibility 2. Helps competitors
Strategic Alliance/ Joint Venture
1. Quick market entry 2. Access to materials and technology
1. Shared ownership (limits control and profits)
Direct Investment 1. Enhances control 2. Existing infrastructure
1. Complexity 2. Greater economic and political risk 3. Greater uncertainty
principles of management 72
Controls on International Trade
• Key Concepts
– Tariffs are collected on goods shipped across national boundaries.
– Quotas are limits placed on the number or value of – Quotas are limits placed on the number or value of goods that can be traded as exports or imports.
– Export restraint agreementsare voluntary limits on the volume
or value of goods exported to,
or imported from, another country.
principles of management 74
The Structure of the Global Economy
• Economic Communities
– Sets of countries that engage in high levels
of trade with each other through the elimination
of trade barriers such as quotas and tariffs.of trade barriers such as quotas and tariffs.
• European Union (EU)
• North American Free Trade Agreement (NAFTA)
• Latin American Integration Association
• Caribbean Common Market
principles of management 75
European Union
(EU)
Member Nations
Source: Lucas, George H., Robert P. Bush, and Larry R. Gresham, Retailing. Copyright © 1994 by Houghton Mifflin Company. Used with permissions.
principles of management76
The Cultural Environment of International
Buisness
• Language
• The Meaning of Colors
• Nonverbal cues
principles of management 77
The Organization’s Culture
• Organization Culture – collection of values, beliefs, behaviors, customs, and attitudes that characterize a community of people.
• Determinants of Organization Culture
Organization’s founder – Organization’s founder
– Articulate the culture through symbols, stories, heroes, slogans, and ceremonies that embody and personify the spirit of the organization.
– Corporate success strengthens the culture.
principles of management 78
Organization Culture
• Managing Organization Culture
– Understand the current culture to understand whether to maintain or change it.
– Reward and promote people whose behaviors are whose behaviors are consistent with desired cultural values.
– Promote shared experiences that bond organizational memberstogether.
principles of management 79
Organization Culture
• Changing Organization Culture
– Develop a clear idea of what kind of
culture you want to create.
– Bring in outsiders to important – Bring in outsiders to important
managerial positions.
– Adopt new slogans, stories,
ceremonies, and purposely
break with tradition.
principles of management 80