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Chapter 1Chapter 1Chapter 1Chapter 1
InnovationInnovation for Turbulentfor Turbulent
TimesTimes
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What do Beaunit Mills, Hercules Powder,What do Beaunit Mills, Hercules Powder,
and Liebmann Breweries have inand Liebmann Breweries have in
common?common?On 1stOn 1st FortuneFortune List (1955)List (1955)
They Dont Exist TodayThey Dont Exist Today
BAD ManagementBAD Management
Not Keeping up the GoodWorkNot Keeping up the GoodWork
Not adapting to Environmental ChangesNot adapting to Environmental Changes
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ManagementManagementManagementManagement
The attainment of organizational goals inThe attainment of organizational goals inan effective and efficient manner throughan effective and efficient manner throughplanning, organizing, leadingplanning, organizing, leading, and, andcontrollingcontrollingorganizational resourcesorganizational resources
OrganizationOrganization
AA formally structuredformally structured collection ofcollection ofindividuals working towardindividuals working toward commoncommon(shared) goals(shared) goals..
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Organizational PerformanceOrganizational PerformanceOrganizational PerformanceOrganizational Performance
Effectiveness : the degree to which theEffectiveness : the degree to which theorganization achieves a stated goalorganization achieves a stated goal
Efficiency : the use of minimal resourcesEfficiency : the use of minimal resources
(input) to produce a desired volume of(input) to produce a desired volume ofoutput.output.
Efficient, but not Effective:Efficient, but not Effective:
-- Goals not achievedGoals not achieved
Effective, but not EfficientEffective, but not Efficient--Wasted ResourcesWasted Resources
(You may have to choose between the two.)(You may have to choose between the two.)
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The Four Functions ofThe Four Functions of
ManagementManagement
The Four Functions ofThe Four Functions of
ManagementManagementPlanningPlanning
Select goalsSelect goals
& ways to& ways toattain themattain themOrganizingOrganizing
AssignAssign
responsibilityresponsibility
for tasksfor tasksLeadingLeading
UseUse
influence toinfluence to
motivatemotivate
ControllingControllingMonitorMonitor
activities &activities &
makemake
correctionscorrections
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MANAGEMENT LEVELS ANDMANAGEMENT LEVELS AND
TIME SPENT ON FUNCTIONSTIME SPENT ON FUNCTIONS
MANAGEMENT LEVELS ANDMANAGEMENT LEVELS AND
TIME SPENT ON FUNCTIONSTIME SPENT ON FUNCTIONS
Plan. Organ. Lead. Control.Plan. Organ. Lead. Control.Top 28% 36% 22% 14%Top 28% 36% 22% 14%
Middle 18% 33% 36% 13%Middle 18% 33% 36% 13%
Lower 15% 24% 51% 10%Lower 15% 24% 51% 10%
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Management SkillsManagement SkillsManagement SkillsManagement Skills
Conceptual Skills : cognitive ability toConceptual Skills : cognitive ability to
see the organization as a whole andsee the organization as a whole and
the relationship among its partsthe relationship among its partsHuman Skills : ability to work withHuman Skills : ability to work with
and through other people and toand through other people and to
work effectively as a group memberwork effectively as a group member
Technical Skills : understanding of andTechnical Skills : understanding of and
proficiency in the performance ofproficiency in the performance of
specific tasks.specific tasks.
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Management SkillsManagement SkillsManagement SkillsManagement Skills
Conceptual SkillsConceptual Skills CEOCEO
VPVP VPVP VPVP
MgrMgr
MgrMgr Mgr Mgr
MgrMgr Mgr Mgr
OpOp OpOp OpOpOpOp OpOp
Which level needsWhich level needsconceptual skills theconceptual skills the
most?most?
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Management SkillsManagement SkillsManagement SkillsManagement Skills
Human SkillsHuman Skills CEOCEO
VPVP VPVP VPVP
MgrMgr
MgrMgr Mgr Mgr
MgrMgr Mgr Mgr
OpOp OpOp OpOpOpOp OpOp
To what degree do variousTo what degree do variouslevels of managementlevels of management
needhuman skills?needhuman skills?
ALL needhigh degree.ALL needhigh degree.
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Management SkillsManagement SkillsManagement SkillsManagement Skills
Technical SkillsTechnical Skills CEOCEO
VPVP VPVP VPVP
MgrMgr
MgrMgr Mgr Mgr
MgrMgr Mgr Mgr
OpOp OpOp OpOpOpOp OpOp
LeastLeast
To what degree do theTo what degree do the
various levels needvarious levels need
tech
nical skills?tech
nical skills?
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What Is It Like to Be aWhat Is It Like to Be a
Manager?Manager?
What Is It Like to Be aWhat Is It Like to Be a
Manager?Manager?Managerial ActivitiesManagerial Activities
-- Long hoursLong hours
-- Most time spent in oralMost time spent in oralcommunicationcommunication
-- Characterized by variety,Characterized by variety,
fragmentation,fragmentation, and brevityand brevity
-- Fast paced and require aFast paced and require ahigh energy level tohigh energy level to bebe
successfulsuccessful
Managers give up the rightManagers give up the right
to:to:
-- Be one of the gangBe one of the gang-- Put your selfPut your self--interestinterest
firstfirst
-- Ask others to do thingsAsk others to do things
you wouldnt doyou wouldnt do-- Vent your frustrationsVent your frustrations
-- Resist changeResist change
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Supervisors ResponsibilitiesSupervisors ResponsibilitiesSupervisors ResponsibilitiesSupervisors Responsibilities
Plan and schedulePlan and schedule
workwork
Clarify tasks andClarify tasks and
gather ideas forgather ideas forimprovementimprovement
Appraise and counselAppraise and counsel
employeesemployees
Recommend jobRecommend job
assignments and payassignments and pay
Inform employees ofInform employees oforganizational goalsorganizational goals
Inform higherInform higher
managers of workmanagers of workunit needs andunit needs andaccomplishmentsaccomplishments
Recruit, train, andRecruit, train, and
develop workersdevelop workersEncourage andEncourage and
maintain high andmaintain high andenthusiasmenthusiasm
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InformationalRolesInformationalRoles to develop andto develop and
maintain information networkmaintain information network
InformationalRolesInformationalRoles to develop andto develop and
maintain information networkmaintain information networkTheThe monitormonitorseeks current information fromseeks current information from
many sources.many sources.
TheThe disseminatordisseminatortransmits information to otherstransmits information to othersboth inside and outside the organization.both inside and outside the organization.
TheThe spokespersonspokesperson provides official statements toprovides official statements to
people outside the organization about companypeople outside the organization about company
policies, actions, or plans.policies, actions, or plans.
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InterpersonalRolesInterpersonalRoles pertain topertain to
relationships with othersrelationships with others
InterpersonalRolesInterpersonalRoles pertain topertain to
relationships with othersrelationships with othersTheThefigureheadfigureheadengages in ceremonialengages in ceremonial
activitiesactivities
TheThe leaderleadermotivates, communicates,motivates, communicates,
and influences subordinates.and influences subordinates.
TheThe liaisonliaison develops relationshipsdevelops relationships
outside his/her unit both inside andoutside his/her unit both inside and
outside the organization.outside the organization.
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DecisionalRolesDecisionalRoles toto make choicesmake choices
requiring conceptual & human skills.requiring conceptual & human skills.
DecisionalRolesDecisionalRoles toto make choicesmake choices
requiring conceptual & human skills.requiring conceptual & human skills.
TheThe entrepreneurentrepreneurinitiates change.initiates change.
TheThe resource allocatorresource allocatorallocates resourcesallocates resources
to achieve outcomes.to achieve outcomes.
TheThe negotiatornegotiatorbargains for his/her unit.bargains for his/her unit.
TheThe disturbance handlerdisturbance handlerresolves conflicts.resolves conflicts.
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How Do You LearnHow Do You Learn to Manageto Manage??How Do You LearnHow Do You Learn to Manageto Manage??
50% from job experience50% from job experience
30% from other persons30% from other persons
20% from education & training20% from education & training
(Based on study of successful managers at(Based on study of successful managers atHoneywell)Honeywell)
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Successful Managers
Attributes
Successful Managers
AttributesLeadershipLeadership
TeamTeam--Building SkillsBuilding Skills
SelfSelf--objectivityobjectivity
Analytic ThinkingAnalytic Thinking
Creative ThinkingCreative Thinking
Behavioral FlexibilityBehavioral Flexibility
Oral CommunicationOral Communication
WrittenWritten
CommunicationCommunication
Personal ImpactPersonal Impact
Resistance to StressResistance to Stress
Tolerance ofTolerance ofUncertaintyUncertainty
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StayStay CalmCalm
Tell the truthTell the truthPut people beforePut people before
businessbusiness
Be visibleBe visible
Know when to getKnow when to get
back to businessback to business
Crisis Management Skills
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Some Types of Changes
Impacting Organizations:
Some Types of Changes
Impacting Organizations:ProductsProducts
TechnologiesTechnologies
MarketsMarkets
Speed RequirementsSpeed Requirements
Management TechniquesManagement Techniques
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The Learning OrganizationThe Learning OrganizationThe Learning OrganizationThe Learning OrganizationCONTINUOUSLY IMPROVES based on the lessons ofCONTINUOUSLY IMPROVES based on the lessons of
experience.experience.
It Manages Knowledge:It Manages Knowledge:
Workers must possess and use knowledge.Workers must possess and use knowledge.
Knowledge needed is increasing.Knowledge needed is increasing.
Knowledge needs to be preserved and communicated.Knowledge needs to be preserved and communicated.
CONTINOUS IMPROVEMENT also through:CONTINOUS IMPROVEMENT also through:
TeamsTeamsOpenOpen--book management of informationbook management of information
Empowered workersEmpowered workers
Training (for current job and new career paths)Training (for current job and new career paths)
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Knowledge Mgmt is EspeciallyKnowledge Mgmt is Especially
Important in EImportant in E--CommerceCommerce
Knowledge Mgmt is EspeciallyKnowledge Mgmt is Especially
Important in EImportant in E--CommerceCommerce
E-commerce represents business exchanges
or transactions that occur electronically.
It replaces or enhances the exchange of
money and products with the exchange of
data and information from one computer to
another.
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PrePre--Classical ManagementClassical Management
Anything before about 1900:Anything before about 1900:
e.g.,e.g.,
Attila the HunAttila the Hun
Henry TowneHenry Towne
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Classical PerspectiveClassical Perspective
Emphasized aEmphasized a rationalrational,, scientificscientific approach to study ofapproach to study ofmanagement and sought to make workers andmanagement and sought to make workers and
organizations like efficient operating machinesorganizations like efficient operating machines
Classical CategoriesClassical Categories
Scientific ManagementScientific Management
Frederick TaylorFrederick Taylor
Frank and Lillian GilbrethFrank and Lillian Gilbreth
Bureaucratic OrganizationsBureaucratic Organizations
MaxWeberMaxWeber
Administrative PrinciplesAdministrative Principles
Henri FayolHenri Fayol
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Scientific ManagementScientific Management
Develop a standard method for performingDevelop a standard method for performing
each jobeach job
Select appropriate workersSelect appropriate workers
Train workers in standard methodTrain workers in standard method
Plan work and eliminate interruptionsPlan work and eliminate interruptions
Provide incentives for increased output.Provide incentives for increased output.
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Bureaucratic OrganizationsBureaucratic Organizations
Clearly defined authority andClearly defined authority and
responsibilityresponsibility
Set procedures for each situationSet procedures for each situation
Goals of fairness and efficiencyGoals of fairness and efficiency
Separation of management and ownershipSeparation of management and ownership
i.e., run by professional mgrs.i.e., run by professional mgrs.
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Bureaucratic OrganizationsBureaucratic Organizations
Become dysfunctionalBecome dysfunctional
when:when:
--There is no effort toThere is no effort torecognize exceptions torecognize exceptions to
rules or to change rulesrules or to change rules
when necessarywhen necessary
--Enforcement of rulesEnforcement of rules
takes precedence overtakes precedence over
pursuit of thepursuit of the
organizations missionorganizations mission
RelativelyRelatively HighHigh inin
Bureaucracy:Bureaucracy:
United Parcel ServiceUnited Parcel ServiceU.S. Postal ServiceU.S. Postal Service
RelativelyRelatively LowLow inin
Bureaucracy:Bureaucracy:
HewlettHewlett--PackardPackard
Disney StudiosDisney Studios
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Administrative ManagementAdministrative Management --
Henri FayolHenri Fayol
14 Principles14 Principles
Unity of commandUnity of command
Division of workDivision of work
Unity of directionUnity of direction
Scalar chainScalar chain--ofof--commandcommand
Authority=ResponsibilityAuthority=Responsibility
(etc.)(etc.)
Five basic managementFive basic management
functionsfunctions
PlanningPlanningOrganizingOrganizing
CommandingCommanding
CoordinatingCoordinating
ControllingControlling
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Humanistic PerspectiveHumanistic Perspective
Emphasizes enlightened treatment of workersEmphasizes enlightened treatment of workers
and power sharing between managers andand power sharing between managers and
employees.employees.
Emphasized satisfaction of employeesEmphasized satisfaction of employees
social/psychological needs as the key tosocial/psychological needs as the key to
increased worker productivity.increased worker productivity.Supported by Hawthorne StudiesSupported by Hawthorne Studies
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The Hawthorne StudiesThe Hawthorne Studies
Social ManSocial Man
Methodological Problems, but ProfoundMethodological Problems, but Profound
Influence on Management ThoughtInfluence on Management Thought
Hawthorne EffectHawthorne Effect
Interviewing TechniquesInterviewing Techniques
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The Human ResourcesThe Human Resources
PerspectivePerspective
Jobs should be designed to allow workersJobs should be designed to allow workers
to use their full potentialto use their full potential
Abraham Maslows Hierarchy of NeedsAbraham Maslows Hierarchy of Needs
(Ch. 12)(Ch. 12)
Douglas McGregors Theory X vs. TheoryDouglas McGregors Theory X vs. Theory
Y (comparison of Classical Mgmt toY (comparison of Classical Mgmt toHuman Resources)Human Resources)
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Theory XTheory X(Classical):(Classical):
People dislike work andPeople dislike work andprefer to be directedprefer to be directed
Must be coerced toMust be coerced toworkwork
Want to avoidWant to avoidresponsibility andresponsibility and
have little ambitionhave little ambitionWant security aboveWant security above
everythingeverything
Theory Y (HumanTheory Y (HumanResources):Resources):
People will acceptPeople will accept
responsibilityresponsibility
Have intellect thatHave intellect that
could be applied tocould be applied to
organizational goalsorganizational goals
Only partially use theirOnly partially use theirintellectual potential.intellectual potential.
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Behavioral Sciences ApproachBehavioral Sciences Approach
= Applied Social Sciences= Applied Social Sciences
Study of human behavior in organizationsStudy of human behavior in organizations
Draws on Disciplines of:Draws on Disciplines of:
EconomicsEconomics
PsychologyPsychology
SociologySociology
CommunicationCommunication
AnthropologyAnthropology
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Management ScienceManagement Science
PerspectivePerspective
Involves Mathematics, ComputersInvolves Mathematics, Computers
Examples:Examples:
ForecastingForecasting
Inventory controlInventory control
SchedulingScheduling
BreakBreak--even analysiseven analysis
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Total Quality ManagementTotal Quality ManagementEmphasizes Continuous Improvement inEmphasizes Continuous Improvement in
all Organizational Processesall Organizational Processes
(i.e., in more than Manufacturing)(i.e., in more than Manufacturing)
Led to the Learning OrganizationLed to the Learning Organization
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What The 21st CenturyWhat The 21st Century
Executive Should Be LikeExecutive Should Be Like
Leader/MotivatorLeader/Motivator
Consummate PoliticianConsummate Politician
Master of TechnologyMaster of Technology
Global StrategistGlobal Strategist