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mgt162 chapter1

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Page 1: mgt162 chapter1
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management CHAPTER 1

Introduction to

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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

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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)

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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

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High

Lo

w

Poor Good

A B

C D

Go

al

Att

ain

me

nt

(Eff

ect

ive

ne

ss)

Resource Utilization (Efficiency)

Performance Effectiveness &

Performance Efficiency As Foundations For Productivity

& Managerial Success

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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

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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:

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• There are 3 basic skills required by managers:

3 Basic skills

Technical skills (T) Human skills (H) Conceptual skills (C)

Management Skills:

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Top

Middle

Lower

H

H

H

T

T

T

C

C

C

H Human skill

T C Technical skill

Conceptual skill

Relative Skills Needed For

Effective Performance At Different Levels Of

Management

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Technical

First-line Management (Production Supervisor)

Human

Conceptual

Technical

Middle Management (Marketing Manager)

Human

Conceptual

Technical

Top-Level Management (CEO President)

Human

Conceptual

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Managerial Roles:

Interpersonal roles

Decisional roles

Informationalroles

Figurehead Leader Liaison

Monitor Disseminator Spokesperson

Enterpeneur Resource Allocator Negotiator

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1.5: Evolution of management thoughts

Environmental factors influencing

management thought

Economic influences Social influences

Political influences technological influences

global influences

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Chronological Development

of Management Thought:

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Focuses on the individual

worker’s productivity

Focuses on the

functions of

management

Focuses on the

overall organizational

system

Classical Perspective

on management:

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• 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

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• 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

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• 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.

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Focused on rational behavior

Classical Perspective

Acknowledged the importance of human

behavior

Behavioral Perspective

vs.

Classical versus Behavioral Perspective

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• 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

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Systems Perspective:

• An approach to problem solving based that attacks complex systems by breaking them down into their constituent elements

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• 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

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• 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

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