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									                                    Chapter Outline
• An Introduction to Management
  – Kinds of Managers
  – Basic Management Functions
  – Fundamental Management Skills
• The Evolution of Management
  – Classical Management Perspective
       • Scientific Management & Administrative Theory
  – The Behavioral Management Perspective
       • Human Relations and Human Resources Management
  – The Quantitative Management Perspective
• Contemporary Management Thought
  – The Systems Perspective
  – The Contingency Perspective
  – Contemporary Management Challenges and Opportunities


  Copyright © 2005 by Houghton Mifflin Company. All rights reserved.   1–1
                                        Management
A form of work that involves coordinating an organization’s
human, financial, physical and information resources
toward accomplishing organizational objectives.

Attainment of organizational goals in an effective and
efficient manner through planning, organizing, leading and
controlling organizational resources.

NOTE THESE CHARACTERISTICS:
     Goal-driven
     Activity is effective and efficient
     Uses the four managerial functions

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                          What is Management?
A set of activities
planning and decision making, organizing, leading, and
controlling
directed at an organization’s resources
human, financial, physical, and information
with the aim of achieving organizational goals
in an efficient and effective
manner.




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   Efficiency
    versus
 Effectiveness


        Efficiency:                                                             Effectiveness:
        Operating in                                                              Doing the right
                                               Successful
        such a way                                                                  things in the
        that resources
                                               Management
                                                                                     right way at
        are not wasted                                                            the right times




                Source: Adapted from Van Fleet, David D., Contemporary Management, Second Edition.
                        Copyright © 1991 by Houghton Mifflin Company. Used with permission.


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                             What is a Manager?
• Someone whose primary responsibility is to
  carry out the management process.
• Someone who plans and makes decisions,
  organizes, leads, and controls
  human, financial, physical,
  and information resources.




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              Figure 1.1
  Kinds of Managers by Level and Area




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                  Kinds of Managers by Level
• Top Managers
  –The relatively small group of executives who manage
   the organization’s overall goals, strategy, and
   operating policies.
• Middle Managers
  –Largest group of managers in organizations
       • Implement top management’s policies and plans.
       • Supervise and coordinate lower-level managers’ activities.
• First-Line Managers
  –Managers who supervise and coordinate the activities
   of operating employees.


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              Examples of Managers by Area
• Marketing Managers
  – Work in areas related to getting consumers and clients to buy the
    organization’s products or services.
• Financial Managers
  – Deal primarily with an organization’s financial resources.
• Operations Managers
  – Concerned with creating and managing the systems that create
    organization’s products and services
• Human Resource Managers
  – Involved in planning, recruiting and selection, training and
    development, designing compensation and benefit systems,
    formulating performance appraisal systems.
• Administrative Managers
  – Serve as generalists in functional areas and are not associated
    with any particular management specialty.


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                   Management in Organizations




                                             Planning
                                           and decision              Organizing
                                              making
Inputs from the environment
• Human resources                                                                 Goals attained
• Financial resources                                                             • Efficiently
• Physical resources                                                              • Effectively
• Information resources

                                            Controlling               Leading




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                  The Management Process




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              The Functions of Management
• Planning
  –Setting an organization’s goals and selecting a course
   of action to achieve them.
• Organizing
  –Determining how activities and resources are grouped.
• Leading
  –Getting organizational members to work together to
   advance the interests of the organization.
• Controlling
  –Monitoring organizational progress towards goals.


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        Planning and Organizing Involve…
• Planning
  – Environmental scanning and analysis
  – Developing a vision of the future
  – Setting long-term organizational objectives
  – Developing organizational and competitive strategies


• Organizing
  – Defining tasks and duties
  – Grouping positions into effective structures (departments)
  – Clarifying authority, responsibility, and reporting relationships
  – Allocating scarce resources (financial, human, physical)
  – Staffing positions with qualified personnel



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          Leading and Controlling Involve…
• Leading
  –Effective communication
  –Inspiring others to do their best
  –Motivation and rewards
  –Trust and assurance

• Controlling
  –Clear standards
  –Monitoring progress and results
  –Knowing when and how to intervene
  –Correcting deviations successfully


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Administration and Management
  A system whereby public or private enterprises conduct
 their business. Administration is concerned with
 planning, programming and evaluation. Along with
 administration there must be consideration of
 management, which as a part of administration, is a
 rational technique enabling administrators to fully
 develop their human, technical and financial resources.
 The term administration is often used to denote broad
 policy and the term "management" to be the execution of
 such policy and a matter of subordinate concern.
Skills and the
  Manager                                                    Technical Skills

                                                             Interpersonal Skills

                                                             Conceptual Skills
                Fundamental
                Management                                   Diagnostic Skills
                   Skills
                                                             Communication Skills

                                                             Decision-Making Skills

                                                             Time-Management Skills


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           Fundamental Management Skills
• Technical
  –Skills necessary to accomplish or understand the
   specific kind of work being done in an organization.
• Interpersonal
  –The ability to communicate with, understand, and
   motivate both individuals and groups.
• Conceptual
  –The manager’s ability to think in the abstract and to
   see the “big picture.” To perceive how all the parts fit
   together.



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                3 Primary Managerial Skills                                     (KATZ)




• Technical skills                                   FOCUS IS ON WHAT IS DONE

  –Specialized knowledge and proficiency
  –Analytical ability
  –Works with things, tools and techniques
• Interpersonal skills FOCUS IS ON HOW SOMETHING IS DONE
  –Works with and through people
  –Effective as a group/team member
  –Motivates, communicates, & resolves conflicts
• Conceptual skills                             FOCUS IS ON WHY SOMETHING IS DONE

  –Sees the “big picture” (how the parts fit together)
  –Understands the corporation as a whole
  –Future-oriented…thinks strategically

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 Fundamental Management Skills (cont’d)
Diagnostic
  – The manager’s ability to visualize the most appropriate response
    to a situation.
• Communication
  – The manager’s abilities both to convey ideas and information
    effectively to others and to receive ideas and information
    effectively from others.
• Decision-Making
  – The manager’s ability to recognize and define problems and
    opportunities correctly and then to select an appropriate course
    of action to solve the problems and capitalize on opportunities.
• Time-Management
  – The manager’s ability to prioritize work, to work efficiently, and to
    delegate appropriately.



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    Management Skill Mixes at Different
         Organizational Levels




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                   Managerial Activities                               MINTZBERG


• Characterized by variety, fragmentation, and brevity
  – Little time for quiet reflection
  – Crises are interspersed with trivial events
  – Must be able to shift gears quickly
• Managers perform a great deal of work at an unrelenting
  pace.

• In one day…
  – Processed 36 memos, letters and notes
  – Attended 8 meetings
  – Got 11 phone calls
  – Met with some very unhappy customers
  – Refereed two internal managerial disputes
  – Spent an average of 9 minutes on each task during the day


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       Key Managerial Roles (Mintzberg)

                                     Key Management
                                          Roles



Interpersonal                               Informational             Decisional
    Roles                                       Roles                   Roles
 1. Figurehead                            1. Monitor                 1. Entrepreneur
 2. Leader                                2. Disseminator               (Innovator)
 3. Liaison                               3. Spokesperson            2. Disturbance
                                                                        handler
                                                                     3. Resource
                                                                        Allocator
                                                                     4. Negotiator

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                          Managerial Role
1.Interpersonal

Figurehead
Attempting ribbon –cutting ceremony for new plant

Leader
Encouraging employee to improve productivity

Liaison
Coordinating activities of two project groups

2.Informational

Monitor
Scanning industry reports to stay abreast of development
Disseminator
Sending memos outlining new organizational initiatives



Spokesperson
Making a speech to discuss growth plans


3. Decisional

Entrepreneur
Developing new ideas for innovation


Disturbance Handler
Resolving conflict between two subordinates
Resource Allocator
Reviewing and revising budget request
Negotiator
Reaching agreement with a key supplier or labor union
                 Managerial Success Factors
• Personal Factors
  –Abilities and skills
  –Motivation
  –Personality
• Situational Factors
  –Nature of the work and environment
  –Relationships with subordinates and supervisors
  –Abilities of subordinates
• Actions Taken
  –Appropriate for the situation?
• Luck
  –Being in the right place at the right time?
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                Management: Science or Art?
• The Science of Management
 –Assumes that problems can be approached using
  rational, logical, objective, and systematic ways.
 –Requires technical, diagnostic, and decision-making
  skills and techniques to solve problems.
• The Art of Management
 –Decisions are made and problems solved using a
  blend of intuition, experience, instinct, and personal
  insights.
 –Requires conceptual, communication, interpersonal,
  and time-management skills to accomplish the tasks
  associated with managerial activities.


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                     The Importance of Theory
Most managers develop theories about how to run the
 organization
Management Models represents the “real world” and how it
 functions
Provides a framework for organizing knowledge & a
 blueprint for action
  – Helps us organize our knowledge
  – Tells us what to pay attention to and what to ignore
  – Helps us to understand why events occur (causal relationships)
  – Summarizes diverse findings and highlights relationships
  – Gives guidance about how to bring about positive change




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     History of Management Through the Ages



                                                           D Greeks

            C Babylonians                                                                       G Venetians

     B Egyptians                                               E Romans

     A Sumerians                             F Chinese


3000 B.C.   2500 B.C.     2000 B.C.     1500 B.C.     1000 B.C.     500 B.C.                A.D.500    A.D.1000      A.D.1500


A Used written rules and regulations for governance                E Used organized structure for communication and control

B Used management practices to construct pyramids                  F Used extensive organization structure for government
                                                                     agencies and the arts
C Used extensive set of laws and policies for governance
                                                                   G Used organization design and planning concepts to
D Used different governing systems for cities and state              control the seas




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                  Early Management Pioneers
• Robert Owen (1771–1858)
 –British industrialist who was one of the first managers
  to recognize the importance of human resources and
  the welfare of workers.
• Charles Babbage (1792–1871)
 –English mathematician who focused on creating
  efficiencies of production through the division of labor,
  and the application of mathematics
  to management problems.




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        Classical Management Perspective
• Scientific Management
  –Concerned with improving the performance of
   individual workers (i.e., efficiency).
  –Grew out of the industrial revolution’s labor shortage
   at the beginning of the twentieth century.
• Administrative Management
  –A theory that focuses on
   managing the total organization
   rather than individuals.




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                          Scientific Management
• Frederick Taylor (1856–1915)
  –Replaced old methods of how to do work with
   scientifically-based work methods.
       • Eliminated “soldiering,” where employees deliberately worked
         at a pace slower than their capabilities.
  –Believed in selecting, training, teaching, and
   developing workers.
  –Used time studies of jobs, standards planning,
   exception rule of management, slide-rules, instruction
   cards, and piece-work pay systems to control and
   motivate employees.



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           Steps in Scientific Management




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                                   Frederick Taylor
• Work Experiments
  – Midvale Steel
  – Simonds Rolling Machine Co.
  – Bethlehem Steel
       • Pig Iron
       • Shoveling


• Contributions
  – Time Study
  – Standards for Work
  – Job Specialization
  – Managerial Planning and Control
  – Worker Selection and Training
  – Incentives

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           Others in Scientific Management
• Henry Gantt
  –Gantt Charts
  –Sliding Incentives for Workers
  –Incentives for Supervisors


• Frank & Lillian Gilbreth
  –Motion Studies (therbligs)
  –Fatigue Reduction
  –Suggestion Systems



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        Summary of Scientific Management
• Assumptions
   – Productivity is a primary workplace problem
   – Managers should plan and direct the work
   – Individuals are economically motivated
• Contributions
   – “Scientific” or systematic study of work (time and motion)
   – Division of labor…Managers vs workers
   – Setting of work standards (and job descriptions)
   – Careful selection and training of workers
   – Use of Incentives
• Limitations
   – Social “needs” of workers overlooked
   – Many studies weren’t very scientific
   – Loss of self-control alienated workers
   – Group dynamics were ignored
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       Administrative Management Theory
• Focuses on managing the whole organization
  rather than individuals

  –Henri Fayol (1841–1925)
       • Was first to identify the specific management functions of
         planning, organizing, leading, and controlling.
  –Lyndall Urwick (1891–1983)
       • Integrated the work of previous management theorists.
  –Max Weber (1864–1920)
       • His theory of bureaucracy is based on a rational set of
         guidelines for structuring organizations.



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      Administrative Theory – Henry Fayol
• Functions of Management
  – Planning
  – Organizing
  – Commanding
  – Coordinating
  – Controlling


• Principles of Management
  – Division of Labor (specialization)
  – Scalar Chain of Command (hierarchy of authority)
  – Unity of Command (only one superior for each worker)
  – Span of Control (number of subordinates supervised)



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          Summary of Administrative Theory
• Assumptions
   – There is an ideal way to structure the organization and administer
     the management processes necessary for organizational success
   – Management skills are generalizable
• Contributions
   – Functions and Principles of management
   – Ideal Bureaucracy
   – Raised awareness of basic management problems likely to be
     found in any organization
• Limitations
   – Stressed a “one-best-way” of organizing and managing
   – Theories were based on intuition and observation rather than
     empirical investigation
   – Principles are not applicable to organizations which exist in
     turbulent environments
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 The Behavioral Management Perspective
• Emphasizes individual attitudes and behaviors
  and group processes and recognized the
  importance of behavioral processes in the
  workplace.
• The behavioral management perspective was
  stimulated by a number of writers and
  theoretical movements. One of those
  movements was Industrial psychology, the
  practice of applying psychological concepts to
  industrial concept.


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• Hugo Munsterberg (1863-1916) a noted
  German psychologist is recognized as the father
  of industrial psychology. He established a
  psychological laboratory at Harvard in 1892 and
  his pioneering book Psychology and Industrial
  Efficiency was translated into English in 1913.
  He suggested that psychologist could make
  valuable contributions to managers in the areas
  of employee selections and motivation.




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• Another early advocate in the of the behavioral
  approach to management was Mary Parker
  Follett (1868-1933). Indeed her work clearly
  anticipated the behavioral management
  perspective she appreciated the need to
  understand the role of behavior in organizations.




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   Emergence of Organizational Behavior
• A contemporary field focusing on behavioral
  perspectives on management.
  –Draws on psychology, sociology, anthropology,
   economics, and medicine.
• Important topics in organizational behavior
  research:
  –Job satisfaction and job stress
  –Motivation and leadership
  –Group dynamics and organizational politics
  –Interpersonal conflict
  –The structure and design of organizations



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    Human Resource Management Views
• Assumptions
  – Interesting work motivates intrinsically
  – Workers are trustworthy…give them responsibility
  – The Manager’s job is to challenge workers to develop their
    talents
• Contributions
  – Theory X and Y
  – Participative decision-making and management
  – Job Enrichment and Job Redesign
  – Management by Objectives
  – More rigorously-tested theories
• Limitations
  – Not everyone wants a challenging job
  – Complexity of individuals makes behavior difficult to predict.
  – Contemporary research findings are not often communicated to
    practicing managers in an understandable form.
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   Quantitative Management Perspective
• Quantitative Management
 –Emerged during World War II to help the Allied forces
  manage logistical problems.
 –Focuses on decision making, economic effectiveness,
  mathematical models, and the use of computers to
  solve quantitative problems.




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           Quantitative Management, Contd


• Management Science
 –Focuses on the development of representative
  mathematical models to assist with decisions.
• Operations Management
 –Practical application of management
  science to efficiently manage the
  production and distribution
  of products and services.
• Quality Management
 –Statistical improvement models

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                      Quantitative Management

• Contributions
  – Developed sophisticated quantitative techniques to assist in
    decision making.
  – Application of models has increased our awareness
    and understanding of complex processes and situations.
  – Has been useful in the planning and controlling processes.
• Limitations
  – Quantitative management cannot fully explain or predict the
    behavior of people in organizations.
  – Mathematical sophistication may come at the expense of other
    managerial skills.
  – Quantitative models may require unrealistic or unfounded
    assumptions, limiting their general applicability.


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The Systems Perspective of Organizations




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      Systems Perspectives for Managers
• A system is an interrelated set of elements functioning
  as a whole

• Open system
  – An organizational system that interacts with its environment.
• Closed system
  – An organizational system that does not interact with its
    environment.
• Subsystems
  – A system within another system. Their importance is due to their
    interdependence on each other within the organization.




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                The Contingency Perspective
• Universal Perspectives
  –Include the classical, behavioral, and quantitative
   approaches.
  –An attempt to identify the “one best way” to manage
   organizations.
• The Contingency Perspective
  –Suggests that each organization is unique.
  –The appropriate managerial behavior for
   managing an organization depends
   (is contingent) on the current
   situation in the organization.


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  The Contingency Perspective (cont’d)


                                   Problem or Situation



                                          Important
                                         Contingencies



    Solution or                              Solution or                               Solution or
     Action A                                 Action B                                  Action C

                     Source: Van Fleet, David D., Contemporary Management, Second Edition.
                      Copyright © 1991 by Houghton Mifflin Company. Used with permission.

Copyright © 2005 by Houghton Mifflin Company. All rights reserved.                                   1–50
                An Integrative Framework
              of Management Perspectives

        Systems Approach                                             Contingency Perspective
        • Recognition of internal                                    • Recognition of the situational
          interdependencies                                            nature of management
        • Recognition of                                             • Response to particular
          environmental influences                                     characteristics of situation

           Classical                         Behavioral                       Quantitative
           Management                        Management                       Management
           Perspectives                      Perspectives                     Perspectives
           Methods for                       Insights for moti-               Techniques for
           enhancing                         vating performance               improving decision
           efficiency and                    and understanding                making, resource
           facilitating planning,            individual behavior,             allocation, and
           organizing, and                   groups and teams,                operations
           controlling                       and leadership



                                  Effective and efficient management


Copyright © 2005 by Houghton Mifflin Company. All rights reserved.                                      1–51

								
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