Copyright © 2002 by South-Western 1–1 Part 1 Exploring Management and Organizational Behavior The...

Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 1–1–11

Part 1Part 1Exploring Management and Organizational Behavior

• The Nature of Organizationsand Management

• Philosophies and Approaches• Social Responsibility and

Ethics• Organizational Environment


The Setting For Organizational The Setting For Organizational BehaviorBehaviorManagement practices and organization design Management practices and organization design are major contributors to employee attitudes, are major contributors to employee attitudes, motivation, and behaviors.motivation, and behaviors.

FIGURE IFIGURE I–1–1

Management

Organization

Employee Attitudes,

Motivation & Behavior


Strategic ChoicesStrategic Choices

External

Environment

Strategic Choices

Management

Practices

Organization

Design

Employee Attitudes,

Motivation & Behavior

Management

Philosophy

Organizational Goals

(“reason for being”)

FIGURE IFIGURE I–2–2

1–1–44

The Nature of Organizations and Management

C H A P T E R 1

Jon L. Pierce &Donald G. Gardnerwith Randall B. Dunham

Management

OrganizationalBehavior

PowerPoint Presentationby Charlie Cook

An Integrated Perspective

Copyright © 2002 by South-Western


Learning ObjectivesLearning Objectives

1.1. Discuss what organizations are and why they exist.Discuss what organizations are and why they exist.

2.2. Define management and understand what managers do.Define management and understand what managers do.

3.3. Distinguish between the sociological and process Distinguish between the sociological and process perspectives on management.perspectives on management.

4.4. Discuss some of the different types of managers.Discuss some of the different types of managers.

5.5. Identify differences in the way managers execute the Identify differences in the way managers execute the management process.management process.

6.6. Specify the skills that managers need to perform Specify the skills that managers need to perform effectively.effectively.

7.7. Distinguish between management as a process and Distinguish between management as a process and management as a set of roles.management as a set of roles.

8.8. Identify some of the forces that are redefining the role of Identify some of the forces that are redefining the role of the manager.the manager.


The Nature of OrganizationsThe Nature of Organizations

Their Reasons for BeingTheir Reasons for Being Organizations exist to help society satisfy its needs:Organizations exist to help society satisfy its needs:

Environmental adaptationEnvironmental adaptation—p—production organizationsroduction organizations Goal achievementGoal achievement—p—political organizationsolitical organizations Pattern maintenancePattern maintenance—s—socializing organizationsocializing organizations IntegrationIntegration—stability maintenance or deviance reducing —stability maintenance or deviance reducing

organizationsorganizations


Societal Needs

give rise to . . .

Organizations

The Origin of OrganizationsThe Origin of Organizations

FIGURE 1FIGURE 1–1–1


The Origin of Different Types of The Origin of Different Types of OrganizationsOrganizations

DifferentSocietal Needs

give rise to . . .

OrganizationalDifferentiation



Organization DefinedOrganization Defined

““Machine” ApproachMachine” Approach A technical or mechanical system that transforms A technical or mechanical system that transforms

inputs into the goods and services required to serve a inputs into the goods and services required to serve a societal need.societal need.

Social System ApproachSocial System Approach A system characterized by relatively enduring A system characterized by relatively enduring

interaction patterns that link people and people asinteraction patterns that link people and people asthey pursue organizational goals.they pursue organizational goals.


The Machine View of OrganizationThe Machine View of Organization

Imported Resources The Work Organization Exported Goods and Services

Input System Throughput System Output System



Causes of Organizational Causes of Organizational DifferentiationDifferentiation

give rise to . . .

OrganizationalDifferences

Different Goals



The Nature of Organizations (cont’d)The Nature of Organizations (cont’d)

Socio-Technical SystemSocio-Technical System An organization that is both a social and technical An organization that is both a social and technical

system.system. Both systems have different needs that must be Both systems have different needs that must be

managed simultaneously.managed simultaneously.

Additional Perspectives on OrganizationsAdditional Perspectives on Organizations Work organizations—systems that import resources Work organizations—systems that import resources

from outside the organization, convert them into from outside the organization, convert them into products and/or services, and export the results to their products and/or services, and export the results to their consumers.consumers.

Organizational nesting—organizations embedded within Organizational nesting—organizations embedded within organizations.organizations.



The Work of OrganizationsThe Work of Organizations Societal needSocietal need

Organizational response to a society’s adaptation, Organizational response to a society’s adaptation, maintenance, and achievement needs.maintenance, and achievement needs.

Organizational functionsOrganizational functions Production, marketing, finance, accounting, human Production, marketing, finance, accounting, human

resources, and management functions.resources, and management functions. Organizational needOrganizational need

Institutional-level needs for organizational integration Institutional-level needs for organizational integration with the external environment.with the external environment.

Technical core needs to accomplish the daily activities Technical core needs to accomplish the daily activities of producing goods or services.of producing goods or services.



The Work of OrganizationsThe Work of Organizations Organizational Need (cont’d)Organizational Need (cont’d)

Administrative-level need to integrate the institutional Administrative-level need to integrate the institutional needs and the technical core and its diverse work needs and the technical core and its diverse work systems.systems.


The Nature of ManagementThe Nature of Management

What is Management?What is Management? ““Getting things accomplished through other people.”Getting things accomplished through other people.” A philosophy, a set of attitudes and beliefs about A philosophy, a set of attitudes and beliefs about

people, work, action, and organization.people, work, action, and organization.

The Sociological PerspectiveThe Sociological Perspective The belief that management consists of a group of The belief that management consists of a group of

organizational members (organizational members (managersmanagers) who occupy the ) who occupy the social positions responsible for making sure that the social positions responsible for making sure that the organization achieves its mission.organization achieves its mission.

Managers have more reward power, influence, status, Managers have more reward power, influence, status, and responsibility than do and responsibility than do nonmanagersnonmanagers..


Organizational ChartOrganizational ChartA schematic drawing that depicts hierarchical relationships A schematic drawing that depicts hierarchical relationships (chain of command) among all positions in the organization.(chain of command) among all positions in the organization.

Nonmanager

NonmanagersManagers

Key

Nonmanager Nonmanager Nonmanager Nonmanager Nonmanager Nonmanager Nonmanager

Manager

Director Director Director Director Director Director

Manager

Vice President Vice President Vice President

President



The Nature of Management (cont’d)The Nature of Management (cont’d)

The Process PerspectiveThe Process Perspective Management is an activity concerned with the Management is an activity concerned with the

orchestration of people, work, and systems in pursuit orchestration of people, work, and systems in pursuit of organizational goals. (Follett)of organizational goals. (Follett)

Management is the process of planning, organizing, Management is the process of planning, organizing, directing, and controlling organizational resources in directing, and controlling organizational resources in the pursuit of organization goals. (Fayol)the pursuit of organization goals. (Fayol)

ManagersManagers are those organizational members assigned are those organizational members assigned the primary responsibility for carrying out the the primary responsibility for carrying out the management process.management process.


The Range of Management ActivitiesThe Range of Management Activities

PlanningPlanning

OrganizingOrganizing

CommandingCommanding

CoordinationCoordination

ControllingControlling

DirectingDirecting

LeadingLeading

RepresentingRepresenting

ActivatingActivating

InvestigatingInvestigating

CommunicatingCommunicating

Securing EffortsSecuring Efforts

Formulating purposesFormulating purposes

StaffingStaffing

MotivatingMotivating

InnovatingInnovating

Decision makingDecision making

EvaluatingEvaluating

TABLE 1TABLE 1–1–1


The Universalism of ManagementThe Universalism of Management

Business

Across Organizations of Different Size and Types

GovernmentalAgencies

EducationalInstitutions

SocialServices

Health CareDelivery

Across Functional Areas

Production Marketing Finance Personnel

Across Organizational Levels

MiddleManagement

TopManagement

LowerManagement




Four Universal Management FunctionsFour Universal Management Functions Planning—Planning—defining goals and the methods by which defining goals and the methods by which

these goals are to be attained.these goals are to be attained. Organizing—Organizing—designing, structuring, and coordinating designing, structuring, and coordinating

components of an organization to meet its goals.components of an organization to meet its goals. Directing—Directing—orchestrating interpersonal activities, orchestrating interpersonal activities,

leading, and motivating employees to work effectively leading, and motivating employees to work effectively and efficiently in pursuit of organizational goals.and efficiently in pursuit of organizational goals.

Controlling—Controlling—monitoring organizational member monitoring organizational member behavior and organization effectiveness to determine behavior and organization effectiveness to determine whether organization goals are being achieved, and whether organization goals are being achieved, and taking corrective action if necessary.taking corrective action if necessary.


Integrative View of ManagementIntegrative View of Management

Division of LaborDivision of Labor ““Breaking up work into relatively narrow, Breaking up work into relatively narrow,

standardized and repetitive jobs.”standardized and repetitive jobs.” Nonmanagers are assigned technical Nonmanagers are assigned technical

tasks related to the continuing tasks related to the continuing operations of the organization.operations of the organization.

Managers are assigned broaderManagers are assigned broader tasks of planning, organizing, tasks of planning, organizing, directing, and controlling the directing, and controlling the

work of nonmanagers. work of nonmanagers.


The Management ProcessThe Management Process

ResourcesHuman

Financial

Physical

Informational

Goal

Achievements

Management Functions

Planning Organizing Directing Controlling

FIGURE 1FIGURE 1–1–1Source: Adapted from G. Terry, 1972. Principles of Management. Homewood, IL: Irwin, 4.


The Management Process under The Management Process under PressurePressure


When you are up to your elbows in alligators, it’s hard to remember that your objective was to drain the swamp.



Why Organizations Need ManagersWhy Organizations Need Managers To ensure that the technical tasks of an organization To ensure that the technical tasks of an organization

are performed to convert its mission to reality.are performed to convert its mission to reality. To make people capable of joint performance by:To make people capable of joint performance by:

giving them common goals and values,giving them common goals and values, the right environment in which to operate,the right environment in which to operate, and the ongoing training so that they can perform and the ongoing training so that they can perform

and respond to change. (Peter Drucker)and respond to change. (Peter Drucker)


Types of ManagersTypes of Managers

Organizational Responsibility ServedOrganizational Responsibility Served Institutional-level—integrating with its environmentInstitutional-level—integrating with its environment Organizational-level—major organization functionOrganizational-level—major organization function Technical core—skills and operationsTechnical core—skills and operations

Hierarchy DistinctionsHierarchy Distinctions First-level managers—direct nonmanagerial employeesFirst-level managers—direct nonmanagerial employees Second-level managers—direct first-level managersSecond-level managers—direct first-level managers

Functional AreaFunctional Area Managers in areas of specialized activitiesManagers in areas of specialized activities

Marketing, finance, accounting, production, human Marketing, finance, accounting, production, human resourcesresources


Types of Managers (cont’d)Types of Managers (cont’d)

Line and Staff DistinctionsLine and Staff Distinctions Line managers—have “direct” responsibility for Line managers—have “direct” responsibility for

producing the organization’s products and/or services.producing the organization’s products and/or services. Staff managers—have responsibility to “support” line Staff managers—have responsibility to “support” line

managers with expert advice and guidance.managers with expert advice and guidance.

Product, Process, and Geographical AreaProduct, Process, and Geographical Area Product managers—responsible for specific products.Product managers—responsible for specific products. Process managers—supervise a production process.Process managers—supervise a production process. Territory managers—oversee a geographic area.Territory managers—oversee a geographic area.


Types of Managers (cont’d)Types of Managers (cont’d)

Task (Project) ManagersTask (Project) Managers Individuals who are assigned responsibility for an Individuals who are assigned responsibility for an

organizational task or project. They develop the project, organizational task or project. They develop the project, plan and build the project team, and manage it to plan and build the project team, and manage it to completion.completion.

Self and Team ManagersSelf and Team Managers Self managersSelf managers perform technical functions and are perform technical functions and are

empowered to exercise discretion in the performance of empowered to exercise discretion in the performance of their jobs.their jobs.

Team managersTeam managers assume responsibility for facilitating assume responsibility for facilitating the performance of both the team’s technical and the performance of both the team’s technical and managerial activities.managerial activities.


Variations in the Manager’s JobVariations in the Manager’s JobTime PerspectiveTime Perspective

The activities of upper-level managers have longer time The activities of upper-level managers have longer time frames than lower-level managers.frames than lower-level managers.

Time Allocation DifferencesTime Allocation Differences Upper-level managers spend twice as much time Upper-level managers spend twice as much time

planning as lower-level managers.planning as lower-level managers. Lower-level managers spend twice as much time Lower-level managers spend twice as much time

directing the work force as upper-level managers.directing the work force as upper-level managers.

Organizational ScopeOrganizational Scope Top-level managers devise strategic plans for the entire Top-level managers devise strategic plans for the entire

organizationorganization Technical core managers plan on the work unit level.Technical core managers plan on the work unit level.


Hierarchical-Level Differences Hierarchical-Level Differences Among ManagersAmong Managers

Planning Organizing Directing Controlling

Controlling

Controlling

Directing

Directing

Organizing

Organizing

Planning

Planning

Upper-Level

Managers

Middle-Level

Managers

Lower-Level

Managers

Proportion of Time



Functional-Area Managerial Functional-Area Managerial DifferencesDifferences

Planning Organizing Directing

Controlling

Controlling

Controlling

Controlling

Directing

Directing

Directing

Organizing

Organizing

Organizing

Planning

Planning

Planning

HumanResourceManagers

FinancialManagers

MarketingManagers

ProductionManagers

Proportion of Time


Source: Based on data from J. Home and T. Lupton. 1965. The Work Activities of Middle Managers: An Exploratory Study. Journal of Management Studies 2:14–33.


Variations in the Manager’s JobVariations in the Manager’s Job

Organizational ScopeOrganizational Scope Top-level managers devise strategic plans for the Top-level managers devise strategic plans for the

entire organization, whereas technical core managers entire organization, whereas technical core managers plan on the organizational work unit level.plan on the organizational work unit level.

Skills Needed by ManagersSkills Needed by Managers Technical skills—to understand and use the tools, Technical skills—to understand and use the tools,

procedures, and techniques needed to do the job.procedures, and techniques needed to do the job. Human (interpersonal) skills—to work with and to Human (interpersonal) skills—to work with and to

manage relationships with others alone and in groups.manage relationships with others alone and in groups. Conceptual skills—to deal with abstract concepts and Conceptual skills—to deal with abstract concepts and

process complex information properly.process complex information properly.


Managerial RolesManagerial Roles

Interpersonal RolesInterpersonal Roles Organizational roles that involve serving as a Organizational roles that involve serving as a

figurehead, leader, and liaison for an organization.figurehead, leader, and liaison for an organization.

Informational RolesInformational Roles Organizational roles that involve monitoring, Organizational roles that involve monitoring,

disseminating, and serving as a organizational disseminating, and serving as a organizational spokesperson.spokesperson.

Decisional RolesDecisional Roles Organizational roles that involve serving as an Organizational roles that involve serving as an

entrepreneur, disturbance handler, resource allocator, entrepreneur, disturbance handler, resource allocator, and negotiatorand negotiator


Mintzberg’s Three Managerial Roles: Mintzberg’s Three Managerial Roles: The InterrelationshipThe Interrelationship

Interpersonal

Role

Informational

Role

Information +

Power and

Responsibility

Decisional

Role


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