fundamentals of management

Fundamentals ofCore Concepts & ApplicationsGriffin Third EditionMANAGEMENTPowerPoint Presentation by Charlie CookCopyright 2003 Houghton Mifflin Company. All rights reserved.Chapter 1Understanding the Managers Job

Copyright by Houghton Mifflin Company. All rights reserved. 1*Chapter OutlineAn Introduction to ManagementKinds of ManagersBasic Management FunctionsFundamental Management SkillsThe Science and the Art of ManagementThe Evolution of ManagementThe Importance of Theory and HistoryThe Historical Context of ManagementThe Classical Management Perspective

Copyright by Houghton Mifflin Company. All rights reserved.

Copyright by Houghton Mifflin Company. All rights reserved. 1*Chapter Outline (contd)The Evolution of Management (contd)The Behavioral Management PerspectiveThe Quantitative Management PerspectiveContemporary Management ThoughtThe Systems PerspectiveThe Contingency PerspectiveContemporary Management Issues and Challenges


Copyright by Houghton Mifflin Company. All rights reserved. 1*Learning ObjectivesAfter studying this chapter, you should be able to:Define management, describe the kinds of managers found in organizations, and briefly explain the four basic management functions. Justify the importance of history and theory to management and explain the evolution of management thought.Discuss contemporary management issues and challenges.


Copyright by Houghton Mifflin Company. All rights reserved. 1*What is Management?A set of activitiesplanning and decision making, organizing, leading, and controllingdirected at an organizations resources human, financial, physical, and informationwith the aim of achieving organizational goals in an efficient and effective manner.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Basic Purpose of ManagementEFFICIENTLY Using resources wisely and in a cost-effective wayEFFECTIVELY Making the right decisions and successfully implementing them


Copyright by Houghton Mifflin Company. All rights reserved. 1*EfficiencyversusEffectivenessSource: Van Fleet, David D., Contemporary Management, Second Edition. Copyright 1991 by Houghton Mifflin Company. Used with permissions.


1-*Figure 1.2 Balancing Effectiveness and Efficiency

Copyright by Houghton Mifflin Company. All rights reserved. 1*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.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Kinds of Managers by LevelTop ManagersThe relatively small group of executives who manage the organizations overall goals, strategy, and operating policies.Middle ManagersLargest group of managers in organizations who are primarily responsible for implementing the policies and plans of top managers. They supervise and coordinate the activities of lower-level managers.First-Line ManagersManagers who supervise and coordinate the activities of operating employees.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Kinds of Managers by AreaMarketing ManagersWork in areas related to getting consumers and clients to buy the organizations products or services.Financial ManagersDeal primarily with an organizations financial resources.Operations ManagersConcerned with creating and managing the systems that create organizations products and services.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Kinds of Managers by Area (contd)Human Resource ManagersInvolved in human resource planning, recruiting and selection, training and development, designing compensation and benefit systems, formulating performance appraisal systems.Administrative ManagersGeneralists who are familiar with all functional areas of management and who are not associated with any particular management specialty. Other Kinds of ManagersSpecialized managerial positions directly related to the needs of the organization.


Copyright by Houghton Mifflin Company. All rights reserved. 1*The Management Process (contd)Planning and Decision MakingSetting an organizations goals and selecting a course of action from a set of alternatives to achieve them.OrganizingDetermining how activities and resources are grouped.Leading The set of processes used to get organizational members to work together to advance the interests of the organization.Controlling Monitoring organizational progress towards goals.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Fundamental Management SkillsTechnicalSkills necessary to accomplish or understand the specific kind of work being done in an organization.InterpersonalThe ability to communicate with, understand, and motivate both individuals and groups.ConceptualThe managers ability to think in the abstract.DiagnosticThe managers ability to visualize the most appropriate response to a situation.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Fundamental Management Skills (contd)CommunicationThe managers abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others.Decision-MakingThe managers 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-ManagementThe managers ability to prioritize work, to work efficiently, and to delegate appropriately.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Management: Science or Art?The Science of ManagementAssumes 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.


Copyright by Houghton Mifflin Company. All rights reserved. 1*The Importance of Theory and HistoryWhy Theory?A theory is a conceptual framework for organizing knowledge and providing a blueprint for action.Management theories, used to build organizations, are grounded in reality. Most managers develop their own theories about how they should run their organizations.Why History?An awareness and understanding of important historical developments in management are also important to contemporary managers in furthering the development of management practices and in avoiding the mistakes of others in the past.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Early Management PioneersRobert Owen (17711858)British industrialist who was one of the first managers to recognize the importance of human resources and the welfare of workers.Charles Babbage (17921871)English mathematician who focused on creating efficiencies of production through the division of labor, and the application of mathematics to management problems.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Classical Management PerspectiveScientific ManagementConcerned with improving the performance of individual workers (i.e., efficiency).Grew out of the industrial revolutions labor shortage at the beginning of the twentieth century.Administrative Management A theory that focuses on managing the total organization.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Scientific ManagementFrederick Taylor (18561915) Replaced old methods of how to do work with scientifically-based work methods to eliminate 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.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Steps in Scientific ManagementDevelop a sciencefor each element ofthe job to replace oldrule-of-thumb methodsScientifically selectemployees and thentrain them to do the jobas described in step 1Supervise employeesto make sure theyfollow the prescribedmethods for performingtheir jobsContinue to plan the work, but use workers to get the work done2143Figure 1.3


Copyright by Houghton Mifflin Company. All rights reserved. 1*Scientific Management PioneersFrank and Lillian GilbrethBoth developed techniques and strategies for eliminating inefficiency.Frank reduced the number of movements in bricklaying, resulting in increased output of 200%.Lillian made substantive contributions to the fields of industrial psychology and personnel management.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Classical Management Perspective (contd)Administrative Management TheoryFocuses on managing the whole organization rather than individuals.Henri Fayol (18451925)Was first to identify the specific management functions of planning, organizing, leading, and controlling.Lyndall Urwick (18911983)Integrated the work of previous management theorists.Max Weber (18641920)His theory of bureaucracy is based on a rational set of guidelines for structuring organizations.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Classical Management PerspectiveTodayContributionsLaid the foundation for later developments.Identified important management processes, functions, and skills.Focused attention on management as a valid subject of scientific inquiry.LimitationsMore appropriate approach for use in traditional, stable, simple organizations.Prescribed universal procedures that are not appropriate in some settings.Employees are viewed as tools rather than as resources.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Behavioral Management PerspectiveBehavioral ManagementEmphasized individual attitudes and behaviors, and group processes, and recognized the importance of behavioral processes in the workplace.Hugo Munsterberg (18631916)A German psychologist, considered the father of industrial psychology, who advocated the practice of applying psychological concepts to employees selection and motivation industrial settings.Mary Parker Follett (1868 1933)Recognized the importance of the role of human behavior in the workplace.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Key Managerial Roles (Minsterberg)Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright 1991 by Houghton Mifflin Company. Used with permissions.


1-*Source: Adapted from Henry Mintzberg, Managerial Work: Analysis from Observation, Management Science, 18 (October 1971): B97-B110.Figure 1.5 Mintzbergs Managerial Roles (a)

1-*Source: Adapted from Henry Mintzberg, Managerial Work: Analysis from Observation, Management Science, 18 (October 1971): B97-B110.Figure 1.5 Mintzbergs Managerial Roles (b)

1-*Source: Adapted from Henry Mintzberg, Managerial Work: Analysis from Observation, Management Science, 18 (October 1971): B97-B110.Figure 1.5 Mintzbergs Managerial Roles (c)

Copyright by Houghton Mifflin Company. All rights reserved. 1*The Hawthorne Studies (19271932)Conducted by Elton Mayo and associates at Western ElectricIllumination studyworkplace lighting adjustments affected both the control and the experimental groups of production employees.Group studyimplementation of piecework incentive plan caused production workers to establish informal levels of acceptable individual output.Over-producing workers were labeled rate busters and under-producing workers were considered chiselers.Interview programconfirmed the importance of human behavior in the workplace.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Behavioral Management Perspective(contd)Human Relations MovementGrew out of the Hawthorne studies.Proposed that workers respond primarily to the social context of work, including social conditioning, group norms, and interpersonal dynamics.Assumed that the managers concern for workers would lead to increased worker satisfaction and improved worker performance.


Copyright by Houghton Mifflin Company. All rights reserved. 1*The Human Relations View of ManagementSource: Van Fleet, David D., Contemporary Management, Second Edition. Copyright 1991 by Houghton Mifflin Company. Used with permissions.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Behavioral Management Perspective (contd)Abraham MaslowAdvanced a theory that employees are motivated by a hierarchy of needs that they seek to satisfy.Douglas McGregorProposed Theory X and Theory Y concepts of managerial beliefs about people and work.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Theory X and Theory YTheory X AssumptionsPeople do not like work and try to avoid it.People do not like work, so managers have to control, direct, coerce, and 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.Table 1.1Source: Douglas McGregor, The Human Side of Enterprise, Copyright 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Theory X and Theory Y (contd)Theory Y AssumptionsPeople do not dislike work; work is a natural part of their lives.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.People seek both seek responsibility and accept responsibility under favorable conditions.People can be innovative in solving problems.People are bright, but under most organizational conditions their potentials are underutilized.Table 1.1 (contd)Source: Douglas McGregor, The Human Side of Enterprise, Copyright 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.


Copyright by Houghton Mifflin Company. All rights reserved. 1* Organizational BehaviorA 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 stressMotivation and leadershipGroup dynamics and organizational politicsInterpersonal conflictThe structure and design of organizations


Copyright by Houghton Mifflin Company. All rights reserved. 1*Behavioral Management PerspectiveTodayContributionsProvided important insights into motivation, group dynamics, and other interpersonal processes.Focused managerial attention on these critical processes.Challenged the view that employees are tools and furthered the belief that employees are valuable resources.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Behavioral Management PerspectiveToday (contd)LimitationsComplexity of individuals makes behavior difficult to predict.Many concepts not put to use because managers are reluctant to adopt them.Contemporary research findings are not often communicated to practicing managers in an understandable form.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Quantitative Management Perspective Quantitative ManagementEmerged 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.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Quantitative Management Perspective (contd) Management ScienceFocuses on the development of representative mathematical models to assist with decisions.Operations ManagementPractical application of management science to efficiently manage the production and distribution of products and services.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Quantitative Management PerspectiveTodayContributionsDeveloped 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.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Quantitative Management PerspectiveToday (contd)LimitationsQuantitative 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.


Copyright by Houghton Mifflin Company. All rights reserved. 1*The Systems Perspective of OrganizationsInputs from theenvironment:material inputs,human inputs,financial inputs, andinformation inputsTransformationprocess: technology,operating systems,administrativesystems, andcontrol systemsOutputs intothe environment:products/services,profits/losses,employee behaviors,and informationoutputsFeedbackFigure 1.4


Copyright by Houghton Mifflin Company. All rights reserved. 1*Integrating Perspectives for ManagersSystems PerspectiveA system is an interrelated set of elements functioning as a whole.Open systemAn organizational system that interacts with its environment.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Integrating Perspectives for Managers (contd)Closed systemAn organizational system that does not interact with its environment.SubsystemsA system within another system. Their importance is due to their interdependence on each other within the organization.


Copyright by Houghton Mifflin Company. All rights reserved. 1*The Systems PerspectiveSynergySubsystems are more successful working together in a cooperative and coordinated fashion than working alone.The whole system (subsystems working together as one system) is more productive and efficient than the sum of its parts.


Copyright by Houghton Mifflin Company. All rights reserved. 1*The Systems Perspective(contd)EntropyA normal process in which an organizational system declines due to failing to adjust to change in its environmentEntropy can be avoided and the organization re-energized through organizational change and renewal.


Copyright by Houghton Mifflin Company. All rights reserved. 1*The Contingency PerspectiveUniversal PerspectivesInclude the classical, behavioral, and quantitative approaches.An attempt to identify the one best way to manage organizations.The Contingency PerspectiveSuggests that each organization is unique.The appropriate managerial behavior for managing an organization depends (is contingent) on the current situation in the organization.


Copyright by Houghton Mifflin Company. All rights reserved. 1*The Contingency Perspective (contd)Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright 1991 by Houghton Mifflin Company. Used with permissions.


Copyright by Houghton Mifflin Company. All rights reserved. 1*Contemporary Management Issues and ChallengesAcute labor shortages in high-technology job sectors and an oversupply of less skilled laborAn increasingly diverse and globalized workforceThe need to create challenging, motivating, and flexible work environmentsThe effects of information technology on how people workThe complex array of new ways of structuring organizations


Copyright by Houghton Mifflin Company. All rights reserved. 1*Contemporary Management Issues and Challenges (contd)Increasing globalization of product and service marketsThe renewed importance of ethics and social responsibilityThe use of quality as the basis for competitionThe shift to a predominately service-based economy


fundamentals of management

Documents

Transcript of fundamentals of management