Intro to POM & Theory

8/6/2019 Intro to POM & Theory

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INTRODUCTION


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` Organization A systematicarrangementofpeople broughttogetherto

accomplish some specific purpose;applies toall

organizations. Wheremanagers work (manage).

` CommonCharacteristics ofOrganizations Distinct purposeandgoals

People Systematic structure


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` Operatives People who workdirectly ona job ortaskandhaveno

responsibility foroverseeingthe workofothers.

` Managers

Individuals inanorganization whodirecttheactivities of

others.


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` First-lineManagers Supervisors responsiblefordirectingtheday-to-day

activities ofoperativeemployees

` Middle

Managers

Individuals at levels ofmanagement betweenthefirst-line

managerandtop management

` Top Managers Individuals whoareresponsibleformakingdecisions

aboutthedirectionoftheorganizationandestablishing

policies thataffectall organizational members


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` Management The process ofgettingthings done,effectively and

efficiently,throughand withotherpeople

Efficiency

x Doingthethingcorrectly;refers totherelationship between

inputs andoutputs; seeks tominimizeresourcecosts

Effectiveness

x Doingtherightthings;goal attainment


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` Planning Includes defininggoals,establishing strategy,and

developing plans tocoordinateactivities

`

Organizing Includes determining whattasks

to bedone, whois todothem,

how thetasks areto be

grouped, whoreports to

whom,and wheredecisions areto bemade


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` Leading Includes motivatingemployees,directingtheactivities of

others, selectingthemosteffectivecommunication

channel,andresolvingconflicts

` Controlling The process ofmonitoring performance,

comparingit withgoals,and

correctingany significant

deviations


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Int rp r onalFigurehead

Leader

Liaison

InformationalMonitor

Disseminator

Spokesperson

Deci ional

EntrepreneurDisturbance handler

Resource allocator

Negotiator

Source: The Nature of Managerial Work(paperback) by H. Mintzberg. Table 2, pp. 9293.

Reprinted by permissionofPearson EducationInc.,UpperSaddleRiver,NJ.


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` Level intheOrganization Domanagers managedifferently basedon wherethey

areintheorganization?

`

Profitversus Not-for-profit Is managinginacommercial enterprisedifferentthan

managinginanon-commercial organization?

` SizeofOrganization Does the sizeofanorganizationaffecthow managers

functionintheorganization?


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Source:AdaptedfromT. A. Mahoney,T. H. Jerdee,andS. J. Carroll,

TheJob(s)ofM

anagement. Indus

trial Relati

ons4,no. 2 (1965), p. 103.


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Source:AdaptedfromJ. G. P. Paolillo, TheManagers Self-

Assessments ofManagerial Roles: Small vs. LargeFirms,

American JournalofSmall Business(JanuaryMarch 1984) pp. 6162.


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` ManagementConcepts andNational Borders Is managementthe sameinall economic,cultural, social

and political systems?

` MakingDecisions andDealing withChange

Domanagers all makedecisions anddeal withchangein

the same ways?


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Conce tual

Skills

Political

skills

Inter ersonal

skills

Technical

skills

SkillsofSuccessful

Managers


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1. Communicatehonestly andopenly with your

protg.

2. Encouragehonestandopencommunicationfrom

yourprotg.

3. Treattherelationship withthe protgas a

learningopportunity.

4. Takethetimetogettoknow yourprotg.


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` Behaviors relatedtoamanagers effectiveness:

Controllingtheorganizations environmentandits

resources.

Organizingandcoordinating.

Handlinginformation.

Providingforgrowthanddevelopment.

Motivatingemployees andhandlingconflicts.

Strategic problem solving.


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Manage entCompetencies

A clusterofknowledge, skills,andattitudes relatedto

effectivemanagerial

performance.


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` Weall haveavestedinterestinimprovingthe way

organizations aremanaged. Betterorganizations are,in part,theresultofgood

management.

` You will eventually eithermanageorbemanaged. Gaininganunderstandingofthemanagement process

provides thefoundationfordevelopingmanagement

skills andinsightintothe behaviorofindividuals andthe

organizations.


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Sociology

PsychologyPolitical Science

Economics Philosophy

Anthropology

Management


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THE HISTORICALROOTSOFCONTEMPORARY

MANAGEMENT PRACTICES

THE HISTORICALROOTSOFCONTEMPORARY

MANAGEMENT PRACTICES


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` 20 years

` 100,000 people

`

Began 221 BC` Over4,000 miles

` 300,000 people

Egyptian Pyramids

Great Wall of China

EarlyExamplesofManagementEarlyExamplesofManagement


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` Wrotethe WealthofNations (1776) Advocatedtheeconomicadvantages thatorganizations

and society wouldreap fromthedivisionof labor:

x Increased productivity by increasingeach workersskill anddexterity.

x Time savedthatis commonly lostinchangingtasks.

x Thecreationof labor-savinginventions and

machinery.


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` AdamSmith Observedthatfirms manufactured pins inoneoftwo

different ways:

x Craft-styleeach workerdidall steps.

x Productioneach workerspecializedinone step.

Realizedthat job specializationresultedinmuchhigher

efficiency and productivityx Breakingdownthetotal job allowedforthedivisionof labor

in which workers becamevery skilledattheirspecifictasks.


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Adam Smiths Adam Smiths Wealt f ati :Wealt f ati :

ivisionofLaborDivisionofLabor

10 people doing all tasks

10 people doing

specialized tasks

` 10 i er ay

` 48,000 i er ay


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` Industrial Revolution Machine powerbeganto substituteforhuman power

x Leadtomass productionofeconomical goods

Improvedand less costly transportation systemsbecameavailable

x Created largermarkets forgoods.

Largerorganizations developedto serve largermarkets

x Createdtheneedforformalizedmanagement practices.


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TheEvolutionofManagementTheoryTheEvolutionofManagementTheory


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DevelopmentofMajorDevelopmentofMajor

Managem

entTheo

riesManagem

entTheo

ries


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` Classical Approach Thetermusedtodescribethehypotheses ofthe

scientificmanagementtheorists andthegeneral

administrativetheorists.

x Scientificmanagementtheorists

x Fredrick W. Taylor,FrankandLillian Gilbreth,

and Henry Gantt

x General administrativetheorists

x HenriFayol andMax Weber


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` Frederick W. Taylor

The Principles ofScientificManagement (1911)

x Advocatedtheuseofthe scientificmethodtodefinethe one

best way fora job to bedone

Believedthatincreasedefficiency could beachieved by

selectingtheright peopleforthe job andtrainingthemto

doit precisely intheone best way.

Tomotivate workers,hefavoredincentive wage plans.

Separatedmanagerial workfromoperative work.


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1. Develop a scienceforeachelementofanindividualswork, whichreplaces theoldrule-ofthumb method.

2. Scientifically selectandthentrain,teach,anddevelop the

worker. (Previously, workers chosetheirown workand

trainedthemselves as bestthey could.)

3. Heartily cooperate withthe workers soas toensurethat

all workis doneinaccordance withthe principles ofthe

sciencethathas beendeveloped.

4. Divide workandresponsibility almostequally between

managementand workers.M

anagementtakes overallworkforwhichitis betterfittedthanthe workers.

(Previously,almostall the workandthegreaterpartofthe

responsibility werethrownuponthe workers.)


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` Frank and LillianGilbreth Bricklayingefficiency improvements

Timeandmotion studies (therbligs)

Usedmotion pictures to study handand body motion,

Reducednumberofmotions from 18 to 2 (interior),

Breakingup each job actionintoits components. Finding

betterways to performtheaction,Reorganizingeach job

actionto bemoreefficient.

`

Also studied worker-relatedfatigue problems caused bylighting,heating,andthedesignoftools andmachines.

` HenryGantt Incentivecompensation systems

Ganttchartforscheduling workoperations


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` General AdministrativeTheorists

Developedgeneral theories ofwhatmanagers doand

whatconstitutes goodmanagement practice

HenriFayol (France)x Fourteen Principles ofManagement: Fundamental or

universal principles ofmanagement practice

Max Weber(Germany)

x

Bureaucracy: Ideal typeoforganizationcharacterized bydivisionof labor,aclearly definedhierarchy,detailedrules

andregulations,andimpersonal relationships


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1. DivisionofWork

2. Authority

3. Discipline

4. UnityofCommand5. UnityofDirection

6. Subordinationof

Individual Intereststo

theGeneral Interest

7. Remuneration

8. Centralization

9. ScalarChain

10. Order

11. Equity12. StabilityofTenure

ofPersonnel

13. Initiative

14. EspritdeCorps


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` DivisionofLabor: allows for job specialization. Fayol noted jobs canhavetoomuch specialization

leadingto poorquality and workerdissatisfaction.

` Authorityand Responsibility Fayol included bothformal andinformal authority

resultingfrom special expertise.

` UnityofCommand Employees shouldhaveonly one boss.

` LineofAuthority A clearchainofcommandfromtop to bottomofthefirm.


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` Centralization Thedegreeto whichauthority rests atthetop ofthe

organization.

` UnityofDirection

A single planofactiontoguidetheorganization.` Equity

The provisionof justiceandthefairandimpartial

treatmentofall employees.

` Order Thearrangementofemployees wherethey will beofthe

mostvaluetotheorganizationandto providecareer

opportunities.


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` Initiative Thefosteringofcreativity andinnovation by encouraging

employees toactontheirown.

` Discipline Obedient,applied,respectful employees arenecessary

fortheorganizationtofunction.

` RemunerationofPersonnel Anequitableuniform payment systemthatmotivates

contributes toorganizational success.

` StabilityofTenureofPersonnel Long-termemploymentis importantforthedevelopment

ofskills thatimprovetheorganizations performance.


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` Subordinationof Individual Interesttothe

Common Interest Theinterestoftheorganizationtakes precedenceover

thatoftheindividual employee.

` Espritdecorps Comradeship, sharedenthusiasmfosterdevotiontothe

commoncause (organization).


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1. DivisionofLabor

2. AuthorityHierarchy

3. Formal Selection

4. Formal Rulesand Regulations

5. Impersonality

6. CareerOrientation


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Webers Ideal BureaucracyWebers Ideal Bureaucracy


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EarlyAdvocatesofOBEarlyAdvocatesofOB


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` RobertOwen Scottish businessmanandreformerwhoadvocatedfor

bettertreatmentofworkers.

Claimedthataconcernforemployees was profitablefor

managementand wouldrelievehumanmisery.

` HugoMunsterberg Createdthefieldofindustrial psychologythe scientific

study ofindividuals at worktomaximizetheirproductivity

andadjustment.x Psychology andIndustrial Efficiency (1913)


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` Mary ParkerFollett Recognizedthatorganizations could beviewedfromthe

perspectiveofindividual andgroup behavior.

Believedthatindividual potential couldonly bereleased

by group association.` ChesterBarnard

Saw organizations as social systems thatrequirehumaninteractionandcooperation.

Expressedhis views onthe acceptanceofauthority in

his bookTheFunctions ofthe Executive (1938).


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` A series ofstudies doneduringthe 1920s and

1930s that providednew insights intogroup norms

and behaviors Hawthorneeffect

x Social norms orstandards ofthegroup arethekey

determinants ofindividual work behavior.

` Changedthe prevalentview ofthetimethat

people werenodifferentthanmachines.


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TheHawthorne StudiesTheHawthorne Studies

Control Group ExperimentalGroup


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` Basedona beliefintheimportanceofemployee

satisfactiona satisfied workerwas believedto be

a productive worker.

`

Advocates believedin peoples capabilities andwereconcerned withmakingmanagement

practices morehumane. DaleCarnegie

AbrahamMaslow

Douglas McGregor


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Theory X andTheory YTheory X andTheory Y

` Douglas McGregorproposedthetwodifferentsets ofassumptions about workers. Theory X assumes theaverage workeris lazy,

dislikes workand will doas littleas possible.

x

Managers mustclosely superviseandcontrol throughrewardand punishment.

Theory Yassumes workers arenot lazy, wanttodoa

good job andthe job itselfwill determineifthe worker

likes the work.

x Managers shouldallow workers greaterlatitude,andcreateanorganizationto stimulatethe workers.


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` Operations Research (ManagementScience) Evolvedoutofthedevelopmentofmathematical and

statistical solutions tomilitary problems during World War

II.

Involves theuseofstatistics,optimizationmodels,informationmodels,andcomputersimulations toimprove

managementdecisionmakingforplanningandcontrol.


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` Classical Approach Thedesireforincreasedefficiency of laborintensive

operations

` HumanResources Approach The backlashtotheoverly mechanisticview of

employees held by theclassicists.

` The Quantitative Approaches

World WarIIarmament production


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` ManagementTheory Jungle (Harold Koontz) Thediversity ofapproaches tothe study of

managementfunctions,quantitativeemphasis,human

relations approacheseachoffersomethingto

managementtheory, butmany areonly managerial tools.

` Process Approach Planning, leading,andcontrollingactivities arecircular

andcontinuous functions ofmanagement.


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` Defines a systemas a setofinterrelatedand

interdependent parts arrangedinamannerthat

produces aunified whole

Closedsystem : a systemthatis notinfluenced by anddoes notinteract withits environment

Opensystem: a systemthatdynamically interacts with

its environment

Stakeholders: any group thatis affected byorganizational decisions and policies


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The Organizationasan OpenThe Organizationasan Open

SystemSystem


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Implicationsofthe SystemsImplicationsofthe Systems

ApproachApproach

` Coordinationoftheorganizations parts is

essential forproperfunctioningoftheentire

organization.

` Decisions andactions takeninoneareaof

the organization will haveaneffectinother

areas oftheorganization.

` Organizations arenot self-containedand,

therefore,mustadapttochanges intheir

external environment.


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Organization Size(coordination)

RoutinenessofTask Technology(taskcomplexity

dictates structure)

Environmental Uncertainty(changemanagement)

Individual Differences(managerial styles ,motivationaltechniques,and job design)


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TheContingencyApproachTheContingencyApproach

` Contingency ApproachDefined

Also sometimes calledthesituational approach.

Thereis nooneuniversally applicable setof

management principles (rules) by whichtomanageorganizations.

Organizations areindividually different,facedifferent

situations (contingency variables),andrequiredifferent

ways ofmanaging.


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CurrentTrendsand IssuesCurrentTrendsand Issues

` Globalization

` Ethics

` WorkforceDiversity

` Entrepreneurship

` E-business

` KnowledgeManagement

` LearningOrganizations

` Quality Management


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CurrentTrendsand Issues (contd)CurrentTrendsand Issues (contd)

` Globalization Managementininternational organizations

Political andcultural challenges ofoperatinginaglobal

market

` Ethics Increasedemphasis onethics educationincollege

curriculums

Increasedcreationanduseofcodes ofethics by

businesses


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AProcessforAddressingEthical DilemmasAProcessforAddressingEthical Dilemmas

Step 1: Whatis theethical dilemma?

Step 2: Whoaretheaffectedstakeholders?

Step 3: Whatpersonal, organizational,andexternal factorsareimportantto

my decision?

Step 4: Whatarepossiblealternatives?

Step 5: Makeadecisionandactonit.


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` WorkforceDiversity Increasingheterogeneity inthe workforce

x Moregender,minority,ethnic,andotherforms ofdiversity in

employees

Aging workforcex Olderemployees who work longeranddonotretire

x Theincreasedcosts ofpublicand private benefits forolder

workers

x Anincreasingdemandforproducts and services relatedto

aging.


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` Entrepreneurship Defined

The process whereby anindividual orgroup of

individuals useorganizedefforts tocreatevalueand

grow by fulfilling wants andneeds throughinnovation

anduniqueness.

` Entrepreneurship process

Pursuitofopportunities

Innovationin products, services,orbusiness methods

Desireforcontinual growthoftheorganization


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` E-Business (Electronic Business)

The work preformed by anorganizationusingelectronic

linkages toits key constituencies

E-commerce: the sales andmarketingcomponentofan

e-business

` Categories ofE-Businesses

E-business enhancedorganization

E-business enabledorganization

Total e-business organization


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CategoriesofECategoriesofE--Business InvolvementBusiness Involvement


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` KnowledgeManagement

Thecultivationofa learningculture whereorganizational

members systematically gatherand shareknowledge

withothers inordertoachieve betterperformance.

` LearningOrganization

Anorganizationthathas developedthecapacity to

continuously learn,adapt,andchange.


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Learning OrganizationversusTraditionalLearning OrganizationversusTraditional

OrganizationOrganization


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` Quality Management

A philosophy ofmanagementdriven by continual

improvementinthequality ofwork processes and

respondingtocustomerneeds andexpectations

Inspired by thetotal quality management (TQM)ideas ofDemingandJuran

Quality is notdirectly relatedtocost


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Whatis Management Quality?Whatis Management Quality?

Intensefocus onthecustomer

Concernforcontinual improvement

Process-focused

Improvementinthequalityof everything

Accurate measurement

Empowermentof employees

Intro to POM & Theory

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