What is Management? Mr. Sherpinsky Business Management Class Council Rock School District.
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Transcript of What is Management? Mr. Sherpinsky Business Management Class Council Rock School District.
Learning Outcomes
1. Define management2. Identify and explain the
levels of management3. Explain the management
process4. Understand the different
perspectives of scientific management and the human relations movement
Group Activity
Groups of 4• Discuss:
– 5 Conceptual Skills used over the last week
– 5 Technical Skills used over the last week
– 5 Human Relations Skills used over the last week
• Elect a spokesperson
The World of Work
• Taco Barn, Inc.• Tony Davis• Promotions
Questions:1-Do you think Tony is ready for this promotion?2-The team at Tony’s location is performing well. Is there anything else that he needs to change?3- What skills do you think Tony will need to succeed in his new role? (Page 6)4- What should Tony do in his first week as manager?
The Business World Today
• Constant change!– Technology– Society– Environment– Competition– Diversity
What is Management?
• Management: The process of deciding how best to use a business’s resources to produce good or provide services…
• Organization’s Resources:
–Employees–Equipment–Money
What is Management?
• Managers must:– Make good decisions– Communicate well– Assign work (delegate)– Plan– Train and motivate people– Appraise employee job performance
Levels of Management
• Senior management– Establishes the goal/objectives of
the business– Decides how to use the company’s
resources– Not involved in the day-to-day
problems– Set the direction the company will
follow– Board of Directors, CEO, COO,
senior vice presidents
Levels of Management
• Middle management– Responsible for meeting the goals that
senior management sets– Sets goals for specific areas of the
business– Decides which employees in each area
must do to meet goals– Department heads, district sales
managers
Levels of Management
• Supervisory management– Make sure the day-to-day
operations of the business run smoothly
– Responsible for the people who physically produce the company's products or services
– Forepersons, crew leaders, store managers
– Also called “Line” managers
The Management Process
• 3 ways to examine how management works:– Tasks performed
• Planning, organizing, staffing, leading, controlling
– Roles played • Set of behaviors associated with a particular
job• Interpersonal, information-based, decision-
making– Skills needed
• Conceptual, human relations, technical
The Management Process
• Planning– Decides company
goals and the actions to meet them• CEO sets a goal of
increasing sales by 10% in the next year by developing a new software program
The Management Process
• Organizing– Groups related
activities together and assigns employees to perform them• A manager sets up a
team of employees to restock an aisle in a supermarket
The Management Process
• Staffing– Decides how many and
what kind of people a business needs to meet its goals and then recruits, selects, and trains the right people• A restaurant manager
interviews and trains servers
The Management Process
• Leading– Provides
guidance employees need to perform their tasks
– Keeping the lines of communication open• Holding regular staff
meetings– One of the most
important tasks of supervisory or line managers
The Management Process
• Controlling– Measures how the
business performs to ensure that financial goals are being met• Analyzing accounting
records• Make changes if financial
standards not being met– One of the most
important tasks of supervisory or line managers
Management Roles
• Managers have authority within organizations– Managers take on different roles to best
use their authority• Interpersonal roles• Information-related roles• Decision-making roles
Mintzberg’s Management Roles
• Interpersonal roles– A manager’s relationships
with people• Figurehead: Performs
symbolic duties• Leader: Establishes work
atmosphere and motivates subordinates
• Liaison: Develops and maintains webs of contacts outside of the organization
Mintzberg’s Management Roles
• Informational-related roles– Provide knowledge,
news or advice to employees• Monitor: Collect all types
of information relevant and useful to organization
• Disseminator: Gives other people the information they need to make decisions
• Spokesperson: Transmits information to the outside world
Mintzberg’s Management Roles
• Decisional-making roles– Makes changes in policies, resolves
conflicts, decides how to best use resources• Entrepreneur: Initiates controlled
change in the organization to adapt to changing environment
• Disturbance Handler: Deal with the unexpected changes
• Resource Allocator: Makes decisions on the use of organizational resources
• Negotiator: Deals with other organizations and individuals
Mintzberg’s Findings
• Mintzberg found that most managers are often placed into situations beyond their control such as:– Constant interruptions– Jumping from subject
to subject– Problem to Problem
• Rarely giving undivided or uninterrupted attention to anything for any length of time
Challenge
• Mintzberg identified one of the biggest challenges of management as the necessity to be in the moment, rather than focusing on long-term plans.
• Challenge: How do you see this in your own life? – Business Connection: How can we
as managers get better at balancing challenges? (Identify 3 ways to do so)
Management Skills
• All levels of management require a combination of conceptual, human relations, and technical skills– Conceptual skills most
important at senior management level
– Technical skills most important at lower levels
– Human relations skills important at all levels
Conceptual, Human Relations, and Technical Skills
Conceptual Skills
Human Relation Skills • Need to work well
together
• Resolving conflicts
• Forming partnerships
Technical Skills • Abilities used to perform their job
• Training people to use a new system
• Decision making planning, and organizing
• Understanding how different businesses relate
Management Skills
• Conceptual skills– Skills that help managers understand how
different parts of a business relate to one another and to the business as a whole• Decision making, planning, and organizing
Management Skills
• Human relations skills– Skills managers need to understand and work
well with people• Interviewing job applicants, forming
partnerships with other businesses, resolving conflicts
Management Skills
• Technical skills– The specific abilities that people use to perform
their jobs• Operating various software applications• Overseeing things like: designing a brochure,
training people to use a new budgeting system
History of Management
• Knowledge is Power!– Where you’re going, where
you’ve been!– Management is relatively a
modern concept…
The Industrial Revolution
• Began in the United States in 1860– Just before the Civil War
• Period during which a country develops an industrial economy
– Before the Industrial Revolution, economy based on agriculture
– By the late 1800s, economy depended on industries such as oil, steel, railroads, and manufactured goods
Causes of the Industrial Revolution
• Many people left their farms to work in factories– Professional managers supervised their
work• Changes in technology,
communication, and transportation– Telegraph and cable lines extended across
the U.S. after the Civil War– Railroad lines, canals, roads, steamships
Captains of Industry
• Powerful businesspeople who created enormous business empires dominated and shaped the U.S. economy
John D. Rockefeller (Oil)James B. Duke (tobacco)
Andrew Carnegie (steel)J. P. Morgan (banking)Cornelius Vanderbilt
(steamships & railroads)
Creation of Monopolies
• The captains of industry often pursued profit and self-interest above all else– Drove competitors out of business– Created giant companies that maintained
monopolies in their industries• Monopoly
– Occurs when one party maintains total control over a type of industry
– Trust: giant industrial monopoly– By 1879, Rockefeller controlled >90% of
the country’s refining capacity and pipelines
The Break-Up of Trusts
• People became worried about the concentration of wealth in the hands of a only a few
• In response, the government began regulating business
Cornelius Vanderbilt
The Break-Up of Trusts
• The Interstate Commerce Act, 1887– The railroads gave rebates to some
customers but not others– This act forced railroads to publish
their rates and forbade them to change rates without notifying the public
– Established the Interstate Commerce Commission (ICC) to supervise the railroads
The Break-Up of Trusts
• The Sherman Act, 1890– Made it illegal for companies to
create monopolies– Intended to restore competition– Example
• Standard Oil Company was broken into smaller companies so that other oil companies could compete with the former giant
• John D. Rockefeller
New Challenges for Management
• When most Americans worked on farms, sophisticated management techniques were not necessary– By the end of the 19th century,
giant companies employed thousands of people and distributed products all over the country
• Workers performed tasks that needed to be coordinated
• These changes demanded new ideas about how to manage people working in large corporations
Frederick W. Taylor and Scientific Management
• Father of Scientific Management• Wanted to find ways to motivate
workers to work harder• To increase efficiency, he tried to
figure “one best way” to perform a particular task– Used a stopwatch to determine
which work method was most efficient
– These time and motion studies lead to scientific management principles
Frederick W. Taylor and Scientific Management
• Scientific management seeks to increase productivity and make work easier by carefully studying work procedures and determining the best methods for performing particular tasks
Frederick W. Taylor and Scientific Management
Henry Ford followed Taylor’s work• Created the assembly line
– Mass production lowered costs– Could price car low enough to attract more
customers– Every part was counted, production was timed– Paid a daily wage of $5 when the average was
$2.50• This allowed workers to become customers
– Low morale & injuries resulted• Repetition caused boredom• High turnover
Frederick W. Taylor and Scientific Management
• Companies today continue to use the principles of scientific management– Marriott Corporation
• Customer satisfaction
The Hawthorne Studies of Productivity
• In the roaring 20s--Researchers began to look at the relationship between working conditions and productivity
• Series of experiments at the Hawthorne plant of Western Electric in Cicero, IL– Lowered the lighting and expected to see
productivity to fall– What happened?– Productivity increased…Why?
The Hawthorne Studies of Productivity
• Baffled by results, a team of psychologists from Harvard University were called upon
• Over five years, hundreds of experiments were conducted at the plant– Different wage payments– Rest periods– Work hours– Other variables
• What were the results?• Same: Productivity increased!!
The Hawthorne Studies of Productivity
• Researchers concluded that productivity rose because workers worked harder when they received attention
• Hawthorne effect– Change of any kind increases
productivity• Factors other than the
physical environment affected worker productivity– Psychological and social
conditions, effective supervision
The Hawthorne Studies of Productivity
• Informal group pressures– Teaming tends to drive everyone
not to let the others on the team down….
• Individual recognition– Highlighting a worker contribution
tends to motivate them to work harder
• Participation in decision-making– When workers are part of the
process they work harder
Abraham H. Maslow and the Hierarchy of Needs
• According to Maslow– All people have five basic types of
needs– People fulfill lower-level needs
before seeking to fulfill higher-level needs• One set of needs must be met before
another is sought• “Hierarchy of needs” is his grouping
and ordering of physical, security, social, status, and self-actualization needs
Applying Maslow’s Theory • At the lowest level,
workers are motivated by basic needs– Wages or salary, physical
conditions
• Safety or security needs– Providing insurance,
retirement benefits, job security
– Safe from physical, psychological, or financial harm
Applying Maslow’s Theory • At the lowest level,
workers are motivated by basic needs– Wages or salary, physical
conditions
• Safety or security needs– Providing insurance,
retirement benefits, job security
– Safe from physical, psychological, or financial harm
Applying Maslow’s Theory • Social needs
– Provide a work environment in which colleagues interact• Company lunch rooms,
company retreats
• Status needs– Provide workers with signs of
recognition that are visible to others• Job titles, private offices,
designated parking spaces, awards, promotions
Applying Maslow’s Theory • Social needs
– Provide a work environment in which colleagues interact• Company lunch rooms,
company retreats
• Status needs– Provide workers with
signs of recognition that are visible to others• Job titles, private offices,
designated parking spaces, awards, promotions
Applying Maslow’s Theory to Management
• Self-fulfillment needs– Provide employees
with opportunities to be creative at work• Include employees in
decision making
• Example– ITT’s Ring of Quality
Control: Gave awards to employees for ideas
WEB QUEST
MASLOW”S HEIRARCHY• Individual Activity: PowerPoint• Directions: Demonstrate an
understanding of Maslow’s Theory.– Select products available to the general public,
then produce a PowerPoint using images from advertisement campaigns for that specific product that capitalize on the various level of Maslow’s Theory.
Professional Management
• The professional manager (started in the 1930’s)– Defined: Career person
who does not necessarily have controlling interest in the business
The Systems Approach
• An attempt to manage all the different schools of management into an integrated approach– Defined: A system is a set of connected
elements that function as a whole.– The systems’ approach was viewed as a “way of
thinking about the job of managing.”– Two Types:
• Open System: interacts with its external environment• Closed System: No interaction with its external
environment
Theory X & Theory Y Inventory
What is your belief about workers?
–Take the quick inventory and find out!
TEAM WORK: Critical Thinking
ADVANTAGES DISADVANTAGES
What are the Advantages and Disadvantages of working in Teams?
Group Activity:Name 4 for both!
Be Ready to Share!
Empowering Employees
• As organizations grew in size and complexity, new styles and methods of management began to emerge
• Different philosophies developed on how best to manage employees
Douglas McGregor• McGregor is the
other major theorist associated with the Human Relations school of management.
• McGregor believes there are two basic kinds of managers.
Theory X
• Assumes that people are basically lazy and will avoid working if they can
• Managers impose strict rules and make sure that all important decision are make only by them
Theory Y• Assumes that people
find satisfaction in their work
• Managers believe that people will work productively if put in the right environment
• People are creative & will come up with good ideas if encouraged to do so
• Employees given more freedom and allowed to make mistakes
Theory Z
• William Ouchi, management researcher
• Integrates Japanese and American business practices• Japanese emphasis on collective
decision making and concern for employees
• American emphasis on individual responsibility
• Johnsonville Foods
Johnsonville Foods
• Johnsonville Foods, located in Sheboygan Wisconsin• Teams of empowered workers
• Buy equipment• Write budgets• Train one another• Cut their hours when necessary• Even hire and fire one another
• Called “self-managing” or “autonomous teams”…It is NOT crazy!• Goal: Teach people to do for themselves
• Results: Get far better performance• Sales increased by 20%• Productivity increased by 50%• Rejects dropped from 5% to less than ½ of 1%
Theory X & Theory Y Inventory
What is your belief about workers? Using MS Word…
• After taking an inventory and finding out your viewpoint with regard to Theory X and Theory Y, now you can answer these questions:
A. What does your profile mean for the type of leader you will be?
B. What are the implications of being driven by Theory X beliefs? (For the employer, employee & manager)
C. What are the implications of being driven by Theory Y beliefs? (For the employer, employee & manager)
Centralization vs. Decentralization
• Centralization• The concentration
of power among a few key decision makers
• Decentralization• Process by which
decisions are made by managers at various levels within an organization
Women and Minoritiesin Management
• In the last four decades, the number of women and minorities have joined the workforce has tripled– Commonplace to hold positions at all levels of
management in companies of all sizes
• Women and minorities serve as the CEOs of prestigious businesses– PepsiCo, Kraft, Archer Daniels, Avon, Harpo,
eBay, Lucent, Dupont, IBM, XEROX, Yahoo
Women and Minoritiesin Management
• Caucasian males still hold most senior management positions
• Glass ceiling: the invisible barrier that prevents women and minorities from moving up in the world of business– Steadily becoming a
window of opportunity!– Global Influences
Attracting Working Mothers
• What does the demographic need in workplace?
• Daycare– Can cost $500-
$1000 per child per week
• Flexible Schedules
• Tele-commuting
Women and Minoritiesin Management
• Workers and managers must be sensitive to challenges presented by a multicultural workplace– Religious holidays that
are celebrated at different times throughout the year by Muslims, Christians, Jews and other religious groups