Copyright © 2005 Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie...

Copyright © 2005 Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook.

Chapter OneChapter One

Understanding the Manager’s Job

Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 1–2

Chapter OutlineChapter OutlineChapter OutlineChapter Outline

• An Introduction to Management–Kinds of Managers–Basic Management Functions–Fundamental Management Skills–The Science and the Art of Management

• The Evolution of Management–The Importance of History and Theory–The Historical Context of Management–The Classical Management Perspective


Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)

• The Evolution of Management (cont’d)–The Behavioral Management Perspective–The Quantitative Management Perspective

• Contemporary Management Thought–The Systems Perspective–The Contingency Perspective–Contemporary Management Challenges and

Opportunities


Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

• After 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 managers and explain the evolution of management thought.

–Discuss contemporary management issues and challenges.


What is Management?What is Management?What is Management?What is Management?

A set of activitiesplanning and decision making, organizing, leading, and controlling

directed at an organization’s resources human, financial, physical, and information

with the aim of achieving organizational goalsin an efficient and effectivemanner.


Basic Purpose of ManagementBasic Purpose of ManagementBasic Purpose of ManagementBasic Purpose of Management

EFFICIENTLYUsing resources wisely and

in a cost-effective way

EFFECTIVELYMaking the right decisions and

successfully implementing them

AndAnd


What is a Manager?What is a Manager?What is a Manager?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.


Figure 1.1 Figure 1.1 Kinds of Managers by Level and AreaKinds of Managers by Level and Area

Figure 1.1 Figure 1.1 Kinds of Managers by Level and AreaKinds of Managers by Level and Area


Kinds of Managers by LevelKinds of Managers by LevelKinds of Managers by LevelKinds 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.


Kinds of Managers by AreaKinds of Managers by AreaKinds of Managers by AreaKinds 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.


Kinds of Managers by Area (cont’d)Kinds of Managers by Area (cont’d)Kinds of Managers by Area (cont’d)Kinds of Managers by Area (cont’d)

• Human Resource Managers–Involved in human resource processes

• 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.

• Other Kinds of Managers–Assigned as specialists in positions directly related to

the needs of the organization.


Management in OrganizationsManagement in OrganizationsManagement in OrganizationsManagement in Organizations

Inputs from the environment• Human resources• Financial resources• Physical resources• Information resources

Planningand decision

making

Leading

Organizing

Controlling

Goals attained• Efficiently• Effectively


Figure 1.2Figure 1.2The Management ProcessThe Management Process

Figure 1.2Figure 1.2The Management ProcessThe Management Process


The Management Process (cont’d)The Management Process (cont’d)The Management Process (cont’d)The Management Process (cont’d)

• Planning and Decision Making–Setting an organization’s goals and selecting a course

of action from a set of alternatives 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.


Skills and the Skills and the ManagerManager

Skills and the Skills and the ManagerManager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills


Fundamental Management SkillsFundamental Management SkillsFundamental Management SkillsFundamental 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.

• Diagnostic–The manager’s ability to visualize the most appropriate

response to a situation.


Fundamental Management Skills (cont’d)Fundamental Management Skills (cont’d)Fundamental Management Skills (cont’d)Fundamental Management Skills (cont’d)

• 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.


Management: Science or Art?Management: Science or Art?Management: Science or Art?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.


Sources of Management SkillsSources of Management SkillsSources of Management SkillsSources of Management Skills


The Importance of Theory and HistoryThe Importance of Theory and HistoryThe Importance of Theory and HistoryThe Importance of Theory and History

• Why Theory?–Provides 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 historical

developments in management are important.• Furthers the development of management practices.• Avoiding the mistakes of others in the past.


Early Management PioneersEarly Management PioneersEarly Management PioneersEarly 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.


Classical Management PerspectiveClassical Management PerspectiveClassical Management PerspectiveClassical 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.


Scientific ManagementScientific ManagementScientific ManagementScientific 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.


Figure 1.3Figure 1.3Steps in Scientific ManagementSteps in Scientific Management

Figure 1.3Figure 1.3Steps in Scientific ManagementSteps in Scientific Management


Scientific Management PioneersScientific Management PioneersScientific Management PioneersScientific Management Pioneers

• Frank and Lillian Gilbreth–Both 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.


Classical Management Perspective (cont’d)Classical Management Perspective (cont’d)Classical Management Perspective (cont’d)Classical Management Perspective (cont’d)

• 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.


Classical Management Perspective…TodayClassical Management Perspective…TodayClassical Management Perspective…TodayClassical Management Perspective…Today

• Contributions–Laid the foundation for

later developments.–Identified important

management processes, functions, and skills.

–Focused attention on management as a valid subject of scientific inquiry.

• Limitations–More 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.


Behavioral Management PerspectiveBehavioral Management PerspectiveBehavioral Management PerspectiveBehavioral Management Perspective

• Behavioral Management–Emphasized individual attitudes and behaviors, and

group processes, and recognized the importance of behavioral processes in the workplace.

–Hugo Munsterberg (1863–1916)• A German psychologist, “the father of industrial psychology”,

who advocated 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.


Key Managerial Roles (Munsterberg)Key Managerial Roles (Munsterberg)Key Managerial Roles (Munsterberg)Key Managerial Roles (Munsterberg)

Key Management Key Management RolesRoles

Key Management Key Management RolesRoles

Interpersonal Interpersonal RolesRoles

Interpersonal Interpersonal RolesRoles

DecisionalDecisionalRolesRoles

DecisionalDecisionalRolesRoles

Informational Informational RolesRoles

Informational Informational RolesRoles

1.1. FigureheadFigurehead2.2. LeaderLeader3.3. LiaisonLiaison

1.1. FigureheadFigurehead2.2. LeaderLeader3.3. LiaisonLiaison

1.1. MonitorMonitor2.2. DisseminatorDisseminator3.3. SpokespersonSpokesperson

1.1. MonitorMonitor2.2. DisseminatorDisseminator3.3. SpokespersonSpokesperson

1.1. EntrepreneurEntrepreneur2.2. Disturbance Disturbance

handlerhandler3.3. NegotiatorNegotiator

1.1. EntrepreneurEntrepreneur2.2. Disturbance Disturbance

handlerhandler3.3. NegotiatorNegotiator

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


The Hawthorne Studies (1927–1932)The Hawthorne Studies (1927–1932)The Hawthorne Studies (1927–1932)The Hawthorne Studies (1927–1932)

• Conducted by Elton Mayo and associates at Western Electric–Illumination study—workplace lighting adjustments

affected both the control and the experimental groups of production employees.

–Group study—implementation 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 program—confirmed the importance of human behavior in the workplace.


Behavioral Management PerspectiveBehavioral Management Perspective(cont’d)(cont’d)

Behavioral Management PerspectiveBehavioral Management Perspective(cont’d)(cont’d)

• Human Relations Movement–Grew 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 manager’s concern for workers would lead to increased worker satisfaction and improved worker performance.


Behavioral Management Perspective Behavioral Management Perspective (cont’d)(cont’d)

Behavioral Management Perspective Behavioral Management Perspective (cont’d)(cont’d)

• Abraham Maslow (1908-1970)–Advanced a theory that employees are motivated by a

hierarchy of needs that they seek to satisfy.

• Douglas McGregor (1906-1964)–Proposed Theory X and Theory Y concepts

of managerial beliefs about people and work.


Table 1.1Table 1.1Theory X and Theory YTheory X and Theory Y

Table 1.1Table 1.1Theory X and Theory YTheory X and Theory Y

• Theory X Assumptions

–People 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.

Source: Douglas McGregor, The Human Side of Enterprise, Copyright © 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.


Table 1.1 (cont’d)Table 1.1 (cont’d)Theory X and Theory Y (cont’d)Theory X and Theory Y (cont’d)

Table 1.1 (cont’d)Table 1.1 (cont’d)Theory X and Theory Y (cont’d)Theory X and Theory Y (cont’d)

• Theory Y Assumptions– People 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 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.

Source: Douglas McGregor, The Human Side of Enterprise, Copyright © 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.


Organizational BehaviorOrganizational Behavior Organizational BehaviorOrganizational 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


Behavioral Management Perspective…Behavioral Management Perspective…TodayToday

Behavioral Management Perspective…Behavioral Management Perspective…TodayToday

• Contributions–Provided 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.


Behavioral Management Perspective…Behavioral Management Perspective…Today (cont’d)Today (cont’d)

Behavioral Management Perspective…Behavioral Management Perspective…Today (cont’d)Today (cont’d)

• Limitations–Complexity 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.


Quantitative Management Perspective Quantitative Management Perspective Quantitative Management Perspective 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.


Quantitative Management Perspective Quantitative Management Perspective (cont’d) (cont’d)

Quantitative Management Perspective Quantitative Management Perspective (cont’d) (cont’d)

• 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.


Quantitative Management Perspective…Quantitative Management Perspective…TodayToday

Quantitative Management Perspective…Quantitative Management Perspective…TodayToday

• 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.


Quantitative Management Perspective…Quantitative Management Perspective…Today (cont’d)Today (cont’d)

Quantitative Management Perspective…Quantitative Management Perspective…Today (cont’d)Today (cont’d)

• 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.


Figure 1.4Figure 1.4The Systems Perspective of OrganizationsThe Systems Perspective of Organizations

Figure 1.4Figure 1.4The Systems Perspective of OrganizationsThe Systems Perspective of Organizations


Integrating Perspectives for ManagersIntegrating Perspectives for ManagersIntegrating Perspectives for ManagersIntegrating Perspectives for Managers

• Systems Perspective–A system is an interrelated set of elements functioning

as a whole.

• Open system–An organizational system that interacts with its

environment.


Integrating Perspectives for Managers Integrating Perspectives for Managers (cont’d)(cont’d)

Integrating Perspectives for Managers Integrating Perspectives for Managers (cont’d)(cont’d)

• 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.


The Systems PerspectiveThe Systems PerspectiveThe Systems PerspectiveThe Systems Perspective

• Synergy–Subsystems 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.


The Systems PerspectiveThe Systems Perspective(cont’d)(cont’d)

The Systems PerspectiveThe Systems Perspective(cont’d)(cont’d)

• Entropy–A normal process in which an organizational system

declines due to failing to adjust to change in its environment

–Entropy can be avoided and the organization re-energized through organizational change and renewal.


The Contingency PerspectiveThe Contingency PerspectiveThe Contingency PerspectiveThe 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.


The Contingency Perspective (cont’d)The Contingency Perspective (cont’d)The Contingency Perspective (cont’d)The Contingency Perspective (cont’d)

Problem or SituationProblem or SituationProblem or SituationProblem or Situation

Solution or Solution or Action BAction B

Solution or Solution or Action BAction B

Solution or Solution or Action AAction A

Solution or Solution or Action AAction A

Solution or Solution or Action CAction C

Solution or Solution or Action CAction C

Important Important ContingenciesContingencies

Important Important ContingenciesContingencies

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


Contemporary Management IssuesContemporary Management Issues and Challenges and Challenges

Contemporary Management IssuesContemporary Management Issues and Challenges and Challenges

• Acute labor shortages in high-technology job sectors and an oversupply of less skilled labor

• An increasingly diverse and globalized workforce

• The need to create challenging, motivating, and flexible work environments

• The effects of information technology on how people work

• The complex array of new ways of structuring organizations


Contemporary Management IssuesContemporary Management Issues and Challenges (cont’d) and Challenges (cont’d)

Contemporary Management IssuesContemporary Management Issues and Challenges (cont’d) and Challenges (cont’d)

• Increasing globalization of product and service markets

• The renewed importance of ethics and social responsibility

• The use of quality as the basis for competition• The shift to a predominately service-based

economy

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