MBA MCO101 Unit 1 Lecture 2 20080621
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Transcript of MBA MCO101 Unit 1 Lecture 2 20080621
MCO 101 • MANAGEMENTUnit 1: Management, Managers and evolution of Management theory
MANAGEMENT 2MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Managing Expectations
LEARNING OUTCOMES:
At the end of the course, students will be able to:
• Explain fundamental concepts and principles of management including the basic roles, skills, and functions of management
• Discuss the knowledgeable of historical development, theoretical aspects and practice application of managerial process
• Examine the environment, technology, human resources, and organizations in order to achieve high performance
• Discuss the ethical dilemmas faced by managers and the social responsibilities of businesses.
MANAGEMENT 3MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Managing Expectations
SUBJECTS DISCUSSED:
1. Management, Managers and evolution of Management theory
2. Personality traits and diversity3. Organisation, Globalisation and the resulting
environments4. Decision-making and Planning5. Structure and Strategy6. Executing and Controlling7. Human Resources Management as a function8. Motivation, Leadership, Groups and Teams9. Communication, conflicts and politics10. Operations Management. Entrepreneurship. Innovation
MANAGEMENT 4MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Managing Expectations
TOPIC DETAILS:
After going through UNIT 1, you should be able to:
1. Describe what management is. 2. Explain the four functions of management.3. Describe different kinds of managers. 4. Explain the major roles and sub roles that managers perform in
their jobs. 5. Explain what companies look for in managers.6. Discuss the top mistakes that managers make in their jobs.7. Describe the transition that employees go through when they
are promoted to management. Explain the origins of management
8. Explain the history of scientific management.9. Discuss the history of bureaucratic and administrative
management.10. Explain the history of human relations management.11. Discuss the history of operations, information systems, and
contingency management.
MANAGEMENT 5MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
What is Management?
Management is:
Effectiveness
EfficiencyGetting workGetting workdone throughdone through
othersothers
MANAGEMENT 6MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Management Function
PLANNING ORGANISING
CONTROLLINGLEADING
MANAGEMENT 7MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Planning
PLANNING
Determining organisational goals and a means for achieving them
MANAGEMENT 8MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Organising
ORGANISING
• Deciding where decisions will be made
• Who will do what jobs and tasks
• Who will work for whom
MANAGEMENT 9MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Leading
LEADING
Inspiring
Motivating
For Anne Mulcahy, CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers.
MANAGEMENT 10MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Controlling
CONTROLLING
Monitoring progress toward goal achievement and taking corrective action when needed
MANAGEMENT 11MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Controlling Process
Set standards toachieve goals
Compare actualperformance to
standards
Make changesto return
performance tostandards
MANAGEMENT 12MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Kinds of Managers
• Top Managers• Middle Managers• First-Line
Managers• Team Leaders
MANAGEMENT 13MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Kinds of Managers
MANAGEMENT 14MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Top Managers
• Chief Executive Officer (CEO)
• Chief Operating Officer (COO)
• Chief Financial Officer (CFO)
• Chief Information Officer (CIO)
Creating a context for change
Developing commitmentand ownership in employees
Creating a positive organisational culture through language and action
Monitoring their business environments
Generally responsible
for
MANAGEMENT 15MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Middle Managers
• Plant Manager• Regional Manager• Divisional Manager
Generally responsible
forCoordinate and link groups, departments, and divisions
Monitor and manage the performance of subunits and managers who report
to them
Implement changes or strategies generated by top managers
Plan and allocate resources to meet objectives
MANAGEMENT 16MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
First Line Managers
• Office Manager• Shift Supervisor• Department Manager
Generally responsible
for
Manage the performance of entry-level employees
Encourage, monitor, and reward the performance of workers
Teach entry-level employees how to do their jobs
Make detailed schedules and operating plans
MANAGEMENT 17MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Team Leaders
Team Leaders
Generally responsible
forFacilitate team performance
Facilitate internal team relationships
Manage external relations
MANAGEMENT 18MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Managerial Roles
Interpersonal
• Figurehead• Leader• Liaison
Informational
• Monitor• Disseminator• Spokesperso
n
Decisional
• Entrepreneur• Disturbance
Handler• Resource
Allocator• Negotiator
MANAGEMENT 19MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Interpersonal Role
Monitor: Managers scan their environment for information
Disseminator: Managers share information with others in their company
Spokesperson: Managers share information with others outside their departments or companies
MANAGEMENT 20MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Informational Role
Figurehead: Managers perform ceremonial duties
Leader: Managers motivate and encourage workers to accomplish objectives
Liaison: Managers deal with people outsidetheir units
MANAGEMENT 21MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Decisional Role
Entrepreneur: Managers adapt to incremental change
Disturbance Managers respond to problems thatHandler: demand immediate action
Resource Allocator: Managers decide who gets what
resources
Negotiator: Managers negotiate schedules, projects, goals, outcomes, resources, and raises
MANAGEMENT 22MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
What Companies Look for in Managers
Conceptual SkillsMotivation to
Manage
Technical Skills Human Skills
MANAGEMENT 23MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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What Companies Look for in Managers
Skills are more or less important at different levels of management:
MANAGEMENT 24MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Mistakes Managers Make
1. Insensitive to others
2. Cold, aloof, arrogant
3. Betrayal of trust
4. Overly ambitious
5. Specific performance problems with the business
6. Overmanaging: unable to delegate or build a team
7. Unable to staff effectively
8. Unable to think strategically
9. Unable to adapt to boss with different style
10. Overdependent on advocate or mentorAdapted from Exhibit 1.6 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983
MANAGEMENT 25MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Manager’s transition
Be the boss
Formal authority
Manage tasks
Job is not managing people
Initial expecta-tions were wrong
Fast pace
Heavy workload
Job is to beproblem-solverand troubleshooter
No longer “doer”
Communication,listening, positivereinforcement
Learning to adaptand control stress
Job is peopledevelopment
Managers’Initial Expectations
After Six MonthsAs a Manager
After a YearAs a Manager
MANAGEMENT 26MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Discussion
Discuss how and why companies can create competitive advantage through people?
MANAGEMENT 27MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
History of Management
TOPIC DETAILS:
After going through this part, you should be able to:
1. Explain the origins of management2. Explain the history of scientific management.3. Discuss the history of bureaucratic and administrative
management.4. Explain the history of human relations management.5. Discuss the history of operations, information systems,
and contingency management.
MANAGEMENT 28MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Management Ideas and Practice Throughout History
5000 BC
4000-2000 BC
1800 BC
600 BC
500 BC
400 BC
400 BC
175
284
900
1100
1418
1436
1500
1525
Sumerians
Egyptians
Hammurabi
Nebuchadnezzar
Sun Tzu
Xenophon
Cyrus
Cato
Diocletian
Alfarabi
Ghazali
Barbarigo
Venetians
Sir Thomas More
Machiavelli
Record keeping
Plan, organize, control. Written requests.
Controls and written documentation
Wage incentives, production control
Strategy
Management as a separate art
Human relations and motion study
Job descriptions
Delegation of authority
Listed leadership traits
Listed managerial traits
Different organizational forms/structures
Numbering, standardization, interchangeability
Critical of poor management and leadership
Cohesiveness, power, and leadership
MANAGEMENT 29MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Why we need managers today?
Work in families
Skilled labourers
Small, self-organisedgroups
Unique, small batchesof production
ThenThen
Work in factories
Specialised,unskilled labourers
Large factories
Large standardisedmass production
NowNow
MANAGEMENT 30MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Scientific Management
Scientific Management
Studies and tests methods to identifythe best, most efficient ways
“Seat-of-the Pants” Management
No standardisation of procedures
No follow-up on improvements
MANAGEMENT 31MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Frederick W. Taylor
Frederick Taylor is known today as the "father of scientific management." One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day.
Frederick W. Taylor, 1856-1915
MANAGEMENT 32MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Taylor’s Four Management Principles
Develop a science for each element of a man’s work,which replaces the old rule-of-thumb method.
Scientifically select and then train, teach, and develop the workman.
Cooperate with the men to insure all work is done inaccordance with the principles of the science.
There is almost equal division of the work and theresponsibility between management and workmen.
MANAGEMENT 33MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Frank & Lillian Gilbreth
Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter.
Time Study: Timing how long it takes good workers to complete each part of their jobs.
Motion Study: Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive.
MANAGEMENT 34MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Henry Gantt
MANAGEMENT 35MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Bureaucratic Management
Max Weber, 1864-1920
The exercise of control on the basis of knowledge, expertise, or experience, with the following aims:
1. Qualification-based hiring
2. Merit-based promotion
3. Chain of command
4. Division of labor
5. Impartial application of rules and procedures
6. Recorded in writing
7. Managers separate from owners
MANAGEMENT 36MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Administrative Management: Henri Fayol
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination ofindividual interests
7. Remuneration
8. Centralisation
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps
MANAGEMENT 37MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Human Relations Management
Efficiency alone is not enough to produce organisational success.
Success also depends on treating workers well.
MANAGEMENT 38MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Mary Parker Follett
Mary Parker Follett, 1868-1933
Mary Parker Follett is known today as the “mother of scientific management." Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing.
MANAGEMENT 39MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Constructive Conflict and Coordination: Mary Parker Follett
Dealing withDealing withConflictConflict Compromise
Domination
Integration
MANAGEMENT 40MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Constructive Conflict and Coordination: Mary Parker Follett
1. Coordination as reciprocal relating all the factors in a situation
2. Coordination by direct contact of the responsible people concerned
3. Coordination in the early stages
4. Coordination as a continuing process
Fundamental Principals of Organisations
MANAGEMENT 41MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Hawthorne Studies: Elton Mayo
• Workers’ feelings and attitudes affected their work
• Financial incentives weren’t the most important motivator for workers
• Group norms and behaviour play a critical role in behaviour at work
MANAGEMENT 42MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Cooperation and Acceptance of Authority: Chester Barnard
Managers can gain cooperation by:
1. Securing essential services from individuals
2. Unifying people by clearly formulating an organisation’s purpose and objectives
3. Providing a system of effective communication
People will be indifferent to managerial directives if they…
1. are understood2. are consistent with the
purpose of the organisation3. are compatible with the
people’s personal interests4. can actually be carried out
by those people
MANAGEMENT 43MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Operations, Information, Systems, and Contingency Management
Information Management
Operations Management
Contingency Management
Systems Management
MANAGEMENT 44MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Origin of Operations Management
Quality control
Forecasting techniques
Capacity planning
Productivity measurement and improvement
Linear programming
Scheduling systems
Inventory systems
Work measurement techniques
Project management
Cost-benefit analysis
MANAGEMENT 45MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Whitney, Monge, and Olds
Eli Whitney, 1765-1825
Gaspard Monge, 1746-1818
Ransom Olds, 1864-1950
MANAGEMENT 46MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Information Management
Milestones in information management:
1400s Horses in Italy1500-1700 Creation of paper and the printing press1850 Manual typewriter1860s Vertical file cabinets and the telegraph1879 Cash registers 1880s Telephone1890s Time clocks1980s Personal computer1990s Internet
MANAGEMENT 47MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Systems Management
MANAGEMENT 48MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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Contingency Management
Contingency Approach
Holds that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.
Management is harder than it looks Managers need to look for key contingencies that differentiate
today’s situation from yesterday’s situation Managers need to spend more time analyzing problems
before taking action Pay attention to qualifying phrases, such as “usually”