Robbins Ch.01&02

CHAPTER-1Introduction to Management

Course: Principles of Management:FIN-6103

Instructor: Sonia Munmun

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1–2

Learning OutcomesLearning OutcomesFollow this Learning Outline as you read and study Follow this Learning Outline as you read and study this chapter.this chapter.

1.1 Who Are Managers?1.2 What Is Management?1.3 What Do Managers Do?1.4 What Is An Organization?1.5 Why Study Management?


Who Are Managers?Who Are Managers?ManagerManagerSomeone who coordinates and oversees the work of other Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished. people so that organizational goals can be accomplished.


Classifying ManagersClassifying ManagersFirst-line ManagersFirst-line ManagersIndividuals who manage the work of non-managerial Individuals who manage the work of non-managerial employees.employees.

Middle ManagersMiddle ManagersIndividuals who manage the work of first-line managers.Individuals who manage the work of first-line managers.

Top ManagersTop ManagersIndividuals who are responsible for making organization-Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect wide decisions and establishing plans and goals that affect the entire organization.the entire organization.


Exhibit 1–2Exhibit 1–2 Managerial LevelsManagerial Levels


What Is Management?What Is Management?

Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively.


What Is Management?What Is Management?• Managerial ConcernsManagerial Concerns

EfficiencyEfficiency ““Doing things right”Doing things right”

– Getting the most output Getting the most output for the least inputsfor the least inputs

EffectivenessEffectiveness ““Doing the right things”Doing the right things”

– Attaining organizational Attaining organizational goalsgoals


What Managers Do?What Managers Do?Three Approaches to Defining What Managers Three Approaches to Defining What Managers Do.Do.Functions they perform.Functions they perform.Roles they play.Roles they play.Skills they need.Skills they need.


What Managers Do?What Managers Do?Functions Manager’s PerformFunctions Manager’s PerformPlanningPlanning

• Defining goals, establishing strategies to achieve goals, Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.developing plans to integrate and coordinate activities.

OrganizingOrganizing• Arranging and structuring work to accomplish organizational Arranging and structuring work to accomplish organizational

goals.goals.

LeadingLeading• Working with and through people to accomplish goals.Working with and through people to accomplish goals.

ControllingControlling• Monitoring, comparing, and correcting work.Monitoring, comparing, and correcting work.


Exhibit 1–4Exhibit 1–4 Management FunctionsManagement Functions


What Managers Do?What Managers Do?

Roles Manager’s PlayRoles Manager’s PlayRoles are specific actions or behaviors expected of a manager.Mintzberg identified 10 roles grouped around interpersonal relationships, the transfer of information, and decision making.


What Managers Do? What Managers Do?

Management Roles Management Roles (Mintzberg)(Mintzberg)Interpersonal rolesInterpersonal roles

• Figurehead, leader, liaisonFigurehead, leader, liaison

Informational rolesInformational roles• Monitor, disseminator, Monitor, disseminator,

spokespersonspokesperson

Decisional rolesDecisional roles• Entrepreneur, disturbance Entrepreneur, disturbance

handler, resource allocator, handler, resource allocator, negotiatornegotiator


What Managers Do (Mintzberg)What Managers Do (Mintzberg)

ActionsActionsthoughtful thinkingthoughtful thinkingpractical doingpractical doing


Interpersonal Roles• Figurehead• Leader• Liaison

Informational Roles• Monitor• Disseminator• Spokesperson

Decisional Roles• Entrepreneur• Disturbance handler• Resource allocator• Negotiator

Exhibit 1.5 Mintzberg’s Managerial Roles

Adapted from Mintzberg, Henry,The Nature of Managerial Work,1st Edition, © 1980, pp. 93–94..


What Managers Do? What Managers Do?

Skills Managers Need Skills Managers Need Technical skillsTechnical skills

• Knowledge and proficiency in a specific fieldKnowledge and proficiency in a specific field

Human skillsHuman skills• The ability to work well with other peopleThe ability to work well with other people

Conceptual skillsConceptual skills• The ability to think and conceptualize about abstract and The ability to think and conceptualize about abstract and

complex situations concerning the organizationcomplex situations concerning the organization


Exhibit 1–6 Skills Needed at Different Exhibit 1–6 Skills Needed at Different Management Levels Management Levels


What Is An Organization?What Is An Organization?An Organization DefinedAn Organization DefinedA deliberate arrangement of people to accomplish some A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not specific purpose (that individuals independently could not accomplish alone).accomplish alone).

Common Characteristics of OrganizationsCommon Characteristics of OrganizationsHave a distinct purpose (goal)Have a distinct purpose (goal)Composed of peopleComposed of peopleHave a deliberate structureHave a deliberate structure


Exhibit 1–9 Characteristics of OrganizationsExhibit 1–9 Characteristics of Organizations


Why Study Management?Why Study Management?The Value of Studying ManagementThe Value of Studying ManagementThe universality of managementThe universality of management

• Good management is needed in all organizations.Good management is needed in all organizations.

The reality of workThe reality of work• Employees either manage or are managed.Employees either manage or are managed.

Rewards and challenges of being a managerRewards and challenges of being a manager• Management offers challenging, exciting and creative Management offers challenging, exciting and creative

opportunities for meaningful and fulfilling work.opportunities for meaningful and fulfilling work.

• Successful managers receive significant monetary rewards Successful managers receive significant monetary rewards for their efforts.for their efforts.


Exhibit 1–10 Universal Need for ManagementExhibit 1–10 Universal Need for Management


Terms to KnowTerms to Knowmanagermanagerfirst-line managersfirst-line managersmiddle managersmiddle managerstop managerstop managersmanagementmanagementefficiencyefficiencyeffectivenesseffectivenessplanningplanningorganizingorganizingleadingleadingcontrollingcontrolling

management rolesmanagement rolesinterpersonal rolesinterpersonal rolesinformational rolesinformational rolesdecisional rolesdecisional rolestechnical skillstechnical skillshuman skillshuman skillsconceptual skillsconceptual skillsorganizationorganizationuniversality of universality of managementmanagement

CHAPTER-2

Management Yesterday and Today

Course: Principles of Management:FIN-6103

Instructor: Sonia Munmun


Learning OutcomesLearning Outcomes

2.1 Historical Background of Management 2.2 Classical ApproachClassical Approach2.3 Quantitative Approach2.3 Quantitative Approach2.4 Behavioral approach2.4 Behavioral approach2.5 Contemporary Approach 2.5 Contemporary Approach


Historical Background of Historical Background of ManagementManagement• Ancient ManagementAncient Management

Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall)• Adam SmithAdam Smith

Published Published The Wealth of Nations The Wealth of Nations in 1776in 1776 Advocated the division of labor (job specialization) to Advocated the division of labor (job specialization) to

increase the productivity of workersincrease the productivity of workers

• Industrial RevolutionIndustrial Revolution Substituted machine power for human laborSubstituted machine power for human labor Created large organizations in need of managementCreated large organizations in need of management


Exhibit 2–1 Major Approaches to ManagementExhibit 2–1 Major Approaches to Management


Major Approaches to Major Approaches to ManagementManagement

• ClassicalClassical• QuantitativeQuantitative• BehavioralBehavioral• ContemporaryContemporary


Scientific ManagementScientific Management• Fredrick Winslow TaylorFredrick Winslow Taylor

The “father” of scientific managementThe “father” of scientific management Published Published Principles of Scientific ManagementPrinciples of Scientific Management (1911) (1911)

The theory of scientific managementThe theory of scientific management

– Using scientific methods to define the “one best way” for a Using scientific methods to define the “one best way” for a job to be done:job to be done:

• Putting the right person on the job with the correct tools Putting the right person on the job with the correct tools and equipment.and equipment.

• Having a standardized method of doing the job.Having a standardized method of doing the job.

• Providing an economic incentive to the worker.Providing an economic incentive to the worker.


Exhibit 2–2 Taylor’s Scientific Management PrinciplesExhibit 2–2 Taylor’s Scientific Management Principles

1. Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method.

2. Scientifically select and then train, teach, and develop the worker.

3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed.

4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.


Scientific Management (cont’d)Scientific Management (cont’d)• Frank and Lillian GilbrethFrank and Lillian Gilbreth

Focused on increasing worker productivity through Focused on increasing worker productivity through the reduction of wasted motionthe reduction of wasted motion

Developed the microchronometer to time worker Developed the microchronometer to time worker motions and optimize work performancemotions and optimize work performance

• How Do Today’s Managers Use Scientific How Do Today’s Managers Use Scientific Management?Management? Use time and motion studies to increase productivityUse time and motion studies to increase productivity Hire the best qualified employeesHire the best qualified employees Design incentive systems based on outputDesign incentive systems based on output


General Administrative TheoryGeneral Administrative Theory• Henri FayolHenri Fayol

Believed that the practice of management was distinct Believed that the practice of management was distinct from other organizational functions from other organizational functions

Developed principles of management that applied to Developed principles of management that applied to all organizational situationsall organizational situations

• Max WeberMax Weber Developed a theory of authority based on an ideal Developed a theory of authority based on an ideal

type of organization (bureaucracy)type of organization (bureaucracy) Emphasized rationality, predictability, impersonality, technical Emphasized rationality, predictability, impersonality, technical

competence, and authoritarianismcompetence, and authoritarianism


Exhibit 2–3 Fayol’s 14 Principles of Exhibit 2–3 Fayol’s 14 Principles of Management Management

1.1. Division of workDivision of work

2.2. AuthorityAuthority

3.3. DisciplineDiscipline

4.4. Unity of commandUnity of command

5.5. Unity of directionUnity of direction

6.6. Subordination of Subordination of individual interests individual interests to the general to the general interestinterest

1.1. RemunerationRemuneration

2.2. CentralizationCentralization

3.3. Scalar chainScalar chain

4.4. OrderOrder

5.5. EquityEquity

6.6. Stability of tenure Stability of tenure of personnelof personnel

7.7. InitiativeInitiative

8.8. Esprit de corpsEsprit de corps


Exhibit 2–4Exhibit 2–4 Weber’s BureaucracyWeber’s Bureaucracy


Quantitative Approach to Quantitative Approach to ManagementManagement

• Quantitative ApproachQuantitative Approach Also called Also called operations researchoperations research or or management management

sciencescience Evolved from mathematical and statistical methods Evolved from mathematical and statistical methods

developed to solve WWII military logistics and quality developed to solve WWII military logistics and quality control problemscontrol problems

Focuses on improving managerial decision making by Focuses on improving managerial decision making by applying:applying: Statistics, optimization models, information models, and Statistics, optimization models, information models, and

computer simulationscomputer simulations


Exhibit 2–5 What Is Quality Management? Exhibit 2–5 What Is Quality Management?

Intense focus on the customer

Concern for continual improvement

Process-focused

Improvement in the quality of everything

Accurate measurement

Empowerment of employees


Understanding Organizational Understanding Organizational Behavior Behavior • Organizational Behavior (OB)Organizational Behavior (OB)

The study of the actions of people at work; people are The study of the actions of people at work; people are the most important asset of an organizationthe most important asset of an organization

• Early OB AdvocatesEarly OB Advocates Robert OwenRobert Owen Hugo MunsterbergHugo Munsterberg Mary Parker FollettMary Parker Follett Chester BarnardChester Barnard


Exhibit 2–6Exhibit 2–6 Early Advocates of OB Early Advocates of OB


The Systems ApproachThe Systems Approach• System DefinedSystem Defined

A set of interrelated and interdependent parts A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.arranged in a manner that produces a unified whole.

• Basic Types of SystemsBasic Types of Systems Closed systemsClosed systems

Are not influenced by and do not interact with their Are not influenced by and do not interact with their environment (all system input and output is internal).environment (all system input and output is internal).

Open systemsOpen systems Dynamically interact to their environments by taking in inputs Dynamically interact to their environments by taking in inputs

and transforming them into outputs that are distributed into and transforming them into outputs that are distributed into their environments.their environments.


Exhibit 2–7 The Organization as an Open Exhibit 2–7 The Organization as an Open System System


Implications of the Systems Implications of the Systems ApproachApproach• Coordination of the organization’s parts is Coordination of the organization’s parts is

essential for proper functioning of the entire essential for proper functioning of the entire organization.organization.

• Decisions and actions taken in one area of the Decisions and actions taken in one area of the organization will have an effect in other areas of organization will have an effect in other areas of the organization.the organization.

• Organizations are not self-contained and, Organizations are not self-contained and, therefore, must adapt to changes in their therefore, must adapt to changes in their external environment.external environment.


The Contingency ApproachThe Contingency Approach• Contingency Approach DefinedContingency Approach Defined

Also sometimes called the Also sometimes called the situational approach.situational approach.

There is no one universally applicable set of There is no one universally applicable set of management principles (rules) by which to manage management principles (rules) by which to manage organizations.organizations.

Organizations are individually different, face different Organizations are individually different, face different situations (contingency variables), and require situations (contingency variables), and require different ways of managing.different ways of managing.


Exhibit 2–8Exhibit 2–8 Popular Contingency VariablesPopular Contingency Variables

• Organization size• As size increases, so do the problems of coordination.

• Routineness of task technology• Routine technologies require organizational structures,

leadership styles, and control systems that differ from those required by customized or non-routine technologies.

• Environmental uncertainty• What works best in a stable and predictable environment

may be totally inappropriate in a rapidly changing and unpredictable environment.

• Individual differences• Individuals differ in terms of their desire for growth,

autonomy, tolerance of ambiguity, and expectations.


Terms to KnowTerms to Know• division of labor (or job division of labor (or job

specialization)specialization)• Industrial RevolutionIndustrial Revolution• scientific managementscientific management• therbligstherbligs• general administrative general administrative

theorytheory• principles of managementprinciples of management• bureaucracybureaucracy

• quantitative approachquantitative approach• organizational behavior organizational behavior

(OB)(OB)• Hawthorne StudiesHawthorne Studies• systemsystem• closed systemsclosed systems• open systemsopen systems• contingency approachcontingency approach

Robbins Ch.01&02

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