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    PowerPoint Presentation by Charlie CookThe University of West Alabama

    Fundamentals of ManagementSixth EditionRobbins and DeCenzowith contributions from Henry Moon

    C H A P T E R

    1Part I: Introduction

    2008 Prentice Hall, Inc.All rights reserved.

    Managers and Management

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    L E A R N I N G O U T C O M E S

    1. Describe the difference between managers andoperative employees.

    2. Explain what is meant by the term management.

    3. Differentiate between efficiency and effectiveness.4. Describe the four primary processes of management.

    5. Classify the three levels of managers and identify theprimary responsibility of each group.

    6. Summarize the essential roles performed bymanagers.

    7. Discuss whether the managers job is generic.

    After reading this chapter, you will be able to:

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    L E A R N I N G O U T C O M E S (contd)

    8. Describe the four general skills necessary forbecoming a successful manager.

    9. Describe the value of studying management.

    10. Identify the relevance of popular humanities and socialscience courses to management practices.

    After reading this chapter, you will be able to:

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    Who Are Managers AndWhere Do They Work?

    Organization

    A systematic arrangement of people broughttogether to accomplish some specific purpose;

    applies to all organizations.Where managers work (manage).

    Common Characteristics of Organizations

    Distinct purpose and goals

    People

    Systematic structure

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    EXHIBIT 11 Common Characteristics of Organizations

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    People Differences

    Operatives

    People who work directly on a job or task and haveno responsibility for overseeing the work of others.

    Managers

    Individuals in an organization who direct theactivities of others.

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    EXHIBIT 12 Organizational Levels

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    Identifying Managers

    First-line Managers

    Supervisors responsible for directing the day-to-dayactivities of operative employees

    Middle Managers

    Individuals at levels of management between thefirst-line manager and top management

    Top Managers

    Individuals who are responsible for making decisions

    about the direction of the organization andestablishing policies that affect all organizationalmembers

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    How Do We Define Management?

    Management

    The process of getting things done, effectively andefficiently, through and with other people

    Efficiency

    Doing the thing correctly; refers to the relationship betweeninputs and outputs; seeks to minimize resource costs

    Effectiveness

    Doing the right things; goal attainment

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    EXHIBIT 13 Efficiency and Effectiveness

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    EXHIBIT 14 Management Process Activities

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    Management Processes

    Planning

    Includes defining goals, establishing strategy, anddeveloping plans to coordinate activities

    Organizing

    Includes determining what tasksto be done, who is to do them,how the tasks are to begrouped, who reports towhom, and wheredecisions are to be made

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    Management Processes (contd)

    Leading

    Includes motivating employees, directing theactivities of others, selecting the most effectivecommunication channel, and resolving conflicts

    Controlling The process of monitoring performance,

    comparing it with goals, andcorrecting any significantdeviations

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    EXHIBIT 15 Mintzbergs Managerial Roles

    InterpersonalFigureheadLeader

    Liaison

    Informational

    Monitor

    Disseminator

    Spokesperson

    Decisional

    EntrepreneurDisturbance handler

    Resource allocator

    Negotiator

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

    Reprinted by permission of Pearson Education Inc., Upper Saddle River, NJ.

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    Is The Managers Job Universal?

    Level in the Organization

    Do managers manage differently based on wherethey are in the organization?

    Profit versus Not-for-profit

    Is managing in a commercial enterprise differentthan managing in a non-commercial organization?

    Size of Organization

    Does the size of an organization affect how

    managers function in the organization?

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    EXHIBIT 16 Distribution of Time per Activity by Organizational Level

    Source:Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll,

    The Job(s) of Management. Industrial Relations4, no. 2 (1965), p. 103.

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    EXHIBIT 17 Importance of Managerial Rolesin Small and Large Businesses

    Source:Adapted from J. G. P. Paolillo, The Managers Self-Assessments of Managerial Roles: Small vs. Large Firms,

    American Journal of Small Business(JanuaryMarch 1984) pp. 6162.

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    Is The Managers Job Universal? (contd)

    Management Concepts and National Borders

    Is management the same in all economic, cultural,social and political systems?

    Making Decisions and Dealing with Change

    Do managers all make decisions and deal withchange in the same ways?

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    General Skills for Managers

    Conceptual

    Skills

    Political

    skills

    Interpersonal

    skills

    Technical

    skills

    Skills of SuccessfulManagers

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    Steps in Mentoring

    1. Communicate honestly and openly with yourprotg.

    2. Encourage honest and open communication from

    your protg.

    3. Treat the relationship with the protg as alearning opportunity.

    4. Take the time to get to know your protg.

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    Specific Skills for Managers

    Behaviors related to a managers effectiveness:

    Controlling the organizations environment and its

    resources.

    Organizing and coordinating.

    Handling information.

    Providing for growth and development.

    Motivating employees and handling conflicts.

    Strategic problem solving.

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    EXHIBIT 18 Standards Overview of Managerial Competencies

    Management CompetenciesA cluster of knowledge, skills,

    and attitudes related toeffective managerialperformance.

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    How Much Importance Does TheMarketplace Put On Managers?

    Good (effective) managerial skills are a scarcecommodity.

    Managerial compensation packages are one

    measure of the value that organizations place onmanagers.

    Management compensation reflects the marketforces of supply and demand.

    Management superstars, like superstar athletes inprofessional sports, are wooed with signing bonuses,interest-free loans, performance incentive packages, andguaranteed contracts.

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    Why Study Management?

    We all have a vested interest in improving the

    way organizations are managed.

    Better organizations are, in part, the result of goodmanagement.

    You will eventually either manage or bemanaged.

    Gaining an understanding of the managementprocess provides the foundation for developing

    management skills and insight into the behavior ofindividuals and the organizations.

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    How Does Management RelateTo Other Disciplines?

    Sociology

    PsychologyPolitical Science

    Economics Philosophy

    Anthropology

    Management

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    History ModuleTHE HISTORICAL ROOTS OF CONTEMPORARYMANAGEMENT PRACTICES

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    The Pre-modern Era

    Ancient Massive Construction Projects

    Egyptian pyramids

    Great Wall of China

    Michelangelo, the Manager.

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    Adam Smiths ContributionTo The Field Of Management

    Wrote the Wealth of Nations (1776)

    Advocated the economic advantages thatorganizations and society would reap from the

    division of labor: Increased productivity by increasing each workers

    skill and dexterity.

    Time saved that is commonly lost in changing

    tasks.The creation of labor-saving inventions and

    machinery.

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    The Industrial Revolutions Influence

    On Management Practices

    Industrial Revolution

    Machine power began to substitute for human power

    Lead to mass production of economical goods

    Improved and less costly transportation systemsbecame available

    Created larger markets for goods.

    Larger organizations developed to serve larger

    markets Created the need for formalized management practices.

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    Classical Contributions

    Classical Approach

    The term used to describe the hypotheses of thescientific management theorists and the generaladministrative theorists.

    Scientific management theorists

    Fredrick W. Taylor, Frank and Lillian Gilbreth,

    and Henry Gantt

    General administrative theorists

    Henri Fayol and Max Weber

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    Scientific Management

    Frederick W. Taylor

    The Principles of Scientific Management (1911)

    Advocated the use of the scientific method to define the one

    best way for a job to be done

    Believed that increased efficiency could be achievedby selecting the right people for the job and trainingthem to do it precisely in the one best way.

    To motivate workers, he favored incentive wageplans.

    Separated managerial work from operative work.

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    EXHIBIT HM1 Taylors Four Principles of Management

    1. Develop a science for each element of an individualswork, which replaces the old rule-of thumb method.

    2. Scientifically select and then train, teach, and develop theworker. (Previously, workers chose their own work andtrained themselves as best they could.)

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

    4. Divide work and responsibility almost equally betweenmanagement and workers. Management takes over allwork for which it is better fitted than the workers.(Previously, almost all the work and the greater part of theresponsibility were thrown upon the workers.)

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    Scientific Management Contributors

    Frank and Lillian Gilbreth

    Bricklaying efficiency improvements

    Time and motion studies (therbligs)

    Henry Gantt

    Incentive compensation systemsGantt chart for scheduling work operations

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    General Administrative Theory

    General Administrative Theorists

    Developed general theories of what managers doand what constitutes good management practice

    Henri Fayol (France)

    Fourteen Principles of Management: Fundamental oruniversal principles of management practice

    Max Weber (Germany)

    Bureaucracy: Ideal type of organization characterized bydivision of labor, a clearly defined hierarchy, detailed rulesand regulations, and impersonal relationships

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    EXHIBIT HM2 Fayols Fourteen Principles of Management

    1. Division of Work

    2. Authority

    3. Discipline

    4. Unity of Command

    5. Unity of Direction

    6. Subordination ofIndividual Interests tothe General Interest

    7. Remuneration

    8. Centralization

    9. Scalar Chain

    10. Order

    11. Equity

    12. Stability of Tenureof Personnel

    13. Initiative

    14. Esprit de Corps

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    EXHIBIT HM3 Webers Ideal Bureaucracy

    1. Division of Labor

    2. Authority Hierarchy

    3. Formal Selection4. Formal Rules and Regulations

    5. Impersonality

    6. Career Orientation

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    Human Resources Approach

    Robert Owen

    Scottish businessman and reformer who advocatedfor better treatment of workers.

    Claimed that a concern for employees was profitablefor management and would relieve human misery.

    Hugo Munsterberg

    Created the field of industrial psychologythescientific study of individuals at work to maximizetheir productivity and adjustment.

    Psychology and Industrial Efficiency (1913)

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    Human Resources Approach (contd)

    Mary Parker Follett

    Recognized that organizations could be viewed fromthe perspective of individual and group behavior.

    Believed that individual potential could only bereleased by group association.

    Chester Barnard

    Saw organizations as social systems that requirehuman interaction and cooperation.

    Expressed his views on the acceptance of authorityin his book The Functions of the Executive (1938).

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    Hawthorne Studies

    A series of studies done during the 1920s and

    1930s that provided new insights into groupnorms and behaviors

    Hawthorne effect

    Social norms or standards of the group are thekey determinants of individual work behavior.

    Changed the prevalent view of the time thatpeople were no different than machines.

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    Human Relations Movement

    Based on a belief in the importance of

    employee satisfactiona satisfied worker wasbelieved to be a productive worker.

    Advocates believed in peoples capabilities and

    were concerned with making managementpractices more humane.

    Dale Carnegie

    Abraham Maslow

    Douglas McGregor

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    The Quantitative Approach

    Operations Research (Management Science)

    Evolved out of the development of mathematical andstatistical solutions to military problems during WorldWar II.

    Involves the use of statistics, optimization models,

    information models, and computer simulations toimprove management decision making for planningand control.

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    Social Events That ShapedManagement Approaches

    Classical Approach

    The desire for increased efficiency of labor intensiveoperations

    Human Resources Approach The backlash to the overly mechanistic view of

    employees held by the classicists.

    The Great Depression.

    The Quantitative Approaches

    World War II armament production

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    What is the Process Approach?

    Management Theory Jungle (Harold Koontz)

    The diversity of approaches to the study ofmanagementfunctions, quantitative emphasis,human relations approacheseach offer somethingto management theory, but many are only

    managerial tools.

    Process Approach

    Planning, leading, and controlling activities arecircular and continuous functions of management.

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    The Systems Approach

    Defines a system as a set of interrelated and

    interdependent parts arranged in a manner thatproduces a unified whole

    Closed system : a system that is not influenced byand does not interact with its environment

    Open system: a system that dynamically interactswith its environment

    Stakeholders: any group that is affected by

    organizational decisions and policies

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    EXHIBIT HM4 The Organization and Its Environment

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    The Contingency Approach

    The Contingency Approach

    Replaces more simplistic systems and integratesmuch of management theory.

    Four Contingency Variables

    Organization size (coordination) Routineness of task technology (task complexity

    dictates structure)

    Environmental uncertainty (change management)

    Individual differences (managerial styles ,motivational techniques, and job design)

    Exhibit HM-5

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    EXHIBIT HM5 Four Popular Contingency Variables

    Organization Size

    Routineness of Task TechnologyEnvironmental Uncertainty

    Individual Differences