Management and Organizations Modern concepts of management

Early concept of management ● The role of management is now to support, monitor,

● 3 TYA BCE and evaluate performance. Should a problem arise, it
● Middle Eastern priests is management’s responsibility to take corrective
○ first people to hold the recorded business action.
dealings ● Getting things done through others.
● work ethics
● way we act or behave in a middle of the work place Management History
(Socrates) Industrial Revolution
● The domino effect - Late 18th century
○ McGregor, Herzberg, etc - Machine power>human power
○ improve employee productivity in order to - Economical to manufacture goods in factories
increase managerial effectiveness
Understanding Management’s Context
4 basic management concepts
● Planning
Scientific Management
● Organizing
Fredrick Winslow Taylor
● Leading
- Principles of Scientific Management (1911)
● Controlling
- Management is science
- Academic discipline
The Wealth of Nations (1776)
- Psychology
● Adam Smith
- Management degree
● explain how the mercantilist system was being
- Principles:
replaced by an industrialized capitalist one
- Develop science for each element of
● fulfilling our individual self-interests results in the
individual’s work
benefit of many
- Scientifically select, train, teach, an develop
● free market system
- Cooperate with workers
○ self-interest
- Ensure work is done scientifically
○ increasing division of labor
- Divide work and responsibility equally
○ fosters stability and prosperity through the
market leading
Principles of General Administrative Management Theory
■ mutual interdependence
Henri Fayol
Division of labor
Division of Work
● Breaking down of jobs into narrow and repetitive
- specific task to do
tasks
- become more efficient and skilled in it.
● ^ productivity
- opposed to a multi-tasking culture
○ ^ skill & dexterity
- look at the current skill sets of each employee
● Delegation of tasks
- assign them a task that they can become proficient
● Job specialization
- help them to become more productive, skilled, and
○ Specialized tasks
efficient in the long run
government's three responsibilities:
Authority
to safeguard its borders, uphold the law, and carry out public
- needs to have the necessary authority
works.
- ensure that his instructions are carried out by the
employees
- lack the ability to get any work done
- authority should come along with responsibility
- balance between authority and responsibility
Discipline
- build a culture of mutual respect Order
- set of organizational rules, philosophies, and - orderly placement of resources (manpower, money,
structures materials, etc.) in the right place at the right time.
- good supervision and impartial judgment - proper use of resources in a structured fashion.

Unity of Command Equity

- lear on whose instructions to follow - kindness and justice
- receive orders from only one manager - creates loyalty and devotion among the employees
- authority, discipline, and stability are threatened. towards the organization they work for
- cause a breakdown in management structure
- cause employees to burn out Stability of Tenure of Personnel
- minimize staff turnover
Unity of Direction - maximize efficiency
- work in harmony towards the same objective - given enough time to settle into their jobs to become
- one plan, under the direction of one manager efficient
- one plan for all the marketing activities - ensured job security
- work towards a common goal under the direction of - instability can lead to inefficiency
one main person in charge of the whole thing - clear and effective method to handle vacancies when
they arise because it takes time and expense to train
Collective Interest Over Individual Interest new ones
- overall interest of the team should take precedence
over personal ones Initiative
- all employees should be encouraged to show
Remuneration initiative
- employees should be paid fair wages for the work - feel motivated and respected
that they carry out - listen to the concerns of their employees
- struggle to motivate and keep quality worker - encourage them to develop and carry out plans for
- include both financial and non-financial incentives. improvement
- structure in place to reward good performance to
motivate employees Esprit de Corps
- “Team Spirit”
Centralization - strive to create unity, morale, and co-operation
- concentration of power in the hands of the authority among the employees
- top-bottom approach to management - great source of strength in the organization
- Decentralization - happy and motivated employees are more likely to
- authority is distributed to all levels of be productive and efficient.
management
- no superior authority to control the Max Weber
organization Bureaucracy
- people at the bottom have no authority over their - Career orientation
responsibilities - Managers are professionals
- balance of centralization and decentralization - Division of labor
- Simple, routine, well-defined tasks
Scalar Chain - Authority hierarchy
- clear chain of communication between employees - Clear chain of command
and their superiors - Formal selection
- should know where they stand in the hierarchy - Technical competence/qualifications
- who to go to in a chain of command - Formal rules and regulations
- organizational chart drawn out for employees to see - Written rutes and standard operating
this structure clearly procedures
 - Impersonality Contingency Theory
- Uniform application of rules and - Situational approach
controls, not according to - No universally applicable set of management
personality principles
- Rationality, predictability - Organizations are individually different
- Different ways of management
Organizational behavior - Contingency Variables
Hawthorne studies (1924-1932) - Organization size
- ^adverse working conditions ^prouctivity - Coordination
- Individual output & work behavior - Routiness of task technology
- Monetary incentives<social norms, group - Organizational structure
standards, attitudes - Leadership style
- Control system
Quantitative Approach to Management - Environmental uncertainty
- WWII mathematical & statistical methods - Individual differences
- Total Quality Management (TQM) - Desire for growth
- Continuous improvement and - Autonomy
responsiveness to customer’s needs and - Tolerance of ambiguity
expectations - Expectations
- Customer
- Continual improvement Managing in the Global Environment
- Process-focused
- Quality of everything Globalization
- Accurate measurement ● international expansion of the business or company
- Empowerment of employees ● to develop an influence within different communities
● companies have been using social media to promote
Contemporary Approaches their business
Within system and environment o expand their companies toward the
1. Input international public
a. Raw materials
b. Human resources Social Media
c. Capital - Global management through the use of technology
d. Technology - help management grow progressively
e. Information - expanding and developing internationally
2. Transformation Process - increase productivity
a. Employees’ work activities - envision management's future
b. Management activities
c. Technology and operations methods Work ethics
3. Output ● training should be provided to diverse groups of
Gives feedback to input people across cultures
a. Products and services ● sustain a healthy working environment
b. Financial results
c. Information global organization
d. Human results - operates and competes with different countries
● sustainability of international businesses,
Implications of the Systems Approach organizations, and nations depends heavily on the
- Coordination for proper functioning global environment
- Decisions and actions will have an effect in other
areas of organization Managing Diversity
- Organizations must adapt to changes in external ● Process of changing traditional organizational
environment structure and execution
 ● Inclusivity in the workplace ● potential is limitless when diversity is
● Employees with different backgrounds acknowledged and resources are given
● Employed with unique ideas and strategies for the 2. Create more inclusive workplace policies
future of the company ○ to facilitate workplace diversity
● Allows employees to share ideas, concepts, and ○ adjusting job descriptions to appeal to a
creative works wider audience
● Form one vision ○ sending recruiters to more job fairs,
community hiring offices, and outreach
Types of diversity management initiatives
● Intranational 3. Communicate clearly and create an employee-led
o citizens, minority groups, or immigrants in task force
only one country ○ clear communication
○ follow-through
● Cross-national ○ take into account the needs of each
o different countries individual
o legal and cultural norms of the host ○ create channels of ethical and open internal
countries it operates in communication
○ Ask for feedback on a regular basis
Characteristics of diversity management ○ establish task teams to recruit and train
diverse candidates
Voluntary ■ help promote workplace culture
● take the initiative and employee engagement
● No regulation
● no government incentives either
4. Offer meaningful opportunities for employee
Provides tangible benefits engagement
● unlock the potential of every employee ○ travel to other locations in a different city,
● Provide competitive edge in their sector state, or nation
● enables every employee, regardless of their race, ○ to volunteer or spend their free time
religion, ethnicity, or country of origin, to contribute ○ observe how other places approach the
their talents and skills to the company same issues and circumstances
● comprehend the needs of clients from all over the ○ develop their creative thinking skills and
world apply them to their own teams
○ service those clients more effectively 5. Create mentorship programs
○ To guarantee that everyone has the chance
Broad definition to succeed
● criteria for diversity are limitless 6. Offer workplace flexibility
● programs promoting diversity are more inclusive ○ more choice over their time and location
● less likely to be rejected by those who belong to the ○ make your office more open and
dominant group or the well-off sectors of society accommodating
● High chances of being accepted by most ○ for people who need to work remotely
often, commute, or are working parents
Spreading diversity agenda
1. Educate Managers on the Benefits of Diversity in the SOCIAL RESPONSIBILITY
Workplace - Manager’s responsiveness to public consensus
● Cultural sensitivity training and other - There cannot be same set of social
sensitivity training are essential responsibilities (different public consensus,
● evaluate reporting structures different response)
● employee feedback systems - customs, religions, traditions, level of
○ ensure a clear line of industrialization and a host of other norms
communication and standards
 - Refers to two types of business obligations
- Socio-economic obligation Ethics
- Economic consequences must not - representations of moral principles and values that
adversely affect public welfare guide a person's or a group's behavior in terms of
- Promote employment what is right or wrong
opportunities
- Maintain competition Business ethics
- Curb inflation - applied ethics that focuses on real-world situations
- Socio-human obligation - context and environment in which transactions occur
- Nurture and develop human values - entails more than simply abiding by existing laws and
- morale, cooperation, regulations
motivation and - truthful, not causing harm to others, competing
self-realization in work) fairly, and refusing to prioritize your own interests
- belief that corporations have a social responsibility over those of your company, its owners, and its
beyond pure profit employees
Factors that Determine Ethical and Unethical Behavior
ORIGIN
- Welfare state
- ^ industrialization, ^ stoppages of work, v personal
relationships, v productive efficiency,
- ^ democracy, ^ respect for human dignity = welfare
state
- Make demands effectively felt
- Social security, protection against the cruel
hazards of life and help for the destitute Stages of moral development devised by Kohlberg.
- provision for the aged, compensation for
disablement at work, relief during sickness Level 1: Pre-conventional - a person’s choice
and unemployment and wage legislation between right or wrong is based on personal
consequences from outside sources, such as
THE TRIPLE BOTTOM LINE (TBL or 3BL) physical punishment, reward, or exchange of
- Aka 3Ps (profit, people and the planet) favors.
- Business measure accountability in funding and
Level 2: Conventional - ethical decisions rely on
support for financial, social, and environmental maintaining expected standards and living up to
benefits the expectations of others.

ARGUMENTS FOR AND AGAINST SOCIAL RESPONSIBILITY Level 3: Principled - individuals define moral
1. Public image values apart from the authority of the groups to
which they belong or society in general.
a. Favorable public image with pursuit of social
goals
2. Better environment
a. Solve difficult social problems
3. Discouragement of further governmental regulation
a. Less government regulation
4. Balance of responsibility and power
a. With great power comes great responsibility
b. Pursuit of social goals with increase ^
5. Lack of skills
a. Lack necessary skills to address social issues
6. Lack of accountability
a. No direct lines of accountability for social
actions
Individual Characteristics Employee Selection
- Values - Values-based management
- Ego strength - the organization’s values guide employees
- Locus of control in the way they do their jobs

Codes of Ethics and Decision Rules

Structural Variables - formal statement of an organization’s primary values
- Organizational characteristics and mechanisms that and the ethical rules it expects its employees to
guide and influence individual ethics follow
- Ethical behavior can be influenced by: - Code of Ethics
● An organization’s structural design
● Goals Developing Codes of Ethics
● Performance appraisal system ● Organizational leaders should model appropriate
● Reward allocation behavior and reward those who act ethically.
● Managers should reaffirm the importance of the
Issue Intensity ethics code and discipline those who break it
● Stakeholders should be considered as an ethics code
is developed or improved
● Managers should communicate and reinforce the
ethics code regularly
● Managers should use the five-step process to guide
employees when faced with ethical dilemmas

Ethical dilemmas
- lack of understanding of how to sort out and
The six factors suggest that: consider the possible consequences of our acts or
- the larger the number of people harmed inaction
- the more agreement that the action is wrong - Addressing ethical dilemmas
- the greater the likelihood that the action will cause
harm Leadership at the Top
- the more immediately the consequences of the ● commitment from managers at all levels, but
action will be felt especially the top level because:
- the closer the person feels to the victim - they uphold the shared values and set the
- The more concentrated the effect of the action on cultural tone
the victim(s)… - they’re role models in both words and
The greater the issue intensity or importance actions

Ethics in an International Context Job Goals and Performance Appraisal

● Ethical standards are not universal - Under the stress of unrealistic goals, otherwise
- Social and cultural differences determine ethical employees may feel they have no choice but
acceptable behaviors. to do whatever is necessary to meet those goals.
● Foreign Corrupt Practices Act
- It is illegal to corrupt a foreign official, yet Ethics Training
“token” payments to officials are - More organizations are setting up seminars,
permissible when doing so is an accepted workshops, and similar ethics training programs to
practice in that country. encourage ethical behavior.
● United Nations Global Contract
● The Ten Principles of the UN Global Compact Independent Social Audits
- Independent social audits: evaluate decisions and
management practices in terms of the organization’s
code of ethics
Ethical Leadership Team managers or Supervisory managers
- What managers do has a strong influence on - implement the plans
employees’ decisions whether to behave ethically. - team leader, assistant manager, foreman, and shift
- Being an Ethical Leader manager

Protection of Employees Who Raise Ethical Issues Qualities of a Good Manager

- Whistle-blower: individual who raises ethical According to the Young Entrepreneur Council (YEC), a good
concerns or issues to others manager should have the following qualities:
Accountability Warmth Patience
Social Entrepreneurship Character Honesty Decisiveness
- individual or organization that seeks out Prioritization Positive attitude Competence
opportunities to improve society by using practical, Empathy Flexibility
innovative, and sustainable approaches

Business Promoting Positive Social Change

- Corporate philanthropy decision-making
- effective way for companies to address - Identifying a decision, gathering data, and
societal problems considering potential solutions.
- Employee volunteering efforts
- popular way for businesses to be involved in DECISION-MAKING PROCESS
promoting social change
BARRIERS TO DECISION-MAKING
Managers as Decision Makers
Bounded Rationality
- prone to mistakes
What makes a manager a manager?
- we can not fully assimilate every possible variable
- take responsibility in an organization or company
there is or the effects of the said variable
- guide a managerial setup
- brains have limited capacity in relation to the
- primarily performs managerial duties
information we acquire
- authority to conduct performance assessments, hire,
fire, discipline, and keep track of attendance
Escalation of Commitment
- capable of approving overtime and vacation time.
- earlier decision wasn’t effective
- struggle to logically withdraw from bad decisions or
Types
continue to be devoted to them
- hard for a leader to accept erroneous results
Top manager
- in or close to the highest levels of the organizational
Time Constraints
structure
- circumstances they can’t control can affect making a
- Executive vice president, president, chief operating
wise decision
officer, and chief executive officer
- deadline that is not adequate
- insufficient data gathering
Functional manager
- overlook some information that can address our
- interpret plans and set actions
problem
- departments or teams are under the control of a
functional manager
Uncertainty
- project resources must be managed, owned, and
- uncertainty of the results will be inevitable
provided by them
- find a middle ground between planning and
Personal Biases
guidance
- comfortable with what is familiar to us
- ensure team members have the necessary resources
and can finish their tasks on schedule
 - lean towards something that we share a similarity
with
- choosing to stay with a long-known supplier, instead
of getting a better supplier that gives you a better
price with better quality
- confirmation bias
- recall information that “confirms” or aligns
with our belief
- prevents us from trying to make better
decisions
Conflict
- Members of an organization may dislike each other
due to their differences
- some decisions would benefit the company, yet it
will involve conflict

TIPS IN DECISION-MAKING

Encourage cooperation
- all suggestions are taken into consideration

Define your goals

- Recognize your larger goals and your company’s
objective

Use active listening

- open to everyone’s suggestions
- help to achieve the company’s unity

Practice
- help you identify your strengths and weakness and
how well you lead your team.

Manage your stress