INTRODUCTION TO MANAGEMENT

Chapter 1

Learning Outcomes
Follow this Learning Outline as you read and study this chapter.
1.1 What Is Management? Define management. Explain why efficiency and effectiveness are important to management. 1.2 Why Study Management?
Discuss why its important to understand management. Explain the universality of management concept. Describe the rewards and challenges of being a manager.

Learning Outcomes
Follow this Learning Outline as you read and study this chapter. 1.3 Historical Background of Management
Explain why studying management history is important.
Describe some early evidences of management practice. 1.4 Scientific Management Describe the important contributions made by Fredrick W. Taylor and Frank and Lillian Gilbreth. Explain how todays managers use scientific management.

Learning Outcomes
Follow this Learning Outline as you read and study this chapter. 1.5 General Administrative Theory
Discuss Fayols contributions to management theory.
Describe Max Webers contribution to management theory. Explain how todays managers use general administrative theory. 1.6 Quantitative Approach Explain what the quantitative approach has contributed to the field of management. Discuss how todays managers use the quantitative approach.

Learning Outcomes
Follow this Learning Outline as you read and study this chapter. 1.7 Current Issues and Trends
Explain why we need to look at the current trends and issues facing managers.
Describe the current trends and issues facing managers.

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?
Managerial Concerns
Efficiency
Doing things right
Getting the most output for the least inputs

Effectiveness
Doing the right things
Attaining organizational goals

Why Study Management?

The Value of Studying Management
The universality of management
Good management is needed in all organizations.

The reality of work

Employees either manage or are managed.

Rewards and challenges of being a manager

Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work. Successful managers receive significant monetary rewards for their efforts.

Why Study Management?

- Challenges of being a manager
Being a manager is hard work Must deal with a variety of personalities Must motivate workers in the face of uncertainty

05/09/2009

Copyright 2010 E.B.

Historical Background of Management

Ancient Management Egypt (pyramids) and China (Great Wall) Venetians (floating warship assembly lines) Adam Smith Published The Wealth of Nations in 1776 Advocated the division of labor (job specialization) to increase the productivity of workers Industrial Revolution Substituted machine power for human labor Created large organizations in need of management

Exhibit 21

Development of Major Management Theories

Major Approaches to Management

Scientific Management General Administrative Theory Quantitative Management Organizational Behavior Systems Approach Contingency Approach

Scientific Management
Fredrick Winslow Taylor
The father of scientific management
Published Principles of Scientific Management (1911)
The theory of scientific management
Using scientific methods to define the one best way for a job to be done:

Putting the right person on the job with the correct tools and equipment.
Having a standardized method of doing the job. Providing an economic incentive to the worker.

Exhibit 22

Taylors Four Principles of Management

1. Develop a science for each element of an individuals 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 (contd)

Frank and Lillian Gilbreth

Focused on increasing worker productivity through the reduction of wasted motion Developed the microchronometer to time worker motions and optimize work performance How Do Todays Managers Use Scientific Management? Use time and motion studies to increase productivity Hire the best qualified employees Design incentive systems based on output

General Administrative Theory

Henri Fayol
Believed that the practice of management was distinct from other organizational functions
Developed fourteen principles of management that applied to all organizational situations

Max Weber
Developed a theory of authority based on an ideal type of organization (bureaucracy)
Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism

Exhibit 23

Fayols 14 Principles of Management

1. Division of work. 2. Authority. 3. Discipline. 4. Unity of command.

7. 8. 9.

Remuneration. Centralization. Scalar chain.

10. Order.

5. Unity of direction.
6. Subordination of individual interests to the general interest.

11. Equity.
12. Stability of tenure of personnel.

13. Initiative.
14. Esprit de corps.

Exhibit 24

Webers Ideal Bureaucracy

Quantitative Approach to Management

Quantitative Approach

Also called operations research or management science Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems Focuses on improving managerial decision making by applying: Statistics, optimization models, information models, and computer simulations

Current Trends and Issues

Globalization Ethics Workforce Diversity Entrepreneurship E-business Knowledge Management Learning Organizations Quality Management

Current Trends and Issues (contd)

Globalization
Management in international organizations Political and cultural challenges of operating in a global market
Working with people from different cultures Coping with anticapitalist backlash Movement of jobs to countries with low-cost labor

Ethics
Increased emphasis on ethics education in college curriculums 2007 Prentice Hall, Inc. All 221 rights reserved. Increased creation and use of codes of ethics by

Exhibit 28

A Process for Addressing Ethical Dilemmas

Step 1: What is the ethical dilemma? Step 2: Who are the affected stakeholders? Step 3: What personal, organizational, and external factors are important to my decision? Step 4: What are possible alternatives? Step 5: Make a decision and act on it.

Current Trends and Issues (contd)

Workforce Diversity
Increasing heterogeneity in the workforce
More gender, minority, ethnic, and other forms of diversity in employees

Aging workforce
Older employees who work longer and do not retire The increased costs of public and private benefits for older workers An increasing demand for products and services related to aging.

Current Trends and Issues (contd)

Entrepreneurship Defined
The process of starting new businesses, generally in response to opportunities.

Entrepreneurship process
Pursuit of opportunities Innovation in products, services, or business methods Desire for continual growth of the organization

Current Trends and Issues (contd)

E-Business (Electronic Business)
The work preformed by an organization using electronic linkages to its key constituencies
E-commerce: the sales and marketing aspect of an e-business

Categories of E-Businesses
E-business enhanced organization
E-business enabled organization
2007 Prentice Hall, Inc. All rights reserved. 225 Total e-business organization

Exhibit 29

Categories of E-Business Involvement

Current Trends and Issues (contd)

Learning Organization
An organization that has developed the capacity to continuously learn, adapt, and change.

Knowledge Management
The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.

Exhibit 210

Learning Organization versus Traditional Organization

Current Trends and Issues (contd)

Quality Management
A philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectations Inspired by the total quality management (TQM) ideas of Deming and Juran
Quality is not directly related to cost Poor quality results in lower productivity

Exhibit 211

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.