Management: An Overview

Organization

Organization is a system which operates through human activity. Organizations are very complex social formations, their links cant be described with only one theory. Organization Theories concerns 3 levels:

Macro: cooperation among different organization Mezzo: structures of the organizations, and influencing factors Micro: behavior of the members of the organizations, motivation, conflict etc.

What is Management?

Definition: Coordinating work activities so that they are completed efficiently and effectively with and through other people Efficiency: getting the most output from the least input Effectiveness: completing activities so that the organizations goals are attained.

Management is
Getting work done through others
Efficiency

Effectiveness

Managerial Roles
Interpersonal Figurehead
Leader

Informational Monitor
Disseminator

Decisional Entrepreneur
Disturbance Handler Resource Allocator

Liaison

Spokesperson

Negotiator

Management Functions
Classical Management Functions Updated Management Functions

Planning Making Things Happen

Organizing
Meeting the Competition Staffing Organizing People, Projects, and Processes

Leading
Controlling

Levels of Management
Top Level Management

CEO COO CIO General Mgr Plant Mgr Regional Mgr

Middle Level Management

First-Line Management

Office Manager Shift Supervisor Department Manager Team Leader

Top Managers
Responsible for Creating a context for change Developing attitudes of commitment and ownership in employees Creating a positive organizational culture through language and action Monitoring their business environments

Middle Managers
Responsible for
Setting objectives consistent with top management goals, planning strategies Coordinating and linking groups, departments, and divisions Monitoring and managing the performance of subunits and managers who report to them Implementing the changes or strategies generated by top managers

First-Line Managers
Responsible for Managing the performance of entry-level employees

Teaching entry-level employees how to do their jobs

What Companies Look for in Managers

Conceptual Skill

Design Skill

Core skills and their use in the different levels

Top

Conceptual skills Human skills Technical skills

Management Theory

Pre-Classical Classical Approaches

Frederick Taylor: Scientific Management (1886) Frank and Lillian Gilbreth: Time/motion studies (later 1800s) Henri Fayol: 14 Principles of Management (1880s-1890s) Max Weber : Bureaucracy (1920s) The Hawthorne Experiment (1927) MacGregors Theory X and Theory Y (1960)

Behavioral Approaches

Quantitative Approaches Contemporary Approaches

Ouchis Theory Z (1981) Contingency Management

Classical Approaches

Frederick Taylor: Scientific Management (1886) Frank and Lillian Gilbreth: Time and motion studies (later 1800s) Henri Fayol: Fourteen Principles of Management (1880s-1890s) Max Weber : Bureaucracy (1920s)

Frederick W. Taylor

Developed Scientific Management Laid foundation for the study of management Key ideas:

Management as a separate field of study Explicit guidelines for scientific study of management functions Time studies for setting standards Functional specialization of managers duties Piece-rate Incentive systems

Taylors Principles of Management

The one best way.

Scientific selection of personnel

Management using scientific observation

Financial incentives

Functional foremanship

Putting right worker in right job not enough A system of financial incentives is also needed
Division of labor between manager and workers Manager plans, prepares, inspects Worker does the actual work Functional foremen , specialized experts, responsible for specific aspects of the job

Frank & Lillian Gilbreth

Time and motion efficiency experts

Developed therbligs, breakdown of manual skills into 16 actions

Frank was a lazy bricklayer looking for an easier way and Lillian was a psychologist. Endorsed piece-work and suggested a higher rate per unit if his directions were followed. Disagreed with Taylors idea that management should choose which workers took which jobs.

Henri Fayol

First came up with the five basic functions of managementPlanning, Organizing, Staffing, Directing, Communicating, and Controlling First wrote that management is a set of principles which can be learned. Developed Fourteen Principles of Management

HENRI FAYOLs FOURTEEN PRINCIPLES OF MANAGEMENT

1. Specialization of labor. Specializing encourages continuous improvement in skills and the development of improvements in methods. 2. Authority. The right to give orders and the power to exact obedience. 3. Discipline. No slacking, bending of rules. 4. Unity of command. Each employee has one and only one boss. 5. Unity of direction. A single mind generates a single plan and all play their part in that plan. 6. Subordination of Individual Interests. When at work, only work things should be pursued or thought about. 7. Remuneration. Employees receive fair payment for services, not what the company can get away with.

8. Centralization. Consolidation of management functions. Decisions are made from the top. 9. Scalar Chain (line of authority). Formal chain of command running from top to bottom of the organization, like military 10. Order. All materials and personnel have a prescribed place, and they must remain there. 11. Equity. Equality of treatment (but not necessarily identical treatment) 12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers. 13. Initiative. Thinking out a plan and do what it takes to make it happen. 14. Esprit de corps. Harmony, cohesion among personnel.

Max Weber

Coined bureaucracy: the perfect office Well defined chain of command Clear division of work (job descriptions) Procedures for any situation Impersonality Employment and promotion based on technical competence.

Behavioral Approaches

The Hawthorne Experiment (1927) Chester Barnard (1930s 1960s) Herbert Simon (1947) MacGregors Theory X and Theory Y (1960)

The Hawthorne Experiment

Research conducted at the Hawthorne plant of the Western Electric Company near Chicago, 1927-1937 Initial study: effects of lighting on worker performance
But the Hawthorne Effect was instead identified

The workers values, desires, and needs may be more important than physical conditions. Workers want to have input. Workers want to be respected.

Theories X and Y

Conducted in 1960s by Douglas McGregor Theory X: classical theory Most people dislike work and responsibility, they are motivated only by money and do not care about the job. Close supervision is required and people must be carefully controlled and coerced into working Average person prefers direction

Theories X and Y

Theory Y: Modern Management Theory

People often enjoy their work and will exercise self-control at work. People are motivated by wanting to do a good job and will do well if the opportunity is presented People have capacity for imagination, ingenuity, and creativity People enjoy expending physical and mental effort in work as much as play and rest

Contemporary Approaches

Ouchis Theory Z (1981) Contingency Management

Ouchis Theory Z

Theory Z

Value of culture in an industrial society Intimate and cooperative work relationships Alienated in work environment in which family ties, traditions, and social institutions are minimized Workers have strong sense of moral obligation, discipline and order

Contingency Management

Managing in Different and Changing Situations

Prentice Hall, 2002

contingency variable

Brief

Behavioral

Mary Parker Follet : Power Sharing Chris Argyris: Model I & Model II Organisations Management Science Operation Management MIS

Quantitative Approach

System Theory