Management & its different Perspectives

Dr. Vinith Nair

Organizations
Organization
A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizationsfor-profit as well as not-for-profit organizations. Where managers work (manage)

Common Characteristics of Organizations

The Organization and its Environment

People Differences
Operatives
People who work directly on a job or task and have no responsibility for overseeing the work of others

Managers
Individuals in an organization who direct the activities of others

Organizational Levels

Identifying Managers
First-line managers
Supervisors responsible for directing the day-to-day activities of operative employees

Middle managers
Individuals at levels of management between the firstline manager and top management

Top managers
Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members

Management Defined
Management
The process of getting things done, effectively and efficiently, through and with other people Efficiency
Means doing the thing correctly; refers to the relationship between inputs and outputs; seeks to minimize resource costs

Effectiveness
Means doing the right things; goal attainment

Efficiency and Effectiveness

Management Process Activities

Management process: planning, organizing, leading, and controlling

Mintzbergs Managerial Roles Interpersonal

Figurehead Leader Liaison

Decisional
Entrepreneur Disturbance hander Resource allocator Negotiator

Informational
Monitor Disseminator Spokesperson

Source: Adapted from The Nature of Managerial Work (paperback) by H. Mintzberg, Table 2, pp.9293. Copyright 1973 Addison Wesley Longman. Reprinted by permission of Addison Wesley Longman.

Is The Managers Job Universal?

Level in the organization
Do managers manage differently based on where they are in the organization?

Profit versus not-for-profit

Is managing in a commercial enterprise different than managing in a non-commercial organization?

Size of organization
Does the size of an organization affect how managers function in the organization?

Management concepts and national borders

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

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 Relations 4, No.2 (1965), p.103.

General Skills for Managers

Conceptual skills
A managers mental ability to coordinate all of the organizations interests and activities

Interpersonal skills
A managers ability to work with, understand, mentor, and motivate others, both individually and in groups

Technical skills
A managers ability to use the tools, procedures, and techniques of a specialized field

Political skills
A managers ability to build a power base and establish the right connections

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.

How Much Importance Does The Marketplace Put On Managers?

Good (effective) managerial skills are a scarce commodity.
Managerial compensation packages are one measure of the value that organizations place on them. Management compensation reflects the market forces of supply and demand.
Management superstars, like superstar athletes in professional sports, are wooed with signing bonuses, interest-free loans, performance incentive packages, and guaranteed contracts.

How Does Management Relate To Other Disciplines?

Sociology
Political Science Psychology

Management
Economics Anthropology Philosophy

Management Is a Global Affair

No Universally Accepted Theory of Management There are several approaches to the theory and practice of management.
The universal process approach The operational approach The behavioral approach The systems approach The contingency approach

Universal Process
Henry Fayol

Operational

Behavioral

Systems

Contingency

Frederick Taylor Frank & Lillian Gilbreth

The Hawthorne Studies

Chester I. Barnard General Systems Theory

Elton Mayo
Henry Gantt Mary Parker Follet Walter Shewhart Kaoru Ishikawa W. Edwards Deming Joseph M. Juran Armand V. Feigenbaum Philip B. Crosby Douglas McGregor

The Pre-modern Era

Ancient massive construction projects
Egyptian pyramids Great Wall of China

Michelangelo the manager

Adam Smiths Contribution To The Field Of Management

Wrote the Wealth of Nations (1776)
Advocated the economic advantages that organizations 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.

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 systems became available

Created larger markets for goods.

Larger organizations developed to serve larger markets

Created the need for formalized management practices.

Classical Contributions
Classical approach
The term used to describe the hypotheses of the scientific management theorists and the general administrative theorists.
Scientific management theorists
Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry Gantt

General administrative theorists

Henri Fayol and Max Weber

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 achieved by selecting the right people for the job and training them to do it precisely in the one best way. To motivate workers, he favored incentive wage plans. Separated managerial work from operative work.

Taylors Four Principles of Management

Develop a science for each element of an individuals work, which replaces the old rule-of-thumb method. Scientifically select and then train, teach, and develop the worker. (Previously, workers chose their own work and trained themselves as best they could.) 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. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers. (Previously, almost all the work and the greater part of the responsibility were thrown upon the workers).

Scientific Management Contributors

Frank and Lillian Gilbreth
Bricklaying efficiency improvements Time and motion studies (therbligs)

Henry Gantt
Incentive compensation systems Gantt chart for scheduling work operations

Administrative Management
General administrative theorists
Writers who developed general theories of what managers do and what constitutes good management practice Henri Fayol (France)
Fourteen Principles of Management: Fundamental or universal principles of management practice

Max Weber (Germany)

Bureaucracy: Ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships

Webers Ideal Bureaucracy

Division of Labor Authority Hierarchy Formal Selection Formal Rules and Regulations Impersonality Career Orientation

Human Resources Approach

Robert Owen
Claimed that a concern for employees was profitable for management and would relieve human misery.

Hugo Munsterberg
Created the field of industrial psychologythe scientific study of individuals at work to maximize their productivity and adjustment.

Human Resources Approach

Chester Barnard
Saw organizations as social systems that require human cooperation. Expressed his views in his book The Functions of the Executive (1938).

Human Resources Approach

Elton Mayo
Emotional factors were more important determinants of productive efficiency than were physical and logical factors.

Mary Parker Follett

Managers should be aware of how complex each employee is and how to motivate employees to cooperate rather than to demand performance from them.

Human Resources Approach

Douglas McGregor
Developed Theory X and Theory Y
Theory X: Managements traditionally negative view of employees as unmotivated and unwilling workers Theory Y: The positive view of employees as energetic, creative, and willing workers

Lessons from Human Resource Approach/ Behavioral Approach

People are the key to productivity. Success depends on motivated and skilled individuals committed to the organization. Managerial sensitivity to employees is necessary to foster the cooperation needed for high productivity.

Hawthorne Studies
A series of studies done during the 1920s and 1930s that provided new insights into group norms and behaviors
Hawthorne effect
Social norms or standards of the group are the key determinants of individual work behavior.

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

The Quantitative Approach

Operations research (management science)
Evolved out of the development of mathematical and statistical solutions to military problems during World War II. Involves the use of statistics, optimization models, information models, and computer simulations to improve management decision making for planning and control.

Social Events That Shaped Management Approaches

Classical approach
Desire for increased efficiency of labor intensive operations

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

The Process Approach

Management theory jungle (Harold Koontz)
The diversity of approaches to the study of managementfunctions, quantitative emphasis, human relations approacheseach offer something to management theory, but many are only managerial tools.

Planning, leading, and controlling activities are circular and continuous functions of management.

The Systems Approach

What Is a System?
A collection of parts operating interdependently to achieve a common purpose

Systems Approach
Posits that the performance of the whole is greater than the sum of the performance of its parts
Analytic versus synthetic thinking: Outside-in thinking versus inside-out thinking Seeks to identify all parts of an organized activity and how they interact

The Systems Approach

Chester I. Barnards Early Systems Perspective
Wrote Functions of the Executive Characterized all organizations as cooperative systems Defined principal elements in an organization as
Willingness to serve Common purpose Communication

Strong advocate of business ethics

General Systems Theory

General Systems Theory
An interdisciplinary area of study based on the assumptions that everything is part of a larger, interdependent arrangement

Levels of systems
Each system is a subsystem of the system above it. Identification of systems at various levels helps translate abstract systems theory into more concrete terms.

General Systems Theory (contd)

Closed Versus Open Systems
Closed system: A self-sufficient entity Open system: Something that depends on its surrounding environment for survival

New Directions in Systems Thinking

Organizational learning and knowledge management
Organizations are living and thinking open systems that learn from experience and engage in complex mental processes.

Chaos theory
Every complex system has a life of its own, with its own rule book.

Complex adaptive systems

Complex systems are self-organizing.

Systems Approach
Lessons from the Systems Approach
Managers now have a greater appreciation for the importance of seeing the whole picture. Manager should not become preoccupied with one aspect of organizational management while ignoring other internal and external realities. The systems approach tries to integrate various management theories.

The Contingency Approach

Contingency Approach
A research effort to determine which managerial practices and techniques are appropriate in specific situations. An open-system perspective
How subsystems combine to interact with outside systems

A practical research orientation

Translating research findings into tools and situational refinements for more effective management

A multivariate approach
Many variables collectively account for variations in performance.

Figure 2.6: The Contingency View: A Compromise

The Contingency Approach

Lessons from the Contingency Approach
Approach emphasizes situational appropriateness rather than rigid adherence to universal principles Approach creates the impression that an organization is captive to its environment

The Quality Advocates

Walter A. Shewhart
Introduced the concept of statistical quality control

Kaoru Ishikawa
Proposed a preventive approach to quality Developed fishbone diagram approach to problem solving

W. Edwards Deming
Based his 14 principles on reformed management style, employee participation, and striving for continuous improvement

The Quality Advocates (contd)

Joseph M. Juran
Proposed the concept of internal customers, teamwork, partnerships with suppliers, and brainstorming Developed Pareto analysis (the 80/20 rule) as a tool for separating major problems from minor ones

Armand V. Feigenbaum
Developed the concept of total quality control

Philip B. Crosby
Promoted the idea of zero defects (doing it right the first time)

McKinseys 7S Framework
Shared Values- What does the organisation stand for and what it believes in? Central beliefs and attitudes Structure salient features of the units organizational chart and inter connections within the office Strategy- Plans for the allocation of the firms resources over time to reach identified goals Systems procedures and routine processes, including how information moves around the unit Staff personnel categories within the unit and the use to which staff are put, skill base, etc Style characterization of how key managers behave in order to achieve the units goals Skills distinctive capabilities of key personnel and the unit as a whole

Questions ??

Slide Courtesy
Prentice Hall of India South Western Cengage Learning