CHAPTER 1  Have a distinct purpose (goal)

 Are composed of people

Why are Managers Important?
 Have a deliberate structure
 Organizations need their managerial skills and
Characteristics of Organizations
abilities more than ever in these uncertain,
complex, and chaotic times.
 Managerial skills and abilities are critical in
getting things done.
 The quality of the employee/supervisor
relationship is the most important variable in
productivity and loyalty.

Who Are Managers?

 Someone who coordinates and oversees the

work of other people so that organizational What Do Managers Do?
goals can be accomplished.
Management
Classifying Managers
 involves coordinating and overseeing the work
First-line Managers – activities of others so that their activities are
 Individuals who manage the work of non- completed efficiently and effectively.
managerial employees. Efficiency
Middle Managers - “Doing things right”
 Individuals who manage the work of first-line - Getting the most output for the least inputs
managers. Effectiveness
Top Managers - “Doing the right things”
 Individuals who are responsible for making - Attaining organizational goals
organization-wide decisions Efficiency and Effectiveness in Management
Levels of Management

Where Do Managers Work? Management Functions

Organization Planning

 A deliberate arrangement of people assembled - Defining goals, establishing strategies to achieve

to accomplish some specific purpose goals, and developing plans to integrate and
coordinate activities.
Common Characteristics of Organizations
-
Organizing Skills Managers Need

- Arranging and structuring work to accomplish Technical skills

organizational goals.
- Knowledge and proficiency in a specific field
Leading
Human skills
- Working with and through people to accomplish
- The ability to work well with other people
goals.
Conceptual skills
Controlling
- The ability to think and conceptualize about
- Monitoring, comparing, and correcting work.
abstract and complex situations concerning the
Four Functions of Management organization

Management Roles

- Roles are specific actions or behaviors expected Important Managerial Skills

of a manager.
- Mintzberg identified 10 roles grouped around
interpersonal relationships, the transfer of
information, and decision-making.

Interpersonal roles

- Figurehead, leader, liaison

Informational roles

- Monitor, disseminator, spokesperson

Decisional roles Importance of Customers

- Entrepreneur, disturbance handler, resource - Customers: the reason that organizations exist
allocator, negotiator
Innovation
Mintzberg’s Managerial Roles
- Doing things differently, exploring new territory,
and taking risks.

Sustainability –

- a company’s ability to achieve its business goals

and increase long-term shareholder value by
integrating economic,
Changes Facing Managers

Why Study Management?

Universality of Management

- management is needed in all types and sizes of

organizations at all organizational levels in all
organizational areas

Rewards and Challenges of Being a manager

Historical Background of Management 1. Develop a science for each element of an
individual’s work,
Ancient Management
2. Scientifically select and then train, teach, and
- Egypt (pyramids) and China (Great Wall) develop the worker.
- city of Venice 3. Heartily cooperate with the workers
4. Divide work and responsibility almost equally
Adam Smith
Frank and Lillian Gilbreth
- Published The Wealth of Nations in 1776
- Advocated the division of labor (job - Focused on increasing worker productivity
specialization) to increase the productivity of through the reduction of wasted motion
workers - Developed the microchronometer to time
worker motions and optimize work performance
Industrial Revolution
How Do Today’s Managers Use Scientific Management?
- Substituted machine power for human labor
- Created large organizations in need of 1. Use time and motion studies to increase
management productivity
2. Hire the best qualified employees
Major Approaches to Management 3. Design incentive systems based on output

General Administrative Theory

Henri Fayol

- Believed that the practice of management was

distinct from other organizational functions
- Developed 14 “General Principles of
Administration”
- Divided management activities into five
divisions

Max Weber

- Developed a theory of authority based on an

Management Philosophies ideal
- type of organization (bureaucracy)
- Scientific
- Administrative Fayol’s 14 Principles of Management
- Behavioral
1. Division of work
Scientific Management 2. Authority
3. Discipline
Fredrick Winslow Taylor
4. Unity of command
- The “father” of scientific management 5. Unity of direction
- Published Principles of Scientific Management 6. Subordination of individual interests to the
(1911) general interest
- Using scientific methods to define the “one best 7. Remuneration
way” for a job to be done: 8. Centralization
- Providing an economic incentive to the worker. 9. Scalar chain
- Time and Motion Studies 10. Order
- Believed in selecting, training, teaching, and 11. Equity
developing workers 12. Stability of tenure of personnel
13. Initiative
Taylor’s Scientific Management Principles
 14. Esprit de corps

Weber’s Bureaucracy

The Hawthorne Studies

- A series of productivity experiments conducted

at Western Electric from 1924 to 1932.

Experimental findings
Quantitative Approach to Management
- Productivity unexpectedly increased under
- Also called operations research or management
imposed adverse working conditions.
science
- Evolved from mathematical and statistical Research conclusion
methods developed to solve WWII military
- Social norms, group standards and attitudes
logistics and quality control problems
more strongly influence individual output and
- Focuses on improving managerial decision
work behavior than do monetary incentives.
What Is Quality Management?
Maslow theory
- Intense focus on the customer
- Concern for continual improvement
- Process-focused
- Improvement in the quality of everything
- Accurate measurement
- Empowerment of employees

Understanding Organizational Behavior

Organizational Behavior (OB)

- The study of the actions of people at work;

people are the most important asset of an
organization

Early OB Advocates
What is Quality management
- Robert Owen
- Meeting customer requirements
- Hugo Munsterberg
- Commitment by senior management and all
- Mary Parker Follett
employees
- Chester Barnard
- Focus on processes/ continuous improvement
plans
- Planning quality into products and processes
teams
 - Recognition and celebration - Organizations are individually different, face
- Reducing development cycle times different situations
- Six sigma
Popular Contingency Variables
The Systems Approach
Organization size
System Defined
- As size increases, so do the problems of
- A set of interrelated and interdependent parts coordination.
arranged in a manner that produces a unified
Routineness of task technology
whole.
- require organizational structures, leadership
Basic Types of Systems
styles, and control systems that differ from
Closed systems those required by customized

- Are not influenced by and do not interact with Environmental uncertainty

their environment
- What works best in a stable and predictable
Open systems environment may be totally inappropriate in a
rapidly changing and unpredictable
- Dynamically interact to their environments by
environment.
taking in inputs and transforming them into
outputs Individual differences

The Organization as an Open System - Individuals differ in terms of their desire for
growth, autonomy, tolerance of ambiguity, and
expectations.

Implications of the Systems Approach

1. Coordination of the organization’s parts is

essential for proper functioning
2. Decisions and actions taken in one area of the
organization will have an effect in other areas
3. Organizations are not self-contained

The Contingency Approach

Contingency Approach Defined

- sometimes called the situational approach.

- There is no one universally applicable set of
management principles