Management Theory

Contents
Introduction
Historical perspectives or viewpoints on
management
Contemporary viewpoints on management
Learning organization
Management : What is it
Organization :
A group of people who work together to achieve some specific
purpose.
Management :
(1)The pursuit of organizational goal efficiently and effectively by (2)
integrating the work of people through (3) planning, organizing,
leading, and controlling the organizations resources.
Efficient : use resources people, money, raw material, etc- wisely
and cost-effectively
Effective : to achieve results, to make the righ decisions and
successfully carry them out so that they achieve the organizations
goals.
Six challenges of manager
Managing for competitive advantage Staying ahead
of rivals
(1) Being responsive to customers (2) innovation:
finding way to deliver new or better goods or
services (3) quality, (4) efficiency
Managing for diversity
Managing for Globalization
Managing for information technology
Managing for ethical standards
Managing for your own happiness and life goals
The four principal Functions
PLANNING
You set goals and decide
how to achieve them
ORGANIZING
You arrange tasks, people,
and other resources to
accomplish the work
CONTROLLING
You monitor performance,
compare it with goals, and
take corrective action as
needed
LEADING
You motivate, direct, and
otherwise influence people
to work hard to achieve the
organizations goals
Pyramid power : Level and areas
of management
Top
managers
Middle
managers
First-line
managers
Non-managerial
personnel
Produc-
tion
Marketing
Finance Human
resource
R&D
Three level of management
Top managers
Make long term decisions : overall direction of the
organization, establish the objectives, policies, and strategy
Middle managers
Implement the policies and plans of the top managers
above them and supervise and coordinate activities of the
first-line managers below them
First-line managers
Make short-term operating decisions, directing daily tasks
of non-managerial personnel.
The skills managers need
Technical skills
Consist of the job-specific knowledge needed to perform
well in a specialized field
Conceptual skills
The ability to think analytically, to visualize an organization
as a whole and understand how the parts work together
Human skills
The ability to work well in cooperation with other people to get
things done
Is Management an Art or
a Science?
Art? YES
Science? YES
Management can be approached deliberately, rationally,
systematically.
Scientific method
Observe events and gather facts
Pose a possible solutions based on those facts
Make a prediction of future events
Test the prediction under systematic conditions.
Why
Those who cannot remember the past are
condemned to repeat it
- George Santayana -
Why?
Guide to action
Source of new ideas
Clues to meaning of your managers
decisions
Clues to meaning of outside events
The classical viewpoint
Early 1900s
Emphasized finding ways to manage work
more efficiently
Assumes that people are rational
Two branches
Scientific
Administrative
The classical viewpoint
Scientific management
Emphasized the scientific study of work methods
to improve the productivity of individual workers.
F.W. Taylor ; Frank and Lillian Gilbreth
Administrative management
Concerned with managing the total organization.
Henry Fayol Functions of management
Max Weber Bureaucracy
The behavioral viewpoint
Emphasized the importance of understanding
human behavior and of motivating employees
toward achievement
Behaviorism
Hugo Munsterberg industrial psychology
Mary Parker Follet power sharing among employees
and managers
Elton Mayo Hawthorne effect
The behavioral viewpoint
Human relations
Abraham Maslowhierarchy of needs
Douglas McGregor theory X vs theory Y
The behavioral science approach
Relies on scientific research for developing
theories about human behavior that can be used
to provide practical tools for managers.
Psychology, sociology, anthropology, economics.
Ex. competition vs cooperation
The Quantitative view points
Application to management of quantitative
techniques, such as statistics and computer
simulations.
Management Science
Focus on using mathematics to aid in problem
solving and decision making
Operations Management
Focus on managing the production and delivery of
an organizations products or services more
effectively.
The contemporary
perspectives
System viewpoint
Regards the organization as systems of interrelated parts
that operate together to achieve a common purpose.
Contingency viewpoint
Emphasizes that a managers approach should vary
according to that is, be contingent on the individual and
the environmental situation.
Quality-Management viewpoint
Includes Quality Control, Quality Assurance, and Total
Quality Management.
Quality Control
The strategy for minimizing errors by managing each stage of
production
Quality Assurance
Focused on the performance of workers, urging employees to
strive for zero defects
Total Quality Management
A comprehensive approach led by top management and
supported throughout the organization dedicated to continuous
quality improvement, training, and customer satisfaction.
Learning Organization
An organization that actively creates, acquires, and
transfers knowledge within itself and is able to
modify its behavior to reflect new knowledge.
How?
Build a commitment to learning
Work to generate ideas with impact
Work to generalize ideas with impact