Managers and Management

Where We Are
Part 1 Introduction Part 2 Planning Part 3 Organizing Part 4 Leading Part 5 Controlling
Chapter 1 Managers and management

Chapter 2 Managing in Todays World

Chapter Guide
Three starting concepts Nature of management
Functional view on Management Managers role model Universality of management

Skills and competencies of managers Management as a field of study

Relevant disciplines to management Evolution of modern management practices Contemporary approaches on Management

Starting concepts: Organization

Define Organization
An organization is a systematic arrangement of people to accomplish some specific purpose.

Starting concepts: Organization

Common Characteristics of Organizations

Goals

Structure

People

Starting concepts: Managers

Define Managers
Managers are individuals in an organization who direct the activities of others. Operatives are the people who work directly.

Starting concepts: Managers

Supervise Others Top Managers Middle Managers First-Line Managers Operative Employees Work on Jobs

The Levels of an Organization

Management skills: Mentoring

Guidelines for Mentoring Others

Communicate honestly and openly with your protg
Encourage honest and open communication from your protg Treat the relationship with the protg as a learning opportunity

Take time to get to know your your protg

Starting concepts: management

Define Management
The term management refers to the process of getting things done effectively and efficiently, through and with other people.

Starting concepts: Management

Efficiency and Effectiveness

Means: Efficiency
R E S O U R C E U S A G E

Ends: Effectiveness

Goals
low waste high attainment

G O A L A T T A I N M E M T

Nature of management: Functional view

Planning

The Process of Management

Organizing

Leading

Controlling

Nature of management: Functional view

Planning
Defining an organizations goals Establishing strategy for achieving the goals

Developing a comprehensive hierarchies of plans to integrate and coordinate activities

Nature of management: Functional view

Organizing
Determining What task to be done Determining Who is to do them Determining How the tasks are be grouped Determining Who reports to whom Determining Where decisions are to be made

Nature of management: Functional view

Leading
Motivating employees
Directing activities of others

Selecting effective communication channels

Resolving conflict among members

Nature of management: Functional view

Controlling
Monitoring the organizations performance Comparing actual performance with previous set goals

Correcting any significant deviations

Nature of management: Role model

The Roles of Management

Decisional

Informational

The Mintzberg Studies

Interpersonal

Nature of management: Role model

Interpersonal Roles

Figurehead

Leader
Formal Authority and Status

Liaison

Nature of management: Role model

Informational Roles

Monitor

Disseminator
Interpersonal Roles

Spokesman

Nature of management: Role model

Decisional Roles

Entrepreneur Disturbance Handler

Resource Allocator
Informational Roles

Negotiator

Nature of management: Role model

Is The Managers Job Universal?

Level in the Organization

Profit Versus Non-Profit

Size of the Organization

Nature of management: Functional view

Time per Function by Organizational Level

First-Level Managers Middle Managers Top Managers

24% 15% 10% 51% 18% 13%

33%

28% 36% 14%

36%

22%

Planning

Organizing

Controlling

Leading

Nature of management: Universality

The Roles That Managers Play

Small Firms
Spokesperson

Importance
High

Large Firms
Resource Allocator

Entrepreneur Figurehead Leader

Moderate

Liaison Monitor Disturbance Handler Negotiator

Disseminator

Low

Entrepreneur

Nature of management: Universality

Contemporary Management Issues

Decision Making National Borders Handling Change

Managerial Roles currently emphasized

Managers today emphasize horizontal relationships and de-emphasize vertical (top-down) relationships. OLD MANAGER Thinks of self as manager or boss. NEW MANAGER Thinks of self as team leader or internal consultant.

Follows the chain or command

Deals with anyone necessary to get the job done Makes most decisions alone Invites others to join in decision making Demands long hours of Demands results working

Skills and competencies: General skills

Conceptual

Interpersonal

General Management Skills

Technical Political

oTechnical Skills involves process or technique knowledge and proficiency. Managers use the processes, techniques and tools of a specific area. oHuman skill involves the ability to interact effectively with people. Managers interact and cooperate with employees.
oConceptual skill involves the formulation of ideas. Managers understand abstract relationships, develop ideas, and solve problems creatively. oThus, technical skill deals with things, human skill concerns people, and conceptual skill has to do with ideas.

Skills and competencies: General skills

Managerial Skills at different levels of Organization

Top managers Middle managers First-line managers Non managers

Concept Skills

Human
Skills

Technical Skills

Skills and competencies: Specific Skills

Specific Management Skills

Controlling the environment and resources Organizing and coordinating Handling information Growing and developing Handling conflicts and motivating employees Strategic problem solving

Skills and competencies: MCI standards

Management Competencies
Management Charter Initiative (MCI)
Initiate and implement change and improvement

Monitor, maintain, and improve delivery

Monitor and control the use of resources Allocate resources effectively Recruit and select personnel

Skills and competencies: MCI Standards

Management Competencies
Management Charter Initiative (MCI)
Develop teams, individuals, and self Plan, allocate, and evaluate work Create, maintain, and enhance relationships

Seek, evaluate, and organize information

Exchange business information

Study management: Its importance

Management As a Field of Study

The Importance of Management

The Study of Management

Study management: Relevant disciplines

Management and Other Disciplines

Anthropology Economics Philosophy Psychology

Sociology
Political Science

Study management: Historical development (see History Model p28-40)

Historical Roots of Management Practice

Frederic Taylors Scientific management
Max Webers Bureaucracy Theory Henri Fayols Principles of Management

Study management: Historical development (see History Model p28-40)

Historical Roots of Management Practice

Hawthorne Studies and

Human Relation Movement

The Quantitative Approaches and Management Science(pert ,CPM, games theory,Break even Analysis)

 History of Management -Video

EVOLUTION OF MANAGEMENT Management in antiquity

Organized endeavors directed by people responsible for planning, organizing, leading, and controlling activities have existed for thousands of years. E.g.The Egyptian Pyramids and the Great wall of China. Another example is of Roman Catholic Church. Its highest authority is Pope. They have followed a simple hierarchy that has remained unchanged for almost two thousand years.

Thus management has been practiced for a long time!

PRE-SCIENTIFIC MANAGEMENT

Adam Smith (18th century economist)

Observed

that firms manufactured pins in one of two different ways:

Craft-styleeach

worker did all steps. Productioneach worker specialized in one step. Thus introduced the concept of division of labor : The breakdown of jobs into narrow, repetitive tasks.

o The most important pre-twentieth-century influence on management was the industrial revolution. Machine power was rapidly substituted for human power.

o The advent of machine power combined with division of labor was leading to mass production.
o Managers were needed to forecast demand, coordinate various activities, maintenance of machinery, and so forth.

1.Classical Theory a)The Scientific Management School

Scientific Management Theory: Body of principles that addresses the efficiency of workers Father of Scientific ManagementF.W.Taylor (1856-1915)

TAYLORS PRINCIPLES:
1. The development of a true science of work. - work study, with an acute emphasis on job specialisation. - emphasis on performance-related pay. 2. The scientific selection and development of the worker. 3. The bringing together of the science of work and the scientifically selected & trained workers.

4. The constant and close co-operation of management and men - specialization. - the removal of conflict.

1.Classical Theory(cont.)
b)Administrative Mgt /Functional Management
Also called administrative management; emphasizes on the manager and functions of the management. Henri Fayol First to systematize organization, using scientific forecasting and proper method of management.Focus on formal organization structure that separate basic process of general management.

Fayols 14 principles
Division of work Authority and responsibility Discipline Unity of command (one boss) Unity of direction(one plan ,one objective) Subordination of individual interests to organzational interest Remuneration(fair compensationboth for employees and employers )

Fayols 14 principles
Centralisation Scalar chain Order Equity Stability Initiative Espirit de corps (unity is strength,team work)

1.Classical Theory(cont.)

C) Bureaucracy Max Weber

Developed the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness.

C) Bureaucracy Max Weber

Rational legal Authority: obedience is owned to a legally established position or rank within the hierarchy of the organisation. Traditional authority: people obey a person because he belongs to a certain class(ex royalty) Charismatic Authority: obedience is based on the followers belie that the leader has some special power or appeal.

C) Bureaucracy Max Weber(features)

Division of work Hierarchy of positions Rules and regulations Impersonal conduct Staffing Technical competence Official record keeping

2.Neoclassical Approach

Human Resources Approach

HAWTHORNE STUDIES:

Elton Mayo and rothlesberger from harward business school were requested to be consultants studies at Western Electrics Hawthorne Plant and began with an investigation to see if different lighting affected workers productivity.
The Hawthorne effect is an increase in worker productivity produced by the psychological stimulus of being singled out and made to feel important.

 Illumination Experiments : Mapped workers productivity with varying levels of illumination (control gp and exp gp) Relay Assembly room experiments: work gp of girls )new elements like shorter work hours,rest pauses,improved physical conditions etc were maintained. However even when withdrawn productivity increased.(Socio psychological factors I am important and under observation) Bank wiring experiments :study workers under normal conditions. Prodn records of these 14 wrks were compared with earlier records however no change . But existence of informal cliques groups and informal prodn norms observed ( ex people maintained or restricted output in interest of slow performing workers) Mass Interview Programme:researches interviewed to find perception of working conditions norms etc Findings confirmed importance of social factors at work in the total work environment.

Hawthorne Experiments

3.Behavioural Science Approach

Abraham Maslow

He was a humanistic psychologist who proposed a hierarchy of human needs: physiological needs, safety, social, esteem and selfactualization.
Maslow argued that each level in the hierarchy must be satisfied before the next could be activated.

Douglas McGregor He is best known for his formulation of two sets of assumptionsTheory X and Theory Y.

Study management: Modern approaches (see History Model p41)

Process Approach
1920s (Henri Fayol): Plan, Organize, Command, Coordinate, Control 1950s (Harold Koontz): Planning, Organizing, Staffing, Directing, Controlling 1990s (Stephen Robbins): Planning, Organizing, Leading, Controlling

Study management: Modern approaches (see History Model p41)

Process Approach
Organizing
Determining what needs to be done, and who is to do it.

Leading
Directing and motivating all involved parties and resolving conflicts

Planning
Achieving the organization's stated purpose
Defining goals, establishing strategy, and developing subplans to coordinate activities

Controlling
Monitoring activities to ensure that they are accomplished as planned

Study management: Modern approaches (see History Model p41)

4.Systems Approach
System: A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Environment and system: System interact with the environment by exchanging materials, energy and information. System view on management: Organizations do not operate in isolation, their survival and growth often depends on successful interactions with the external environment.

Study management: Modern approaches (see History Model p41)

Systems Approach
Global Public Pressure Groups Government Suppliers

The Organization

Customers

Competitors

Labor Unions

SYSTEMS APPROACH A system is defined as a set of interrelated or interacting elements.

Open System
continually interacts with its environment

Closed System has

little interaction with its environment; it receives very little feedback from the outside

Organizations are open systems that constantly interact with the external environment:
Inputs The people, money, information, equipment, and materials required to produce and organizations goods or services Transformational Processes Outputs The products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization

Feedback Information about the reaction of the environment to the outputs that affect the inputs

The organizations capabilities in management and technology that are applied to converting inputs to outputs

Study management: Modern approaches (see History Model p42)

5.Contingency Approach
What is the best way to management ?
.... It all depends. What it depends on ? .... It depends Contingency factors or contingency variables. What are contingency variables ? .... You can get hundreds of them.

Study management: Modern approaches (see History Model p42)

Contingency Approach
Organization Size Environmental Uncertainty

Effective Management Routineness of Task Technology Individual Differences

Contingency Approach
There is no optimum way to structure organization. It is dependent on upon the contingencies of the situation. Four popular contingency variables Organization size (coordination) Routine- ness of task technology (task complexity dictates structure) Environmental uncertainty (change management) Individual differences (managerial styles , motivational techniques, and job design)

Case study 1
Naval had just graduated from a reputed b school and joined his fathers business which employed 28 semiskilled workers. After 1 week his father ,a retired government officer said ,Naval have had a chance to observe your working of men and women for the past few days. Although I hate to , but I must say something. You are just too nice to people.I know that they taught you human relations at the management institutebut it just does not work here.I remember when Hawthorne studies were reported everyone got excited about them.But believe me there is more to manage people then just being nice to them .

?Questions
Do you think Navals father interpreted and understood Hawthorne studies completely? If you were Naval what would be your reactions to Your fathers comments?

Chapter Summary
Managers vs. operative employees Meaning of management Efficiency and effectiveness Four primary management processes Three levels of managers

Chapter Summary
Essential roles of managers Generic character of the managers job Skills of successful managers Value of studying management Relevant Disciplines to management

Chapter Summary
Prominent early contributors Hawthorne studies Process approach System approach Contingency approach