Chapter-1 Management Case

Industrial
Management
Program
Diploma 4
POLMAN Bandung
Lecturer :
Mohammad Nurdin, MBA
Oktober 2010
Copyright 2006 Thomson Business and Economics.

All rights reserved.
11
INDUSTRIAL
INDUSTRIAL MANAGEMENT
MANAGEMENT
Competences :
The student has knowledge and understanding of
both the political organization and the strategic
and operational aspects of a dynamic business.
Kompetensi :
Mahasiswa memiliki pengetahuan dan
pemahaman tentang politik dalam organisasi dan
strategis serta aspek operasional dari
bisnis/industri yang dinamis
Copyright 2006 Thomson Business and Economics. All rights reserved. 12

Objectives
Objectives
Objective
Awareness of the dynamic changes in the area of
organizations and how managers and employees
can adjust this
Tujuan
Kesadaran akan perubahan dinamis di bidang
organisasi dan bagaimana para manajer dan
pegawai dapat menyesuaikan dengan hal ini

Material
Material (Content)
(Content)
1. Management Theories
2. Management (planning, organizing, directing and
control)
3. Planning and Strategic Management (Implementation of
Strategies)
4. Decision Making
5. Organizational Design and Organizational Structure and
Power Distribution of Authority
6. Human Resource Management
7. Engineering Economics
8. Operational Management

Chapter 1
A Brief History
of Management
Source:
The University of West Alabama
Learning
Learning Outcomes
Outcomes
After studying this appendix, you should be able to:
1. State the major similarities and differences between the
classical and behavioral theorists.
2. Describe how systems theorists and contingency theorists differ
from classical and behavioral theorists.
3. Define the following key terms:
classical theorists systems theorists
behavioral theorists sociotechnical theorists
management science theorists contingency theorists

Classical
Classical Theory
Theory
Classical Theorists
Focus on the job and management functions to
determine the best way to manage in all
organizations.
Scientific Management
Best way to maximize job performance
Fredrick Winslow Taylor
Father of Scientific Management
Frank and Lillian Gilbreth
Work efficiency
Henry Gantt
Work scheduling

Classical
Classical Theory
Theory (contd)
(contd)
Administrative Theory
Henri Fayol
Father of Modern Management
Principles and functions of management
Max Weber
Bureaucracy concept
Chester Barnard
Authority and power in organizations
Mary Parker Follett
Worker participation, conflict resolution, and
shared goals

Behavioral
Behavioral Theory
Theory
Behavioral Theorists
Focus on people to determine the best way to
manage in all organizations.
Human Relations Movement (later, the
Behavioral Science Approach)
Elton Mayo
Hawthorne studies
Abraham Maslow
Hierarchy of needs theory
Douglas McGregor
Theory X and Theory Y

Management
Management Science
Science
Management Science Theorists
Focus on the use of mathematics to aid in
problem solving and decision making.
Mathematical models are used in the areas of
finance, management information systems
(MIS), and operations management.
Integrative
Integrative Theories
Theories
Systems Theory
Focuses on viewing the organization as a whole
and as the interrelationship of its parts
(subsystems).
Sociotechnical Theory
Focuses on integrating people and technology.
Contingency Theory
Focuses on determining the best management
approach for a given situation.
Comparing
Comparing Theories
Theories
Attempts to develop the best way to manage in all organizations by

Classical focusing on the jobs and structure of the firm.
Attempts to develop a single best way to manage in all

Behavioral organizations by focusing on people and making them productive.
Management Recommends using math (computers) to aid in problem solving

Science and decision making.
Systems Manages by focusing on the organization as a whole and the

interrelationship of its departments, rather than on individual
Theory parts.
Sociotechnical Recommends focusing on the integration of people and

Theory technology.
Contingency Recommends using the theory or the combination of theories that

Theory best meets the given situation.
Exhibit AP12
Ideas
Ideas on
on Management
Management at
at Gap
Gap
1. What resources does Gap use to sell its

merchandise?
2. What management functions are performed at Gap
stores?
3. What levels and types of managers have careers at
Gap?
4. How does Gap meet new workplace issues and
challenges?
Chapter 2
Managing
Source :
The University of West Alabama
Learning
Learning Outcomes
Outcomes
After studying this chapter, you should be able to:
1. Describe a managers responsibility.
2. List and explain the three management skills.
3. List and explain the four management functions.
4. Identify the three management role categories.
5. List the hierarchy of management levels.
6. Describe the three different types of managers.
7. Describe the differences among management levels in terms of
skills needed and functions performed.
Learning
Learning Outcomes
Outcomes (contd)
(contd)
8. Define the following key terms:
manager planning
managers resources organizing
performance leading
management skills controlling
technical skills management role categories
human and communication
skills levels of management
conceptual and decision-
making skills types of managers
management functions knowledge management
Why
Why Study
Study Management?
Management?
The better you can work with people, the more
successful you will be in both your personal and
your professional lives.
Employers want to hire employees
who can participate in managing
the firm.
Even nonmanagers (Individual
Contributors) are being trained
to perform management
functions.
Why
Why Study
Study Management?
Management? (contd)
(contd)
The study of management builds the skills needed in
todays workplace to succeed in:
Becoming a partner in managing your organization
through participative management.
Working in a team and sharing in decision making and
other management tasks.
The study of management also applies directly to your
personal life in helping you to:
Communicate with and interact with people every day.
Make personal plans and decisions, set goals, prioritize
what you will do, and get others to do things for you.
Society Needs Leaders and Team Players
Be Successful in our Community, Religious, Social,
Professional, Recreational and Other Organizations.
Become Leaders for a Just and Humane World
What
What Is
Is aa Managers
Managers Responsibility?
Responsibility?
Manager
The individual responsible for achieving
organizational objectives through efficient and
effective utilization of resources. Participative?
The Managers Resources
Human, financial, physical, and informational
Performance
Means of evaluating how effectively and
efficiently managers use resources to achieve
objectives.
Today often means How as well as What
What
What Does
Does ItIt Take
Take to
to Be
Be aa Successful
Successful Manager?
Manager?
Management Qualities (Survey of Execs.)

Integrity, industriousness, and the ability
to get along with people
Management Skills
Technical
Human and communication (Teaming)
Conceptual and decision-making skills
Systems Thinking & Critical
Thinking
The Ghiselli Study(6 Traits of Manager
Success Inverse Order)
6) Initiative, 5)self-assurance,4) decisiveness,
3) intelligence, 2) need for occupational
achievement, and 1) supervisory ability
Exhibit 12
What
What Do
Do Managers
Managers Do?
Do?
Management Functions (Different Scope at job level)
Planning
Setting objectives and determining in advance
exactly (?) how the objectives will be met.
Monitor for Change and Anticipate or React
PDCA Plan Do Check - Act
Organizing
Delegating and coordinating tasks
and allocating resources to achieve
objectives.
Leading
Influencing employees to work
toward achieving objectives.
Setting an Example (Shadow of the Leader)
Controlling
Establishing and implementing mechanisms to
ensure that objectives are achieved.
The
TheSystems
SystemsRelationship
Relationshipamong
amongthe
theManagement
ManagementFunctions
Functions
Planning
Management
Functions
Controlling Organizing
Management
Skills
Leading
Exhibit 13
Management
Management Roles
Roles
Role
A set of expectations of how one will behave in a
given situation.
Management Role Categories (Mintzberg)
Interpersonal
Figurehead, leader, and liaison
Informational
Monitor, disseminator, and spokesperson
Decisional
Entrepreneur, disturbance handler, resource
allocator, and negotiator
Ten
Ten Roles
Roles Managers
Managers Play
Play
Managers play various roles as necessary while performing their

management functions so as to achieve organizational objectives.
Exhibit 14
Differences
Differences Among
Among Managers
Managers
The Three Levels of Management
Top managers
CEO, president, or vice president
Middle managers
Sales manager, branch manager, or department head
First-line managers
Crew leader, supervisor, head nurse, or office manager
Individual Contributors (ICs)
Non-management operative employees
Workers in the organization who are supervised by first-line
managers.
Professionals/Specialists/Technicians (Knowledge
Workers)
Management
Management Levels
Levels and
and Functional
Functional Areas
Areas
SOME
ORGANIZATIONS
FLIP THIS CHART
UPSIDE DOWN
INDIVIDUAL CONTRIBUTORS OFTEN REPORT ANYWHERE

Exhibit 15
Types
Types of
of Managers
Managers
General Managers
Supervise the activities of several departments.
Functional Managers
Supervise the activities of related tasks.
Common functional areas:
Marketing/Sales/Product Development
Operations/Production/Services Delivery
Finance/Accounting
Human Resources/personnel management
Infrastructure (IT, Real Estate, Legal)
Project Managers
Coordinate employees across several functional
departments to accomplish a specific task.
Management
Management Skills
Skills and
and Functions
Functions
Differences among management levels in skill

needed and the functions performed:
Planning
Controlling Organizing
Exhibit 16
Copyright 2006 Thomson Business and Economics. All rights reserved. Leading 131
Individual
Individual Management
Management Styles
Styles
Skill
Skill Builder
Builder 22 Page
Page 31
31
What is Your Preferred Management Style?

12 Points Possible
Autocratic
Consultative
Participative
Empowerment
Combinations or Flexible
Best Management Style?
Adaptive or Situational Leadership
Differences
Differences between
between Large
Large and
and Small
Small Businesses
Businesses
Exhibit 17
Differences
Differencesbetween
betweenLarge
Largeand
andSmall
SmallBusinesses
Businesses (contd)
(contd)
ALSO OFTEN APPLIES TO NON-PROFITS AND CIVIC

ORGANIZATIONS, WITH FOCUS ON THEIR MISSION
Exhibit 17 contd
New
New Workplace
Workplace Issues
Issues and
and Challenges
Challenges
Technology and Speed
Networking and
Boundaryless Globalization
Relationships and Diversity
Ethics and Knowledge,

Social Learning,
Responsibility Quality, and
Continuous
Improvement
Participative
Management, Knowledge
Empowerment, Management
and Teams
GENERATIONAL DIFFERENCES Change, Creativity, Innovation,
and Entrepreneurship
New
New Workplace
Workplace Issues
Issues and
and Challenges
Challenges (contd)
(contd)
Knowledge, Learning, Quality, and Continuous

Improvement
Information is the foundation of knowledge
which, in turn, is the foundation of competitive
advantage. People (employees) are the
competitive advantage!
Knowledge workers
The learning organization
Knowledge Management
Involves everyone in an organization in sharing
knowledge and applying it to continuously
improve products and processes.
New
New Workplace
Workplace Issues
Issues and
and Challenges
Challenges (contd)
(contd)
Change, Creativity, Innovation, and

Entrepreneurship
Knowledge management requires that people
change in order to continually improve.
The speed of change in modern business has
increased because of globalization and changes
in technology. And other factors listed.
Creativity is coming up with new ideas for
improvements, and innovation is implementing
those ideas.
Entrepreneurship is about generating creative
ideas and using them through innovation.
New
New Workplace
Workplace Issues
Issues and
and Challenges
Challenges (contd)
(contd)
Participative Management, Empowerment,

and Teams
Empowering employees to share in
performing management functions by
working in teams.
Learning organizations manage knowledge
well by empowering teams to be creative
and innovative.
Ethics and Social Responsibility
Managerial integrity
SOX Compliance after Financial Scandals
Situational responses
e. g. Katrina
New
New Workplace
Workplace Issues
Issues and
and Challenges
Challenges (contd)
(contd)
Networking and Boundaryless Relationships

Electronic networks
Beware the informality of e-mail, miss-interpreted
messages and first impressions
Can be distracting/off task
Relationship networks
Virtual integration
QUESTION ARE ELECTRONIC TOOLS CHANGING THE QUALITY OF

RELATIONSHIPS? E-Mail, NetMeeting, Video Conferences?
New
New Workplace
Workplace Issues
Issues and
and Challenges
Challenges (contd)
(contd)
Technology and Speed

E-business: work done by using electronic
linkages (including the Internet) between
employees, partners, suppliers, and customers.
E-commerce: business exchanges or
transactions that occur electronically.
Globalization and Diversity
Mergers are creating larger globalized firms.
Firms competing globally have to act locally.
Diversity is increasing as minorities grow and
markets globalize.
Case
Case of
of Management
Management
Microsoft
Microsoft Case
Case Questions
Questions
1.Which type of resource played 4. Bill Gates' participation in and
the most important role in the coordination of small units and his
success of Microsoft? delegation of authority to
managers to run their departments
a. human c. financial are examples of the __
b. physical d. informational management function.
a. planning c. leading
2. Which of the management b. organizing d. controlling
skills is stressed most in the
case study? 5. Which primary management role
a. technical did Bill Gates use to achieve
success?
b. human and communication
a. interpersonal-leader
c. conceptual and decision-
making b. informational-monitor
c. decisional-negotiator
3. Which of the management
functions is stressed most in 6. Bill Gates is at which level of
the case study? management?
a. top b. middle c. first-line
a. planning c. leading
b. organizing d. controlling
Microsoft
Microsoft Case
Case
7. Which type of manager is Bill 10. Would Ghiselli (6 Traits page
Gates? 10) agree that Bill Gates has
a. general supervisory ability?
b. functional a. Yes b. No
c. project
11. Give examples of some of the
8. Bill Gates has greater need for tasks Bill Gates performs in each
which skills? of the four management functions.
a. technical rather than 12. Give examples of some of the
conceptual tasks Bill Gates performs in each
b. conceptual rather than of the three management roles.
technical
c. a balance of both 13. Do you think you would like to
work tor Bill Gates? Explain your
9. How does Bill Gates spend most answer.
of his time?
a. planning and organizing 14. Are Bill Gates and Microsoft
ethical and socially responsible?
b. leading and controlling
c. a balance of both a and b
E-Commerce
E-Commerce
Exhibit 18

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Copyright 2006 Thomson Business and Economics.

Copyright 2006 Thomson Business and Economics. All rights reserved. 12

Copyright 2006 Thomson Business and Economics. All rights reserved. 13

Copyright 2006 Thomson Business and Economics. All rights reserved. 14

Copyright 2006 Thomson Business and Economics. All rights reserved. 16

Copyright 2006 Thomson Business and Economics. All rights reserved. 17

Copyright 2006 Thomson Business and Economics. All rights reserved. 18

Copyright 2006 Thomson Business and Economics. All rights reserved. 19

Attempts to develop the best way to manage in all organizations by

Attempts to develop a single best way to manage in all

Management Recommends using math (computers) to aid in problem solving

Systems Manages by focusing on the organization as a whole and the

Sociotechnical Recommends focusing on the integration of people and

Contingency Recommends using the theory or the combination of theories that

1. What resources does Gap use to sell its

Management Qualities (Survey of Execs.)

Managers play various roles as necessary while performing their

INDIVIDUAL CONTRIBUTORS OFTEN REPORT ANYWHERE

Differences among management levels in skill

What is Your Preferred Management Style?

ALSO OFTEN APPLIES TO NON-PROFITS AND CIVIC

Ethics and Knowledge,

Knowledge, Learning, Quality, and Continuous

Change, Creativity, Innovation, and

Participative Management, Empowerment,

Networking and Boundaryless Relationships

QUESTION ARE ELECTRONIC TOOLS CHANGING THE QUALITY OF

Technology and Speed

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