PTM (Chapters 1 2 3)

principles and theories of management
Ch1: Innovative
Management in Turbulent
Times
1
Rhoneil Anthony Gloria Gabriel
Management is the attainment of organizational goals in an
effective and efficient manner through planning, organizing,
leading and controlling organizational resources.
Two elements:
Four management functions
Attaining goals efficiently and effectively
2
Planning function concerned with defining future goals, and
deciding on the tasks and resources needed to attain them
Organizing function concerned with assigning tasks, grouping
tasks into departments, and allocating resources to departments
Leading function concerned with the use of influence to
motivate employees to achieve the goals
Control function concerned with monitoring and making
corrections to keep the organization on track toward its goals
3
Organize
Resources Plan Lead Performance
Control
The management process is a continuous cycle of POLC. 4

Effectiveness the degree to which the organization achieves a
stated goal
Efficiency the use of minimal resources (e.g. raw materials,

money and people) to produce a desired volume of output
5
Top Manager a manager who is at the top of the organizational
hierarchy and is responsible for the entire organization
e.g. CEO, EVPs, VPs, executive director, president, etc.
Concerns (Long-term): organizational goals & strategies, environmental
scanning
6
Middle Manager a manager who works at the middle levels of
the organization and is responsible for major departments
e.g. Directors, department head, division head, etc.
Concerns: leading departments/divisions/major functions, but recently
also trouble shooting, enabling and project management
7
First-line Manager a manager who is at the 1st or 2nd
management level and is directly responsible for the production
of goods and services.
e.g. section manager, line manager, supervisor
Concerns: leading a group of non-management employees, lending
technical expertise
8
Conceptual Skill the cognitive ability to see the organization as
a whole and the relationships among its parts
Human Skill the ability to work with and through other people
and to work effectively as a group member
Technical Skill the understanding of and proficiency in the
performance of specific tasks
9
Top Managers
Middle Conceptual Skills Human Skills Technical

Must be developed as the
Managers manager moves up
Stays constant Skills
First-line Need decreases as the

Managers manager moves up
Non-Managers
individual contributors
10
Functional Manager a manager who is responsible for a
department that performs a single functional task and has
employees with similar training and skills
General Manager a manager who is responsible for several
departments that perform different functions
11
? To those that are not, do you want to be a
manager?
12
Individual Contributor Manager
Specialist Generalist
coordinates different tasks
Things done through own

Through Others
efforts
Individual Actor Network Builder
Work Independently Interdependently
13
Increased workload
Challenge of supervising former peers
Responsibility for others
Being caught in the middle
Fragmented, quick and numerous work items (multitasking

necessary)
14
Stephen Coveys P vs. PC Balance
15
P vs. PC Balance can be best explained through
the fable of The Goose that Laid the Golden
Eggs.
According to Covey, effectiveness is a balance of
two things:
Production the desired results produced (the golden
egg, or P)
Production Capability maintaining, preserving, and
enhancing the resources that produce the desired
results (the goose, or PC)
Image from: http://suehenrytalks.com/wp-content/uploads/2013/02/golden-goose-golden-egg.jpg

16
Because of the PC concept of maintenance, preservation and
enrichment, we need to rethink Dafts definition of management
as:
Management is the continuous attainment of organizational goals in an
effective, efficient, and consistent manner through planning, organizing,
leading and controlling organizational resources.
17
Clarifications, questions, something more to
share?
18
Ch2: Evolution of
Management Thinking
19
Newer Approaches
still evolving
Contingency View
pattern finding
Systems Theory
interdependent parts
Management Science
math and data analyses
Humanistic Perspective
people and social sciences
Classical Perspective
defined, rational and organized
1870
1880
1890
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
20
Classical Perspective
(19th and early 20th, the rise of factories) emphasized a rational, scientific
approach to the study of management and sought to make organizations
efficient operating machines
3 subfields:
Scientific Management
Bureaucratic Organizations
Administrative Principles
21
Scientific Management (Frederick Winslow Taylor)
emphasized scientifically determined changes in management practices as

the solution to improving labor productivity
Approaches
Standard method
Select worker with appropriate abilities
Train worker in standard methods
Support workers in planning work and eliminating interruptions
Provide wage incentives
22
Bureaucratic Organizations (Max Weber)
(reaction to family lead businesses and personal loyalty) emphasized

management on an impersonal, rational basis through such elements as
clearly defined authority and responsibility, formal record-keeping, and
separation of management and ownership
Characteristic of Weberian Bureaucracy
Division of Labor
Personnel selection/promotion based on technical qualifications
Admin acts/decisions recorded
Separate management from ownership
Managers subject to rules/procedures
Positions organized in hierarchy of authority
23
Administrative Principles (Henri Fayol, Mary Parker Follett,
Chester I. Barnard)
focuses on the total organization rather than the individual worker,
delineating the management functions of planning, organizing,
coordinating and controlling
Henri Fayol Administrative Principles
Unity of Command only one manager per subordinate
Division of Work specialization to increase efficiency
Unity of Direction group like task under one manager
Scalar Chain chain of command should include all
Henri Fayol Management Functions
Planning, Organizing, Commanding, Coordination, Controlling
24
Mary Parker Follett Concepts
Empowerment
Facilitate rather than control
Allow employee to act based on situations
Chester I. Barnard Concepts
Existence of informal organization
Acceptance theory of authority
Follett and Barnard were early advocates of the humanistic perspective. 25

Humanistic Perspective
(late 19th century) emphasized understanding human behavior, needs, and
attitudes in the workplace
3 subfields:
Human Relations Movement
Human Resource Perspective
Behavioral Science Approach
26
Human Relations Movement
emphasizes satisfaction of employees basic needs as the key to increased
worker productivity
Hawthorne Studies (1927-1933). A series of experiments on worker
productivity that attributed employees increased output to managers
better treatment of them during the study.
Hawthorne Effect a short term improvement caused by observing worker
performance.
27
Human Resource Perspective
suggests jobs should be designed to meet higher-level needs by allowing

workers to use their full potential
Maslows Hierarchy of Needs
Self Actualization
Esteem
Belongingness
Safety
Physiological
28
Theory X, Theory Y (Douglas McGregor, 1960)
Theory X
dislikes work
must be coerced, controlled, directed
dislikes responsibility, likes being directed, likes job security
Theory Y
does not inherently dislike work, work is natural
control and coercion not the only means, workers will self-direct/self-control if
they are committed
under good conditions, accept and even seek responsibility
many workers are capable of imagination, ingenuity, creativity
potential only partially utilized
29
Behavioral Science Approach
applies social science in an organizational context, drawing from

economics, psychology, anthropology, sociology, and other disciplines
30
Management Science Perspective
(after WWII) applies mathematics, statistics, and other quantitative

techniques to managerial problems
Examples
production layout
queuing analysis
break even analysis
Forecasting
Inventory
scheduling
31
Systems Theory
describes organizations as open systems characterized by entropy, synergy

and subsystems interdependence
Environment
Profit &
Materials Info
Loss
Org
People Money Satisfaction Products
To survive, open systems must interact effectively with their environment
32
Contingency View
successful resolution of organizational problems is thought to depend on

managers identification of key variations in the situation at key
Identify the key patterns, apply fit solutions
Case View
Every situation is unique
Contingency View
Things have patterns. Apply similar
responses to common problems.
Universalist View
There is one best way
33
share?
34
Ch3: Environment and
Corporate Culture
35
External Environment elements outside the organization that
can affect it
General Environment layer that indirectly affects the organization
Task Environment layer that directly affects the organization
Internal Environment elements within the organization
36
General
International Technological
Dimension Dimension
Task
Competitors Customers
Internal
Economic Employees Culture Natural

Dimension Dimension
Management
Suppliers Labor Market
Legal/Political Socio-cultural
Dimension Dimension
37
International
events originating in foreign countries
Technological
scientific and technological advancement in the industry and society at
large
Socio-cultural
demographic characteristics, norms, customs, and values of the population
38
Economic
economic health of the country or region
Legal-Political
national and local government regulations and political activities (like
pressure groups) designed to influence company behavior
Natural
land, weather, climate, plants, animals and other natural environmental
concerns
39
Customers
People and organizations that acquire goods and services from the
organization
Competitors
Other organizations that provide goods and services to the same set of
customers
Suppliers
People or organizations that provide the raw materials the organizations
Labor Market
The people available for hire by the organization
In scanning the environment, do not forget about new entrants and substitutes. 40
The higher the
High uncertainty, the
Rate of Change of the Factors
Uncertainty more the org

needs to adapt
Low
Uncertainty
Number of Factors
41
Boundary Spanning linking and coordinating the organization
with key elements in the external environment
Engineering can scan for new technologies
Marketing and Purchasing can work closely with customers and suppliers;
do market research
Business intelligence, competitive intelligence
Inter-organizational Partnerships
Mergers and Joint Ventures
42
Culture the set of key values, beliefs, understandings, and
norms that members of an organization share
culture is the most important of the internal elements
studies suggests that successful companies concentrate on both business
performance and cultural values (culture provides sustainability)
Two parts:
Visible at the surface like: dress code, office lay-out, symbols, slogans, special
events, etc.
Invisible like deeper expressed values, e.g. The HP Way; and underlying
assumptions and beliefs like people here care about one another.
43
Harvard studies suggests that successful businesses have
cultures that are not only strong but also adaptive to the
external environment
Adaptive Unadaptive
Managers pay close attention to their Managers behave insularly, politically, and
Visible
employees and customers; they initiate bureaucratically. As a result, they do not

change when needed even if there are change their strategies quickly to adjust to
some risks. changes in the environments.
Managers care mainly about themselves,

Managers care deeply for customers,
Invisible
their work group and work product. They

stockholders, and employees. They value
value the orderly and risk-reducing
people and processes that create useful
processes rather than leadership
change .
initiatives
CYA Cover Your Ass. NIH Not Invented Here. Parochialism focus on the group alone, not the wider picture. 44
In cultures, external environment and strategies are important
considerations:
Needs of the External Environment
Flexibility Stability
Adaptability Culture Achievement Culture

External
Values the ability to interpret the Results-oriented, values

environment into new behavior competitiveness, personal
Strategic Focus
responses initiative, and achievement
Involvement Culture Consistency Culture

Internal
Values meeting the needs of Values and rewards methodical,

employees, cooperation, and rational, orderly way of doing
equality things
45
share?
46

PTM (Chapters 1 2 3)

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principles and theories of management

Resources Plan Lead Performance

The management process is a continuous cycle of POLC. 4

Efficiency the use of minimal resources (e.g. raw materials,

Middle Conceptual Skills Human Skills Technical

First-line Need decreases as the

Things done through own

Individual Actor Network Builder

Work Independently Interdependently

Challenge of supervising former peers

Responsibility for others

Being caught in the middle

Fragmented, quick and numerous work items (multitasking

Image from: http://suehenrytalks.com/wp-content/uploads/2013/02/golden-goose-golden-egg.jpg

emphasized scientifically determined changes in management practices as

(reaction to family lead businesses and personal loyalty) emphasized

Follett and Barnard were early advocates of the humanistic perspective. 25

suggests jobs should be designed to meet higher-level needs by allowing

applies social science in an organizational context, drawing from

(after WWII) applies mathematics, statistics, and other quantitative

describes organizations as open systems characterized by entropy, synergy

To survive, open systems must interact effectively with their environment

successful resolution of organizational problems is thought to depend on

Economic Employees Culture Natural

Suppliers Labor Market

Uncertainty more the org

Mergers and Joint Ventures

employees and customers; they initiate bureaucratically. As a result, they do not

Managers care mainly about themselves,

their work group and work product. They

Adaptability Culture Achievement Culture

Values the ability to interpret the Results-oriented, values

responses initiative, and achievement

Involvement Culture Consistency Culture

Values meeting the needs of Values and rewards methodical,

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