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Managers and Management© 2008 Prentice Hall, Inc. All rights reserved.
People Differences Operatives ManagersPeople who work directly on a job or task and have no responsibility for overseeing the work of others. Managers Individuals in an organization who direct the activities of others. © 2008 Prentice Hall, Inc. All rights reserved.
Who Are Managers And Where Do They Work?Organization A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizations. Where managers work (manage). Common Characteristics of Organizations Distinct purpose and goals People Systematic structure © 2008 Prentice Hall, Inc. All rights reserved.
EXHIBIT 1–2 Organizational Levels© 2008 Prentice Hall, Inc. All rights reserved.
Identifying Managers First-line Managers Middle Managers Top ManagersSupervisors responsible for directing the day-to-day activities of operative employees Middle Managers Individuals at levels of management between the first-line manager and top management Top Managers Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members © 2008 Prentice Hall, Inc. All rights reserved.
How Do We Define Management?The process of getting things done, effectively and efficiently, through and with other people Efficiency Doing the thing correctly; refers to the relationship between inputs and outputs; seeks to minimize resource costs Effectiveness Doing the right things; goal attainment © 2008 Prentice Hall, Inc. All rights reserved.
Management Processes Planning OrganizingIncludes defining goals, establishing strategy, and developing plans to coordinate activities Organizing Includes determining what tasks to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made © 2008 Prentice Hall, Inc. All rights reserved.
Management Processes (cont’d)Leading Includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts Controlling The process of monitoring performance, comparing it with goals, and correcting any significant deviations © 2008 Prentice Hall, Inc. All rights reserved.
Is The Manager’s Job Universal?Level in the Organization Do managers manage differently based on where they are in the organization? Profit versus Not-for-profit Is managing in a commercial enterprise different than managing in a non-commercial organization? Size of Organization Does the size of an organization affect how managers function in the organization? While the importance of managerial roles varies depending on a manager’s position within an organization, the differences are of degree and emphasis, not of function. As managers move up the organization, for example, they spend less time supervising and more time planning. All managers, however, make decisions and plan, lead, organize, and control. But the amount of time they give to each activity is not necessarily constant. In addition, the content of the managerial activities changes with the manager’s level. When measuring managerial performance in business, profit (the bottom line) is an unambiguous criterion. Even though not-for-profit organizations need money to survive, however, their managers do not live and die to maximize profits. Given this difference, managers working in profit and not-for-profit organizations must perform similar functions: planning, organizing, leading, and controlling. © 2008 Prentice Hall, Inc. All rights reserved.
EXHIBIT 1–6 Distribution of Time per Activity by Organizational LevelSource: Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll, “The Job(s) of Management.” Industrial Relations 4, no. 2 (1965), p. 103. © 2008 Prentice Hall, Inc. All rights reserved.
General Skills for ManagersConceptual Skills Political skills Interpersonal skills Technical skills Skills of Successful Managers © 2008 Prentice Hall, Inc. All rights reserved.
Specific Skills for ManagersBehaviors related to a manager’s effectiveness: Controlling the organization’s environment and its resources. Organizing and coordinating. Handling information. Providing for growth and development. Motivating employees and handling conflicts. Strategic problem solving. Research has also identified specific sets of behaviors that explain more than 50 percent of a manager’s effectiveness. Controlling the organization’s environment and resources. Effective managers are proactive and stay ahead of environmental changes. They base decisions on clear, up-to-date, accurate knowledge of the organization’s objectives. Organizing and coordinating. Managers organize around tasks and coordinate interdependent relationships among tasks wherever they exist Handling information. Managers use information and communication channels for identifying problems, understanding environmental changes, and making effective decisions. Providing for growth and development. Managers use continual learning on the job to provide for the personal growth and development of themselves and their employees. Motivating employees and handling conflicts. Effective managers maximize positive on-the-job situations and minimize conflicts so that employees feel motivated to do their best work. Strategic problem solving. Managers take responsibility for their decisions and ensure that subordinates use effective decision-making skills. © 2008 Prentice Hall, Inc. All rights reserved.
How Much Importance Does The Marketplace Put On Managers?Good (effective) managerial skills are a scarce commodity. Managerial compensation packages are one measure of the value that organizations place on managers. Management compensation reflects the market forces of supply and demand. Management superstars, like superstar athletes in professional sports, are wooed with signing bonuses, interest-free loans, performance incentive packages, and guaranteed contracts. Managers are usually more highly paid than operatives. As a manager’s authority and responsibility expand, so typically does his or her pay. So, compensation packages are one measure of the value that organizations place on good managerial skills. Most first-line supervisors earn between $30,000 and $55,000 a year. Middle managers start near $45,000 and top out at about $120,000 annually. Senior managers can earn $1 million or more per year. Reflecting the law of supply and demand, management superstars are wooed with attractive perquisites. © 2008 Prentice Hall, Inc. All rights reserved.
Why Study Management? We all have a vested interest in improving the way organizations are managed. Better organizations are, in part, the result of good management. You will eventually either manage or be managed. Gaining an understanding of the management process provides the foundation for developing management skills and insight into the behavior of individuals and the organizations. We study management because we interact with organizations every day and have a vested interest in improving the way they are managed. Why? Because we interact with them every day of our lives. We also study management because after graduation we will either manage or be managed. For those who plan on careers in management, understanding the process of management can form the foundation on which to build their skills. Even if you do not plan to be a manager, the study of management will help you to understand the way your boss behaves and the internal workings of organizations. © 2008 Prentice Hall, Inc. All rights reserved.
How Does Management Relate To Other Disciplines?Sociology Psychology Political Science Economics Philosophy Anthropology Management © 2008 Prentice Hall, Inc. All rights reserved.
History Module THE HISTORICAL ROOTS OF CONTEMPORARY MANAGEMENT PRACTICES © 2008 Prentice Hall, Inc. All rights reserved.
The Pre-modern Era Ancient Massive Construction ProjectsEgyptian pyramids Great Wall of China Michelangelo, the Manager. © 2008 Prentice Hall, Inc. All rights reserved.
Adam Smith’s Contribution To The Field Of ManagementWrote the Wealth of Nations (1776) Advocated the economic advantages that organizations and society would reap from the division of labor: Increased productivity by increasing each worker’s skill and dexterity. Time saved that is commonly lost in changing tasks. The creation of labor-saving inventions and machinery. © 2008 Prentice Hall, Inc. All rights reserved.
The Industrial Revolution’s Influence On Management PracticesMachine power began to substitute for human power Lead to mass production of economical goods Improved and less costly transportation systems became available Created larger markets for goods. Larger organizations developed to serve larger markets Created the need for formalized management practices. © 2008 Prentice Hall, Inc. All rights reserved.
Scientific ManagementFrederick W. Taylor The Principles of Scientific Management (1911) Advocated the use of the scientific method to define the “one best way” for a job to be done Believed that increased efficiency could be achieved by selecting the right people for the job and training them to do it precisely in the one best way. To motivate workers, he favored incentive wage plans. Separated managerial work from operative work. © 2008 Prentice Hall, Inc. All rights reserved.
Scientific Management ContributorsFrank and Lillian Gilbreth Bricklaying efficiency improvements Time and motion studies (therbligs) Henry Gantt Incentive compensation systems Gantt chart for scheduling work operations © 2008 Prentice Hall, Inc. All rights reserved.
General Administrative TheoryGeneral Administrative Theorists Developed general theories of what managers do and what constitutes good management practice Henri Fayol (France) Fourteen Principles of Management: Fundamental or universal principles of management practice Max Weber (Germany) Bureaucracy: Ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships © 2008 Prentice Hall, Inc. All rights reserved.
EXHIBIT HM–2 Fayol’s Fourteen Principles of ManagementDivision of Work Authority Discipline Unity of Command Unity of Direction Subordination of Individual Interests to the General Interest Remuneration Centralization Scalar Chain Order Equity Stability of Tenure of Personnel Initiative Esprit de Corps © 2008 Prentice Hall, Inc. All rights reserved.
EXHIBIT HM–3 Weber’s Ideal BureaucracyDivision of Labor Authority Hierarchy Formal Selection Formal Rules and Regulations Impersonality Career Orientation © 2008 Prentice Hall, Inc. All rights reserved.
Human Resources ApproachRobert Owen Scottish businessman and reformer who advocated for better treatment of workers. Claimed that a concern for employees was profitable for management and would relieve human misery. Hugo Munsterberg Created the field of industrial psychology—the scientific study of individuals at work to maximize their productivity and adjustment. Psychology and Industrial Efficiency (1913) © 2008 Prentice Hall, Inc. All rights reserved.
Human Resources Approach (cont’d)Mary Parker Follett Recognized that organizations could be viewed from the perspective of individual and group behavior. Believed that individual potential could only be released by group association. Chester Barnard Saw organizations as social systems that require human interaction and cooperation. Expressed his views on the “acceptance of authority” in his book The Functions of the Executive (1938). © 2008 Prentice Hall, Inc. All rights reserved.
Hawthorne Studies A series of studies done during the 1920s and 1930s that provided new insights into group norms and behaviors Hawthorne effect Social norms or standards of the group are the key determinants of individual work behavior. Changed the prevalent view of the time that people were no different than machines. © 2008 Prentice Hall, Inc. All rights reserved.
Human Relations MovementBased on a belief in the importance of employee satisfaction—a satisfied worker was believed to be a productive worker. Advocates believed in people’s capabilities and were concerned with making management practices more humane. Dale Carnegie Abraham Maslow Douglas McGregor © 2008 Prentice Hall, Inc. All rights reserved.
The Quantitative ApproachOperations Research (Management Science) Evolved out of the development of mathematical and statistical solutions to military problems during World War II. Involves the use of statistics, optimization models, information models, and computer simulations to improve management decision making for planning and control. © 2008 Prentice Hall, Inc. All rights reserved.
Social Events That Shaped Management ApproachesClassical Approach The desire for increased efficiency of labor intensive operations Human Resources Approach The backlash to the overly mechanistic view of employees held by the classicists. The Great Depression. The Quantitative Approaches World War II armament production © 2008 Prentice Hall, Inc. All rights reserved.
Managers and Management
PowerPoint Presentation by Charlie Cook
Principles of Management
Management History Module
The Evolution of Management Thought
Copyright ©2013 Pearson Education
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Evolution of Management Thought By Daniel A Wren
Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
UNIT II –Evolution of Management Therioes
Principles of Management Session. 2 Management Yesterday & Today
Chapter Two The Development of Management Theory
1 Management Theories (organizations as machines).
The Pre-modern Era Ancient massive construction projects
MANAGEMENT RICHARD L. DAFT.
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