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PowerPoint Presentation by Charlie Cook The University of West Alabama Fundamentals of Management Sixth Edition Robbins and DeCenzo with contributions.

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Presentation on theme: "PowerPoint Presentation by Charlie Cook The University of West Alabama Fundamentals of Management Sixth Edition Robbins and DeCenzo with contributions."— Presentation transcript:

1 PowerPoint Presentation by Charlie Cook The University of West Alabama Fundamentals of Management Sixth Edition Robbins and DeCenzo with contributions from Henry Moon C H A P T E R 1 Part I: Introduction © 2008 Prentice Hall, Inc. All rights reserved. Managers and Management

2 © 2008 Prentice Hall, Inc. All rights reserved.1–2 People Differences OperativesOperatives People who work directly on a job or task and have no responsibility for overseeing the work of others. People who work directly on a job or task and have no responsibility for overseeing the work of others. ManagersManagers Individuals in an organization who direct the activities of others. Individuals in an organization who direct the activities of others.

3 © 2008 Prentice Hall, Inc. All rights reserved.1–3 Who Are Managers And Where Do They Work? OrganizationOrganization A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizations. A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizations. Where managers work (manage). Where managers work (manage). Common Characteristics of OrganizationsCommon Characteristics of Organizations Distinct purpose and goals Distinct purpose and goals People People Systematic structure Systematic structure

4 © 2008 Prentice Hall, Inc. All rights reserved.1–4 EXHIBIT 1–2Organizational Levels

5 © 2008 Prentice Hall, Inc. All rights reserved.1–5 Identifying Managers First-line ManagersFirst-line Managers Supervisors responsible for directing the day-to-day activities of operative employees Supervisors responsible for directing the day-to-day activities of operative employees Middle ManagersMiddle Managers Individuals at levels of management between the first-line manager and top management Individuals at levels of management between the first-line manager and top management Top ManagersTop Managers Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members

6 © 2008 Prentice Hall, Inc. All rights reserved.1–6 How Do We Define Management? ManagementManagement The process of getting things done, effectively and efficiently, through and with other people The process of getting things done, effectively and efficiently, through and with other people Efficiency Efficiency Doing the thing correctly; refers to the relationship between inputs and outputs; seeks to minimize resource costs Doing the thing correctly; refers to the relationship between inputs and outputs; seeks to minimize resource costs Effectiveness Effectiveness Doing the right things; goal attainment Doing the right things; goal attainment

7 © 2008 Prentice Hall, Inc. All rights reserved.1–7 Management Processes PlanningPlanning Includes defining goals, establishing strategy, and developing plans to coordinate activities Includes defining goals, establishing strategy, and developing plans to coordinate activities OrganizingOrganizing 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 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

8 © 2008 Prentice Hall, Inc. All rights reserved.1–8 Management Processes (contd) LeadingLeading Includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts Includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts ControllingControlling The process of monitoring performance, comparing it with goals, and correcting any significant deviations The process of monitoring performance, comparing it with goals, and correcting any significant deviations

9 © 2008 Prentice Hall, Inc. All rights reserved.1–9 Is The Managers Job Universal? Level in the OrganizationLevel in the Organization Do managers manage differently based on where they are in the organization? Do managers manage differently based on where they are in the organization? Profit versus Not-for-profitProfit versus Not-for-profit Is managing in a commercial enterprise different than managing in a non-commercial organization? Is managing in a commercial enterprise different than managing in a non-commercial organization? Size of OrganizationSize of Organization Does the size of an organization affect how managers function in the organization? Does the size of an organization affect how managers function in the organization?

10 © 2008 Prentice Hall, Inc. All rights reserved.1–10 EXHIBIT 1–6Distribution of Time per Activity by Organizational Level Source: 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.

11 © 2008 Prentice Hall, Inc. All rights reserved.1–11 General Skills for Managers Conceptual Skills Political skills Interpersonal skills Technical skills Skills of Successful Managers

12 © 2008 Prentice Hall, Inc. All rights reserved.1–12 Specific Skills for Managers Behaviors related to a managers effectiveness:Behaviors related to a managers effectiveness: Controlling the organizations environment and its resources. Controlling the organizations environment and its resources. Organizing and coordinating. Organizing and coordinating. Handling information. Handling information. Providing for growth and development. Providing for growth and development. Motivating employees and handling conflicts. Motivating employees and handling conflicts. Strategic problem solving. Strategic problem solving.

13 © 2008 Prentice Hall, Inc. All rights reserved.1–13 How Much Importance Does The Marketplace Put On Managers? Good (effective) managerial skills are a scarce commodity.Good (effective) managerial skills are a scarce commodity. Managerial compensation packages are one measure of the value that organizations place on managers. 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 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. Management superstars, like superstar athletes in professional sports, are wooed with signing bonuses, interest-free loans, performance incentive packages, and guaranteed contracts.

14 © 2008 Prentice Hall, Inc. All rights reserved.1–14 Why Study Management? We all have a vested interest in improving the way organizations are managed.We all have a vested interest in improving the way organizations are managed. Better organizations are, in part, the result of good management. Better organizations are, in part, the result of good management. You will eventually either manage or be managed.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. Gaining an understanding of the management process provides the foundation for developing management skills and insight into the behavior of individuals and the organizations.

15 © 2008 Prentice Hall, Inc. All rights reserved.1–15 How Does Management Relate To Other Disciplines? Sociology Psychology Political Science Economics Philosophy Anthropology Management

16 © 2008 Prentice Hall, Inc. All rights reserved.1–16 History Module THE HISTORICAL ROOTS OF CONTEMPORARY MANAGEMENT PRACTICES

17 © 2008 Prentice Hall, Inc. All rights reserved.1–17 The Pre-modern Era Ancient Massive Construction ProjectsAncient Massive Construction Projects Egyptian pyramids Egyptian pyramids Great Wall of China Great Wall of China Michelangelo, the Manager.Michelangelo, the Manager.

18 © 2008 Prentice Hall, Inc. All rights reserved.1–18 Adam Smiths Contribution To The Field Of Management Wrote the Wealth of Nations (1776)Wrote the Wealth of Nations (1776) Advocated the economic advantages that organizations and society would reap from the division of labor: Advocated the economic advantages that organizations and society would reap from the division of labor: Increased productivity by increasing each workers skill and dexterity. Increased productivity by increasing each workers skill and dexterity. Time saved that is commonly lost in changing tasks. Time saved that is commonly lost in changing tasks. The creation of labor-saving inventions and machinery. The creation of labor-saving inventions and machinery.

19 © 2008 Prentice Hall, Inc. All rights reserved.1–19 The Industrial Revolutions Influence On Management Practices Industrial RevolutionIndustrial Revolution Machine power began to substitute for human power Machine power began to substitute for human power Lead to mass production of economical goods Lead to mass production of economical goods Improved and less costly transportation systems became available Improved and less costly transportation systems became available Created larger markets for goods. Created larger markets for goods. Larger organizations developed to serve larger markets Larger organizations developed to serve larger markets Created the need for formalized management practices. Created the need for formalized management practices.

20 © 2008 Prentice Hall, Inc. All rights reserved.1–20 Scientific Management Frederick W. TaylorFrederick W. Taylor The Principles of Scientific Management (1911) 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 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. 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. To motivate workers, he favored incentive wage plans. Separated managerial work from operative work. Separated managerial work from operative work.

21 © 2008 Prentice Hall, Inc. All rights reserved.1–21 Scientific Management Contributors Frank and Lillian GilbrethFrank and Lillian Gilbreth Bricklaying efficiency improvements Bricklaying efficiency improvements Time and motion studies (therbligs) Time and motion studies (therbligs) Henry GanttHenry Gantt Incentive compensation systems Incentive compensation systems Gantt chart for scheduling work operations Gantt chart for scheduling work operations

22 © 2008 Prentice Hall, Inc. All rights reserved.1–22 General Administrative Theory General Administrative TheoristsGeneral Administrative Theorists Developed general theories of what managers do and what constitutes good management practice Developed general theories of what managers do and what constitutes good management practice Henri Fayol (France) Henri Fayol (France) Fourteen Principles of Management: Fundamental or universal principles of management practice Fourteen Principles of Management: Fundamental or universal principles of management practice Max Weber (Germany) Max Weber (Germany) Bureaucracy: Ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships Bureaucracy: Ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships

23 © 2008 Prentice Hall, Inc. All rights reserved.1–23 EXHIBIT HM–2Fayols Fourteen Principles of Management 1.Division of Work 2.Authority 3.Discipline 4.Unity of Command 5.Unity of Direction 6.Subordination of Individual Interests to the General Interest 7.Remuneration 8.Centralization 9.Scalar Chain 10.Order 11.Equity 12.Stability of Tenure of Personnel 13.Initiative 14.Esprit de Corps

24 © 2008 Prentice Hall, Inc. All rights reserved.1–24 EXHIBIT HM–3Webers Ideal Bureaucracy 1.Division of Labor 2.Authority Hierarchy 3.Formal Selection 4.Formal Rules and Regulations 5.Impersonality 6.Career Orientation

25 © 2008 Prentice Hall, Inc. All rights reserved.1–25 Human Resources Approach Robert OwenRobert Owen Scottish businessman and reformer who advocated for better treatment of workers. 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. Claimed that a concern for employees was profitable for management and would relieve human misery. Hugo MunsterbergHugo Munsterberg Created the field of industrial psychologythe scientific study of individuals at work to maximize their productivity and adjustment. Created the field of industrial psychologythe scientific study of individuals at work to maximize their productivity and adjustment. Psychology and Industrial Efficiency (1913) Psychology and Industrial Efficiency (1913)

26 © 2008 Prentice Hall, Inc. All rights reserved.1–26 Human Resources Approach (contd) Mary Parker FollettMary Parker Follett Recognized that organizations could be viewed from the perspective of individual and group behavior. 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. Believed that individual potential could only be released by group association. Chester BarnardChester Barnard Saw organizations as social systems that require human interaction and cooperation. 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). Expressed his views on the acceptance of authority in his book The Functions of the Executive (1938).

27 © 2008 Prentice Hall, Inc. All rights reserved.1–27 Hawthorne Studies A series of studies done during the 1920s and 1930s that provided new insights into group norms and behaviorsA series of studies done during the 1920s and 1930s that provided new insights into group norms and behaviors Hawthorne effect Hawthorne effect Social norms or standards of the group are the key determinants of individual work behavior. 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.Changed the prevalent view of the time that people were no different than machines.

28 © 2008 Prentice Hall, Inc. All rights reserved.1–28 Human Relations Movement Based on a belief in the importance of employee satisfactiona satisfied worker was believed to be a productive worker.Based on a belief in the importance of employee satisfactiona satisfied worker was believed to be a productive worker. Advocates believed in peoples capabilities and were concerned with making management practices more humane.Advocates believed in peoples capabilities and were concerned with making management practices more humane. Dale Carnegie Dale Carnegie Abraham Maslow Abraham Maslow Douglas McGregor Douglas McGregor

29 © 2008 Prentice Hall, Inc. All rights reserved.1–29 The Quantitative Approach Operations Research (Management Science)Operations Research (Management Science) Evolved out of the development of mathematical and statistical solutions to military problems during World War II. 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. Involves the use of statistics, optimization models, information models, and computer simulations to improve management decision making for planning and control.

30 © 2008 Prentice Hall, Inc. All rights reserved.1–30 Social Events That Shaped Management Approaches Classical ApproachClassical Approach The desire for increased efficiency of labor intensive operations The desire for increased efficiency of labor intensive operations Human Resources ApproachHuman Resources Approach The backlash to the overly mechanistic view of employees held by the classicists. The backlash to the overly mechanistic view of employees held by the classicists. The Great Depression. The Great Depression. The Quantitative ApproachesThe Quantitative Approaches World War II armament production World War II armament production


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