Managers & Management Week 1 FS10321: Business Management

Let’s see your schedules!

Why are you here? What do you want to do?

FS10321: Business Management4 Why am I here? Background in Business –“Hit the ground running” Leadership Teamwork

FS10321: Business Management5 Instructor Instructor: Max Minkoff Teaching style: Interactive! How to contact me: Website: Other availability: Immediately after class

FS10321: Business Management6 Course Content Teaching Strategies –Interactive Class Discussion –PowerPoint w/printed notes –Team exercises Textbook: Fundamentals of Management –Robbins & Decenzo

Chapter 1 Managers and Management

FS10321: Business Management8 Common Characteristics of Organizations

FS10321: Business Management9 Organizational Levels

FS10321: Business Management10 Management Process Planning –Defining goals –Establishing strategy –Developing plans to coordinate activities Organizing –Tasks to be done –Who is to do them –How tasks are to be grouped –Who reports to whom –Where decisions are to be made

FS10321: Business Management11 Management Process Leading –Motivating employees –Directing others –Selecting the most effective communication channel –Resolving conflicts Controlling –Monitoring performance –Comparing it with goals –Correcting any significant deviations

FS10321: Business Management12 Management Process Activities EXHIBIT 1.4 Management process: planning, organizing, leading, and controlling

FS10321: Business Management13 Management Charter Initiative Competencies for Middle Managers 1.Initiate and implement change and improvement Services, products, and systems 2.Monitor, maintain, improve service/product delivery 3.Monitor and control the use of resources 4.Secure effective resource allocation 5.Recruit and select personnel

FS10321: Business Management14 Management Charter Initiative Competencies for Middle Managers 2 6.Develop teams, individuals, self Enhance performance 7.Plan, allocate, & evaluate work 8.Create, maintain, & enhance relationships 9.Seek, evaluate, & organize information 10.Exchange information Solve problems Make decisions

FS10321: Business Management15 Is The Manager’s Job Universal? Level in the organization Profit versus not-for-profit Size of organization Management concepts and national borders

FS10321: Business Management16

FS10321: Business Management17 The Industrial Revolution’s Influence On Management Practices Industrial revolution –Machine power began to substitute for human power Lead to mass production of economical goods –Improved and less costly transportation systems Created larger markets for goods. –Larger organizations developed to serve larger markets Created the need for formalized management practices.

FS10321: Business Management18 Scientific Management Frederick W. Taylor –The Principles of Scientific Management (1911) Scientific method -> “one best way” for a job to be done –Increased efficiency from Selecting the right people for the job Training them to do it precisely in the one best way. –Favored incentive wage plans to motivate workers –Separated managerial work from operative work

FS10321: Business Management19 Scientific Management Contributors Frank and Lillian Gilbreth (1910s) –Bricklaying efficiency improvements –Time and motion studies Henry Gantt (1910s) –Incentive compensation systems –Gantt chart for scheduling work operations

FS10321: Business Management20 Human Resources Approach Robert Owen (early 1800’s!) –Concern for employees was profitable Would relieve human misery Hugo Munsterberg (1913) –Created the field of industrial psychology Scientific study of individuals at work Maximize productivity and adjustment

FS10321: Business Management21 Human Resources Approach Mary Parker Follett (1920s) –Organizations could be viewed from the perspective of individual and group behavior. Chester Barnard –Organizations as social systems Require human cooperation. –The Functions of the Executive (1938).

FS10321: Business Management22 Elton Mayo’s Productivity Hawthorne Works, Western Electric 6 women chosen Changes were made to work environment Productivity was measured Initial conditions: –48 hour week –Including Saturdays Observers put in place Explained experiments to participants Solicited feedback along the way – No rest pauses – 2,400 relays/week each.

FS10321: Business Management23 Here’s what happened… They were then put on piece-work for eight weeks. Output went up Two five minute rest pauses, morning and afternoon, were introduced for five weeks. Output went up once more The rest pauses were lengthened to ten minutes each. Output went up sharply. Six five minute pauses were introduced, and the girls complained that their work rhythm was broken by the frequent pauses. Output fell slightly Return to the two rest pauses, the first with a hot meal supplied by the Company free of charge. Output went up

FS10321: Business Management24 Continued… The girls were dismissed at 4.30 p.m. instead of 5.00 p.m. Output went up They were dismissed at 4.00 p.m. Output remained the same Finally, all the improvements were taken away, and the girls went back to the physical conditions of the beginning of the experiment: work on Saturday, 48 hour week, no rest pauses, no piece work and no free meal. This state of affairs lasted for a period of 12 weeks. Output was the highest ever recorded averaging 3000 relays a week.

FS10321: Business Management25 Why? Sense of belonging developed A social atmosphere Attention paid Less pressure Ability to develop individual work methods

FS10321: Business Management26 Course Outline

FS10321: Business Management27 Evaluation/Technology Grading –40%: Class Participation (including attendance) –20%: Midterm Exam –20%: Final Exam –20%: Team Project Technology Needed: –Word Processing –PowerPoint –Internet

FS10321: Business Management28 Attendance Policy Two absences = one full grade drop A third absence = an additional grade drop Four absences = Failure NOTE: –There are NO excused absences. –2 lates and/or early departures = 1 absence. I WILL FAIL YOU IF I HAVE TO!

FS10321: Business Management29 Cellphone Policy OK if it rings –I don’t expect you to remember to turn it off BUT! –Don’t answer your phone in class! –Don’t step into the hall to talk Also –No text messaging

Chapter 3 Planning

FS10321: Business Management31 What is Planning? Define goals Establish an overall strategy Develop comprehensive set of tasks I.e. concerned with ends and means Why must we plan? –Because the environment is always changing

FS10321: Business Management32 Why Plan? Provide direction –Coordinates efforts –Helps everyone understand his/her role Facilitates teamwork Reduce the impact of change –Anticipate and consider change –Develop appropriate responses Minimize waste and redundancy Set standards –Facilitates control

FS10321: Business Management33 Why Not Plan (According to Critics) May create rigidity –Harder to react to big changes May reduce creative thinking –Managers may feel the need to stick to the plan –Esp. with MBO’s (Management by Objective) –Current success may lead to future failure Focuses on the present –Discourages (potentially beneficial) risks –Discourages being proactive

FS10321: Business Management34 So Should We Plan? Most companies that plan perform better For those than don’t, usually environmental –E.g. government regulation changing things Best plans are based on quality, not quantity

FS10321: Business Management35 Types of Plans: Breadth Strategic –Broad –Applies to entire organization –Focus on overall goals –General –Forms objectives Tactical (Operational) –Provides details –Narrower –Shorter time frame –How objectives will be met

FS10321: Business Management36 Types of Plans: Time Frame Short-term –Less than one year –Better when more uncertainty –More flexibility Long-term –Five years or more –Required if long-term commitment is necessary

Types of Plans: Specificity Directional – Clearly defined objectives – No ambiguity No misunderstandings – May be difficult/impossible – General goals – Allows flexibility – Less clear Specific

FS10321: Business Management38 Types of Plans: Frequency of Use Single-use –Meets needs of a particular situation Standing –Ongoing –Provide guidance for repeated actions –When process is always the same