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Managerial skills General skills Conceptual skills Interpersonal skills Technical skills Political skills

Managerial skills Specific skills Controlling organizational environment and resources Organizing and coordinating Handling information Providing for growth and development Motivating employees and handling conflicts Strategic problem solving

Management Competencies What are management competencies? What do management competencies different from managerial skills? What is a popular method measuring management competencies?

Are top managers over paid?

Some facts On April 12, 2001, Intel announced that its CEO Craig Barrett earned $3.8 million. In 1996, Lawrence Coss, CEO of Green Tree Financial Corp. earned $102 million. This will take a minimum wage worker in the company over 7,500 years to earn this amount.

Why study management? Organizations need management to improve itself Better understanding of managerial behaviors

Historical Roots of Contemporary Management Practices Objectives Understand the evolution of management theories and practices Become knowledgeable about some key influencers of the contemporary management practices

Classical approach Scientific management Frederick Winslow Taylor General administrative theory Henri Fayol Max Weber

Frederick Taylor ( ) American Engineer Key contributions: Standardization of tasks Divide work between mgt. and workers Cooperate with workers Selection and train workers

Henri Fayol ( ) French Engineer Key contributions: define major functions, e.g. planning, organizing, commanding, coordinating, controlling. 14 principles of mgt. (division of work, authority, order, et.)

Max Weber ( ) German sociologist and political economist Key contributions Division of labor Authority hierarchy Formal selection Rules and regulations Impersonal relationship Career orientation

Summary of classical approach Similarities Management vs. workers Task standardization Paid according to the productivity Worker selection Limited workers’ role in organizations (machine) Differences Overall organizational effectiveness Productivity of operative personnel

Human resources Approach Two key examples Elton Mayo’s Hawthorne studies McGregor’s Theory X and Theory Y

Hawthorne studies (1920s-1930s) Conclusions: Worker satisfaction and performance are basically not economic –depending on working conditions, management encouragement, and effective communications Group factors are important

Douglas McGregor ( ) American social psychologist Theory X Negative view of human behavior People basically immature, need direction and control, lazy, incapable of taking responsibility Theory Y Self-respect (satisfaction of ego) self-development (learn, responsibility) self-control in contrast to external control

Other studies under HRA Improving working conditions (Robert Owen) Studying human behaviors (Hugo Munsterberg) Group activities (Mary Follett) Social interactions (Chester Barnard)

Summary of HRA Active roles played by employees social factors on employees’ performance Organizations as social systems

The quantitative approach world-world II Focus Maximizing resource allocation Improving decision making (payoff- matrices, decision trees, break-even analysis, etc.) Others

Three views of management The process approach (e.g.Henri Fayol) The system approach (e.g. Chester Barnard) The contingent approach