Management: Definition and Overview

Management Definition: “The effective and efficient attainment of organizational goals through planning, organizing, leading and controlling organizational resources.” In English: In English: “The art of getting things done through people.” “The art of getting things done through people.”

Functions of Management: Plan, Organize, Lead, Control Planning: Select goals and ways to attain them Organizing: Assign responsibility for task accomplishment Leading: Use influence to motivate employees Controlling: Monitor activities and make corrections

Planning: ● Define Organizational Goals ● Define Product or Service ● Market Research and Analysis ● Determine Market Niche ● Create Mission Statement

Organizing: ● Creating the Structure of the Organization ● Determine Business Entity ● Determine Business Model

Leading: ● Communicating with and Motivating Employees ● Team Building ● Create Motivational Tools; Incentive Programs

Controlling: ● Monitor Performance and Take Corrective Action ● Performance Feedback ● Benchmarking ● Reengineering

Management Personality Traits: ● Conceptual – “Big Picture” Driven ● Human – Relational Driven ● Technical – Details Driven

Manager’s Workbook Quiz

Goal Setting and Planning Goal – A Desired Future Result Plan – A Blueprint for Achieving Your Goal

Planning Mission Statement “What is our reason for being?”

Mission Statement “The Mission of Southwest Airlines is Dedication to the Highest Quality of Customer Service, Delivered with a Sense of Warmth, Friendliness, Individual Pride and Company Spirit.”

Planning Mission Statement “What is our reason for being?” Vision Statement “What do we want to become?”

Vision Statement “To Become the Largest Air-Carrier in The United States, in Terms of Passengers Carried.”

Planning Upper Management 1-5 Year Goals Mission Statement “What is our reason for being?” Vision Statement “What do we want to become?” Strategic Planning “How will Org. Achieve Vision”

Strategic Plan To Continue Expansion and Profitability by: 1)Keeping Costs and Fares Low 2)Continuing Superior On-Time Arrival Record 3)Providing Positively Outrageous Service

Planning Upper Management 1-5 Year Goals Middle Management 6-24 Months Mission Statement “What is our reason for being?” Vision Statement “What do we want to become?” Strategic Planning “How will Org. Achieve Vision” Tactical Planning “Activities Needed to Achieve Vision”

Tactical Plan ● Turn Aircraft in 20 Minutes ● Serve Peanuts Instead of Meals ● Fly Into Smaller, Less Congested Cities

Planning Upper Management 1-5 Year Goals Middle Management 6-24 Months Front-Line Managers 1-52 Weeks Mission Statement “What is our reason for being?” Vision Statement “What do we want to become?” Strategic Planning “How will Org. Achieve Vision” Tactical Planning “Activities Needed to Achieve Vision” Operational Planning “Use of Resources to Achieve Vision”

Operational Plan ● Increase On-Time Performance to 90% ● Lower Delayed Baggage to.5% ● Increase Commendation/Complaint Ratio to 4:1

SMART Goal Setting ● Specific – “90% of Arrivals On-Time” ● Measurable – “Based on D.O.T. Statistics” ● Attainable – “We Only an Increase of 1.5%” ● Results Oriented – “To Decrease Boarding Times by 5 Minutes” ● Target Dates – “In the Next 6 Months”

A Brief History of Management

Early Management: ● Egyptians and Mesopotamians ● Forced Labor ● Harsh Repercussions for non-compliance

Classical Management ● Started by the Industrial Revolution ● Geared Towards Manufacturing

Classical Management Max Weber ● Bureaucratic Organizations ● Positional Authority ● Charismatic Authority ● Merit Based Pay and Raises

Classical Management Frederick Taylor ● Shop Management published 1903 ● Believed Workers Ration Their Work ● One Right Way ● Motion Studies – Bethlehem Steel

Classical Management Frank Gilbreth ● “Father of Time Motion Studies” ● Filmed Elemental Motions ● Estimated Time Functions ● Created Ergonomic Tools

Modern Management Henri Fayol ● “Father of Modern Management” ● Wrote General and Industrial Management ● Created Five Functions of a Manager: Plan, Organize, Command, Coordinate, Control Plan, Organize, Command, Coordinate, Control

Modern Management Mary Parker Follett ● Universal Goal ● Universal Principle ● Law of Situation

Hawthorne Studies Harvard Business School ● Hawthorne Effect ● Illumination Study ● Group Dynamics

Chester Barnard ● Wrote Functions of the Executive ● Acceptance Theory ● Zone of Indifference

Abraham Maslow ● Hierarchy of Needs Theory ● All Humans Have same Basic Needs: Physiological, Safety, Social, Esteem, Self- Actualization Physiological, Safety, Social, Esteem, Self- Actualization

Theory X ● Average Human Dislikes Work ● People Must be Coerced, Controlled and Threatened to Work ● Average Human Wants to be Directed

Theory Y ● Average Human Does Not Dislike Work ● People Will Exercise Self-Direction ● Average Human Seeks Responsibility ● Workers have a High Degree of Imagination and Problem Solving Capabilities

Human Resources School ● Focused on Leadership and Motivation ● Employees are Creative and Competent ● Employees Want Meaningful Work ● Employees Want to Participate in Leadership ● Employees are an Untapped Resource

Systems Theory ● All Parts of Organization are Connected ● Seeks Synergy

Contingency View ● Fit Structure of Organization to Outside Events ● Situational Leadership ● Flexible Guidelines for Leaders

Total Quality Management - TQM ● Employee Involvement ● Focus on Customer ● Benchmarking ● Continuous Improvement