1. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Management Chapter 1: Basic Management Principles

2. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 2 Scientific Management Theories  Frederick W. Taylor Little or no concern for workers, tools  Lillian and Frank Gilbreth 18 elements known as therblig  Henry L. Gantt Concerned with the human side  William H. Leffingwell Applied principles to office work

3. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 3 Administrative Management  Focused on what good managers do  Originated by Henri Fayol, General and Administrative Management  Based on a set of 14 key principles  Max Weber described ideal organization as a bureaucracy

4. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 4 Human Relations Management Theory  Hawthorne studies took place in the early 1920s Began as a study of effect of specific factors on productivities Conclusions showed personal attention made the most difference  Maslow’s hierarchy of needs demonstrates human needs  Herzberg’s motivation-hygiene theory of motivation

5. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 5 Behavioral Science Approach  Mid 1920s through today  McGregor’s Theory X and Theory Y as the bases for management theories; classical management is based on X and Y is a more humanistic view  Likert’s leadership model includes leadership styles between the two extremes of X and Y

6. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 6 Management Science  WWII and logistics led to change  Operations research and management  Quantitative approach related to planning and controlling  Systems theory is an extension of the human relations  Contingency theory says no one approach can answer all  Total Quality Management relates to a constant standard Contemporary Management

7. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 7 Planning  Most important and basic management function  Increases likelihood of success  Organizational goals and objectives  Strategy  Standing-use plans and single-use plans  Coordinate and integrate resources

8. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 8 Organizing  Necessary as a result of planning  The process establishes work groups, materials, and activities necessary  Principles include unity of command, chain of command, and span of control  Authority and responsibility  Organization charts are developed as a result of the process

9. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 9 Leading  Use of communication by a manager to guide, motivate, influence, and direct people’s efforts toward achievement  Early approaches were focused on traits of an effective leader  Numerous studies of behavioral approaches have been conducted

10. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 10 Other Approaches  Contingency theories analyze situational differences Fred Fiedler Situational Leadership Theory  Transformational leaders make drastic changes  Transactional leaders clarify roles and task requirements  Self-leadership uses work teams

11. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 11 Effective Leadership  Characteristics of effective leaders  Approaches vary by level  Legitimate power and authority  Coercive power  Reward power  Expert power  Referent power

12. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 12 Theories of Motivation  Early theorists include Abraham Maslow, Douglas McGregor, and Frederick Herzberg  Contemporary theories are broken down into three schools Content theories focus on what causes people to act in certain ways Process theories focus on choosing actions Reinforcement theories look at consequences

13. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 13 Control Process 1. Define and specify critical goals to be measured at all levels, critical step 2. Appropriate standards must be set for goals to be accomplished 3. Compare performance with standards 4. Make corrections related to differences between the standard and actual performance

14. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 14 Communicating  Channels include downward, upward, lateral, and diagonal  Policies are general guidelines and limits; procedures specify behaviors for specific situations  Meetings are a popular means of communicating Meetings should be well-planned and purposeful

15. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 15 Decision Making  Organizational decisions affect the ENTIRE organization  Basic theories include Classical theory dictates how decisions should be made according to ideal standards under perfect conditions Behavioral (administrative) theory uses bounded rationality and satisficing, based on work of Herbert A. Simon  Creative thinking is very important

16. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 16 Logical Reasoning Process 1. Identify and define the problem 2. Gather information about the problem 3. Develop alternative solutions 4. Evaluate alternatives 5. Choose an alternative 6. Implement the decision 7. Monitor the decision

17. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 17 Managing Change  Change is inevitable and necessary, but people’s responses vary greatly  Monitor changes to see what unforeseen responses might arise Choose timing carefully Scope of change should be appropriate  Work with those in the organization that are supporters for change  Maintain open communication

18. CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 18 Dealing with Resistance  Avoid surprises, keep people informed  Stress value of superordinate (overall) goals  Set the stage for change, allow questions  Ensure top management support  Make changes only when necessary  Education and communication before, during, and after the change  Participation, involvement, empowerment