1. Introduction to Management

2. Definition of Management  The attainment of organizational goals in an effective and efficient manner through:  Planning  Organizing  Leading  Controlling organizational resources

3. Today’s Organization and Their Challenges  Technology  New business models  Strive to remain competitive in the global arena  Deal with uncertain environments  Cutbacks  Massive worldwide economic, political, and social shifts

4. Revolution in Management, the New Leader  Ask to do more with less  To engage whole employees  To see change rather than stability as the nature of things  Create vision and cultural values promoting a collaborative workplace

5. Two Key Ideas in Defining Management  The four functions Planning Organizing Leading Controlling  Attainment of organizational goals in an effective & efficient manner CISCO

6. Terms for Understanding Organizational Performance  Organization…social entity that is goal directed and deliberately structured  Goal directed…designed to achieve some outcome  Deliberately structured…tasks are divided and responsibility for their performance is assigned  Effectiveness…degree to which goals are achieved  Efficiency…use of minimal resources to produce the desired volume of output

7. Management Functions Planning Leading Resources Controlling Organizing Performance Human Financial Raw Materials Technological Information Attain goals Products Services Efficiency Effectiveness Use influence to motivate employees Select goals and ways to attain them Assign responsibility for task accomplishment Monitor activities and make corrections

8. Management Skills Technical Skills Human SkillsConceptual Skills Management Level Top Managers Middle Managers First-Line Managers Non-managers (Personnel)

9. Management Levels SOURCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, “Chutes and Ladders: Growing the General Manager,” Sloan Management Review (Spring 1989), 27-37.

10. Horizontal Differences  Functional managers, responsible for departments that perform a single functional task  General managers, responsible for several departments that perform different functions

11. Functional Departments  Advertising  Sales  Finance  Human resources  Manufacturing  Accounting

12. A Look at Managerial Activity  Provides for variety  Is fragmented  Represented by brevity  Performs a great deal of work quickly

13. Ten Manager Roles Three Conceptual Categories InformationalInterpersonalDecisional Monitor Disseminator Spokesperso n Figurehead Leader Liaison Entrepreneur Disturbance handler Resource allocator Negotiator

14. Supervisory Managers Middle Managers Top Managers Hierarchical Levels Leader role Liaison roleHigh Med Low Importance

15. Centered around information and ideas Work is free-flowing and flexible Work is often virtual Characteristics of the New Workplace

16. Today’s Managers  Embrace ambiguity  Create organizations that are:  Fast  Flexible  Adaptable  Relationship-oriented  Focus on:  Leadership  Staying connected to employees and customers  Team building  Developing a learning organization

17. Influences Having an Impact on Organizations & Management  Social Forces … values, needs, and standards of behavior  Political Forces … influence of political and legal institutions on people & organizations  Economic Forces … forces that affect the availability, production, & distribution of a society’s resources

18. Management Perspectives Over Time 1930 Humanistic Perspective 1990 1890 Classical 1940 1950 2000 Systems Theory 2000 2010 The Technology-Driven Workplace 1990 2010 The Learning Organization 1970 Contingency Views 2000 1980 Total Quality Management 2000 1940 Management Science Perspective 1990

19. Classical Perspective Three Sub-Fields  Scientific  Bureaucratic Organizations  Administrative Principles

20. Characteristics of Scientific Management General Approach  Developed standard method for performing each job.  Selected workers with appropriate abilities for each job.  Trained workers in standard method.  Supported workers by planning work and eliminating interruptions.  Provided wage incentives to workers for increased output. Contributions  Demonstrated the importance of compensation for performance.  Initiated the careful study of tasks and jobs.  Demonstrated the importance of personnel and their training. Criticisms  Did not appreciate social context of work and higher needs of workers.  Did not acknowledge variance among individuals.  Tended to regard workers as uninformed and ignored their ideas.

21. Bureaucracy Organizations  Labor is divided with clear definitions of authority and responsibility.  Positions are in hierarchy of authority.  Personnel are selected and promoted based on qualifications.  Management is separate from the ownership.  Rules and procedures ensure reliable, & predictable behavior.  Rules are impersonal and uniformly applied. SOURCE: Adapted from Max Weber, The Theory of Social and Economic Organizations, ed. and trans. A.M. Henderson and Talcott Parsons (New York: Free Press, 1947), 328-337.

22. Administrative Principles  Contributors to this approach, Henri Fayol, Mary Parker, and Chester I. Barnard  Focused on organization rather than the individual  Delineated the management functions of planning, organizing, commanding, coordinating, and controlling

23. Henri Fayol’s 14 Points  Division of labor  Authority  Discipline  Unity of command  Unity of direction  Subordination of individual interest  Remuneration  Division of labor  Authority  Discipline  Unity of command  Unity of direction  Subordination of individual interest  Remuneration  Centralization  Scalar chain  Order  Equity  Stability and tenure of staff  Initiative  Esprit de corps  Centralization  Scalar chain  Order  Equity  Stability and tenure of staff  Initiative  Esprit de corps

24. Division of work: Division of work and specialization produces more and better work with the same effort. · Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager has official authority because of her position, as well as personal authority based on individual personality, intelligence, and experience. Authority creates responsibility. · Discipline: Obedience and respect within an organization are absolutely essential. Good discipline requires managers to apply sanctions whenever violations become apparent. ·

25. Unity of command: An employee should receive orders from only one superior. · Unity of direction: Organizational activities must have one central authority and one plan of action. · Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization. · Remuneration of personnel: Salaries - the price of services rendered by employees - should be fair and provide satisfaction both to the employee and employer. · Centralization: The objective of centralization is the best utilization of personnel. The degree of centralization varies according to the dynamics of each organization.

26.  Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks.  · Order: Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity.  · Equity: In organizations, equity is a combination of kindliness and justice. Both equity and equality of treatment should be considered when dealing with employees.  ·

27.  Stability of tenure of personnel: To attain the maximum productivity of personnel, a stable work force is needed.  · Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator. Zeal, energy, and initiative are desired at all levels of the organizational ladder.  · Esprit de corps: Teamwork is fundamentally important to an organization. Work teams and extensive face-to-face verbal communication encourages teamwork.

28. Hawthorne Studies  Ten year study  Four experimental & three control groups  Five different tests  Test pointed to factors other than illumination for productivity  1st Relay Assembly Test Room experiment, was controversial, test lasted 6 years  Interpretation, money not cause of increased output  Factor that increased output, Human Relations

29. Physiological Safety Belonging Esteem Self-actualization Abraham Maslow’s Hierarchy Based on needs satisfaction Organizational Examples Challenging Job Job Title Friends Retirement Plan Wages General Examples Self-fulfillment Status Friendship Stability Shelter

30.  People are lazy  People lack ambition  Dislike responsibility  People are self-centered  People don’t like change  People are energetic  People want to make contributions  People do have ambition  People will seek responsibility Douglas McGregor Theory X & Y Theory X Theory Y

31. Behavioral Sciences Approach  Develops theories about human behavior based on scientific methods & study  Sub-field of the Humanistic Perspective  Applies social science in an organizational context  In understanding employees draws from economics, psychology, sociology

32. Management Science Perspective  Emerged after WW II  Distinguished for its application of mathematics, statistics to problem solving  Operations Research emerged  Operations Management emerged  Information Technology

33. Three Contemporary Trends  Systems Theory  Contingency View  Total Quality Management (TQM) Managers need certain core skills and basic understanding of management and leadership if they plan to operate within a TQM System. This site has several core modules.

34. Systems View

35. Contingency View

36. Elements of a Learning Organization Learning Organization Open Information Empowered Employees Team-Based Structure

37. Types of E-Commerce Business-to-Consumer B2C Selling Products and Services Online Business-to-Business B2B Transactions Between Organizations Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries

38. Organizational Environment  Includes all elements existing outside the boundary of the organization that have the potential to affect the organization

39. Two Layers of the External Environment  Task environment  General environment

40. Organizational Environment Management Employees Culture Internal Environment Suppliers Competitors Customers Labor Market Legal/Political Economic Technological Sociocultural International General Environment Task Environment

41. Importance of International Dimension  Provides New:  Customers  Competitors  Suppliers  Shapes:  Social trends  Technological trends  Economic trends

42. Socio-Cultural Dimension  Important characteristics are geographical and population density, age, and education levels.  Key demographic trends in the United States:  Hispanics will make up nearly a quarter of the U.S. population by the year 2050.  Population and the workforce continue to age with the baby boomers.  The single father is the fastest growing living arrangement.  The U.S. will continue to receive large numbers of immigrants especially from Asia and Mexico.

43. Organization’s Economic Environment Consumer purchasing power Unemployment rate Interest rates

44. External Environment and Uncertainty Number of Factors in Organization Environment Adapt to Environment High Uncertainty Low Uncertainty HighLow High Rate of Change in Factors in Environment

45. Adopting to the Environment Boundary-spanning Inter-organizational partnerships Mergers or joint ventures

46. Levels of Corporate Culture Visible 1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies 2. Expressed values, such as “The Penney Idea,” “The HP Way” 3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted” Invisible Culture that can be seen at the surface level Deeper values and shared understandings held by organization members

47. Visible Manifestations  Symbols  Stories  Heroes  Slogans  Ceremonies

48. Corporate Cultures Adaptive CultureUnadaptive Culture Visible Behavior Expressed Values Managers pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks. Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments. Managers care deeply about customers, stockholders, and employees. They strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy). Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk-reducing management process much more highly than leadership initiatives. Source: John P. Kotter and Jmaes L. Heskett, Corporate Culture and Performance (New York, The Free Press, 1992), 51.

49. Four Types of Corporate Culture Adaptability Culture Achievement Culture Bureaucratic Culture Clan Culture External Internal FlexibilityStability Strategic Focus Needs of the Environment

50. Influencing & Cultural Leadership  Need to articulate a vision that employees can believe in and get excited about  Heeds the day to day activities that reinforce the cultural vision