Griffin Ppt01
Transcript of Griffin Ppt01
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Chapter Outline
An Introduction to Management Kinds of Managers
Basic Management Functions
Fundamental Management Skills
The Evolution of Management
Classical Management Perspective Scientific Management & Administrative Theory
The Behavioral Management Perspective
Human Relations and Human Resources Management
The Quantitative Management Perspective
Contemporary Management Thought The Systems Perspective
The Contingency Perspective
Contemporary Management Challenges and Opportunities
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Management
A form of work that involves coordinating an organizationshuman, financial, physical and information resourcestoward accomplishing organizational objectives.
Attainment of organizational goals in an effective andefficient manner through planning, organizing, leading andcontrolling organizational resources.
NOTE THESE CHARACTERISTICS:Goal-driven
Activity is effective and efficient
Uses the four managerial functions
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What is Management?
A set of activitiesplanning and decision making, organizing, leading, andcontrolling
directed at an organizations resources
human, financial, physical, and information
with the aim of achieving organizational goalsin an efficient and effectivemanner.
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Efficiencyversus
Effectiveness
Efficiency:Operating insuch a waythat resourcesare not wasted
Effectiveness:Doing the right
things in theright way at
the right times
SuccessfulManagement
Source: Adapted from Van Fleet, David D., Contemporary Management, Second Edition.
Copyright 1991 by Houghton Mifflin Company. Used with permission.
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What is a Manager?
Someone whose primary responsibility is tocarry out the management process.
Someone who plans and makes decisions,organizes, leads, and controls
human, financial, physical,and information resources.
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Figure 1.1Kinds of Managers by Level and Area
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Kinds of Managers by Level
Top ManagersThe relatively small group of executives who manage
the organizations overall goals, strategy, and
operating policies.
Middle ManagersLargest group of managers in organizations
Implement top managements policies and plans.
Supervise and coordinate lower-level managers activities.
First-Line ManagersManagers who supervise and coordinate the activities
of operating employees.
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Examples of Managers by Area
Marketing Managers
Work in areas related to getting consumers and clients to buy theorganizations products or services.
Financial Managers Deal primarily with an organizations financial resources.
Operations Managers Concerned with creating and managing the systems that create
organizations products and services
Human Resource Managers Involved in planning, recruiting and selection, training and
development, designing compensation and benefit systems,
formulating performance appraisal systems.
Administrative Managers Serve as generalists in functional areas and are not associated
with any particular management specialty.
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Management in Organizations
Inputs from the environment
Human resources
Financial resources
Physical resources
Information resources
Planning
and decision
making
Leading
Organizing
Controlling
Goals attained
Efficiently
Effectively
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The Management Process
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The Functions of Management
PlanningSetting an organizations goals and selecting a course
of action to achieve them.
Organizing
Determining how activities and resources are grouped.
Leading
Getting organizational members to work together toadvance the interests of the organization.
Controlling
Monitoring organizational progress towards goals.
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Planning and Organizing Involve
Planning Environmental scanning and analysis
Developing a vision of the future
Setting long-term organizational objectives
Developing organizational and competitive strategies
Organizing
Defining tasks and duties
Grouping positions into effective structures (departments)
Clarifying authority, responsibility, and reporting relationships Allocating scarce resources (financial, human, physical)
Staffing positions with qualified personnel
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Leading and Controlling Involve
LeadingEffective communicationInspiring others to do their best
Motivation and rewards
Trust and assurance
ControllingClear standards
Monitoring progress and resultsKnowing when and how to intervene
Correcting deviations successfully
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Skills and theManager
FundamentalManagement
Skills
Technical Skills
Interpersonal Skills
Conceptual Skills
Diagnostic Skills
Communication Skills
Decision-Making Skills
Time-Management Skills
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Fundamental Management Skills
TechnicalSkills necessary to accomplish or understand the
specific kind of work being done in an organization.
Interpersonal
The ability to communicate with, understand, andmotivate both individuals and groups.
Conceptual
The managers ability to think in the abstract and to
see the big picture. To perceive how all the parts fit
together.
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3 Primary Managerial Skills (KATZ)
Technical skillsFOCUS IS ON WHAT IS DONE
Specialized knowledge and proficiency
Analytical ability
Works with things, tools and techniques
Interpersonalskills FOCUS IS ON HOW SOMETHING IS DONEWorks with and through people
Effective as a group/team member
Motivates, communicates, & resolves conflicts
Conceptual skills FOCUS IS ON WHY SOMETHING IS DONESees the big picture (how the parts fit together)
Understands the corporation as a whole
Future-orientedthinks strategically
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Fundamental Management Skills (contd)
Diagnostic The managers ability to visualize the most appropriate response
to a situation.
Communication The managers abilities both to convey ideas and information
effectively to others and to receive ideas and informationeffectively from others.
Decision-Making The managers ability to recognize and define problems and
opportunities correctly and then to select an appropriate courseof action to solve the problems and capitalize on opportunities.
Time-Management The managers ability to prioritize work, to work efficiently, and to
delegate appropriately.
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Management Skill Mixes at DifferentOrganizational Levels
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Managerial Activities MINTZBERG
Characterized by variety, fragmentation, and brevity Little time for quiet reflection
Crises are interspersed with trivial events
Must be able to shift gears quickly
Managers perform a great deal of work at an unrelenting
pace.
In one day Processed 36 memos, letters and notes
Attended 8 meetings
Got 11 phone calls
Met with some very unhappy customers
Refereed two internal managerial disputes
Spent an average of 9 minutes on each task during the day
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Key Managerial Roles (Mintzberg)
Key ManagementRoles
InterpersonalRoles
DecisionalRoles
InformationalRoles
1. Figurehead
2. Leader3. Liaison
1. Monitor
2. Disseminator3. Spokesperson
1. Entrepreneur
(Innovator)2. Disturbance
handler3. Resource
Allocator4. Negotiator
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Managerial Success Factors
Personal FactorsAbilities and skillsMotivation
Personality
Situational FactorsNature of the work and environment
Relationships with subordinates and supervisors
Abilities of subordinates
Actions TakenAppropriate for the situation?
LuckBeing in the right place at the right time?
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The Importance of Theory
Most managers develop theories about how to run the organization
Management Models represents the real world and how it functions
Provides a framework for organizing knowledge & a blueprint for action
Helps us organize our knowledge
Tells us what to pay attention to and what to ignore
Helps us to understand why events occur (causal relationships) Summarizes diverse findings and highlights relationships
Gives guidance about how to bring about positive change
Three Types of Management Theories
DESCRIPTIVE 80% +
PREDICTIVE ~ 15%
PRESCRIPTIVE < 5%
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Theories are derived from
Observation and deduction Personal experience
On-site observation
Archival records
Survey research Interviews
Questionnaires
Experimentation
Laboratory
Field
Natural
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Research Designs--Observation
POSITIVES Probe one situation in great detail
A search for clues/causes of problems
Discovers unexpected relationships
Rich in optional explanations
NEGATIVES Selective observation and limited recall
Researcher bias toward the dramatic
Data not easily quantified or recorded Generalizations are difficult (impossible) to make
Time consumingwhen do you stop observing/gathering info?
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Research Designs--Surveys
POSITIVES
Collect data independent of the researcher
Questions/info gathered can be standardized
Allows quantitative analysis of findings
Sampling of populations is possible (census isnt necessary)
NEGATIVES
Objectivity of responses?
Issue of non-responses
Identifies symptoms, not cause-effect links Requires much expertise and time
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Research Designs--Experiments
POSITIVESCan infer cause-effect relationships
Can be repeatedchecked for consistency
NEGATIVESDifficult to control all the variables (precision)
Timing of observations and measurements
Impact of the experiment on work productivity
Subject bias and loss
Generalizability to other organizations
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History of Management Through the Ages
3000 B.C. 2500 B.C.
A Sumerians F Chinese
B Egyptians
C Babylonians
D Greeks
G Venetians
E Romans
2000 B.C. 1500 B.C. 1000 B.C. 500 B.C. A.D. 1500A.D.500 A.D. 1000
A Used written rules and regulations for governance
B Used management practices to construct pyramids
C Used extensive set of laws and policies for governance
D Used different governing systems for cities and state
E Used organized structure for communication and control
F Used extensive organization structure for governmentagencies and the arts
G Used organization design and planning concepts to
control the seas
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Early Management Pioneers
Robert Owen (17711858)British industrialist who was one of the first managersto recognize the importance of human resources andthe welfare of workers.
Charles Babbage (17921871)English mathematician who focused on creating
efficiencies of production through the division of labor,and the application of mathematics
to management problems.
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Classical Management Perspective
Scientific ManagementConcerned with improving the performance ofindividual workers (i.e., efficiency).
Grew out of the industrial revolutions labor shortage
at the beginning of the twentieth century. Administrative Management
A theory that focuses onmanaging the total organization
rather than individuals.
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Scientific Management
Frederick Taylor (18561915)Replaced old methods of how to do work with
scientifically-based work methods.
Eliminated soldiering, where employees deliberately worked
at a pace slower than their capabilities.
Believed in selecting, training, teaching, anddeveloping workers.
Used time studies of jobs, standards planning,
exception rule of management, slide-rules, instructioncards, and piece-work pay systems to control andmotivate employees.
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Steps in Scientific Management
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Frederick Taylor
Work Experiments
Midvale Steel
Simonds Rolling Machine Co.
Bethlehem Steel
Pig Iron
Shoveling
Contributions
Time Study
Standards for Work
Job Specialization
Managerial Planning and Control
Worker Selection and Training
Incentives
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Others in Scientific Management
Henry GanttGantt Charts
Sliding Incentives for Workers
Incentives for Supervisors
Frank & Lillian Gilbreth
Motion Studies (therbligs)
Fatigue Reduction
Suggestion Systems
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Summary of Scientific Management
Assumptions
Productivity is a primary workplace problem
Managers should plan and direct the work
Individuals are economically motivated
Contributions
Scientific or systematic study of work (time and motion) Division of laborManagers vs workers
Setting of work standards (and job descriptions)
Careful selection and training of workers
Use of Incentives
Limitations
Social needs of workers overlooked
Many studies werent very scientific
Loss of self-control alienated workers
Group dynamics were ignored
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Administrative Management Theory
Focuses on managing the whole organizationrather than individuals
Henri Fayol (18411925)
Was first to identify the specific management functions ofplanning, organizing, leading, and controlling.
Lyndall Urwick (18911983)
Integrated the work of previous management theorists.
Max Weber (18641920) His theory of bureaucracy is based on a rational set of
guidelines for structuring organizations.
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Administrative Theory Henry Fayol
Functions of Management
Planning
Organizing
Commanding
Coordinating
Controlling
Principles of Management
Division of Labor (specialization)
Scalar Chain of Command (hierarchy of authority) Unity of Command (only one superior for each worker)
Span of Control (number of subordinates supervised)
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The Ideal Bureaucracy Max Weber
Division of Labor Horizontal specialization
Hierarchy of Authority Vertical specialization
Rules and Procedures
Enforced Technical Competence
Selection and promotion
Impersonal Treatment No favoritism
Centralized Decision-Making Exceptions controlled from the top
Formalization Documentation
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Summary of Administrative Theory
Assumptions
There is an ideal way to structure the organization and administerthe management processes necessary for organizational success
Management skills are generalizable
Contributions
Functions and Principles of management Ideal Bureaucracy
Raised awareness of basic management problems likely to befound in any organization
Limitations
Stressed a one-best-way of organizing and managing
Theories were based on intuition and observation rather thanempirical investigation
Principles are not applicable to organizations which exist inturbulent environments
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The Hawthorne Studies (19271932)
Conducted by Elton Mayo and Fritz Roethlisberger atWestern Electric
Illumination studies Relay Assembly 1
Relay Assembly 2
Incentive Studies Mica-splitting
Bank Wiring Room
Interview program
Discoveries at Hawthorne
Hawthorne EffectCatharsis
Informal Group Influence
H R l ti M t Vi
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Human Relations Management Views
Assumptions Workers are motivated by social relationships and needs
Satisfied workers are the most productive workers
Management needs strong social skills to be successful
Contributions Grew out of the Hawthorne studies
The Hawthorne Effect and Catharsis attention given to workersimpacts their behavior
Influence of the informal group
Emphasized worker needs and motivation
Limitations Happy, satisfied workers arent necessarily productive workers
Economics (money, wages) DOES affect work activity
Boring work isnt less so with friendly supervisor motivation problem
Suspicion that supervisor interest isnt genuine is this manipulation?
Should business be responsible for meeting ALL human needs on thejob?
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The Transition to Human ResourceManagement
Abraham Maslow (1943)
Advanced a theory that employees are motivated by ahierarchy of needs that they seek to satisfy.
Douglas McGregor (1964)
Proposed Theory X and Theory Y concepts ofmanagerial beliefs about people and work.
Frederick Herzberg (1965)Proposed the Two-Factor Theory of motivation
(hygienes and intrinsic factors) which implies that jobenrichment is important.
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Theory X and Theory Y
Theory X Assumptions
People do not like work and try to avoid it, so managers have tocontrol, direct, coerce, and threaten employees to get them towork toward organizational goals.
People prefer to be directed, to avoid responsibility, and to wantsecurity; they have little ambition.
Theory Y Assumptions People do not dislike work; work is a natural part of their lives.
People are internally motivated to reach objectives to which theyare committed. People can be innovative in solving problems.
People are committed to goals to the degree that they receive
rewards when they reach their objectives. People both seek and accept responsibility under favorable
conditions.
People are bright, but under most organizational conditions theirpotentials are underutilized.
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Emergence of Organizational Behavior
A contemporary field focusing on behavioralperspectives on management.Draws on psychology, sociology, anthropology,
economics, and medicine.
Important topics in organizational behaviorresearch:Job satisfaction and job stress
Motivation and leadership
Group dynamics and organizational politics
Interpersonal conflict
The structure and design of organizations
Human Resource Management Views
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Human Resource Management Views
Assumptions
Interesting work motivates intrinsically Workers are trustworthygive them responsibility
The Managers job is to challenge workers to develop theirtalents
Contributions
Theory X and Y Participative decision-making and management
Job Enrichment and Job Redesign
Management by Objectives
More rigorously-tested theories
Limitations Not everyone wants a challenging job
Complexity of individuals makes behavior difficult to predict.
Contemporary research findings are not often communicated topracticing managers in an understandable form.
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Quantitative Management Perspective
Quantitative Management
Emerged during World War II to help the Allied forcesmanage logistical problems.
Focuses on decision making, economic effectiveness,mathematical models, and the use of computers tosolve quantitative problems.
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Quantitative Management, Contd
Management Science
Focuses on the development of representativemathematical models to assist with decisions.
Operations ManagementPractical application of management
science to efficiently manage theproduction and distribution
of products and services.
Quality Management
Statistical improvement models
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Quantitative Management
Contributions Developed sophisticated quantitative techniques to assist in
decision making.
Application of models has increased our awarenessand understanding of complex processes and situations.
Has been useful in the planning and controlling processes.
Limitations
Quantitative management cannot fully explain or predict thebehavior of people in organizations.
Mathematical sophistication may come at the expense of othermanagerial skills.
Quantitative models may require unrealistic or unfoundedassumptions, limiting their general applicability.
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The Systems Perspective of Organizations
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Systems Perspectives for Managers
A system is an interrelated set of elements functioningas a whole
Open system
An organizational system that interacts with its environment.
Closed system
An organizational system that does not interact with itsenvironment.
Subsystems
A system within another system. Their importance is due to theirinterdependence on each other within the organization.
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Synergy and Entropy
Synergy
Subsystems are more successful working together in acooperative and coordinated fashion than working alone.
The whole system (subsystems working together as one system)is more productive and efficient than the sum of its parts.
Entropy A normal process in which an organizational system declines due
to failing to adjust to change in its environment
Entropy can be avoided andthe organization re-energized
through organizational changeand renewal.
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The Contingency Perspective
Universal Perspectives
Include the classical, behavioral, and quantitativeapproaches.
An attempt to identify the one best way to manage
organizations.
The Contingency Perspective
Suggests that each organization is unique.
The appropriate managerial behavior for
managing an organization depends(is contingent) on the currentsituation in the organization.
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The Contingency Perspective (contd)
Problem or Situation
Solution orAction B
Solution orAction A
Solution orAction C
ImportantContingencies
Source: Van Fleet, David D., Contemporary Management, Second Edition.Copyright 1991 by Houghton Mifflin Company. Used with permission.
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An Integrative Frameworkof Management Perspectives
Systems Approach Recognition of internal
interdependencies Recognition of
environmental influences
Contingency Perspective Recognition of the situational
nature of management Response to particular
characteristics of situation
ClassicalManagementPerspectivesMethods for
enhancingefficiency and
facilitating planning,organizing, andcontrolling
BehavioralManagementPerspectivesInsights for moti-
vating performanceand understanding
individual behavior,groups and teams,and leadership
QuantitativeManagementPerspectivesTechniques for
improving decisionmaking, resource
allocation, andoperations
Effective and efficient management
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The Emergence of Modern ManagementPerspectives
How management theory and practice has evolved over time
Contemporary
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ContemporaryManagement Issues and Challenges
An increasingly diverse and globalized workforce
The need to create challenging, motivating, and flexible workenvironments
Acute labor shortages in high-technology job sectors and anoversupply of less-skilled labor
The effects of information technology on how people work
The complex array of new ways of structuring organizations
Increasing globalization of product and service markets
The renewed importance of ethics and social responsibility The use of quality as the basis for competition
The shift to a predominately service-based economy