The Management Environment

Module 1

LIS 580: Spring 2006

Instructor- Michael Crandall

July 21, 2005 LIS580- Spring 2006 2

Roadmap

• Why do we care?

• What do managers do?

• Where did management come from?

• What kinds of management are there?

• What’s happening today?

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Why Do We Care?

• “… modern society has become a society of organizations… In a society of organizations, managing becomes a social function and management the constitutive, the determining, the differential organ of society.”

Drucker, 1986

• In other words, you’re in it whether you like it or not, so better to understand how it works in order to use it to your advantage

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Organization Defined

• Organization– A group of people with formally assigned

roles who work together to achieve the stated goals of the group.

– Characteristics:• Common purpose/goals• Organizational structure

G.Dessler, 2003

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Management Defined

• Manager– A person who plans, organizes, leads, and controls

the work of others so that the organization achieves its goals.

• Is responsible for contribution.• Gets things done through the efforts of other people.• Is skilled at the management process.

• Management Process– Refers to the manager’s four basic functions of

planning, organizing, leading, and controlling.

G.Dessler, 2003

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Mintzberg’s Managerial Roles

• Figurehead

• Leader

• Liaison

• Spokesperson

• Negotiator

G.Dessler, 2003

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The Manager as Innovator

• The Entrepreneurial Process– Getting employees to think of themselves as

entrepreneurs.

• The Competence-Building Process– Working hard to create an environment that lets

employees really take charge.

• The Renewal Process– Guarding against complacency by encouraging

employees to question why they do things as they do—and if they might do them differently.

G.Dessler, 2003

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Types of Managers

FIGURE 1–1

G.Dessler, 2003

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The Managerial Skills

• Technical Skills– The need to know how to plan, organize, lead, and

control.

• Interpersonal Skills– An understanding of human behavior and group

processes, and the feelings, attitudes, and motives of others, and ability to communicate clearly and persuasively.

• Conceptual Skills– Good judgment, creativity, and the ability to see

the “big picture” when confronted with information.G.Dessler, 2003

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The Foundations Of Modern Management

• The Classical and Scientific School– Frederick Winslow Taylor and Scientific

Management1. The “one best way”

2. Scientific selection of personnel

3. Financial incentives

4. Functional foremanship

G.Dessler, 2003

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The Foundations Of Modern Management (cont’d)

• The Classical and Scientific School (cont’d)– Frank and Lillian Gilbreth and Motion Study

• Analyzed physical motion and work processes to improve worker efficiency.

– Henri Fayol and the Principles of Management• Defined the functions of management• Published “General and Industrial Management”• Advocated “chain of command”

G.Dessler, 2003

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The Foundations Of Modern Management (cont’d)

• The Classical and Scientific School (cont’d)– Max Weber and the Bureaucracy

• A well-defined hierarchy of authority• A clear division of work• A system of rules covering the rights and duties of

position incumbents• A system of procedures for dealing with the work

situation• Impersonality of interpersonal relationships• Selection for employment, and promotion based on

technical competence

G.Dessler, 2003

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The Foundations Of Modern Management (cont’d)

• The Behavioral School– The Hawthorne Studies

• Researchers found that it was the social situations of the workers, not just the working conditions, that influenced behavior at work.

– The Human Relations Movement• Emphasized that workers were not just “givens”

in the system. Workers have needs and desires that organizations have to accommodate.

G.Dessler, 2003

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Douglas McGregor: Theory X and Theory Y

• Theory X– Most people dislike work and responsibility

and prefer to be directed.– They are motivated not by the desire to do

a good job, but simply by financial incentives.

– Most people must be closely supervised, controlled, and coerced into achieving organizational objectives.

G.Dessler, 2003

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Douglas McGregor: Theory X and Theory Y (cont’d)

• Theory Y– People wanted to work hard.– People could enjoy work.– People could exercise substantial self-

control.– Managers could trust employees if

managers treated them right.

G.Dessler, 2003

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The Foundations Of Modern Management (cont’d)

• The Behavioral School (cont’d)– Rensis Likert and the Employee-Centered

Organization• Less effective organizations have a “job-

centered” focus: specialized jobs, emphasis on efficiency, and close supervision of workers.

• Effective “employee-centered” organizations build effective work groups with high performance goals.”

• Participation is an important approach employed by high-producing managers.

G.Dessler, 2003

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Bridging the Eras: The Administrative School

• Chester Barnard’s “Zone of Indifference”– A range of orders that a worker will willingly accept

without consciously questioning their legitimacy.• Managers have to provide sufficient inducements (and

not just financial ones) to make each employee’s zone of indifference wider.

• Herbert Simon and Managerial Influence– Use the classicists’ command and control

approach.• Foster employee self-control by providing better training,

encouraging participative leadership, and developing commitment and loyalty.

G.Dessler, 2003

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The Quantitative/Management Science School

• The Management Science Approach – Operations Research/ Management Science

• Seeks optimal solutions to management problems through research and the use of scientific analysis and tools.

– The Systems Approach• The view that an organization exists as a set of

interrelated subsystems that all contribute internally to the organization’s purpose and success while interacting with the organization’s external environment.

G.Dessler, 2003

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The Situational/Contingency School

• Contingency View of Management.– The organization and how its managers

should manage it are contingent on the company’s environment and on technology.

– Tom Burns and G. M. Stalker• Mechanistic organizations• Organic organizations

G.Dessler, 2003

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Kurtz, C. F.; Snowden, D. J. “The new dynamics of strategy: Sense-making in a complex and complicated world”. IBM Systems Management Journal. Volume 42, Number 3, 2003. http://www.research.ibm.com/journal/sj/423/kurtz.html

Multi-Ontology Sense Making

• David Snowden proposes that we look at the problem through multiple lenses

• Clearly more complex space than most management systems take into account

From Pollard, D. How to Save the World. March 24, 2005. http://blogs.salon.com/0002007/2005/03/24.html

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Fundamental Changes Facing Managers

FIGURE 1–2

G.Dessler, 2003

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Two Books to Read

• Reich, Robert B. The Work of Nations: Preparing Ourselves for 21st Century Capitalism. Vintage, 1992. http://www.amazon.com/exec/obidos/tg/detail/-/0679736158

• Friedman, Thomas L. The World Is Flat: A Brief History of the Twenty-first Century. Farrar, Straus and Giroux , 2005.

http://www.amazon.com/exec/obidos/tg/detail/-/0374292884