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Chapter1ManagersandManagementPowerPointPresentationbyCharlieCookCopyright©2004PrenticeHall,Inc.Allrightsreserved.\nLEARNINGOUTCOMESAfterreadingthischapter,Iwillbeableto:Describethedifferencebetweenmanagersandoperativeemployees.Explainwhatismeantbythetermmanagement.Differentiatebetweenefficiencyandeffectiveness.Describethefourprimaryprocessesofmanagement.Classifythethreelevelsofmanagersandidentifytheprimaryresponsibilityofeachgroup.2Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nLEARNINGOUTCOMES(cont’d)Afterreadingthischapter,Iwillbeableto:Summarizetheessentialrolesperformedbymanagers.Discusswhetherthemanager’sjobisgeneric.Describethefourgeneralskillsnecessaryforbecomingasuccessfulmanager.Describethevalueofstudyingmanagement.Identifytherelevanceofpopularhumanitiesandsocialsciencecoursestomanagementpractices.3Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nOrganizationsOrganizationAsystematicarrangementofpeoplebroughttogethertoaccomplishsomespecificpurpose;appliestoallorganizations—for-profitaswellasnot-for-profitorganizations.Wheremanagerswork(manage)CommoncharacteristicsGoalsStructurePeople4Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nCommonCharacteristicsofOrganizationsEXHIBIT1.15Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nPeopleDifferencesOperativesPeoplewhoworkdirectlyonajobortaskandhavenoresponsibilityforoverseeingtheworkofothersManagersIndividualsinanorganizationwhodirecttheactivitiesofothers6Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nOrganizationalLevelsEXHIBIT1.27Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nIdentifyingManagersFirst-linemanagersSupervisorsresponsiblefordirectingtheday-to-dayactivitiesofoperativeemployeesMiddlemanagersIndividualsatlevelsofmanagementbetweenthefirst-linemanagerandtopmanagementTopmanagersIndividualswhoareresponsibleformakingdecisionsaboutthedirectionoftheorganizationandestablishingpoliciesthataffectallorganizationalmembers8Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nManagementDefinedManagementTheprocessofgettingthingsdone,effectivelyandefficiently,throughandwithotherpeopleEfficiencyMeansdoingthethingcorrectly;referstotherelationshipbetweeninputsandoutputs;seekstominimizeresourcecostsEffectivenessMeansdoingtherightthings;goalattainment9Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nEfficiencyandEffectivenessEXHIBIT1.310Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nManagementProcessActivitiesEXHIBIT1.4Managementprocess:planning,organizing,leading,andcontrolling11Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nManagementProcessPlanningIncludesdefininggoals,establishingstrategy,anddevelopingplanstocoordinateactivitiesOrganizingIncludesdeterminingwhattaskstobedone,whoistodothem,howthetasksaretobegrouped,whoreportstowhom,andwheredecisionsaretobemade12Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nManagementProcessLeadingIncludesmotivatingemployees,directingtheactivitiesofothers,selectingthemosteffectivecommunicationchannel,andresolvingconflictsControllingTheprocessofmonitoringperformance,comparingitwithgoals,andcorrectinganysignificantdeviations13Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nMintzberg’sManagerialRolesInterpersonalFigureheadLeaderLiaisonInformationalMonitorDisseminatorSpokespersonDecisionalEntrepreneurDisturbancehanderResourceallocatorNegotiatorEXHIBIT1.5Source:AdaptedfromTheNatureofManagerialWork(paperback)byH.Mintzberg,Table2,pp.92–93.Copyright©1973AddisonWesleyLongman.ReprintedbypermissionofAddisonWesleyLongman.14Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nIsTheManager’sJobUniversal?LevelintheorganizationDomanagersmanagedifferentlybasedonwheretheyareintheorganization?Profitversusnot-for-profitIsmanaginginacommercialenterprisedifferentthanmanaginginanon-commercialorganization?SizeoforganizationDoesthesizeofanorganizationaffecthowmanagersfunctionintheorganization?ManagementconceptsandnationalbordersIsmanagementthesameinalleconomic,cultural,socialandpoliticalsystems?15Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nDistributionofTimeperActivitybyOrganizationalLevelEXHIBIT1.6Source:AdaptedfromT.A.Mahoney,T.H.Jerdee,andS.J.Carroll,“TheJob(s)ofManagement,”IndustrialRelations4,No.2(1965),p.103.16Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nImportanceofManagerialRolesinSmallandLargeBusinessesEXHIBIT1.7Source:AdaptedfromJ.G.P.Paolillo,“TheManager’sSelfAssessmentsofManagerialRoles:Smallvs.LargeFirms,”AmericanJournalsofSmallBusiness,January–March1984,pp.61–62.17Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nGeneralSkillsforManagersConceptualskillsAmanager’smentalabilitytocoordinatealloftheorganization’sinterestsandactivitiesInterpersonalskillsAmanager’sabilitytoworkwith,understand,mentor,andmotivateothers,bothindividuallyandingroupsTechnicalskillsAmanager’sabilitytousethetools,procedures,andtechniquesofaspecializedfieldPoliticalskillsAmanager’sabilitytobuildapowerbaseandestablishtherightconnections18Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nSpecificSkillsforManagersBehaviorsrelatedtoamanager’seffectiveness:Controllingtheorganization’senvironmentanditsresources.Organizingandcoordinating.Handlinginformation.Providingforgrowthanddevelopment.Motivatingemployeesandhandlingconflicts.Strategicproblemsolving.19Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nManagementCharterInitiativeCompetenciesforMiddleManagersInitiateandimplementchangeandimprovementinservices,products,andsystemsMonitormaintain,andimproveserviceandproductdeliveryMonitorandcontroltheuseofresourcesSecureeffectiveresourceallocationforactivitiesandprojectsRecruitandselectpersonnelDevelopteams,individuals,andselftoenhanceperformancePlan,allocate,andevaluateworkcarriedoutbyteams,individualsandselfCreate,maintain,andenhanceeffectiveworkingrelationshipsSeek,evaluate,andorganizeinformationforactionExchangeinformationtosolveproblemsandmakedecisionsEXHIBIT1.820Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nHowMuchImportanceDoesTheMarketplacePutOnManagers?Good(effective)managerialskillsareascarcecommodity.Managerialcompensationpackagesareonemeasureofthevaluethatorganizationsplaceonthem.Managementcompensationreflectsthemarketforcesofsupplyanddemand.Managementsuperstars,likesuperstarathletesinprofessionalsports,arewooedwithsigningbonuses,interest-freeloans,performanceincentivepackages,andguaranteedcontracts.21Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nWhyStudyManagement?Weallhaveavestedinterestinimprovingthewayorganizationsaremanaged.Betterorganizationsare,inpart,theresultofgoodmanagement.YouwilleventuallyeithermanageorbemanagedGaininganunderstandingofthemanagementprocessprovidesthefoundationfordevelopingmanagementskillsandinsightintothebehaviorofindividualsandtheorganizations.22Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nHowDoesManagementRelateToOtherDisciplines?AnthropologyEconomicsPhilosophyPoliticalSciencePsychologySociologyManagement23Copyright©2004PrenticeHall,Inc.Allrightsreserved.\n24Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nThePre-modernEraAncientmassiveconstructionprojectsEgyptianpyramidsGreatWallofChinaMichelangelothemanager25Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nAdamSmith’sContributionToTheFieldOfManagementWrotetheWealthofNations(1776)Advocatedtheeconomicadvantagesthatorganizationsandsocietywouldreapfromthedivisionoflabor:Increasedproductivitybyincreasingeachworker’sskillanddexterity.Timesavedthatiscommonlylostinchangingtasks.Thecreationoflabor-savinginventionsandmachinery.26Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nTheIndustrialRevolution’sInfluenceOnManagementPracticesIndustrialrevolutionMachinepowerbegantosubstituteforhumanpowerLeadtomassproductionofeconomicalgoodsImprovedandlesscostlytransportationsystemsbecameavailableCreatedlargermarketsforgoods.LargerorganizationsdevelopedtoservelargermarketsCreatedtheneedforformalizedmanagementpractices.27Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nClassicalContributionsClassicalapproachThetermusedtodescribethehypothesesofthescientificmanagementtheoristsandthegeneraladministrativetheorists.ScientificmanagementtheoristsFredrickW.Taylor,FrankandLillianGilbreth,andHenryGanttGeneraladministrativetheoristsHenriFayolandMaxWeber28Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nScientificManagementFrederickW.TaylorThePrinciplesofScientificManagement(1911)Advocatedtheuseofthescientificmethodtodefinethe“onebestway”forajobtobedoneBelievedthatincreasedefficiencycouldbeachievedbyselectingtherightpeopleforthejobandtrainingthemtodoitpreciselyintheonebestway.Tomotivateworkers,hefavoredincentivewageplans.Separatedmanagerialworkfromoperativework.29Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nTaylor’sFourPrinciplesofManagementDevelopascienceforeachelementofanindividual’swork,whichreplacestheoldrule-of-thumbmethod.Scientificallyselectandthentrain,teach,anddeveloptheworker.(Previously,workerschosetheirownworkandtrainedthemselvesasbesttheycould.)Heartilycooperatewiththeworkerssoastoensurethatallworkisdoneinaccordancewiththeprinciplesofthesciencethathasbeendeveloped.Divideworkandresponsibilityalmostequallybetweenmanagementandworkers.Managementtakesoverallworkforwhichitisbetterfittedthantheworkers.(Previously,almostalltheworkandthegreaterpartoftheresponsibilitywerethrownupontheworkers).EXHIBITHM–130Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nScientificManagementContributorsFrankandLillianGilbrethBricklayingefficiencyimprovementsTimeandmotionstudies(therbligs)HenryGanttIncentivecompensationsystemsGanttchartforschedulingworkoperations31Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nAdministrativeManagementGeneraladministrativetheoristsWriterswhodevelopedgeneraltheoriesofwhatmanagersdoandwhatconstitutesgoodmanagementpracticeHenriFayol(France)FourteenPrinciplesofManagement:FundamentaloruniversalprinciplesofmanagementpracticeMaxWeber(Germany)Bureaucracy:Idealtypeoforganizationcharacterizedbydivisionoflabor,aclearlydefinedhierarchy,detailedrulesandregulations,andimpersonalrelationships32Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nFayol’sFourteenPrinciplesofManagementDivisionofworkAuthorityDisciplineUnityofcommandUnityofdirectionSubordinationoftheindividualRemunerationCentralizationScalarchainOrderEquityStabilityoftenureofpersonnelInitiativeEspritdecorpsEXHIBITHM–233Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nWeber’sIdealBureaucracyDivisionofLaborAuthorityHierarchyFormalSelectionFormalRulesandRegulationsImpersonalityCareerOrientationEXHIBITHM–334Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nHumanResourcesApproachRobertOwenClaimedthataconcernforemployeeswasprofitableformanagementandwouldrelievehumanmisery.HugoMunsterbergCreatedthefieldofindustrialpsychology—thescientificstudyofindividualsatworktomaximizetheirproductivityandadjustment.35Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nHumanResourcesApproachMaryParkerFollettRecognizedthatorganizationscouldbeviewedfromtheperspectiveofindividualandgroupbehavior.ChesterBarnardSaworganizationsassocialsystemsthatrequirehumancooperation.ExpressedhisviewsinhisbookTheFunctionsoftheExecutive(1938).36Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nHawthorneStudiesAseriesofstudiesdoneduringthe1920sand1930sthatprovidednewinsightsintogroupnormsandbehaviorsHawthorneeffectSocialnormsorstandardsofthegrouparethekeydeterminantsofindividualworkbehavior.Changedtheprevalentviewofthetimethatpeoplewerenodifferentthanmachines.37Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nHumanRelationsMovementBasedonabeliefintheimportanceofemployeesatisfaction—asatisfiedworkerwasbelievedtobeaproductiveworker.Advocateswereconcernedwithmakingmanagementpracticesmorehumane.DaleCarnegieAbrahamMaslowDouglasMcGregor38Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nTheQuantitativeApproachOperationsresearch(managementscience)EvolvedoutofthedevelopmentofmathematicalandstatisticalsolutionstomilitaryproblemsduringWorldWarII.Involvestheuseofstatistics,optimizationmodels,informationmodels,andcomputersimulationstoimprovemanagementdecisionmakingforplanningandcontrol.39Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nSocialEventsThatShapedManagementApproachesClassicalapproachDesireforincreasedefficiencyoflaborintensiveoperationsHumanresourcesapproachThebacklashtotheoverlymechanisticviewofemployeesheldbytheclassicists.TheGreatDepression.ThequantitativeapproachesWorldWarII40Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nTheProcessApproachManagementtheoryjungle(HaroldKoontz)Thediversityofapproachestothestudyofmanagement—functions,quantitativeemphasis,humanrelationsapproaches—eachoffersomethingtomanagementtheory,butmanyareonlymanagerialtools.Planning,leading,andcontrollingactivitiesarecircularandcontinuousfunctionsofmanagement.41Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nTheSystemsApproachDefinesasystemasasetofinterrelatedandinterdependentpartsarrangedinamannerthatproducesaunifiedwholeClosedsystem:asystemthatisnotinfluencedbyanddoesnotinteractwithitsenvironmentOpensystem:asystemthatdynamicallyinteractswithitsenvironmentStakeholders:anygroupthatisaffectedbyorganizationaldecisionsandpolicies42Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nTheOrganizationanditsEnvironmentEXHIBITHM–443Copyright©2004PrenticeHall,Inc.Allrightsreserved.\nTheContingencyApproachThesituationalapproachtomanagementthatreplacesmoresimplisticsystemsandintegratesmuchofmanagementtheoryFourpopularcontingencyvariablesOrganizationsizeRoutinenessoftasktechnologyEnvironmentaluncertaintyIndividualdifferences44Copyright©2004PrenticeHall,Inc.Allrightsreserved.