Copyright © 2004 Prentice Hall. All rights reserved.1–1 Introductory points: Nature of this course: Introduction to the fundamentals of Management

Copyright © 2004 Prentice Hall. All rights reserved. 1–1

Introductory points:

• Nature of this course: Introduction to the fundamentals of Management

Term driven Concept based Simplistic level of analysis

While term/concept understanding is the M.O. of this course. The classroom environment should not and will not be

limited to these topics. Students should see this class as an opportunity to

broaden their perspective and understanding on multiple issues


Organization Defined

• Organization (A group of people) with (formally assigned roles) who

(work together) to achieve the stated goals of the group. What about the informal roles in the organization? Often times, these can be the most powerful

relationships… How should mangers approach these

Characteristics: Common purpose/goals Organizational structure SIT


• ManagerA person who

Plans– Setting goals, rules and procedures, and direction

Organizes– Job analysis, selection, organizational charts

Leads– Influencing morale, culture, conflict, and communication

Controls– Benchmarks, feedback, rewards, and corrective action

These are seen as the four main functions of any complete manager. Consider whether these function are all inclusive… What else would you consider important to good

management?


• Question: Can Organizations be self-directing?

Removing the need for managersOr, more accurately, what other possible

conceptualizations of managers (or the management process) can or do exist? The point here is that management does not only exist

at the individual level…

• Management ProcessCollectivity of Managers in the organization

A good manager realizes that he/she cannot bring success to the organization on his/her own merit


Mintzberg’s Managerial Roles

• Figurehead The public image of the organization

• Leader Morale, attitude, direction

• Liaison Communicator

• Spokesperson Collective voice

• Negotiator Resolution

• Must a manager possess all these traits? Are they traits, or can they be taught?


Innovation in the management process?• The Entrepreneurial Process

Getting employees to think of themselves as entrepreneurs. What kind of organization does this create? Is it what you want in organizations today? Where would you rather be?

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

really take charge. Competence Set of Knowledge, Skills, and Abilities

• The Renewal Process Guarding against complacency by:

Encouraging employees to question why they do things as they do

Because they have to, or because they want to


Types ofManagers

FIGURE 1–1



• TextDo you have the traits to manage?

Is it all about traits?– Is that the real question?

Nature vs. Nurture– Can these skills be taught?

If not, why are you here?

• Personality (Debatable?) Could these be learned?

Social Orientation Attracted to working with others in a helpful or

facilitative way; comfortable dealing with people.Enterprising Orientation

Enjoy working with people in a supervisory or persuasive way in order to achieve some goal.


Managerial Traits (cont’d)• Competencies

Managerial Competence The motivation and skills required to gain a

management position, including: – Intellectual (analytical)– Emotional E.I.– Interpersonal skills– Moral intelligence

Career Anchor A dominant concern or value that directs an

individual’s career choices and that the person will not give up if a choice must be made.– Simply stated a strong sense of self, identity,

and purpose


Managerial Skills• Technical Skills

The ability to plan, organize, lead, and control. Again, technical skills can be taught Available to all

• Interpersonal Skills An understanding of human behavior

Group processes Feelings, attitudes, and motives of others Ability to communicate clearly and persuasively

These skills are more difficult to transfer (innate)

• Conceptual Skills Good judgment, creativity, and the ability to see the “big picture”

These are difficult to measure, much less teach


The Foundations Of Modern Management

• The Classical and Scientific School “Scientific Method” of Management

Frederick Taylor Born of the Industrial Revolution Based on clear, observable, precise jobs and skills

1. The “one best way”

2. Scientific selection of personnel

3. Financial incentives

4. Functional foremanship

Efficiency was the ultimate goal The human in the organization was irrelevant Why?


The Foundations Of Modern Management• The Classical and Scientific School (cont’d)

Couched in task/behavior modification The human is just another machine Another step in the process Not a cognitive, adaptive resource

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 Advocated “chain of command”


The Foundations Of Modern Management • Bureaucracy

Max Weber Probably the most influential framework of it’s time Still seen in many organizations today

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


The Foundations Of Modern Management

• The Behavioral School The Hawthorne Studies

Moved management beyond controlling the behavior solely. Introduced the link between behavior and individual attitudes 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.

Brought the “human” in the organization to the forefront


Douglas McGregor: Theory X and Theory Y• Can heavily influence the management approach taken

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. 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.


The Foundations Of Modern Management• The Behavioral School

Likert and the Employee-Centered Organization Job-centered ( less desirable)

– Less emphasis on the individual– Akin to the scientific method bent on efficiency– No concern for the well-being of the worker– Performance based

Employee centered (modern approaches)– Employee satisfaction– Social and interpersonal links to productivity– Participation– High involvement in the life of the employee– P J and P O Fit


The Administrative School• “Zone of Indifference”

A range of orders that a worker will willingly accept without consciously questioning their legitimacy. Managers have to provide sufficient inducements to

make each employee’s zone of indifference wider. This assumes you want the worker to just follow orders This can be counterproductive

• Managerial InfluenceUse the classicists’ command and control approach.

Foster employee self-control by providing better training, encouraging participative leadership, and developing commitment and loyalty.


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.

Based on work flow and operational efficiencies Effective when there are clear, objective parameters

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

Based on the notion that the organization cannot survive without the macro and micro environment


The Situational/Contingency School• Contingency View of Management.

Born out of the systems approach to the organization All actions and decisions taken by the organization are

contingent in what the environment provides– Reactionary

Paramount given the crucial relationship between organizations and their environment

Organizations can gain control over their environment, thereby reducing the contingent dependency (RBV)

Tom Burns and G. M. Stalker (Metaphors) Mechanistic organizations

– Stable, objective, predictable, low innovation Organic organizations

– Adaptive, unpredictable, innovative, dynamic


Today’s Management Environment

• GlobalizationAntiquatedThe tendency of firms to extend their sales,

ownership, and/or manufacturing to new markets abroad. Made easy given technology and infrastructure

• Technological Advances Steeper curve than the individual Success based on obtaining those technologies

I might argue otherwise… Is it the technology, or the intellectual ability to use them

that is more integral


Today’s Management Environment The Nature of Work

Switch from product service hybrid In reality, the products of tomorrow are services that

are not palpable, yet require continuing service. The product is 98% intellectual

– Hence the change in the demanded worker

Human capital The cognitive interaction of a highly skilled workforce

– Paramount to adaptive success– inimitable

The Workforce Increasing cognitive and social diversity

– Good and bad


Today’s Management Environment Modern Management Thought

New modern approaches to management function on several main proponents:– The increasing importance of the individual

• Cognitive• Smaller valid labor force

– Intrinsic motivation• Getting at people’s internal motivation• Moving away from compliance

– Organizational Buy-in• Vesting the workforce in the organization• Giving them ownership

– Structure and command• Flatter, more adaptive, organizations


Fundamental Changes Facing Managers

FIGURE 1–2

A move away from the central organization to autonomous SBU’s


Basic Management Features Today• Smaller, More Entrepreneurial Organizational Units

Moving the power down to the actual “hands-on” workers Decentralization

• Team-Based and Boundaryless Organizations Identity and loyalty to the team above the organization SIT More visible and immediate feedback

• Empowered Decision-Making Removing the Bureaucracy Allowing for quicker decision-making

• Flatter Organizational Structures, Knowledge-Based Management By removing the “red tape” and “chain-of-command” mentality You allow the specific knowledge of the unique functions to succeed “Knowledge” does not exist only at the higher levels


Source: Harvard Business Review, March–April 1998, p. 82. Copyright © 1998 by the President and Fellows of Harvard College. All rights reserved. FIGURE 1–3

The Evolution of a Faster Business Model


Copyright © 2004 Prentice Hall. All rights reserved.1–1 Introductory points: Nature of this course: Introduction to the fundamentals of Management

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