MBA MCO101 Unit 1 Lecture 2 20080621

MCO 101 • MANAGEMENTUnit 1: Management, Managers and evolution of Management theory

MANAGEMENT 2MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Managing Expectations

LEARNING OUTCOMES:

At the end of the course, students will be able to:

• Explain fundamental concepts and principles of management including the basic roles, skills, and functions of management

• Discuss the knowledgeable of historical development, theoretical aspects and practice application of managerial process

• Examine the environment, technology, human resources, and organizations in order to achieve high performance

• Discuss the ethical dilemmas faced by managers and the social responsibilities of businesses.


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SUBJECTS DISCUSSED:

1. Management, Managers and evolution of Management theory

2. Personality traits and diversity3. Organisation, Globalisation and the resulting

environments4. Decision-making and Planning5. Structure and Strategy6. Executing and Controlling7. Human Resources Management as a function8. Motivation, Leadership, Groups and Teams9. Communication, conflicts and politics10. Operations Management. Entrepreneurship. Innovation


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TOPIC DETAILS:

After going through UNIT 1, you should be able to:

1. Describe what management is. 2. Explain the four functions of management.3. Describe different kinds of managers. 4. Explain the major roles and sub roles that managers perform in

their jobs. 5. Explain what companies look for in managers.6. Discuss the top mistakes that managers make in their jobs.7. Describe the transition that employees go through when they

are promoted to management. Explain the origins of management

8. Explain the history of scientific management.9. Discuss the history of bureaucratic and administrative

management.10. Explain the history of human relations management.11. Discuss the history of operations, information systems, and

contingency management.


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What is Management?

Management is:

Effectiveness

EfficiencyGetting workGetting workdone throughdone through

othersothers


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Management Function

PLANNING ORGANISING

CONTROLLINGLEADING


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Planning

PLANNING

Determining organisational goals and a means for achieving them


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Organising

ORGANISING

• Deciding where decisions will be made

• Who will do what jobs and tasks

• Who will work for whom


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Leading

LEADING

Inspiring

Motivating

For Anne Mulcahy, CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers.


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Controlling

CONTROLLING

Monitoring progress toward goal achievement and taking corrective action when needed


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Controlling Process

Set standards toachieve goals

Compare actualperformance to

standards

Make changesto return

performance tostandards


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Kinds of Managers

• Top Managers• Middle Managers• First-Line

Managers• Team Leaders


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Kinds of Managers


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Top Managers

• Chief Executive Officer (CEO)

• Chief Operating Officer (COO)

• Chief Financial Officer (CFO)

• Chief Information Officer (CIO)

Creating a context for change

Developing commitmentand ownership in employees

Creating a positive organisational culture through language and action

Monitoring their business environments

Generally responsible

for


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Middle Managers

• Plant Manager• Regional Manager• Divisional Manager


forCoordinate and link groups, departments, and divisions

Monitor and manage the performance of subunits and managers who report

to them

Implement changes or strategies generated by top managers

Plan and allocate resources to meet objectives


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First Line Managers

• Office Manager• Shift Supervisor• Department Manager


for

Manage the performance of entry-level employees

Encourage, monitor, and reward the performance of workers

Teach entry-level employees how to do their jobs

Make detailed schedules and operating plans


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Team Leaders

Team Leaders


forFacilitate team performance

Facilitate internal team relationships

Manage external relations


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Managerial Roles

Interpersonal

• Figurehead• Leader• Liaison

Informational

• Monitor• Disseminator• Spokesperso

n

Decisional

• Entrepreneur• Disturbance

Handler• Resource

Allocator• Negotiator


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Interpersonal Role

Monitor: Managers scan their environment for information

Disseminator: Managers share information with others in their company

Spokesperson: Managers share information with others outside their departments or companies


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Informational Role

Figurehead: Managers perform ceremonial duties

Leader: Managers motivate and encourage workers to accomplish objectives

Liaison: Managers deal with people outsidetheir units


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Decisional Role

Entrepreneur: Managers adapt to incremental change

Disturbance Managers respond to problems thatHandler: demand immediate action

Resource Allocator: Managers decide who gets what

resources

Negotiator: Managers negotiate schedules, projects, goals, outcomes, resources, and raises


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What Companies Look for in Managers

Conceptual SkillsMotivation to

Manage

Technical Skills Human Skills


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What Companies Look for in Managers

Skills are more or less important at different levels of management:


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Mistakes Managers Make

1. Insensitive to others

2. Cold, aloof, arrogant

3. Betrayal of trust

4. Overly ambitious

5. Specific performance problems with the business

6. Overmanaging: unable to delegate or build a team

7. Unable to staff effectively

8. Unable to think strategically

9. Unable to adapt to boss with different style

10. Overdependent on advocate or mentorAdapted from Exhibit 1.6 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983


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Manager’s transition

Be the boss

Formal authority

Manage tasks

Job is not managing people

Initial expecta-tions were wrong

Fast pace

Heavy workload

Job is to beproblem-solverand troubleshooter

No longer “doer”

Communication,listening, positivereinforcement

Learning to adaptand control stress

Job is peopledevelopment

Managers’Initial Expectations

After Six MonthsAs a Manager

After a YearAs a Manager


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Discussion

Discuss how and why companies can create competitive advantage through people?


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History of Management

TOPIC DETAILS:

After going through this part, you should be able to:

1. Explain the origins of management2. Explain the history of scientific management.3. Discuss the history of bureaucratic and administrative

management.4. Explain the history of human relations management.5. Discuss the history of operations, information systems,

and contingency management.


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Management Ideas and Practice Throughout History

5000 BC

4000-2000 BC

1800 BC

600 BC

500 BC

400 BC

400 BC

175

284

900

1100

1418

1436

1500

1525

Sumerians

Egyptians

Hammurabi

Nebuchadnezzar

Sun Tzu

Xenophon

Cyrus

Cato

Diocletian

Alfarabi

Ghazali

Barbarigo

Venetians

Sir Thomas More

Machiavelli

Record keeping

Plan, organize, control. Written requests.

Controls and written documentation

Wage incentives, production control

Strategy

Management as a separate art

Human relations and motion study

Job descriptions

Delegation of authority

Listed leadership traits

Listed managerial traits

Different organizational forms/structures

Numbering, standardization, interchangeability

Critical of poor management and leadership

Cohesiveness, power, and leadership


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Why we need managers today?

Work in families

Skilled labourers

Small, self-organisedgroups

Unique, small batchesof production

ThenThen

Work in factories

Specialised,unskilled labourers

Large factories

Large standardisedmass production

NowNow


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Scientific Management

Scientific Management

Studies and tests methods to identifythe best, most efficient ways

“Seat-of-the Pants” Management

No standardisation of procedures

No follow-up on improvements


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Frederick W. Taylor

Frederick Taylor is known today as the "father of scientific management." One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day.

Frederick W. Taylor, 1856-1915


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Taylor’s Four Management Principles

Develop a science for each element of a man’s work,which replaces the old rule-of-thumb method.

Scientifically select and then train, teach, and develop the workman.

Cooperate with the men to insure all work is done inaccordance with the principles of the science.

There is almost equal division of the work and theresponsibility between management and workmen.


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Frank & Lillian Gilbreth

Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter.

Time Study: Timing how long it takes good workers to complete each part of their jobs.

Motion Study: Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive.


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Henry Gantt


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Bureaucratic Management

Max Weber, 1864-1920

The exercise of control on the basis of knowledge, expertise, or experience, with the following aims:

1. Qualification-based hiring

2. Merit-based promotion

3. Chain of command

4. Division of labor

5. Impartial application of rules and procedures

6. Recorded in writing

7. Managers separate from owners


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Administrative Management: Henri Fayol

1. Division of work

2. Authority and responsibility

3. Discipline

4. Unity of command

5. Unity of direction

6. Subordination ofindividual interests

7. Remuneration

8. Centralisation

9. Scalar chain

10. Order

11. Equity

12. Stability of tenure of personnel

13. Initiative

14. Esprit de corps


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Human Relations Management

Efficiency alone is not enough to produce organisational success.

Success also depends on treating workers well.


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Mary Parker Follett

Mary Parker Follett, 1868-1933

Mary Parker Follett is known today as the “mother of scientific management." Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing.


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Constructive Conflict and Coordination: Mary Parker Follett

Dealing withDealing withConflictConflict Compromise

Domination

Integration


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Constructive Conflict and Coordination: Mary Parker Follett

1. Coordination as reciprocal relating all the factors in a situation

2. Coordination by direct contact of the responsible people concerned

3. Coordination in the early stages

4. Coordination as a continuing process

Fundamental Principals of Organisations


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Hawthorne Studies: Elton Mayo

• Workers’ feelings and attitudes affected their work

• Financial incentives weren’t the most important motivator for workers

• Group norms and behaviour play a critical role in behaviour at work


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Cooperation and Acceptance of Authority: Chester Barnard

Managers can gain cooperation by:

1. Securing essential services from individuals

2. Unifying people by clearly formulating an organisation’s purpose and objectives

3. Providing a system of effective communication

People will be indifferent to managerial directives if they…

1. are understood2. are consistent with the

purpose of the organisation3. are compatible with the

people’s personal interests4. can actually be carried out

by those people


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Operations, Information, Systems, and Contingency Management

Information Management

Operations Management

Contingency Management

Systems Management


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Origin of Operations Management

Quality control

Forecasting techniques

Capacity planning

Productivity measurement and improvement

Linear programming

Scheduling systems

Inventory systems

Work measurement techniques

Project management

Cost-benefit analysis


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Whitney, Monge, and Olds

Eli Whitney, 1765-1825

Gaspard Monge, 1746-1818

Ransom Olds, 1864-1950


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Information Management

Milestones in information management:

1400s Horses in Italy1500-1700 Creation of paper and the printing press1850 Manual typewriter1860s Vertical file cabinets and the telegraph1879 Cash registers 1880s Telephone1890s Time clocks1980s Personal computer1990s Internet


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Systems Management


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Contingency Management

Contingency Approach

Holds that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.

Management is harder than it looks Managers need to look for key contingencies that differentiate

today’s situation from yesterday’s situation Managers need to spend more time analyzing problems

before taking action Pay attention to qualifying phrases, such as “usually”

MBA MCO101 Unit 1 Lecture 2 20080621

Business