3/22/2015 7:45:00 PMWhat is organization? 6Deliberate
arrangement of people to accomplish for some specific
purpose.College, fraternity3 Common Characteristics1. Distinct
purpose- expressed through goals the organization hopes to
accomplish2. People- it takes people to preform that is necessary
for the organization to achieve goals3. Deliberate Structure-
within which members do their work, may be open and flexible
Who are managers? 5Someone who coordinates and oversees the work
of other people so organizational goals can be accomplished.
Coordinating the work of departmental group or supervising single
person
What is management? 7Coordinating and overseeing the work
activities of others so their activities are completed efficiently
and effectively.Efficiently- doing things right, getting the most
output from the least amount of input or resources. Getting things
doneEffectiveness- doing work activities that will result in
achieving goals.
Types of Management 61. First-Line Managers- supervise and
coordinate the activities of operating non- managerial employees.
Titles include supervisor, coordinator, and office manager. They
oversee the day-to-day operations of their respective stores.2.
Middle Managers- largest group of managers in most organizations.
Titles include plant manager, operations manager, and division
head. Middle managers are responsible primarily for implementing
the policies and plans developed by top managers 3. Top Managers-
create the organization's goals, overall strategy, and operating
policies. Top managers make decisions about such activities as
acquiring other companies, investing in research and development.
CEOs, president.
Four functions of management 91. Planning- Defining goals,
establishing strategies to achieve goals, and developing plans to
integrate and coordinate activities.2. Organizing- arranging and
structuring work to accomplish organizational goals, determine what
tasks are to be done and who is to do them.3. Leading- working with
and through people to accomplish goals, monitoring subordinates,
help resolve work conflicts, influence individuals, deal with
employee behavioral issues4. Controlling- evaluation of whether
things are going as planned, ensure goals are met and work is done
as it should be, correcting work.
Mintzbergs Managerial Roles 10Managerial roles refers to
specific actions or behaviors
A. Interpersonal- involve people outside the origination and
other ceremonial and symbolic duties.1. Figurehead: attending
ribbon-cutting ceremony for new plant, ceremonial and symbolic than
substantive.2. Leader: encourage employees to improve productivity,
formally and informally shows subordinates how to do things and how
to preform under pressure 3. Liaison: coordinating activities of
two product group, a coordinator or link among people, groups, or
organizations B. Informational- involve collecting, receiving and
disseminating information4. Monitor: Questions subordinates, is
receptive to unsolicited information, and attempts to be as well
informed as possible. 5. Disseminator: Sending memos outlining new
organizational initiatives. 6. Spokesperon: making speech to
discuss growth plans. C. Decisional- primarily relates to making
decisions7. Entrepreneur-Develops new ideas for innovation.
Initiator of change.8. Disturbance Handler- Resolving conflict
between two subordinates.9. Resource Allocator- Reviewing or
revising budget requests.10. Negotiator- Reaching agreement with a
key supplier or labor union.
Management skillsA. Technical - job specific knowledge and
technical skills needed toproficiently preform work tasks1. First
line managers- BC they manage the employees who use tools and
techniquesB. Human skills- ability to work well with people
individually and in Groups1. Middle managersC. Conceptual skills-
abstract and complex strategies1. Top managers- visualize how
organization fits into broader environment
Ch. 1 Principles of MGMT3/22/2015 7:45:00 PM
Adam Smith- Wealth of Nations 27Argued the economic advantages
that organizations and society would grain from the division of
labor or job specializationBreaking jobs down into narrow and
repetitive tasksPin industryDivision of labor increased
productivity by increasing each workers skill and dexterity, saving
time lost in changing tasks and creating labor.
Industrial Revolution 27Late 18th Century when machine power was
substituted for human power. It became more economical to
manufacture goods in factories rather than at home. Created large
organizations in need of management.
Major Approaches of Management 27Classical Approach- Early
1900s: Emphasized rationality and efficiency and making
organizations as efficient as possible.Scientific ManagementGeneral
AdministrativeQuantitative Approach- Post WWII: Emphasized
quantitative techniques to improve decision makingBehavioral
Approach- Dates back to 1700s: Focused on an organizations
peopleEarly AdvocatesHawthorne StudiesOrganizational
BehaviorContemporary Approach- 1960s- Present: looks at the
relationship between the organization and the external
EnvironmentSystems Approach
Classical Approach 28Scientific Management 28Approach involving
the scientific method to find the "one best way" for a job to be
done. Fredrick Taylor "father" of scientific management. Principles
of Management 19111. Develop a science for each element of the job
to replace old rule-of-thumb methods2. Scientifically select
employees and then train them to do the job described in Step 13.
Supervise employees to make sure they follow the prescribed methods
for preforming their jobs4. Continue to plan the work, but use
workers to get the work done.
Frank and Lillian Gilbreth 29Focused on increasing work
production through reduction of wasted motions. Developed
microchronometer that recorded a workers hand-and-body motions and
the amount of time spent doing each motion (therbligs) analyzing
hand motion.
General Administrative Theory 29Focused on what managers do and
what constituted good management practice.Henry Fayol- Believed
that the principle of management was distinct from other
organizational functions. Developed principles of management that
applied to all organizational situations. Fayols 14 Principles of
Management 30 1) Division of work- specialization increases output
by making employees more efficient2) Authority-Managers must give
orders 3) Discipline- Employees must respect the rules that govern
the organization 4) Unity of Command- Every employee should receive
orders from one superior 5) Unity of Direction- Each group that has
the same objective should be directed by one manager using 1 plan.
6) Subordination of individual interests to the general interest-
The interest of one group shouldn't be the interest of the whole
organization 7) Remuneration- Workers must be paid a fair wage 8)
Centralization- Proper proportion of decision making with managers
and subordinates. 9) Scalar Chain-The line of authority from top
management to the lowest ranks represents this. 10) Order- People
and materials should be in the right place at the right time. 11)
Equity- Managers should be kind and fair to employees. 12)
Stability/tenure of personnel- management should provide orderly
personnel planning and ensure that replacements are available to
fill vacancies. 13) Initiative- Employees who are allowed to
originate and carry out plans will exert high levels of effort 14)
Espirit de Corps- promoting team spirit will build harmony
Weber 30Bureaucracy- form of organization characterized by
division of labor, clearly defined hierarchy, detailed rules and
regulations, and interpersonal relationships. Was an attempt to
formulate an ideal prototype for organizations. Hinders individuals
creativity and limits organizations ability to respond quickly to
an increasingly dynamic environment. Division of Labor- Jobs broken
down into simple routine tasksAuthority Hierarchy- positions
organized in hierarchy with chain of command.Formal
Selection-people selected for jobs based on technical
qualificationsFormal rules and regulations-system of written rules
and standard operating procedureImpersonality- Uniform application
of rules and controls, not according to personalities.
Behavioral Approach 31Organizational Behavior- research the
actions of people at work. Elton Mayo Father of industrial
psychology.Hawthorne Studies- Series of studies at the Western
Electric Company Works in Cicero, Illinois. They wanted to examine
the effort of various lighting levels on worker productivity. They
concluded that lighting intensity was not directly related to group
productivity. The researchers concluded that social norms or group
standards were the key determinants of individual work
behavior.
Quantitative Approach 33Also called operations research or
management science, Involved the use of quantitative techniques to
improve decision makingThe Q Approach evolved from mathematical and
statistical solutions developed for military during WWII. Used to
solve logistics and quality control problems. Focuses on improving
managerial decision making by applying:i. Statisticsii.
Optimization models iii. Informational modelsiv. Computer
stimulationsA quality revolution swept though both business and
public sectors in the 1980s and 1990s. It was inspired by a small
group of quality experts; the most famous was W. Edwards Deming.
Their models became the basis for todays quality management
programs.Totality Quality Management (TOM)- management philosophy
devoted to continual improvement and responding to customer needs
and expectations 1. Intense focus on customer2. Concern for
continual improvement3. Processes focused4. Improvement in the
quality of everything the organization does5. Accurate
measurement6. Empowerment of employees
Contemporary Approach 34Management researches began to look at
what was happening in the external environment outside the
boundaries of the organizationThe Systems Approach- A set of
interrelated and interdependent parts arranged in a matter that
produces a unified whole.Basic types of systemsa. Closed systems-
are not influenced by and do not interact with their environmentb.
Open systems- dynamically interact to their environment by taking
in inputs and transforming them into outputs that are distributed
in their environments. Implies that decision and actions in one
organizational area will affect other areas.Recognizes that
organizations are not self-contained. They rely on their
environment for essential inputs and as outputs to absorb their
outputsContingency Approach- recognizes organizations as different,
which means that they face different situations and require
different ways of managing. It stresses that there are not
simplistic or universal rules for managers to follow.Contingency
Variables 36a. Organization size- as size increases, so do the
problems of coordination.b. Routineness of task technology- to
achieve its purpose, an organizational uses technology. Routine
technologies requires organizational structures, leadership styles,
and control systems that differ from those required by customized
or nonroutine technologies.c. Environmental Uncertainty- The degree
of uncertainty caused by environmental changes influenced the
management process.d. Individual differences- Individuals differ in
terms of their desire for growth autonomy, tolerance of ambiguity
and expectations.
Ch 1. Management History3/22/2015 7:45:00 PM
Omnipotent View of Management 42The view that managers are
directly responsible for an organizations success or failure.This
view is consistent with the stereotypical picture of the
take-charge business executive who overcomes any obstacle in seeing
that the organization achieves its goals
Symbolic View of Management 42This view that much of an
organizations success or failure is due to external forces outside
managers control.Performance is influenced by factors which
managers have little control, such as the economy, customers,
governmental policies, competitors actions, decisions made by
previous managers.
Constraint on Managerial Discretion 43Organizational
Environment->Managerial Discretion