Introduction to the Fundamentals of Management

Introduction to the Fundamentals of Management

This course is copyrighted by Prentice Hall and all rights are reserved. It is a term-driven, concept-based course that offers a simplistic level of analysis for students. The main focus of

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Slide1copyright © 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

Slide2copyright © 2004 prentice hall. all rights reserved.1–2 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

Slide3copyright © 2004 prentice hall. all rights reserved.1–3 • Manager  A 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?

Slide4copyright © 2004 prentice hall. all rights reserved.1–4 • Question:  Can Organizations be self-directing?  Removing the need for managers  Or, 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 Process  Collectivity of Managers in the organization  A good manager realizes that he/she cannot bring success to the organization on his/her own merit

Slide5copyright © 2004 prentice hall. all rights reserved.1–5 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?

Slide6copyright © 2004 prentice hall. all rights reserved.1–6 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

Slide7copyright © 2004 prentice hall. all rights reserved.1–7 Types of Managers  FIGURE 1–1

Slide8copyright © 2004 prentice hall. all rights reserved.1–8

Slide9copyright © 2004 prentice hall. all rights reserved.1–9 • Text  Do 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.

Slide10copyright © 2004 prentice hall. all rights reserved.1–10 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

Slide11copyright © 2004 prentice hall. all rights reserved.1–11 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

Slide12copyright © 2004 prentice hall. all rights reserved.1–12 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?

Slide13copyright © 2004 prentice hall. all rights reserved.1–13 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”

Slide14copyright © 2004 prentice hall. all rights reserved.1–14 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

Slide15copyright © 2004 prentice hall. all rights reserved.1–15 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

Slide16copyright © 2004 prentice hall. all rights reserved.1–16 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.

Slide17copyright © 2004 prentice hall. all rights reserved.1–17 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

Slide18copyright © 2004 prentice hall. all rights reserved.1–18 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 Influence  Use the classicists’ command and control approach.  Foster employee self-control by providing better training, encouraging participative leadership, and developing commitment and loyalty.

Slide19copyright © 2004 prentice hall. all rights reserved.1–19 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

Slide20copyright © 2004 prentice hall. all rights reserved.1–20 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

Slide21copyright © 2004 prentice hall. all rights reserved.1–21 Today’s Management Environment • Globalization  Antiquated  The 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

Slide22copyright © 2004 prentice hall. all rights reserved.1–22 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

Slide23copyright © 2004 prentice hall. all rights reserved.1–23 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

Slide24copyright © 2004 prentice hall. all rights reserved.1–24 Fundamental Changes Facing Managers  FIGURE 1–2 A move away from the central organization to  autonomous SBU’s

Slide25copyright © 2004 prentice hall. all rights reserved.1–25 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

Slide26copyright © 2004 prentice hall. all rights reserved.1–26 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

Slide27copyright © 2004 prentice hall. all rights reserved.1–27