Fundamentals of Management Essential Concepts and Applications Chapter 1 Managers and Management who are managers and where do they work organization a systematic arrangement of people brought together to accomplish some specific purpose Three characteristics all organizations share Goals Distinct purpose expressed in terms of a goal for set of goals People make decisions and engage in work activities to make the goal a reality Structure deliberate and systematic structure that defines and limits the behavior of its members rules and regulations guide what people can and can?t do non managerial employees people who work directly on a job or a task and have not responsibility of overseeing the work of others managers individuals in an organization who direct the activities of others three types of managers top managers individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members middle managers individuals who are typically responsible for translating goals set by top managers into specific details that lower-level managers will see get done first-line managers supervisors responsible for directing the day-to-day activities of non managerial employees What is management management the process of getting things done, effectively and efficiently, through and with other people process Set of ongoing and interrelated activities. Efficiency doing things right, or getting the most output from the least amount of inputs Effectiveness doing the right things, or completing activities so that organizational goals are attained scientific management Fredrick Winslow Taylor ? ?father of Scientific Management? book Principles of Scientific Management the use of scientific methods to define the ?one best way? for a job to be done What do managers do? 3 approaches Management Functions Henri Fayol Not derived from surveys, rather it was from his observations and experiences in the French mining industry 5 functions (no longer used) Plan Organize Command Coordinate control 4 management functions (used today) Planning Includes defining goals, establishing strategy, and developing plans to coordinate activities Organizing Includes determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made Leading Includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts Controlling The process of monitoring performance, comparing it with goals, and correcting any significant deviations. Management Roles specific categories of managerial behavior, often grouped under 3 primary headings: interpersonal relationships, transfer of information, and decision making Henry Mintzberg (1960?s) empirical study of 5 chief executives at work Managers had little time for reflective thinking because of interruptions He felt that managers performed 10 different but interrelated roles Mintzberg Managerial Roles Interpersonal roles involve people and other duties that are ceremonial in nature 3 interpersonal roles Figurehead Leader liaison Informational roles involve collecting , receiving, and disseminating information 3 informational roles Monitor Disseminator spokesperson Decisional roles entail making decisions or choices 4 decisional roles Entrepreneur Disturbance handler Resource allocator Negotiator Management skills Robert L Katz Managers must posses and use 4 critical management skills Conceptual skills a managers ability to analyze and diagnose complex situations Interposal skills a managers ability to work with, understand, mentor, and motivate others, both individually and in groups Technical skills job-specific knowledge and techniques needed to perform work tasks Political skills a managers ability to build a power base and establish the right connections Small Business An independent business having fewer than 500 employees and which doesn?t necessarily engage in any new or innovative practices and which has relatively little impact on it industry why study management We have a vested interest in improving the ways that organizations are managed and an understanding of management offers insight into many organizational aspects. You will either manage or be managed what factors are reshaping and redefining management increasing importance of customers innovation history module timeline early management 3000 bc- 1776 Egypt 3000- 2500 BC Venice 1400s Ship assembly line floating thru canals 1776 Adam smith?s Wealth of Nations he argued the economic advantages of the division of labor of job specialization division of labor (job specialization) the breakdown of jobs into narrow, repetitive tasks Industrial revolution 1780s ? mid 1800s the advent of machine power, mass production and efficient transportation begun in the late 18th century in Great Britain most important pre-20th century influence on management because all of the organizational aspects that were not a part of the way work was done because management had not become a necessary component to ensure the successes of the enterprise classical approaches 1911-1947 discipline of management began to evolve as a unified body of knowledge. Rules and principles were developed that could be taught and used in a variety of settings scientific management 1911 Fredrick W Taylor Father of scientific management Used scientific methods to determine the ?one best way? for a job to be done His theories where widely accepted and used around the world Focuses on individual production Frank & Lillian Gilbreth Early proponents of time and motion studies Parents of the large family described in the original book Cheaper by the Dozen Henry Gantt Work on scheduling charts was the foundation for today?s project management Henri Fayol General administrative theory Looked at organizational practices by focusing on what managers do and what constituted good management 5 functions (no longer used) Plan Organize Command Coordinate control 14 principles of management Fayol's fundamental or universal principles of management practice Division of work Authority Discipline Unity of command Unity of direction Subordination of individual interest to the general interest Remuneration Centralization Scalar chain Order Equity Stability of tenure of personnel Initiative Esprit de corps Max Weber Description and analysis of bureaucracy which he believed was an ideal, rational form of organization structure especially for large organizations behavioral approach late 1700s- 1950s focused on the actions of workers, how do you motivate and lead employees in order to get high levels of performance late 1700s ? early 1900s managers get things done by working with people people are important to an organizations success Robert Owen Concerned about deplorable working conditions Proposed an idealistic workplace Hugo Munsterberg pioneer in the field of industrial psychology suggested using psychological test for employee selection, learning theory concepts for employee training, and studies of human behavior for employee motivation marry parker Follett organizations could be viewed from both individual and group behavior organizations should be based on group ethic rather than on individualism 1924- mid 1930s Hawthorne studies Research done in the late 1920s and early 1930s devised by Western Electric industrial engineers to examine the effect of different work environment changes on worker productivity, which led to a new emphasis on the human factor in the functioning of organizations and the attainment of their goals. Scientific management experiment Various lighting levels on worker productivity Both groups varied with the level of lighting Group pressures can significantly impact individual productivity, and people behave differently when being observed 1930s ? 1950s Human relation movement makes management practices more humane importance of employee satisfaction satisfied worker is productive worker Abraham Maslow Description of a hierarchy of 5 needs Once a need was substantially satisfied, it no longer served to motivate behavior Douglas McGregor Theory X and Theory Y relates to a managers beliefs about an employees motivation to work 1960s- today Organizational behavior (OB) The field of study that researches the actions (behaviors) of people at work quantitative approach 1940s ? 1950s focuses on the application of statistics, optimization models, information models, computer emulations, and other quantitative techniques to management activities, provided tools for managers to make their jobs easier 1940s Quantitative approach The use of quantitative techniques to improve decision making Evolved from mathematical and statistical solutions developed for military problems during WWII 1950s Total quality management (TQM) A management philosophy devoted to continual improvement and responding to customer needs and expectations contemporary approaches 1960s-present researchers begin to look at what was happening in the external environment outside the organization 1960s Systems approach An approach to management that views an organization as a system, which is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole Organizations function as open systems which means they are influenced by and interact with their environment open systems systems that dynamically interact with its environment contingency approach (situational approach) an approach to management that says that organizations, employees, and situations are different and require different ways of managing if, then Fred Fiedler looked at what style of leadership was most effective in what situation 1980s ? present
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