TOPIC 1: INTRODUCTION

PART 1 - INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS

LEARNING OUTCOMES: Classify managers and nonmanagerial employees. Define management Describe the functions, roles, and skills of managers and how the managers job is changing. Describe the characteristics of an organization. Explain the alue of studying management. !art " introduces the concepts of management, managers, and organizations through the exploration of fi e major #uestions$ %ho are managers& %hat is management& %hat do managers do& %hat is an organization, and how is the concept of an organization changing& %hy study management& WHO ARE MANAGERS? 'anagers may not always be what we expect. (odays managers range from ") to )*, they+re found in a ariety of different types of organizations, and they perform a ariety of jobs from the top to the bottom of the organization. Exhibit "," shows the increasing number of women in management, howe er, while their number is increasing it is mostly in the area of lower and middle management, not top management. (he changing nature of organizations and work often re#uires employees in formerly nonmanagerial jobs to perform managerial acti ities. -tudents who are preparing for careers on any organizational le el can benefit from ac#uiring management skills. (odays employees need to be cross,trained and multiskilled. .ow do we define a manager& / manager is someone who coordinates and o ersees the work of other people so that organizational goals can be accomplished. .owe er, keep in mind that managers may ha e additional work duties not related to coordinating the work of others. 'anagers can be classified by their le el in the organization, particularly in traditionally structured organizations0those shaped like a pyramid$ ". 1irst,line managers 2often called super isors3 are located on the lowest le el of management.

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'iddle managers include all le els of management between the first le el and the top le el of the organization. (op managers include managers at or near the top of the organization who are responsible for making organization,wide decisions and establishing plans and goals that affect the entire organization.

WHAT IS MANAGEMENT? 'anagement in ol es coordinating and o erseeing the work acti ities of others so that their acti ities are completed efficiently and effecti ely. ". Coordinating and o erseeing the work of others is what distinguishes a managerial position from a nonmanagerial one. 4. Efficiency is getting the most output from the least amount of inputs in order to minimize resource costs. Efficiency is often referred to as 6doing things right7 2see Exhibit ",53. 5. Effecti eness is completing acti ities so that organizational goals are attained and is often described as 6doing the right things7. WHAT DO MANAGERS DO? 8o two managers jobs are exactly alike. 9ut management writers and researchers ha e de eloped some specific categorization schemes to describe what managers do. !art " examines these three categorization schemes$ functions, roles and skills. Management Fun t!"n# .enri 1ayol, a 1rench industrialist in the early ":**s, proposed that managers perform fi e management functions$ !;CCC 2planning, organizing, commanding, coordinating, and controlling3. ". ; er time, 1ayols fi e management functions ha e been reorganized into four functions, which pro ide a foundation for the organization of many current management textbooks. a. !lanning in ol es defining goals, establishing strategies for achie ing those goals, and de eloping plans to integrate and coordinate acti ities. b. ;rganizing in ol es arranging and structuring work to accomplish the organizations goals. c. <eading in ol es working with and through people to accomplish organizational goals. d. Controlling in ol es monitoring, comparing, and correcting work performance. 4. =n practice, managing is not always performed in a se#uence as outlined abo e. -ince these four management functions are integrated into the acti ities of managers throughout the workday, they should be iewed as an ongoing process. Management R"$e# .enry 'intzberg, a management researcher, conducted a precise study of managers at work. .e concluded that managers perform "* different roles, which are highly interrelated.

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'anagement roles refer to specific categories of managerial beha ior. a. =nterpersonal roles include figurehead, leadership, and liaison acti ities. b. =nformational roles include monitor, disseminator, and spokesperson. c. Decisional roles include entrepreneur, disturbance handler, resource allocator, and negotiator. 1ollow up studies of 'intzbergs role categories in different types of organizations and at different managerial le els within organizations generally support the idea that managers perform similar roles. /lthough the functions approach represents the most useful way to describe the managers job, 'intzbergs roles gi e additional insight into managers work. -ome of the "* roles do not fall clearly into one of the > functions, since all managers do some work that is not purely managerial.

Management S%!$$# 'anagers need certain skills to perform the challenging duties and acti ities associated with being a manager. ". ?obert <. @atz found through his research that managers need three essential skills. a. (echnical skills are job,specific knowledge and techni#ues needed to proficiently perform specific tasks. b. .uman skills in ol e the ability to work well with other people indi idually and in a group. c. Conceptual skills in ol e the ability to think and to conceptualize about abstract and complex situations. 4. De eloping management skills are important for aspiring managers. H"& t'e Manage()# *"+ I# C'ang!ng -ignificant changes in the internal and external en ironments ha e a measurable impact on management$ ". -ecurity threats, corporate ethics scandals, global economic and political uncertainties, and technological ad ancements should be discussed. %hile all managers will not ha e to manage under tragically demanding circumstances, how managers manage in todays workplace is changing. 4. %ith all of the technology a ailable to managers, it is possible now more than e er to lose touch with customers. 1ace to face contact is being replaced by e, mails and text messages. =n a ser ice oriented economy, like the Anited -tates, the need to deli er high #uality customer ser ice is the basis for competiti eness. /s a result, many managers are re,disco ering that importance of a customer, responsi e organization where employees are friendly, courteous, accessible, and responsi e to customer needs. 5. 68othing is more risky than not inno ating.7 /ll organizations inno ate, howe er, a problem for organizations is working to get all employees in ol ed in the inno ation process. 'anagers can respond to this need by creating a 6team close,7 a time when all employees are scheduled to close the store and lea e together. (his helps create an attitude of working together and commitment.

WHAT IS AN ORGANIZATION? ;rganizations need managers. /n organization is a deliberate arrangement of people to accomplish some specific purpose. ;rganizations share three common characteristics$ 2"3 each has a distinct purposeB 243 each is composed of peopleB and 253 each de elops some deliberate structure so members can do their work. /lthough these three characteristics are important in defining what an organization is, the concept of an organization is changing. (hese differences include$ flexible work arrangements, employee work teams, open communication systems, and supplier alliances. ;rganizations are becoming more open, flexible, and responsi e to changes. ;rganizations are changing because the world around them has changed and is continuing to change. (hese societal, economic, global, and technological changes ha e created an en ironment in which successful organizations must embrace new ways of getting their work done. WH, STUD, MANAGEMENT? (he importance of studying management in todays dynamic global en ironment can be explained by looking at the uni ersality of management, the reality of work, and the rewards and challenges of being a manager. T'e Un!-e(#a$!t. "/ Management %ithout a doubt, management is needed in all types and sizes of organizations, at all organizational le els, and in all organizational work areas throughout the world. ". %e interact with organizations each day of our li es. E ery product we use, e ery action we take, is pro ided by or affected by organizations. %ell,managed organizations de elop a loyal customer base, grow, and prosper. 4. -tudents who study management gain the ability to recognize and encourage good management practicesB just as important, they learn to recognize poor management and how to correct it. T'e Rea$!t. "/ W"(% /fter graduation, students will either manage or be managed. / course in management pro ides insight and understanding about beha iors of super isors and the internal operations of organizations. /n indi idual does not ha e to aspire to be a manager in order to benefit from taking a course in management. Re&a(0# an0 C'a$$enge# "/ 1e!ng a Manage( ". Challenges a. 'anagers may ha e difficulty in effecti ely blending the knowledge, skills, ambitions, and experiences of a di erse group of employees. b. / managers success typically is dependent on others work performance. 4. ?ewards

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'anagers ha e an opportunity to create a work en ironment in which organizational members can do their work to the best of their ability and help the organization achie e its goals. 'anagers often recei e recognition and status in the organization and in the larger communityB influence organizational outcomesB and recei e appropriate compensation. @nowing that their efforts, skills, and abilities are needed by the organization gi es many managers great satisfaction.

PART 2: MANAGEMENT HISTOR,

LEARNING OUTCOMES: Describe the historical background of management. Explain the arious theories in the classical approach. Describe the #uantitati e approach. Discuss the de elopment and uses of the beha ioral approach. Explain the arious theories in the contemporary approach. HISTORICAL 1AC3GROUND OF MANAGEMENT 'any fascinating examples from history illustrate how management has been practiced for thousands of years. ;rganizations and managers ha e existed for thousands of years. (he Egyptian pyramids and the Creat %all of China were projects of tremendous scope and magnitude, re#uiring the efforts of tens of thousands of people. .ow was it possible for these projects to be completed successfully& (he answer is management. ?egardless of the titles gi en to managers throughout history, someone has always had to plan what needs to be accomplished, organize people and materials, lead and direct workers, and impose controls to ensure that goals were attained as planned. Examples of early management practices can also be seen by studying the /rsenal of Denice. /ssembly lines, accounting systems, and personnel functions are only a few of the processes and acti ities used in business in the fifteenth century that are common to todays organizations as well. /dam -mith, author of the classical economics doctrine (he %ealth of 8ations, argued brilliantly for the economic ad antages that he belie ed di ision of labor 2the breakdown of jobs into narrow, repetiti e tasks3 would bring to organizations and society. (he =ndustrial ?e olution is possibly the most important pre,twentieth,century influence on management. (he introduction of machine powers combined with the di ision of labor made large, efficient factories possible. !lanning, organizing, leading, and controlling became necessary acti ities.

CLASSICAL APPROACH /. -cientific management is defined as the use of the scientific method to determine the 6one best way7 for a job to be done. ". 1rederick %. (aylor is known as the 6father7 of scientific management. (aylors work at the 'id ale and 9ethlehem -teel companies stimulated his interest in impro ing efficiency. a. (aylor sought to create a mental re olution among both workers and managers by defining clear guidelines for impro ing production efficiency. .e defined four principles of management. b. .is pig iron experiment is probably the most widely cited example of his scientific management efforts. c. Asing his principles of scientific management, (aylor was able to define the 6one best way7 for doing each job. d. 1rederick %. (aylor achie ed consistent impro ements in producti ity in the range of 4** percent. .e affirmed the role of managers to plan and control and the role of workers to perform as they were instructed. 4. 1rank and <illian Cilbreth were inspired by (aylors work and proceeded to study and de elop their own methods of scientific management. a. 1rank Cilbreth is probably best known for his experiments in reducing the number of motions in bricklaying. b. (he Cilbreths were among the first to use motion picture films to study hand,and,body motions in order to eliminate wasteful motions. c. (hey also de ised a classification scheme to label "E basic hand motions called therbligs 2Cilbreth spelled backward, with the th transposed3. 5. 9. .ow Do (odays 'anagers Ase -cientific 'anagement&

Cuidelines de ised by (aylor and others to impro e production efficiency are still used in todays organizations. .owe er, current management practice is not restricted to scientific management practices alone. Elements of scientific management still used include$ a. Asing time and motion studies b. .iring best #ualified workers c. Designing incenti e systems based on output Ceneral /dministrati e (heorists. (his group of writers, who focused on the entire organization, de eloped more general theories of what managers do and what constitutes good management practice. ". .enri 1ayol, who was a contemporary of 1rederick %. (aylor, was the managing director of a large 1rench coal,mining firm. a. 1ayol focused on acti ities common to all managers.

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.e described the practice of management as distinct from other typical business functions. c. .e stated "> principles of management 2fundamental or uni ersal truths of management that can be taught in schools. 'ax %eber 2pronounced D/F,ber3 was a Cerman sociologist who wrote in the early twentieth century. a. %eber de eloped a theory of authority structures and described organizational acti ity based on authority relations. b. .e described the ideal form of organization as a bureaucracy marked by di ision of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships. .ow Do (odays 'anagers Ase Ceneral /dministrati e (heories& -ome current management concepts and theories can be traced to the work of the general administrati e theorists. a. (he functional iew of a managers job relates to .enri 1ayols concept of management. b. %ebers bureaucratic characteristics are e ident in many of todays large organizations0e en in highly flexible organizations that employ talented professionals. -ome bureaucratic mechanisms are necessary in highly inno ati e organizations to ensure that resources are used efficiently and effecti ely.

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4UANTITATI5E APPROACH TO MANAGEMENT (he #uantitati e approach to management sometimes known as operations research or management science, uses #uantitati e techni#ues to impro e decision making. (his approach includes applications of statistics, optimization models, information models, and computer simulations. /. =mportant Contributions. ". (he #uantitati e approach originated during %orld %ar == as mathematical and statistical solutions to military problems were de eloped for wartime use. 4. /s often happens after wartime, methods that were de eloped during %orld %ar == to conduct military affairs were applied to pri ate industry following the war. 1or instance, a group of military officers0the %hiz @ids0used #uantitati e methods to impro e decision making at 1ord 'otor Company in the mid,":>*s. 9. .ow Do (odays 'anagers Ase the Guantitati e /pproach& ". (he #uantitati e approach has contributed most directly to managerial decision making, particularly in planning and controlling. 4. (he a ailability of sophisticated computer software programs has made the use of #uantitati e techni#ues more feasible for managers. C. (otal Guality 'anagement.

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Guality management is a philosophy of management that is dri en by continual impro ement and response to customer needs and expectations 2see Exhibit 4,H3. (G' was inspired by a small group of #uality experts, including %. Edwards Deming, who was one of its chief proponents. (G' represents a counterpoint to earlier management theorists who belie ed that low costs were the only road to increased producti ity. (he objecti e of #uality management is to create an organization committed to continuous impro ement in work processes.

1EHA5IORAL APPROACH (he field of study concerned with the actions 2beha iors3 of people at work is organizational beha ior. ;rganizational beha ior 2;93 research has contributed much of what we know about human resources management and contemporary iews of moti ation, leadership, trust, teamwork, and conflict management. Early /d ocates of ;rganizational 9eha ior 1our indi iduals0?obert ;wen, .ugo 'unsterberg, 'ary !arker 1ollett, and Chester 9arnard0were early ad ocates of the ;9 approach. (heir ideas ser ed as the foundation for employee selection procedures, moti ation programs, work teams, and organization en ironment management techni#ues. (he .awthorne -tudies were the most important contribution to the de elopment of organizational beha ior. /. (his series of experiments conducted from ":4> to the early ":5*s at the %estern Electric Company %orks in Cicero, =llinois, were initially de ised as a scientific management experiment to assess the impact of changes in arious physical en ironment ariables on employee producti ity. 9. /fter .ar ard professor Elton 'ayo and his associates joined the study as consultants, other experiments were included to look at redesigning jobs, make changes in workday and workweek length, introduce rest periods, and introduce indi idual ersus group wage plans. C. (he researchers concluded that social norms or group standards were key determinants of indi idual work beha ior. D. /lthough not without criticism 2concerning procedures, analyses of findings, and the conclusions3, the .awthorne -tudies stimulated interest in human beha ior in organizational settings. .ow Do (odays 'anagers Ase the 9eha ioral /pproach& /. (he beha ioral approach assists managers in designing jobs that moti ate workers, in working with employee teams, and in facilitating the flow of communication within organizations. 9. (he beha ioral approach pro ides the foundation for current theories of moti ation, leadership, and group beha ior and de elopment.

CONTEMPOAR, APPROACH S.#tem# T'e"(. During the ":I*s researchers began to analyze organizations from a systems perspecti e based on the physical sciences. / system is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. (he two basic types of systems are closed and open. / closed system is not influenced by and does not interact with its en ironment. /n open system interacts with its en ironment. Asing the systems approach, managers en ision an organization as a body with many interdependent parts, each of which is important to the well,being of the organization as a whole. 'anagers coordinate the work acti ities of the arious parts of the organization, realizing that decisions and actions taken in one organizational area will affect other areas. (he systems approach recognizes that organizations are not self,containedB they rely on and are affected by factors in their external en ironment. T'e C"nt!ngen . A66("a ' (he contingency approach recognizes that different organizations re#uire different ways of managing. (he contingency approach to management is a iew that the organization recognizes and responds to situational ariables as they arise.