Chapter one

Management: Science, Theory and Practice

After studying this chapter, you should understand

The nature and purpose of management Recognize the aim of all managers is to create surplus The concepts of productivity, effectiveness, and efficiency Evolution of management and recent contribution to the management thought Various approaches to management with its limitations Managerial function like planning, organizing, staffing, leading, and controlling

Management: Nature and Purpose

Management is a process of designing and maintaining
an environment in which individuals, working together in groups, efficiently accomplish selected aims.

Management is consisted of:

- Managers and people carry out the managerial functions of planning, organizing, staffing, leading, and controlling. - Management applies to any kind of organization. - It applies to managers at all organizational levels. - The aim of all managers is same: to create surplus - Managing is concerned with productivity, which implies effectiveness and efficiency.

Functions of Management
There are five managerial functions around which managerial knowledge is organized. They are: 1. Planning: selecting missions and objectives as well as the actions to achieve them which requires decision making. 2. Organizing: establishing an intentional structure of roles for people to fill in an organization. 3. Staffing: Filling and keeping filled the positions in the organization structure. 4. Leading: influencing people so that they will contribute to organizational and group goals. 5. Controlling: Measuring and correcting individual and organizational performance to ensure events confirm to plans.

Contd.
The External elements affect operation: - Political, social, economical, ethical, technological

Levels of Management
First Level supervisors Middle level supervisors Top level supervisors -Skills and management levels - Goals of managers and the organization

Characteristics of excellent and most admired companies

1. 2. 3. 4. 5. 6. 7. 8. Oriented toward action Learned about the needs of their customers Achieved productivity Promoted managerial autonomy and entrepreneurship Values of company Focused on known business Simple organization structure Centralized and decentralized depend upon situation

Advantages of new dimensions

Technology Globalization Entrepreneurship Productivity, effectiveness, efficiency

The evolution of management

Scientific Management: (Fredrick Taylor) - Fredrick Taylor is considered as the father of scientific management. - His primary concern was to raise productivity through greater efficiency in production, increase in pay of workers, by applying scientific method. - His principles emphasize science using the creating group harmony, cooperation, achieving maximum output, and developing workers.

Contd.
Scientific Management: (Henry Grant) - he called for scientific selection of workers and harmonious cooperation between labor and management. - He also stressed on training to the employees. Scientific Management: (Frank and Lillian Gilbreth) - Frank is known primarily for his time and motion studies. Lillian was an industrial psychologist, focused on the human aspects of work and the understanding of workers personalities and needs.

Contd.
Modern Operational Management Theory: (Henry Fayol) - he is referred to as the father of modern management theory. - He divided industrial activities into six groups: technical, commercial, financial, security, accounting and management. - He has formulated 14 principles of management such as authority, responsibility, unity of command etc.

Contd.
Behavioral Sciences: - Hugo Munsterberg: application of psychology to industry and management - Walter Dill Scott: Application psychology to advertising, marketing and personnel. - Max Weber: theory of bureaucracy - Vilfredo Pareto: he referred to as the father of social systems approach to organization and management. - Elton Mayo: influence of social attitudes and relationships of work groups on performance.

Management Analysis
1. The Managerial Roles approach: Interpersonal roles: The figurehead role: performing ceremonial and social duties
as the organization's representatives.

The leader role The liaison role: connecting with outside world. 2. Information roles: The recipient role: receiving information about the operation of
an enterprise

The disseminator role: passing information to subordinates The spokesperson role: transmitting information to those outside the organization.

Contd.
3. Decision roles:
- The entrepreneurial role - The disturbance handler role - The negotiator role

The Management Process

The management process draws together the pertinent knowledge of management by relating it to the managerial job. Systems Theory - Socio-technical systems - Reengineering 2. Sociology/social psychology - cooperative social systems - Group behavior - Interpersonal behavior

Contd.
3. Clinical experience - total quality management - Contingency theory 4. Decision theory - rational choice and decisions 5. Mathematics - Management sciences