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  1. Organizations An organization is a collection of people brought together to accomplish a specific purpose Three Common Characteristics • A distinct purpose • People or members • Definite structure Chapter 1 Lesson 1 Courtesy of U.S. Air Force

  2. Organizations Examples of organizations • Your high school • Religious organizations • New England Patriots football team • Sprint corporation • Federal government • US Air Force Chapter 1 Lesson 1

  3. Organizations Chapter 1 Lesson 1

  4. Operatives • Operatives are people who work directly on a job or task • They have no responsibility for overseeing others’ work Managers • A manager is a person who directs the activities of other people in the organization • Managers supervise both operatives and lower-level managers • Managers may also work directly on tasks Chapter 1 Lesson 1 Courtesy of

  5. Management Classifications • First-line managers direct the activities of operative employees • Middle managers serve in level between the first-line managers and the top management • Top managers make decisions about the organization’s direction and set policies Examples: Supervisors Team Leaders Coaches Unit Coordinators Chapter 1 Lesson 1

  6. Middle Managers Top Managers Department Head Project Leader District Manager Division Manager Directors Dean Bishop Senior Managers Presidents Chief Executive Officers Chief Financial Officers Chief Operating Officers Vice Presidents Chapter 1 Lesson 1 Courtesy of Goodshoot Images

  7. Management Management is the process of getting things done, through and with other people, with efficiency and effectiveness • The process involves the main activities that managers perform • Efficiency is doing a task correctly using as few resources as possible • Effectiveness is doing the right task and reaching goals Chapter 1 Lesson 1

  8. Ends Effectiveness R E S O U R C E U S A G E G O A L A T T A I N M E N T Goals Low Waste High Attainment Efficiency and Effectiveness Means Efficiency Chapter 1 Lesson 1 Adapted from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. 8Pearson Prentice Hall, 2005

  9. Management Processes • Planning—defining goals, setting strategy, and coordinating activities • Organizing—deciding what to do and how to do it • Leading—motivating employees, directing others’ activities, and resolving conflicts • Controlling—monitoring tasks to see that they are finished as planned Chapter 1 Lesson 1

  10. Management Processes Achieving the organization’s stated purpose Adapted from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. .9 Pearson Prentice Hall, 2005 Chapter 1 Lesson 1

  11. Management Roles Mintzberg’s Managerial Roles • Interpersonal relationships • Transferring information • Decision making Is the Manager’s Job Universal?Level In the Organization • All managers plan, organize, lead, and control • But the time they give each activity changes with the manager’s level in the organization • As managers move up, they plan more and oversee others less Chapter 1 Lesson 1

  12. Is the Manager’s Job Universal?Profit and Not-for-Profit • A business firm measures its performance by the amount of profit it makes • But not-for-profit organizations don’t share a universal measure of effectiveness • Yet managers in these two types of organizations are more alike than different Chapter 1 Lesson 1

  13. Is the Manager’s Job Universal?Size of the Organization • Small-business manager’s most important role is that of spokesman with customers, suppliers, and others outside the company • Managers in a large organization mostly deal with issues inside the company Chapter 1 Lesson 1

  14. Making Decisions and Dealing With Change • All managers make decisions • All managers are agents of change • Successful managers are aware of the rapid changes around them • They are flexible in adapting to deal with those changes • At the same time, they must help employees deal with the uncertainty change may bring Chapter 1 Lesson 1

  15. Skills and Competencies of Successful Managers General Skills • Conceptual Skills are the mental abilities to analyze and diagnose complex situations • Interpersonal Skills are the abilities to work with, understand, mentor, and motivate people • Technical Skills involve the ability to use tools, procedures, and techniques in the manager’s specialized field • Political Skillsare the abilities to build a power base and establish connections Chapter 1 Lesson 2

  16. Specific Skills • Controlling the organization’s environment and resources • Organizing and coordinating • Handling information • Providing for growth and development • Motivating employees and handling conflict • Strategic problem solving Chapter 1 Lesson 2 Courtesy of

  17. Management Competencies Management competencies are a cluster of knowledge, skills, and attitudes related to effective managerial performance Chapter 1 Lesson 2

  18. Management Competencies Adapted from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. 17 Pearson Prentice Hall, 2005 Chapter 1 Lesson 2

  19. The Importance of Managers in the Marketplace • Good managers can turn straw into gold • Poor managers can ruin everything they touch • Organizations are willing to spend a lot to get and keep good managers Chapter 1 Lesson 2

  20. Why Management is Worth Studying • Everyone deals with organizations every day • In your career, you will either manage or be managed Chapter 1 Lesson 2 Courtesy of

  21. How Management Relates to Other Disciplines of Study • Anthropology is the study of societies • Economics is about the allocation and distribution of scarce resources • Philosophy looks into the nature of things, especially values and ethics Chapter 1 Lesson 2 Courtesy of

  22. How Management Relates to Other Disciplines of Study • Political science considers the behavior of individuals and groups within a political environment • Psychology is the science that seeks to measure, explain, and sometimes change human or animal behavior • Sociology is the study of people in relation to one another Chapter 1 Lesson 2

  23. How Management Relates to Other Disciplines of Study Benefits of Studying Anthropology • Understand cultures and civilizations • Understand people better • Sheds light on differences in values, attitudes, and behaviors between people in different countries and organizations Chapter 1 Lesson 2

  24. How Management Relates to Other Disciplines of Study Benefits of Studying Economics • Understand the changing economy • Understand the role of competition • Understand the free market • Understand protectionism • protecting American producers and manufacturers by limiting the import of foreign products Chapter 1 Lesson 2

  25. How Management Relates to Other Disciplines of Study Benefits of Studying Philosophy • Understand the nature of things, especially values and ethics • John Locke proposed the liberty ethic that freedom, equality, justice, and private property are legal rights • John Calvin proposed the Protestant work ethic that encouraged people to be frugal (thrifty), to work hard, and to attain success • Adam Smith’s market ethic argued that competitive forces, not the government, should regulate the economy Chapter 1 Lesson 2

  26. How Management Relates to Other Disciplines of Study Benefits of Studying Political Science • Understand the structure of conflict • Understand the allocation of power • Understand the manipulation of power for individual self-interest Chapter 1 Lesson 2

  27. How Management Relates to Other Disciplines of Study Benefits of Studying Psychology • Understand motivation, leadership, and trust • Understand employee selection • Understand performance appraisal techniques • Understand training techniques Chapter 1 Lesson 2

  28. How Management Relates to Other Disciplines of Study Benefits of Studying Sociology • Understand cultural diversity • Understand changing gender roles • Understand globalization • Understand new forms of family life Chapter 1 Lesson 2

  29. Adam Smith • Division of labor—the breakdown of jobs into narrow, repetitive tasks • Workers become very skilled at the one task they are doing • Saves time because workers are not moving from one task to the next • Helped pave the way for mechanization of work • Led to automation and computerization Chapter 2 Lesson 1

  30. The Industrial Revolution The advent of machine power, mass production, and efficient transportation, which began in Britain in the late eighteenth century • Machine Power • Mass Production • Relatively Cheap Transportation • Lack of Governmental Regulation • Large Organizations Chapter 2 Lesson 1 Courtesy of

  31. The Industrial Revolution • John D. Rockefeller – Standard Oil • Andrew Carnegie – Carnegie Steel Chapter 2 Lesson 1 Taken from

  32. The Industrial Revolution • Large Labor Forces • New-Style Corporations • Formal Structures • Formal Management Practices Chapter 2 Lesson 1

  33. Frederick Taylor Classical Contributions to Modern Management • Published The Principles of Scientific Management in 1911 • Used the scientific method to determine the “one best way” to do a job, and to train workers to do it that way • Demonstrated to workers and managers that both would benefit by improved production efficiency Chapter 2 Lesson 1

  34. Frank & Lillian Gilbreth • Students of Frederick Taylor • Studied work arrangements to eliminate wasteful hand and body motions • Examined the design and use of tools and equipment to determine how these could contribute to work performance Chapter 2 Lesson 1

  35. Henry Gantt • Devised a bonus system that gave workers extra money if they finished their work in less time than the standard • Studied the efficiency of managers and workers • Created the Gantt chart ~ a graphic device managers use to plan and control work Chapter 2 Lesson 1

  36. 1 2 3 4 Copy/edit manuscript Design sample pages Draw Artwork Print Galley Proofs Print Page Proofs Design Cover A Gantt Chart Adapted from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. 474Pearson Prentice Hall, 2005 Chapter 2 Lesson 1

  37. Why Scientific Management? • Productivity was low in the world of work in the early twentieth century • Better productivity by manual laborers could make a real difference Chapter 2 Lesson 1

  38. Henri Fayol • Designated management as a universal set of activities • Looked at the activities of all kinds of managers • Wrote from personal experience as a manager • Stated 14 principles of management—fundamental or universal truths of management practice Chapter 2 Lesson 1

  39. Fayol’s 14 Principles • Divison of work • Authority of managers to give orders • Discipline of employees • Unity of command • Unity of direction • Subordination of individual interests to the general interest Chapter 2 Lesson 1

  40. Fayol’s 14 Principles • Remuneration of workers • Centralization of decision-making • Scalar Chain ~ authority from top to bottom • Order of people and materials • Equity of treatment • Stability of tenure of personnel • Initiative of employees encouraged • Esprit de Corps Chapter 2 Lesson 1

  41. Max Weber • Described bureaucracy ~ an ideal type of organization with a division of labor, clearly defined hierarchy, detailed rules and regulations, and impersonal relationships • Model of the way work could be done in large groups • Model used in many large organizations today Chapter 2 Lesson 1

  42. Today’s Applications • Matching people to jobs and training workers to be more effectiveare ideas Taylor introduced • Industrial engineering, which is all about the details of processes, is a field with its roots in scientific management Chapter 2 Lesson 1

  43. Today’s Applications Football coach who shows his team the tapes of last week’s game to get them to do better next week is picking up on an idea the Gilbreths introduced Chapter 2 Lesson 1 Courtesy of BrandX Images

  44. Robert Owen Human Resources Approach to Management • Successful Scottish Businessman • Early Industrial Revolution • Saw practices that repulsed him • Children working in factories • Workers not making living wage • Sought to reduce suffering of workers Chapter 2 Lesson 2 Courtesy of Library of Congress

  45. Hugo Munsterberg • Founder of Industrial Psychology • Called for psychological tests to better match people with jobs • Today’s knowledge built on his ideas • Choosing, training, and motivating employees • Designing jobs Chapter 2 Lesson 2

  46. Mary Parker Follett • One of first to consider organizations in terms of individual and group behavior • Believed that the manager’s job was to coordinate group efforts • Stressed the manager’s power with employees, rather than power over them • Her ideas about motivation, leadership, power, and authority remain current today Chapter 2 Lesson 2

  47. Chester Barnard • President of the New Jersey Bell Telephone Company • Saw organizations as social systems that needed human cooperation to work rather than being impersonal • A company, in Barnard’s view, was a set of people with interacting social relationships Chapter 2 Lesson 2

  48. Chester Barnard • Suggested that the manager’s job was to communicate and to get workers to put out top effort • Realized that a successful business has to win and keep the support of investors, suppliers, customers, and other outside stakeholders Chapter 2 Lesson 2

  49. The Hawthorne Studies • A series of studies during the 1920s and 1930s that provided new insights into group norms and behaviors • Researchers studied the influence of factors such as lighting intensity, job redesign, length of the work day and work week, rest periods, and pay systems on productivity Chapter 2 Lesson 2

  50. The Hawthorne Studies • Discovered that group influences, group standards, and group acceptance and security affect behavior more than other factors • Brought renewed attention to human factors • Helped business owners get away from the idea that workers were just like machines Chapter 2 Lesson 2