Management and Its Evolution

1. Management and Its Evolution

2. Successful Organizations • A firm can be efficient by making the best use of people, money, physical plants, and technology. • It is ineffective if its goals do not provide a sustained competitive advantage. • Successful organizations know how to manage people and resources efficiently and effectively to accomplish organizational goals and to keep those goals in tune with changes in the external environment.

3. How business in the 21st century is different • Emphasis on the Management of Change • Increasing Emphasis on Customer Service • Need for Higher Business Ethics.

4. Who is a manager? • A person who is responsible for making resource allocation decisions and with the formal authority to direct others • Operational- lowest level, supervise the affairs of the organization • Tactical- translate general goals into specific activities • Strategic- senior executives responsible for overall development.

5. What is a Team? A set of people performing a task to attain a common goal. Cross-functional teams • Composed of individuals from different parts of the organization Cross-disciplinary • Composed of team members with diverse background • Define the problem, set objectives, establish priorities, proposes new ways of doing things, and assigns members to different tasks.

6. Working in a modern organization • Manager • A holistic view • Effective and Efficient Planning • Integrity, honesty, respect • Good Communication • Individual • Initiative • Leadership • Learning ability • Flexibility • Trustworthiness • Team • Evaluate overall team performance • Appreciate teams that think out of the box • Appreciate diversity.

7. Functions of Management • Planning: assesses the management environment to set future objectives and map out activities necessary to achieve those objectives. • COORDINATION is required • Organizing: determines how the firm’s human, financial, physical, informational, and technical resources are arranged and coordinated to perform tasks to achieve desired goals. • RESOURCE DEPLOYMENT is required

8. Functions of Management (contd.) • Leading : energizes people to contribute their best individually and in cooperation with other people • COMMUNICATION, MOTIVATION are required • Controlling: measures performance, compares it to objectives, implements necessary changes, and monitors progress. • FEEDBACK, PROBLEM SOLVING are required.

9. Roles of Managers • Interpersonal- involving interaction with superiors, peers and subordinates and people outside the organization. • Figurehead • Leader • Liaison • Informational- Obtaining, interpreting and giving out a great deal of information. • Monitor • Disseminator

10. Roles of Managers(contd.) • Decisional- Choosing among alternatives, balancing interests of various parties. • Entrepreneur • Disturbance handler • Resource allocator • Negotiator

11. Early Management Thought • Management strategy: Sun Tzu, The Art of War • Leadership: Nicolò Machiavelli, The Prince • Design and organization of work: Adam Smith, The Wealth of Nations • division of labor

12. The Operational Perspective • Scientific Management: Frederick W. Taylor • Quantitative Management: Ford W. Harris • Quality Management: Walter A. Shewhart • Bureaucratic Management: Max Weber • Administrative Management: Henri Fayol

13. Taylors Scientific Management • Scientifically study each part of a task develop the best method of performing the task. • Carefully select workers and train them to perform the task by using the scientifically developed method. • Cooperate fully with workers to ensure that they use the proper method. • Divide work and responsibility so that management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly.

14. Weber’s Ideal Bureaucracy • Specialization of labor • Formal rules and procedures • Impersonality • Well-defined hierarchy • Career advancement based on merit

15. Fayol’s Principles of Management • 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 and tenure • Initiative • Esprit de corps • Functional approach to management • Unity of command • Unity of direction • Equity

16. Behavioral Perspective • Based on the fact that psychological and social processes of human behavior can result in improvements in productivity and work satisfaction. • The Hawthorne effect - when a manager shows concern for employees, their motivation and productivity levels are likely to improve. • Human Relations Approach - the relationship between employees and a supervisor is a vital aspect of management. • Employee motivation • Leadership style

17. Hawthorne Studies • 1924 – 1932 at Western Electric Company’s plant near Chicago. • Paying special attention to employees motivates them to put greater effort into their jobs. • Work groups are important- the chiselers are convinced to speed up and the rate-busters to slow down.

18. Maslow’s Hierarchy of Needs Self- Actualization Need for Self Esteem Need for Social Relations Need for Security Physical Needs

19. McGregor’s Theory X and Theory Y • Theory X assumes that employees are inherently lazy and lack ambition. • negative perspective on human behavior. • Theory Y assumes that most employees do not dislike work and want to make useful contributions to the organization. • positive perspective on human behavior.

20. Contemporary Management Approach • Systems Theory • Contingency Theory • The Learning Organization Perspective

21. Systems Theory • The organization is a system of interrelated parts that function in a holistic way to achieve a common purpose. • Input process output occurs • Environment= external market • Feedback is an important component • Systems theory concepts that affect management thinking: • Open and closed systems- open interact with environment, closed do not. • Subsystems- interdependent parts of the system • Synergy- whole greater than the parts • Equifinality- same goal different routes • THE WHOLE IS GREATER THAN THE SUM OF PARTS

22. Contingency Theory • There is no “one best way” to manage an organization. • what works for one organization may not work for another • Situational characteristics (contingencies) differ • Managers need to understand the key contingencies that determine the most effective management practices in a given situation

23. The Learning Organization • The management approach based on an organization anticipating change faster than its counterparts to have an advantage in the market over its competitors. • Rather than reacting to change , which is a normal part of the business landscape, organizations need to anticipate change so they are well positioned to satisfy customer needs.

24. Emerging Perspectives and Issues The Modular Organization • Every function not regarded as crucial is outsourced to an independent organization. • “Disaggregated Corporation” The Intangible Organization • Shifts from tangible (plant and equipment) to intangible (know-how and product design) investments • Mangers and employees in today’s companies focus on opportunities rather than efficiencies

25. And as a last word… “Management is a curious phenomenon. It is generously paid, enormously influential, and significantly devoid of common sense. At least, the hype about management lacks common sense, as does too much of the practice. I should really say impractice, because the problems grow out of the disconnection between management and the managed. The disconnection occurs when management is treated as an end in itself instead of as a service to organizations and their customers.” Henry Mintzberg. Musings on Management. 1996. Harvard Business Review. 74(4). 61-67.