Management and Its Evolution

Successful OrganizationsA 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.

How business in the 21st century is different

Emphasis on the Management of Change

Increasing Emphasis on Customer Service

Need for Higher Business Ethics.

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.

What is a Team?A set of people performing a task to attain a common goal.Cross-functional teamsComposed of individuals from different parts of the organizationCross-disciplinaryComposed of team members with diverse backgroundDefine the problem, set objectives, establish priorities, proposes new ways of doing things, and assigns members to different tasks.

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.

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

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.

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

Roles of Managers(contd.) Decisional- Choosing among

alternatives, balancing interests of various parties. Entrepreneur Disturbance handler Resource allocator Negotiator

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

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

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.

Weber’s Ideal Bureaucracy Specialization of labor

Formal rules and procedures

Impersonality

Well-defined hierarchy

Career advancement based on merit

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

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

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.

Physical Needs

Need for Security

Need for Social Relations

Need for Self Esteem

Self-

Actualization

Maslow’s Hierarchy of Needs

McGregor’s Theory X and Theory Y

o Theory X assumes that employees are inherently lazy and lack ambition.onegative perspective on human behavior.

o Theory Y assumes that most employees do not dislike work and want to make useful contributions to the organization.opositive perspective on human behavior.

Contemporary Management Approach

Systems Theory

Contingency Theory

The Learning Organization Perspective

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

Contingency TheoryThere 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

The Learning OrganizationThe 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.

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

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.