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PowerPoint Presentation by Charlie CookThe University of West Alabama
Fundamentals of ManagementSixth EditionRobbins and DeCenzowith contributions from Henry Moon
C H A P T E R
1Part I: Introduction
2008 Prentice Hall, Inc.All rights reserved.
Managers and Management
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L E A R N I N G O U T C O M E S
1. Describe the difference between managers andoperative employees.
2. Explain what is meant by the term management.
3. Differentiate between efficiency and effectiveness.4. Describe the four primary processes of management.
5. Classify the three levels of managers and identify theprimary responsibility of each group.
6. Summarize the essential roles performed bymanagers.
7. Discuss whether the managers job is generic.
After reading this chapter, you will be able to:
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L E A R N I N G O U T C O M E S (contd)
8. Describe the four general skills necessary forbecoming a successful manager.
9. Describe the value of studying management.
10. Identify the relevance of popular humanities and socialscience courses to management practices.
After reading this chapter, you will be able to:
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Who Are Managers AndWhere Do They Work?
Organization
A systematic arrangement of people broughttogether to accomplish some specific purpose;
applies to all organizations.Where managers work (manage).
Common Characteristics of Organizations
Distinct purpose and goals
People
Systematic structure
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EXHIBIT 11 Common Characteristics of Organizations
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People Differences
Operatives
People who work directly on a job or task and haveno responsibility for overseeing the work of others.
Managers
Individuals in an organization who direct theactivities of others.
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EXHIBIT 12 Organizational Levels
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Identifying Managers
First-line Managers
Supervisors responsible for directing the day-to-dayactivities of operative employees
Middle Managers
Individuals at levels of management between thefirst-line manager and top management
Top Managers
Individuals who are responsible for making decisions
about the direction of the organization andestablishing policies that affect all organizationalmembers
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How Do We Define Management?
Management
The process of getting things done, effectively andefficiently, through and with other people
Efficiency
Doing the thing correctly; refers to the relationship betweeninputs and outputs; seeks to minimize resource costs
Effectiveness
Doing the right things; goal attainment
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EXHIBIT 13 Efficiency and Effectiveness
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EXHIBIT 14 Management Process Activities
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Management Processes
Planning
Includes defining goals, establishing strategy, anddeveloping plans to coordinate activities
Organizing
Includes determining what tasksto be done, who is to do them,how the tasks are to begrouped, who reports towhom, and wheredecisions are to be made
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Management Processes (contd)
Leading
Includes motivating employees, directing theactivities of others, selecting the most effectivecommunication channel, and resolving conflicts
Controlling The process of monitoring performance,
comparing it with goals, andcorrecting any significantdeviations
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EXHIBIT 15 Mintzbergs Managerial Roles
InterpersonalFigureheadLeader
Liaison
Informational
Monitor
Disseminator
Spokesperson
Decisional
EntrepreneurDisturbance handler
Resource allocator
Negotiator
Source: The Nature of Managerial Work(paperback) by H. Mintzberg. Table 2, pp. 9293.
Reprinted by permission of Pearson Education Inc., Upper Saddle River, NJ.
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Is The Managers Job Universal?
Level in the Organization
Do managers manage differently based on wherethey are in the organization?
Profit versus Not-for-profit
Is managing in a commercial enterprise differentthan managing in a non-commercial organization?
Size of Organization
Does the size of an organization affect how
managers function in the organization?
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EXHIBIT 16 Distribution of Time per Activity by Organizational Level
Source:Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll,
The Job(s) of Management. Industrial Relations4, no. 2 (1965), p. 103.
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EXHIBIT 17 Importance of Managerial Rolesin Small and Large Businesses
Source:Adapted from J. G. P. Paolillo, The Managers Self-Assessments of Managerial Roles: Small vs. Large Firms,
American Journal of Small Business(JanuaryMarch 1984) pp. 6162.
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Is The Managers Job Universal? (contd)
Management Concepts and National Borders
Is management the same in all economic, cultural,social and political systems?
Making Decisions and Dealing with Change
Do managers all make decisions and deal withchange in the same ways?
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General Skills for Managers
Conceptual
Skills
Political
skills
Interpersonal
skills
Technical
skills
Skills of SuccessfulManagers
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Steps in Mentoring
1. Communicate honestly and openly with yourprotg.
2. Encourage honest and open communication from
your protg.
3. Treat the relationship with the protg as alearning opportunity.
4. Take the time to get to know your protg.
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Specific Skills for Managers
Behaviors related to a managers effectiveness:
Controlling the organizations environment and its
resources.
Organizing and coordinating.
Handling information.
Providing for growth and development.
Motivating employees and handling conflicts.
Strategic problem solving.
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EXHIBIT 18 Standards Overview of Managerial Competencies
Management CompetenciesA cluster of knowledge, skills,
and attitudes related toeffective managerialperformance.
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How Much Importance Does TheMarketplace Put On Managers?
Good (effective) managerial skills are a scarcecommodity.
Managerial compensation packages are one
measure of the value that organizations place onmanagers.
Management compensation reflects the marketforces of supply and demand.
Management superstars, like superstar athletes inprofessional sports, are wooed with signing bonuses,interest-free loans, performance incentive packages, andguaranteed contracts.
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Why Study Management?
We all have a vested interest in improving the
way organizations are managed.
Better organizations are, in part, the result of goodmanagement.
You will eventually either manage or bemanaged.
Gaining an understanding of the managementprocess provides the foundation for developing
management skills and insight into the behavior ofindividuals and the organizations.
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How Does Management RelateTo Other Disciplines?
Sociology
PsychologyPolitical Science
Economics Philosophy
Anthropology
Management
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History ModuleTHE HISTORICAL ROOTS OF CONTEMPORARYMANAGEMENT PRACTICES
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The Pre-modern Era
Ancient Massive Construction Projects
Egyptian pyramids
Great Wall of China
Michelangelo, the Manager.
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Adam Smiths ContributionTo The Field Of Management
Wrote the Wealth of Nations (1776)
Advocated the economic advantages thatorganizations and society would reap from the
division of labor: Increased productivity by increasing each workers
skill and dexterity.
Time saved that is commonly lost in changing
tasks.The creation of labor-saving inventions and
machinery.
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The Industrial Revolutions Influence
On Management Practices
Industrial Revolution
Machine power began to substitute for human power
Lead to mass production of economical goods
Improved and less costly transportation systemsbecame available
Created larger markets for goods.
Larger organizations developed to serve larger
markets Created the need for formalized management practices.
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Classical Contributions
Classical Approach
The term used to describe the hypotheses of thescientific management theorists and the generaladministrative theorists.
Scientific management theorists
Fredrick W. Taylor, Frank and Lillian Gilbreth,
and Henry Gantt
General administrative theorists
Henri Fayol and Max Weber
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Scientific Management
Frederick W. Taylor
The Principles of Scientific Management (1911)
Advocated the use of the scientific method to define the one
best way for a job to be done
Believed that increased efficiency could be achievedby selecting the right people for the job and trainingthem to do it precisely in the one best way.
To motivate workers, he favored incentive wageplans.
Separated managerial work from operative work.
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EXHIBIT HM1 Taylors Four Principles of Management
1. Develop a science for each element of an individualswork, which replaces the old rule-of thumb method.
2. Scientifically select and then train, teach, and develop theworker. (Previously, workers chose their own work andtrained themselves as best they could.)
3. Heartily cooperate with the workers so as to ensure thatall work is done in accordance with the principles of thescience that has been developed.
4. Divide work and responsibility almost equally betweenmanagement and workers. Management takes over allwork for which it is better fitted than the workers.(Previously, almost all the work and the greater part of theresponsibility were thrown upon the workers.)
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Scientific Management Contributors
Frank and Lillian Gilbreth
Bricklaying efficiency improvements
Time and motion studies (therbligs)
Henry Gantt
Incentive compensation systemsGantt chart for scheduling work operations
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General Administrative Theory
General Administrative Theorists
Developed general theories of what managers doand what constitutes good management practice
Henri Fayol (France)
Fourteen Principles of Management: Fundamental oruniversal principles of management practice
Max Weber (Germany)
Bureaucracy: Ideal type of organization characterized bydivision of labor, a clearly defined hierarchy, detailed rulesand regulations, and impersonal relationships
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EXHIBIT HM2 Fayols Fourteen Principles of Management
1. Division of Work
2. Authority
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination ofIndividual Interests tothe General Interest
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenureof Personnel
13. Initiative
14. Esprit de Corps
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EXHIBIT HM3 Webers Ideal Bureaucracy
1. Division of Labor
2. Authority Hierarchy
3. Formal Selection4. Formal Rules and Regulations
5. Impersonality
6. Career Orientation
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Human Resources Approach
Robert Owen
Scottish businessman and reformer who advocatedfor better treatment of workers.
Claimed that a concern for employees was profitablefor management and would relieve human misery.
Hugo Munsterberg
Created the field of industrial psychologythescientific study of individuals at work to maximizetheir productivity and adjustment.
Psychology and Industrial Efficiency (1913)
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Human Resources Approach (contd)
Mary Parker Follett
Recognized that organizations could be viewed fromthe perspective of individual and group behavior.
Believed that individual potential could only bereleased by group association.
Chester Barnard
Saw organizations as social systems that requirehuman interaction and cooperation.
Expressed his views on the acceptance of authorityin his book The Functions of the Executive (1938).
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Hawthorne Studies
A series of studies done during the 1920s and
1930s that provided new insights into groupnorms and behaviors
Hawthorne effect
Social norms or standards of the group are thekey determinants of individual work behavior.
Changed the prevalent view of the time thatpeople were no different than machines.
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Human Relations Movement
Based on a belief in the importance of
employee satisfactiona satisfied worker wasbelieved to be a productive worker.
Advocates believed in peoples capabilities and
were concerned with making managementpractices more humane.
Dale Carnegie
Abraham Maslow
Douglas McGregor
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The Quantitative Approach
Operations Research (Management Science)
Evolved out of the development of mathematical andstatistical solutions to military problems during WorldWar II.
Involves the use of statistics, optimization models,
information models, and computer simulations toimprove management decision making for planningand control.
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Social Events That ShapedManagement Approaches
Classical Approach
The desire for increased efficiency of labor intensiveoperations
Human Resources Approach The backlash to the overly mechanistic view of
employees held by the classicists.
The Great Depression.
The Quantitative Approaches
World War II armament production
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What is the Process Approach?
Management Theory Jungle (Harold Koontz)
The diversity of approaches to the study ofmanagementfunctions, quantitative emphasis,human relations approacheseach offer somethingto management theory, but many are only
managerial tools.
Process Approach
Planning, leading, and controlling activities arecircular and continuous functions of management.
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The Systems Approach
Defines a system as a set of interrelated and
interdependent parts arranged in a manner thatproduces a unified whole
Closed system : a system that is not influenced byand does not interact with its environment
Open system: a system that dynamically interactswith its environment
Stakeholders: any group that is affected by
organizational decisions and policies
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EXHIBIT HM4 The Organization and Its Environment
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The Contingency Approach
The Contingency Approach
Replaces more simplistic systems and integratesmuch of management theory.
Four Contingency Variables
Organization size (coordination) Routineness of task technology (task complexity
dictates structure)
Environmental uncertainty (change management)
Individual differences (managerial styles ,motivational techniques, and job design)
Exhibit HM-5
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EXHIBIT HM5 Four Popular Contingency Variables
Organization Size
Routineness of Task TechnologyEnvironmental Uncertainty
Individual Differences