Download What is management?

Management Practices and
Organizational Behaviour
Who is a Manager?
A manager is a person responsible for the work
performance of group members.
What is management?
The process of using organizational resources to
achieve organizational objectives through planning,
organizing and staffing, leading, and controlling.
The Importance of Interpersonal Skills
• Understanding OB helps determine manager effectiveness
– Technical and quantitative skills are important
– But leadership and communication skills are
CRITICAL
• Organizational benefits of skilled managers
– Lower turnover of quality employees
– Higher quality applications for recruitment
– Better financial performance
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Management Art or Science?
Management is both art and science.
• The Science of Management
Assumes that problems can be approached using rational,
logical, objective, and systematic ways.
Requires technical, diagnostic, and decision-making skills
and techniques to solve problems.
•The Art of Management
Decisions are made and problems solved using a blend of
intuition, experience, and personal insights.
Requires conceptual, communication, interpersonal, and
time-management skills to accomplish the tasks
associated with managerial activities.
The extent to which managers perform the functions of
management - planning, organizing, directing, and
controlling - varies by level in the management hierarchy.
DECIDE
DIRECT
DEAL
DO
The Management Process
Management Functions
Control
Lead
Plan
Organize
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Management Functions: Plan
Control
Plan
Lead
Organize
A process that includes defining
goals, establishing strategy,
and developing plans to
coordinate activities.
As managers advance, they do
this function more often.
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Management Functions:
Organize
Control
Plan
Lead
Organize
Determining what tasks are to
be done, who is to do them,
how the tasks are to be
grouped, who reports to whom,
and where decisions are to be
made.
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Management Functions: Lead
Control
Lea
d
Plan
Organize
A function that includes
motivating employees,
directing others, selecting the
most effective
communication channels,
and resolving conflicts.
It is about PEOPLE!
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Management Functions:
Control
Control
Lead
Lead
Organize
Monitoring performance,
comparing actual performance
with previously set goals, and
correcting any deviation.
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Mintzberg’s Managerial Roles
• Discovered ten managerial roles
• Separated into three groups:
– Interpersonal
– Informational
– Decisional
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Mintzberg’s Managerial Roles:
Interpersonal
Mintzberg’s Managerial Roles:
Informational
Mintzberg’s Managerial Roles:
Decisional
Managerial Roles currently emphasized
Managers today emphasize horizontal relationships and
de-emphasize vertical (top-down) relationships.
OLD MANAGER
Thinks of self as manager or
boss.
NEW MANAGER
Thinks of self as team leader
or internal consultant.
Follows the chain or
command
Deals with anyone necessary
to get the job done
Makes most decisions alone
Invites others to join in
decision making
Demands long hours of
working
Demands results
Management Skills:
In order to perform the functions of management and to assume
multiple roles, managers must be skilled.Robert Katz identified
three managerial skills that are essential to successful
management:
•technical,
•human, and
•conceptual.
A manager's level in the organization determines the relative
importance of possessing technical, human, and conceptual
skills.
oTechnical Skills involves process or technique knowledge and
proficiency. Managers use the processes, techniques and tools of a
specific area.
oHuman skill involves the ability to interact effectively with
people. Managers interact and cooperate with employees.
oConceptual skill involves the formulation of ideas. Managers
understand abstract relationships, develop ideas, and solve
problems creatively.
oThus, technical skill deals with things, human skill concerns
people, and conceptual skill has to do with ideas.
EVOLUTION OF MANAGEMENT
Management in antiquity
Organized endeavors directed by people responsible for planning,
organizing, leading, and controlling activities have existed for
thousands of years.
E.g.The Egyptian Pyramids and the Great wall of China.
Another example is of Roman Catholic Church. Its highest
authority is Pope. They have followed a simple hierarchy that has
remained unchanged for almost two thousand years.
Thus management has been practiced for a long time!
PRE-SCIENTIFIC MANAGEMENT
Adam Smith (18th century economist)
 Observed
that firms manufactured pins in
one of two different ways:
 Craft-style—each
worker did all steps.
 Production—each worker specialized in one step.
Thus introduced the concept of division of labor : The
breakdown of jobs into narrow, repetitive tasks.
o The most important pre-twentieth-century influence on
management was the industrial revolution. Machine power was
rapidly substituted for human power.
o The advent of machine power combined with division of labor
was leading to mass production.
o Managers were needed to forecast demand, coordinate various
activities, maintenance of machinery, and so forth.
The Scientific Management School
Scientific Management Theory:
Body of principles that addresses the
efficiency of workers
Father of Scientific ManagementF.W.Taylor
(1856-1915)
TAYLOR’S PRINCIPLES:
1. The development of a true science of work.
- work study, with an acute emphasis on job
specialisation.
- emphasis on performance-related pay.
2. The scientific selection and development of the worker.
3. The bringing together of the science of work and the
scientifically selected & trained workers.
4. The constant and close co-operation of management and men
- specialization.
- the removal of conflict.
FUNCTIONAL MANAGEMENT
Also called administrative management; emphasizes on the
manager and functions of the management.
•Max Weber
Developed the concept of bureaucracy as a formal system
of organization and administration designed to ensure
efficiency and effectiveness.
•Henri Fayol
 First to systematize organization, using scientific forecasting
and proper method of management.Focus on formal organization
structure that separate basic process of general management.
Human Resources Approach
HAWTHORNE STUDIES:
•Elton Mayo and his colleagues conducted studies at Western
Electric’s Hawthorne Plant and began with an investigation to see
if different lighting affected workers’ productivity.
•The Hawthorne effect is an increase in worker productivity
produced by the psychological stimulus of being singled out and
made to feel important.
Abraham Maslow
He was a humanistic psychologist who proposed a hierarchy of
human needs: physiological needs, safety, social, esteem and selfactualization.
Maslow argued that each level in the hierarchy must be satisfied
before the next could be activated.
Douglas McGregor
He is best known for his formulation of two sets of assumptionsTheory X and Theory Y.
SYSTEMS APPROACH
A system is defined as a set of interrelated or interacting
elements.
Open System
continually
interacts with its
environment
Closed System has
little interaction with its
environment; it receives
very little feedback from
the outside
Organizations are open systems that constantly interact with the
external environment:
Inputs
The people, money,
information, equipment, and
materials required to produce
and organization’s goods or
services
Transformational Processes
The organization’s capabilities in
management and technology that are
applied to converting inputs to outputs
Outputs
The products, services, profits,
losses, employee satisfaction or
discontent, and the like that are
produced by the organization
Feedback
Information about the
reaction of the environment
to the outputs that affect
the inputs
Contingency Approach
There is no optimum way to structure organization. It is
dependent on upon the contingencies of the situation.
•Four popular contingency variables
–Organization size (coordination)
–Routine- ness of task technology (task complexity dictates
structure)
–Environmental uncertainty (change management)
–Individual differences (managerial styles , motivational
techniques, and job design)