Download Briefing: Managers and Management

Managers
and Management
HDCS 4393/4394
Internship
Dr. Shirley Ezell
Managers and Management
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Managers in today’s market must update
tools and principles on a continuous
basis.
Management development is
increasingly global in outlook and places
a high value on contributing to
organizational effectiveness and
competitive advantage.
To be successful a manager must use
and integrated approach, using a
combination of tools and principles.
Management Development
• High performance leading organizations are
increasingly distinguished by 7 features:
1. Linking management development to
business plans and strategies.
2. Being boundless, flat, nonhierarchical
3. Using global and cross cultural orientation
4. Individualizing learning that is focused
within the context of organizational learning
5. Applying customized training aligned with
corporate culture
6. Employing a career development focus
7. Focusing on the development of core
competencies.
Management Affects Everyone
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Our society depends on the goods and
services provided by different types of
organizations that individuals manage.
All organizations are guided and
directed by the decisions of one or
more individuals who are commonly
known as managers.
Management Affects Everyone
Peter Drucker, a nationally recognized
management consultant describes 3 major tasks
of managers as:
1. To decided the purpose and mission of the
organization.
2. To make work productive.
3. To manage social impacts and responsibilities.
Management as a Process
What do statements like “ that is a well-managed
company “ mean? They seem to imply that
management is some type of work
or set of activities and that these
activities are performed quite well
and sometimes not so well.
Management as a Discipline
Classifying management as a discipline
suggests that there is a body of knowledge
that can be learned.
(1) Management is a subject with principles, concepts,
and theories.
(2) A critical purpose of studying management is to learn
how in the process of managing to apply principles,
concepts, and theories of management and this is
particularly emphasized throughout your internship
experiences.
(3) This internship semester you will assume the role of a
manager even if this is not your current position. Why? To
begin to think, analyze, and apply management theories,
concepts and principles within your internship setting. It
is never to early to start thinking like a manager.
Management is also
a Human Activity
• As a human activity management emphasizes
the importance of employees with whom
managers work and whom they manage in
accomplishing an organization’s objectives.
• In organizations, people are the most important
asset. Successful managers understand this and
recognize the need to establish a strong bond
between the organization and the relationships of
the manager and the people they manage.
Management As a Career
• We are emphasizing management in the internship
experiences because we recognize that in today’s
environment which is fast changing and competitive.
We can contribute to successful organizations by
providing students with a solid foundation of
experience in thinking like a manager while they are
learning about the organization.
• Spend this internship semester thinking about the
management theories and principles that can
contribute positively to your organization. And also
think about how you would manage each situation for a
more positive outcome.
Definition of
Management
• The management process is an integrated whole even
though we may describe the process as a series of
separate activities to understand the parts.
• The model we are using identifies the management
functions as planning, organizing, and controlling linked
together by leading.
• What does this mean? Planning determines what
results the organization will achieve, organizing
specifies how it will achieve the results, and controlling
determines whether results are achieved and by using
planning, organizing and controlling managers exercise
leadership.
Organizing
Leading is the management
process that integrates everything
else a manger does.
• Leadership is a difficult concept to define but
means the ability to influence others to
pursue a common goal.
• Think about good leaders that you have
known. Good leaders are typically driven by
an overriding vision or mission.
Organizing
• The organizing, leading, and controlling
functions all come from planning. How?
These functions carry out the planning
decisions.
• These plans may differ in focus from goals for
the short or long term but as a whole these
plans are the primary tools for preparing for
and dealing with changes in the
organization’s environment.
Organizing
• The purpose of the organizing function is to
create a structure of task and authority
relationships to achieve the organization’s
objectives.
• Organizing can be viewed as turning plans
into action and this allows an organization to
function effectively as a cohesive whole.
Controlling
The controlling function of management
requires 3 elements:
1. Established standards of performance.
2. Information that indicates deviations between
actual performance and the established
standards.
3. Action to correct performance that does not
meet these standards.
And Now To The Fun!
Learning How to Manage
• The internship is trying to help you develop your
knowledge, attitudes and skills. And it will teach
you how to apply your formal education so that
once you become a manager you will understand
how to face challenges and make decisions.
• The term management refers to the body of
knowledge, concepts and procedures used by
managers.
• A great deal of management knowledge comes
from the autobiographies of people who practiced
management.
Learning How to Manage
(Cont.)
• Many disciplines have contributed to the
study of management, such as social
scientists, psychologists, sociologists and
others. Consider management a social
phenomenon and the manager to be an
important social resource to scientifically
understand and study. Other professions like
mathematics, accounting, philosophy and
numerous others have contributed
applications to the practice of management.
Learning How to Manage
(Cont.)
• In the end contemporary management
knowledge is the product of 3 basic approaches:
(1) The Classical Approach
(2) The Behavioral Approach
(3) The management Science Approach
The Classical Approach
• The serious study of management began in
the late 19th century with the need to increase
the efficiency and productivity of the
workforce.
• The classical approach to management can
be understood by looking at 2 perspectives:
1. Scientific management concentrated on the
problems of lower-level managers
2. Classical organizational theory focused on
problems of top-level managers.
The Classical Approach (Cont.)
• Think about the context. At the turn of the 20th
century, business was expanding and
creating new products and new markets, but
labor was in short supply.
• The solutions were (1) substitute
capital for labor or (2) use labor
more efficiently.
The Classical Approach
(Cont.)
• Frederick W. Taylor made an important contribution
to scientific management. He observed workers
producing far less than capacity in steel firms. He
recognized their were no studies to determine
expected daily output per worker in the form of
work standards and the relationship between these
standards and wages. Then he tried to find the one
best way to do a job, determining the optimum work
pace, the training of people to do the job properly
and successful rewards for performance but using
an incentive pay system.
The Classical Approach
Taylor’s work lead to the following 4 principles:
Principle 1. Study the way workers perform their tasks,
gather all the informal knowledge that workers possess,
and experiment with ways to improves the performance
of tasks.
Principle 2. Codify the new methods of performing tasks
into written rules and standard operating procedures
(sops).
Principle 3. Carefully select workers so that they possess
skills and abilities that match the needs of the task and
train them to perform according to rules and procedures.
Principle 4. Establish a fair or acceptable level of
performance for a task and then develop a pay system
that awards acceptable performance.
Classical Organizational Theory
Another body of ideas developed at the
same time. While scientific management
focused on the management of work, the
Classical approach focused on the
management of organizations.
• The classical organizational theory focus was on
(1) developing principles that could guide the
design, creation, and maintenance of large
organizations and (2) to identify the basic functions
of managing organizations.
• Engineers were the main contributors to scientific
management while practicing executives were the
major contributors to classical organizational theory.
The Contributors to Classical
Organizational Theory:
Weber and Fayol
• Max Weber was the primary architect of the
theory of the organization as a bureaucracy.
• His view of a bureaucracy was a smoothly
functioning, highly efficient machine in which
each part is tuned to perform its prescribed
function.
Max Weber (Cont.)
Weber believed that an efficient organization
should be based on 5 principles
Principle 1. In a bureaucracy, a manager’s formal authority
comes from the position held in the organization.
Principle 2. In this context people should occupy positions
because of their performance, not because of their
social standing or personal contacts.
Principle 3. The extent of each position’s formal authority
and task responsibilities should be clearly understood.
Principle 4. Positions should be arranged hierarchically to
that authority is exercised effectively and employees
know to whom they are to report and who reports to
them.
Principle 5. Managers must create a will-defined systems
of rules, standard operating procedures, and norms to
control behavior within an organization.
The Contributors to Classical
Organizational Theory:
Weber and Fayol
• Henry Fayol was the other major contributor and
devised his 14 principles of effective management:
Principle 1. Division of Labor: Advocated specialization
and increasing worker’s responsibilities.
Principle 2. Management Authority and Responsibility:
Managers must have the authority to give orders and
be responsible for effectiveness of their departments.
Principle 3. Unity of Command: Employees should
receive orders from and report to only one supervisor.
Henry Fayol (Cont.)
Principle 4. Line of Authority: Restricting the
organization’s number of levels enable it
to act quickly and flexibly.
Principle 5. Centralization: Managers must decide how
much authority to centralize at the top and how much to
give to workers.
Principle 6. Unity of Direction: All workers should be
committed to the same plan of action.
Principle 7. Equity: Workers are expected to perform at
high levels and to be treated with respect and justice.
Principle 8. Order: Order is the methodical arrangement
of jobs to provide the greatest benefits and career
opportunities.
Principle 9. Initiative: Managers must encourage workers
to act on their own to benefit the organization.
Henry Fayol (Cont.)
Principle 10. Discipline: Employees would be
expected to be obedient, energetic and
concerned about the organization’s welfare.
Principle 11. Remuneration: Managers should use reward
systems, profit sharing and bonuses to acknowledge
high performance.
Principle 12. Stability of Tenure of Personnel: Long term
employment helps employees develop the skills to
make significant contributions.
Principle 13. Coordination of Individual Interest to the
Common Interest: Employees subordinate their
individual interest to those of the firm.
Principle 14. Espirit de Corps: Importance of a shared
commitment and enthusiasm in an effective
organization.
Contributions of the Classical Approach
• The greatest contribution of the classical approach
was the identification of management as an
important element of organized society.
• The identification of management functions:
planning, organizing and controlling provided the
basis for training new managers and was a
valuable practice.
• Many management techniques used today: time
and motion analysis, work simplification, incentive
wage systems, production scheduling,
personnel testing, and budgeting are
techniques from the classical approach.
Limitations of the Classical Approach
• One major criticism is that the majority of
insights are to simplistic for today’s complex
organization. The classical approach and the
scientific management approach worked in
organizations that were very
stable and predictable and
today little of that exists.
Behavioral Approach
• The behavioral approach to management has 2
branches: the Human relations approach from the 1950’s
and the behavioral science approach.
• In the human relations approach managers must know
why their subordinated behave as they do and what
psychological and social factors influence them.
• Advocates of this approach try to show how the process
and functions of management are affected by differences
in individual behavior and the influence of groups in the
workplace.
• This approach requires managers to recognize
employees’ need for recognition and social acceptance
and this results in training in human relation skills for
managers.
The Behavioral
Science Approach
• The individuals in the behavioral science branch of
the behavioral approach believe that the human is
more complex than the “economic man” description
of the classical approach and the “social man”
description of the human relations approach.
• The behavioral science approach concentrates
more on the nature of work itself and the degree to
which it can fulfill the human need to use skills and
abilities.
The Behavioral
Science Approach
• Mary Parker Follett (1868-1933) provided
much of the management theories helping
organizations recognize that they could be viewed form
the perspective of individual or group behavior. She was
a social philosopher whose writings provided a more
people-centered view of the organization than the
predominant scientific management writing.
• According to Follett, the manager’s job was to harmonize
and coordinate group efforts and managers and workers
should view themselves as partners in a common project.
Managers would act more from their knowledge of human
behavior than from their formal authority.
The Behavioral Science Approach
• The Hawthorne Studies: a series of research
studies conducted at the Hawthorne Works of
General Electric helped lend support to the
behavioral approach to management theory.
• The research used varying lighting levels in the plant’s
secretarial pool to determine the effects of different levels
on productivity expecting productivity levels to drop when
lighting levels dropped. The Result was surprising:
productivity only dropped when workers could no longer
see well enough to do their work.
• The results showed that the presence of the researchers
was affecting the results because the workers enjoyed the
attention and produced the results they believed the
researchers wanted.
• Summary: The Hawthorne effect was used to describe this
effect of increased productivity due to increased attention.
Contributions of
Behavioral Approach
• Contributions of the Behavioral Approach
include increased use of teams to
accomplish organizational goals, focus
on training and development of employees,
and the use of innovative reward and incentive
systems.
• In addition the focus on modern management
theory resulted in empowering employees through
shared information.
Limitations of the
Behavioral Approach
• The limitations included the difficulty for
managers in problem situations and the fact
that human behavior is complex. This
complicated the problem for managers trying
to use insights from the behavioral sciences
which often changed when different
behavioral scientists provided different
solutions.
The Management
Science Approach
• The Management Science approach is a modern
version of the early emphasis on the “management
of work” in scientific management. It features the
use of mathematics and statistics to aid in resolving
production and operations problems, thus focusing
on solving technical rather than human behavior
problems.
• The management science approach was used in
World War II when the English formed teams of
scientists, mathematicians, and physicist into units
called operations research teams, and today
businesses use these teams to deal with operating
issues.
Contributions of the
Management Science Approach
• Most important contributions are in production
management focusing on manufacturing
production and the flow of material in a plant
and in operations management solving
production scheduling problems, budgeting
problems and maintenance of optimal
inventory levels.
Limitations of the
Management
Science Approach
• The shortfall of this approach is that
management science does not deal with
the people aspect of an organization.
Attempts to Integrate the Three
Approaches to Management
• One attempt to integrating the three approaches to
management is the Systems Approach. The Systems
Approach stresses that organizations must be viewed
as systems in which each part is linked to each other.
• The other approach is the Contingency Approach. The
Contingency Approach stresses that the correctness of
a managerial practice is contingent on how it fits the
particular situation.
• The system’s approach views the elements of an
organization as interconnected and as being linked to
its environment. See the discussion on Compaq.
Attempts to Integrate the Three
Approaches to Management
• It is important to understand that most
organizations must operate as open systems to
survive and use a systems perspective to
management. And the objectives of the individual
parts of the organization must be compromised
for the objectives of the entire firm.
• See the section on Management Focus on Best
Practice and review the critical principles of
customer responsiveness.
Attempts to Integrate the Three
Approaches to Management
• The contingency theorists believe that most workplace
situations are too complex to analyze and control as
the scientific management approach suggests. Paul
Hersey has developed a situationalist theory of
leadership. He believes managers should not ascribe
to one best approach. Instead managers should
identify the appropriate principles, along with relevant
contingency variables and then evaluate these factors.
In summary, the contingency approach involves
identifying the important variables in different
situations, evaluating the variables, and then applying
appropriate management knowledge and principles in
selecting an effective approach to the situation.
Attempts to Integrate the Three
Approaches to Management
• Although both the systems approach and the
contingency approach have developed value
to insights on management. It is early in their
stage of development and the report card is
not complete on how these approaches will
contribute compared to other methods.