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management CHAPTER 1
Introduction to
Chapter Outline: • 1.1 Definition of organization and management
• 1.2 Measuring managerial performance
• 1.3 Management process functions and activities
• 1.4 Managerial levels, skills and roles
• 1.5 Evolution of management thoughts
1.1 definition of organization & management
management:
a broader definition
The process of administering and coordinating resources effectively, efficiently, and in an effort to achieve the goals of
the organization (Lewis)
management:
the classic definition
The art of getting things done through people ( Marry Parker Follet)
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Definition of organization
& manager
Organization:
An organization is a group of individuals who work together toward common goals (Lewis)
Manager:
“An organizational member who is responsible for planning, organizing, leading, and controlling the activities of the organization
so that its goals are achieved” (Lewis)
measuring
managerial performance;
Effectiveness
Efficiency
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High
Lo
w
Poor Good
A B
C D
Go
al
Att
ain
me
nt
(Eff
ect
ive
ne
ss)
Resource Utilization (Efficiency)
Performance Effectiveness &
Performance Efficiency As Foundations For Productivity
& Managerial Success
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Management is a process that contains several functions. It comprises of the activities of Planning, Organizing, Leading & Controlling (POLC).
ACHIEVING THE ORGANIZATION’S
STATED PURPOSE (GOALS/ MISSION)
PLANNING
ORGANIZING
LEADING
CONTROLLING
LEADS TO
management process function
(polc)
1.3 Management process, functions and activities
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1.4 Managerial levels, skills and roles
Top Managers
Middle Managers
First-Line Managers
Nonmanagerial personnel
Managerial Levels:
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Manager
By their level
in the organization
Top managers
Middle manager
First-line manager
By the range of organization
activities they are responsible
Functional manager
General manager
Responsible for a single area of activity. E.g.:
Finance manager, Marketing manager
Responsible for more complex units that include many functional areas of activity. E.g.: Plant
manager
Type of Managers:
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• There are 3 basic skills required by managers:
3 Basic skills
Technical skills (T) Human skills (H) Conceptual skills (C)
Management Skills:
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Top
Middle
Lower
H
H
H
T
T
T
C
C
C
H Human skill
T C Technical skill
Conceptual skill
Relative Skills Needed For
Effective Performance At Different Levels Of
Management
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Technical
First-line Management (Production Supervisor)
Human
Conceptual
Technical
Middle Management (Marketing Manager)
Human
Conceptual
Technical
Top-Level Management (CEO President)
Human
Conceptual
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Managerial Roles:
Interpersonal roles
Decisional roles
Informationalroles
Figurehead Leader Liaison
Monitor Disseminator Spokesperson
Enterpeneur Resource Allocator Negotiator
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1.5: Evolution of management thoughts
Environmental factors influencing
management thought
Economic influences Social influences
Political influences technological influences
global influences
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Chronological Development
of Management Thought:
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Focuses on the individual
worker’s productivity
Focuses on the
functions of
management
Focuses on the
overall organizational
system
Classical Perspective
on management:
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• Focus on the productivity of the individual workers.
• 3 areas of focus:
(I) Task Performance
(II) Supervision
(III) Motivation
Scientific Management: Frederick W. Taylor (1856-1915)
Scientific management:
The Gilbreths
Frank Glibreth
Lilian Gilbreth
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• Henri Fayol (1841-1925)was the first to recognize that successful managers had to understand the basic managerial functions.
• Developed a set of 14 general principles of management.
• Fayol’s managerial functions of planning, leading, organizing and controlling are routinely used in modern organizations.
Administrative Management:
Henri Fayol (1841 – 1925)
Fayol’s general principles of management
1. Division of work 2. Centralization
3. Authority 4. Scalar chain
5. Discipline 6. Order
7. Unity of command 8. Equity
9. Unity of direction 10. Stability of tenure
11. Interest of the organization 12. Initiative
13. Remuneration of personal 14. Esprit de corps
• Focuses on the overall organizational system.
• Bureaucratic management is based upon:
Firm rules
Policies and procedures
A fixed hierarchy
A clear division of labor
Bureaucratic Management:
Max Weber (1864 – 1920)
A German sociologist and historian who envisioned a system of management that would be based upon impersonal and rational behavior – the approach to
management now referred to as “bureaucracy”. Division of labor
Hierarchy of authority Rules and procedures
Impersonality
Employee selection and promotion.
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Focused on rational behavior
Classical Perspective
Acknowledged the importance of human
behavior
Behavioral Perspective
vs.
Classical versus Behavioral Perspective
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• Managers were being presented with more evidence that human behaviour has a significant impact on the actions of workers.
• Follet concluded that a key to effective management was coordination
• Hawthorne effect – the phenomenon whereby individual or group performance is influenced by human behaviour factors.
• Theory X – advocates that a manager percives that subordinates have an inherent dislike of work and will avoid it if possible.
• Theory Y- advocates that manager perceives that subordinates enjoy work and will again satisfaction from their jobs.
Behavioral Perspective
The Quantitative Perspective
Characterized by its use of mathematics, statistics, and other quantitative techniques for management decision making and problem solving.
1. A decision-making focus – require some direct action on the part of management
2. measurable criteria – select some alternative course of action by making comparison
3. quantitative model – make use of mathematical symbols, equations and formulas
4. The use of computers MGT162/UiTMJOHOR/2013
Systems Perspective:
• An approach to problem solving based that attacks complex systems by breaking them down into their constituent elements
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• A view that proposes that there is no one best approach to management for all situations.
• Asserts that managers are responsible for determining which managerial approach is likely to be most effective in a given situation.
• This requires managers to identify the key contingencies in a given situation.
The Contingency Perspective
Blending Components
into a Contingency Perspective
• Joan Woodward’s Research
• Discovered that a particular management style is affected by the organization’s technology.
• Identified and described three different types of technology:
• Small-batch technology
• Mass-production technology
• Continuous-process technology
An Example of the
Contingency Perspective
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