-Fundamentals of Management

8/10/2019 -Fundamentals of Management

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FUNDAMENTALS

OF MANAGEMENT

Dr.

Emer

Faraon

, M.D., M.B.A.

DHPA, UP College of Public Health

HPAd

201 and PH 186 Lectures

SY 2013

-

2014


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Our Learning Objectives:

Definition and Concept of Management

Four Functions / Elements of Management

Overview of the Evolution of Management Thought

(Basic Timeline and Categorization)

Modern Approaches to Management

What You Should Really Know

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8 November

On 8 November, Typhoon Haiyan hitthe Philippines.

It was a super-typhoon one of

the strongest storms ever.

Many people died. Homes, schoolsand roads were destroyed.


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Only a month ago there wasan earthquake in thePhilippines.

Thousands of people were still

living in tents when thetyphoon struck.

Earthquake


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Historical Background of

Management Ancient Management

Egypt (pyramids) and China (Great Wall)

Venetians (floating warship assembly lines)

Adam Smith Published The Wealth of Nations in 1776

Advocated the division of labor (job

specialization) to increase the productivity of

workers Industrial Revolution

Substituted machine power for human labor

Created large organizations in need of

management


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What is Management?

All managers work in organizations

Organizations

collections of people who work

together and coordinate their

actions to achieve a wide varietyof goals or desired future

outcomes


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Common Characteristics of

Organizations

Goals

Structure

People


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What is Management?

Resources

include people, skills, know-how

and experience, machinery, rawmaterials, computers and IT,

patents, financial capital, and loyal

customers and employees

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What is Management?

Managers

The people responsible for

supervising the use of an

organizations resources to

meet its goals


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Definition of Management

According to the management guru

Peter Drucker, Organization and

coordination of the activities of anenterprise in accordance with certain

policies and in achievement of clearly

defined objectives

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Expansion of the definition (Weihrich

and Koontz)

As Managerspeople carry out the

managerial function of

Planning

Organizing

Leading/DirectingControlling


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Definition of Management

Managementin business

and human organization

activity is simply the act of

getting people together toaccomplish desired goals

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Management Lesson #1

A crow was sitting on a tree, doing nothing all

day. A small rabbit saw the crow, and asked

him, "Can I also sit like you and do nothing all

day long?"The crow answered: "Sure, why not." So, the

rabbit sat on the ground below the crow, and

rested. All of a sudden, a fox appeared,jumped on the rabbit and ate it.


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Management Lesson:

To sit and do nothing,you must be sitting

very, very high up.


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WHAT IS MANAGEMENT?

An artmore than a scienceDeductive Method: General to Particular

Inductive Method: Particular to General

Inherently social in nature

Getting things done through others

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Simplest Definition

Management

The planning, organizing,

leading, and controlling of

human and other resources to

achieve organizational goalseffectively and efficiently


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FOUR FUNCTIONS

First stated by Henri Fayol (1841-1925)- French CEO

Now stated plainly as:

1. Planning

2. Organizing

3. Directing/Leading

4. Controlling

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EVOLUTION OF

MANAGEMENT THOUGHT


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MAJOR CLASSIFICATION OF

MANAGEMENT APPROACHES

CLASSICAL

APPROACH

SCIENTIFIC

MANAGEMENT

BUREAUCRATIC

MANAGEMENTADMINISTRATIVE

MANAGEMENT

BEHAVIORAL

APPROACH

HAWTHORNE

STUDIES

MASLOWS

NEEDHIERARCHY

THEORY X AND

THEORY Y

QUANTITATIVE

APPROACH

MANAGEMENT

SCIENCE

OPERATIONS

MANAGEMENTMANAGEMENT

INFORMATION

SYSTEM

MODERN

APPROACH

THE SYSTEMS

THEORY

CONTINGENCY

THEORYEMERGING

APPROACHES


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Classical Approach to Management

There are 3 classical approaches to

management;

1. Scientific Management

2. Administrative Principles

3. Bureaucratic Organization


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Classical Approach to Management

All 3 Classical Approaches share a common assumption;

People at work act in a rational manner that is

primarily driven by economic concerns

Workers are expected to rationally consider

opportunities made available to them and do

whatever necessary to achieve the greatestpersonal and monetary gain


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26

Classical Approach to

Management


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Scientific Management

Emphasizes careful selection and

training of workers and supervisory

support with an emphasis onimproving efficiency


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Scientific Management

SM has 4 guiding action principals;

1. Develop rules of motion, standardized work

implements, and proper working conditions for every

job2. Carefully select workers with the right abilities for the

job

3. Carefully train workers and provide proper incentives4. Support workers by carefully planning their work and

removing obstacles


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Administrative Principles

Fayol developed 14 guiding principles ofmanagement, that he felt should be taught to allaspiring managers;

1. DIVISION OF LABOR - specialization of work willresult in continuous improvement in skills and

methods2. AUTHORITY - managers and workers need to

understand that managers have the right to giveorders

3. DISCIPLINE - behavior needs to be grounded inobedience and derived from respect

4. UNITY OF COMMAND - each employee shouldhave one, and only one manager


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5. UNITY OF DIRECTION - the leader generates a singleplan, and all play their part in executing it

6. SUBORDINATION OF INDIVIDUAL INTERESTS - whileat work, only work issues should be undertaken orconsidered

7. REMUNERATION - all should receive fair paymentfor their work; employees are valuable and notsimply an expense

8. CENTRALIZING - decisions are primarily made from

the top9. CONTROL - organizations must have a clear, formal

chain of command running from the top to thebottom of the organization


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10.ORDER - there is a place for everything andall things should be in there place

11.EQUITY - managers should be kind and fair

12.PERSONNEL TENURE - unnecessaryturnover is to be avoided, and there shouldbe lifetime employment for good workers

13.INITIATIVE - undertake work with zeal and

energy14.ESPRIT DE CORPS - work to build harmony

and cohesion among personnel


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What can we learn from Fayol?

He believed that

Management can be taught

Management can be seen as

a variety of activities oractions that can be worked

on in order to improve ones

managerial skill set


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Bureaucratic Organization

Max Weberdeveloped the idea of the Bureaucracy

because he felt that many organizations largely

failed to reach their performance potential

A BUREAUCRACY is an ideal, intentionally rational,

and very efficient form of organization, based on

principles of logic, order, and legitimate authority.


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Characteristics of Bureaucratic Organizations

CLEAR DIVISION OF LABOR - jobs are well defined, and workersbecome highly skilled at their job

CLEAR HIERARCHY OF AUTHORITYauthority and responsibilityare well defined for each position, and each position reports to ahigher level

FORMAL RULESwritten guidelines direct behavior and decisionsin jobs, and written files are kept for historical record

IMPERSONALITYrules and procedures are impartially and

uniformly applied, with no special treatment

CAREERS BASED ON MERITworkers are selected and promotedon ability and performance


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The term bureaucracy is now often used

with negative connotations

Some possible disadvantages of bureaucracy

include:

Excessive paperwork or red tape

Slowness in handling problems

Rigidity in the face of shifting needs

Resistance to change

Employee apathy (a state of indifference)


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CLASSICAL

APPROACH

SCIENTIFIC

MANAGEMENT

BUREAUCRATIC


MANAGEMENT

BEHAVIORAL

APPROACH

HAWTHORNE

STUDIES

MASLOWS

NEEDHIERARCHY

THEORY X AND

THEORY Y

QUANTITATIVE

APPROACH

MANAGEMENT

SCIENCE

OPERATIONS


INFORMATION

SYSTEM

MODERN

APPROACH

THE SYSTEMS

THEORY

CONTINGENCY

THEORYEMERGING

APPROACHES


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Behavioral (Human Resource)

Approaches to Management

There are 4 behavioral approaches to management;

1. The Hawthorne Studies

2. Maslows Theory of Human Needs

3. McGregors Theory X and Theory Y

All 4 Behavioral Approaches share a common assumption;

People at work are assumed to seek satisfying social

relationships, respond to group pressures and search for

personal fulfillment


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The Hawthorne Studies

A series of productivity experiments conducted at Western

Electric from 1927 to 1932.

Experimental findings

Productivity unexpectedly increased under imposed adverse

working conditions.

The effect of incentive plans was less than expected.

Research conclusion

Social norms, group standards and attitudes more stronglyinfluence individual output and work behavior than do

monetary incentives.


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The Hawthorne Studies

Lessons Learned

Peoples feelings, attitudes and relations with co-workersaffected their work

Group influence plays an important role in the decisions

made by individuals The HAWTHORNE EFFECT is the tendency of people who

are singled out for special attention to perform as expectedmerely because of the expectations created by the situation

Set the stage for what has now developed into the field of

ORGANIZATIONAL BEHAVIOR; the study of individuals andgroups in organizations


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Abraham Maslow

His theory rested on these assumptions.

Physiological needs;

Safety or security needs

Belongingness or social needs;

Esteem or status needs

Self actualization or self-fulfillment needs.


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Maslows Need Hierarchy

Self actualization needs

Esteem needs

Social needs

Safety needs

Physiological needs


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Maslows Theory of Human Needs

Maslows theory implies that

managers who help people satisfytheir important needs at work will

achieve productivity


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Douglas Mcgregor

Theory X Theory Y

Most People dislike

work

Work is a natural activity

like play.

Most People must becoerced and threatened

before they work.

People are capable of selfdirection and self control

Most people prefer tobe directed. They avoid

responsibility and have

little ambition.

People become committedto organizational

objectives if they are

rewarded in doing so.


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Chris Argyris

MaturityImmaturity theory

People progress from a stage of

immaturity and dependence to a state ofmaturity and independence.

Model I and Model II organization

analysis.1. Model I organization are manipulative

2. Model II organization are open to learning


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CLASSICAL

APPROACH

SCIENTIFIC

MANAGEMENT

BUREAUCRATIC


MANAGEMENT

BEHAVIORAL

APPROACH

HAWTHORNE

STUDIES

MASLOWS

NEEDHIERARCHY

THEORY X AND

THEORY Y

QUANTITATIVE

APPROACH

MANAGEMENT

SCIENCE

OPERATIONS


INFORMATION

SYSTEM

MODERN

APPROACH

THE SYSTEMS

THEORY

CONTINGENCY

THEORYEMERGING

APPROACHES


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Quantitative Approach

It includes the application of statistics,

optimization models, information models and

computer simulations. More specifically, this

approach focuses on achieving organizational

effectiveness. Three main branches:

Management Science

Operations Management and Management Information Systems.

Q tit ti A h t


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248

Quantitative Approach to

Management

Quantitative Approach

Also called operations researchor management

science

Evolved from mathematical and statisticalmethods developed to solve WWII military

logistics and quality control problems

Focuses on improving managerial decision makingby applying:

Statistics, optimization models, information models,

and computer simulations



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CLASSICAL

APPROACH

SCIENTIFIC

MANAGEMENT

BUREAUCRATIC


MANAGEMENT

BEHAVIORAL

APPROACH

HAWTHORNE

STUDIES

MASLOWS

NEEDHIERARCHY

THEORY X AND

THEORY Y

QUANTITATIVE

APPROACH

MANAGEMENT

SCIENCE

OPERATIONS


INFORMATION

SYSTEM

MODERN

APPROACH

THE SYSTEMS

THEORY

CONTINGENCY

THEORYEMERGING

APPROACHES

Modern Approaches


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Modern Approaches

to Management

Systems Theory

Contingency Theory


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Systems Theory

Resources

Labor

Materials

Capital

Machinery

Information

Managerial and

Technological

Abilities Planning

Organizing

Staffing

Leading

Controlling

Technology

Goods

Services

Profits and

losses

Employee

satisfaction

Inputs Transformation process Outputs

Feedback


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Contingency Theory

Systems Viewpoint

How the parts fits

together

Individual

GroupOrganization

environment

Behavioral Viewpoint

How managers influence

others

Interpersonal Roles

Informational Roles

Decisional Roles

Traditional

viewpoint

What managers

do

Plan

OrganizeLead

Control

Contingency

Viewpoint

Managers

use of otherview points to

solve

problems

External

environment

Technology

Individuals


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SUMMARY- What You Should Know

You will be responsible for a group of

people that you probably didnt pick, may

not like, might have nothing in commonwith, and who perhaps wont like you

much

You will most likely be a shock absorber

between top management and your staff


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Get your people emotionally involved always

towards goal achievement

Make everyone realize what a team is and

how it functionsa team has a common goal

Create realistic goals, and teach everyone how

to achieve them

Hold effective and efficient meetings! Begin all

meetings on time. Never wait for anyone!


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Strive to create and train new

leaders.

Establish your boundaries: be firm oninappropriate behavior


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Lessons

A turkey was chatting with a bull. "I would love tobe able to get to the top of that tree," sighed the

turkey, "but I haven't got the energy.

"Well, why don't you nibble on some of my

droppings?" replied the bull.

"They're packed with nutrients." The turkey pecked

at a lump of dung and found that it actually gave

him enough strength to reach the first branch of thetree.


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Lessons

The next day, after eating some more dung, he

reached the second branch. Finally after a

fortnight, there he was proudly perched at the

top of the tree. Soon he was spotted by afarmer, who promptly shot the turkey out of

the tree.


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Management Lesson:

Bullshit might get you

to the top, but it won't

keep you there.



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Lastly, it both an art and a science, but as

far as I am concerned, it is more ofan art than a science.


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THANK YOU FOR LISTENING

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-Fundamentals of Management