Managers and Management

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Managers and Management

• HDCS 4393/4394InternshipDr. Shirley Ezell

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Managers and Management

• Managers in todays 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.

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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.

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Management Affects Everyone

• 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.

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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.

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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.

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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.

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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
  organizations 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.

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Management As a Career

• We are emphasizing management in the internship
  experiences because we recognize that in todays
  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.

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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.

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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.

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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 organizations
  environment.

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Organizing

• The purpose of the organizing function is to
  create a structure of task and authority
  relationships to achieve the organizations
  objectives.
• Organizing can be viewed as turning plans into
  action and this allows an organization to
  function effectively as a cohesive whole.

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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.

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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.

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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.

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Learning How to Manage (Cont.)

• In the end contemporary management knowledge is
  the product of 3 basic approaches
• The Classical Approach
• The Behavioral Approach
• The management Science Approach

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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.

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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.

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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.

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The Classical Approach

• Taylors 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.

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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.

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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.

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Max Weber (Cont.)

• Weber believed that an efficient organization
  should be based on 5 principles
• Principle 1. In a bureaucracy, a managers 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 positions 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.

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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 workers
  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.

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Henry Fayol (Cont.)

• Principle 4. Line of Authority Restricting the
  organizations 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.

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Henry Fayol (Cont.)

• Principle 10. Discipline Employees would be
  expected to be obedient, energetic and
  concerned about the organizations 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.

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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.

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Limitations of the Classical Approach

• One major criticism is that the majority of
  insights are to simplistic for todays 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.

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Behavioral Approach

• The behavioral approach to management has 2
  branches the Human relations approach from the
  1950s 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.

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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.

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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 managers 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.

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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
  plants 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.

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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.

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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.

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The ManagementScience 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.

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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.

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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.

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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 systems approach views the elements of an
  organization as interconnected and as being
  linked to its environment. See the discussion on
  Compaq.

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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.

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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.

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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.