What is management?
Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives.
The power and responsibility to make decisions to manage an enterprise.
7 Functions of Managers
Sequence of steps to develop a broad outline of the activities required to accomplish the objectives of the organization in the most effective way.
Most essential part of management!!!
4 Basic Steps to Develop Organizations Structure
1. Determine and define objectives
2. Analyze and classify work to be done
3. Describe in detail work to be done
4. Determine and specify the relationship between and among workers and management
-Function of employing and training
-Maintaining favorable work conditions
-Obtain the best available people for the organization
-Continuous process of making decisions
-Conveying those decisions to employees
-Ensure appropriate action
-Delegation of responsibility
Interrelating various parts of work so they flow smoothly
Keeping supervisors, managers, and subordinates informed
-Responsibility of employees through records, reports, inspection, etc
-Evaluations of work done and performance
Fiscal planning, accounting, and controlling
3 Challenges of Managers
1. Increase work productivity
2. Decrease production costs
3. Maintain employee morale
4 Predominant Theories of Management
1. Classical or traditional
2. Human Relations
3. Management science or operations research
4. The modern or systems approach
Classical Theory of Management
-Emphasis on structure, work, organization, authority and high productivity…not on people.
-Belief that there is one best way to do something.
-Pay employees, organize the workplace, workers would be productive.
Who organized the Classical Theory of Management?
Fred Taylor, Max Weber, The Gilbreths, and Henry Fayol
“The father of scientific management”
He said that coordination is management’s main responsibility.
He gave 2 main goals of management:
1. to increase productivity
2. to make the job easier
Identified the activities of the business, defined management and general principles related to people and organizational structure.
Henry Fayol’s 4 Main Principles
1. Division of work – essential for efficiency
2. Unity of Command – each person should be accountable to only one superior
3. Scalar chain- authority and responsibility flow in a direct vertical line from highest to lowest
4. Order – people and materials must be in appropriate places at the proper time for max efficiency
Classical Theory- 4 Pros
1. Taylor’s ideas were good for productivity
2. Used in military
3. Managers that approach things this way are clear on what is expected of the employees
4. Employees may not want to be involved in decision making, so this style could be good.
Classical Theory- 2 Cons
1. Too mechanistic
2. Modern theorists say they did not recognize differences in organizations and people
Human Relations Theory
Views the organization as a social system and recognizes the existence of the informal organization. Introduced the idea of focusing on people and the behavioral sciences as an important part of organization theory.
Hawthorne Experiments: Elton Mayo, 1930s and 40s
Managers consulted workers about work-place, they talked and also made lighting level improvements.
Both groups improved productivity.
Similar experiments found productivity always improved, no matter what was changed.
Conclusion of Hawthorne Experiments
People are not the rational and economic-focused beings assumed by classical theorists. Social interaction is important, and people work well if they feel valued and they feel valued when asked their opinion.
What do Human Relations theorists believe about organizations?
That organizations are social systems and suggest managers should praise employee participation. Recognized the existence of the informal organization. Said employee participation in decision making seen to yield positive effects on productivity and morale.
Abraham Maslow’s Hierarchy of Needs
1. Biological: Hunger, warmth, rest
2. Safety: Protection from danger
3. Socialization: Love, affection, affiliation
4. Self-esteem: Autonomy, dignity, respect
5. Self-actualization: Realize one’s potential through competence, creativity, and achievement
Theories X and Y developer
Douglas McGregor. Thinks every companies follows one or the other
-According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can theory X managers rely heavily on threat and coercion to gain their employee’s compliance
-The Theory X manager tends to believe that everything must end in blaming someone.
-management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties.
Theory Y managers
-Believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation
-More likely than Theory X managers to develop the climate of trust with employees that is required for human resource development.
Human Relations Theory: 4 Pros
1. Tried to move away from so much structure
2. Helped managers to become more sensitive to people
3. Helped managers to see that employees could be self-motivated
4. Put the responsibility for productivity on the idea that employees should have a say in how things are done when possible.
Human Relations Theory: Con
workers were not always more productive
Management Science Theory
-Combines some of the ideas from classical and human relations theory
-Emphasizes research on operations and the use of quantitative techniques to help managers make decisions
Management Information System
-Methods of using technology to help organizations better manage people and make decisions
-Used to gather and analyze information about various aspects of the organization
such as personnel, sales, inventory, production or other applicable factors.
-Used to evaluate the performance of the organization as a whole, certain departments or even individuals.
Program Evaluation and Review Technique (PERT)
-Used when developing the project schedule for very large, complex, and one time projects where usually no historical records are available to be reviewed.
-where time is a more important factor than the cost.
-have to plan your work based on the milestones.
6 Benefits of PERT
1. Very little or no historical schedule data are available
2. Makes planning easier
3. Shows the critical path
4. Reduces the uncertainty from the project
5. Gives a more accurate project completion date
6. Helps management to optimize the resources
3 Limitations of PERT
1. Requires subjective time analysis of activities
2. Assumes that all resources will be available to the project
3. Updating, amending, and maintaining the PERT diagram can be time and cost consuming
Modern Management Theories
-Evolved due to the complex nature of today’s organizations
-Integration of classical, human relations, and management science
3 Modern Management Theories
1. Systems theory
2. Contingency Theory
3. Chaos Theory
– A system can be looked at as having inputs, processes, outputs and outcomes.
-Systems share feedback among each of these four aspects of the systems.
Systems Theory: Inputs
raw materials, money, technologies and people
Systems Theory: Outputs
products or services to a market
Systems Theory: Outcomes
enhanced quality of life or productivity for customers/clients, productivity
Systems Theory: Feedback
information from human resources carrying out the process, customers/clients using the products, etc.
-Asserts that when managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand
-recognizes that events are rarely controlled.
-Managers have to work with the process and be flexible to changing circumstances
Authorizing employees to do their work without the need to seek approval from supervisors
-gives a sense of responsibility and -achievement to employee
-reduces delays in flow of work
-reduces work-load on manager
The capacity or potential to influence and affect others beliefs, attitudes, and courses of action.
5 Bases of Power: French and Raven 1959
Based on followers’ identification and liking for the leader
Based on followers’ perceptions of the leader’s competence.
Associated with having status or formal job authority
Derived from having the capacity to provide rewards to others
Derived from having the capacity to penalize or punish others