MGT (Management) - Usually, managers must try to minimize the

input of resources to attain the same goal.

Managers and Managing
Effectiveness: A measure of the
Management Key Concepts appropriateness of the goals chosen (are these
Organizations: People working together and the right goals?), and the degree to which they
coordinating their actions to achieve specific are achieved.
goals. - Organizations are more effective when
Goal: A desired future condition that the managers choose the correct goals and then
organization seeks to achieve. achieve them

Management: The process of using Managerial Functions

organizational resources to achieve the - Henri Fayol was the first to describe the four
organization’s goals by managerial functions when he was the CEO of a
- Planning, Organizing, Leading, and Controlling large mining company in the later 1800’s.

Additional Key Concepts - Fayol noted managers at all levels, operating

in a for profit or not for profit organization,
Resources - are organizational assets and must perform each of the functions of:
include: People, Machinery, Raw materials, Planning, organizing, leading, and controlling.
Information, skills, financial capital.
Four Functions of Management
Managers - are the people responsible for
supervising the use of an organization’s Planning - Choose Goals
resources to meet its goals. Organizing - Working together
Achieving High Performance Leading - Coordinate
- Organizations must provide a good or service Controlling - Monitor & measure
desired by its customers.
Planning is the process used by managers to
- David Johnson of Campbell Soup manages his identify and select appropriate goals and
firm to provide quality food products. courses of action for an organization.
- Physicians, nurses and health care 3 steps to good planning
administrators seek to provide healing from
sickness. 1. Which goals should be pursued?

- McDonald’s restaurants provide burgers, fries 2. How should the goal be attained?
and shakes that people want to buy.
3. How should resources be allocated?
Organizational Performance
The planning function determines how
- Measures how efficiently and effectively effective and efficient the organization is and
managers use resources to satisfy customers determines the strategy of the organization.
and achieve goals

Efficiency: A measure of how well resources

are used to achieve a goal.
In organizing, managers create the structure of First-line Managers: responsible for day-to-day
working relationships between organizational operation. They supervise the people
members that best allows them to work performing the activities required to make the
together and achieve goals. good or service.

Managers will group people into departments Middle Managers: Supervise first-line
according to the tasks performed. Managers managers. They are also responsible to find the
will also lay out lines of authority and best way to use departmental resources to
responsibility for members. achieve goals.

An organizational structure is the outcome of Top Managers: Responsible for the

organizing. This structure coordinates and performance of all departments and have
motivates employees so that they work cross-departmental responsibility. They
together to achieve goals. establish organizational goals and monitor
middle managers.
-

In Leading, managers determine direction,

state a clear vision for employees to follow,
and help employees understand the role they
play in attaining goals. Leadership involves a
manager using power, influence, vision,
persuasion, and communication skills. The
outcome of the leading function is a high level
of motivation and commitment from employees
to the organization
Restructuring
-
Top Management have sought methods to
In Controlling, managers evaluate how well the restructure their organizations and save costs.
organization is achieving its goals and takes
corrective action to improve performance. Downsizing: eliminate jobs at all levels of
management
Managers will monitor individuals,
departments, and the organization to - Can lead to higher efficiency.
determine if desired performance has been
- Often results in low morale and customer
reached. Managers will also take action to
complaints about service.
increase performance as required. The outcome
of the controlling function is the accurate Empowerment: expand the tasks and
measurement of performance and regulation responsibilities of workers.
of efficiency and effectiveness.
- Supervisors might be empowered to make
- some resource allocation decisions

Management Levels Self-managed teams: give a group of

employees’ responsibility for supervising their
Organizations often have 3 levels of managers:
own actions.
- The team can monitor its members and the - Disturbance handler role: assume
quality of the work performed responsibility for handling an unexpected event
or crisis.
Managerial Roles
- Resource allocator role: assign resources
Described by Mintzberg. A role is a set of
between functions and divisions, set budgets of
specific tasks a person performs because of the
lower managers.
position they hold.
- Negotiator role: seeks to negotiate solutions
Roles are directed inside as well as outside the
between other managers, unions, customers, or
organization.
shareholders.
There are 3 broad role categories:
Managerial Skills - There are three skill sets
1. Interpersonal 2. Informational 3. Decisional that managers need to perform effectively.

Interpersonal Roles - Roles managers assume - Conceptual skills: the ability to analyze and
to coordinate and interact with employees and diagnose a situation and find the cause and
provide direction to the organization. effect.

- Figurehead role: symbolizes the organization - Human skills: the ability to understand, alter,
and what it is trying to achieve. lead, and control people’s behavior.

- Leader role: train, counsel, mentor and - Technical skills: the job-specific knowledge
encourage high employee performance. required to perform a task. Common examples
include marketing, accounting, and
- Liaison role: link and coordinate people inside manufacturing.
and outside the organization to help achieve
goals. All three skills are enhanced through formal
training, reading, and practice
Informational Roles - Associated with the tasks
needed to obtain and transmit information for
management of the organization.

- Monitor role: analyzes information from both

the internal and external environment.

- Disseminator role: manager transmits

information to influence attitudes and behavior
of employees.

- Spokesperson role: use of information to

positively influence the way people in and out
of the organization respond to it. Management Challenges: Increasing number of
global organizations. Building competitive
Decisional Roles - Associated with the methods
advantage through superior efficiency, quality,
managers use to plan strategy and utilize
innovation, and responsiveness. Increasing
resources to achieve goals.
performance while remaining ethical managers.
- Entrepreneur role: deciding upon new Managing an increasingly diverse work force.
projects or programs to initiate and invest. Using new technologies.
Chapter 2 (Traditional and Contemporary system, which he believed would lead to a more
Issues and Challenges) efficient and productive work force.

The role of theory and history in management: Steps in Scientific Management

Theory: is a conceptual framework for
1. Develop a science for each element of the
organizing knowledge and providing a
job.
blueprint for action.
2. Scientifically select employees and then
History: Understanding the historical context
train them to do the job.
of management provides a sense of heritage
and can help managers avoid the mistakes of 3. Supervise employees to make sure they
others follow prescribed methods.
The Practice of Management Can Be Traced 4. Continue to plan the work, but use workers
Back Thousands of Years to get the work done.
The Egyptians used management functions of Administrative Management
planning, organizing, and controlling when they
constructed the pyramids. - Focuses on managing the total organization.
Administrative management laid the foundation
for later development in management theory. It
is more appropriate for stable and simple
organizations than for today’s dynamic and
complex organizations.

The Classical Management Perspective

General Summary

The classical management perspective had two

primary thrusts. Scientific management focused
The Three Traditional Management on employees within organizations and on ways
Perspectives to improve their productivity. Noted pioneers of
scientific management were Frederick Taylor,
1. The Classical Management Perspective: Frank and Lillian Gilbreth, Henry Gantt, and
Harrington Emerson. Administrative
- Ideas of the early 20th century theorists and
management focused on the total organization
managers converged with the emergence and
and on ways to make it more efficient and
evolution of large-scale business and
effective. Prominent administrative
management practice
management theorists were Henn Fayol,
- This perspective actually includes two Lyndall Urwick, Max Weber, and Chester
different viewpoints: scientific management Barnard
and administrative management.
Contributions
Scientific Management - Concerned with
Laid the foundation for later developments in
improving the performance of individual
management theory. Identified important
workers. Frederick Taylor developed this
management processes, functions, and skills
that are still recognized today.
Focused attention on management as a valid Theory Y Assumptions: Employees are willing to
subject of scientific inquiry. work. – Employees are self-directed. They
accept responsibility. Employees are creative.
Limitations
They are self-controlled.
More appropriate for stable and simple
3. The Quantitative Management Perspective
organizations than for today’s dynamic and
complex organizations. Often prescribed Management Science vs. Quantitative
universal procedures that are not appropriate Management:
in some settings. Even though some writers
Management Science - focuses specifically on
(such as Lillian Gilbreth and Chester Barnard)
the development of mathematical models, to
were concerned with the human element.
aid in decision making and problem solving.
Many viewed employees as tools rather than
resources. Quantitative Management - applies
quantitative techniques to management.
-
Table 2.4 (The Quantitative Management
2. The Behavioral Management Perspective
Perspective)
Unlike the classical management perspective,
General Summary
the behavioral management perspective placed
more emphasis on individual attitudes and The quantitative management perspective
behaviors and on group processes and focuses on applying mathematical models and
recognized the importance of behavioral processes to management situations.
processes in the work place. Operations management focuses more directly
on the application of management science to
The Human Relations Movement - Proposed
organizations. Management information
that workers respond primarily to the social
systems are developed to provide information
context of the workplace, including social
to managers.
conditioning, group norms, and interpersonal
dynamics. Contributions
Organizational Behavior Developed sophisticated quantitative
techniques to assist in decision making.
- Human behavior in organizations is complex
Application of models has increased our
- The field of organizational behavior draws awareness and understanding of complex
from a broad, interdisciplinary base of organizational processes and situations. Has
psychology, sociology, anthropology, been very useful in the planning and controlling
economics, and medicine. processes.

There are two theories on how employees Limitations

behave: (Behavioral Theory on How Employees
Cannot fully explain or predict the behavior of
Behave toward Work)
people in organizations. Mathematical
Theory X Assumptions: sophistication may come at the expense of
other important skills. Models may require
– Employees dislike work. Employees are
unrealistic or unfounded assumptions.
irresponsible. Employees lack ambition.
Employees resist change.
The Systems Perspective of Organizations Quantitative Management Perspective:
Techniques for improving decision making,
Inputs from the environment: material inputs,
resource allocation, and operations
human inputs, financial inputs, and information
inputs. Transformation Understanding a System

Process: technology, operating systems, System: an interrelated set of elements

administrative systems, and control systems functioning as a whole.

Outputs into the environment: Types of Systems:

products/services, profits/losses, employee
Open System: an organizational system that
behaviors, and information outputs
interacts with its environment.
Concepts
Closed System: an organizational system that
Synergy: two or more subsystems working does not interact with its environment.
together may often be more successful then
Subsystem: a system within a broader system
working alone.

Entropy: a normal process leading to system

decline. Operations Management
Universal perspective: tempting to identify one Operations management techniques are
best way. generally concerned with helping the
organization produce products or services
Contingency perspective: depending on
more efficiently.
elements in that situation.
Integrating Perspectives for Managers

- A complete understanding of management

An Integrative Framework of Management
requires an appreciation of, classical,
Perspectives
behavioral, and quantitative approaches.
Systems Approach: Recognition of internal
- The systems and contingency perspectives can
interdependencies. Recognition of
help managers integrate the three approaches
environmental influences.
and enlarge understanding of all three.
Contingency Perspective: Recognition of the
situational nature of management. Response
to particular characteristics of situation.

Classical Management Perspectives: Methods

for enhancing efficiency and facilitating
planning, organizing, and controlling

Behavioral Management Perspectives: Insights

for motivating performance and understanding
individual behavior, groups and teams, and
leadership