MGT 1 CU New
MGT 1 CU New
Shameema Ferdausy
MSc (Dundee, UK), MCom (Dhaka)
Professor
Department of Management
University of Chittagong
Chittagong
Bangladesh 4331
Ph: 880-1977244387
Email: s_ferdausy@cu.ac.bd
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Chapter : 1
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Chapter Outline
1.1 Tell who managers are and where they wok
1.2 Explain why managers are important to organizations
1.3 Describe the functions, roles, and skills of managers
1.4 Describe the factors that are reshaping and redefining the
manager’s job
1.5 Explain the value of studying management
1.6 Describe the benefits of the Employability Skills Matrix
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1.1 Tell who managers are and where they wok, p. 34
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1.1 Tell who managers are and where they wok, p. 34
• Who is a Manager?
– Someone who coordinates and oversees the work of
other people so that organizational goals can be
accomplished.
– Run large corporations as well as entrepreneurial start-
ups.
– Found in government depts, hospitals, small businesses,
NGOs, museums, schools, political campaigns, etc.
– Some are top-level managers, while others are first-line
managers.
– Can be young or old.
– Can be male or female. 5
1.1 Tell who managers are and where they wok, p. 34
• Levels of Management
• First-line Managers
– Individuals who manage the work of non-managerial employees.
– Supervisors, shift managers, departmental managers, or office
managers.
– Producing products or servicing the customers.
• Middle Managers
– Individuals who manage the work of first-line managers.
– Regional manager, project leader, or division manager,
• Top Managers
– Individuals who are responsible for making organization-wide
decisions and establishing plans and goals that affect the entire
organization.
– Executive vice president, president, managing director, chief
operating officer, or chief executive officer.
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Exhibit 1–1 Levels of Management
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1.1 Tell who managers are and where they wok, p. 34
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1.2 Why managers are important, p.36
• 3 Reasons
– The first is that organizations need their managerial skills
and abilities more than ever in uncertain, complex, and
chaotic times.
– A second is that they’re critical to getting things done.
– Third, managers make a difference in an organization’s
performance.
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1.3 Management vs. managers, p.37
• What is Management?
- Management is what a manager does. (Louis allen)
- Management is the art of getting things done through others. (Mary
Parker Follet)
- Management is to forecast, to plan, to organize, to command, to
coordinate and control activities of others. (Henri Fayol)
- Management is the process of designing and maintaining an
environment in which individuals, working together in groups,
efficiently accomplish selected aims (Koontz & Weihrich)
- Management involves coordinating and overseeing the work activities
of others so that their activities are completed efficiently and
effectively(Robbins, Coulter & Vohra)
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Efficiency and Effectiveness
• Efficiency: Doing things right, or getting the most output
from the least amount of inputs
• Effectiveness: Doing the right things, or completing activities
so that organizational goals are attained
• Managers deal with scarce inputs, such as people, money
• They are concerned with the efficient use of resources
without wasting
• Management is also concerned with being effective for the
attainment of goal
• In successful organizations, high efficiency and high
effectiveness typically go hand in hand
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Exhibit 1–1 Effectiveness and Efficiency in
Management
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What Do Managers Do?
• Describing what managers do is not easy
• Management researchers developed three
approaches to describe what managers do
- Management functions
- Management roles
- Management skills
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Management Functions
• According to functions approach, managers perform certain
functions as they efficiently an effectively coordinate the
work of others
• Henri Fayol proposed five functions in the early twentieth
century
• Today, these functions condensed to four (Exhibit 1 -5) :
- Planning
- Organizing
- Leading
- Controlling
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Exhibit 1–5 Management Functions
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Management Functions
– Planning
• Defining goals, establishing strategies to achieve goals,
developing plans to integrate and coordinate activities.
– Organizing
• Arranging and structuring work to accomplish organizational
goals.
• Determine what tasks are to be done, who is to do them, how
the tasks are to be grouped etc
– Leading
• Working with and through people to accomplish goals.
• Motivate people to resolve work group conflict, select the most
effective communication channel
– Controlling
• To ensure that goals are being met and that work is being done
as it should be, managers must monitor and evaluate
performance
• The process of monitoring, comparing, and correcting work is
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the controlling function.
Management Roles
• Henry Mintzberg studied that what managers do can best
be described by looking at the management roles they use
at work.
• The term management roles refers to specific actions or
behaviors expected of a manager.
• As shown in Exhibit 1-6, Mintzberg's 10 roles are grouped
around
- interpersonal relationships
- the transfer of information
- decision making.
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Management Roles
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Exhibit: 1-6
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Management Roles
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Management Roles
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Management Roles
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Management Skills
• What types of skills do managers need?
• Robert L. Katz developed one approach to
describing management skills
• He concluded that managers need three essential
skills:
- technical skills
- human skills
- conceptual skills
• Exhibit 1—7 shows the relationships of these skills
and the levels of management. 23
Exhibit 1–7Skills Needed at Different Management Levels
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Management Skills
– Technical skills
• Knowledge and proficiency in a specific field
• Important for first-line managers
• Use tools & techniques
– Human skills
• The ability to work well with other people
• Equally important for all levels of management
• Managers with good human skills know how to communicate,
motivate, lead, and inspire enthusiasm & trust
– Conceptual skills
• The ability to think and conceptualize about abstract and
complex situations concerning the organization
• Important for top level managers
• Managers see the organization as a whole, understand the
relationships among various subunits, and visualize how the25
organization fits into its broader environment.
Management Skills
• Some other important managerial skills that have
been identified in various studies are listed in next
slide.
• In today's demanding and dynamic workplace,
employees who want to be valuable assets must
constantly upgrade their skills and take on extra
work outside their own specific job areas
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Management Skills
Important Managerial Skills
• A host of challenges
• Briefly focus on six of these –
1. technology
2. disruptive innovation
3. social media
4. Ethics
5. political uncertainty, and
6. the customer.
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1.4 Managerial Challenges today and into the future, p. 40
1. Focus on Technology
- Managers increasingly face challenges in their
work because technology has been changing how
things get done.
- Cloud computing, artificial intelligence, and
robotics are examples of technology.
- Keeping employees updated on new technologies
presents a challenge to many managers.
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1.4 Managerial Challenges today and into the future, p. 40
• four reasons:
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1.5 Why study management? P.44
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1.5 Why study management? P.44
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1.5 Why study management? P.44
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Management History Module
MH1.1 Describe some early management examples.
MH1.2 Explain the various theories in the classical
approach.
MH1.3 Discuss the development and uses of the
behavioral approach.
MH1.4 Describe the quantitative approach.
MH1.5 Explain various theories in the contemporary
approach
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MH1.1 Early management, p.54
• Management has been practiced a long time.
• Organized endeavors directed by people responsible for
planning, organizing, leading, and controlling activities
have existed for thousands of years.
• The Egyptian pyramids and the Great Wall of China are
proof that projects of tremendous scope, employing tens of
thousands of people, were completed in ancient times
• Who told each worker what to do? Who ensured there
would be enough stones at the site to keep workers busy?
The answer is managers.
• Someone had to plan, organize people and materials,
make sure those workers got the work done, and impose
some controls to ensure that everything was done as 45
planned.
MH1.1 Early management, p.54
• Division of labor (or job specialization)
- In 1776, Adam Smith published The Wealth of Nations, in
which he argued the economic advantages that
organizations and society would gain from the division of
labor - that is, breaking down jobs into narrow and
repetitive tasks.
- Example: pin industry
- Smith concluded that division of labor increased
productivity by increasing each worker’s skill and dexterity,
saving time lost in changing tasks, and creating labor-
saving inventions and machinery.
- Job specialization continues to be popular.
- For example, specialized tasks performed by members of a hospital
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surgical team
MH1.1 Early management, p.54
• Industrial Revolution
- Starting in the late eighteenth century (1760-1840), when
machine power was substituted for human power—a point
in history known as the industrial revolution
- It became more economical to manufacture goods in
factories rather than at home.
- These large, efficient factories needed someone to forecast
demand, ensure that enough material was on hand, assign
tasks to people, direct daily activities, and so forth.
- That “someone” was a manager.
- These managers would need formal theories to guide them
in running these large organizations. In response,
beginning in the early 1900s, the first steps toward 47
developing formal management theories were taken.
MH1.1 Early management, p.54
• In this module, we’ll look at four major approaches
to management theory: classical, behavioral,
quantitative, and contemporary. (See Exhibit MH-1.)
• Keep in mind that each approach is concerned with
trying to explain management from the perspective
of what was important at that time in history and the
backgrounds and interests of the researchers.
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MH1.1 Early management, p.54
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MH1.2 Classical approach
• The formal study of management didn’t begin until early in
the twentieth century.
• These first studies of management, often called the
classical approach, emphasized rationality and making
organizations and workers as efficient as possible.
• Two major theories compose the classical approach:
- scientific management, and
- general administrative theory.
• The two most important contributors to scientific
management theory were Frederick W. Taylor and the
husband-wife team of Frank and Lillian Gilbreth.
• The two most important contributors to general
administrative theory were Henri Fayol and Max Weber.
MH1.2 Classical approach
• Scientific Management (F.W Taylor)
- Frederick W. Taylor’s Principles of Scientific
Management was published in 1911.
- Its contents were widely embraced by managers
around the world.
- Taylor’s book described the theory of scientific
management: the use of scientific methods to
define the “one best way” for a job to be done.
- Taylor’s experiences at Midvale led him to define
clear guidelines for improving production efficiency.
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MH1.2 Classical approach
• Scientific Management (F.W Taylor)
- He argued that these four principles of management (see
Exhibit MH-2) would result in prosperity for both workers
and managers.
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MH1.2 Classical approach
• Scientific Management (F. W. Taylor)
- Taylor achieved consistent productivity improvements in
the range of 200 percent or more.
- Based on his groundbreaking studies of manual work
using scientific principles, Taylor became known as the
“father” of scientific management.
- His ideas spread in the United States and to other
countries and inspired others to study and develop
methods of scientific management.
- His most prominent followers were Frank and Lillian
Gilbreth
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MH1.2 Classical approach
• Scientific Management (Frank and Lillian Gilbreth)
- Frank and his wife, Lillian, a psychologist, focused their
studies on eliminating inefficient hand-and-body motions.
- The Gilbreths were among he first researchers to use
motion pictures to study hand-and-body motions.
- They invented a device called a microchronometer that
recorded a worker’s hand-and-body motions and the
amount of time spent doing each motion.
- Wasted motions missed by the naked eye could be
identified and eliminated.
- The Gilbreths also devised a classification scheme to label
seventeen basic hand motions (such as search, grasp,54
hold), which they called therbligs
MH1.2 Classical approach
• General Administrative Theory (Henri Fayol)
- General administrative theory focused more on what
managers do and what defined good management
practice.
- Fayol first identified five functions that managers perform:
planning, organizing, commanding, coordinating, and
controlling.
- Fayol described the practice of management as something
distinct from accounting, finance, production, distribution,
and other typical business functions.
- His belief that management was an activity common to all
business endeavors, government, and even the home led
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him to develop fourteen principles of management.
MH1.2 Classical Approach
• General Administrative Theory (Henri Fayol)
- fundamental rules of management that could be applied to
all organizational situations and taught in schools.
- These principles are shown in Exhibit MH-3.
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MH1.2 Classical Approach
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MH1.2 Classical Approach
• General Administrative Theory (Max Weber)
- Max Weber was a German sociologist who studied
organizations.
- Writing in the early 1900s, he developed a theory of
authority structures and relations based on an ideal type of
organization he called a bureaucracy—a form of
organization characterized by division of labor, a clearly
defined hierarchy, detailed rules and regulations, and
impersonal relationships. (See Exhibit MH-4.)
- Weber recognized that this “ideal bureaucracy” didn’t exist
in reality. Instead, he intended it as a basis for theorizing
about how work could be done in large groups.
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MH1.2 Classical Approach
• General Administrative Theory (Max Weber)
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MH1.3 Behvoral Approach
• The field of study that researches the actions (behavior) of
people at work is called organizational behavior (OB).
• Much of what managers do today when managing people
—motivating, leading, building trust, working with a team,
managing conflict, and so forth—has come out of OB
research.
• Four stand out as early advocates of the OB approach:
Robert Owen, Hugo Münsterberg, Mary Parker Follett, and
Chester Barnard.
• Their contributions were varied and distinct, yet all
believed that people were the most important asset of the
organization and should be managed accordingly.
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MH1.3 Behvoral Approach
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MH1.3 Behvoral Approach
• Hawthorne Studies:
- Without question, the most important historical contribution
to the OB field came out of the Hawthorne Studies, a
series of studies conducted at the Western Electric
Company Hawthorne Works in Cicero, Illinois.
- These studies, which started in 1924, were initially
designed by Western Electric industrial engineers as a
scientific management experiment.
- They wanted to examine the effect of various lighting
levels on worker productivity.
- The engineers weren’t sure, but concluded that lighting
intensity was not directly related to group productivity.
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MH1.3 Behvoral Approach
• Hawthorne Studies:
- Something else must have contributed to the results.
- They weren’t initially able to pinpoint what that “something
else” was, though.
- In 1927, the Western Electric engineers asked Harvard
professor Elton Mayo and his associates to join the study
as consultants.
- The researchers concluded that social norms or group
standards were the key determinants of individual work
behavior.
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MH1.3 Behvoral Approach
• Hawthorne Studies:
- Scholars generally agree that the Hawthorne Studies had
a game-changing impact on management beliefs about
the role of people in organizations.
- Mayo concluded that people’s behavior and attitudes are
closely related, that group factors significantly affect
individual behavior, that group standards establish
individual worker output, and that money is less a factor in
determining output than group standards, group attitudes,
and security.
- These conclusions led to a new emphasis on the human
behavior factor in the management of organizations.
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MH1.4 Quantitative Approach
• Quantitative approach is the use of quantitative techniques
to improve decision making. This approach also is known
as management science.
• The quantitative approach evolved from mathematical and
statistical solutions developed for military problems during
World War II.
• It involves applying statistics, optimization models,
information models, computer simulations, and other
quantitative techniques to management activities.
• Linear programming, for instance, is a technique that
managers use to improve resource allocation decisions;
and the economic order quantity model helps managers
determine optimal inventory levels. 65
MH1.4 Quantitative Approach, p. 61
• Another area where quantitative techniques are used frequently is in
total quality management.
• Total quality management, or TQM, is a management philosophy
devoted to continual improvement and responding to customer
needs and expectations. (See Exhibit MH-6.)
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MH1.5 Contemporary Approach, p. 62
• Two contemporary management perspectives— systems
and contingency—are part of this approach.
• System Approach
- Systems theory is a basic theory in the physical sciences,
but had never been applied to organized human efforts.
- A system is a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
- The two basic types of systems are closed and open.
- Closed systems are not influenced by and do not interact
with their environment.
- In contrast, open systems are influenced by and do
interact with their environment. 67
MH1.5 Contemporary Approach, p. 62
- Today, when we describe organizations as systems, we
mean open systems.
- Exhibit MH-8 shows a diagram of an organization from an
open systems perspective.
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MH1.5 Contemporary Approach, p. 62
• Contingency Approach
- Management is not (and cannot be) based on simplistic
principles to be applied in all situations.
- Different and changing situations require managers to use
different approaches and techniques.
- The contingency approach (sometimes called the
situational approach) says that organizations are different,
face different situations (contingencies), and require
different ways of managing.
- A good way to describe contingency is “if, then.” If this is
the way my situation is, then this is the best way for me to
manage in this situation.
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MH1.5 Contemporary Approach, p. 62
• Contingency Approach
- Management researchers continue working to identify
these situational variables.
- Exhibit MH-9 describes four popular contingency variables
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