Managers:

Understanding Management
www.humanikaconsulting.com
www.hipotest.com
 Seta A. Wicaksana
0811 19 53 43
[email protected]

• Managing Director of Humanika Amanah Indonesia –

Humanika Consulting
• Managing Director of Humanika Bisnis Digital – hipotest.com
• Wakil Ketua Asosiasi Psikologi Forensik Indonesia wilayah DKI
• Business Psychologist
• Certified of Human Resources as a Business Partner
• Certified of Risk Professional
• Certified of HR Audit
• Certified of I/O Psychologist
• Dosen Tetap Fakultas Psikologi Universitas Pancasila
• Pembina Yayasan Humanika Edukasi Indonesia
• Penulis Buku : “SOBAT WAY: Mengubah Potensi menjadi
kompetensi” Elexmedia Gramedia 2016, Industri dan
Organisasi: Pendekatan Integratif menghadapi perubahan,
DD Publishing, 2020
• Organizational Development Expertise
• Sedang mengikuti tugas belajar Doktoral (S3) di Fakultas Ilmu
Ekonomi dan Bisnis Universitas Pancasila Bidang MSDM
• Fakultas Psikologi S1 dan S2 Universitas Indonesia
• sekolah ikatan dinas Akademi Sandi Negara
Managers and
Management
• Managers in today’s 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.
 High performance leading organizations are increasingly
distinguished by 7 features:
1. Linking management development to business plans
and strategies.
Management 2. Being boundless, flat, nonhierarchical
3. Using global and cross-cultural orientation

Development 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.
 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.
 Peter Drucker: describes 3 major tasks of managers as:
Management 1. To decided the purpose and mission of the
organization.
Affects Everyone 2. To make work productive.
3. To manage social impacts and responsibilities.
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.
 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.

Management (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
as a Discipline 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.
 • As a human activity management emphasizes
the importance of employees with whom
managers work and whom they manage in
accomplishing an organization’s objectives.
Management is also • In organizations, people are the most
important asset. Successful managers
a Human Activity 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.
 • We are emphasizing management in the internship
Management experiences because we recognize that in today’s
environment which is fast changing and competitive. We can
contribute to successful organizations by providing students

As a Career •
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.
 • 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
Definition of functions as planning, organizing, and controlling linked
together by leading.
Management • 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.
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.
 • The organizing, leading, and controlling
functions all come from planning. How? These
functions carry out the planning decisions.
Organizing • 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 organization’s
environment.
 • The purpose of the organizing function is to create a
structure of task and authority relationships to achieve
the organization’s objectives.
Organizing • Organizing can be viewed as turning plans into action
and this allows an organization to function effectively as
a cohesive whole.
 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.
And Now To The Fun!
Learning How to Manage

• This module 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.
 • Many disciplines have contributed to the study of
management, such as social scientists, psychologists,
Learning sociologists and others.
How to • Consider management a social phenomenon and the
manager to be an important social resource to
Manage scientifically understand and study.
• Other professions like mathematics, accounting,
(Cont.) philosophy and numerous others have contributed
applications to the practice of management.
 In the end contemporary management knowledge is
the product of 3 basic approaches:
Learning How to (1) The Classical Approach
Manage (Cont.) (2) The Behavioral Approach
(3) The management Science Approach
Classical Approach
 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.
 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.
 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.
 The Classical
Approach
Taylor’s 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.
 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.
 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.
 Max Weber (Cont.)
Weber believed that an efficient organization
should be based on 5 principles
Principle 1. In a bureaucracy, a manager’s 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 position’s 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.
 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 worker’s
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.
Henry Fayol (Cont.)

Principle 4. Line of Authority: Restricting the

organization’s 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.
 Henry Fayol (Cont.)
Principle 10. Discipline: Employees
would be expected to be obedient,
energetic and concerned about the
organization’s 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.
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.
 • One major criticism is that the majority of
Limitations of the insights are to simplistic for today’s
complex organization.
Classical • The classical approach and the scientific
Approach management approach worked in
organizations that were very stable and
predictable and today little of that exists.
Behavioral Approach
Behavioral Approach
• The behavioral approach to management has 2 branches: the Human relations approach from the
1950’s 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.
 • The individuals in the behavioral science branch of the
The behavioral approach believe that the human is more
complex than the “economic man” description of the
Behavioral classical approach and the “social man” description of
the human relations approach.
Science • The behavioral science approach concentrates more on
the nature of work itself and the degree to which it can
Approach fulfill the human need to use skills and abilities.
 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 manager’s 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.
 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 plant’s 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.
 • Contributions of the Behavioral Approach include
increased use of teams to accomplish organizational
Contributions goals, focus on training and development of employees,
of Behavioral and the use of innovative reward and incentive systems.
• In addition the focus on modern management theory
Approach resulted in empowering employees through shared
information.
 • The limitations included the difficulty for
Limitations of the managers in problem situations and the fact
that human behavior is complex.
Behavioral • This complicated the problem for managers
trying to use insights from the behavioral
Approach sciences which often changed when
different behavioral scientists provided
different solutions.
The Management
Science Approach
 • The Management Science approach is a modern version of the
early emphasis on the “management of work” in scientific
The management. It features the use of mathematics and statistics to
aid in resolving production and operations problems, thus
Management focusing on solving technical rather than human behavior
problems.
Science • The management science approach was used in World War II
when the English formed teams of scientists, mathematicians,
Approach and physicist into units called operations research teams, and
today businesses use these teams to deal with operating issues.
Contributions
Most important contributions are in production management
of the focusing on manufacturing production and the flow of
Management material in a plant and in operations management solving
production scheduling problems, budgeting problems and
Science maintenance of optimal inventory levels.
Approach
Limitations of the The shortfall of this approach is that management
Management science does not deal with the people aspect of an
organization.
Science Approach
INTEGRATED MODEL:
3 Concepts of 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
Attempts to linked to each other.
Integrate the • The other approach is the Contingency Approach. The
Contingency Approach stresses that the correctness of a
Three Approaches managerial practice is contingent on how it fits the particular
situation.
to Management • The system’s approach views the elements of an organization as
interconnected and as being linked to its environment. See the
discussion on Compaq.
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.
 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.
 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.
“Management is
efficiency in climbing
the ladder of success;
leadership determines
whether the ladder is
leaning against the right
wall.”
- Steven Covey
Learning and Giving
for Better Indonesia