What do Beaunit Mills, Hercules Powder,

and Liebmann Breweries have in

common?
On 1st Fortune List (1955)
They Don’t Exist Today

“BAD Management”
Not “Keeping up the Good Work”
Not adapting to Environmental Changes
Management
Management
The attainment of organizational goals in
an effective and efficient manner through
planning, organizing, leading, and
controlling organizational resources

Organization
A formally structured collection of
individuals working toward common
(shared) goals.
Administration & Management by Brech 

 Administration – that part of the management process

concerned with the institution and carrying out of
procedures by which the program is laid down &
communicated, and the progress of activities is regulated
& checked against targets & plans.
 Management – a social process entailing responsibility
for the effective & economical planning & regulation of
the operations of an enterprise, in fulfillment of a given
purpose or task.
 Concept
Concept of
of Management 
Management 

 Management may be defined as a process

whereby scarce resources (human,
material, & financial) are combined to
achieve organizational goals. Without
management, people would pursue their
own objectives independently and this
would lead to waste & inefficiency.
 Organizational
Organizational Performance
Performance
Effectiveness : the degree to which the
organization achieves a stated goal
Efficiency : the use of minimal resources
(input) to produce a desired volume of
output.
Efficient, but not Effective:
- Goals not achieved
Effective, but not Efficient
- Wasted Resources
(You may have to choose between the two.)
 Development
Development of
of Management
Management Thought 
Thought 

 The development of management thought

can be considered to comprise four main
periods:
 Early influences
 The scientific management movement
 The human relations movement
 Modern influences
 Early
Early Influences 
Influences 
 Ancient records in China & Greece indicate the
importance of organization & administration, but do not
give much insight into the principles of management.
Outstanding scholars have referred to management
activities in the running of city states & empires.
           In the period 1400 to 1450, merchants in Venice,
Italy, operated various types of business organization,
e.g. partnerships, trusts & holding companies. Control
emerged in the form of a double-entry book-keeping
system & related documentation & records. Also, there
was standardization of material & systems of inventory
control.
 The
The Scientific
Scientific Management
Management
Movement 
Movement 
 In the years after 1900 conventional
management practices were found to be
inadequate to meet demands from the changing
economic, social & technological environment.
A few pioneers examined causes of inefficiency
& experimented to try to find more efficient
methods and procedures for control. From
these basic experiments a system of
management thought developed which came to
be known as scientific management.
 The
The Human
Human Relations
Relations Movement 
Movement 

 Advances in the sciences of mankind, and of behaviour

as an individual and in groups, e.g. psychology,
sociology, etc., have revealed a number of factors which
have helped in dealing with business & industrial
problems.
           The basis of the human relations movement was
the integration of various disciplines such as industrial
psychology & sociology, applied anthropology & social
psychology, & was concerned with the human
problems which management encountered.
 Modern
Modern Influences 
Influences 

 The United Kingdom was faced with many

complex problems during World War II.
Operational research teams were set up,
composed of mathematicians, physicists &
other scientists, who pooled their knowledge to
solve problems. After the war these ideas were
applied to industrial problems which could not
be solved by conventional means. With the
development of the electronic computer, these
procedures became formalized into a
‘management science’ school.
 ‘Management
‘Management Science’
Science’ school
school

 The contribution of the quantitative school

was greatest in the activities of planning &
control. In the essence, ‘management
science’ school, by its use of computers and
quantitative analysis, has made it possible
to consider the effect of a number of
variables in an organization which may
otherwise have been overlooked.
 Management:
Management: A
A SCIENCE
SCIENCE or
or an
an ART?
ART?
 It is in the formulation of principles that the
science of management can be developed. A
management principle distils & organizes
knowledge that has been built up through
experience & analysis. Management is far from
being an exact science at present but, by
understanding & applying accepted principles can
be greatly improved. It is most probable that
management will never become wholly an exact
science as personal judgment will always be
needed to supplement available knowledge;
therefore, as a practice, management will always
be an art.
 Management:
Management: aa PROFESSION? 
PROFESSION? 

 The following main points seem relevant:

 There must exist a body of principles, skills &
techniques and specialized knowledge.
 There must be formal methods of acquiring training &
experience.
 An organization should be established which forms
ethical codes for the guidance & conduct of members. 
           If the above standards are considered, then
management cannot really be called a profession. There
are no licenses for managers, nor is there an accepted
code of ethics, but there are tendencies towards
professionalization and these will undoubtedly increase.
 The
The Four
Four Functions
Functions of
of
Management
Management
Planning
Select goals
& ways to
Controlling attain them
Organizing
Monitor Assign
activities & responsibility
make
for tasks
corrections
Leading
Use
influence to
motivate
MANAGEMENT
MANAGEMENT LEVELS
LEVELS AND
AND
TIME
TIME SPENT
SPENT ON
ON FUNCTIONS
FUNCTIONS
Plan. Organ. Lead. Control.
Top 28% 36% 22% 14%
Middle 18% 33% 36% 13%
Lower 15% 24% 51% 10%
 Management
Management Skills
Skills

Conceptual Skills : cognitive ability to

see the organization as a whole and
the relationship among its parts
Human Skills : ability to work with
and through other people and to
work effectively as a group member
Technical Skills : understanding of and
proficiency in the performance of
specific tasks.
 Management
Management Skills
Skills

Conceptual Skills CEO

Which level needs

conceptual skills the VP VP VP
most?
Mgr Mgr Mgr

Mgr Mgr

Op Op Op Op Op
 Management
Management Skills
Skills

Human Skills CEO

To what degree do
various levels of VP VP VP
management need human
skills?
Mgr Mgr Mgr
ALL need high degree.

Mgr Mgr

Op Op Op Op Op
 Management
Management Skills
Skills
Least CEO
Technical Skills
Mo
re
Mo
st VP VP VP
To what degree do the
various levels need
technical skills? Mgr Mgr Mgr

Mgr Mgr

Op Op Op Op Op
 What
What Is
Is It
It Like
Like to
to Be
Be aa
Manager?
Manager?
Managerial Activities Managers give up the right
- Long hours to:
- Most time spent in oral - Be one of the gang
communication - Put your self-interest
- Characterized by variety, first
fragmentation, and brevity - Ask others to do things
- Fast paced and require a you wouldn’t do
high energy level to be - Vent your frustrations
successful - Resist change
 Supervisors’
Supervisors’ Responsibilities
Responsibilities
Plan and schedule work Inform employees of
Clarify tasks and organizational goals
gather ideas for Inform higher
improvement managers of work
unit needs and
Appraise and counsel accomplishments
employees
Recruit, train, and
Recommend job develop workers
assignments and pay Encourage and
maintain high and
enthusiasm
Informational
Informational Roles
Roles to
to develop
develop and
and
maintain
maintain information
information network
network
The monitor seeks current information from
many sources.
The disseminator transmits information to others
both inside and outside the organization.
The spokesperson provides official statements to
people outside the organization about company
policies, actions, or plans.
Interpersonal
Interpersonal Roles
Roles pertain
pertain to
to
relationships
relationships with
with others
others
The figurehead engages in ceremonial
activities
The leader motivates, communicates,
and influences subordinates.
The liaison develops relationships
outside his/her unit both inside and
outside the organization.
Decisional
Decisional Roles
Roles to
to make
make choices
choices
requiring
requiring conceptual
conceptual &
& human
human skills.
skills.
The entrepreneur initiates change.
The resource allocator allocates resources
to achieve outcomes.
The negotiator bargains for his/her unit.
The disturbance handler resolves conflicts.
How
How Do
Do You
You Learn
Learn to Manage??
to Manage

50% from job experience

30% from other persons
20% from education & training

(Based on study of successful managers at

Honeywell)
 Successful
Successful Managers’
Managers’
Attributes
Attributes
Leadership Oral Communication
Team-Building Skills Written
Self-objectivity Communication
Analytic Thinking Personal Impact
Creative Thinking Resistance to Stress
Behavioral Flexibility Tolerance of
Uncertainty
 Crisis Management
Skills
Stay Calm Be visible

Put people before

Tell the truth
business

Know when to get

back to business
Some
Some Types
Types of
of Changes
Changes
Impacting
Impacting Organizations:
Organizations:
Products
Technologies
Markets
Speed Requirements
Management Techniques
 The
The Learning
Learning Organization
Organization
CONTINUOUSLY IMPROVES based on the lessons of
experience.
It Manages Knowledge:
Workers must possess and use knowledge.
Knowledge needed is increasing.
Knowledge needs to be preserved and communicated.
CONTINOUS IMPROVEMENT also through:
Teams
Open-book management of information
Empowered workers
Training (for current job and new career paths)
Knowledge
Knowledge Mgmt
Mgmt is
is Especially
Especially
Important
Important in
in E-Commerce
E-Commerce
E-commerce represents business exchanges
or transactions that occur electronically.
It replaces or enhances the exchange of
money and products with the exchange of
data and information from one computer to
another.
 Classical
Classical Perspective
Perspective
Emphasized a rational, scientific approach to study of
management and sought to make workers and
organizations like efficient operating machines
Classical Categories
Scientific Management
Frederick Taylor
Frank and Lillian Gilbreth
Bureaucratic Organizations
Max Weber
Administrative Principles
Henri Fayol
 Scientific
Scientific Management
Management
Develop a standard method for performing
each job
Select appropriate workers
Train workers in standard method
Plan work and eliminate interruptions
Provide incentives for increased output.
 Bureaucratic
Bureaucratic Organizations
Organizations
Clearly defined authority and
responsibility
Set procedures for each situation
Goals of fairness and efficiency
Separation of management and ownership
i.e., run by professional mgrs.
 Bureaucratic
Bureaucratic Organizations
Organizations
Become “dysfunctional” Relatively High in
when: Bureaucracy:
-There is no effort to United Parcel Service
recognize exceptions to
U.S. Postal Service
rules or to change rules
when necessary Relatively Low in
-Enforcement of rules Bureaucracy:
takes precedence over Hewlett-Packard
pursuit of the Disney Studios
organization’s mission
 Administrative
Administrative Management
Management --
Henri
Henri Fayol
Fayol
14 Principles Five basic management
Unity of command functions
Division of work Planning
Unity of direction Organizing
Scalar chain-of-command Commanding
Authority=Responsibility Coordinating
(etc.) Controlling
 Humanistic
Humanistic Perspective
Perspective

Emphasizes enlightened treatment of workers

and power sharing between managers and
employees.
Emphasized satisfaction of employees’
social/psychological needs as the key to
increased worker productivity.
Supported by Hawthorne Studies
 The
The Hawthorne
Hawthorne Studies
Studies
“Social Man”
Methodological Problems, but Profound
Influence on Management Thought
“Hawthorne Effect”
Interviewing Techniques
 The
The Human
Human Resources
Resources
Perspective
Perspective
Jobs should be designed to allow workers
to use their full potential
Abraham Maslow’s Hierarchy of Needs
Douglas McGregor’s Theory X vs. Theory
Y (comparison of Classical Mgmt to
Human Resources)
Theory X Theory Y (Human
(Classical): Resources):
People dislike work and
prefer to be directed People will accept
responsibility
Must be coerced to
work Have intellect that
Want to avoid could be applied to
responsibility and organizational goals
have little ambition Only partially use their
Want security above intellectual potential.
everything
 System
System Approach
Approach to
to Management 
Management 

 System – is an organized combination of parts

which forms a complex entity, with
interrelationships or interactions between the
parts & between the system and the environment.
 2 categories:
 Deterministic – where the behaviour can be
completely determined
 Probabilistic – where the behaviour can only be
estimated within degrees of likelihood.
 System
System Approach
Approach to
to Management 
Management 

 Management System encourages one to

consider the cutting across of traditional
boundaries of responsibility between
departments in order to appreciate the
objectives of the whole organization.
Distinct demarcation lines between
purchasing, manufacturing, engineering,
marketing, etc., may become less distinct &
a revision of organization may be needed.
 System
System Approach
Approach to
to Management 
Management 

 The systems approach stresses the need for

more understanding in the development of
sophisticated problem-solving techniques,
e.g. simulation, operations research &
computerized information systems. All
these aim to improve the control
mechanisms of organizational systems so
that they can plan for and react more
effectively to changes in the environment.
 Sub-system
Sub-system –– Elements
Elements of
of aa System: 
System: 

 A sensing system or mechanism, to find out the

situation & what is going on;
 An information coding system, to ensure that data
are in usable from;
 A physical processing system, requiring two-way
communication & feedback of results;
 A regulating & control system, based upon actual
output & measurement of deviations;
 An information storage & retrieval system;
 A goal-getting or policy-making system.
 Contingency
Contingency Approach
Approach to
to Management 
Management 

 The approach is to identify the conditions of

a task (scientific school management),
managerial job (administrative management
school) and persons (human relations school)
as parts of a complete management situation
and attempt to integrate them all into a
solution which is more appropriate for a
specific circumstance.
 Behavioral
Behavioral Sciences
Sciences Approach
Approach
== Applied
Applied Social
Social Sciences
Sciences
Study of human behavior in organizations
Draws on Disciplines of:
Economics
Psychology
Sociology
Communication
Anthropology
 Management
Management Science
Science
Perspective
Perspective
Involves Mathematics, Computers
Examples:
Forecasting
Inventory control
Scheduling
Break-even analysis
Total
Total Quality
Quality Management
Management
Emphasizes Continuous Improvement in
all Organizational Processes
(i.e., in more than Manufacturing)
Led to the Learning Organization
 Management
Management for
for the
the future 
future 
 An awareness of & ability to relate to the economic,
social, and political environment.
 An ability to manage in a turbulent environment.
 An ability to manage with complex organizational
structures.
 An ability to be innovative & initiate change.
 An ability to manage & utilize increasingly
sophisticated information systems.
 An ability to manage people with widely different &
changing values and expectations.
 What
What The
The 21st
21st Century
Century
Executive
Executive Should
Should Be
Be Like
Like
Leader/Motivator
Consummate Politician
Master of Technology
Global Strategist