-fundamentals of management
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FUNDAMENTALS
OF MANAGEMENT
Dr.
Emer
Faraon
, M.D., M.B.A.
DHPA, UP College of Public Health
HPAd
201 and PH 186 Lectures
SY 2013
-
2014
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Our Learning Objectives:
Definition and Concept of Management
Four Functions / Elements of Management
Overview of the Evolution of Management Thought
(Basic Timeline and Categorization)
Modern Approaches to Management
What You Should Really Know
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8 November
On 8 November, Typhoon Haiyan hitthe Philippines.
It was a super-typhoon one of
the strongest storms ever.
Many people died. Homes, schoolsand roads were destroyed.
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Only a month ago there wasan earthquake in thePhilippines.
Thousands of people were still
living in tents when thetyphoon struck.
Earthquake
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Historical Background of
Management Ancient Management
Egypt (pyramids) and China (Great Wall)
Venetians (floating warship assembly lines)
Adam Smith Published The Wealth of Nations in 1776
Advocated the division of labor (job
specialization) to increase the productivity of
workers Industrial Revolution
Substituted machine power for human labor
Created large organizations in need of
management
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What is Management?
All managers work in organizations
Organizations
collections of people who work
together and coordinate their
actions to achieve a wide varietyof goals or desired future
outcomes
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Common Characteristics of
Organizations
Goals
Structure
People
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What is Management?
Resources
include people, skills, know-how
and experience, machinery, rawmaterials, computers and IT,
patents, financial capital, and loyal
customers and employees
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What is Management?
Managers
The people responsible for
supervising the use of an
organizations resources to
meet its goals
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Definition of Management
According to the management guru
Peter Drucker, Organization and
coordination of the activities of anenterprise in accordance with certain
policies and in achievement of clearly
defined objectives
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Expansion of the definition (Weihrich
and Koontz)
As Managerspeople carry out the
managerial function of
Planning
Organizing
Leading/DirectingControlling
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Definition of Management
Managementin business
and human organization
activity is simply the act of
getting people together toaccomplish desired goals
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Management Lesson #1
A crow was sitting on a tree, doing nothing all
day. A small rabbit saw the crow, and asked
him, "Can I also sit like you and do nothing all
day long?"The crow answered: "Sure, why not." So, the
rabbit sat on the ground below the crow, and
rested. All of a sudden, a fox appeared,jumped on the rabbit and ate it.
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Management Lesson #1
Management Lesson:
To sit and do nothing,you must be sitting
very, very high up.
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WHAT IS MANAGEMENT?
An artmore than a scienceDeductive Method: General to Particular
Inductive Method: Particular to General
Inherently social in nature
Getting things done through others
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Simplest Definition
Management
The planning, organizing,
leading, and controlling of
human and other resources to
achieve organizational goalseffectively and efficiently
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FOUR FUNCTIONS
First stated by Henri Fayol (1841-1925)- French CEO
Now stated plainly as:
1. Planning
2. Organizing
3. Directing/Leading
4. Controlling
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EVOLUTION OF
MANAGEMENT THOUGHT
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MAJOR CLASSIFICATION OF
MANAGEMENT APPROACHES
CLASSICAL
APPROACH
SCIENTIFIC
MANAGEMENT
BUREAUCRATIC
MANAGEMENTADMINISTRATIVE
MANAGEMENT
BEHAVIORAL
APPROACH
HAWTHORNE
STUDIES
MASLOWS
NEEDHIERARCHY
THEORY X AND
THEORY Y
QUANTITATIVE
APPROACH
MANAGEMENT
SCIENCE
OPERATIONS
MANAGEMENTMANAGEMENT
INFORMATION
SYSTEM
MODERN
APPROACH
THE SYSTEMS
THEORY
CONTINGENCY
THEORYEMERGING
APPROACHES
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Classical Approach to Management
There are 3 classical approaches to
management;
1. Scientific Management
2. Administrative Principles
3. Bureaucratic Organization
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Classical Approach to Management
All 3 Classical Approaches share a common assumption;
People at work act in a rational manner that is
primarily driven by economic concerns
Workers are expected to rationally consider
opportunities made available to them and do
whatever necessary to achieve the greatestpersonal and monetary gain
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Classical Approach to
Management
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Scientific Management
Emphasizes careful selection and
training of workers and supervisory
support with an emphasis onimproving efficiency
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Scientific Management
SM has 4 guiding action principals;
1. Develop rules of motion, standardized work
implements, and proper working conditions for every
job2. Carefully select workers with the right abilities for the
job
3. Carefully train workers and provide proper incentives4. Support workers by carefully planning their work and
removing obstacles
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Administrative Principles
Fayol developed 14 guiding principles ofmanagement, that he felt should be taught to allaspiring managers;
1. DIVISION OF LABOR - specialization of work willresult in continuous improvement in skills and
methods2. AUTHORITY - managers and workers need to
understand that managers have the right to giveorders
3. DISCIPLINE - behavior needs to be grounded inobedience and derived from respect
4. UNITY OF COMMAND - each employee shouldhave one, and only one manager
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Administrative Principles
5. UNITY OF DIRECTION - the leader generates a singleplan, and all play their part in executing it
6. SUBORDINATION OF INDIVIDUAL INTERESTS - whileat work, only work issues should be undertaken orconsidered
7. REMUNERATION - all should receive fair paymentfor their work; employees are valuable and notsimply an expense
8. CENTRALIZING - decisions are primarily made from
the top9. CONTROL - organizations must have a clear, formal
chain of command running from the top to thebottom of the organization
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Administrative Principles
10.ORDER - there is a place for everything andall things should be in there place
11.EQUITY - managers should be kind and fair
12.PERSONNEL TENURE - unnecessaryturnover is to be avoided, and there shouldbe lifetime employment for good workers
13.INITIATIVE - undertake work with zeal and
energy14.ESPRIT DE CORPS - work to build harmony
and cohesion among personnel
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Administrative Principles
What can we learn from Fayol?
He believed that
Management can be taught
Management can be seen as
a variety of activities oractions that can be worked
on in order to improve ones
managerial skill set
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Bureaucratic Organization
Max Weberdeveloped the idea of the Bureaucracy
because he felt that many organizations largely
failed to reach their performance potential
A BUREAUCRACY is an ideal, intentionally rational,
and very efficient form of organization, based on
principles of logic, order, and legitimate authority.
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Bureaucratic Organization
Characteristics of Bureaucratic Organizations
CLEAR DIVISION OF LABOR - jobs are well defined, and workersbecome highly skilled at their job
CLEAR HIERARCHY OF AUTHORITYauthority and responsibilityare well defined for each position, and each position reports to ahigher level
FORMAL RULESwritten guidelines direct behavior and decisionsin jobs, and written files are kept for historical record
IMPERSONALITYrules and procedures are impartially and
uniformly applied, with no special treatment
CAREERS BASED ON MERITworkers are selected and promotedon ability and performance
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Bureaucratic Organization
The term bureaucracy is now often used
with negative connotations
Some possible disadvantages of bureaucracy
include:
Excessive paperwork or red tape
Slowness in handling problems
Rigidity in the face of shifting needs
Resistance to change
Employee apathy (a state of indifference)
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MAJOR CLASSIFICATION OF
MANAGEMENT APPROACHES
CLASSICAL
APPROACH
SCIENTIFIC
MANAGEMENT
BUREAUCRATIC
MANAGEMENTADMINISTRATIVE
MANAGEMENT
BEHAVIORAL
APPROACH
HAWTHORNE
STUDIES
MASLOWS
NEEDHIERARCHY
THEORY X AND
THEORY Y
QUANTITATIVE
APPROACH
MANAGEMENT
SCIENCE
OPERATIONS
MANAGEMENTMANAGEMENT
INFORMATION
SYSTEM
MODERN
APPROACH
THE SYSTEMS
THEORY
CONTINGENCY
THEORYEMERGING
APPROACHES
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Behavioral (Human Resource)
Approaches to Management
There are 4 behavioral approaches to management;
1. The Hawthorne Studies
2. Maslows Theory of Human Needs
3. McGregors Theory X and Theory Y
All 4 Behavioral Approaches share a common assumption;
People at work are assumed to seek satisfying social
relationships, respond to group pressures and search for
personal fulfillment
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The Hawthorne Studies
A series of productivity experiments conducted at Western
Electric from 1927 to 1932.
Experimental findings
Productivity unexpectedly increased under imposed adverse
working conditions.
The effect of incentive plans was less than expected.
Research conclusion
Social norms, group standards and attitudes more stronglyinfluence individual output and work behavior than do
monetary incentives.
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The Hawthorne Studies
Lessons Learned
Peoples feelings, attitudes and relations with co-workersaffected their work
Group influence plays an important role in the decisions
made by individuals The HAWTHORNE EFFECT is the tendency of people who
are singled out for special attention to perform as expectedmerely because of the expectations created by the situation
Set the stage for what has now developed into the field of
ORGANIZATIONAL BEHAVIOR; the study of individuals andgroups in organizations
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Abraham Maslow
His theory rested on these assumptions.
Physiological needs;
Safety or security needs
Belongingness or social needs;
Esteem or status needs
Self actualization or self-fulfillment needs.
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Maslows Need Hierarchy
Self actualization needs
Esteem needs
Social needs
Safety needs
Physiological needs
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Maslows Theory of Human Needs
Maslows theory implies that
managers who help people satisfytheir important needs at work will
achieve productivity
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Douglas Mcgregor
Theory X Theory Y
Most People dislike
work
Work is a natural activity
like play.
Most People must becoerced and threatened
before they work.
People are capable of selfdirection and self control
Most people prefer tobe directed. They avoid
responsibility and have
little ambition.
People become committedto organizational
objectives if they are
rewarded in doing so.
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Chris Argyris
MaturityImmaturity theory
People progress from a stage of
immaturity and dependence to a state ofmaturity and independence.
Model I and Model II organization
analysis.1. Model I organization are manipulative
2. Model II organization are open to learning
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MAJOR CLASSIFICATION OF
MANAGEMENT APPROACHES
CLASSICAL
APPROACH
SCIENTIFIC
MANAGEMENT
BUREAUCRATIC
MANAGEMENTADMINISTRATIVE
MANAGEMENT
BEHAVIORAL
APPROACH
HAWTHORNE
STUDIES
MASLOWS
NEEDHIERARCHY
THEORY X AND
THEORY Y
QUANTITATIVE
APPROACH
MANAGEMENT
SCIENCE
OPERATIONS
MANAGEMENTMANAGEMENT
INFORMATION
SYSTEM
MODERN
APPROACH
THE SYSTEMS
THEORY
CONTINGENCY
THEORYEMERGING
APPROACHES
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Quantitative Approach
It includes the application of statistics,
optimization models, information models and
computer simulations. More specifically, this
approach focuses on achieving organizational
effectiveness. Three main branches:
Management Science
Operations Management and Management Information Systems.
Q tit ti A h t
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Quantitative Approach to
Management
Quantitative Approach
Also called operations researchor management
science
Evolved from mathematical and statisticalmethods developed to solve WWII military
logistics and quality control problems
Focuses on improving managerial decision makingby applying:
Statistics, optimization models, information models,
and computer simulations
MAJOR CLASSIFICATION OF
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MAJOR CLASSIFICATION OF
MANAGEMENT APPROACHES
CLASSICAL
APPROACH
SCIENTIFIC
MANAGEMENT
BUREAUCRATIC
MANAGEMENTADMINISTRATIVE
MANAGEMENT
BEHAVIORAL
APPROACH
HAWTHORNE
STUDIES
MASLOWS
NEEDHIERARCHY
THEORY X AND
THEORY Y
QUANTITATIVE
APPROACH
MANAGEMENT
SCIENCE
OPERATIONS
MANAGEMENTMANAGEMENT
INFORMATION
SYSTEM
MODERN
APPROACH
THE SYSTEMS
THEORY
CONTINGENCY
THEORYEMERGING
APPROACHES
Modern Approaches
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Modern Approaches
to Management
Systems Theory
Contingency Theory
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Systems Theory
Resources
Labor
Materials
Capital
Machinery
Information
Managerial and
Technological
Abilities Planning
Organizing
Staffing
Leading
Controlling
Technology
Goods
Services
Profits and
losses
Employee
satisfaction
Inputs Transformation process Outputs
Feedback
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Contingency Theory
Systems Viewpoint
How the parts fits
together
Individual
GroupOrganization
environment
Behavioral Viewpoint
How managers influence
others
Interpersonal Roles
Informational Roles
Decisional Roles
Traditional
viewpoint
What managers
do
Plan
OrganizeLead
Control
Contingency
Viewpoint
Managers
use of otherview points to
solve
problems
External
environment
Technology
Individuals
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SUMMARY- What You Should Know
You will be responsible for a group of
people that you probably didnt pick, may
not like, might have nothing in commonwith, and who perhaps wont like you
much
You will most likely be a shock absorber
between top management and your staff
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SUMMARY- What You Should Know
Get your people emotionally involved always
towards goal achievement
Make everyone realize what a team is and
how it functionsa team has a common goal
Create realistic goals, and teach everyone how
to achieve them
Hold effective and efficient meetings! Begin all
meetings on time. Never wait for anyone!
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SUMMARY- What You Should Know
Strive to create and train new
leaders.
Establish your boundaries: be firm oninappropriate behavior
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Lessons
A turkey was chatting with a bull. "I would love tobe able to get to the top of that tree," sighed the
turkey, "but I haven't got the energy.
"Well, why don't you nibble on some of my
droppings?" replied the bull.
"They're packed with nutrients." The turkey pecked
at a lump of dung and found that it actually gave
him enough strength to reach the first branch of thetree.
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Lessons
The next day, after eating some more dung, he
reached the second branch. Finally after a
fortnight, there he was proudly perched at the
top of the tree. Soon he was spotted by afarmer, who promptly shot the turkey out of
the tree.
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Management Lesson:
Bullshit might get you
to the top, but it won't
keep you there.
Management Lesson #2
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SUMMARY- What You Should Know
Lastly, it both an art and a science, but as
far as I am concerned, it is more ofan art than a science.
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THANK YOU FOR LISTENING