introduction to management, its functions, and organisations
TRANSCRIPT
Introduction to Management, its Functions, and Organisations
CONTENTS
History of Management Management Theories and Schools of
Thought Key People
What is Management? Management Functions What do Managers do? Management Roles Management Skills Managing Today
"People who ignore the past are destined to relive it."
A person unaware of mistakes made by others is likely to repeat
them.
Each generation of managers needs to understand the lessons learned by its predecessors and
build on them.
History of Management
Ancient HistoryEarly
CivilisationsEgyptian
pyramids
History of Management
Modern History Adam Smith publishes
The Wealth of Nations • Division of Labour
Industrial Revolution Managers needed skills to:
• Forecast demand
• Ensure that the necessary material resources were available and on hand for producing goods in question
• Assign tasks to people
• Ensure that machines were kept in good working condition
• Find markets for the finished products
Management Theories and Schools of Thought
MANAGEMENT THEORIES Classical
• Scientific • Administrative
Behavioural Quantitative System Quality
CLASSICAL MANAGEMENT THEORY
Classical Management Theory originated during the Industrial Revolution. It has two branches – Classic Scientific and Classic Administrative.
Classic Scientific SchoolArose as a result of a need to increase productivityThe emphasis was to try to find the “one best way” of getting work done by examining the way work was accomplishedFocused on worker-machine relationships for increasing production
Classic Administrative SchoolGrew out of a need for guidelines to manage the complex organisations that emerged from the Industrial RevolutionThe emphasis was on the development of managerial principles rather than work methodsAdvocated a belief in studying the flow of information Theorists aimed at understanding how an organisation operated
BEHAVIOURAL MANAGEMENT THEORY
Dealt with the human aspects of organisations
Focused on employees as individuals, resources, assets, and as part of work groups
Motivation and Leadership became topics of great interest
Resulted in the creation of positions for professionals as a Human Resources Manager
QUANTITATIVE MANAGEMENT THEORY
Was born in World War II era
Used mathematical and statistical approaches, as well as computational models and simulations for management problems
Used quantitative tools to help plan and control nearly every aspect in the organisation
SYSTEMS MANAGEMENT THEORY
An organisation is viewed as a system, with inputs being processed, through operations, into outputs. So a system is a set of interrelated parts that work together to achieve stated goals.
Systems SchoolThe systems school holds that an organisation comprises various parts (subsystems) that must perform tasks necessary for the survival and proper functioning of the system as a wholeThe Functional Areas of business – Marketing, Finance, Human Resource Management, etc. – are subsystemsInterrelatedness emphasises that a manager can’t change one subsystem without affecting the rest
Cumulative Energy of SynergyThe whole is greater than the sum of its partsSynergy is the increased effectiveness that results from combined action or co-operationIt is sometimes described as 2 + 2 = 5 since the result of a synergistic partnership is more than the sum production of each partner aloneSynergy can lead to negative effects (clash of cultures, loss of jobs (mergers & downsizing), antitrust and ethical issues, etc.)
QUALITY MANAGEMENT THEORY
Quality Management emphasises achieving customer satisfaction by providing high quality goods and servicesWhat is done must be measured and evaluated quantitatively and qualitativelyQuality School is the most current and it is embraced worldwide
Kaizen
Japanese in origin (means continuous improvement for people, products, and processes)No matter how well things are going, the individual or organisation can do it better
Reengineering
Change is constant; It will always occurIs the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements
Key People
Frederick W. Taylor (1856-1915)
Called the Father of Scientific Management
Scientifically studied work to identify the “one best way” to get a job done (standardising tasks)
Scientifically selected, hired, and trained workers
Motivated workers with financial rewards (prorata)
Introduced work breaks
Key People
Henry Gantt (1861-1919)
Developed the Gantt chart used for scheduling multiple overlapping tasks over a time period (still widely used in organisations today for scheduling work)
Focused on motivational schemes, emphasising the greater effectiveness of rewards for good work
Developed a pay incentive system with a guaranteed minimum wage and bonus systems for people on fixed wages
Key People
Henri Fayol (1841-1925)
Believed that management required specific skills that could be learned and taught
Designated management as a universal set of functions that included planning, organising, commanding, co-ordinating, and controlling
Described the practice of management as something distinct from accounting, finance, production, and the other business functions
Developed several principles of management
Key People
Mary Parker Follett (1868 - 1933)
Focused on how organisations cope with conflict
Emphasised the human element in organisations and the need to discover and enlist individual and group motivation
Introduced three important concepts: The Universal Goal The Universal Principle The Law of the Situation
Key People
Max Weber (1864-1920)
Known as the Father of Modern Sociology
Analysed bureaucracy as the most logical and rational structure for large organisations
A bureaucracy was a system characterised by division of labour, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships
Key People
Chester Barnard (1886-1961)
Saw organisations as social systems requiring human co-operation
Argued that success depended on maintaining good relations with external groups and institutions
Developed the concepts of Strategic Planning and Acceptance Theory of Authority
Argued that managers must gain acceptance for their authority
Believed that three top functions of the executive were to:
establish and maintain effective communication system,
hire and retain effective personnel, and motivate those personnel
Key People
Abraham Maslow (1908- 1970)
Developed a needs-based theory of motivation (Hierarchy of Needs)
The theory is now considered central to understanding human motivation an behaviour
Key People
W. Edwards Deming (1900- 1994)
Father of Total Quality Management
Regarded by the Japanese as the key influence in their postwar economic turnaround
Created constancy of purpose for continual improvement of products and services
What is Management?
Management is the process of getting things done,
effectively and efficiently, through and with other people.
(Robbins, DeCenzo, Stuart-Kotze,2002)
Efficiency & Effectiveness
Efficiency means doing a task correctly.
Effectiveness is the attainment of a goal.
Efficiency & Effectiveness
What is the difference exactly?
Efficiency is how you go about accomplishing something (means), while
Effectiveness is the attainment or completion of a goal (ends).
Efficiency & Effectiveness
Example:If you kill a fly with a hammer you may be effective (ends - killing the fly). But you would be much more efficient by using a fly swatter (means – waste less energy, swat faster).
Management Functions
Management Functions are activities that comprise the Management Process.
The four basic Management activities are PlanningOrganisingLeadingControlling
Management Functions
Planning - involves defining an organisation's goals, establishing an overall strategy for achieving these goals, and developing a set of plans to integrate and co-ordinate activities.
Setting goals keeps the work to be done in proper focus and helps organisation members keep their attention on what is important.
Management Functions
Managers are also responsible for designing an organisation's structure.
Organising - involves determining what jobs or tasks are to be done, hiring and choosing who is going to do them, and deciding how they will be done.
Management Functions
Leading - is influencing other people to get the job done.
Leaders direct the activities of others, motivate employees, maintain morale, mold company culture, and manage conflict and communication.
Management Functions
Controlling - is making sure that an organisation's performance is up to par with the goals previously set.
A manager must continuously monitor and compare actual performance with set standards and take corrective action when necessary.
What do Managers do?
A manager is someone who plans, organises, leads, and controls people and the work of an organisation with the aim of ensuring that the organisation achieves its goals
(Dessler, Tarke, Cyr, 2001)
Types of Manager
There are several ways to classify managers. The three most common classifications are by Organisational LevelManagerial FunctionRegion or Divison
Management Roles
Interpersonal Figurehead Leader Liaison
Informational Monitor Disseminator Spokesperson
Decisional Entrepreneur Disturbance Handler
Management skills
Technical Conceptual Political Communication Interpersonal Effectiveness
Managing Today
Managers need to constantly monitor and anticipate changes occurring in today’s volatile business environment. Organisations are facing many new challenges and forces in today’s more competitive global marketplace.
Some of the most significant challenges and trends include: Technological Innovations Globalisation A more Diverse Workforce Changing Political Systems Formation of new Trade Agreements/Areas Synergy