3/22/2015 7:45:00 PMWhat is organization? 6Deliberate arrangement of people to accomplish for some specific purpose.College, fraternity3 Common Characteristics1. Distinct purpose- expressed through goals the organization hopes to accomplish2. People- it takes people to preform that is necessary for the organization to achieve goals3. Deliberate Structure- within which members do their work, may be open and flexible

Who are managers? 5Someone who coordinates and oversees the work of other people so organizational goals can be accomplished. Coordinating the work of departmental group or supervising single person

What is management? 7Coordinating and overseeing the work activities of others so their activities are completed efficiently and effectively.Efficiently- doing things right, getting the most output from the least amount of input or resources. Getting things doneEffectiveness- doing work activities that will result in achieving goals.

Types of Management 61. First-Line Managers- supervise and coordinate the activities of operating non- managerial employees. Titles include supervisor, coordinator, and office manager. They oversee the day-to-day operations of their respective stores.2. Middle Managers- largest group of managers in most organizations. Titles include plant manager, operations manager, and division head. Middle managers are responsible primarily for implementing the policies and plans developed by top managers 3. Top Managers- create the organization's goals, overall strategy, and operating policies. Top managers make decisions about such activities as acquiring other companies, investing in research and development. CEOs, president.

Four functions of management 91. Planning- Defining goals, establishing strategies to achieve goals, and developing plans to integrate and coordinate activities.2. Organizing- arranging and structuring work to accomplish organizational goals, determine what tasks are to be done and who is to do them.3. Leading- working with and through people to accomplish goals, monitoring subordinates, help resolve work conflicts, influence individuals, deal with employee behavioral issues4. Controlling- evaluation of whether things are going as planned, ensure goals are met and work is done as it should be, correcting work.

Mintzbergs Managerial Roles 10Managerial roles refers to specific actions or behaviors

A. Interpersonal- involve people outside the origination and other ceremonial and symbolic duties.1. Figurehead: attending ribbon-cutting ceremony for new plant, ceremonial and symbolic than substantive.2. Leader: encourage employees to improve productivity, formally and informally shows subordinates how to do things and how to preform under pressure 3. Liaison: coordinating activities of two product group, a coordinator or link among people, groups, or organizations B. Informational- involve collecting, receiving and disseminating information4. Monitor: Questions subordinates, is receptive to unsolicited information, and attempts to be as well informed as possible. 5. Disseminator: Sending memos outlining new organizational initiatives. 6. Spokesperon: making speech to discuss growth plans. C. Decisional- primarily relates to making decisions7. Entrepreneur-Develops new ideas for innovation. Initiator of change.8. Disturbance Handler- Resolving conflict between two subordinates.9. Resource Allocator- Reviewing or revising budget requests.10. Negotiator- Reaching agreement with a key supplier or labor union.

Management skillsA. Technical - job specific knowledge and technical skills needed toproficiently preform work tasks1. First line managers- BC they manage the employees who use tools and techniquesB. Human skills- ability to work well with people individually and in Groups1. Middle managersC. Conceptual skills- abstract and complex strategies1. Top managers- visualize how organization fits into broader environment

Ch. 1 Principles of MGMT3/22/2015 7:45:00 PM

Adam Smith- Wealth of Nations 27Argued the economic advantages that organizations and society would grain from the division of labor or job specializationBreaking jobs down into narrow and repetitive tasksPin industryDivision of labor increased productivity by increasing each workers skill and dexterity, saving time lost in changing tasks and creating labor.

Industrial Revolution 27Late 18th Century when machine power was substituted for human power. It became more economical to manufacture goods in factories rather than at home. Created large organizations in need of management.

Major Approaches of Management 27Classical Approach- Early 1900s: Emphasized rationality and efficiency and making organizations as efficient as possible.Scientific ManagementGeneral AdministrativeQuantitative Approach- Post WWII: Emphasized quantitative techniques to improve decision makingBehavioral Approach- Dates back to 1700s: Focused on an organizations peopleEarly AdvocatesHawthorne StudiesOrganizational BehaviorContemporary Approach- 1960s- Present: looks at the relationship between the organization and the external EnvironmentSystems Approach

Classical Approach 28Scientific Management 28Approach involving the scientific method to find the "one best way" for a job to be done. Fredrick Taylor "father" of scientific management. Principles of Management 19111. Develop a science for each element of the job to replace old rule-of-thumb methods2. Scientifically select employees and then train them to do the job described in Step 13. Supervise employees to make sure they follow the prescribed methods for preforming their jobs4. Continue to plan the work, but use workers to get the work done.

Frank and Lillian Gilbreth 29Focused on increasing work production through reduction of wasted motions. Developed microchronometer that recorded a workers hand-and-body motions and the amount of time spent doing each motion (therbligs) analyzing hand motion.

General Administrative Theory 29Focused on what managers do and what constituted good management practice.Henry Fayol- Believed that the principle of management was distinct from other organizational functions. Developed principles of management that applied to all organizational situations. Fayols 14 Principles of Management 30 1) Division of work- specialization increases output by making employees more efficient2) Authority-Managers must give orders 3) Discipline- Employees must respect the rules that govern the organization 4) Unity of Command- Every employee should receive orders from one superior 5) Unity of Direction- Each group that has the same objective should be directed by one manager using 1 plan. 6) Subordination of individual interests to the general interest- The interest of one group shouldn't be the interest of the whole organization 7) Remuneration- Workers must be paid a fair wage 8) Centralization- Proper proportion of decision making with managers and subordinates. 9) Scalar Chain-The line of authority from top management to the lowest ranks represents this. 10) Order- People and materials should be in the right place at the right time. 11) Equity- Managers should be kind and fair to employees. 12) Stability/tenure of personnel- management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. 13) Initiative- Employees who are allowed to originate and carry out plans will exert high levels of effort 14) Espirit de Corps- promoting team spirit will build harmony

Weber 30Bureaucracy- form of organization characterized by division of labor, clearly defined hierarchy, detailed rules and regulations, and interpersonal relationships. Was an attempt to formulate an ideal prototype for organizations. Hinders individuals creativity and limits organizations ability to respond quickly to an increasingly dynamic environment. Division of Labor- Jobs broken down into simple routine tasksAuthority Hierarchy- positions organized in hierarchy with chain of command.Formal Selection-people selected for jobs based on technical qualificationsFormal rules and regulations-system of written rules and standard operating procedureImpersonality- Uniform application of rules and controls, not according to personalities.

Behavioral Approach 31Organizational Behavior- research the actions of people at work. Elton Mayo Father of industrial psychology.Hawthorne Studies- Series of studies at the Western Electric Company Works in Cicero, Illinois. They wanted to examine the effort of various lighting levels on worker productivity. They concluded that lighting intensity was not directly related to group productivity. The researchers concluded that social norms or group standards were the key determinants of individual work behavior.

Quantitative Approach 33Also called operations research or management science, Involved the use of quantitative techniques to improve decision makingThe Q Approach evolved from mathematical and statistical solutions developed for military during WWII. Used to solve logistics and quality control problems. Focuses on improving managerial decision making by applying:i. Statisticsii. Optimization models iii. Informational modelsiv. Computer stimulationsA quality revolution swept though both business and public sectors in the 1980s and 1990s. It was inspired by a small group of quality experts; the most famous was W. Edwards Deming. Their models became the basis for todays quality management programs.Totality Quality Management (TOM)- management philosophy devoted to continual improvement and responding to customer needs and expectations 1. Intense focus on customer2. Concern for continual improvement3. Processes focused4. Improvement in the quality of everything the organization does5. Accurate measurement6. Empowerment of employees

Contemporary Approach 34Management researches began to look at what was happening in the external environment outside the boundaries of the organizationThe Systems Approach- A set of interrelated and interdependent parts arranged in a matter that produces a unified whole.Basic types of systemsa. Closed systems- are not influenced by and do not interact with their environmentb. Open systems- dynamically interact to their environment by taking in inputs and transforming them into outputs that are distributed in their environments. Implies that decision and actions in one organizational area will affect other areas.Recognizes that organizations are not self-contained. They rely on their environment for essential inputs and as outputs to absorb their outputsContingency Approach- recognizes organizations as different, which means that they face different situations and require different ways of managing. It stresses that there are not simplistic or universal rules for managers to follow.Contingency Variables 36a. Organization size- as size increases, so do the problems of coordination.b. Routineness of task technology- to achieve its purpose, an organizational uses technology. Routine technologies requires organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies.c. Environmental Uncertainty- The degree of uncertainty caused by environmental changes influenced the management process.d. Individual differences- Individuals differ in terms of their desire for growth autonomy, tolerance of ambiguity and expectations.

Ch 1. Management History3/22/2015 7:45:00 PM

Omnipotent View of Management 42The view that managers are directly responsible for an organizations success or failure.This view is consistent with the stereotypical picture of the take-charge business executive who overcomes any obstacle in seeing that the organization achieves its goals

Symbolic View of Management 42This view that much of an organizations success or failure is due to external forces outside managers control.Performance is influenced by factors which managers have little control, such as the economy, customers, governmental policies, competitors actions, decisions made by previous managers.

Constraint on Managerial Discretion 43Organizational Environment->Managerial Discretion