mgt162 chapter1

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  1. 1. management CHAPTER 1 Introduction to
  2. 2. Chapter Outline: 1.1 Definition of organization and management 1.2 Measuring managerial performance 1.3 Management process functions and activities 1.4 Managerial levels, skills and roles 1.5 Evolution of management thoughts
  3. 3. 1.1 definition of organization & management management: a broader definition The process of administering and coordinating resources effectively, efficiently, and in an effort to achieve the goals of the organization (Lewis) management: the classic definition The art of getting things done through people ( Marry Parker Follet) MGT162/UiTMJOHOR/2013
  4. 4. Definition of organization & manager Organization: An organization is a group of individuals who work together toward common goals (Lewis) Manager: An organizational member who is responsible for planning, organizing, leading, and controlling the activities of the organization so that its goals are achieved (Lewis) measuring managerial performance; Effectiveness Efficiency MGT162/UiTMJOHOR/2013
  5. 5. High Low Poor Good A B C D GoalAttainment (Effectiveness) Resource Utilization (Efficiency) Performance Effectiveness & Performance Efficiency As Foundations For Productivity & Managerial Success MGT162/UiTMJOHOR/2013
  6. 6. Management is a process that contains several functions. It comprises of the activities of Planning, Organizing, Leading & Controlling (POLC). ACHIEVING THE ORGANIZATIONS STATED PURPOSE (GOALS/ MISSION) PLANNING ORGANIZING LEADING CONTROLLING LEADS TO management process function (polc) 1.3 Management process, functions and activities MGT162/UiTMJOHOR/2013
  7. 7. 1.4 Managerial levels, skills and roles Top Managers Middle Managers First-Line Managers Nonmanageri al personnel Managerial Levels: MGT162/UiTMJOHOR/2013
  8. 8. Manager By their level in the organization Top managers Middle manager First-line manager By the range of organization activities they are responsible Functional manager General manager Responsible for a single area of activity. E.g.: Finance manager, Marketing manager Responsible for more complex units that include many functional areas of activity. E.g.: Plant manager Type of Managers: MGT162/UiTMJOHOR/2013
  9. 9. There are 3 basic skills required by managers: 3 Basic skills Technical skills (T) Human skills (H) Conceptual skills (C) Management Skills: MGT162/UiTMJOHOR/2013
  10. 10. Top Middle Lower H H H T T T C C C H Human skill T C Technical skill Conceptual skill Relative Skills Needed For Effective Performance At Different Levels Of Management MGT162/UiTMJOHOR/2013
  11. 11. Technical First-line Management (Production Supervisor) Human Conceptual Technical Middle Management (Marketing Manager) Human Conceptual Technical Top-Level Management (CEO President) Human Conceptual MGT162/UiTMJOHOR/2013
  12. 12. Managerial Roles: Interpersonal roles Decisional roles Informational roles Figurehead Leader Liaison Monitor Disseminator Spokesperson Enterpeneur Resource Allocator Negotiator MGT162/UiTMJOHOR/2013
  13. 13. 1.5: Evolution of management thoughts Environmental factors influencing management thought Economic influences Social influences Political influences technological influences global influences MGT162/UiTMJOHOR/2013
  14. 14. Chronological Development of Management Thought: MGT162/UiTMJOHOR/2013
  15. 15. Focuses on the individual workers productivity Focuses on the functions of management Focuses on the overall organizational system Classical Perspective on management: MGT162/UiTMJOHOR/2013
  16. 16. Focus on the productivity of the individual workers. 3 areas of focus: (I) Task Performance (II) Supervision (III) Motivation Scientific Management: Frederick W.Taylor (1856-1915) Scientific management: The Gilbreths Frank Glibreth Lilian Gilbreth MGT162/UiTMJOHOR/2013
  17. 17. Henri Fayol (1841-1925)was the first to recognize that successful managers had to understand the basic managerial functions. Developed a set of 14 general principles of management. Fayols managerial functions of planning, leading, organizing and controlling are routinely used in modern organizations. Administrative Management: Henri Fayol (1841 1925) Fayols general principles of management 1. Division of work 2. Centralization 3. Authority 4. Scalar chain 5. Discipline 6. Order 7. Unity of command 8. Equity 9. Unity of direction 10. Stability of tenure 11. Interest of the organization 12. Initiative 13. Remuneration of personal 14. Esprit de corps
  18. 18. Focuses on the overall organizational system. Bureaucratic management is based upon: Firm rules Policies and procedures A fixed hierarchy A clear division of labor Bureaucratic Management: Max Weber (1864 1920) A German sociologist and historian who envisioned a system of management that would be based upon impersonal and rational behavior the approach to management now referred to as bureaucracy. Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion. MGT162/UiTMJOHOR/2013
  19. 19. Focused on rational behavior Classical Perspective Acknowledged the importance of human behavior Behavioral Perspective vs. Classical versus Behavioral Perspective MGT162/UiTMJOHOR/2013
  20. 20. Managers were being presented with more evidence that human behaviour has a significant impact on the actions of workers. Follet concluded that a key to effective management was coordination Hawthorne effect the phenomenon whereby individual or group performance is influenced by human behaviour factors. Theory X advocates that a manager percives that subordinates have an inherent dislike of work and will avoid it if possible. Theory Y- advocates that manager perceives that subordinates enjoy work and will again satisfaction from their jobs. Behavioral Perspective The Quantitative Perspective Characterized by its use of mathematics, statistics, and other quantitative techniques for management decision making and problem solving. 1. A decision-making focus require some direct action on the part of management 2. measurable criteria select some alternative course of action by making comparison 3. quantitative model make use of mathematical symbols, equations and formulas 4. The use of computers MGT162/UiTMJOHOR/2013
  21. 21. Systems Perspective: An approach to problem solving based that attacks complex systems by breaking them down into their constituent elements MGT162/UiTMJOHOR/2013
  22. 22. A view that proposes that there is no one best approach to management for all situations. Asserts that managers are responsible for determining which managerial approach is likely to be most effective in a given situation. This requires managers to identify the key contingencies in a given situation. The Contingency Perspective Blending Components into a Contingency Perspective
  23. 23. Joan Woodwards Research Discovered that a particular management style is affected by the organizations technology. Identified and described three different types of technology: Small-batch technology Mass-production technology Continuous-process technology An Example of the Contingency Perspective MGT162/UiTMJOHOR/2013
  24. 24. whEN you feeL like QUittinG thinK ABout Y U staRTEd