Week 2 - Introduction to Management

first line managers

directly responsible for the production of goods and services; responsible for groups of non-management employees; primary concern is the application of rules and procedures to achieve efficient production, provide technical assistance, and motivate subordinates

entails structuring an organization into a hierarchy, rational-legal decision-making rules

two essential elements of theory of bureaucratic management

four functions of planning, organizing, leading, and controlling; attainment of organizational goals in an effective and efficient manner

two important ideas of management definition

forecasting

what needs to be changed in the future

least preferred co-worker (LPC) scale

tool to assess how well-oriented a manager is

Peter Drucker

1954, proposed MBO; improve organization performance by defining/setting objectives

Max Weber

German sociologist and political economist known for his bureaucratic management; father of bureaucracy

driving the organization to move towards its goals; everyone knows what they have to achieve during the period; helps employees understand contribution to organizational targets; employees can be more motivated; secures the commitment of employees to attaining the goals; employees feel crucial to proceedings, leading to increased loyalty; employees have more commitment to goals that they themselves helped set

MBO advantages

can be time-consuming, leaving less time to carry out duties; can lead to poor teamwork between employees, only concerned with their targets, and not good teamwork; can result in unnecessary office politics as employees fight to outshine each other; underemphasizes context

MBO disadvantages

management theory

a collection of ideas that recommend general rules for how to manage an organization or business; gives directions to authorities inn implementing managerial systems; offers strategies, frameworks, and guidelines

management by objectives (MBO) program

a management tool whereby managers and employees work together to set and track objectives for a specific time period; objectives and plans cascade down the organization until every individual has specific objectives for the period

organizations as learning system

a system that is built on a succession of subsystems; in order for the business to run smoothly and efficiently, each subsystem must also work smoothly and efficiently within itself, but also with the other subsystems around it; succession of sub-systems to hone set of skills of employees as coordination is essential

principles of administrative management

a top-down approach to examining a business; put oneself in manager's shoes and imagined what situations they might encounter when dealing with their team; where the 14 principles and 6 primary functions of management plays a vital role

top managers

at the top of the hierarchy and are responsible for the entire organization; responsible for setting organizational goals, defining strategies for achieving them, monitoring and interpreting the external environment, and making decisions that affect the entire organization; responsible for communicating a shared vision for the organization, shaping corporate culture, and nurturing an entrepreneurial spirit that can help the company innovate and keep pace with rapid change

Ludwig von Bertalanffy

biologist proponent of system theory in 1940s

profit maximization, labor specialization, centralized leadership, streamed line operations, emphasis on productivity, single-person / selected-few decision-making, priority to the bottom line

classical management properties

Fred Fiedler

contingency management theory proponent

controlling

continually checking that rules, plans and processes are working as well as they should be; comparing actual performance to desired

modern management

embraces the idea that people are complex; their needs vary over time, and they possess a range of talents and skills that the business can develop through on-the-job training and other programs; respect changes that come with theory; company gets benefits while employees get what they want

human relations theory

employees are more motivated by social factors — like personal attention or being part of a group — than environmental factors, such as money and working conditions; prompt inspirations

clear division of labor, separation of owners and independent organization's assets; hierarchal chain-of-command, clear record-keeping

essential role in bureaucratic management

commanding

getting the most from people; managers must know their employees' skills, delegate to tap into these skill sets, and set a good example; giving orders and directing

decision-making skills, communications, motivations, groups/things

good leadership skills

Elton Mayo

human relations theory proponent

establish long-range company goals, determine company-wide goals for the current year, require each employee to produce five to ten specific, measurable goals, provide for a regular review of employee progress toward meeting goals

implementation of MBO program

coordinating

in a well-coordinated organization, departments know their responsibilities, the needs of other teams, and their obligations to them; divisions/departments in action for fulfillment of goals

laboratory manager

in-depth understanding of managers; inter and intrarelationship with people

division of work

one of 14 principles; assign each employee a task that they can become proficient at; productivity increases as employees become more skilled, assured and efficient; specialized employees promote output increase

bureaucratic management

took a more sociological approach; revolve around the importance of structuring your business in a hierarchical manner with clear rules and roles

organizing

involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization; where organizational structure and design are being developed to build culture and social networks

review organizational objectives, set employee objectives, monitor, evaluate, reward

management by objective process

coordinate resources in an effective and efficient manner; providing a product or service that customers value; to achieve high performance

manager's roles and attributes

planning

means identifying goals for future organizational performance and deciding on the tasks and use of resources needed to attain them; defines where the organization wants to be in the future and how to get there; strategizing

middle managers

middle levels of the organization and are responsible for business units and major departments; responsible for implementing the overall strategies and policies defined by top managers; concerned with the near future rather than with long-range planning.

controlling

monitoring employees' activities, determining whether the organization is on target toward its goals, and making corrections as necessary; corrections done in case of deviations

system theory

more a perspective than a fully formed practice; encourages you to realize that your business is a system and is governed by the same laws and behaviors that affect every other biological organization

planning

most essential primary function; the need "to assess the future and make provision for it"; includes a flexible action plan that considers a firm's resources, work in progress, and future market trends

system theory

originally not used in business, used to compare interrelationships between environment and entities; treats institutions like living organisms with every parts necessary to survive; simply assemblage (interrelated, interdependent, interactive)

theory X

posits that employees are apathetic or dislike their work; managers are often authoritarian and will micromanage everything because they don't trust their employees; pessimistic

theory Y

posits that employees are self-motivated, responsible, and want to take ownership of their work managers include their employees in the decision-making process and encourage creativity at all levels; optimistic and participative

classical management

predicated on the idea that employees only have physical needs; because employees can satisfy these physical needs with money, this theory focuses solely on the economics of organizing workers; job satisfaction equates monetary rewards

organizing

primary function laying out lines of authority and responsibility for employees.; covers recruitment and training, coordinating activities, and making employees' duties clear; brings human and non-human resources to work together

centralization

principle balancing centralized decision making (from the top) with letting employees make decisions or as Fayol wrote, "a place for everyone and everyone in his place"

remuneration

principle employee satisfaction depends on - financial and non-financial; Fayol said pay should be fair and reward "well-directed effort"

subordination (collective interest over individual interest)

principle individuals should pursue team interests over personal ones - including managers; no conflicts due to personal interest as no individual interest is more important than another

espirit de corps

principle organizations should strive to promote team spirit, unity, and morale

unity of command

principle where Fayol wrote that "an employee should receive orders from one supervisor only", otherwise, authority, discipline, order, and stability are threatened

order

principle where Fayol wrote that, "The right man in the right place" forms an effective social order; he applied the same maxim to materials: right one, right place; peace, cleanliness, safety

initiative

principle where employees should be encouraged to develop and carry out plans for improvement; as Fayol wrote, "At all levels of the organizational ladder, zeal and energy on the part of employees are augmented by initiative"

scalar chain

principle where employees should know where they stand in the organization's hierarchy and who to speak to within a chain of command; Fayol suggested the now-familiar organization chart as a way for employees to see this structure clearly; bureaucracy

discipline

principle where everyone should follow the rules; to help, you can make agreements between the organization and employees clear for all to see; methods are varied and must be upheld

authority

principle where managers must possess this to give orders, and recognize that with it comes responsibility; as well as rank, Fayol argues that a manager's intelligence, experience and values should command respect

equity

principle where managers should be fair to all employees through a "combination of kindliness and justice"; only then will the team "carry out its duties with... devotion and loyalty."

stability of tenure of personality

principle where organizations should minimize staff turnover and role changes to maximize efficiency; if people are secure and good at their jobs, they are happier and more productive

unity of direction

principle where teams with the same objective should be working under the direction of one manager, using one plan; Fayol wrote, "is the condition essential to unity of action, coordination of strength and focusing of effort"

scientific management

promotes standardization, specialization, assignment based on ability, and extensive training and supervision; only through those practices can a business achieve efficiency and productivity; attempts to find the optimal way to complete a given task, often at the expense of the employees' humanity; all workers are motivated by money; fair day's pay to fair day's work

Frederick Taylor

proponent of scientific management theory

Douglas McGregor

proponent of theory X and Y

quantitative management

response to managerial efficiency, together experts from scientific disciplines to address staffing, materials, logistics, and systems issues; formed during World War II; uses mathematical models with numerical values and terms; application of quantitative techniques; used more on calculators of risk, benefits, and drawbacks; can't be used alone

project managers

responsible for a temporary work project that involves the participation of people from various functions and levels of the organization, and perhaps from outside the company as well

functional managers

responsible for departments that perform a single functional task and have employees with similar training and skills

general managers

responsible for several departments that perform different functions; responsible for a self-contained division, and for all the functional departments within it

character, attitude, personality

set of leadership traits handy to every situation

management

the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources; the ideal process of dealing with or controlling things or people

conceptual skills

the cognitive ability to see the organization as a whole system and the relationships among its parts; involves the manager's thinking, information processing, and planning abilities; involves knowing where one's department fits into the total organization and how the organization fits into the industry, the community, and the broader business and social environment

contingency management

the idea that effective leadership was directly related to the traits the leader displayed in any given situation; suggests that there is no one management approach that suits every situation and every organization

human skills

the manager's ability to work with and through other people and to work effectively as a group member; demonstrated in the way a manager relates to other people, including the ability to motivate, facilitate, coordinate, lead, communicate, and resolve conflicts; allows subordinates to express themselves without fear of ridicule, encourages participation, and shows appreciation for employees' efforts; the art of working with other people

Henri Fayol

the miner and engineer proponent of principles of administrative management; greatest pillar when it comes to management

management

the process of administering and controlling the affairs of the organization, irrespective of its nature, type, structure and size; an act of creating and maintaining such a business environment wherein the members of the organization can work together, and achieve business objectives efficiently and effectively

technical skills

the understanding of and proficiency in the performance of specific task; includes mastery of the methods, techniques, and equipment involved in specific functions such as engineering, manufacturing, or finance; includes specialized knowledge, analytical ability, and the competent use of tools and techniques to solve problems in that specific discipline; perform the job itself and the hows; assessment of know hows

leading

the use of influence to motivate employees to achieve organizational goals; creating a shared culture and values, communicating goals to employees throughout the organization, and infusing employees with the desire to perform at a high level; a.k.a directing uses social and informal influence to motivate and inspire actions

size, technology, leadership

three variables that affect organizations