MANAGERS AND THE STUDY OF MANAGEMENT MANAGER, MANAGEMENT, THE EVOLUTION OF MANAGEMENT, O CLASSICAL APPROACH, BEHAVIOURAL APPROACH, MANAGEMENT SCIENCE

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1 MANAGERS AND THE STUDY OF MANAGEMENT MANAGER, MANAGEMENT, THE EVOLUTION OF MANAGEMENT, O CLASSICAL APPROACH, BEHAVIOURAL APPROACH, MANAGEMENT SCIENCE APPROACH, THE SYSTEMS APPROACH, CONTINGENCY APPROACH

2 DEFINING MANAGEMENT Our society could not exist or improve its present status without managers to guide its organizations. Organizations come in a variety of sizes and types corporations, schools, governments, and so on, and they serve a wide range functions. All organizations try to reach their common goals. It would be impossible to image a modern society without organized effort or without people who oversee and synchronize that effort.

3 DEFINING MANAGEMENT Organizations are social entities All organizations have a structure Organizations are designed to achieve specific goals Organizations have identifiable boundaries Organizations exist in a relatively permanent basis All formal organizations use specific knowledge (or technology) to perform work-related activities Organization enterprise corporation firm company

4 What Is Management? Mary Parker Follett, described management as "the art of getting things done through people." From Peter Drucker's viewpoint, managers give direction to their organizations, provide leadership, and decide how to use organizational resources to accomplish goals. By Richard L. Daft: "Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources". According to Wikipedia: Management in businesses and organizations is the function that coordinates the efforts of people to accomplish goals and objectives by using available resources efficiently and effectively. Management includes planning, organizing, staffing, leading or directing, and controlling an organization to accomplish the goal or target. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management is also an academic discipline, a social science whose objective is to study social organization.

5 SCHOOLS OF MANAGEMENT CONTINGENCY SCHOOL BEHAVIORAL SCHOOL CLASSICAL SCHOOL MANAGEMENT SCHOOLS QUANTITATIVE SCHOOL SYSTEMS SCHOOL

6 SCHOOLS OF MANAGEMENT MANAGEMENT SCHOOLS BEGINNING DATES EMPHASIS CLASSICAL SCHOOL Managing workers and organizations more efficiently. Scientific Management 1880s Administrative Management 1940s Bureaucratic Management 1920s BEHAVIORAL SCHOOL Understanding human behaviour in the organization. Human Relations 1930s Behavioural Science 1950s QUANTITATIVE SCHOOL Management Science 1940s Increasing quality of managerial decision-making through the application of mathematical and statistical methods. Operations Management 1940s Management Information Systems 1950s 1970s SYSTEMS SCHOOL 1950s Understanding the organization as a system that transforms inputs into outputs while in constant interaction with its' environment. CONTINGENCY SCHOOL 1960s Applying management principles and processes as dictated by the unique characteristics of each situation.

7 THE CLASSICAL SCHOOL The oldest formal school of management Its roots pre-date the twentieth century Concerns ways to manage work and organizations more efficiently Three areas of study that can be grouped under the classical school are: Scientific management Administrative management Bureaucratic management

8 Scientific Management Late 19th century Workers and management often in conflict, slow pace of production The systematic study of work methods in order to improve efficiency (Frederick W. Taylor, Frank Gilbreth, Lillian Gilbreth, and Henry Gantt) Major principles: The application of the scientific method to determine the best method Suggests that workers should be scientifically selected and trained Advocates genuine cooperation between workers and management, mutual selfinterest Manager responsible for planning the work Worker responsible for implementing management's plans Difficult but fair performance standards Implementation of a pay-for-performance incentive Tremendous influence, still valid today.

9 Administrative Management Focus on the management process and principles of management More general theory, Henri Fayol the major contributor: Management was a universal process consisting of functions (planning, organizing, commanding, coordinating, and controlling) All managers performed these functions and distinguished management as a separate discipline of study Presented fourteen principles of management Criticized as rigid and inflexible Functional approach to management is still the dominant way of organizing management knowledge, many of fayols principles of management, still considered relevant

10 Bureaucratic Management Focuses on the ideal form of organization Max Weber the major contributor Early organizations were inefficiently managed, with decisions based on personal relationships and loyalty Proposed that a form of organization, called a bureaucracy, characterized by: Division of labour, Hierarchy, Formalized rules, Impersonality, The selection and promotion of employees based on ability would lead to more efficient management Managers' authority in an organization held in the organizational hierarchy Weber's ideas formed the basis for modern organization

11 THE BEHAVIOURAL SCHOOL Perceived weaknesses in the assumptions of the classical school The classical school emphasized efficiency, process, and principles Some felt that this emphasis disregarded important aspects of organizational life, particularly human behaviour The behavioural school focused on trying to understand the factors that affect human behaviour at work

12 Human Relations The Hawthorne Experiments (1924 early 1930s), Clair Turner, Fritz J. Roethlisberger, Elton Mayo Productivity Workplace: a social system and informal group influence could exert a powerful effect on individual behaviour The style of supervision is an important factor in increasing workers' job satisfaction Collaborative systems between labour and management Interest in the human element at work According to the human relations school, the manager should possess skills for: Diagnosing the causes of human behaviour at work Interpersonal communication Motivating and leading workers If worker needs were satisfied, wisdom held, the workers would in turn be more productive. Thus, the human relations school focuses on issues of communication, leadership, motivation, and group behaviour. Still influences management theory and practice, as contemporary management focuses much attention on human resource management, organizational behaviour, and applied psychology in the workplace The major contributors: Mary Parker Follett, Chester Barnard, Abraham Maslow, Kurt Lewin, Renais Likert, and Keith Davis

13 Behavioural Science Focused on applying conceptual and analytical tools to the problem of understanding and predicting behaviour in the workplace Also a result of criticism of the human relations approach as simplistic and manipulative in its assumptions about the relationship between worker attitudes and productivity. The importance to management practitioners of understanding human behaviour. The behavioural science school has contributed to the study of management through its focus on: Personality Attitudes Values Motivation Group behaviour Leadership Communication Conflict The major contributors: Douglas McGregor, Chris Argyris, Frederick Herzberg, Renais Likert, and Ralph Stogdill

14 THE QUANTITATIVE SCHOOL The quantitative school focuses on improving decision making via the application of quantitative techniques. Its roots can be traced back to scientific management.

15 Management Science and Management Information Systems Uses mathematical and statistical approaches to solve management problems Developed during World War II as strategists tried to apply scientific knowledge and methods to the complex problems of war Industry began to apply management science after the war. George Dantzig developed linear programming, an algebraic method to determine the optimal allocation of scarce resources. Other tools used in industry include: Inventory control theory Goal programming Queuing models Simulation MIS focuses on providing needed information to managers in a useful format and at the proper time. Decision support systems (DSS) attempt to integrate decision models, data, and the decision maker into a system that supports better management decisions.

16 Production and Operations Management Focuses on the operation and control of the production process that transforms resources into finished goods and services Productivity and quality of both manufacturing and service organizations. Major areas of study within operations management include: Capacity planning Facilities location Facilities layout Materials requirement planning Scheduling Purchasing Inventory control Quality control Computer integrated manufacturing Just-in-time inventory systems Flexible manufacturing systems

17 SYSTEMS SCHOOL Focuses on understanding the organization as an open system that transforms inputs into outputs Early contributors: Kenneth Boulding, Richard Johnson, Fremont Kast, and James Rosenzweig Strong impact on management in the 1960s Allow managers to relate different specialties and parts of the company to one another, as well as to external environmental factors The systems school focuses on the organization as a whole, its interaction with the environment, and its need to achieve equilibrium Criticized as too abstract and too complex The ideas inherent in the systems school formed the basis for the contingency school of management

18 CONTINGENCY SCHOOL Focuses on applying management principles and processes as dictated by the unique characteristics of each situation There is no one best way to manage and that it depends factors, such as: The external environment Technology Organizational characteristics Characteristics of the manager Characteristics of the subordinates Criticize the classical school for its emphasis on the universality of management principles Organizational design, job design, motivation, and leadership style The major contributors: Joan Woodward, Paul Lawrence, Jay Lorsch, and Fred Fiedler, among many others

19 CONTEMPORARY "SCHOOLS" OF MANAGEMENT Management research and practice continues to evolve and new approaches to the study of management continue to be advanced. This section briefly reviews two contemporary approaches: Total quality management (TQM) The learning organization While neither of these management approaches offer a complete theory of management, they do offer additional insights into the management field.

20 Total Quality Management Focuses on managing the entire organization to deliver quality goods and services to customers Implemented in Japan after World War II and was a major factor in their economic renaissance TQM has at least four major elements. Employee involvement A customer focus Benchmarking Continuous improvement TQM has been implemented by many companies worldwide and appears to have fostered performance improvements in many organizations. Perhaps the best-known proponent of this school of management was W. Edwards Deming.

21 Learning Organization Environmental and technological change One of the biggest challenges for organizations is to continuously change in a way that meets the demands of this turbulent competitive environment The learning organization: one in which all employees are involved in identifying and solving problems The organizing principle of the learning organization is not efficiency, but problem solving. Three key aspects of the learning organization are: A team-based structure Empowered employees Open information Peter Senge is one of the best-known experts on learning organizations

22 The Evolution of Managerial Work by Tim Barnett

23 Some of basic management rules they did not tell us at school Those who are at low positions at the hierarchy, are there, because they do not want to play politics. Those who are at the highest do not need to play games anymore. Those who are in the middle must play, because they do not want to be low and they are still not high. The most number of inefficient, bad-performing, frustrated and unsettled people are in the middle. Their performance is bind to the rules, conventions, mortgage, high costs and a tie. The solution of the complex problems is seen only the ones from the bottom (closest to the customer, no one asks their opinion) or those from the top, because they have a broad overview. The solution of the complicated problems often lies over the border we have created ourselves. There is no border. We can call them contracts, templates, approaches, mediators, bosses, bible it does not matter. They all can be changed or ignored. The most successful people create their own rules. The best solutions are created at the edge. It is necessary to take the risk. To be able to take the risk, we need to be ready to lose something the chair, benefits, status, and contract. The first to be forgotten in the big company is always the customer.

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