Principles of management

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1 Principles of management Week 1 Management: Conceptualizations Jobs Functions Roles Skills History of management thought Overview Pre-classical contributions Scientific approach Bureaucratic approach Human relations approach Contingency approach Management, 2017, Prof. Dr. P. Zamaros 1

2 Management Conceptualizations Management is about Getting work done through others Getting work done with minimal effort, expense or waste efficiency Accomplishing tasks to fulfil organizational objectives - effectiveness Contributing the organizations success Explore Online 1; Online 2 Management, 2017, Prof. Dr. P. Zamaros 2

3 Management Jobs Management, 2017, Prof. Dr. P. Zamaros 3

4 Management Jobs Management, 2017, Prof. Dr. P. Zamaros 4

5 Management jobs Explore Online 1; Online 2 Management, 2017, Prof. Dr. P. Zamaros 5

6 Planning Management Functions Taylor (the rational approach) Determining organizational goals and a means for achieving them Organizing Deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom Leading Inspiring and motivating workers to work hard to achieve organizational goals Controlling Monitoring progress toward goal achievement and taking corrective action when needed Management, 2017, Prof. Dr. P. Zamaros 6

7 Management Roles - Minzberg (the non-rational approach) Figurehead role Managers perform ceremonial duties Leader role Managers motivate and encourage workers to accomplish organizational objectives Liaison role Managers deal with people outside their units Management, 2017, Prof. Dr. P. Zamaros 7

8 Management Roles - Minzberg Monitor role Managers scan their environment for information Disseminator role Managers share collected information with their subordinates and others in the company Spokesperson role Managers share information with people outside their departments or companies Management, 2017, Prof. Dr. P. Zamaros 8

9 Entrepreneur role Management Roles - Minzberg Managers adapt themselves, their subordinates, and their units to change Disturbance handler role Managers respond to pressures and problems that demand immediate attention and action Resource allocator role Managers decide who gets what resources and in what amounts Negotiator role Managers negotiate schedules, projects, resources, goals, outcomes, and employee raises Management, 2017, Prof. Dr. P. Zamaros 9

10 Management Skills Technical skills: Specialized procedures, techniques, and knowledge required to get the job done; essential for team leaders and low-level managers Human skills: Ability to work well with others; essential at all levels of management Management, 2017, Prof. Dr. P. Zamaros 10

11 Management Skills Conceptual skills: Ability to: See the organization as a whole Understand how the different parts affect each other Recognize how the company fits into or is affected by its environment Motivation to manage: Degree of enthusiasm about managing the work of others Explore Online 1; Online 2 Management, 2017, Prof. Dr. P. Zamaros 11

12 Management Skills what to avoid Management, 2017, Prof. Dr. P. Zamaros 12

13 Overview Management, 2017, Prof. Dr. P. Zamaros 13

14 Pre-classical contributions Management, 2017, Prof. Dr. P. Zamaros 14

15 Pre-classical contributions Management, 2017, Prof. Dr. P. Zamaros 15

16 Classical approaches Scientific approach Taylor, Frederick ( ) Developed four principles of scientific management i.e. thoroughly studying and testing different work methods to identify the most efficient way to complete a job Introduced time study i.e. timing how long it takes workers to complete each part of their jobs Management, 2017, Prof. Dr. P. Zamaros 16

17 Classical approaches Scientific approach Taylor, Frederick Principles of scientific management Management, 2017, Prof. Dr. P. Zamaros 17

18 Classical approaches Bureaucratic approach Max Weber ( ) Devised seven elements that characterize bureaucracies Helped improve organizational functioning Fairness replaced favouritism Goal of efficiency replaced goal of personal gain Logical rules replaced arbitrary decision making Management, 2017, Prof. Dr. P. Zamaros 18

19 Classical approaches Scientific approach Henry Gantt ( ) Developed the Gantt chart which indicates what tasks must be completed at which times in order to complete a project Management, 2017, Prof. Dr. P. Zamaros 19

20 Classical approaches Bureaucratic approach Max Weber Bureaucracy: Exercise of control on the basis of knowledge, expertise, or experience; characteristic elements: Qualification-based hiring Division of labor Merit-based promotion Impartial application of rules and procedures Managers separate from owners Chain of command Recorded in writing Management, 2017, Prof. Dr. P. Zamaros 20

21 Classical approaches Scientific approach Frank Gilbreth ( ) Employed motion study to simplify work and improve productivity i.e. breaking each task or job into its separate motions and then eliminating those that are unnecessary or repetitive Management, 2017, Prof. Dr. P. Zamaros 21

22 Classical approaches Scientific approach Frank Gilbreth Motion study Management, 2017, Prof. Dr. P. Zamaros 22

23 Classical approaches Administrative approach Henry Fayol ( ) Principles of management Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interests to the general interests Remuneration Centralization Scalar chain Order Equity Stability of tenure of personnel Initiative Esprit de corps Management, 2017, Prof. Dr. P. Zamaros 23

24 Behavioral (human relations) approaches Group influences Mary Parker Follett ( ) Integrative conflict resolution: Approach to dealing with conflict in which both parties indicate their preferences. It involves working together to find an alternative that meets the needs of both parties Management, 2017, Prof. Dr. P. Zamaros 24

25 Behavioral (human relations) approaches Group influences Elton Mayo ( ) Hawthorne Studies helped understand the effect of group interactions, employee satisfaction, and group dynamics on individual and group performance Management, 2017, Prof. Dr. P. Zamaros 25

26 Behavioral (human relations) approaches Group influences Chester Barnard ( ) Proposed a comprehensive theory of cooperation in formal organizations Stated that willingness to cooperate depends on perception and acceptance of executive authority Management, 2017, Prof. Dr. P. Zamaros 26

27 Quantitative approaches Operations management Eli Whitney ( ), private gun contractor Introduced the concept of manufacturing using standardized, interchangeable parts Gaspard Monge ( ) Explained techniques for drawing three-dimensional objects that aided in making standardized, interchangeable parts Ranson Eli Ods ( ) Invented hand-to-mouth inventories that are similar to justin-time inventory systems Management, 2017, Prof. Dr. P. Zamaros 27

28 Modern integrative approaches Systems approach System: Set of interrelated elements or parts that function as a whole Subsystems: Smaller systems that operate within the context of a larger system Types of systems Closed systems: Sustain themselves without interacting with their environments Open systems: Sustain themselves only by interacting with their environments Management, 2017, Prof. Dr. P. Zamaros 28

29 Modern integrative approaches Systems approach Management, 2017, Prof. Dr. P. Zamaros 29

30 Modern integrative approaches Contingency approach Holds that there are no universal management theories: effective management theory depends on the kinds of problems that managers are facing at a particular time and place Practical implications Management is harder than it looks Managers must lookout for key contingencies that differentiate today s situation from yesterday s Management, 2017, Prof. Dr. P. Zamaros 30

31 Explore Online 1 Read on zamaros.net Reading 1 Reading 2 Management, 2017, Prof. Dr. P. Zamaros 31