McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 1 Chapter Management and Its Evolution Management and Its Evolution McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives After reading this chapter, you should be able to: After reading this chapter, you should be able to: z Understand the roles played by individuals, teams, and managers in carrying out company activities. z Practice the four major functions of management z Recognize the interpersonal, informational, and decisional roles played by top level managers. z Apply the general skills needed to carry out managerial responsibilities. z Integrate the major elements from the various perspectives of management theory. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. The performance of organizations depends to a large extent on how their resources are allocated and their ability to adapt to changing conditions. Successful organizations know how to manage people and resources efficiently to accomplish organizational goals and to keep those goals in tune with changes in the external environment. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Management in the New Millennium z A firm can be efficient by making the best use of people, money, physical plant, and technology. z It is ineffective if its goals do not provide a sustained competitive advantage. z A firm with excellent goals would fail if it hired the wrong people, lost key contributors, relied on outdated technology, and made poor investment decisions. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Strategic Managers Tactical Managers Operational Managers Levels of management McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Strategic Managers z The firm’s senior executives with overall responsibility for the firm. ¾ Developing the company’s goals ¾ Focus on long-term issues ¾ Emphasize the growth and overall effectiveness of the organization z Concerned primarily with the interaction between the organization and its external environment. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Tactical Managers zResponsible for translating the general goals and plans developed by strategic managers into specific objectives and activities. ¾Shorter time horizon ¾Coordination of resources zThese are middle managers McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Operational Managers z Lower-level managers who supervise the operations of the organization. z Directly involved with non-management employees ¾ Implementing the specific plans developed with tactical managers. ¾ This is a critical role to the organization. ¾ Operational managers are the link between management and non- management staff McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Management Functions Planning Organizing Leading Controlling McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. [...]... potential problems and taking corrective action McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Management as a set of roles Day-to-day management activities are routine, orderly, and rational These include: Interpersonal roles - communication with superiors, peers, subordinates, and people from outside the organization Information Roles - obtaining, interpreting, and giving out... Decisional Roles - choosing among competing alternatives McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Management as a set of skills The four basic management functions require a set of skills to be carried out properly Because most managerial tasks are unique, ambiguous, and situation-specific, there is seldom one best way to approach them McGraw-Hill © 2004 The McGraw-Hill Companies,... time efficiently McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Skills for Managerial Success People Skills Delegating Influencing Motivating Handling conflict Win-win negotiating Networking Communicating Verbal Nonverbal Listening Cross-cultural management Heterogeneous teamwork McGraw-Hill (continued) Self-Awareness Skills Personal adaptability Understanding personal biases... design and organization of work Adam Smith, The Wealth of Nations division of labor McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved The Operational Perspective Scientific Management Frederick W Taylor Quantitative Management Ford W Harris Quality Management Walter A Shewhart Bureaucratic Management Max Weber Administrative Management Henri Fayol McGraw-Hill © 2004 The McGraw-Hill... personal biases Internal locus of control © 2004 The McGraw-Hill Companies, Inc All rights reserved The Evolution of Management Thought Early Management Thought Contemporary Management Perspectives McGraw-Hill Classical Perspective Behavioral Perspective © 2004 The McGraw-Hill Companies, Inc All rights reserved Early Management Thought Early ideas about management strategy Sun Tzu, The Art of War Early ideas... Hawthorne management studies, performed from 19 24 – 19 32 at Western Electric Company’s plant near Chicago) McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Maslow’s Hierarchy of Needs Self-Actualization Need for Self Esteem Need for Social Relations Need for Security Physical Needs McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved McGregor’s Theory X and Theory... rights reserved Management as a set of skills Four major categories of skills will help you become a good manager: Strategic Skills - the ability to see “the big picture”, focus on key objectives without getting mired in details, and having a sense what is happening inside and outside the company Task-Related Skills - the ability to define the best approach to accomplish personal and organizational... time, organizational structure, financial resources, and people They also involve the ability to prioritize, remain flexible to make necessary changes, and ensure that value is being created McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Management as a set of skills People-Related Skills - getting work done through others and with others Include the ability to delegate tasks,... executing the work accordingly McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Key Characteristics of Weber’s Ideal Bureaucracy Specialization of labor Formal rules and procedures Impersonality Well-defined hierarchy Career advancement based on merit McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Fayol’s 14 Principles of Management Division of work Centralization... in productivity and work satisfaction The Hawthorne effect - when a manager shows concern for employees, their motivation and productivity levels are likely to improve Human Relations Approach - the relationship between employees and a supervisor is a vital aspect of management Employee motivation Leadership style McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Hawthorne Effect . decisions. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Strategic Managers Tactical Managers Operational Managers Levels of management McGraw-Hill © 2004 The McGraw-Hill Companies,. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 1 Chapter Management and Its Evolution Management and Its Evolution McGraw-Hill © 2004 The McGraw-Hill Companies,. horizon ¾Coordination of resources zThese are middle managers McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Operational Managers z Lower-level managers who supervise the operations