Introduction to Management

Management – An Introduction

• Management is the key concept for the introduction to management.
• Important learning outcomes include explaining management through the LANDSCAPE acronym, defining management, and discussing the eclectic nature of management theory.

Vignette: Alibaba's Management

• Alibaba Group, founded in 1999, specializes in e-commerce, retail, internet, and technology.
• Daniel Zhang, as CEO, aimed to transform Alibaba, emphasizing leadership and future vision over merely achieving expected results.
• Zhang distinguishes between managers and leaders, viewing leaders as those who craft the future and lead teams beyond just meeting key performance indicators.

What is Management?

• Management lacks a single, all-encompassing definition despite its common usage.
• The LANDSCAPE acronym is used to define management: Levels, Activities, Novel Aspects, Dealings, Science, Craft, Art, Predispositions, and Environment.
• Manager refers to someone in charge of an organization, while managing involves administering resources to achieve specified goals.

Management - LANDSCAPE

• Levels of Management indicate position within the hierarchy.
• Activities of Management include planning, organizing, motivating, and controlling.
• Novel Aspects of Management incorporate change in light of environmental forces.
• Dealings (roles, doings, duties, deeds) of management refer to Mintzberg's managerial roles.
• Science of Management (eclectic set of management theories) defines management through various theories.
• Craft of Management (skills and competencies required to practice) emphasizes skills to complete tasks in efficient ways.
• Art of Management (the creative, innovative and visionary activities) are reliant on intuitive processes and a feel for whats right.
• Predispositions of Management (how we see management challenges) notes the effect of an individuals values on decision making.
• Environment for Management (context) notes the challenges and opportunities presented by the market.

Levels of Management

• Managerial work varies based on the position in the organizational hierarchy.
• First-level managers focus on facilitating employee performance, with planning horizons measured in days or weeks.
• Middle managers coordinate group efforts and develop competitive advantages, with tactical and strategic responsibilities.
• Senior managers, including CEOs, focus on meeting external challenges and determining overall strategy, with decisions impacting the organization for several years.

Activities of Management – The Process of Management

• Management activities are grouped in terms of planning, organizing, motivating, and controlling; the POMC approach.
• Planning involves decisions about organizational aims and future intentions.
• Organizing translates plans into action by allocating responsibilities and coordinating activities.
• Motivating activates individuals to achieve organizational goals.
• Controlling ensures plans are correctly implemented via establishing targets, measuring progress, and applying corrective action.

Novel (Changing) Aspects of Management

• Contemporary management requires adaptations to changes in the external environment.
• Contemporary managers are more democratic, empowering employees and seeking collaboration in flatter organizations.

Dealings of Management

• Managerial roles involve interpersonal, informational, and decisional activities, emphasizing the observable practices of managers.

Science of Management (Theory)

• Management theories are clustered into major categories: Classical-Scientific, HR, Contingency theories, Strategic perspectives.
• Classical-Scientific Management focused on dividing work, establishing hierarchies, and achieving efficiency.
• HR Theories focused on human behavior, employee motivation, communication and leadership style.
• Contingency theories viewed organizations as complex systems, adapting based on social, technical and economic factors.
• Strategic perspectives focus on developing strategic mission and inculcating organizational values.

Environment for Management

• Organizations adapt to forces in the external environment, influencing organizational actions and internal operations.
• Daniel Zhang "[He] led the company's effort to drag the traditional retail industry into the 21st century.'

Management Defined

• Henri Fayol suggested, "to manage is to forecast and plan, to organize, to command, to coordinate and to control."
• Management is a process enabling organizations to set and achieve their objectives by planning, organizing and controlling resources.

Concluding Discussion – What is Management?

• Perspectives on what management is include the Classical school, the Systems Approach.

CHAPTER 2 Organizations

• The word organization is complicated; it is an ambiguous construct.
• The purpose of this chapter is to explore what constitutes an organization from the perspective of management.
• Organizations exist in either the public or private sector; however, companies, corporates or businesses operate in the latter.

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• Apple Inc. is a forty-year-old large American multinational technology company.
• Amazon.com Inc., trading as Amazon, an American electronic commerce and cloud computing company based in Seattle, founded in 1994.
• Over 70 years old is the United Nations (UN).
• The National Health Service (NHS) is the name used for each of the (government-funded) public health services in the United Kingdom (UK).
• Lingumi (Ltd) is a new, privately owned, start-up (incorporated in 2015).

Organizations, Companies, Corporations and Common Legal Forms

• An organization is a social arrangement for achieving controlled performance in pursuit of collective goals.
• We can categorize organizations in many ways.
• The public sector is that part of the economy that is controlled by the state.
• Turning our attention to the private sector, a business organization exists to provide goods or services.
• The legal form refers to the type of structure within which an organization sits in the eyes of the law.
• A company (or other organization) not formed into a legal corporation is referred to as unincorporated.
• There are three main forms: sole trader, unincorporated association or partnership.
• Alternatively, private sector companies may become "incorporated" to form an entity with a separate legal personality.
• A limited company is owned by its members (those who have invested in the business) and as the name suggests, they enjoy limited liability, i.e. the company's finances are separate from the personal finances of their owners.
• In the UK, a company limited by shares is either a Private Limited Company (Ltd) or a Public Limited Company (plc), not to be confused with the public or private sector as both of these company forms exist in the private sector.
• A Public Limited Company may also become a Listed Company by floating its shares on a recognized stock exchange, creating a wider market for its shares.
• Businesses around the world seek to attract funding from investors in order to expand and grow.
• Corporate governance refers to the system used to control and direct a company's operations and includes a company's structures and processes for decision-making at the highest level.

Organization/Company Size: Employment, Employees and Turnover

• A management revolution took place as more and more company owners passed day-to-day responsibility for running the company to professional managers.
• Small businesses accounted for 99.3 per cent of all private sector businesses.
• In 2017, there were 1.3 million employing businesses and 4.3 million non-employing businesses. Therefore, 76 per cent of businesses did not employ anyone aside from the owner(s).

Organization/Company Age

• The average age of UK companies on the total register in 2016-17 was 8.3 years. Over half of companies were aged less than five years.
• Indeed, it seems that the register is increasingly characterized by young companies: the average age of dissolved and closed companies has declined.

Organization/Company Location: UK and Worldwide

• Almost one in three companies are located in London and the south-east.

Business Counts by Broad Industry

• In 2017, the professional, scientific and technical sector accounted for the largest number of businesses in the UK however, this only contributed a small percentage to overall gross domestic product (GDP).

Organizational Goals

• Organizations are about groups of people with a shared goal. Formal organizational goals set out, in broad terms and in writing, the purpose of the organization (strategic objectives).
• Many organizations consider the mission to represent formal goals.
• With regard to the private sector, the theory of the firm consists of a number of economic theories. It describes its existence, its behaviour and its relationship with the market. The traditional 'theory of the firm' assumes profit maximization is the goal.
• Amongst the performance measurements (goals) for organizations is the triple bottom line the economic, environmental and social linked to social responsibility. The triple bottom line idea encompasses environmental responsibility, social awareness and economic profitability.

Concluding Comments

• Different types of companies exist in law and each has different advantages and disadvantages and rules within which they must comply.

CHAPTER 3 Classical Management

• The earliest studies of management were arguably in the first quarter of the 20th century, although it is not uncommon for people to conceive a period between the 1880s (late 19th century) and almost up to the mid-20th century, dependent upon what is included in the definition.
• Three prominent contributors to classical management theory were Henri Fayol, Frederick Taylor (scientific management - Taylorism) and Max Weber (bureaucracy), each of whom will be considered in this chapter.

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THE INDUSTRIAL REVOLUTION (1760 to 1820-40)

• Industries shifted from small scale cottage industries to larger scale centralized factories.

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THE CLASSICAL ERA OF MANAGEMENT late 19th-mid 20th century

• An increase in organizational size occurred, moving from a few known employees to many unknown.
• The principal problem for entrepreneurs producing goods and services was continuous, predictable production.
• Rules and procedures, always in existence and quite impersonal, plus machinery, helped control bureaucracy.

Henri Fayol: Definition and Principles Of Management

• Henri Fayol outlined six key activities of any industrial undertaking: Technical, Commercial, Financial, Security, Accounting, Managerial.
• To manage is to "forecast and plan, to organize, to command, to coordinate and to control".
• Fayol lists 14 so-called "principles of management". They are the precepts which he applied most frequently during his working life. He emphasized these principles not as absolutes but capable of adaptation, according to need.
• Fayol was arguably the first to achieve a genuine theory of management based on a number of principles that could be passed onto others.

Taylor and the Principles of 'Scientific Management'

• Early in career Frederick Taylor realized workers put in minimal effort and named this soldiering which he subdivided into 'natural' and 'systematic' soldiering. He divided this tendency as soldiering with natural (humans' natural tendency to take things easy), and the later 'systematic' (the deliberate and organized restriction of work rate by employees).
• Taylor’s scientific approach required, development of a science for each operation to replace opinion and rule-of-thumb, setting organizations to take all workload from workers with actual job performances, acceptance that all management itself be governed.
• To measure the best method for an operation, Taylor wanted to have a series of stop-watch time. All unnecessary movements could then be eliminated in order to produce the best method of doing a job.
• Whilst he claimed everyone should benifit, Taylor's methods saw individuals becoming automatons and that their jobs were definitly reducing in scope. Critics comment that aspects of Taylorism led to gradual de-skilling of work.
• Workers were required to provide accurate tasks and not worry about division of production, receive greater reward with wage increases (30 to 100%), give up ideas of soldiering and cooperate with management developing the science, and agree to be trained in new methods that apply to where they operate.
• Taylor demonstrated this through an experiment involving shovellers; increased output by 60%; lowered cost of operations as well.

Scientific after Taylor; Gantt and the Gilbreths

• Gantt introduced a payment system. He felt that if any one worker could achieve the task, that the rest would quickly follow. Gantt didn't believe there was solely one best way, but only a way ‘which seems to be best at the moment’.
• A particular feature of the Gilbreths' work was its detailed content. They were convinced it was possible to find the 'one best way' of operating Measurement was their byword.
• Fordism is associated with standardization, where processes for production are often achieved using unskilled labour and special machinery.

Vignette

The Ford Motor Company was incorporated in 1903. By 1913, the company had developed all of the basic techniques of the assembly line and mass production. The Ford Motor Company went on to become one of the largest and most profitable companies in the world.

Vignette

• Taylorism in todays operation-cleaning a Merriott hotel room is an exact science outlined by instructions for cleaners.

Comments on the Scientific Management School

• Has advantages such as its rational approach, measuring of tasks, brought enormous increase, positive role improvements for conditions. Though disadvantages include emphasis to reduction to rigid procedures and tasks, ""and generating a carrot and stick to motivation.

Urwick and Brech's Contribution

• In one of his best-known writings, The Elements of Administration, published in 1947, Urwick set out numerous principles;
• Objectivity to Specialization and Correspondence.

Bureaucracy and Max Weber

• Weber wanted to find out why people in organizations obeyed those in authority over them.
• Weber identified three basic types of legitimate authority: traditional authority, charismatic authority, rational-legal authority.
• Weber felt that bureaucracy was indispensable for the needs of the large-scale organization.

Bureaucracy after Weber

• We revisit the influential work of the Aston Group in Chapter 5.

Classical Management Today

• Most Americans are working in large bureaucratic organizations than ever before. Increase due to complexity.

Conclusion

• In order to understand context or rationale behind developments in management theory in the new century, we must try and have a degree to view aspects of what is most valued.
• Organizations must be designed around a sustainable, better working, greater productivity, and higher performance and also have employees feel connected and cared for in order to lead through assertive risk taking and innovation

CHAPTER 2 - Systems and Contingency Theories

• The best way to view, interpret and reason about given phenomenon such as management or organizations: Holism.

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CONCEPTS THAT WILL HELP YOU UNDERSTAND THE WORLD

• Holism' is the concept where the whole is greater than the sum of its parts; it is an appreciation not of the simple but of the complex. Writing for Forbes, Dr Dale Albrecht states the systems thinking approach is fundamentally different. Reductionist thinking breaks down a system into its component pieces and deals with each separately.

The Emergence of the Systems Approach

• Systems thinking emerges from a shift in attention from parts to the whole.
• Key variables: people, organizational structures, environment, technology.

Systems Theory

• According to Johnson, Kast and Rosenzweig, management is the process of integrating unrelated resources into a useful system for objective accomplishment.
• An organization is a system of interrelated parts for a number of goals.

The Organization as an Open System

• They receive inputs or energy from their environment.
• They convert these inputs into outputs.
• They discharge their outputs into their environment.

Characteristics of Opens Systems

• Inputs and energy.
• Conversion to outputs.
• Outputs and energy.
• Cyclic nature.
• Feedback enabling corrections.
• Differentiation
• Equifinality.

Business in an open system

• The four systems: Production technical, Supportive to procures and dispose (support), Maintenance maintain the rules and relations and Rewards Adaptive deals with Change marketing and R&D Managerial coordination over structures.

Developments in system theory

• Human relations theory set to humanize the workplace, but did not address structure and performance.

The Tavistock Group

• Trist and Bamforth suggested that effective performance was based on a socio-technical system integrating and technology and social needs.
• Tasks that can be performed by just one shift and the members allocated tasks and payment to incorporate group bonus may be altered . Production increased, absenteeism reduced, lower accident.

Cont.....

• Ken Rice in 1948 in which he developed key aspects of system theory, specifically the open system as having an industrial type system.

Contingency theories

A contingent system of control

• In 1950-60 socio created a need for new structure relating back to contingency that all designs would have to fit the needs of organization and its internal external pressures.
• More than a few theorists argued that that any theory could guarantee efficient organization. Management can be selected.
• A mix of theories would best fit as long with contingency is determined.
• Many researchers since have related success to the best way be organized.

Strategic choice

The uncertain environment

• Is there is that no single solution that can solve the best that organization. Can achieve what is correct in any time but all those parts need a process that the manager must adapt too. ==End of OCR for page 77==