Introduction to Management and Organization

Contemporary Management

• Contemporary management is a subject focusing on managing efficiently and effectively in today's world.
• Learning objectives include explaining management concepts, applying management functions, outlining a manager's role, analyzing management issues, and classifying management theories.
• Organizations comprise people working together to achieve specific goals.
• A goal is a desired future condition that the organization strives to achieve.
• Management is the process of using organizational resources (people, machinery, raw materials, information, skills, financial capital) to attain goals via planning, organizing, leading, and controlling.
• Managers supervise and coordinate the work of others to accomplish organizational goals.

Management Key Concepts

• Employees and workers are part of organizational resources.
• Managers oversee the work to meet organizational goals.
• Managers coordinate and direct the work of other people successfully attaining goals.
• Organizations must provide desired goods or services for customers.
• Efficiency and effectiveness help managers use resources to satisfy customers and achieve goals.
• Efficiency focuses on minimizing resources to attain the same goal.
• Effectiveness concerns achieving appropriate goals correctly.

Managerial Concerns

• Efficiency involves getting the most output for the least possible input.
• Effectiveness seeks the right goals and achieves them successfully.

Managerial Functions

• Henri Fayol identified the four managerial functions:
  • Planning: identifying and choosing appropriate goals and action plans.
  • Organizing: structuring work relationships.
  • Leading: guiding and motivating people.
  • Controlling: monitoring, measuring, and taking action to ensure goals are met.

Planning

• Planning is the process of identifying and selecting appropriate goals and action plans for an organization.
• Steps of planning involve defining goals, determining how to achieve them, and allocating resources.
• Good planning determines organizational effectiveness and efficiency, defining organization strategy.

Organizing

• Organizing involves structuring work relationships to allow individuals to work collaboratively and attain goals.
• Managers group the people to fulfill organizational tasks and establish lines of authority and responsibilities across departments.

Leading

• Leading entails setting a clear vision for employees, directing employees, and empowering employees to attain organizational goals.
• Managers use leadership skills, delegation, decision-making, communication, power, and influence.
• Effectiveness in leading results in a high level of worker motivation.

Controlling

• Controlling involves evaluating how well the organization is meeting its goals and taking corrective actions when necessary.
• Managers monitor individuals and departments to determine if the desired performance has been achieved.
• Effective management includes taking actions to improve performance as required.

Management Levels

• Organizations typically have three levels of managers:
  • First-line managers supervise daily operations and workers.
  • Middle managers supervise the work of first-line managers and help accomplish organizational goals.
  • Top managers oversee all departments and establish organizational goals and monitor middle managers.

Restructuring and Downsizing

• Restructuring involves changes to organizational structure to reduce costs and increase efficiency.
• Downsizing involves eliminating jobs at all organizational levels, which can lead to higher efficiency but often results in low morale and customer complaints.

Management Trends

• Empowerment involves expanding responsibilities and skills of workers and allowing them more autonomy.
• Self-managed teams empower a group of workers with responsibility for supervising their actions effectively.

Managerial Roles

• Managerial roles involve the specific tasks someone performs due to their position in an organization.
• There are three major role categories:
  • Interpersonal: figurehead, leader, liaison.
  • Informational: monitor, disseminator, spokesperson.
  • Decisional: disturbance handler, resource allocator, negotiator.

Interpersonal Roles

• Figurehead role: symbolizing the organization and its goals.
• Leader role: training, counseling, mentoring, and encouraging high employee performance.
• Liaison role: linking and coordinating people inside and outside the organization to help meet goals.

Informational Roles

• Monitor role: analyzing information from both internal and external sources.
• Disseminator role: conveying information to influence employees' attitudes and behavior.
• Spokesperson role: using information to shape how people inside and outside the organization view the organization.

Decisional Roles

• Entrepreneur role: initiating new projects or programs.
• Disturbance handler role: managing unexpected events and crises.
• Resource allocator role: assigning resources across departments and setting budgets.
• Negotiator role: negotiating solutions with other managers, unions, customers, or shareholders.

Managerial Skills

• Conceptual skills involve analyzing situations and understanding cause-and-effect relationships.
• Human skills involve understanding and guiding people's behavior effectively.
• Technical skills refer to job-specific knowledge and expertise.
• Enhanced managerial skills come from formal training, experience, and continuous learning.

Management Challenges

• Increasing globalization has created broader challenges.
• Maintaining efficiency, quality, innovation, and responsiveness remain critical.
• Increasing ethical conduct is essential.
• Diversity within the workforce is an ongoing management challenge.
• Leveraging new technologies wisely and effectively is required.

Management Theories

• Concepts are individual ideas that describe or categorize aspects of the world.
• Theories organize and support concepts with evidence, providing broader explanations for events and behaviors.

Scientific Management Theory

• Modern management emerged in the late 19th century.
• Changing machinery and customer needs drove the need for greater efficiency.
• Managers sought to improve worker-task efficiency.

Job Specialization

• Adam Smith (18th century economist) observed different approaches to production methods.
• Breaking down complex tasks into small, specialized tasks increased efficiency and productivity.

Evolution of Management Theory (Timeline)

• Scientific management (around 1890)
• Administrative management
• Behavioral management
• Quantitative management
• Organization-environment theory
• Contingency theory

Scientific Management

• Frederick Taylor established principles to improve efficiency.
• Detailed study of tasks to discover better ways of performing them.
• Codify methods into rules, selecting workers with right skills.
• Set fair performance levels, and reward performance.
• Focus specifically on output and efficiency sometimes at the cost of other organizational needs or morale.

The Gilbreths

• Frank and Lillian Gilbreth refined Taylor's methods.
• Focused on improving time and motion studies, dividing actions into components.
• Found improved ways to perform actions to increase efficiency and productivity.
• Furthered interest in employee well-being factors.

Administrative Management

• Formal system of organization and administration ensuring its smooth and efficient operation.
• Max Weber developed the concept of bureaucracy.
• Five principles of bureaucracy detail rules, structure, and responsibilities.

Bureaucratic Principles

• Written rules to guide actions.
• Hierarchy of authority defining reporting lines.
• Clear divisions of tasks and responsibilities.
• Fair evaluation and reward based on performance.

Fayol's Principles

• Henri Fayol established 14 principles for administrative management.
• Includes division of labor, authority and responsibility.
• Includes unity of command, unity of direction, equity.
• Includes discipline, initiative, and order.
• Includes remuneration, stability of tenure, and esprit de corps.

Behavioral Management

• Focuses on how managers can personally motivate employees to increase efficiency and output.
• Mary Parker Follett emphasized how workers can help in analyzing their jobs for improvements and how the worker typically knows the most efficient way to do a task.

The Hawthorne Studies

• Hawthorne studies examined worker efficiency at the Western Electric Company in 1924-1932.
• Research found that worker productivity rose regardless of changes in lighting levels.
• Worker happiness and attention played a factor.

Theory X and Theory Y

• Douglas McGregor proposed how managers view workers in two different ways.
• Theory X: workers are lazy and need close management control.
• Theory Y: workers can be motivated and like to work well on the job if given the chance and latitude.
• The different managerial theories help understand how employees react to managerial approaches.

Theory Z

• William Ouchi researched cultural differences between Japan and the USA concerning work and employment.
• Theory Z blends elements of both USA and Japan structures, considering factors such as group work and long-term employment.

Management Science

• Rigorous quantitative methods to maximize resources.
• Includes linear programming, modeling, simulation systems.
• Techniques to analyse production aspects.

Organization-Environment Theory

• Systems theory considers relationships within and outside an organization.
• Forces, conditions, and influences outside the organization are studied.
• The theory suggests a stage approach; input, conversion, and output.

Systems Considerations

• Open systems interact with the environment; closed systems are self-contained.
• Synergistic outcome occurs when the overall system performance exceeds the sum of individual component performance.
• Coordination is essential for successful systems design.

The Organization as an Open System

• Organizations act like open systems, influenced by the environment.
• Input, conversion, and output stages illustrate this interaction.
• Organizations' decisions impact resources and products/services, and vice versa.

Contingency Theory

• No single best way to manage exists; management approaches depend on the environment.
• Management systems need to adapt dynamically to changing environments and demands of the business.

Structures

• Mechanistic structure (Theory X) centralizes authority and tightly controls employees; best in stable environments.
• Organic structure (Theory Y) decentralizes authority; suitable for dynamic and adaptable environments.

Covid-19 Pandemic Challenges

• Three COVID-related organizational challenges should be provided by the students.