MG4031 Management Principles Chapter 1

MG4031 Management Principles

• Course covers Introduction to Management and Evolution of Management Theories
• Reading material is Chapter 1, Modern Management, pages 1-39

What is Management?

• Management is the process managers use to achieve organizational goals through the deployment of human, financial, knowledge, and physical assets.
• This process necessitates functional knowledge in various domains including Planning, Organizing, Staffing, Motivating, Leading, and Controlling.

Managerial Levels

• Top Management: Responsible for the overall mission and direction of the organization.
• Middle Management: Translates general plans and objectives developed by top managers.
• Front Line Management: Responsible for directing, supervising, and managing employees.

Management Skills

• Technical skills: Ability to perform specialized tasks involving methods or processes.
• Interpersonal skills: Human skills, involving the ability to interact effectively with people.
• Conceptual skills: Recognizing complex and dynamic issues, analyzing influencing factors, and finding solutions.

Managerial Roles (Mintzberg)

• Interpersonal Roles:
  • Figurehead: Represents the organization at external events.
  • Leader: Directs and coordinates people.
  • Liaison: Deals with people outside the organization.
• Informational Roles:
  • Monitor: Receives, screens, and sees information.
  • Disseminator: Shares knowledge and data.
  • Spokesperson: Provides information on the organization's official position to others.
• Decisional Roles:
  • Entrepreneur: Designs and implements new projects.
  • Disturbance handler: Deals with problems outside immediate control.
  • Resource allocator: Chooses from competing demands.
  • Negotiator: Discusses and reaches agreements.

Evolution of Management Thought

• Classical Approaches (1890-1950):
  • Scientific Management (early 1900s): Focus on optimizing tasks and procedures.
    • Four core principles: Science of work, selection/development of human capital, cooperation between managers and workers, division of labor.
  • Bureaucracy (early 1900s): Ideal organizational structure focused on hierarchy, rules, and impersonal treatment.
    • Key principles: Division of labor, hierarchical structure, selection based on technical skills, formal rules, impersonality, and uniformity in employee treatment.
  • Administrative Management (early 1900s): Universal principles encompassing organizational activities, especially relevant to senior management.
    • Fayol's six areas of business activities: Finance, commercial, technical, managerial, security, and accounting.
  • Human Relations (1920s-1930s): Importance of social factors influencing performance, exemplified by Hawthorne Experiments.
• Contemporary Approaches (1960s-Present):
  • Quantitative Management: Focus on using mathematical and statistical methods for problem-solving in organizations.
  • Organizational Behavior: Study of individual, group, and organizational processes using behavioral lens, particularly addressing work aspects.
  • Contingency Theory: Emphasizes context-dependent management practices, acknowledging the influence of factors like technology and environment.
    • Burns & Stalker Framework: Links mechanistic and organic structures to slow and fast technological change respectively.

Rationale for International Management Growth

• Globalization's impact on MNCs, including increased competition, need for innovation, knowledge-based approaches, and constant organizational adaptation.
• The ongoing trend of internationalization of business activities.
• The influence of economic, social, enterprise, and workforce conditions.
• The potential for deglobalization, trade barriers, and shifts in interdependence.