MG4031 Management Principles - Introduction to Management

MG4031 Management Principles Introduction to Management and Evolution of Management Theories Reading: Chapter 1 Modern Management, pages 1-39  What is Management? Management is the process in which managers engage to achieve organisational goals through the de...

MG4031 Management Principles Introduction to Management and Evolution of Management Theories Reading: Chapter 1 Modern Management, pages 1-39  What is Management? Management is the process in which managers engage to achieve organisational goals through the deployment of human, financial, knowledge and physical assets The process demands functional knowledge in multiple domain spaces: Planning; Organising; Staffing; Motivating; Leading; Controlling  At what levels do Managers operate? Top Management: responsible for overall mission & direction of the organisation Middle Management: translate general plans & objectives developed by top managers Front Line Management: responsible for directing, supervising & managing employees  What Skills Do Managers Require? Management skills demanded will vary, depending on the level Technical: ability to perform a specialised task involving a method or process Interpersonal: human skills – ability to deal with people Conceptual: recognising complex & dynamic issues, examining factors that influence these problems & finding solutions  What do we know about the Roles Managers Perform? Mintzberg’s 10 common managerial roles relating to three core domains: Interpersonal Roles Figurehead-represent organisation at external events Leader – direct & co-ordinate people Liaison- dealing with people outside the organisation Informational Roles Monitor - see, receive, screen information Disseminator – share knowledge or data Spokesperson – provide others with information on organisation’s official position Decisional Roles Entrepreneur – designing & implementing new project, business Disturbance handler – dealing with problems beyond immediate control Resource allocator – choosing between competing demands Negotiator – discussion and reaching agreement Evolution Of Management Thought Classical Approaches Contemporary Approaches 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Administrative Quantitative Systems Contingency Current and management management theory theory future revolutions Scientific Human Organizational management relations behavior Bureaucracy  The Classical Approaches There are 4 main classical theories: Scientific Management Bureaucracy Administrative Human Relations  Classical Scientific Management Fredrick Taylor: Principles of Scientific Management One best way of doing a task by applying scientific methods Identified 4 core principles: 1. The development of a true science of work 2. Scientific selection and development of human capital 3. Co-operation between managers and workers 4. Division of work between workers and managers  Classical Bureaucracy Max Weber: Ideal Organizational Structural Form Identified several key design principles: 1. Division of Labor in task allocation 2. Hierarchy in reporting relationships 3. Selection for technical merit 4. Career orientation for managers as professionals 5. Formalization of rules and procedures 6. Impersonality and uniformity in the treatment of employees  Administrative Management Administrative management offered Universal Principles of Management – associated with H Fayol (1841-1925) Focused on senior managers and the policy issues faced by them Fayol concluded that all business activities should be divided into six essential areas  Human Relations Elton Mayo and the Hawthorne Experiments identified the social and psychological factors influencing performance The Illumination Experiments between 1924 and 1927 designed to test the impact of light on productivity as part of a naturally occurring experiment The Relay Assembly Room Experiments between 1927 and 1932 designed to study the effects of rest breaks Experiments, in combination, demonstrated: Social factors were more important than physical factors Uncovered the existence of the informal organization co-existing alongside the formal organization Studies led to the discovery of the Hawthorne Effect in experimental design  Contemporary Approaches There are 3 main contemporary theories: Quantitative Management Organizational Behavior Contingency Theory  Quantitative Management Since the 1950s much debate concerning managing for competitive success, culminating in a debate around shareholder interests versus stakeholder interests Quantitative management movement grew out of the recruitment of former military planners culminating in the growth of quantitative expert teams whose focus was on tackling large scale complex organizational issues arising from the post WWII reconstruction Saw the growth of management science and the development of applied quantitative methods for problem analysis Engendered a debate about organizations as technical versus social systems  Organizational Behavior Movement Associated with the work of Douglas McGregor, among others, who sought to build psychological insights into complex organizational problems Investigated the complex nature of individual, group and organizational processes through a behavioral lens Much of the work was centered on aspects of work and organizational design which would positively influence individual autonomy, job challenge, participation and productivity. Major contribution to the study of contemporary organization, but some approaches ignored rising organizational situational influences arising from environmental complexity and technological shifts  Contingency Theory Management practice is context dependent Contingencies are omnipresent Engendered a debate on Universalism versus Contextualism Contingency ideas center around technology and environmental dynamism Rate of change and complexity of the environment Digitalization, task complexity and displacement Values, skills and attitudes Remains one of the most popular theories in management because it is close to the lived experience of the practicing manager The Burns & Stalker Framework Contingency: rate of technological change Slow rate of change Mechanistic structure Fast rate of change Organic structure  Rationale for the Growth in International Management Notion of business operating at an international level is self-evidently not a new phenomenon Approximately half of the world’s industrial output now owned by multinational companies (MNCs), entities which represent the quintessence of Globalisation The field of International Management has become substantially more important in every way because: Globalization significantly impacts MNCs through added competition, much based on innovation and knowledge which is all dependent on the quality of the people Globalization requires organizations to constantly adjust, the success of which is all dependent on the people  Rationale for the Growth in International Management Broadly speaking, globalization is about: Movement and Change in a range of domain areas leading to altered: Economic Conditions Social Conditions Enterprise Conditions Workforce Conditions The Pandemic has exacerbated several of these issues, leading to a conversation on: Deglobalization and the prospects for a diminution in the interdependence between states, trade barrier threats and perceived increased global business risk Thank you