MG4031 Week 02 Lecture 01 PDF

MG4031 Wk.02 Lec.01 Henry Mintzberg’s 10 common managerial roles: Interpersonal: Figurehead: Represent the organisation externally Leader: Direct and co-ordinate employees Liaison: Deal with people outside the organisation Informational: Monitor: See, receive and scr...

MG4031 Wk.02 Lec.01 Henry Mintzberg’s 10 common managerial roles: Interpersonal: Figurehead: Represent the organisation externally Leader: Direct and co-ordinate employees Liaison: Deal with people outside the organisation Informational: Monitor: See, receive and screen info Disseminator: Share knowledge/data Spokesperson: Share the organisation's official position and information Decisional: Entrepreneur: Designing and implementing new projects or changes Disturbance Handler: Deals with problems beyond immediate control Resource Allocator: Choosing between competing demands Negotiator: Discussion and reaching agreements Management Myths (Mintzberg): 1. The manager is a reflective, systematic planner: They are action oriented and work at an unrelenting pace. Their plans are often flexible and daily. 2. The effective manager has no regular duties to perform: They do, meetings, securing and disseminating information, etc. 3. Senior managers need aggregated information and data, which is best generated by a formal management information system: In reality, they often prefer informal, verbal information and communication. Hence why some are unwilling to delegate, it is not as simple as handing over a file. 4. Management is a science and a profession: In fact, it is largely based on judgement and intuition. Management Functions: Planning and Decision Making: Planning is the process of establishing goals and objectives and selecting a future course of action to achieve them. Planning is the process of establishing goals and objectives and selecting a future course of action to achieve them. Organising: Dividing tasks into sub-tasks, allocating resources to achieve the tasks and, finally, co-ordinating employees. In addition, organising involves establishing managerial authority.  Leading: involves inducing individuals or groups to assist willingly and harmoniously in the attainment of organisational goals by directing, motivating and communicating with employees. Also, ensuring that employees are selected, trained, developed and rewarded for the accomplishment of organisational goals. Controlling: Monitoring progress made by the organisation, business unit or individual and, where necessary, taking action to ensure that goals match targets. Ensures success. Planning establishes the direction of the organisation. Organising divides organisational activities among work groups, and co-ordinates results. Leading motivates employees to achieve organisational goals. Finally, control measures and evaluates organisational performance. Historical management can be seen in the Egyptians (pyramids), Greeks, Romans (control of empire) and the Catholic church (hierarchy and control). The Industrial Revolution saw the movement from skilled craftsmen to factory workers. Productivity increased and economies of scale began to be seen. Costs fell and consumption rose. Transportation and communications developments opened up new markets. The increasing size and complexity of organisations resulted in an upsurge of systematic thought on the key managerial problems presented by industrialisation, namely production, efficiency and cost savings. Management emerged as a distinct formal discipline separate from others. Classical Management Approaches: Scientific management (Frederick Taylor - 1911): the development of one best way of performing a task through the application of scientific methods. The principal objective of management should be to secure them maximum prosperity for the employer coupled with the maximum prosperity of each employee. This meant not only monetary profit, but also the development of each employee to perform to the highest level possible. To do this, Taylor advocated that scientific method should be used to analyse the one best way to do tasks. He introduced piece rate to motivate. Used in the Model T Ford factory. 1. The development of a true science of work: Taylor argued that rules of thumb should be replaced by a scientific approach to work, whereby each task could be broken down into basic movements that could be timed to determine one best way of doing the task. In this way a worker would know what constituted a fair day’s work, for which he would receive a fair day’s pay. The level of pay would be higher than the average worker would get in unscientific factories, but if workers failed to perform, they would lose income. 2. The scientific selection and development of workers: Taylor was aware of the importance of hiring and training the appropriate worker for the job with regard to  physical and mental aptitudes. Once properly matched to the job, the worker could be developed to the highest capacity by a piece-rate system of pay. 3. The co-operation of workers and management in studying the science of work: Taylor believed that management and workers should co-operate to ensure that the job, plans and principles all matched. To achieve this he advocated standardised tools, instruction cards to assist workers and breaks to reduce tiredness. 4. The division of work between management and the workforce: Direction and allocation of work to be done by managers vs completion of work by employees. Critics argued that Taylor saw that employees were only motivated by money and that piece rate pay was exploiting employees and led to layoffs. It also ignored the role of senior management. Bureaucracy (Max Weber – 1921/22): Division of labour: Tasks were divided and delegated to specialists so that responsibility and authority were clearly defined. Efficiency and expertise. Hierarchy: Positions were organised in a hierarchy of authority from the top to the bottom, with authority centralised at the top. Chain of command. Selection: Employees were recruited on the basis of technical qualifications rather than favouritism. Merit and expertise were the only factors Career orientation: Managers were viewed as professionals pursuing careers rather than having ownership. Gave the organisation a degree of continuity. Formalisation: The organisation was subject to formal rules and procedures in relation to performance. Controlled employee performance. Impersonality: Rules and procedures were applied uniformly to all employees. Used by Aer Lingus and Iarnród Éireann. Disadvantages: Obeying rules at all costs becomes important irrespective of whether such action helps to achieve organisational goals. Bureaucracy promotes stability, but overtime things can become rigid. Rules and procedures are blindly applied to all situations even though they may not be the most appropriate. The organisation comes to believe that what has worked well in the past will continue to do so in the future, despite changed conditions. Delegation of authority in the bureaucratic organisation can lead to the goals of the work groups becoming more important than organisational goals, adversely affecting the organisation in the long run. The strict division of labour can lead to routine and boring jobs where workers feel apathetic and demotivated.  The extensive rules can lead to the establishment of a minimum acceptable standard above which workers will not go. So, instead of acting as a controlling device, the rules reduce performance. Administrative Management (Henry Fayol - 1916): It focused on senior managers and the policy issues they faced. Recognised management as a profession in which you could be trained and developed. All business activities could be divided into 6 interdependent essential areas. 1. Technical 2. Commercial 3. Financial 4. Security 5. Accounting 6. Managerial Fayol’s Principles of Management: 1. Division of labour: Divide work into specialised tasks and assign responsibility to individuals. 2. Authority: Equal delegation of responsibility and authority. 3. Discipline: Establish clear expectations and penalties. 4. Unity of command: Each employee should report to one supervisor. 5. Unity of direction: Employee efforts should be guided to achieve organisational goals. 6. Subordination of individual interest to general: Individual interests should not precede the general interests of the group. 7. Remuneration: Equitable rewards for work. 8. Scalar chain: Lines of authority and communications from the highest to the lowest level. 9. Order: Order tasks and materials to support organisational direction. 10. Equity: Treat employees fairly. 11. Stability of tenure: Minimise turnover to ensure loyalty of personnel. 12. Initiative: Employees should have freedom and discretion. 13. Esprit de corps: Unity of interest between management and workers. 14. Centralisation: Decide the importance of superior and subordinate roles. The main criticism of the approach is that universal principles do not take account of variations in the environment, technology or personnel, which may require alternative management action. References: Notes based on MG4031 Lecture Slides and Modern Management: Theory and Practice for Students in Ireland (5th Ed.) - Tiernan S. and Morley, M.J. Chapter 1.