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**Lesson 1: Contemporary Concept of Management** **Management Defined:** - The process of human effort and coordinate and combined with other resources to accomplish organizational goals and objectives. - Making the most effective use of available resources - The process of planning, o...

**Lesson 1: Contemporary Concept of Management** **Management Defined:** - The process of human effort and coordinate and combined with other resources to accomplish organizational goals and objectives. - Making the most effective use of available resources - The process of planning, organizing, leading and controlling a business financial, physical, human and information resources in order to achieve its goal. - Establishing an effective environment for people operating in formal organizational groups. - A process imbedded in a system a patterned relationship **Effectiveness- Doing the right thing** **Efficiency- Doing the things right** **Comprehensive Management in Organization** **Planning:** - **Specific** - **Measurable** - **Attainable** - **Realistic** - **Time Bound** **Organizing:** - **Formal Organization** - **Flow** - **Delegation of Authority** - **Allocated of Funds** **Leading:** - **Looking for what type of leadership** **Controlling:** - **Monitoring of Performance** - **Evaluation** - **Key Performance Indicator** **Classical Management Theory** Classical management theory, from the late 19th and early 20th centuries, focuses on increasing productivity and profits by meeting workers\' physical and economic needs. It emphasizes hierarchical structure, labor specialization, and financial incentives. However, it neglects the importance of human relations and job satisfaction. **The Approaches of Classical Management Theory** **[Max Weber],** a German socialist, founded the bureaucratic theory of management, advocating for organizations to resemble the government and legal system. He believed in a legal-rational approach, aiming to hire the best people and organize them logically and sensibly. Weber\'s ideas emphasized the importance of clear rules, job titles, and standardized guidelines in governing the performance of large companies, fostering a more efficient and effective work environment. **[Henri Fayol]** took a mid-level approach and focused on the management of people. - He believed that people needed to be trained in a much more systematic approach, specifically managers. He wrote a book in the 1940s called *General and Industrial Management* that discussed management activities where managers should have competence. **He categorised them in five ways:** **Planning:** Look ahead and chart a course **Organisation:** Select and arrange people **Command:** Oversee, lead, and drive **Coordinate:** Harmonise and facilitate **Control**: Ensure compliance [**Frederick Taylor**,] a micro-focused scientist, aimed to address the issue of self-stylized working patterns, which hindered productivity due to inefficiency. He popularized time and motion studies, which analyzed the time and motions of tasks in organizations. He standardized each task into small steps, resulting in increased speed and efficiency. Taylor\'s approach aimed to improve the efficiency of work processes. **3 MAIN CONCEPT OF CLASSICAL MANAGEMENT THEORY** **Hierarchical structure** The classical model divides workplaces into three distinct layers of management. - The owners, board of directors, and executives - Middle management - Supervisors **Specialization** - The classical management theory involves an assembly line view of the workplace in which large tasks are broken down into smaller ones that are easy to accomplish. - Workers understand their roles and typically specialize in a single area. This helps increase productivity and efficiency while eliminating the need for employees to multi-task. **Incentives** - The classical theory believes that employees are motivated by financial rewards. It proposes that employees will work harder and be more productive if they are awarded incentives based on their work. - Employers who can motivate their employees with incentives may be able to achieve increased production, efficiency and profit. **[Key Aspect of Incentives]** **1. Financial Motivation** **2. Increased Productivity** **3. Efficiency and Profit** **Autocratic Leadership** The autocratic leadership model is the central part of the classical management theory. In an autocratic system, there is no need to consult large groups of people for decisions to be made. A single leader makes a final decision that is communicated downward for all employees to follow. This management style can be beneficial when decisions need to be made quickly by one leader, rather than a group of company officials. **Strengths of Classical Management Theory** - Its functions and operations - The division of labor that can make tasks easier and more efficient to accomplish, which can enhance productivity. - Clear definition of employee roles and tasks with little left to guesswork Flaws of Classical Management Theory When the classical theory is put into action, companies can see their production numbers increase. There are, however, some flaws that make this particular management model less than attractive in workplaces. These pitfalls include: - By attempting to predict and control human behavior, this management theory overlooks the importance of human relations and creativity. - In essence, the classical model views workers almost as machines but fails to take into account what job satisfaction, employee input and morale can bring. - The reliance on prior experience and the ability to apply the classical model almost solely to manufacturing settings is another drawback of this management theory. **BEHAVIORAL APPROACH** This theory ushered in the \"human relations\" view to management approximately during 1930-1950. These theories aim to satisfy social relations and personal fulfilment to motivate employees to seek their best performance. In contrast to classical approach that is task oriented, the behavioral approach is people- oriented (Flores, 2017). Employees are regarded as the most valuable resources of the\ organization and hence, their work satisfaction must be improved. **Mary Farker Follet (1868-1933)** A former social worker Understood power dynamics and stressed the importance of human psychology and human relations rather than a mechanical or scientific approach to work and management-employee interactions. **Genuine power** is not "coercive" (power over) but coactive (power with). True leaders create group power rather than expressing personal power. **Power over v Power with** 1\. Coercive leadership (power over) is a type of power that employs the use of force, threats, and other forms of coercion to stimulate an outcome. 2\. Co active leadership (power with) built on the understanding that organizations are at their best when the full strength of every member is brought forward. **Engaging Your Employees with Mary Farker Follet Advice:** Follett is sometimes credited with coining the term "win-win" The first step forward in achieving that win-win end state is giving your employees room to be heard. Follett was a huge proponent of reciprocal working relationships that's where two-way confidential conversations are essential. **Benefits of Behavioral Management:** It fosters engagement between management and the employees Focuses on both intrinsic and extrinsic motivators Uses job satisfaction as a means to increase productivity in the workplace. Enhanced employee performance Increased productivity Improved employee morale and job satisfaction Reduced turnover rates Better communication and collaboration Effective conflict resolution Optimized leadership development **Geroge Elton Mayo** - An Australian sociologist in 1924 - An industrial research professor\ at Harvard, began a series of\ studies that demonstrated that\ employee motivation is heavily\ influenced by social and\ situational factors. **Elton Mayo** Known as the founder of human relations management (HRM). As a renowned professor, He participated in the Hawthorne Studies, which produced the knowledge used in HRM. **What is Maslow Maslow Heriarchy of Needs?** Maslow\'s hierarchy of needs is a theory of psychology explaining human motivation based on the pursuit of different levels of needs. The theory states that humans are motivated to fulfill their needs in a hierarchical order. This order begins with the most basic needs before moving on to more advanced needs. **5 Stages of Heriarchy of Needs:** 1\. **[Physiological needs-]** are biological requirements for human survival, e.g., air, food, drink, shelter, clothing, warmth, sex, and sleep. 2**[. Safety needs]** -- people want to experience order, predictability, and control in their lives. 3\. **[Love and belongingness needs]** - refers to a human emotional need for interpersonal relationships, affiliating, connectedness, and being part of a group. 4\. **[Esteem needs-]** are the fourth level in Maslow's hierarchy and include self-worth, accomplishment, and respect. 5\. **[Self-actualization needs-]** are the highest level in Maslow's hierarchy, and refer to the realization of a person's potential, self-fulfillment, seeking personal growth, and peak experiences. **Human Being Proposed Two Set of Needs:** 1\. Deficiency needs concern basic survival and include physiological needs (such as the need for food, sex, and sleep) and safety needs (such as the need for security and freedom from danger). Behaviors associated with these needs are seen as 'deficiency' motivated, as they are a means to an end. 2\. Growth needs are more psychological and are associated with realizing an individual's full potential and needing to 'self-actualize'. These needs are achieved more through intellectual and creative behaviors. **Self-Actualization Needs:** Psychologist Abraham Maslow (1943, 1954) stated that human motivation is based on people seeking fulfillment and change through personal growth. The growth of self-actualization (Maslow, 1962) refers to the need for personal growth and discovery that is present throughout a person's life. For Maslow, a person is always "becoming" and never remains static in these terms. In self-actualization, a person comes to find a meaning in life that is important to them. **CONCLUSION:** - The Behavioral Management Theory represents a significant shift from the classical, and task-oriented approaches to a more people-centric perspective in management. - By emphasizing the importance of understanding and addressing employees\' social and psychological needs, this theory recognizes that motivation and productivity are deeply influenced by job satisfaction and interpersonal relationships - The contributions of theorists like Elton Mayo, Chester Barnard, Douglas McGregor, and Abraham Maslow underscore the value of creating a supportive and engaging work environment. - Behavioral Management Theory advocates for a management style that prioritizes the well-being of employees, which can lead to improved performance, enhanced job satisfaction, and a more harmonious and productive workplace **CONTEMPORARY APPROACH** Modern management combines theories and practices to tackle business complexities, focusing on **systems thinking, adaptability, employee motivation, innovation, strategic planning, diversity, technology utilization, and social responsibility.** Contemporary management, a key strategy in today\'s rapidly evolving business world, is crucial in driving modern organizations towards excellence by addressing complex challenges and embracing the digital revolution. **BASIC ASPECT OF CONTEMPORARY APPROACH** **Agility and Adaptability** - Modern management emphasizes agility and adaptability in response to constant change, fostering a culture of innovation and the ability to pivot strategies when necessary. **Embracing Digital Transformation -** Embracing digital tools like data analytics, artificial, intelligence, and automation to improve efficiency and innovation **Collaboration and Empowerment -** Encouraging Teamwork and giving employees more decision-making power to leverage diverse skills and perspectives. **Sustainability and Corporate Social Responsibility (CSR):** focusing on ethical practices and integrating sustainability goals into business strategies **Continuous Learning and Development -** prioritizing ongoing education and skill developmentto stay competitive. **Global Perspective and Cultural Intelligence:** A global perspective and cultural intelligence enable managers to understand and adapt to different cultures and global markets, fostering effective communication, collaboration, and innovation in diverse, international environments. **CHARACTERISTICS OF CONTEMPORARY MANAGEMENT** **Collaboration and Cross-functional Teams:** Modern management encourages collaboration and cross-functional teams, breaking down traditional barriers to foster a culture of diverse perspectives, innovative problem-solving, and improved organizational performance. **Customer-Centric Approach:** Organizations must prioritize customers in a competitive market, adopting a customer-centric approach to understand their needs, preferences, and expectations, thereby fostering personalized experiences and loyalty. **Continuous Learning and Development:** Learning is a lifelong endeavor in contemporary management. Continuous learning is crucial for modern management, fostering a dynamic workforce, staying competitive, adaptable, and embracing new challenges and opportunities. **Data-Driven Decision-Making:** Contemporary management employs data-driven decision-making, leveraging analytics tools to understand market trends, customer behavior, and operational performance, promoting agility, technological integration, collaboration, and ethical practices for long-term success. **TYPES OF CONTEMPORARY MANAGEMENT: EXPLORING MODERN APPROACHES TO ORGANIZATIONAL LEADERSHIP** **Agile Management:** in the contemporary approach focuses on flexibility, customer collaboration, and continuous improvement through step-by-step development and regular feedback. It helps teams quickly adapt to changes and manage complex projects effectively. **Transformational leadership -** in contemporary management involves inspiring and motivating employees to reach their full potential and align with the organization's vision. It emphasizes creating a compelling vision, fostering innovation, and building strong, trust-based relationships within teams. **Servant Leadership:** servant leader in contemporary management prioritizes the needs of employees, focusing on their growth and well-being. This leadership style emphasizes empowering team members, providing support, and removing obstacles to enhance their performance. **Lean Management:** Lean management is a contemporary approach that focuses on eliminating waste and maximizing value in processes. Originating from the manufacturing industry, it emphasizes continuous improvement, reducing non-value-added activities, and optimizing efficiency across various sectors **Design Thinking:** Design thinking is a human-centered approach to innovation that emphasizes understanding users' needs and fostering empathy. It involves a creative, iterative process that encourages collaboration among diverse teams to develop innovative solutions. **CONTEMPORARY APPROACH** **System Theory -- Closed System** **Contingency Approach -- Open System** **THE THEORIES OF CONTEMPORARY APPROACH** 1. **System Theory for Holistic Understanding:** A set of defined interrelated and interdependent parts arranged in a manner that products a unified whole. **TYPES OF SYSTEM THEORY:** - **[Closed System -] systems that are not influenced by and do not interact with their environment.** - **[Open System] - systems that interact with their environment, exchanging information and resources.** 2. **Contingency approach for adaptability *by Fred Fiedler, Paul lawrence, and jay lorsch*** **A management approach which says that organizations are different, face different situations and require different ways of managing.** 3. **Theory x and y by Douglas McGregor** **Theory X assumes that employees are inherently lazy and need strict supervision, while Theory Y posits that employees are self-motivated and thrive on responsibility. These theories highlight different managerial approaches based on assumptions about human behavior.** 4. **Scientific Management Theory by Frederick Taylor** This theory focuses on improving efficiency through scientific analysis of work process. It advocated standardized task and time motion studies to enhance productivity. 5. **Decision Theory by Herbert A. Simon** **This theory focuses on improving efficiency through scientific analysis of work processes. It advocates for standardized tasks and time-and-motion studies to enhance productivity.** 6. **Management science theory by various scholar, including Herbert A. simon and Stafford Beer** **This theory applies mathematical and statistical techniques to solve management problems. It focuses on optimizing resource allocation and improving decision-making processes.**