Introduction to Management

Management :

Coordinating work activities

Operations Management :

management of the process that converts

resources into goods/services

Value Chain Management:

management of the process in which

value is added, from receipt of raw
materials to final product delivery

Levels
First-line (supervisors, etc.)
Middle (highest stress)
Top

Goals

Efficiency: Efforts produce the most with

the least labor, money, equipment

Productivity: outputs inputs

Effectiveness: Efforts produce

organizations

Functions
Planning: Goals, pathways (strategies)
Organizing: What?, who?, how?
Leading: Hiring, training, motivating
Controlling: Measuring, comparing to
standard, correcting

Roles (Henry Mintzberg, 1973)

Interpersonal

Informational

Figurehead
Leader
Liaison (with outsiders)
Monitor
Disseminator
Spokesperson

Decisional

Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator

Skills

Ray Katz, Essential 3 (weight parallel with

manager level)

1. Technical
2. Human (E.I.Q.)
3. Conceptual

American Management Association

Conceptual
Communication
Effectiveness
Interpersonal

Drivers of Change in Management

Technology
Competition/Globalization
Ethics
Politics (taxation, regulation, stability,
security)

Changes in Organizations
Static Dynamic/Learning
Inflexible Flexible
Fixed Mobile, 24/7

Historical Perspective

Pyramids, Great Wall (photos)

Adam Smith, economist, Wealth of Nations, 1776

Division of Labor
Increase productivity by:

Increasing individual skill

Saving time changing tasks
Promoting innovation

Industrial Revolution, 1700s, Europe

Human labor Machine labor Factory Mgmt.

Management Theory/Science, early 1900s present

Organizational Behavior

Behavior of people at work

Human resource management

Leadership
Motivation
Group dynamics
Conflict resolution

Robert Owen, late 1700s

Improved working conditions productivity

Organizational Behavior

Hugo Munsterberg, early 1900s

Father of Industrial Psychology: scientific study of

people at work
Psychological tests for selection
Learning theory applied to training
Behaviorism applied to motivation

Mary Parker Follett, early 1900s

Group behavior (vs. individual) on organizations

Hawthorne Studies

1920s 1930s, Western Electric Co.

Light level = prod. no unless moonlight
observation

Scientific Management
(Find the one best way)

Benchmarking: Benchmark = industry standard of

excellence

ISO 9000, International Organization for Standardization

Six Sigma, Motorola, < 3.4 defects per million units

Frederick Taylor, engineer, Principles of Scientific

Management, 1911

Four Principles of Management

1.
2.
3.
4.

Develop a science for each element of the job

Select, train, develop workers to do 1
Cooperatively ensure that workers do 1
Managers do work not best suited to workers

Raised productivity 200% at Pennsylvania steel companies

Scientific Management
(Find the one best way)

Frank (builder) & Lillian Gilbreth (psychologist),

12 kids

Inspired by Taylor to eliminate wasteful movements

Economizing steps
Therbligs: 17 hand movements
Michronometer: recorded motions and time for
each
Bricklaying step reductions
Exterior, 18 to 5
Interior, 18 to 2

Administrative Theory

Henri Fayol, head of French coal company, contemporary of Taylor

Management as distinct activity

14 Principles

1. Division of Work
2. Authority
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interests to the General Interest
7. Remuneration
8. Centralization
9. Scalar Chain (of authority, top-down)
10.Order
11.Equity
12.Stability of Tenure of Personnel
13.Initiative
14.Esprit de Corps

Administrative Theory

Max Weber, German sociologist, another

contemporary of Taylor

Bureaucracy = ideal organization

Division of labor
Clearly-defined hierarchy
Rules & regulations
Impersonal relationships

Quantitative Approach

Mathematics, statistics
Optimization models
Information models
Computer simulations

World War II
Total Quality Mgmt. (TQM)

Systems Approach
Closed (no interaction with outside
environment) v. open
Chester Barnard, 1930s

Organizations as open social systems

Managers job to facilitate communication
/cooperation