Managing People and Organization Managing People and Organization

A good manager is he/she who can organize • Robert Katz (1974) identified three basic and also
essential skill for a good manager. These are:
all the members under him/her to meet
organizational goal, and members are
• Technical skill: ability to apply expertise and
satisfied, loyal, and committed specialized knowledge

So, two things to notice • Human skill: ability to work with, understand, and
motivate other people, both individually and in
Performance as an individual and as groups.
a group
• Conceptual skill: The mental ability to analyze and
diagnose complex situations and decision making
Job satisfaction
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Managerial Functions Managing People and Organization

• Skill Type Needed by In the early part of 20th century, a French
Manager Level industrialist, Henri Fayol observed 5 important
Top
functions of a manager. These are:
Managers
• Plan
•
Middle
Managers Organize
• Command
Line • Coordinate
Managers
• Control
Conceptual Human Technical
3 4
 Managing People and Organization Managing People and Organization
Now, present organizational manager
condensed these into four categories. Planning
• A process that
includes defining
goals, establishing
Resources Management Functions
Human Goal strategy, and
Financial Planning Organizing Directing Controlling
Physical
Achievements
developing plans to
Informational
coordinate activities.

5 6

Managing People and Organization Managing People and Organization

Organizing Directing
• Determining what tasks • A function that includes
are to be done, who is to motivating employees,
do them, how the tasks directing others,
are to be grouped, who selecting the most
reports to whom, and effective communication
where decisions are to be channels, and resolving
made. conflicts.

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 Managing People and Organization Managing People and Organization
For managing people, process, and organization, a
manager should consider
Controlling
• Monitoring activities • Individual behavior in organizations, including
diversity and demographic characteristics, decision
to ensure they are making and the effects of personal networks.
being accomplished
as planned and • Organizational process, interpersonal behavior,
correcting any including teamwork, norms, and managing through
significant deviations. others.

• Organizational factors that affect behavior, such as

reward systems, culture, and organizational design.
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Managing People and Organization Managing People and Organization

• There is no unique way or best way to manage. Challenges of Managers
• Increasing number of global organizations.
• A manager has to take into account the
environmental conditions that apply to a specific
situation or a specific time when formulating • Building competitive advantage through superior
efficiency, quality, innovation, and responsiveness.
strategy.
• The contingency approach to management
• Increasing performance while remaining ethical
expects that a manager must consider each managers.
facet of environment and the interrelationships
between these facets while decision making,
• Managing an increasingly diverse work force.
problem solving, job designing.
• Using new technologies.
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 Managing People and Organization Managing People and Organization
Managerial Activities • Allocation of Activities
by Time
• Traditional management
– Decision making, planning, and controlling
• Communication
– Exchanging routine information and processing
paperwork
• Human resource management
– Motivating, disciplining, managing conflict, staffing,
and training
• Networking
– Socializing, politicking, and interacting with others
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Background of Organizational Theory Background of Organizational Theory

Taylor’s Principles: Scientific Management
• Henri Fayol, developed a set of 14 principles:
1. Study the way workers perform tasks and 1. Division of Labor: allows for job specialization.
experiment with ways of improving them  This is the specialization that economists consider necessary for
efficiency in the use of labor.
• Gather detailed, time and motion information.
 Fayol applies the principle to all kinds of work, managerial as well as
• Try different methods to see which is best. technical.
2. Determine rules that govern task performance  Fayol noted firms can have too much specialization leading to poor
quality and worker involvement.
• Teach to all workers.
3. Select (according to the rules) the worker for the 2. Authority and Responsibility: Fayol included both formal and
informal authority resulting from special expertise.
task according to the rules set in Step 2.  Here Fayol finds authority and responsibility to be related, with the
latter arising from the former. He sees authority as a combination of
official factors, deriving from the manager’ position and personal
factors.
4. Establish a performance standard, and develop a
pay system that rewards above-standard 3. Unity of Command: Employees should have only one boss.
performance  This means that employees should receive orders from one superior
only.
• Workers should benefit from higher output. 15 16
 Background of Organizational Theory Background of Organizational Theory

Henri Fayol, developed a set of 14 principles: Henri Fayol, developed a set of 14 principles:
4. Line of Authority: a clear chain from top to bottom of the firm. 7. Equity: Treat all employees fairly in justice and
• Fayol thinks of this as a chain of superiors from the highest to the respect.
lowest ranks, which, while not to be departed from needlessly, should
be short circuited when to follow it scrupulously would be detrimental. • Loyalty and devotion should be elicited from personnel by a
combination of kindliness and justice on the part of
5. Centralization: the degree to which authority rests at the very top. managers when dealing with subordinators.
• Without using the term “Centralization of authority.” Fayol refers to the 8. Order: Each employee is put where they have the
extent to which authority is concentrated or dispersed. Individual most value.
circumstances will determine the degree that will give the best overall
yield. • Breaking this into material and social order, Fayol follows
the simple adage of a place for everything and everything
6. Unity of Direction: One plan of action to guide the organization. in its place.
• According to this principle, each group of actives with the same 9. Initiative: Encourage innovation.
objective must have one head and one plan.
 Initiative is conceived of as the thinking out and execution of a plan.
Since it is one of the keenest satisfactions for an intelligent man to
experience.
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Background of Organizational Theory Background of Organizational Theory

Henri Fayol, developed a set of 14 principles: Henri Fayol, developed a set of 14 principles:
10. Discipline: obedient, applied, respectful employees needed.
• Seeing discipline as “respect for agreements which are directed at 13. General interest over individual interest: The
achieving obedience, application, energy, and the outward marks of organization takes precedence over the individual.
respect. Fayol declares that discipline requires good superiors at all
levels. • This is self explanatory when the two are found to differ,
management must reconcile them.
11. Remuneration of Personnel: The payment system contributes to
success.
 Methods of payment should be fair and afford the maximum possible 14. Team Spirit (Esprit de corps): Share enthusiasm or
satisfaction to employees and employer. devotion to the organization.
• This is principle that “in union there is strength” as well as
12. Stability of Tenure: Long-term employment is important. an extension of the principle of unity of command,
• Finding unnecessary turnover to be both the cause and the effect of emphasizing the need for teamwork and the importance of
bad management, Fayol points out its dangers and costs.
communication in obtaining it.

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 Attitudes and Behavior Attitudes and Behavior
Cognitive Dissonance Theory Cognitive Dissonance Theory … continued
• In the late 1950s, Leon Festinger proposed the theory • You know attending in the class is important for your
of Cognitive Dissonance learning. This is your attitude. So you should present,
but you do not do that. This is your behavior
• The theory sought to explain the linkage between (incompatibility between attitude and behavior)
attitudes and behavior
• You would like to take bribes. This is your one
• Dissonance means an inconsistency attitude. On the other hand you do not like to take
bribes because you are afraid of legal problems and
social dishonor. This is your another attitude. There
• Cognitive dissonance refers to any incompatibility
is an incompatibility between two attitudes.
or conflict that an individual might perceive
between two or more of his/her attitudes, or between
his/her behavior and attitudes 21 22

Attitudes and Behavior Attitudes and Behavior

Cognitive Dissonance Theory … continued Cognitive Dissonance Theory … continued
• Festinger argued that any form of inconsistency is uncomfortable • Festinger proposed that the desire to reduce
dissonance would be determined by the importance
• Individuals will attempt to reduce the dissonance and, hence, the of the elements creating the dissonance
discomfort

• and the degree of influence the individual believes

• Therefore, individuals will seek a stable state, in which there is a
minimum of dissonance he/she has over the elements

• No individuals, of course, can completely avoid dissonance • and the rewards that may be involved in dissonance

• You know attending in the class is important for your learning. So

• If the elements creating the dissonance are relatively
you should present, but you do not do that.
unimportant, the pressure to correct this imbalance
23 24
will be low.
 Attitudes and Behavior Attitudes and Behavior
Cognitive Dissonance Theory … continued Cognitive Dissonance Theory … continued
• Suppose, you are working as a junior executive in a company. • There may be couple of alternatives.
You always dislike and are strongly against to work after regular • You can maintain your principle and let the employees to go
office hour. home after regular office hour.
• But your manager always ask all of you to work up to 8:00 PM to • You can ask the employees to work during interval time to finish
finish pending works. the works
• This is very important for the company’s export shipment. • You can now suggest your employees that working longer time is
• Now after couple of years, you are the Manager. What will you good for their knowledge and skill
do? • You can simply decide that since you are now the Manager, you
• In principle you are against this. At the same time to meet have to perform your duty. To perform own duty is a more
company’s goal (which is your responsibility as a Manager and important principle that retaining own perceived principle.
also you are bound to do that to retain your job), you have to do • Or, you can simply ignore your principle by confirming that you
that. used to believe on that principle in the past, not now. This is a
• The elements involved are very important, so difficult25 to competitive era. We have to work longer time since we are
26
getting good salary.
reduce dissonance.
Attitudes and Behavior
Cognitive Dissonance Theory

Cognitive dissonance theory suggests that we have an

Intrinsic motivation or desire to keep our attitudes and
beliefs in harmony (in the same line)
Implications for Organizational life:

 Change inconsistency between attitude and behavior

 Change one or more of the attitudes
 Provide new information for cultural change to be
compatible with organizational norms
 Reduce importance of inconsistent beliefs
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