SENIOR
OUTCOMES SEMINAR
(BU385)
Management
What is Management?
A set of activities
planning and decision making, organizing,
leading, and controlling
Directed at an organizations resources
human, financial, physical, and information
With the aim of achieving organizational
goals in an efficient and effective
manner.
Basic Purpose of
Management
EFFICIENTLY
Using resources wisely and
in a cost-effective way
EFFECTIVELY
Making the right decisions and
successfully implementing them
What is a Manager?
Someone whose primary
responsibility is to carry out the
management process.
Someone who plans and makes
decisions, organizes, leads, and
controls:
human, financial, physical,
and information resources.
The Management Process
Planning and Decision Making
Organizing
Determining how activities and resources are grouped.
Leading
Setting an organizations goals and selecting a course of
action from a set of alternatives to achieve them.
The set of processes used to get organizational
members to work together to advance the interests of
the organization.
Controlling
Monitoring organizational progress towards goals.
Fundamental Management Skills
Management Skill Mixes at Different
Organizational Levels
An Integrative Framework
of Management Perspectives
Systems Approach
Recognition of internal
interdependencies
Recognition of
environmental influences
Classical
Management
Perspectives
Methods for
enhancing
efficiency and
facilitating planning,
organizing, and
controlling
Contingency Perspective
Recognition of the situational
nature of management
Response to particular
characteristics of situation
Behavioral
Management
Perspectives
Insights for motivating performance
and understanding
individual behavior,
groups and teams,
and leadership
Effective and efficient management
Quantitative
Management
Perspectives
Techniques for
improving decision
making, resource
allocation, and
operations
Classical Management Perspective
Scientific Management
Concerned with improving the performance
of individual workers (i.e., efficiency).
Grew out of the industrial revolutions labor
shortage at the beginning of the twentieth
century.
Administrative Management
A theory that focuses on
managing the total organization.
Scientific Management
Frederick Taylor (18561915)
Replaced old methods of how to do work with
scientifically-based work methods to eliminate
soldiering, where employees deliberately worked
at a pace slower than their capabilities.
Believed in selecting, training, teaching, and
developing workers.
Used time studies of jobs, standards planning,
exception rule of management, slide-rules,
instruction cards, and piece-work pay systems to
control and motivate employees.
Classical Management Perspective
Administrative Management Theory
Henri Fayol (18451925)
Focuses on managing the whole organization rather
than individuals.
Was first to identify the specific management
functions of planning, organizing, leading, and
controlling.
Max Weber (18641920)
His theory of bureaucracy is based on a rational set of
guidelines for structuring organizations.
Behavioral Management Perspective
Behavioral Management
Emphasized individual attitudes and
behaviors, and group processes, and
recognized the importance of
behavioral processes in the workplace.
Hawthorne Studies (19271932)
Mayo: founder of human relations
The Hawthorne Studies
(19271932)
Conducted by Elton Mayo and associates at
Western Electric
Illumination study workplace lighting adjustments
affected both the control and the experimental groups
of production employees.
Group studyimplementation of piecework incentive
plan caused production workers to establish informal
levels of acceptable individual output.
Over-producing workers were labeled rate busters
and under-producing workers were considered
chiselers.
Behavioral Management Perspective
Human Relations Movement
Grew out of the Hawthorne studies.
Proposed that workers respond primarily
to the social context of work, including
social conditioning, group norms,
and interpersonal dynamics.
Assumed that the managers
concern for workers would lead to
increased worker satisfaction and
improved worker performance.
Behavioral Management Perspective
Abraham Maslow
Advanced a theory that employees are
motivated by a hierarchy of needs that
they seek to satisfy.
Douglas McGregor
Proposed Theory X and Theory Y
concepts
of managerial beliefs about people
and work.
Organizational Behavior
A contemporary field focusing on behavioral
perspectives on management.
Draws on psychology, sociology, anthropology, economics,
and medicine.
Important topics in organizational behavior research:
Job satisfaction and job stress
Motivation and leadership
Group dynamics and organizational politics
Interpersonal conflict
The structure and design of organizations
Quantitative Management Perspective
Quantitative Management
Emerged during World War II to help
the Allied forces manage logistical
problems.
Focuses on decision making, economic
effectiveness, mathematical models,
and the use of computers to solve
quantitative problems.
Quantitative Management Perspective
Management Science
Focuses on the development of
representative mathematical models to
assist with decisions.
Operations Management
Practical application of management
science to efficiently manage the
production and distribution
of products and services.
The Systems Perspective of
Organizations
Inputs from the
environment:
material inputs,
human inputs,
financial inputs, and
information inputs
Transformation
process: technology,
operating systems,
administrative
systems, and
control systems
Feedback
Outputs into
the environment:
products/services,
profits/losses,
employee behaviors,
and information
outputs
The Contingency Perspective
Universal Perspectives
Include the classical, behavioral, and quantitative
approaches.
An attempt to identify the one best way to manage
organizations.
The Contingency Perspective
Suggests that each organization is unique.
The appropriate managerial behavior for
managing an organization depends
(is contingent) on the current
situation in the organization.
Decision Making and the
Planning Process
The Planning Process
The Environmental Context
The organizations mission
Purpose Premises Values Directions
Strategic goals
Strategic plans
Tactical goals
Tactical plans
Operational goals
Operational plans
Kinds of Goals
By Level
Mission statement is a statement of an organizations
fundamental purpose.
Strategic goals are goals set by and for top
management of the organization that address broad,
general issues.
Tactical goals are set by and for middle managers;
their focus is on how to operationalize actions to
strategic goals.
Operational goals are set by and for lower-level
managers to address issues associated with tactical
goals.
SWOT
Analysis
Mission
An organizations fundamental purpose
SWOT Analysis
To formulate strategies that support the mission
Strengths
Weaknesses
Opportunities
Internal Analysis
Strengths
(distinctive
competencies)
External Analysis
Opportunities
Threats
Weaknesses
Threats
Best Strategies
Those that support the mission and
exploit opportunities and strengths
neutralize threats
avoid (or correct) weaknesses
Managing Diversification
BCG Matrix
A method of evaluating businesses relative to the
growth rate of their market and the organizations
share of the market.
The matrix classifies the types of businesses that a
diversified organization can engage as:
Dogs have small market shares and no growth
prospects.
Cash cows have large shares of mature markets.
Question marks have small market shares in
quickly growing markets.
Stars have large shares of rapidly growing
markets.
Organizational Structure
The Nature of Organizing
Job Specialization
Grouping Jobs: Departmentalization
The Bureaucratic Model of Organization
Design
Situational Influences on Organization
Core Technology
Environment
Organization Size and Life Cycle
Alternatives to Specialization
Job Rotation
Job Enlargement
Systematically moving employees from one job to
another. Most frequent use today is as a training
device for skills and flexibility.
An increase in the total number of tasks workers
perform.
Job Enrichment
Increasing both the number of tasks the worker does
and the control the worker has over the job.
Establishing Reporting Relationships
Chain of Command
A clear and distinct line of authority among the positions in
an organization.
Unity of Command
Each person within an organization must have
a clear reporting relationship to one and
only one boss.
Scalar Principle
A clear and unbroken line of authority
must extend from the bottom to the
top of the organization.
Work-Related Attitudes
Job Satisfaction or Dissatisfaction
An attitude that reflects the extent to which an
individual is gratified or fulfilled by his or her work.
Job Satisfaction and Work Behaviors
Job satisfaction is influenced by personal, group, and
organizational factors.
Satisfied employees are absent from work less often,
make positive contributions, and stay with the
organization.
Dissatisfied may experience stress which disrupts
coworkers.
Work-Related Attitudes
Job Satisfaction and Work Behaviors
High levels of job satisfaction do not
necessarily lead to high job
performance.
Work-Related Attitudes
Organizational Commitment
An attitude that reflects an individuals identification
with and attachment to an organization.
Organizational Commitment and Work Behaviors
Employee commitment strengthens with an individuals
age, years with the organization, sense of job security,
and participation in decision making.
Committed employees have highly reliable habits, plan
a longer tenure with the organization.
Motivation
The Nature of Motivation
Content Perspectives on Motivation
The Need Hierarchy Approach
The Two-Factor Theory
Individual Human Needs (nAch, nAff)
Process Perspectives on Motivation
Expectancy Theory
Equity Theory
Goal-Setting Theory
Process Perspectives on Motivation
Porter-Lawler Extension of
Expectancy Theory
Intrinsic
rewards
(outcomes)
Perceived
equity
Performance
Satisfaction
Extrinsic
rewards
(outcomes)
Source: Edward E. Lawler III and Lyman W. Porter, The Effect of Performance on Job Satisfaction,
Industrial Relations, October 1967, p. 23. Used with permission of the University of California.
Figure 10.5
Popular Motivational Strategies
Empowerment and Participation
Empowerment
The process of enabling workers to set their own work goals, make
decisions, and solve problems within their sphere of influence.
Participation
The process of giving employees a voice in making decisions about
their work.
Areas of Participation for Employees
Making decisions about their jobs.
Participating in decision making about broader issues of product
quality.
Using Reward Systems to
Motivate Performance
Designing Effective Reward Systems
Reward system must meet an individuals
needs.
Rewards should compare favorably with other
organizations.
Distribution of rewards must be perceived to
be equitable.
Reward system must recognize different
needs.
Using Reward Systems to
Motivate Performance
Popular Approaches to Rewarding Employees
Traditional systems
Fixed hourly or monthly rate.
Merit systems
Employees get different pay raises at the end of the year
based on overall job performance.
Incentive systems
Employees get different pay amounts at each pay period
in proportion to what they do (e.g., piece-rate pay plans).
Using Reward Systems to
Motivate Performance
Popular Approaches (contd)
Profit sharing plans
Provides bonus based to corporate profits.
Gainsharing
All group members get bonuses when performance targets
are exceeded.
Lump sum bonuses
One-time reward, not an increase in base.
Pay-for-knowledge
Pay the individual rather than the job.
Leadership
The Nature of Leadership
The Meaning of Leadership
Leadership Versus Management
Power and Leadership
The Search for Leadership Traits
Leadership Behaviors
Michigan Studies
Ohio State Studies
Leadership Grid
Situational Approaches to Leadership
LPC Theory
Leadership
Situational Approaches to Leadership
(contd)
Path-Goal Theory
The Leader-Member Exchange Approach
Related Perspectives on Leadership
Substitutes for Leadership
Charismatic Leadership
Transformational Leadership
Types of Power in
Organizations
Source: Van Fleet, David D., and Tim Peterson, Contemporary Management, Third Edition. Copyright 1994 by Houghton Mifflin Company. Used with permission.
The Nature of Leadership
Power
and Leadership
Power:
ability to affect the behavior of others.
Legitimate power is granted through the organizational
hierarchy.
Reward power is the power to give or withhold rewards.
Coercive power is the capability to force compliance by
means of psychological, emotional, or physical threat.
Referent power is the personal power that accrues to
someone based on identification, imitation, loyalty, or
charisma.
Expert power is derived from the possession of
information or expertise.
Groups
Groups and Teams in Organizations
Types of Groups and Teams
Why People Join Groups and Teams
Stages of Group and Team Development
Characteristics of Groups and Teams
Role Structures
Behavioral Norms
Cohesiveness
Formal and informal Leadership
Groups and Teams in Organizations
Functional Group
Informal or Interest Group
A permanent group created to accomplish a number of
organizational purposes within an indefinite time
horizon.
A group created by its own members for purposes that
may or may not be relevant to organizational goals.
Task Group
A group created by the organization to accomplish a
relatively narrow range of purposes within a stated
time horizon.
Groups and Teams in Organizations
Team
A group of workers who function as a
unit, often with little or no supervision,
to carry out work-related tasks,
functions, and activities.
Sometimes are called self-managed
teams, cross-functional teams, or high
performance teams.
Stages of
Group
Development
(Tuchman)
Source: Van Fleet, David D., and Tim
Peterson, Contemporary Management,
Third Edition. Copyright 1994 by
Houghton Mifflin Company. Used with
permission.
Characteristics of Teams
Role
The part an individual plays in helping
the group reach its goals.
Task-specialistrole concentrating on
getting the groups tasks accomplished.
Socioemotional roleproviding social
and emotional support to others on
the team.
Characteristics of Teams
Cohesiveness
The extent to which members are loyal and
committed to the group; the degree of mutual
attractiveness within the group.
Factors That Influence Group Cohesiveness
Factors That Increase
Cohesiveness
Factors That Reduce
Cohesiveness
Intergroup competition
Group size
Personal attraction
Disagreement on goals
Favorable evaluation
Intragroup competition
Agreement on goals
Domination
Interaction
Unpleasant experiences
Interpersonal and Intergroup Conflict
The Nature of Organizational Conflict
High
Performance
Low
Low
Optimal level of conflict
Conflict
High
