Contemporary Management

DR. KHOLOUD HOSSAM

INTRODUCTION
 Management is the attainment of organizational
goals in an effective and efficient manner through
planning, organizing, leading, and controlling
organizational resources.
THE PROCESS OF MANAGEMENT
MANAGEMENT FUNCTIONS

All management activities fall within four

fundamental management functions:
 Planning is the management function concerned
with defining goals for future performance and
how to attain them.
 Organizing involves assigning tasks, grouping
tasks into departments, and allocating resources.
MANAGEMENT FUNCTIONS
 Leading means using influence to motivate
employees to achieve the organization’s goals.

 Controlling is concerned with monitoring

employees’ activities, keeping the organization
on track toward meeting its goals and making
corrections as necessary.
EFFICIENCY IN MANAGEMENT
 Efficiency is pertains to the amount of resources
(raw materials, money, and people)used to
produce a desired volume of output.

 Efficiency is “Doing things right”

 Getting the most output for the least inputs
 It is concerned with “Means”
EFFECTIVENESS IN MANAGEMENT
 Effectiveness refers to the degree to which the
organization achieves a stated goal.

 Effectiveness is “Doing the right things”

 Attaining organizational goals
 It is concerned with “Goals”
ORGANIZATIONAL PERFORMANCE
 Organizational Performance is defined as the
organization’s ability to attain its goals by using
resources in an efficient and effective manner.

 Good management is important because

organizations contribute so much to society.
UNIVERSAL NEED OF MANAGEMENT
ORGANIZATION
 Organization defined as a social entity that is
goal-directed and deliberately structured.

 All organizations share common characteristics

 Have a distinct purpose (goal).
 Composed of people.

 Have a deliberate structure.

MANAGEMENT TYPES
 Vertical management
 This type is based on the three levels of managers in
the hierarchy (Top manager, Middle managers and
first –line managers).
 Horizontal management
 Management jobs occurs horizontally across the
organization (Functional managers & General
managers).
VERTICAL MANAGEMENT
VERTICAL MANAGEMENT (CONT.)

 Top manager is one who is at the top of the organizational

hierarchy and is responsible for the entire organization.
They are responsible for setting organizational goals, defining
strategies for achieving them, monitoring and interpreting the
external environment, and making decisions that affect the
entire organization. They look to the long-term future and
concern themselves with general environmental trends and
the organization’s overall success. Also, responsible for
communicating a shared vision for the organization, shaping
corporate culture,
VERTICAL MANAGEMENT (CONT.)

 Middle managers work at the middle level of the

organization and are responsible for major
divisions or departments.
They are responsible for implementing the overall
strategies and policies defined by top managers.
They are generally concerned with the near future,
rather than with long-range planning.
VERTICAL MANAGEMENT (CONT.)

 First-line managers who are at the first or

second level of the hierarchy and are directly
responsible for overseeing groups of production
employees.
They are responsible for teams and non-
management employees. Their primary concern is
the application of rules and procedures to achieve
efficient production, provide technical assistance,
and motivate subordinates.
HORIZONTAL MANAGEMENT
 Functional managers are responsible for
departments that perform a single functional task
and have employees with similar training and
skills.
Functional departments include advertising, sales,
finance, human resources, manufacturing, and
accounting.
HORIZONTAL MANAGEMENT (CONT.)

 General managers are responsible for several

departments that perform different functions. A
general manager is responsible for a self-
contained division.
Project managers also have general management
responsibility because they coordinate people
across several departments to accomplish a specific
project.
MANAGEMENT SKILLS
 A manager’s job requires a range of abilities and
skills:
 Technical skills is the understanding of and proficiency in
the performance of specific tasks. Also, it includes mastery of
the methods, techniques, and equipment involved in specific
functions such as engineering, manufacturing, or finance.
Technical skills are particularly important at lower
organizational levels. However, technical skills become
less important than human and conceptual skills as
managers move up the hierarchy.
MANAGEMENT SKILLS (CONT.)

 Human skills refer to a manager’s ability to

work with and through other people and to work
effectively as part of a group. It Human skills are
demonstrated in the way that a manager relates to
other people, including the ability to motivate,
facilitate, coordinate, lead, communicate, and
resolve conflicts.
MANAGEMENT SKILLS (CONT.)

 Conceptual skills are the cognitive abilities to see the

organization as a whole and the relationship among its
parts.
Conceptual skills involve knowing where one’s team fits
into the total organization and how the organization fits
into the industry, the community, and the broader business
and social environment. It means the ability to think
strategically (long term view) and to identify, evaluate,
and solve complex problems.
SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS
MANAGER ROLES
 A role is defined as a set of expectations for a
manager’s behavior.
 Diverse manager activities can be organized into
ten roles.
These roles are divided into three conceptual
categories: informational (managing by
information), interpersonal(managing through
people), and decisional (managing through action).
INFORMATIONAL ROLES
 Monitor: Seek and receive information; scan
Web, periodicals, reports; maintain personal
contacts.
 Disseminator: Forward information to other
organization members; send memos and reports,
make phone calls.
 Spokesperson: Transmit information to outsiders
through speeches, reports.
INTERPERSONAL ROLES
 Figurehead: Perform ceremonial and symbolic
duties such as greeting visitors, signing legal
documents.
 Leader: Direct and motivate subordinates; train,
counsel, and communicate with subordinates.
 Liaison: Maintain information links inside and
outside the organization; use e-mail, phone,
meetings.
DECISIONAL ROLES
 Entrepreneur: Initiate improvement projects; identify
new ideas, delegate idea responsibility to others.
 Disturbance Handler: Take corrective action during
conflicts or crises; resolve disputes among subordinates.
 Resource Allocator: Decide who gets resources;
schedule, budget, set priorities.
 Negotiator : Represent team or department’s interests;
represent department during negotiation of budgets,
union contracts, purchases.
How
Management start
?!
HISTORICAL BACKGROUND OF MANAGEMENT

 Ancient Management
 Egypt (pyramids) and China (Great Wall)
 Venetians (floating warship assembly lines)
 Adam Smith
 Published “The Wealth of Nations” in 1776
 Advocated the division of labor (job specialization) to increase
the productivity of workers
 Industrial Revolution
 Substituted machine power for human labor
 Created large organizations in need of management
MANAGEMENT THEORIES
 Classical perspective
 Scientific approach
 Bureaucratic approach

 Administrative approach

 Human perspective
 Human relation
 Behavioral science theory
MANAGEMENT THEORIES (CONT.)
 Recent trending theories
 System thinking
 Contingency view

 Contemporary management tools

SCIENTIFIC MANAGEMENT
 Fredrick Winslow Taylor is known as the “father of
scientific management” published principles of scientific
management in (1911).
 Developed standard method for performing each job.
 Selected workers with appropriate abilities for each job.
 Trained workers in standard methods.
 Supported workers by planning their work and eliminating
interruptions.
 Provided wage incentives to workers for increased output.
SCIENTIFIC MANAGEMENT (CONT.)
 Contributions of scientific approach
 Demonstrated the importance of compensation for
performance.
 Initiated the careful study of tasks and jobs.

 Demonstrated the importance of personnel selection

and training.
BUREAUCRATIC APPROACH
 Max Weber (1864–1920)is a German theorist
who introduced most of the concepts on
bureaucratic organizations.
 The ideal bureaucratic organization:
 Division of labor with clear definitions of authority
and responsibility.
 Positions organized in a hierarchy of authority.
BUREAUCRATIC APPROACH (CONT.)
 Managers subject to rules and procedures that will
ensure reliable, predictable behavior.
 Management separate from the ownership of the
organization.
 Administrative acts and decisions recorded in writing.
 Personnel selected and promoted based on technical
qualifications.
ADMINISTRATIVE APPROACH
 Henri Fayol (1841–1925), a French mining
engineer wrote down his concepts on
administration based largely on his own
management experiences.
 He also identified five basic functions or
elements of management: planning, organizing,
commanding, coordinating, and controlling.
These functions underlie much of the general
approach to today’s management theory.
ADMINISTRATIVE APPROACH (CONT.)
 Fayol discussed 14 general principles of
management, several of which are part of
management philosophy today.
For example:
 Unity of command: Each subordinate receives
orders from one—and only one—superior.
 Division of work: Managerial work and technical
work are amenable to specialization to produce more
and better work with the same amount of effort.
ADMINISTRATIVE APPROACH (CONT.)
 Unity of direction: Similar activities in an organization
should be grouped together under one manager.
 Scalar chain: A chain of authority extends from the top to
the bottom of the organization and should include every
employee.
 The overall classical perspective as an approach to
management was very powerful and gave companies
fundamental new skills for establishing high
productivity and effective treatment of employees.
HUMAN PERSPECTIVE
 The humanistic perspective emphasized
understanding human behavior, needs, and
attitudes in the workplace.
 The human resources perspective suggests that
jobs should be designed to meet people’s higher-
level needs by allowing employees to use their
full potential.
HUMAN PERSPECTIVE (CONT.)
 Follett emphasized worker participation and
empowerment, shared goals, and facilitating
rather than controlling employees.

 The human relations movement stresses the

satisfaction of employees’ basic needs as the key
to increased productivity.
BEHAVIORAL SCIENCE APPROACH
 The behavioral sciences approach uses scientific
methods and draws from sociology, psychology,
anthropology, economics, and other disciplines to
develop theories about human behavior and
interaction in an organizational setting.
 Many current management ideas and practices
can be traced to the behavioral sciences approach.
BEHAVIORAL SCIENCE APPROACH (CONT.)

 For example:
 Zappos.com conducts research to determine the best
set of tests, interviews, and employee profiles to use
when selecting new employees.
 Best Buy electronics stores train new managers in the
techniques of employee motivation, most of the
theories and findings are rooted in behavioral science
research.
RECENT HISTORICAL TRENDS
 System Thinking is the ability to see both the
distinct elements of a system or situation and the
complex and changing interaction among those
elements.
 System is a set of interrelated parts that function as a
whole to achieve a common purpose.
 Synergy means that the whole is greater than the sum
of its parts.
SYSTEM THINKING APPROACH
 When managers think systemically and understand
subsystem interdependence and synergy, they can
get a better handle on managing in a complex
environment.
 All organization are involved in an open system
therefore, it must adapt to changes in their external
environment.
 Coordination of the organization’s parts is essential
for proper functioning of the entire organization.
CONTINGENCY VIEW
 The contingency view tells managers that what
works in one organizational situation might not work
in others. Sometimes it called situational approach.
 There is no one universally applicable set of
management principles (rules) by which to manage
organizations, each situation is unique and mangers
learn about management by experiencing a large
number of case problem situations.
CONTINGENCY VIEW (CONT.)
 Managers face the task of determining what
methods will work in every new situation.
 A manager’s response to a situation depends on
identifying key contingencies (MBO,
organization structure,….etc.) in an
organizational situation.
 Managers learn to identify important patterns and
characteristics of their organizations, they can fit
solutions to those characteristics.
CONTEMPORARY MANAGEMENT TOOLS
 Modern management is a lively mix of ideas and
techniques from varied historical perspectives,
but new concepts continue to emerge.
 Supply chain management refers to managing the
sequence of suppliers and purchasers, covering all
stages of processing from obtaining raw materials to
distributing finished goods to consumers.
CONTEMPORARY MANAGEMENT TOOLS (CONT.)

 Engagement means that people are involved in their

jobs and are satisfied with their work conditions,
contribute enthusiastically to meeting team and
organizational goals, and feel a sense of belonging
and commitment to the organization and its mission.