Intro to Management Past & Present and The POLC Model Prof Karen Hanen Mgt 360 Working Today What are some of the forces impacting today’s working environment that didn’t exist at the same level 15-20 years ago? Technology- Tech IQ is a person’s ability to use technology to stay informed Globalization - The worldwide interdependence of resource flows, product markets, and business competition that characterize our economy Scrutiny on Ethics- Code of moral principles that set standards of conduct of what is “good” and “right” Working Today – What’s Different (Continued) Diversity – Today’s workforce reflects differences with respect to gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness Working Virtually Domestically and Internationally – where you work, when you work and whom you work with you could be distributed 24/7 and anywhere in the world Free-agent economy - People change jobs more often, and many work on flexible contracts Self-management - Ability to understands oneself, exercise initiative, accept responsibility, and learn from experience Working Today Careers and Connections Organizations consist of three types of workers, sometimes referred to as a shamrock organization Permanent full time workers Temporary parttime workers Freelance or contract workers WORKING TODAY Intellectual capital equation – What you Bring to the Table: Commitment Competency Intellectual Capital How is being a manager different from being other professionals (e.g., accountants, lawyers, doctors)? Figure 2.1 Major branches in the classical approach to management Copyright ©2015 John Wiley & Sons, Inc. Fredrick Taylor’s Experiment Shovel Load 1. 2. 3. 4. 5. 92 lbs 38 lbs 34 lbs 21 lbs 16 lbs Tonnage 1. 2. 3. 4. 5. 12,500 25,000 30,000 48,000 25,000 Q: What’s the “one best way”? Wage increase: $1.15 to $1.85 per day 8 Classical Management Approaches Frederick Taylor Four guiding principles of scientific management (Taylorism) 1. Develop a “science” that includes rules of motion, standardized work implements, and proper working conditions for every job. 2. Carefully select workers with the right abilities for the job. 3. Carefully train workers to do the job and give them incentives to cooperate with the job “science.” 4. Support workers by carefully planning their work and by smoothing the way as they do their work. Copyright ©2015 John Wiley & Sons, Inc. Gilbreth Studies • Devised “motion studies” by photographing the individual movements; removed unnecessary ones. • Applying T & M studies to bricklaying • Eliminated wasted motion and raised their productivity from 1,000 bricks per day to 2,700 bricks per day. Classical Management Approaches Practical insights from scientific management • Make results-based compensation a performance incentive • Carefully design jobs with efficient work methods • Carefully select workers with the abilities to do these jobs • Train workers to perform jobs to the best of their abilities • Train supervisors to support workers so they can perform jobs to the best of their abilities Copyright ©2015 John Wiley & Sons, Inc. Classical Management Approaches Henri Fayol — Administrative Rules/Duties of Management Foresight to complete a plan of action for the future Organization to provide and mobilize resources to implement the plan Command Coordination Control to lead, select, and evaluate workers to get the best work toward the plan to fit diverse efforts together and ensure information is shared and problems solved to make sure things happen according to plan and to take necessary corrective action Copyright ©2015 John Wiley & Sons, Inc. Classical Management Approaches Henri Fayol - Administrative Principles (POLC) • Scalar chain • there should be a clear and unbroken line of communication from the top to the bottom of the organization • Unity of command • each person should receive orders from only one boss • Unity of direction • one person should be in charge of all activities with the same performance objective Copyright ©2015 John Wiley & Sons, Inc. Classical Management Approaches Max Weber - Bureaucratic organization Bureaucracy • An ideal, intentionally rational, and very efficient form of organization • Based on principles of logic, order, and legitimate authority Copyright ©2015 John Wiley & Sons, Inc. Classical Management Approaches •Characteristics of bureaucratic organizations: •Clear division of labor •Clear hierarchy of authority •Formal rules and procedures •Impersonality •Careers based on merit Copyright ©2015 John Wiley & Sons, Inc. Classical Management Approaches Possible disadvantages of bureaucracy: •Excessive paperwork or “red tape” •Slowness in handling problems •Rigidity in the face of shifting needs •Resistance to change •Employee apathy Copyright ©2015 John Wiley & Sons, Inc. Figure 2.2 Foundations in the behavioral or human resource approaches to management Hawthorne studies Elton Mayo Theory of human needs Abraham Maslow Organizations as communities Mary Parker Follett Theory X and Theory Y Douglas McGregor Human resource approaches Assumption: People are social and selfactualizing Copyright ©2015 John Wiley & Sons, Inc. Personality and organization Chris Argyris Figure 2.3 Maslow’s hierarchy of human needs Copyright ©2015 John Wiley & Sons, Inc. Behavioral Management Approaches • Maslow’s theory of human needs • Deficit principle • A satisfied need is not a motivator of behavior • Progression principle • A need becomes a motivator once the preceding lower-level need is satisfied • Both principles cease to operate at self-actualization level Copyright ©2015 John Wiley & Sons, Inc. Behavioral Management approaches • McGregor’s Theory X assumes that workers: • Dislike work • Lack ambition • Are irresponsible • Resist change • Prefer to be led • McGregor’s Theory Y assumes that workers are: • Willing to work • Capable of self control • Willing to accept responsibility • Imaginative and creative • Capable of self-direction Copyright ©2015 John Wiley & Sons, Inc. Behavioral Management Approaches Implications of Theory X and Theory Y: • Managers create self-fulfilling prophecies • Theory X managers create situations where workers become dependent and reluctant • Theory Y managers create situations where workers respond with initiative and high performance • Central to notions of empowerment and self-management Copyright ©2015 John Wiley & Sons, Inc. The Hawthorne Studies What was the missing Variable? Control Group Experimental Group 22 Behavioral Management Approaches Hawthorne studies – Best Associated with Elton Mayo • Initial study examined how economic incentives affected worker output • No consistent relationship found • Manipulated physical work conditions to assess impact on output • Hawthorne effect — people who are singled out for special attention perform as expected • Social and human concerns are keys to productivity • People restricted output to adhere to group norms Copyright ©2015 John Wiley & Sons, Inc. Behavioral Management Approaches Argyris’s theory of adult personality • Classical management principles and practices inhibit worker maturation and are inconsistent with the mature adult personality • Psychological success occurs when people define own goals • Management practices should accommodate the mature personality by: • Increasing task responsibility • Increasing task variety • Using participative decision making Copyright ©2015 John Wiley & Sons, Inc. Behavioral Management Approaches Mary Parker Follett - Organizations as Communities Groups and human cooperation: • Groups allow individuals to combine their talents for a greater good • Organizations are cooperating “communities” of managers and workers • Manager’s job is to help people cooperate and achieve an integration of interests Copyright ©2015 John Wiley & Sons, Inc. Behavioral Management Approaches Organizations as communities Forward-looking management insights: Making every employee an owner creates a sense of collective responsibility • precursor of employee ownership, profit sharing, and gain-sharing Business problems involve a variety of interrelated factors • precursor of systems thinking Private profits relative to public good • precursor of managerial ethics and social responsibility Copyright ©2015 John Wiley & Sons, Inc. Managers – Where We Are Now 1. Directly supports, activates and is responsible for the work of others 2. The people who managers help are the ones whose tasks represent the real work of the organization 3. Effective managers help others achieve high performance and satisfaction at work Levels of management • Board of directors make sure the organization is run right • Top managers are responsible for performance of an organization as a whole or for one of its major parts • Middle managers oversee large departments or divisions • Team leaders supervise non-managerial workers Figure 1.3 Management levels in a typical business and non-profit organizations Managers Types of Managers • Line managers are responsible for work activities that directly affect organization’s outputs • Staff managers use technical expertise to advise and support the efforts of line workers • Functional managers are responsible for a single area of activity • General managers are responsible for more complex units that include many functional areas • Administrators work in public and nonprofit organizations The Management Process • Agenda setting - Develops action priorities for accomplishing goals and plans • Networking - Process of creating positive relationships with people who can help advance agendas • Social capital - Capacity to get things done with help • Learning - The change in a behavior that results from experience • Lifelong Learning - The process of continuously learning from daily experiences and opportunities The Management Process oManagers achieve high performance for their organizations by best utilizing its human and material resources oManagement is the process of planning, organizing, leading, and controlling the use of resources to accomplish performance goals oAll managers are responsible for the four functions oThe functions are carried on continually Figure 1.5 Four Functions of Management MINTZBERG’S 10 MANAGERIAL ROLES Figure 1.6 Katz’s Essential Managerial Skills Foundations for continuing developments in management Quantitative analysis and tools Organizations as systems Contingency thinking Quality management Evidence-based management Copyright ©2015 John Wiley & Sons, Inc. Next Class – Feb 8 •Complete Online Activities (OAs) 1 & 2 this week by 11:30am before next class •Complete your Online Quiz #1 (OQ) by 11:55pm, Friday, Feb 12 •Read CH 1, pgs 10-12 AND CH 3, pgs 51-63 •Post General Questions on Moodle or email me – Have a great week!!
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