Unit 1

MANAGEMENT & ORGANIZATIONAL BEHAVIOUR

 Who Are Managers?
Someone who works with and through other people by coordinating and integrating
their work activities in order to accomplish organizational goals.
First-line Managers
Are at the lowest level of management and manage the work of non-managerial employees.
Middle Managers
Manage the work of first-line managers.
Top Managers
Are responsible for making organization-wide decisions and establishing plans and goals that affect the
entire organization.
Managerial Levels
Management

Managerial Concerns
◦ Efficiency
◦“Doing things right”
◦ Getting the most output for the least inputs
◦ Effectiveness
◦“Doing the right things”
◦ Attaining organizational goals
Efficiency and Effectiveness
What Do Managers Do?
Functional Approach
◦ Planning
◦ Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate
activities.
◦ Organizing
◦ Arranging work to accomplish organizational goals.
◦ Directing
◦ Working with and through people to accomplish goals.
◦ Controlling
◦ Monitoring, comparing, and correcting the work.
What Do Managers Do? (cont’d)
Management Roles Approach
◦ Interpersonal roles
◦ Figurehead, leader, liaison
◦ Informational roles
◦ Monitor, disseminator, spokesperson
◦ Decisional roles
◦ Disturbance handler, resource allocator, negotiator

Skills Approach
◦ Technical skills
◦ Knowledge and proficiency in a specific field
◦ Human skills
◦ The ability to work well with other people
◦ Conceptual skills
◦ The ability to think and conceptualize about abstract and complex situations concerning the organization
Management Functions
Skills Needed at Different Management
Levels
Conceptual Skills
❖Using information to solve business problems
❖Identifying of opportunities for innovation
❖Recognizing problem areas and implementing solutions
❖Selecting critical information from masses of data
❖Understanding of business uses of technology
❖Understanding of organization’s business model
Communication Skills
❖Ability to transform ideas into words and actions

❖Credibility among colleagues, peers, and subordinates

❖Listening and asking questions

❖Presentation skills; spoken format

❖Presentation skills; written and/or graphic formats

Effectiveness Skills
❖Contributing to corporate mission/departmental objectives

❖Customer focus

❖Multitasking: working at multiple tasks in parallel

❖Negotiating skills

❖Project management

❖Reviewing operations and implementing improvements

Effectiveness Skills (cont’d)
❖Setting and maintaining performance standards internally and
externally
❖Setting priorities for attention and activity
❖Time management
Interpersonal Skills
❖Coaching and mentoring skills

❖Diversity skills: working with diverse people and cultures

❖Networking within the organization

❖Networking outside the organization

❖Working in teams; cooperation and commitment

How The Manager’s Job Is Changing

The Increasing Importance of Customers

◦ Customers: the reason that organizations exist
◦ Managing customer relationships is the responsibility of all managers and employees.
◦ Consistent high quality customer service is essential for survival.

Innovation
◦ Doing things differently, exploring new territory, and taking risks
◦ Managers should encourage employees to be aware of and act on opportunities for innovation.
Changes Impacting
the Manager’s Job
What Is An Organization?
An Organization Defined
◦ A deliberate arrangement of people to accomplish some specific purpose

Common Characteristics of Organizations

◦ Have a distinct purpose (goal)

◦ Composed of people

◦ Have a deliberate structure

Characteristics of Organizations
The Changing Organization
Universal Need for Management
Rewards and Challenges of Being A Manager
Evolution of Management Thoughts
Pre-Scientific Management Era (before 1880),
Classical management Era (1880-1930),
Neo-classical Management Era (1930-1950),
Modern Management era (1950-on word).
The Evolution of Management Theory
Scientific Management Theory
Evolution of Modern Management
◦ Began in the industrial revolution in the late 19th century as:
◦ Managers of organizations began seeking ways to better satisfy customer needs.

◦ Large-scale mechanized manufacturing began to supplanting small-scale craft production in the ways
in which goods were produced.

◦ Social problems developed in the large groups of workers employed under the factory system.

◦ Managers began to focus on increasing the efficiency of the worker-task mix.

Job Specialization and the Division of Labor
Adam Smith (18th century economist)
◦ Observed that firms manufactured pins in one of two different ways:
◦ Craft-style—each worker did all steps.

◦ Production—each worker specialized in one step.

◦ Realized that job specialization resulted in much higher efficiency and

productivity
◦ Breaking down the total job allowed for the division of labor in which workers became
very skilled at their specific tasks.
F.W. Taylor and Scientific Management
Scientific Management
◦The systematic study of the relationships between people
and tasks for the purpose of redesigning the work process
for higher efficiency.

◦ Defined by Frederick Taylor in the late 1800’s to replace informal rule of

thumb knowledge.
◦ Taylor sought to reduce the time a worker spent on each task by optimizing
the way the task was done.
Four Principles of Scientific Management
Principles to increase efficiency:
1. Study the ways jobs are performed now and determine new ways to do them.
◦ Gather detailed time and motion information.
◦ Try different methods to see which is best.
2. Codify the new methods into rules.
◦ Teach to all workers the new method.

3. Select workers whose skills match the rules.

4. Establish fair levels of performance and pay a premium for higher performance.
◦ Workers should benefit from higher output
Problems with Scientific Management
Managers frequently implemented only the increased
output side of Taylor’s plan.
◦ Workers did not share in the increased output.
Specialized jobs became very boring, dull.
◦ Workers ended up distrusting the Scientific Management method.
Workers could purposely “under-perform.”
◦ Management responded with increased use of machines and
conveyors belts.
Frank and Lillian Gilbreth
Refined Taylor’s work and made many improvements to the
methodologies of time and motion studies.

◦ Time and motion studies

◦ Breaking up each job action into its components.
◦ Finding better ways to perform the action.
◦ Reorganizing each job action to be more efficient.

Also studied worker-related fatigue problems caused by lighting, heating,

and the design of tools and machines.
Administrative Management Theory

Administrative Management
◦ The study of how to create an organizational structure that leads
to high efficiency and effectiveness.
Max Weber
◦ Developed the concept of bureaucracy as a formal system of
organization and administration designed to ensure efficiency and
effectiveness.
Weber’s Principles of
Bureaucracy
 Weber’s Five Principles of Bureaucracy
1. Authority is the power to hold people accountable for their actions.
2. Positions in the firm should be held based on performance, not social
contacts.
3. Position duties are clearly identified so that people know what is
expected of them.
4. Lines of authority should be clearly identified such that workers know
who reports to who.
5. Rules, standard operating procedures (SOPs), and norms guide the
firm’s operations.
 Fayol’s Principles of Management
1. Division of Labor: allows for job specialization.
◦ Fayol noted jobs can have too much specialization leading to poor quality and worker dissatisfaction.

2. Authority and Responsibility

◦ Fayol included both formal and informal authority resulting from special expertise.

3. Unity of Command
◦ Employees should have only one boss.

4. Line of Authority
◦ A clear chain of command from top to bottom of the firm.

5. Centralization
◦ The degree to which authority rests at the top of the organization.

6. Unity of Direction
◦ A single plan of action to guide the organization.

7. Equity
◦ The provision of justice and the fair and impartial treatment of all employees.
 Fayol’s Principles of Management
(cont’d)
8. Order
◦ The arrangement of employees where they will be of the most value to the organization and to provide career
opportunities.

9. Initiative
◦ The fostering of creativity and innovation by encouraging employees to act on their own.

10. Discipline
◦ Obedient, applied, respectful employees are necessary for the organization to function.

11. Remuneration of Personnel

◦ An equitable uniform payment system that motivates contributes to organizational success.

12. Stability of Tenure of Personnel

◦ Long-term employment is important for the development of skills that improve the organization’s performance.

13. Subordination of Individual Interest to the Common Interest

◦ The interest of the organization takes precedence over that of the individual employee.

14. Esprit de corps

◦ Comradeship, shared enthusiasm foster devotion to the common cause (organization).
Behavioral Management Theory
Behavioral Management

◦ The study of how managers should behave to motivate employees and

encourage them to perform at high levels and be committed to the

achievement of organizational goals.

◦ Focuses on the way a manager should personally manage to motivate

employees.
Behavioral Management
Mary Parker Follett
◦ An influential leader in early managerial theory
◦ Held a horizontal view of power and authority in organizations

◦ Suggested workers help in analyzing their jobs for improvements—the worker

knows the best way to improve the job.

◦ If workers have relevant knowledge of the task, then they should control the task.
Theory X and Theory Y

Douglas McGregor proposed the two different sets of assumptions about

workers.
◦ Theory X assumes the average worker is lazy, dislikes work and will do as little as
possible.
◦ Managers must closely supervise and control through reward and punishment.

◦ Theory Y assumes workers are not lazy, want to do a good job and the job itself will
determine if the worker likes the work.
◦ Managers should allow workers greater latitude, and create an organization to stimulate the workers.
Theory X versus Theory Y
Management Science Theory

An approach to management that uses rigorous quantitative techniques to maximize the use of

organizational resources.

◦ Quantitative management—utilizes linear programming, modeling, simulation systems.

◦ Operations management—techniques to analyze all aspects of the production system.

◦ Total Quality Management (TQM)—focuses on improving quality throughout an organization.

◦ Management Information Systems (MIS)—provides information about the organization.

Organizational Environment Theory
Organizational Environment

◦ The set of forces and conditions that operate beyond an

organization’s boundaries but affect a manager’s ability to acquire

and utilize resources.

.
The Open-Systems View
Open System
◦ A system that takes resources for its external environment and converts them
into goods and services that are then sent back to that environment for
purchase by customers.
◦ Inputs: the acquisition of external resources.
◦ Conversion: the processing of inputs into goods and services.
◦ Output: the release of finished goods into the environment.
The Organization as an Open System
Other System Considerations
Closed system
◦ A system that is self-contained and thus not affected by changes
occurring in its external environment.
◦ Often undergoes entropy and loses its ability to control itself, and fails.
Synergy
◦ Performance that results when individuals and departments coordinate
their actions
◦ Performance gains of the whole surpass the sum of the performance
of the individual components.
Contingency Theory
Contingency Theory
◦ The idea that the organizational structures and control systems manager choose depend on—
are contingent on—characteristics of the external environment in which the organization
operates.
◦ Assumes there is no one best way to manage.

◦ The environment impacts the firm and managers must be flexible to react to
environmental changes.
◦ In rapidly changing organizational environments, managers must find ways to coordinate
different departments to respond quickly and effectively.
Contingency Theory of Organizational Design
Mechanistic and Organic Structures
Mechanistic Structure
◦ Authority is centralized at the top. (Theory X)

◦ Employees are closely monitored and managed.

◦ Can be very efficient in a stable environment.

Organic structure
◦ Authority is decentralized throughout the organization. (Theory Y)

◦ Tasks and roles are left ambiguous to encourage employees to react quickly to changing
environment.