MGMT 1110

Introduction to

Dr. Wouter STAM

Department of Management
1

What Do Managers Do?

Find 3 partners students you dont know yet.
Go to www.careerjet.hk (or a similar site)
Identify at least 4 job advertisements (one per person)
Discuss with your group:

What are the tasks and responsibilities of managers?

What skills should managers have?

Whats Management (and MGMT 1110)?

Simply speaking, management is what managers do.
Management has been practiced for a long time; in recent years, it has
emerged into a field of study.
Managers navigate the internal and external environment, and make
decisions.
Managers job involves 4 groups of activities including:
planning (defining goals and developing plans)
organizing (arranging and structuring work)
leading (influencing and motivating people)
controlling (monitoring and correcting work performance)

MGMT 1110 provides you an introduction of all these elements

MGMT 1110 course outline:

The External Environment

The Internal
Environment

Topic 2: Managing the

external environment

Topic 4:
Decision making

Topic 1: Foundations
and history of
management

Topic 3:
Organizational
culture

The Manager
Planning

Topic 5: Planning
and strategy

Organizing

Topic 6:
Organizational
structure

Controlling

Topic 9:
Controlling

Leading

Topic 7: Motivation
Topic 8: Leadership

Course Materials
Stephen P. Robbins and Mary Coulter (2016)
Management, 13th ed. Pearson
[Library call number: HD31 .R5647 2016]
Canvas Course Website

Course Components

Examination 1
Examination 2
Class participation
Case quizzes
Group project presentation
Total

27.5 points
27.5 points
10.0 points
5.0 points
30.0 points
100 points

10

Class Participation

11

Exams
Format
Mix of MC questions and essay questions
Materials covered: assigned textbook chapters and articles

Exam 1
Coverage: topics 1 to 4
October 14; location LT-B, time TBD

Exam 2
Coverage: topics 5 to 9
Date/time/venue TBD by ARRO
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Case Studies
You are expected to prepare 3
case studies for this course
Each case discussion class will
start with a short quiz (5MC)
This is to ensure everybody is
well prepared and will benefit
most from the discussion
13

Group Project
The group project offers us an opportunity to
apply knowledge learned to real management
issues presented in a reality television
program Undercover Boss.
A. I have watched Undercover Boss before
B. I have NOT watched Undercover Boss
before

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MGMT 1110
Introduction to Management
Topic 1 Foundations and History of
Management

To learn more about this topic, read Chapter 1 and the

History of Management Module of the textbook

15

MGMT 1110 course outline:

The External Environment

The Internal
Environment

Topic 2: Managing the

external environment

Topic 4:
Decision making

Topic 1: Foundations
and history of
management

Topic 3:
Organizational
culture

The Manager
Planning

Topic 5: Planning
and strategy

Organizing

Topic 6:
Organizational
structure

Controlling

Topic 9:
Controlling

Leading

Topic 7: Motivation
Topic 8: Leadership

16

Topic 1 Foundations and History of Management

What is management?
Organizational goals: efficiency and effectiveness
Management functions: POLC
Managerial roles
Management skills
Looking back: The history of management
Classical approach
Behavioral approach
Systems approach
Contingency approach

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Whats

Management is the attainment of organizational goals in an

effective and efficient manner through planning, organizing,
leading, and controlling organizational resources.

Managers use their conceptual, human, and technical skills to

perform different managerial roles.

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Management is about attainment of organizational goals.

Whats an organization? Its a deliberative arrangement of people to
accomplish some specific purpose

An organization has a
distinct purpose
typically expressed
through goals the
organization hopes to
accomplish

Each organization is
composed of people.
It takes people to
perform the work that
is necessary to achieve
organizational goals

All organizations
develop a deliberate
structure within which
members do their
work

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We are members of MANY organizations

HKUST
---------------------------------------------------------------20

 Top Managers are responsible for making organization-wide decisions and

establishing plans and goals that affect the entire organization.
Middle managers manage the work of first-line managers and can be
found between the lowest and top levels of the organization

First-line managers manage the work of non-managerial employees who

typically are involved with producing the organizations products
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Management involves coordinating and overseeing the work of others

so their activities are completed efficiently and effectively
Efficiency
A measure of how productively resources (including people, money,
and equipment) are used to achieve a goal
doing things right
Effectiveness
A measure of the degree to which work activities result in achieving
a goal
doing the right things

Management strives for:

Low resource waste (high efficiency)
Attainment of appropriate goal (high effectiveness)
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Efficiency

Effectiveness

________________

________________

________________

________________

________________

________________

________________

________________
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Management is the attainment of organizational goals in an effective and

efficient manner through performing four Management Functions

In planning we:
Define an
organizations
goals
Establish plans
to achieve goals

In organizing we:
Define how
tasks are
grouped into
departments
and how
departments
are coordinated

In leading we:
Use influence
to motivate
employees

In controlling we:
Monitor actual
performance
and compare
it with the
goals
Correct
deviations
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Example: Planning

25

Example: Organizing
Google is ranked #1 in Fortunes 100 best companies to
work for in 2014
Google provides a range of perks to employees, including:
Indoor and outdoor sports and recreation facilities
Lots of good food: "Employees are never more than 150 feet
away from a well-stocked pantry, says one Googler

Free Android devices

An option of standing desk: Why? According to the American
Cancer Society, women who sit more than 6 hours a day are 37%
more likely to die earlier than women who sit less than 3 hours a day.
Men are 18% more likely.
Source: Google: The king of perks, Fortune, January 30, 2012

Example: Leading

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Example: Controlling

28

Lets Have a Break

(10 minutes!)

29

Managerial Roles
Henry Mintzberg proposed that managers
perform 10 different roles, which could be
further grouped into three categories that
are highly interrelated.
Because of their authority and status,
managers have the duty of representing the
organization and develop interpersonal
relationships.

The interpersonal roles place managers in a

unique position to get information.
Managers unique access to information and
special status and authority allows them to
make significant organizational decisions.
Source: Mintzberg, H. (1973) The nature of managerial work,
Ch.4: The managers working roles.

Formal authority
and status

Interpersonal roles
Figurehead
Leader
Liaison
Informational roles
Monitor
Disseminator
Spokesman

Decisional roles
Entrepreneur
Disturbance handler
Resource allocator
Negotiator

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Interpersonal roles
The figurehead role:
Represent the organization in all matters of a legal or social nature

The leader role:

Maintain relationships with subordinates motivate and direct them
The liaison role:
Interact with people outside the organization to gain favors and information

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The informational roles

The monitor role:
Receive wide variety of
information; serve as nerve
center of internal and external
information of the organization
The disseminator role:
Transmit information received
from outsiders or from other
employees to members of the
organization
The spokesperson role:
Transmit the organizations
information to outsiders

Manager as Monitor
Receive external
information
(through Liaison role)

Manager as Monitor
Receive internal
information
(through Leader role)

The Manager

Manager as
Disseminator
Transmit information
to subordinates

Manager as
Spokesperson
Transmit information
to outsiders
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The decisional roles

The entrepreneur role:
Look for opportunities and initiate change

The disturbance handler role:

Take charge when the organization is threatened

The resource allocator role:

Allocate organizational resources such as
money, time, manpower, and equipment
The negotiator role:
Represent the organization at major
negotiations
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34

Management Skills
Robert Katz proposed that managers need 3 critical skills in managing:
Technical skills: Knowledge and ability in a
specialized area of business such as
mechanical engineering or accounting

Human skills: The ability to understand, work

with, and motivate other people

Conceptual skills: The ability to think and to

conceptualize about abstract and complex
situations
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In the Google context, wed always believed that to be a manager,

particularly on the engineering side, you need to be as deep or
deeper a technical expert than the people who work for you.
It turns out that thats absolutely the least important thing. Its
important, but pales in comparison. Much more important is just
making that connection and being accessible.

Mr. Laszlo Bock (Googles vice president for

people operations, i.e. human resources)

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To summarize:

Managers
possessing skills:
Technical
Human
Conceptual

Functions:
Planning
Organizing
Leading
perform Controlling
Roles:
Interpersonal
Informational
Decisional

Organizational
performance
to achieve High
effectiveness
High
efficiency

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The History of Management

Egyptian pyramids and the Great Wall of China
proof that projects of tremendous scope,
employing tens of thousands of people, were
completed in ancient times.
Someone has to plan what has to be done, to
organize people and materials to do the work, to
lead the workers, and to impose some controls
to ensure that everything was done as planned.
Whos that someone?
The answer is _______________.

38

Moses and Management (maybe 4000 BC?)

17 Moses' father-in-law replied, "What
you are doing is not good. 18 You and
these people who come to you will only
wear yourselves out. The work is too
heavy for you; you cannot handle it
alone. 19 Listen now to me and I will
give you some advice, and may God be
with you. You must be the people's
representative before God and bring
their disputes to him. 20 Teach them
the decrees and laws, and show them
the way to live and the duties they are
to perform. 21 But select capable men
from all the peoplemen who fear God,
trustworthy men who hate dishonest
gainand appoint them as officials over
thousands, hundreds, fifties and tens.
22 Have them serve as judges for the
people at all times, but have them bring
every difficult case to you; the simple
cases they can decide themselves. That
will make your load lighter, because
they will share it with you. 23 If you do
this and God so commands, you will be
able to stand the strain, and all these
people will go home satisfied."
BIBLE (NIV) Exodus 18:13-26

39

Wealth of Nations
Adam Smith, 1776
a workman not educated to this business [pin making] could
scarce, perhaps, with his utmost industry, make one pin in a
day, and certainly could not make twenty. Now this business
is divided One man draws out the wire, another
straights it, a third cuts it, a fourth points it, a fifth grinds it at
the top for receiving, the head; to make the head requires
two or three distinct operations; to put it on is a peculiar
business, to whiten the pins is another; it is even a trade by
itself to put them into the paper (p.7)
Job specialization: breaking jobs down into focused and
repetitive tasks should increase productivity

40

The Industrial Revolution

Late 18th century: machine power begins to substitute labor

Large factories emerge that need to be managed; but how?
Limited knowledge of what forms of management are effective
Workers fear that machine power makes them lose jobs
An overall depersonalization of the workplace

Since then, steps were taken to develop theories that guide

managers in running large organizations.
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In this course, we look at four major approaches to management theory:

Classical approach

Behavioral approach

Quantitative approach

Contemporary approach

Each of the four approaches contributes to our overall understanding

of management, but each is also a limited view of good management.
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Classical Approach
Scientific Management

Classical

Behavioral

Quantitative

Contemporary

The father of scientific management:

Fredrick Winslow Taylor (1856-1915)
Working in a steel company, Taylor observed that
workers engage in soldiering the deliberate slow
down in work by workers in order to keep their
employers ignorant of how fast the work can be done.

Why did soldiering exist? Taylor blamed on poor

management. He published Principles of Scientific
Management in 1911 to address the problem.
Scientific management emphasizes improving the efficiency by the
scientific study of work procedures and tools; there should be one
best way to perform any task.
43

Example: Applying scientific management

in Ford company
After the implementation of
job specialization , time needed to build
_______________
a car decreased from several weeks to 14
hours.

As a result of the implementation of

assembly line
_______________,
time needed to build
a car decreased from 14 hours to 1.5
hours.
Results: Increased efficiency led to
increased profit. This allowed the
company to give higher pay to workers.
44

Taylors four principles of scientific management

1. Develop a science for each element of an individuals work (i.e.
develop the one best way to perform a task).
2. Scientifically select and then train the workers.
3. Cooperate with workers so as to ensure that all work is done in
accordance with the one best way.
4. Divide work and responsibility between management and
workers. Management takes over all work for which it is better
fitted than the workers.

45

Contemporary Applications of Scientific

Management

46

Limitations of Scientific Management

What happened at Foxconn in 2010?

Scientific management focuses on improving efficiency of

the work of non-managerial employees.
It views workers as rational economic beings who work
only for money, ignored their psychological needs.

47

Classical Approach
General Administrative Theory

Classical

Behavioral

Quantitative

Contemporary

Henri Fayol (1841-1925), director of a large

French coal-mining firm, believed that
management was something distinct from
other functions.
Fayol argued that the administrative ability of
managers is more critical for organization
success than their technical skills.
He developed 14 principles of management
that applied to all organizational situations

48

Fayols 14 Principles of Management

1. Division of work

7.

Remuneration

2. Authority

8.

Centralization

3. Discipline

9.

Scalar chain

4. Unity of command

10. Order

5. Unity of direction

11. Equity

6. Subordination of
individual interest to
the interests of the
organization

12. Stability of tenure of

personnel
13. Initiative
14. Esprit de corps
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Experimental group

Control group

Classical

Behavioral

Quantitative

Contemporary

Behavioral approach
Hawthorne studies: Opened the door to
behavioral approach
A series of studies during 1924-1932 at
the Hawthorne factory of the Western
Electric Company

Were initially designed as a scientific

management experiment to investigate
the effect of illumination levels on worker
productivity
Researchers concluded that light intensity
was not directly related to productivity,
and something else was important.
Like moonlight

Researchers later, after a series of studies, concluded

that worker attitude plays a role in affecting
productivity
The presence of the researchers in the workplace
was affecting the productivity. The workers enjoyed
receiving attention from managers, and believed that
they were being valued.

From a historical standpoint, the Hawthorne studies

stimulated an interest in understanding workers
feelings, thoughts, and behaviors (a field of study
now known as organizational behavior)

51

Quantitative Approach

Classical

Behavioral

Quantitative

Contemporary

Also known as Operations Research and

Management Science
Focuses on improving managerial decision
making by applying statistics, optimization
models, computer simulations, and other
quantitative data analysis tools

Increased importance due to:

Powerful computers at low cost
Availability of BIG data

52

Recent Applications of Quantitative Approach

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Contemporary Approaches:
Systems Approach

Classical

Behavioral

Quantitative

Contemporary

While earlier management approaches focus on managers concern

inside the organization, starting in the 1960s, researchers began to
look at what was happening in the external environment outside the
organization.
In the systems approach, an organization is seen as a set of
interrelated and interdependent parts arranged in a manner that
produces a unified whole; it interacts with its environment by taking
in inputs and transforming them into outputs that are distributed
into its environment.
Implications of the systems approach
Coordination of the organizations parts is essential for proper
functioning of the entire organization
Organizations must adapt to changes in their external environment
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The organization as a system that interact with its environment

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HKUST as a system
What are the internal parts?
How are they interrelated?

What are the inputs?

What are the

transformation processes?

What are the outputs?

What are the feedbacks?

56

Contemporary Approaches:
Contingency approach

Classical

Behavioral

Quantitative

Contemporary

Contingency approach stresses that there are no simplistic or

universal rules for managers to follow.
Organizations are different, facing different situations, and require
different managerial practices.
Characterized by the phrases like It depends and If then
E.g. Should an organization outsource its manufacturing processes
to cheap-labor countries?
It depends.
If the task involves valuable private knowledge, then outsourcing
may lead to leakage of valuable knowledge, thereby hurting
organizational performance.
If the task doesnt involve private knowledge, then outsourcing can
lower labor cost, thereby improving organizational performance.
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Management Challenge

Best Approach?

Contingencies?

Whom to hire as new CEO

Where to locate headquarters

When to enter a new market
Grow fast or slow

What type of culture to create

Promote more innovation
Make decisions slow or quickly

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To summarize:

Classical approach

Behavioral approach

Quantitative approach

Contemporary approach

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Intended learning outcomes

for Topic 1
By now, you should be able to:
Contrast efficiency and effectiveness
Describe the functions, roles, and skills of managers
Explain the importance of each of the four approaches in
the history of management theory

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