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