Management and Entrepreneurship , Unit 1

5/6 Semester VTU

Management & Entrepreneurship

Unit 1 : Management

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Who is a Manager? •

Manager  –

Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.

Classifying Managers •

First-line Managers  –

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Middle Managers  –

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Are at the lowest level of management and manage the work of non-managerial no n-managerial employees. Manage the work of first-line managers.

 Top Managers  –

Are responsible for making organizationwide decisions and establishing plans and goals that affect the entire organization.

Managerial Levels

What Is Management? •

Managerial Concerns  –

Efficiency •

“Doing things right”  –

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Getting the most output for the least inputs

Effectiveness •

“Doing the right things”  –

Attaining organizational organizational goals

Effectiveness and Efficiency in Management

What Do Managers Do? •

Functional Approach  –

Planning •

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Organizing •

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Arranging work to accomplish organizational goals.

Leading •

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Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.

Working with and through people to accomplish goals.

Controlling

Management Functions

What Do Managers Do? (cont’d)

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Roles Approach  –

Interpersonal roles •

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Informational roles •

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Figurehead, leader, liaison Monitor, disseminator, spokesperson

Decisional roles •

Disturbance handler, resource allocator, negotiator

What Do Managers Do? (cont’d) •

Skills Approach  Technical skills

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Human skills •

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Knowledge and proficiency in a specific field  The ability to work well with other people

Conceptual skills •

 The ability to think and conceptualize about abstract and complex situations concerning the organization

Skills Needed at Different Management Levels

Conceptual Skills •

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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

Communication Skills •

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Ability to transform ideas into words and actions Credibility among colleagues, peers, and subordinates

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Listening and asking questions

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Presentation skills; spoken format

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Presentation skills; written and/or graphic formats

Effectiveness Skills •

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Contributing to corporate mission/departmental objectives Customer focus Multitasking: working at multiple tasks in parallel

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Negotiating skills

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Project management

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Reviewing operations and implementing improvements

Effectiveness Skills (cont’d) •

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Setting and maintaining performance standards internally and externally Setting priorities for attention and activity  Time management

What Is An Organization? •

An Organization Defined  –

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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  –

Why Study Management? •

 The Value of Studying Management  The universality of management

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Good management is needed in all organizations.

 The reality of work

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Employees either manage or are managed.

Rewards and challenges of being a manager •

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Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work. Successful managers receive significant

Development of Major Management  Theories

Scientific Management •

Fredrick Winslow Taylor  The “father” of scientific management

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Published Principles of Scientific Management (1911) Management (1911) •

 The theory of scientific management management  –

Using scientific methods to define the “one best way” for a job to be done: »

Putting the right person on the job with the correct tools and equipment.

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Having a standardized method of doing the job.

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Providing an economic incentive to the worker.

 Taylor’s Five Principles of Management 1. Develop a science for each element of an individual’s work, which will replace the old ruleof-thumb method. 2. Scientifically select and then train, teach, teach, and develop the worker. 3. Heart Heartily ily cooperate cooperate with with the workers workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work work and responsibility almost equally equally between management and workers. 5. Management takes takes over all work for which it is better fitted than the workers.

Scientific Management (cont’d) •

Frank and Lillian Gilbreth  –

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Focused on increasing worker productivity through the reduction of wasted motion Developed the microchronometer to time worker motions and optimize performance

How Do Today’s Managers Use Scientific Management?  –

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Use time and motion studies to increase productivity Hire the best qualified employees Design incentive systems based on output

General Administrative  Theorists •

Henri Fayol Believed that the practice of  management was distinct from other organizational functions  – Developed fourteen principles of  management that applied to all organizational situations  –

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Max Weber  –

Developed a theory of authority based on an ideal type of organization (bureaucracy)

Fayol’s 14 Principles of Management 1.Division of work.

1. Remuneration.

2.Authority.

2. Centralization.

3.Discipline.

3. Scalar chain.

4.Unity of  command.

4. Order.

5.Unity of  direction. 6.Subordination of  individual interest to the interests of the organization.

5. Equity. 6. Stability of  of  tenure of  personnel. 7. Initiative. 8. Esprit de corps.

Weber’s Ideal Bureaucracy

Quantitative Approach to Management •

Quantitative Approach  –

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Also called operations research or management science Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems Focuses on improving managerial decision making by applying: •

Statistics, optimization models, information models, and computer simulations

Understanding Organizational Behavior •

Organizational Behavior (OB)  The study of the actions of people at work; people are the most important asset of an organization

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Early OB Advocates  –

Robert Owen

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Hugo Munsterberg

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Mary Parker Follett

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Chester Barnard

 The Hawthorne Studies •

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A series of productivity experiments conducted at Western Electric from 1927 to 1932. Experimental findings  –

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Productivity unexpectedly increased under imposed adverse working conditions.  The effect of incentive plans was less than expected.

Research conclusion  –

Social norms, group standards and attitudes more strongly influence individual output and

 The Systems Approach •

System Defined  –

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A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

Basic Types of Systems  –

Closed systems •

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Are not influenced by and do not interact with their environment (all system input and output is internal).

Open systems •

Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

 The Organization as an Open System

 The Contingency Approach •

Contingency Approach Defined  –

Also sometimes called the situational approach.

 There is no one universally applicable set of management principles (rules) by which to manage organizations.

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Organizations are individually different, face different situations (contingency variables), and require different ways of  managing.

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