1 June 2016.POM-Chapter 2; Introduction to Management

Date:1 June 2016

Chapter 2-Introduction to Management

Classical Theory Management
• Classical management theory is the oldest formal school.
• Began around 1900 and continued into the 1920.
• There were a lot of problems related to factory systems.
• This perspectives were develop to seek the one best way of performing and managing tasks.
• Classical approach includes scientific, administrative and bureaucratic management.

Classical Scientific School
• Scientific management focuses on the “one best way” to do a job.
• The classical scientific school owes its roots to several major contributors, including
– Frederick Taylor
– Henry Gantt
– Frank and Lillian Gilbreth

Chapter 1-Introduction to Management

• Organizations: People working together and coordinating their actions to achieve specific goals.

• Goal: A desired future condition that the organization seeks to achieve.

• Management: The process of using organizational resources to achieve the organization’s goals by
.
Planning; Choose Goals*process used by managers to identify and select appropriate goals and courses of action for an organization.

Organizing;Working Together *Process of determining what needs to be done, how it will be done and who is it to do it.

Leading;Coordinate *Motivating others to reach goals,Resolving Conflicts towards achieving
organizational goals

Controlling;Monitor & Measure *Managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.

Characteristic of Organizations
1. A distinct goal and purpose
2. A systematic structure
3. An aim to serve society
4. Machine of management

Efficiency: A measure of how well resources are used to achieve goal. Usually, managers must try to minimize the input of resources to attain same goal.

Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved

Management Level

First-line Managers: responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service.

Middle Managers: Supervise first-line managers.They are also responsible to find the best way to
use departmental resources to achieve goals.

Top Managers: Responsible for the performance of all departments and have cross-departmental
responsibility. They establish organizational goals and monitor middle managers.

Managerial Roles

Interpersonal Roles;managers assume to coordinate and interact
with employees and provide direction to the
organization.

– Figurehead role: symbolizes the organization and what it
is trying to achieve.

– Leader role: train, counsel, mentor and encourage high
employee performance.

– Liaison role: link and coordinate people inside and
outside the organization to help achieve goals.

Informational Roles ;Associated with the tasks needed to obtain and
transmit information for management of the organization.

– Monitor role: analyzes information from both the internal and external environment

– Disseminator role: manager transmits information to

– Spokesperson role: use of information to positively
internal and external environment.
influence attitudes and behavior of employees.
influence the way people in and out of the organization
respond to it.

Decisional Roles;Associated with the methods managers use to plan
strategy and utilize resources to achieve goals.

– Entrepreneur role: deciding upon new projects or programs to

– Disturbance handler role: assume responsibility for handling

– Resource allocator role: assign resources between functions

– Negotiator role: seeks to negotiate solutions between other
initiate and invest.an unexpected event or crisis.
and divisions, set budgets of lower managers,unions,customers and shareholders.

Managerial Skills

1. Conceptual skills: the ability to analyze and
diagnose a situation and find the cause and effect.

2. Human skills: the ability to understand, alter, lead,
and control people’s behavior.

3. Technical skills: the job-specific knowledge
required to perform a task. Common examples
include marketing, accounting, and manufacturing.

Management Challenges
• Increasing number of global organizations.
• Building competitive advantage through superior
efficiency, quality, innovation, and responsiveness.
• Increasing performance while remaining ethical managers.
• Managing an increasingly diverse work force.
• Using new technologies.