MGMT1002 Managing for Impact: Introduction, Management and Managers

Foundations and Learning Outcomes

• The study of management within the context of MGMT$1002$ Managing for Impact focuses on understanding the evolution of theories and the practical application of managerial skills.

• Learning Objective $1$: Understand lessons derived from classical management approaches.

• Learning Objective $2$: Identify insights gained from behavioural management approaches.

• Learning Objective $3$: Recognise the foundational elements of modern management thinking.

Evolution of Management Theories

Management theory has evolved through several distinct phases, each emphasizing different aspects of the workplace and human behavior:

• Classical Approaches ($1911-1947$): This period emphasized finding ways to manage work more efficiently. It is divided into two main categories:

  • Scientific management.

  • Administrative management.

• Behavioural Approaches ($1913-1950$): This era shifted focus toward understanding human behaviour and motivating employees toward achievement. It includes:

  • The human relations movement.

  • The behavioural science approach.

• Modern Management Approaches ($1940-1950$ to present): This phase applies quantitative techniques and scientific methods to management problems. Key areas include:

  • Management science.

  • Operations management.

Classical Approaches to Management

Scientific Management

Scientific management focuses on the study of work methods through scientific inquiry to improve productivity. Key figures include Frederick Taylor, Lillian Gilbreth, and Frank Gilbreth.

• Taylor’s Four Principles of Scientific Management:

  • Develop a science for every element of a worker’s task to replace the old rule-of-thumb method.

  • Scientifically select and then train, teach, and develop the worker.

  • Heartily cooperate with workers to ensure all work is done in accordance with the principles of the science that has been developed.

  • Divide work and responsibility almost equally between management and workers.

• Key Methods:

  • Detailed study of each part of a task.

  • Selection of workers with abilities suited to the specific task.

  • Provision of training and incentives to workers.

  • Use of scientific principles to plan work methods.

Administrative Principles

Henri Fayol systematized management behaviour by identifying specific functions and principles. Unlike scientific management, which focused on individual tasks, administrative theory concerned the management of the total organisation.

• The Four Functions of Management:

  1. Planning.

  2. Organising.

  3. Leading.

  4. Controlling.

• Fayol’s $14$ Principles of Management:

  1. Division of Work.

  2. Authority and Responsibility.

  3. Discipline.

  4. Unity of Command.

  5. Unity of Direction.

  6. Subordination of Individual Interests.

  7. Remuneration.

  8. Centralization.

  9. Scalar Chain.

  10. Order.

  11. Equity.

  12. Stability of Tenure of Personnel.

  13. Initiative.

  14. Esprit de Corps.

Bureaucratic Organisation

Max Weber advocated for a structured, formalised approach to organisation. He believed that a properly staffed and structured organization would be highly efficient and fair in its treatment of both members and clients.

• Characteristics of Bureaucracy:

  • Hierarchical structure.

  • Division of labour.

  • Formal rules and regulations.

  • Impersonal relationships.

  • Career orientation.

  • Merit-based advancement.

Behavioural and Human Resource Approaches

Foundations of Behavioural Management

These approaches emphasize the importance of human behavior and motivation in reaching goals.

• Mary Parker Follett: Proposed that work processes should be under the control of workers with the relevant knowledge. She viewed conflict resolution as a collaborative effort.

• Elton Mayo: Conducted productivity studies at GE’s Hawthorne plant. His findings led to the identification of the Hawthorne effect, where workers’ performance improves when they feel they are being observed or given special attention.

Human Resource Approaches

These theories propose that better human relations lead to increased productivity.

• Maslow’s Hierarchy of Needs: A theory of motivation based on a pyramid of human needs.

• Douglas McGregor’s Theory X vs. Theory Y:

  • Theory X assumes workers are inherently lazy and require constant supervision and coercion.

  • Theory Y assumes workers are self-motivated and enjoy their work tasks.

• Modern Motivation insights: Daniel Pink ($2010$) provides contemporary perspectives on the surprising factors that truly motivate individuals in the workplace.

Modern Management Thinking

Quantitative and Systems Approaches

Modern approaches often utilize data and complex modelling to improve organizational outcomes.

• Management Science: The use of science-based rational tools, such as statistics and computer simulations, to improve decision-making and planning processes.

• Operations Management: Focuses on managing the production and delivery of goods and services more effectively. This includes scheduling, design, inventory management, and production planning.

• Organisations as Subsystems: Organizations are viewed as complex networks of interconnected subsystems.

Contingency and Quality Thinking

• Contingency Thinking: Suggests there is no ‘one best way’ to manage. The most appropriate management style depends on the unique problems, opportunities, and variables of a specific situation.

• Quality Management: Suggests that quality and competitive advantage are inherently linked.

  • Total Quality Management (TQM): A comprehensive, organization-wide approach to continuous improvement.

Evidence-Based Management

Decisions in management should be based on ‘hard facts’ regarding what actually works, utilizing the scientific method.

• The Scientific Method Process:

  1. Identification of a research question or problem.

  2. Stating hypotheses or possible explanations.

  3. Creating a research design to systematically test the hypotheses.

  4. Gathering and interpreting data from the research.

  5. Accepting or rejecting hypotheses based on the gathered evidence.

Current Issues in Management

• Global Awareness: Theory Z emphasizes the competitive global economy, the importance of lateral job movements, teamwork, and broad employee involvement.

• Managing Across Cultures: Strategies are required to manage effectively across different countries and varied cultural backgrounds.

• Learning Organisations: These are value-driven organisations that continuously change and adapt through learning.

Summary of Lesson Plan Essentials

• Lecture $1a$ - Introduction to Unit: Includes logistics such as finding the text, understanding the lesson plan, delivery of classes, and identifying the number of assessments.

• Lecture $1b$ - Management Process: Covers the four key functions (Planning, Organising, Leading, Controlling), managerial roles, and essential managerial skills. It also addresses the dynamics of management, distinguishing between good and bad managers, and the specific challenges and rewards of the managerial role.

• Lecture $1c$ - Evolution of Management Theories: A comprehensive review of the Classical, Behavioural, and Modern approaches to management.