Management

Management

Chapter 1: What is Management?

Defined as :

  • The pursuit of organizational goals efficiently and effectively by
  • Integrating the work of people through
  • Planning. Organizing, Leading, and Controlling the organization's resources (time, people, money… anything that helps business achieve their goals).

POLC:

Planning: set and define how to achieve goal, Organising: arrange resources to accomplish goals.

Leading : motivate and direct individuals,

Controlling: assess performance and achievement of goals.

Levels of manager:

  • Top: long term goal and strategy development
  • Middle : implement the decisions & strategies
  • First- line: short term decision making
  • Team leader: facilitate day to day team activities towards achieving a specific goal

Different types of organisations

  • For-profits exist to make monev (Apple, Chipotle, etc)
  • Non-profits exist to help others (Red cross, colleges, etc)
  • Mutual-benefit organizations exist to aid their members (unions)

Skills managers need:

  • Technical Skills: Job-specific knowledge
  • Conceptual Skills : Understand problems and develop solutions
  • Soft Skills: Working well with people to get things done

Challenges when managing:

  • Staying ahead of competition
  • Keep up with technology change
  • Managing inclusion & diversity
  • Understanding globalisation
  • Ethical dilemmas
  • Sustainable development
  • Management happiness & meaningfulness

Chapter 2: Classical management theory

Scientific management : Fred Taylor

  • divide work into specialities \n Time & motion studies
  • Paying workers based on output
  • Select workers based on their abilities for a specific task

Administrative Management: Henri Fayol

  • Developed POLC framework (planning organising, commanding, coordinating and controlling)
  • Division of work (tasks go to specialists)
  • Clear hierarchy ane chain of command
  • Careers based on merits

Bureaucratic management: Max Weber

  • Positions in Germany were based on social status, not merit \n Clear hierarchy
  • Clear rules and regulations
  • Work is divided into specialised tasks
  • Decisions should be fair and impartial
  • \

industrial revolution: Late 1700's - 1800's, technological innovation, economic growth, social changes.

Challenges from industrial revolution:

Managing workforce

Emplovment structure

Managerial control

Motivating emplovees

Work relationships

Examine human behaviour and motivation to achieve organisational goals

  1. Earl behaviourism
  2. Human relation movement
  3. Behavioural science
    Hugo Munsterberg: (medical doctor & psychologist) suggested that psychology could positively impact workplace. Best people
    for specific jobs.
    . Align emplovee and manager interests.
    Mary Parker Follet: (social worker & philosopher/ female pioneer) organisations should be democratic. Less hierarchy, manager
    & subordinates should work. solve problem together.
    Elton Mayo: (scientific management) introduced employees as social beings. "Hawthorne effect if you are being watched you work harder, good human relation increase productivity
    Human relations movement:
    Abraham Maslow -> Maslow's hierarchy of needs
  4. self actualisation 2) esteem needs 3) belongingness & love needs 4) Safety needs 5) Physiological needs
    Douglas McGregor => Theory X (workers need to be led and controlled) & Theory Y (positive assumptions about employees).
    Transactional focuses on transaction, transformational focuses on the people.
    Behaviour science approach
    Performance management
    Recruiting succession
    Organisational culture
    Group dynamics
    • Interdisciplinary

Ethics

Definition : standard right & wrong that influence behaviour.

Management defined by pursuing goals through people via planning, organising, leading and controlling (POLC).

Profit => main goal of businesses,

Triple bottom line : People Planet Profits

Organisational stakeholders :

  • internal : employees, owners, board of directors
  • External : task environment (customers, competitors, communities) & general environment ( government, technology, demographics).

Ethically vs Legality ?

Ethics are typically above legality. Something legal doesn’t have to be ethical.

Approaches to ethical decision-making:

  • Utilitarianism : maximising overall happiness/ utility.
  • Virtue ethics : virtuous character traits used to make ethical decisions.
  • Right-based ethics : prioritise the rights and freedoms.
  • Ethical egoism : people should act for their own interests.
  • Pragmatic ethics : considers practical considerations and real world consequences aiming for balance between moral and practicality.

Type of unethical workplace behaviours :

  1. Conflict of interests
  2. Abusive behaviours
  3. Violation of health/ safety regulations
  4. Corruption
  5. Discrimination
  6. Sexual harassment

How do people learn ethics ?

  • Kohlberg’s theory of moral development :
    • Level 1 - Pre-conventional : based on reward and punishments
    • Level 2 - Conventional : based of external ethics
    • Level 3 - Post-conventional : moral reasoning based on personal ethics
  • Carroll’s global CSR responsibility pyramid :
    • Philanthropic
    • Ethical
    • Legal
    • Economic

Example of Unethical behaviour : Theranos Founder Elizabeth Holmes > Falsified blood testing revolution with unethical business practice, multiple frauds and conspiracy.

Corporate governance structure :

  • ethical culture
  • Link executive compensation to CSR metrics (people planet profits)
  • Code of conduct
  • Disclosure and transparency

Corporate social responsibility : Shareholders vs. Stakeholders ?

Shareholders : owners of firm, direct financial interest.

Stakeholders : People impacted by a company, internal & external.

Milton Friedman : Nobel prize winner for shareholder theory.

Shareholder theory :

  • The social responsibility of business is to increase its profits
  • Businesses should only engage in social responsibility activities if they are profitable or if they are required by the law,
  • Businesses can do social actions under the cloak of profit maximisation (greenwashing),

Alex Edmans : academic and economist, he says that you need to have a corporate social responsibility to sell.

Triple bottom line CSR and ESG

ESG rating informs investors about a company’s commitment to :

  • Environment : climate and green energies
  • Social issues : health, safety, community
  • Corporate governance : fairness, transparency and ethics

Prior CSR Research

Mixed results :

  1. CSR helps financial performance
  2. CSR hurts financial performance
  3. CSR has no correlation to financial performance

Current study

  • Tech firms between 2017-2019
  • Explore if CSR initiatives relate to financial performance : employee relations, environment, corporate relations…

Findings

Results show that invest in CSR increase revenue and profits