Management Reviewer

Frank and Lilian Gilbreth

• Studied work methods to eliminate inefficient hand and body motions.

• Focused on optimizing work performance through proper tool and equipment design.

• Aimed to reduce the number of motions required to complete jobs.

Microchronometer and Therbligs

• Invented the microchronometer, a device that recorded worker motions and time spent on each motion.

• Developed a classification scheme identifying 17 basic hand motions, termed "therbligs."

Henri Fayol (1841-1925)

• French businessman focused on managerial activities.

• Proposed five core functions of management:

  • Planning

  • Organizing

  • Commanding

  • Coordinating

  • Controlling

Distinction in Management Practices

• Managed a French coal-mining firm.

• Defined management as distinct from accounting, finance, and production.

Fayol's 14 Principles of Management

• Developed fundamental management rules applicable in various organizational situations that can be taught in schools.

Max Weber (1864-1920)

• German sociologist researched organizations, creating the Bureaucracy theory.

• Bureaucracy is characterized by:

  • Division of labor

  • Clearly defined hierarchy

  • Detailed rules and regulations

  • Impersonal relationships

• His theory influenced the structural design of many large organizations today.

Definition of Management

• Management involves designing and maintaining an environment where individuals, working together in groups, can efficiently accomplish selected goals.

Adam Smith (1723-1790)

• Scottish economist, often called the Father of Economics.

• Authored "The Wealth of Nations" in 1776, advocating for the division of labor (job specialization) to enhance productivity.

Effects of Division of Labor

• Job tasks are broken into narrow, repetitive duties.

• Increases productivity through:

  • Enhanced worker skills

  • Time-saving from task switching

  • Encouragement of labor-saving inventions and machinery

Scientific Management Theory

• An approach aiming to determine the "one best way" to perform a job using scientific methods.

• Modern management theory rooted in Fredrick Winslow Taylor's 1911 publication, "Principles of Scientific Management."

Influence of Scientific Management

• Widely adopted by global managers.

• Emphasizes employing scientific methods to establish efficient job performance.

Frederick Taylor (1856-1915)

• Often regarded as the Father of Scientific Management.

• Worked for Midvale and Bethlehem Steel, disturbed by worker inefficiencies and varying job techniques.

• Aimed to standardize work conditions and improve production efficiency.

Taylor’s Principles of Scientific Management

• Develop a scientific principle for each job element, replacing old methods.

• Select, train, and develop workers scientifically.

• Ensure cooperation to align work with scientific principles.

• Share work and responsibility evenly between management and employees.

Management Application of Taylor's Principles

• Put competent personnel in positions with suitable tools and instructions.

• Motivate workers with economic incentives through higher wages.

Quantitative Approach

• Utilizes quantitative techniques to enhance decision-making.

• Originated from military problem-solving techniques during World War II.

• Includes statistical methods, optimization models, computer simulations, and linear programming for resource allocation.

Behavioral Approach

• Focuses on Organizational Behavior (OB), studying people's actions at work.

• Modern management methods emphasize motivating, leading, and managing conflict based on OB.

• Early proponents included Robert Owen, Hugo Munsterberg, Mary Parker Follett, and Chester Barnard, who viewed people as the organization's key asset.

Contemporary Approach

• Early theories concentrated on internal organizational management.

• From the 1960s, attention expanded towards external environmental factors.

• Major perspectives include systems and contingency approaches.

Contingency Approach

• Emphasizes that organizations differ and must adapt management strategies to their unique circumstances.

• Encourages flexible management solutions based on specific situations.

Role of a Manager

• Responsible for coordinating and overseeing others' work to achieve organizational goals.

Essential Functions of Management

Planning

• Involves defining objectives, strategies to meet them, and resource allocation.

Organizing

• Arranging and structuring required activities to meet objectives.

Leading

• Involves working with and influencing individuals to achieve goals.

Controlling

• Monitoring performance and taking corrective actions to meet objectives.

Staffing

• Responsible for recruitment and development of human resources.

Directing

• Involves communicating with and motivating subordinates toward achieving organizational goals.

Mintzberg's Managerial Roles

• Studied actual managerial activities, identifying specific roles managers undertake.

Interpersonal Roles

• Engage with people in and outside the organization, fulfilling ceremonial and symbolic duties.

Informational Roles

• Involve gathering and disseminating information within the organization.

Decisional Roles

• Involve making choices and decisions impacting the organization.

Technical Skills

• Job-specific knowledge and techniques necessary for executing work tasks, essential for first-line managers.

Human Skills

• The ability to effectively work with individuals and teams, crucial at all management levels for communication, motivation, and team cohesion.

Conceptual Skills

• The ability to think abstractly and visualize the organization holistically, most important for top managers.

Ethics

• A code of moral principles governing right and wrong conduct.

Ethical Behavior

• Actions deemed good or right according to a governing moral code, centered on values.

Code of Ethics — Cluster 1

1. Be a dependable organizational citizen.

2. Demonstrate courtesy, respect, honesty, and fairness.

3. Prohibit illegal drugs at work.

4. Manage personal finances responsibly.

5. Exhibit punctuality and good attendance.

6. Follow supervisors' directives.

7. Avoid abusive language.

8. Dress in appropriate business attire.

9. Firearms are prohibited on premises.

Code of Ethics — Cluster 2

1. Avoid any unlawful or improper behavior harming the organization.

Code of Ethics — Cluster 3

1. Ensure truthful advertising and high-quality products.

Ethical Dilemmas

1. Discrimination errors in promotion due to irrelevant criteria.

2. Sexual harassment complaints regarding inappropriate behavior.

3. Conflicts of interest tied to unethical decision-making for personal gain.

4. Breaching customer trust by sharing sensitive information.

5. Misuse of organizational resources for personal interests.

Corporate Social Responsibility (CSR)

• Management concept integrating social and environmental concerns into business operations.

• Aims for a balance of economic, environmental, and social imperatives.

Green Management

• Focuses on the organization's impact on the environment in management practices.

Planning

• Process of defining goals, establishing strategies, and developing plans for coordination.

Importance of Planning

1. Provides direction.

2. Reduces uncertainty.

3. Minimizes waste and redundancy.

4. Establishes control goals.

Benefits of Planning

1. Enhances focus and flexibility.

2. Promotes action orientation.

3. Improves coordination and control.

Goals vs. Objectives

Goals

• General statements about desired outcomes that allow for different interpretations.

Objectives

• Specific, measurable achievements with clear criteria for assessment.

Strategic vs Operational Planning

Strategic

• Long-term plans typically covering five years.

Tactical

• Short-term plans (one year or less) designed to achieve strategic goals.

Operational

• Day-to-day plans controlled through regular reporting.

Organizing

• Arranging resources and personnel to work toward accomplishing goals.

Organizational Structure

• Framework of tasks, workflows, and communication channels integrating individuals and groups.

Organization Chart Definitions

1. Shows task divisions and responsibilities.

2. Illustrates supervisory relationships.

3. Displays formal communication lines.

Departmentalization

• Grouping of people and jobs into work units.

Types of Organizational Structures

Simple Structure

• Low departmentalization, centralized authority, few formal rules.

Functional Structure

• Groups together individuals performing similar tasks.

Matrix Structure

• Blends functional and divisional approaches focusing on project teams.

Divisional Structure

• Groups based on products, geography, customers, or processes.

Leadership Definition

• The art of motivating individuals toward a common goal.

Classic Leadership Styles

• Autocratic Style: Command-and-control approach.

• Laissez-faire Style: “Do your best; don’t trouble me.”

• Democratic Style: Balances tasks and people.

Leadership Comparison

• Democratic vs. Autocratic vs. Laissez-Faire: Decision-making sources differ; democratic incorporates team input, while autocratic relies solely on leaders.

Strategic Leadership Styles

Transformational Leadership

• Motivates innovative thinking and strategy in employees.

Situational Leadership

• Adapts leadership styles based on circumstances.

Leadership Development Tips

1. Lead by example.

2. Make decisions decisively.

3. Foster honesty and openness.

4. Keep focus on teams.

5. Maintain availability for subordinates.

6. Set clear, achievable goals.

7. Create effective solutions collaboratively.

8. Engage with team members.

9. Encourage personal and professional growth.

10. Foster innovation and adaptability in workplace culture.