ESSENTIALS OF MANAGEMENT: An International Perspective

Sixth Edition Weihrich and Koontz

Chapter 1. Management: Science, Theory, and Practice

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Chapt. 1. Management: . Science, Theory, Practice

After studying this chapter, you should understand

1. The nature and purpose of management. 2. That management applies to all kinds of organizations and to managers at all organizational levels. 3. That the aim of all managers is to create a "surplus" 4. That the nature of excellent and admired companies and their characteristics. 5 The trends in information technology and globalization. 6. The concepts of productivity, effectiveness, and efficiency. 7. That management as practice is an art in which the underlying theory and science are applied in light of situations. 8. The evolution of management and some recent contributions to management thought.

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Definition of Management: Its Nature and Purpose

Management is the process of
designing and maintaining an environment in which individuals, working together in groups and efficiently accomplish selected aims.

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The Functions of Management

The five managerial functions around which managerial knowledge are organized are:
planning, organizing, staffing, leading, and controlling

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Managerial Functions at Different Organizational Levels

No basic distinction is made between managers, executives, administrators, and supervisors All managers carry out managerial functions. However, the time spent for each function may differ

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Time Spent in Carrying Out Managerial Functions

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. Managerial Skills and the Organizational Hierarchy

The four skills for administrators are: technical, human, conceptual, and design skills

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The Goals of All Managers and Organizations

The aim of all managers should be to create a surplus.
Thus, managers must establish an environment in which people can accomplish group goals with the least amount of time, money, materials, and personal dissatisfaction

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Characteristics of Excellent Companies (Peters & Waterman)

These firms * Were oriented toward action * Learned about the needs of their customers * Promoted managerial autonomy and entrepreneurship * Achieved productivity by paying close attention to the needs of their people * Were driven by a company philosophy often based on the values of their leaders * Focused on the business they knew best * Had a simple organization structure with a lean staff * Were centralized as well as decentralized, depending on appropriateness

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Excellent Companies Adapt to Changes in the 21st Century

To be successful in the 21st Century, companies must take advantage of the new information technology - especially the Internet - and globalization M-Commerce is mobile or wireless commerce

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Definition of Productivity
Productivity is the output-input ratio within a time period with due consideration for quality

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Definitions of Effectiveness and Efficiency

Productivity implies effectiveness and efficiency in individual and organizational performance Effectiveness is the achievement of objectives Efficiency is the achievement of the ends with the least amount of resources (time, money, etc.)
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Managing: Science or Art?

Managing as practice is an art; the organized knowledge underlying the practice may be referred to as a science

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The Evolution of Management Thought & Patterns of Management Analysis

Frederick Taylor and Scientific Management Fayol, the Father of Modern Operational Management Theory Elton Mayo and F. Roethlisberger and the Hawthorne Studies Recent Contributors to Management Thought

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Taylor's Principles of Scientific Management

1. Replacing rules of thumb with science (organized knowledge) 2. Obtaining harmony in group action, rather than discord 3. Achieving cooperation of human beings, rather than chaotic individualism 4. Working for maximum output, rather than restricted output 5. Developing all workers to the fullest extent possible for their own and their company's highest prosperity

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Fayol, the Father of Modern OperationalManagement Theory

Authority and responsibility. authority is a combination of officialfactors and personal factors Unity of Command. Employees should receive orders from one superior only Scalar Chain. A "chain of superiors" from the highest to the lowest ranks should be shortcircuited when to follow it scrupulously would be detrimental Esprit de Corps. This is the principle that "in union there is strength"
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Elton Mayo and F. Roethlisberger and the Hawthorne Studies.

In general, that the improvement in productivity was due to such social factors as morale, satisfactory interrelationships between members of a work group (a "sense of belonging"), and effective management--a kind of managing that would understand human behavior, especially group behavior, and serve it through such interpersonal skills as motivating, counseling, leading, and communicating
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Recent Contributors to Management Thought

Peter F. Drucker Keith Davis Edwards Deming Joseph M. Juran Peter Laurence William Ouchi Thomas Peters and Robert Waterman
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PATTERNS OF MANAGEMENT ANALYSIS: A MANAGEMENT THEORY JUNGLE? (1) the empirical, or case, approach, (2) the managerial roles approach, (3) the contingency, or situational, approach, (4) the mathematical, or "management science," approach, (5) the decision theory approach, (6) the reengineering approach, (7) the systems approach,
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PATTERNS OF MANAGEMENT ANALYSIS: -- continued (8) the sociotechnical systems approach, (9) the cooperative social systems approach, (10) the group behavior approach, (11) the interpersonal behavior approach, (12) McKinsey's 7S framework, (13) the total quality management approach, (14) the management process, or operational, approach.
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The Managerial Roles Approach (Mintzberg)

3 Interpersonal roles 3 Informational roles 4 Decision roles

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The Management Process, or Operational, Approach

This approach draws together the pertinent knowledge of management by relating it to the managerial job--what managers do It tries to integrate the concepts, principles, and techniques that underlie the task of managing
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A Basic Input-Output Model

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The Five Managerial Functions

Planning Organizing Staffing Leading Controlling

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Definition of Planning
Planning involves selecting missions and objectives and the actions to achieve them; it requires decision making

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Definition of Organizing
Organizing involves establishing an intentional structure of roles for people to fill in an organization

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Definition of Staffing
Staffing involves filling, and keeping filled, the positions in the organization structure

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Definition of Leading
Leading is influencing people so that they will contribute to organization and group goals

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Definition of Controlling
Controlling is measuring and correcting individual and organizational performance to ensure that events conform to plans

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The Systems Model of Management and This Book

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