Management

Course content
References
Assessment and evaluation

Course content

Management and managers

Organizing
Decision-making
Leading Communication, Information, Motivation
Management methods, tools and techniques
Strategic planning and building competitive advantage
Organizational culture and team management

References

Management - Richard L Daft (1) 658DAFm

Management Stephen P Robbins (4) 658 ROB
Management: people, performance, change Luiz R Gomez-Mejia
(1) 658GOM
Gareth R. Jones, Jennifer M. George - Essentials of Contemporary
Management, 2nd edition, McGraw-Hill International edition, 2007

Assessment and evaluation

Final examination 70% :
Multiple choice
Theoretical questions
Case study
Seminar 30% :
Test 15%
Attendance and active participation 5%
Presentation of group project 10%

Group project requirements

Project structure:
1.

Organizational environment analysis; the main opportunities and threats for a new
business in the selected market/industry

2.

Decision-making - select a few alternatives for starting up a business and use a

decision making method to chose the most appropriate one considering the
opportunities and threats already identified

3.

Build an organizational structure for your business

Presentation: 20 min, with any type of visual support (blackboard, flipchart,

PowerPoint)
Evaluation criteria:

Meeting the requirements (Group)

Business viability (G)

Visual support (G)

Presentation clarity and relevance (Individual)

Proper answering to questions (I)

Groups 4-6 members

MANAGEMENT BASICS
1.

What is Management?

2.

Organizational Performance

3.

Management History And Evolution

What is Management?

The planning, organizing, leading, and controlling

of human and other resources to achieve
organizational goals effectively and efficiently
Organizations collections of people who work
together and coordinate their actions to achieve a wide
variety of goals

What is Management?
Resources include
People
Skills
Know-how and experience
Machinery
Raw materials
Computers and IT
Patents
Financial capital
Loyal customers

Why study management?

1.

2.
3.
4.

The more efficient and effective use of scarce resources

that organizations make of those resources, the greater
the relative well-being and prosperity of people in that
society
Helps people deal with their bosses and coworkers
Opens a path to a well-paying job and a satisfying
career
Make personal plans and decisions, set goals, prioritize
what you will do, and get others to do things for you

Organizational Performance
A measure of how efficiently and effectively managers use
available resources to satisfy customers and achieve
organizational goals

Effectiveness
Goals

Resources

Efficiency

Results

Organizational Performance
Efficiency
A measure of how well or how productively
resources are used to achieve a goal
Effectiveness
A measure of the appropriateness of the goals an
organization is pursuing and the degree to which
they are achieved.

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Management History and Evolution

1.

2.

3.
4.

Classical Theory
Scientific Theory,
Administrative Theory,
Bureaucracy
Behavioral Theory
Human relations,
Hierarchy of needs,
Theory X and Theory Y
Management Science
Integrative Theories
Systems Theory,
Sociotechnical Theory,
Contingency

Evolution of Management Thought

1. Classical Theory

Focus on the job and management functions to

determine the best way to manage in all organizations.
Scientific Management - Best way to maximize job
performance
Fredrick Winslow Taylor
Father of Scientific Management
Frank and Lillian Gilbreth
Work efficiency
Henry Gantt
Work scheduling

Taylors principles to increase efficiency

1.

Study the way workers perform their tasks, gather all the
informal job knowledge that workers posses, and
experiment with ways of improving how tasks are
performed

2.

Codify the new methods of performing tasks into

written rules and standard operating procedures

3.

Carefully select workers who possess skills and abilities

that match the needs of the task, and train them to
perform the task according to the established rules and
procedures

4.

Establish a fair or acceptable level of performance for a

task, and then develop a pay system that provides a
reward for performance above the acceptable level

Classical Theory

Administrative Theory
Henri Fayol
Father of Modern Management
Principles and functions of management
Max Weber
Bureaucracy concept
Chester Barnard
Authority and power in organizations
Mary Parker Follett
Worker participation, conflict resolution, and
shared goals

Bureaucracy (Weber)

A more formalized, rigid structure of organization

A formal structure based on rules, formal legitimate

authority and competence

A supervisor's power should be based on an individual's

position within the organization, his or her level of
professional competence and the supervisor's
adherence to explicit rules and regulations

Bureaucracy (Weber)

Bureaucracy (Weber)
Principles:
1.

Hierarchical organization

2.

Delineated lines of authority in a fixed area of activity

3.

Action taken on the basis of and recorded in written rules

4.

Bureaucratic officials need expert training

5.

Rules are implemented by neutral officials

6.

Career advancement depends on technical qualifications

judged by organization, not individuals

2. Behavioral Theory

Focus on people to determine the best way to manage in all

organizations.
Human Relations Movement (later, the Behavioral
Science Approach)
Elton Mayo
Hawthorne studies
Abraham Maslow
Hierarchy of needs theory
Douglas McGregor
Theory X and Theory Y

Maslows Hierarchy of Needs Theory

Maslows Hierarchy of Needs Theory

Physiological
living wage to purchase food and clothing
Safety
Free from danger - wages to procure shelter
Affiliation
Need to belong / social relationships with co-workers
Esteem
Sense of achievement and accomplishment
Compensation and reward
Self-Actualization
Job that allows growth and creativity

Theory X and Theory Y

Believe employees
1. Are lazy
2. Resist Change
3. Do not like responsibility
4. Need pay incentives or threats
5. Disloyal

Believe employees
1. Are motivated
2. Open to Change
3. Can handle responsibility
4. Prefer rewards over threats
5. Are loyal

3. Management Science

Focus on the use of mathematics to aid in problem

solving and decision making
Mathematical models are used in the areas of finance,
management information systems (MIS), and operations
management

4. Integrative Theories

Systems Theory
Focuses on viewing the organization as a whole
and as the interrelationship of its parts
(subsystems)
Sociotechnical Theory
Focuses on integrating people and technology
Contingency Theory
Focuses on determining the best management
approach for a given situation

Comparing Theories
Classical

Attempts to develop the best way to manage in all

organizations by focusing on the jobs and structure of the firm

Behavioral

Attempts to develop a single best way to manage in all

organizations by focusing on people and making them
productive.

Management
Science

Recommends using math (computers) to aid in problem

solving and decision making.

Systems
Theory

Manages by focusing on the organization as a whole and the

interrelationship of its departments, rather than on individual
parts.

Sociotechnical
Theory

Recommends focusing on the integration of people and

technology.

Contingency
Theory

Recommends using the theory or the combination of

theories that best meets the given situation.