Management

Gomez-Mejia & Balkin

Chapter 1
Overview
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 Toyota

• 2009 – indisputable winner in U.S.

automobile industry amidst bankruptcies
and closures at the American auto
manufacturers
• 2010 – widespread negative media
exposure, filings of lawsuits,
congressional hearings, and large recalls
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Successful Organizations

• Efficient
– Makes the best possible use of people,
money, physical plant, and technology

• Effective
– Goals are met which sustain an
organization’s competitive advantage

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21 Century Issues
st

• Management of Change

• Customer Service

• Business Ethics

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 Outsourcing is Transforming
Industries
• Proctor and Gamble has outsourced IT
infrastructure and human resources
• Penske Truck has outsourced retrieval of
permits for trucks to India
• American hospitals use radiologists in
India to interpret CT scans and x-rays
and then send reports back to U.S.
hospitals
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Three Levels of Managers

• Strategic Managers

• Tactical Managers

• Operational Managers

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 Management is Everyone’s
Business Features

• How managers apply sound principles

• How empowered employees apply

sound principles

• Implications of these principles for your

individual success in an organization
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 Teams

• Cross-functional teams – composed of

individuals from different parts of the
organization

• Cross-disciplinary teams – composed of

members who have diverse
backgrounds
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Four Management Functions

• Planning and strategizing

• Organizing

• Leading

• Controlling
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 Planning and Strategizing

• Setting future objectives

• Mapping out the activities necessary to

achieve those objectives

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 Organizing

• Specifying how the firm’s human,

financial, physical, informational, and
technical resources are to be arranged
and coordinated

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 Leading

• Energizing people to contribute their best

individually and in cooperation with other
people

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 Controlling

• Measuring performance, comparing it to

objectives, implementing necessary
changes, and monitoring progress

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Managerial Roles

• Interpersonal roles

• Information roles

• Decisional roles

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Interpersonal Roles

• Figurehead

• Leader

• Liaison

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Information Roles

• Monitor

• Disseminator

• Spokesperson

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Decisional Roles

• Entrepreneur

• Disturbance handler

• Resource allocator

• Negotiator
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The Evolution of Management
Thought

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Early Management Thought

• The Art of War – Sun Tzu

• The Prince – Machiavelli

• The Wealth of Nations – Adam Smith

– Division of labor

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The Operational Perspective

• Scientific management
– Study each part of task for best method
– Carefully select and train workers
– Cooperate fully with workers
– Divide work and responsibility between
workers and management

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 Quantitative Management

• Break-even analysis
• Basic economic order quantity (EOQ)
• Materials requirements planning (MRP)
• Quality management

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Total Quality Management

• Focus on the customer

• Employee involvement

• Continuous improvement

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Bureaucratic Management

• Specialization of labor
• Formal rules and procedures
• Impersonality
• Well-defined hierarchy
• Career advancement based on merit

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Administrative Management

• Unity of command

• Unity of direction

• Equity

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Behavioral Perspective

• Mary Parker Follett

• The Hawthorne Studies
• Human relations approach
• Employee motivation (Maslow)
• Leadership style

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Contemporary Management
Perspectives

• The Systems Approach

– Open and closed systems
– Subsystems
– Synergy
– Equifinality

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The Systems Approach

Transformation
Inputs Outputs
Process

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 Contingency Theory

• Decentralized organization structure

when environment is turbulent

• Centralized organization structure when

environment is stable and predictable

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Emerging Perspectives and
Issues

• The Modular Organization

– outsource all non-crucial functions

• The Intangible Organization

– investments in know-how and product
design instead of plants and equipment

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 Your Management Career

• General or Operations Manager

• Accounting or Financial Manager
• Human Resources Manager
• Marketing or Communications Manager
• Entrepreneur

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 Learning Objective 1

• Understand the challenges organizations

face in the new millennium
– Be both efficient and effective
– Deal with contemporary management
issues
– Be capable of managing new forms of
organizations

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 Learning Objective 2

• Specify the functions and roles of

successful managers

– Managerial functions
• Planning, organizing, leading, and controlling

– Managerial roles
• Interpersonal, informational, and decision-maker
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 Learning Objective 3

• Explain the origins of management as an

academic discipline
– Scientific management

– Quantitative management

– Quality management

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 Learning Objective 4

• Describe the bureaucratic and

administrative approaches to the study
of management
– Bureaucratic – (Weber) governed by a set
of impersonal rules and policies
– Administrative – (Fayol) apply general
principles of management to any situation or
circumstance
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 Learning Objective 5

• Explain the behavioral perspective in

analyzing management issues
– Focuses on understanding how to manage
human factors to improve workforce
productivity (Follett and the Hawthorne
Studies)
– Human Relations Approach – emphasized
work relationships as the key to productivity
(Maslow and McGregor)
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 Learning Objective 6

• Interpret recent approaches to the study

of management
– Systems theory, contingency theory and
learning organization – futile to search for
the “one best way” to manage
– Modular organization and intangible
organization are emerging management
perspectives
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Copyright Notice

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