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The Management Environment
Module 1
LIS 580: Spring 2006
Instructor- Michael Crandall
July 21, 2005 LIS580- Spring 2006 2
Roadmap
• Why do we care?
• What do managers do?
• Where did management come from?
• What kinds of management are there?
• What’s happening today?
July 21, 2005 LIS580- Spring 2006 3
Why Do We Care?
• “… modern society has become a society of organizations… In a society of organizations, managing becomes a social function and management the constitutive, the determining, the differential organ of society.”
Drucker, 1986
• In other words, you’re in it whether you like it or not, so better to understand how it works in order to use it to your advantage
July 21, 2005 LIS580- Spring 2006 4
Organization Defined
• Organization– A group of people with formally assigned
roles who work together to achieve the stated goals of the group.
– Characteristics:• Common purpose/goals• Organizational structure
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 5
Management Defined
• Manager– A person who plans, organizes, leads, and controls
the work of others so that the organization achieves its goals.
• Is responsible for contribution.• Gets things done through the efforts of other people.• Is skilled at the management process.
• Management Process– Refers to the manager’s four basic functions of
planning, organizing, leading, and controlling.
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 6
Mintzberg’s Managerial Roles
• Figurehead
• Leader
• Liaison
• Spokesperson
• Negotiator
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 7
The Manager as Innovator
• The Entrepreneurial Process– Getting employees to think of themselves as
entrepreneurs.
• The Competence-Building Process– Working hard to create an environment that lets
employees really take charge.
• The Renewal Process– Guarding against complacency by encouraging
employees to question why they do things as they do—and if they might do them differently.
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 8
Types of Managers
FIGURE 1–1
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 9
The Managerial Skills
• Technical Skills– The need to know how to plan, organize, lead, and
control.
• Interpersonal Skills– An understanding of human behavior and group
processes, and the feelings, attitudes, and motives of others, and ability to communicate clearly and persuasively.
• Conceptual Skills– Good judgment, creativity, and the ability to see
the “big picture” when confronted with information.G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 10
The Foundations Of Modern Management
• The Classical and Scientific School– Frederick Winslow Taylor and Scientific
Management1. The “one best way”
2. Scientific selection of personnel
3. Financial incentives
4. Functional foremanship
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 11
The Foundations Of Modern Management (cont’d)
• The Classical and Scientific School (cont’d)– Frank and Lillian Gilbreth and Motion Study
• Analyzed physical motion and work processes to improve worker efficiency.
– Henri Fayol and the Principles of Management• Defined the functions of management• Published “General and Industrial Management”• Advocated “chain of command”
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 12
The Foundations Of Modern Management (cont’d)
• The Classical and Scientific School (cont’d)– Max Weber and the Bureaucracy
• A well-defined hierarchy of authority• A clear division of work• A system of rules covering the rights and duties of
position incumbents• A system of procedures for dealing with the work
situation• Impersonality of interpersonal relationships• Selection for employment, and promotion based on
technical competence
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 13
The Foundations Of Modern Management (cont’d)
• The Behavioral School– The Hawthorne Studies
• Researchers found that it was the social situations of the workers, not just the working conditions, that influenced behavior at work.
– The Human Relations Movement• Emphasized that workers were not just “givens”
in the system. Workers have needs and desires that organizations have to accommodate.
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 14
Douglas McGregor: Theory X and Theory Y
• Theory X– Most people dislike work and responsibility
and prefer to be directed.– They are motivated not by the desire to do
a good job, but simply by financial incentives.
– Most people must be closely supervised, controlled, and coerced into achieving organizational objectives.
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 15
Douglas McGregor: Theory X and Theory Y (cont’d)
• Theory Y– People wanted to work hard.– People could enjoy work.– People could exercise substantial self-
control.– Managers could trust employees if
managers treated them right.
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 16
The Foundations Of Modern Management (cont’d)
• The Behavioral School (cont’d)– Rensis Likert and the Employee-Centered
Organization• Less effective organizations have a “job-
centered” focus: specialized jobs, emphasis on efficiency, and close supervision of workers.
• Effective “employee-centered” organizations build effective work groups with high performance goals.”
• Participation is an important approach employed by high-producing managers.
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 17
Bridging the Eras: The Administrative School
• Chester Barnard’s “Zone of Indifference”– A range of orders that a worker will willingly accept
without consciously questioning their legitimacy.• Managers have to provide sufficient inducements (and
not just financial ones) to make each employee’s zone of indifference wider.
• Herbert Simon and Managerial Influence– Use the classicists’ command and control
approach.• Foster employee self-control by providing better training,
encouraging participative leadership, and developing commitment and loyalty.
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 18
The Quantitative/Management Science School
• The Management Science Approach – Operations Research/ Management Science
• Seeks optimal solutions to management problems through research and the use of scientific analysis and tools.
– The Systems Approach• The view that an organization exists as a set of
interrelated subsystems that all contribute internally to the organization’s purpose and success while interacting with the organization’s external environment.
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 19
The Situational/Contingency School
• Contingency View of Management.– The organization and how its managers
should manage it are contingent on the company’s environment and on technology.
– Tom Burns and G. M. Stalker• Mechanistic organizations• Organic organizations
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 20
Kurtz, C. F.; Snowden, D. J. “The new dynamics of strategy: Sense-making in a complex and complicated world”. IBM Systems Management Journal. Volume 42, Number 3, 2003. http://www.research.ibm.com/journal/sj/423/kurtz.html
Multi-Ontology Sense Making
• David Snowden proposes that we look at the problem through multiple lenses
• Clearly more complex space than most management systems take into account
From Pollard, D. How to Save the World. March 24, 2005. http://blogs.salon.com/0002007/2005/03/24.html
July 21, 2005 LIS580- Spring 2006 21
Fundamental Changes Facing Managers
FIGURE 1–2
G.Dessler, 2003
July 21, 2005 LIS580- Spring 2006 22
Two Books to Read
• Reich, Robert B. The Work of Nations: Preparing Ourselves for 21st Century Capitalism. Vintage, 1992. http://www.amazon.com/exec/obidos/tg/detail/-/0679736158
• Friedman, Thomas L. The World Is Flat: A Brief History of the Twenty-first Century. Farrar, Straus and Giroux , 2005.
http://www.amazon.com/exec/obidos/tg/detail/-/0374292884