Prof. Roy Philip Systems Management

Night 1 Tuesday April 28, 2015

An Overview of Management

Prof. Roy Philip Systems Management

What is an Organization?

• Two or more persons engaged in a systematic effort to produce goods or services.

• Group of people intentionally organized to accomplish an overall, common goal or set of goals.

Prof. Roy Philip Systems Management

What is Management?

• The process of achieving organizational goals by engaging in the four major functions of planning, organizing, leading, and controlling.

• It characterizes the process of planning, leading, and directing all or part of an organization, through the deployment or manipulation of resources.

Prof. Roy Philip Systems Management

Four Functions of Management(1 of 2)

• Planning – the process of setting goals and deciding how best to achieve them.

• Organizing – the process of allocating and arranging human and nonhuman resources so that plans can be carried out successfully.

Prof. Roy Philip Systems Management

Four Functions of Management(2 of 2)

• Leading – the process of influencing others to engage in the work behaviors necessary to reach organizational goals.

• Controlling – the process of regulating organizational activities so that actual performance conforms to expected organizational standards and goals.

Prof. Roy Philip Systems Management

Work Agenda

WorkMethods

andRoles

Management Functions:PlanningOrganizingLeadingControlling

KnowledgeBase and Key

Management Skills

Performance(Goal Achievement)

Prof. Roy Philip Systems Management

Work Agenda

• A loosely connected set of tentative goals and tasks that a manager is attempting to accomplish.

• Influencing factors– Job demands– Job constraints– Job choices

Prof. Roy Philip Systems Management

Do you need Management Skills?

• In the new work environment:– Entrepreneurship– Downsizing and Delayering– Job enrichment and Empowerment– Self-Managed work teams– Hiring for the second job– Networking

Prof. Roy Philip Systems Management

The 16 Basic Skills Employees Need The 16 Basic Skills Employees Need (Figure 1(Figure 1--1)1)

• Knowing How to Learn

• Reading

• Writing

• Mathematics

• Listening

• Oral Communication

• Problem Solving

• Creative Thinking

• Self-Confidence

• Motivational Goal Setting

• Personal and Career Development

• Interpersonal Skills

• Negotiation

• Teamwork

• Organizational Effectiveness

• Leadership

Prof. Roy Philip Systems Management

Management Skills Needed for Success by Management Skills Needed for Success by Organizational Level (Figure 1Organizational Level (Figure 1--3)3)

Conceptual

Conceptual

Conceptual

Human

Human

Human

Technical

Technical

Technical

Top-Level Managers

Middle-LevelManagers

First-Level Managers

Prof. Roy Philip Systems Management

Effectiveness vs. Efficiency

• Effectiveness – the ability to choose appropriate goals and achieve them.

• Efficiency – the ability to make the best use of available resources in the process of achieving goals.

Prof. Roy Philip Systems Management

Effectiveness vs. Efficiency

• Effectiveness – Ability to achieve stated goals or objectives, judged in terms of both output and impact.Efficiency – producing the desired result with the least waste

Prof. Roy Philip Systems Management

The Creative Organization(1 of 2)

• Idea Champion – is a member of the organization who is assigned responsibility for the successful implementation of a change.

• Sponsor – a middle manager who recognizes the organizational significance of an idea, helps obtain the necessary funding for development of the innovation, and facilitates its actual implementation.

Prof. Roy Philip Systems Management

The Creative Organization(2 of 2)

• Orchestrator – a high-level manager who articulates the need for innovation, provides funding for innovating activities, creates incentives for middle managers to sponsor new ideas, and protects idea people.

Prof. Roy Philip Systems Management

What makes an Effective Manager?

Managerial EducationManagerial Experience

Is Management an Art or a Science?

Prof. Roy Philip Systems Management

The Historical Development of Management

Prof. Roy Philip Systems Management

Historical Developments of Management

• Sumerian traders from Mesopotamia

• Egyptian Pyramid builders• An off-shoot of Economics in

the 19th century (Adam Smith)• Innovation (Eli Whitney and

James Watt)

Prof. Roy Philip Systems Management

The Birth of Management(1 of 6)

• Preclassical Contributors– Robert Owen (Entrepreneur-Human

Resources) – Charles Babbage (Mathematician-Work

specialization and profit-sharing plan)– Henry R. Towne (Mechanical Engineer-

Management as a science and development of management principles)

Prof. Roy Philip Systems Management

The Birth of Management(2 of 6)

• Classical Viewpoint– Scientific Management

• Fredrick Winslow Taylor (Engineer-Science of management, Time-and-motion study)

• Frank and Lilian Gilbreth (Bricklayer and Psychologist-Psychology in the workplace)

• Henry L. Gantt (Gantt chart for decision making)

– Bureaucratic Management• Max Weber (Consultant, Professor, and

Author-Bureaucracy)

Prof. Roy Philip Systems Management

The Birth of Management(3 of 6)

– Administrative Management• Henri Fayol (Mining Engineer-

Functional approach to management)– Coordination vs. Cooperation

• Chester Bernard (Statistician-Authority)

– Authority, behavior, comunication

Prof. Roy Philip Systems Management

The Birth of Management(4 of 6)

• Behavioral Viewpoint– Early Behaviorists

• Hugo Munsterberg (Medicine and Psychology-Industrial Psychology)

• Mary Parker Follet (Political Science-Significance of Groups and their integration)

– Hawthorne Studies– Human Relations Movement

• Abraham Maslow (Psychologist-Theory of motivation)

• Douglas McGregor (Industrial Manager-Assumptions managers make about workers)

– Behavioral Science Approach

Prof. Roy Philip Systems Management

Prof. Roy Philip Systems Management

The Birth of Management(5 of 6)

• Quantitative Management Viewpoint– Management Science-Decision

making through the use of sophisticated mathematical models and statistical methods.

– Operations Management-Managing the production and delivery of an organization’s products and services.

– Management Information Systems-Use of computer-based information systems for management.

Prof. Roy Philip Systems Management

The Birth of Management(6 of 6)

• Contemporary Viewpoints– Systems Theory-Organizations

can be visualized as systems– Contingency Theory-

Managerial actions is situation specific. (Joan Woodward-Sociologist)

– Emerging Views• Japanese Management• Theory Z

Prof. Roy Philip Systems Management

Differences Between School and Differences Between School and BusinessBusinessSchool Business

AchievingSuccess

Individual Team work

Critical Ability Tests Relationships

Structure Quantified Subjective

Graduate's Role Custom er Em ployee

Perform ance Objective Judgm ents

Com m unication W ritten Verbal

Prestige Senior Trainee

Prof. Roy Philip Systems Management

The Knowing-Doing Gap(1 of 2)

• The Problems:– Emphasis on technology and transfer of

codified information– Knowledge as a tangible thing– Can’t easily store or transfer tacit

knowledge– Focus on practices, not philosophy

Prof. Roy Philip Systems Management

The Knowing-Doing Gap(2 of 2)

• The Solutions:– Why before how– Knowing comes from doing and

teaching others how– There is no doing without mistakes– Drive out fear– Fight the competition, not each other