MN 5201 Organisational Behaviour & Management

Lecture 2: Introduction to Management

Dr. Dushan Jayawickrama

MBA in Management of Technology/ Entrepreneurship

University of Moratuwa
Session Outline
 Introduction
 Define Management
 Efficiency vs. Effectiveness
 Management Functions
 Management Skills
 Manager Roles
What do you mean by
Management?
Define Management
The art of getting things done through people.
-Mary Parker Follett
Define Management

Management is the attainment of

organizational goals in an effective and
efficient manner through planning,
organizing, leading and controlling
organizational resources.
Why Management is Important?
Management in Ancient Times
Importance of Management to You?
Efficiency vs. Effectiveness

Efficiency
The comparison of what is actually produced or performed
with what can be achieved with
thesame consumption of resources. Doing things right.

Effectiveness
The degree to which objectives are achieved and the extent to
which targeted problems are solved. Doing the right thing.
Principle Combinations of Effectiveness & Efficiency

Goal Accomplishment

Effective Ineffective

Efficient Thrive Die Slowly

Resource Use

Inefficient Survive Die Quickly

What Do Managers Do
1. Set
Objectives

5. Develop
2. Organize
People

3. Motivate
and
4. Measure
Communicat
e
The Four Management Functions
Planning

Organizing

Leading

Controlling
 The Process of Management
Management Functions

Planning

Resources Performance
Human Attain Goals
Financial Controlling Organizing Products
Raw Services
materials Efficiency
Technological Effectiveness
Information

Leading
Management Levels
Top
Man
ager
s
Middle Managers

First-Line Managers
Management Skills

Conceptual Skills
The ability to
analyze and
diagnose a
situation and
find the cause
and effect.
Management Skills (Cont.)

Human Skills
The manager’s ability to work with and through
other people and to work effectively as a group
member.
Management Skills (Cont.)

Technical Skills
Understanding of and proficiency in the
performance of specific tasks.
Skill Type Needed by Manager Level

Top Managers

Middle
Managers

First-Line
Managers
Common Management Failures
1. Ineffective communication skills and practices
2. Poor work relationships/ interpersonal skills
3. Person – job mismatch
4. Failure to clarify direction or performance expectations
5. Failure to adapt and break old habits
6. Breakdown of delegation and empowerment
7. Lack of personal integrity and trustworthiness
8. Inability to develop cooperation and team work
9. Inability to lead/ motivate others
10. Poor planning practices
Manager Roles

A role is a set of expectations for a manager’s

behaviour.
Categories of Roles
1. Informational Roles
2. Interpersonal Roles
3. Decisional Roles
Informational Roles

Associated with the tasks needed to obtain and

transmit information for management of the
organization
Role Activity
Monitor Seek and receive information, scan periodicals
and reports, maintain personal contacts
Disseminator Forward information to other organization
members, send memos and reports, make phone
calls
Spokesperson Transmit information to outsiders through
speeches, reports, memos
 Interpersonal Roles

Interpersonal roles pertain to relationships with others and

are related to the human skills described earlier.

Role Activity
Figurehead Perform ceremonial and symbolic duties such as
greeting visitors, signing legal documents
Leader Direct and motivate subordinates; train, counsel
and communicate with subordinates
Liaison Maintain information links both inside and
outside organization; use e-mail, phone calls,
meetings
 Decisional Roles
Decisional roles pertain to those events about which the
manager must make a choice and take action.
Role Activity
Entrepreneur Initiate improvement projects; identify new
ideas, delegate idea responsibility to others
Disturbance Take corrective actions during disputes or crises;
Handler resolve conflicts among subordinates; adapt to
environmental crises
Resource Decide who gets resources; schedule, budget, set
Allocator priorities
Negotiator Represent department during negotiation of
union contracts, sales, purchases, budgets;
represent departmental interests
 Management Perspectives over Time
Open (Collaborative)
Innovation

The Technology-Driven Workplace

Total Quality Management

Contingency View

Systems Thinking

Management Science
Perspective
Humanistic Perspective

Classical
Perspective
1880 1890 1930 1940 1950 1960 1970 1980 1990 1990 2000 2010 2020
Classical Perspective
The early study of management as we know it today
began with what is now called the classical perspective.

The classical perspective on management emerged

during the nineteenth and early twentieth centuries.

The factory system that began to appear in the 1800s

posed challenges that earlier organizations had not
encountered.

These new problems and the development of large,

complex organizations demanded a new approach to
coordination and control and as a result “the salaried
manager” was born.
Classical Perspective

Scientific Management

Bureaucratic Organizations

Administrative Principles
Scientific Management

Emphasizes scientifically
determined jobs and management
practices as the way to improve
efficiency and labour productivity.

The systematic study of the

relationships between people and
tasks to redesign the work for
higher efficiency.

Proposed by Frederick Taylor (1856 -

1915).
Cont.
“Workers could be retooled like machines, their physical and mental gears
recalibrated for better productivity”
 Job Specialization
The process of focusing one's
occupational concentration on a specific area
of expertise.

Division of Labour
Dividing a particular job into different task.
Narrow specialization of tasks within a production
process so that each worker can become
a specialist in doing one thing, especially on
an assembly line.
Cont.
Approach of Scientific Management

Developed standard method for performing each job

Selected workers with appropriate abilities for each

job

Trained workers in standard methods

Supported workers by planning their work and

eliminating interruptions

Provided wage incentives to workers for increased

output
Cont.
Scientific Management

CONTRIBUTIONS CRITICISMS
Demonstrated the importance of Did not appreciate the social context
compensation for performance of work and higher needs of workers

Initiated the careful study of tasks Did not acknowledge variance

and jobs among individuals

Demonstrated the importance of Tended to regard workers as

personnel selection and training uninformed and ignored their ideas
and suggestions
Bureaucratic Organizations

A systematic approach
developed in Europe that
looked at the organization as a
whole is the bureaucratic
organizations approach.
Max Webber (1864 - 1920)
introduced most of the
concepts on Bureaucratic
Organizations.
Characteristics of Weberian Bureaucracy

Division of labour

Selection and
promotion based on Hierarchy of
technical authority
qualifications

The Ideal
Bureaucracy

Subject to rules and

Written rules procedures

Management separate
from the ownership of
the organization
 Key Points of Bureaucracy
Authority is the power to hold people accountable for
their actions.

Positions in the firm should be held based on

performance not social contacts.

Position duties are clearly identified. People should

know what is expected from them.

Lines of authority should be clearly identified. Workers

know who reports to who.

Rules, Standard Operating Procedures (SOPs), & Norms

Administrative Principles
Administrative principles
approach focused on the
total organization.

Henry Fayol (1841 - 1925)

was the major contributor to
this approach.

Fayol introduced 14 general

principles of management.
 Fayol’s Principles
1. Division of Labor: Allows for job specialization. Fayol noted firms can have
too much specialization leading to poor quality and worker involvement.

2. Authority and Responsibility: Fayol included both formal and informal

authority resulting from special expertise.

3. Unity of Command: Employees should have only one boss.

4. Line of Authority: A clear chain from top to bottom of the firm.

5. Centralization: The degree to which authority rests at the very top.

6.Unity of Direction: One plan of action to guide the organization.

7.Equity: Treat all employees fairly in justice and respect.

8.Order: Each employee is put where they have the most value.

9. Initiative: Encourage innovation.

10.Discipline: Obedient, applied, respectful employees needed.

11.Remuneration of Personnel: The payment system contributes to success.

12.Stability of Tenure: Long-term employment is important.

13.General Interest over Individual Interest: The organization takes precedence

over the individual.

14.Esprit de Corps: Share enthusiasm or devotion to the organization.

 Humanistic Perspective

The humanistic perspective on management emphasized the importance of

understanding human behaviours, needs and attitudes in the workplace as
well as social interactions and group processes.

Elton Mayo and his associates, Abraham Maslow, and Douglas McGregor are
the leading contributors to this thought.
They incorporated the insights of social science
disciplines such as sociology, psychology, and
anthropology to the work organizations and thereby to
the field of management.

This approach criticized the Scientific Management

theory which thought that an organization is a mere
collection of works, standards, hierarchies, supervisors,
and rules and regulations.
There are three primary subfields based on the humanistic perspective;

Human Relations Movement

Human Resources Perspective

Behavioural Sciences Approach

Assembly test room of the Western Electric Hawthorne

Professor Elton Mayo was one of

the researchers involved in these
studies

From these studies, it was identified

that human relations as the best
approach for increasing productivity.
 Abraham Maslow (1908 - 1970), who was a
practicing psychologist, suggested a hierarchy of
needs. Started with physiological needs and then
safety, belongingness, esteem and finally self-
actualization needs.

Douglas McGregor (1906 - 1964) based on his

experiences as a manager, consultant and his
training as a psychologist and the work of Maslow
he formulated his Theory X and Theory Y.
Management Science
World War II caused many management changes. The
massive and complicated problems associated with
modern global warfare presented managerial decision
makers with the need for more sophisticated tools than
ever before. The quantitative perspective provided a
way to address those problems.

This view is distinguished for its application of

mathematics, statistics and other quantitative
techniques to management decision making and
problem solving.
Subsets of Management Science
Operations Research

Operations Management

Information Technology
Recent Historical Trends
Systems Thinking

Contingency View

Total Quality Management

 Systems Thinking
Systems thinking is the ability to see both the distinct elements of a
system or situation and the complex and changing interaction among
those elements.

A system is a set of interrelated parts that function as a whole to

achieve a common purpose.

Subsystems are parts of a system and changes in one part of the system
affect other parts.
Contingency View

The contingency view tells that what works in one setting might
not work in another. Contingency means that one thing depends
on other things and a manager’s response to a situation depends
on identifying key contingencies in an organizational situation.
Total Quality Management (TQM)
Focuses on managing the total organization to deliver better quality to
customers.

Four Elements of Quality Management

Employee involvement
Focus on the customer
Benchmarking
Continuous improvement
Innovative Management Thinking for a
Changing World
Contemporary Management Tools
Managing the Technology-Driven Workplace
Scientific Management in Commody

MBA IN MANAGEMENT OF TECHNOLOGY (MOT) _ MN 5201

ORGANISATIONAL BEHAVIOUR & MANAGEMENT
52