MANAGEMENT

RICHARD L. DAFT

Twelfth Edition, 2016

 Contents

Part 1 Introduction to Management

I. The World of Innovative Management

II. The evolution of Management Thinking

 Chapter 1. The World Innovative Management

 Management Competencies for Today’s World

 The Basic Functions of Management
 Organizational Performance
 Management Skills
 Management Types
 The Roles of Manager in an Organization
 Managing in Small Business and Non-profit
Organization
 ARE YOU READY TO BE A MANAGER?

 Today’s environment is diverse, dynamic and ever-

changing
 Organizations need managers who can build networks and
pull people together
• Managers must motivate and coordinate others
• Managers are dependent upon subordinates
• Managers need to evaluate the work of others
Management Competencies for Today’s World
 WHY INNOVATION MATTERS
 To gain or keep a competitive advantages,
• Managers have renewed their emphasis on innovation
and focused on controlling costs towards investing in
the future
 Innovations in products, services, management system,
production process, corporate values and
 other aspects of the organization - what keeps companies
growing, changing and extending global markets
UNIVERSAL NEED FOR MANAGEMENT
 Definition of Management
 The art of getting things done by people ((Mary Parker Follett)

 Management is the attainment of organizational goals in an

effective and efficient manner through planning, organizing,

leading/ directing, and controlling organizational resources (Richard

L.Daft)

 Give direction to their organization, provide leadership, and decide

how to use organizational resources to accomplish goals

(Peter Drucker)
 MANAGEMENT COMPETENCIES
 Managers get thing done by
 coordinating and
 motivating other people
 Management is often a different experience
 from what people expect
 Traditional management competencies could include;
 a command and
 control leadership style,
 a focus on individual task, and
 standardizing procedures and stability
 MANAGEMENT COMPETENCIES

 Turbulent environmental forces have caused a significant

shift in the competencies required for effective managers
 New management competencies include
• the ability to be an enabler rather than a controller,
• using an empowering leadership style,
• encouraging collaboration,
• leading teams and
• mobilizing for change and innovation
 THE PROCESS OF MANAGEMENT

Planning

Select goals and

ways to attain
them Performance
Resources
•Human •Attain goals
Controlling Organizing •Products
•Financial
•Raw Materials Monitor activities and •Services
Assign responsibility
make corrections
•Technological for task •Efficiency
accomplishment
•Information •Effectiveness

Leading
Use influence to
motivate employees
 Managers perform a wide variety of activities within four primary
management functions
 Planning - defining goals for future performance and
- how to attain them.
 Organizing - assigning tasks,
- grouping tasks into departments, and
- allocating resources.
 Leading - using influence to motivate employees
- to achieve the organization’s goals.
 Controlling - monitoring employees’ activities,
- keeping the organization on track toward meeting its goals
- and making corrections as necessary
 ORGANIZATIONAL PERFORMANCE

 An organization is
• a group of individuals
• who work together
• toward common goals

 Organization is collections of people

• working together
• in a coordinated and structured fashion
• to achieve one or more goals
 TYPES OF ORGANIZATION

 Profit-seeking organizations
 Non-profit seeking organizations (NGOs)
 Government
 Education
 Health Care  Organization by ownership
 Religious  Sole proprietorship

 Social
 Partnership
 Private company Ltd (Pte.)
 Public Company (Plc.)
 WHY ORGANIZATIONS ARE EXIST?

 Organizations exist because two people working

together can generally accomplish more than they
could if they worked individually.

1 + 1 > 2

Synergy Effects
 WHY DO WE HAVE ORGANIZATIONS?

1. To Accomplish Something = Goal

2. It Takes More Than One Person

CEO/ MD

GM

HR Marketing Operation Finance

Manager Manager Manager Manager

Supervisors Supervisors Supervisors

Supervisors

Staff Staff Staff

Staff
ORGANIZATIONAL PERFORMANCE

 Organization…social entity that is goal directed and

deliberately structured

 Social entity…. being make up of two or more people

 Goal directed…designed to achieve some outcome

 Deliberately structured…tasks are divided and

responsibility for their performance is assigned

PERFORMANCE OF ORGANIZATIONS

 Depends on
Attitudes

Perceptions

Behavior of individual members in that

organization.
 ORGANIZATIONAL PERFORMANCE

 Organizations bring together

 knowledge,
 people, and
 raw materials to perform tasks
 Effectiveness
• the degree to which the organizations achieves goals
 Efficiency
• the use of minimal resources to produce desired output
 Good management is important because organizations contribute so
much to society.
 Performance is defined as the organization’s ability to attain its
goals by using resources in an efficient and effective manner.
 Efficiency pertains to the amount of resources—raw materials,
money, and people—used to produce a desired volume of output.
 Effectiveness refers to the degree to which the organization
achieves a stated goal.
 Managers are concerned both with
• keeping costs low (efficiency) and
• performing activities which are critically and financially
successful (effectiveness)
 MANAGEMENT SKILLS

 Conceptual Skills – cognitive ability to see the

organization as a whole system
 Human Skills – the ability to work with and through
other people
 Technical Skills – the understanding and proficiency
in the performance of specific tasks
 Relationship of Technical , Human and
Conceptual skills to management

Technical Skill
Non-managers

Contribution)
(Individual

Human Skill
Conceptual Skill
Middle Managers

Technical Skill
Human Skill
Conceptual Skill
“Eight Good Behaviors”
1. Be a good coach.
2. Empower your team and don’t micromanage.
3. Express interest in team members’ successes and personal well-
being.
4. Don’t be a sissy: Be productive and results-oriented.
5. Be a good communicator and listen to your team.
6. Help your employees with career development.
7. Have a clear vision and strategy for the team.
8. Have key technical skills so you can help advise the team.
 WHEN SKILLS FAIL

 Management skills are tested most during turbulent times

• Many managers fail to understand and adapt to the rapid pace
of change in the world
 Common failures include:
• Poor Communication
• Failure to Listen
• Poor Interpersonal Skills
• Treating employees as instruments
• Failure to clarify direction and performance expectations
 Managers have complex jobs that require a range of abilities and
skills.
• Technical skills include the understanding of and proficiency in the
performance of specific tasks.
• Human skills refer to a manager’s ability to work with and through
other people and to work effectively as part of a group.
• Conceptual skills are the cognitive abilities to see the organization
as a whole and the relationship among its parts.
• The two major reasons that managers fail are poor communication
and poor interpersonal skills.
• A manager’s weaknesses become more apparent during
stressful times of uncertainty, change, or crisis.
 WHO ARE MANAGERS?

 Individuals whose primary activities are

• to carry out the process of management or functions
of management.
 Managers are needed to
• make many decisions for their daily work activities
• communicate with others by giving and/or receiving
required information
 DIFFERENCES AND SIMILARITIES OF MANAGERS

 Differences  Similarities
• Jobs • People working with them
• Organizations • Work through other people

• Levels • Responsible for

accomplishing goals
 MANAGEMENT TYPES

 Vertical Differences
• Top Managers
• Middle Managers
• First-Line Managers
 Horizontal Differences
• Functional departments like marketing, production,
human resource , sale and advertising manager
• Include both line and staff functions – general manager
 TYPES OF MANAGERS

 There are many types of managers, based on their purpose and

location in an organization.
• A top manager is one who is at the apex of the organizational
hierarchy and is responsible for the entire organization.
• Middle managers work at the middle level of the organization
and are responsible for major divisions or departments.
• A project manager is a manager who is responsible for a
temporary work project that involves people from various
functions and levels of the organization.
 TYPES OF MANAGERS

 Most new managers are first-line managers— managers who are

at the first or second level of the hierarchy and are directly
responsible for overseeing groups of production employees.
 A functional manager is responsible for a department that
performs a single functional task, such as finance or marketing.
 General managers are responsible for several departments that
perform different functions, such as the manager of a Macy’s
department store or a Ford automobile factory.
 WHAT IS IT LIKE TO BE A MANAGER?

 The manager’s job is diverse

 Managerial tasks can be divided into three
characteristics and ten roles
 Most managers enjoy activities such as leading others,
networking and leading innovation
 Managers dislike controlling subordinates, handling
paperwork and managing time pressure
 MANAGER ACTIVITIES

 Managers perform a diverse amount of work-

fast
 The variety, fragmentation and brevity of tasks
require multitasking
 Managers shift gears quickly
 Becoming a new manager requires a shift in thinking from being an
individual performer to playing an interdependent role of
coordinating and developing others.
• Because of the interdependent nature of management, new managers
often have less freedom and control than they expect to have.
• The job of a manager is highly diverse and fast-paced, so managers
need good time-management skills.
• A role is a set of expectations for one’s behavior.
• Managers at every level perform ten roles, which are grouped into
informational roles, interpersonal roles, and decisional roles.
• As one aspect of his decisional role, New York City Police
commissioner Raymond W. Kelly allocates resources such as money,
technology, and the time of street cops and investigators.
 MANAGING SMALL BUSINESSES AND NONPROFIT
ORGANIZATIONS

 Small businesses are growing in importance

 Many small businesses are threatened by inadequate
management skills
 Small business managers wear a variety of hats
 The functions of management apply to nonprofit
organization
 Nonprofit organizations focus on social impact but they
struggle with effectiveness
MANAGEMENT AND THE NEW WORKPLACE
THE TRANSITION TO A NEW WORKPLACE

 Today’s best managers give up their command-and-

control mind-set to focus on coaching and providing

guidance, creating organizations that are fast, flexible,

innovative, and relationship-oriented.

 Good management is just as important for small businesses and
nonprofit organizations as it is for large corporations.
• Managers in these organizations adjust and integrate the various
management functions, activities, and roles to meet the unique
challenges they face.
• Managers in small businesses often see their most important
roles as being a spokesperson for the business and acting as an
entrepreneur.
• Managers in nonprofit organizations direct their efforts toward
generating some kind of social impact rather than toward making
money for the organization.
• Managers in nonprofit organizations often struggle with
what constitutes effectiveness.
Chapter 2. The Evolution of Management Thinking

 The Historical Struggle

 Classical Perspective

 Humanistic Perspective

 New Manager Self-Test: Evolution of Style

 Management Science Recent Historical Trends

 Innovative Management Thinking into the Future

 THE HISTORICAL STRUGGLE

 Managers are always on

• the lookout for new techniques and approaches
• to meet shifting organizational needs.
 Looking at history gives managers
• a broader perspective for interpreting and
• responding to current opportunities and problems.
 Management and organizations are shaped
• by forces in the larger society.
 CLASSICAL PERSPECTIVE

 The early study of management.

 19th – late 20th Century

• Scientific Management

• Bureaucratic Organizations

• Administrative Principles
 SCIENTIFIC MANAGEMENT

 Frederick Winslow Taylor (1856-1915), father of

scientific management
 Focus on improving efficiency and labor productivity
 Workers could be retooled like machines
 Managers would need to change
 Incentive systems for meeting standards
 Others added to the theories
 CHARACTERISTICS OF
SCIENTIFIC MANAGEMENT
 BUREAUCRATIC ORGANIZATIONS

 Max Weber (1864-1920), a German theorist introduced

the bureaucratic theories
 Rational authority—more efficient and adaptable to
change
 Selection and advancement would be focused on
competence and technical qualifications
 The term bureaucracy has taken on a negative tone,
associated with endless “red tape”
Characteristics of Weberian Bureaucracy
 ADMINISTRATIVE PRINCIPLES
 Henri Foyal (1841-1925), French mining engineer and other
contributors led the ideas
 Foyal wrote down his own management practices
 Several of the principles include:
• Unity of Command
• Division of Work
• Unity of Direction
• Scalar Chain
 Foyal identified five functions of management: Planning,
Organizing, Commanding, Coordinating, and Controlling
 Classical perspective - a rational, scientific approach to
management and sought to turn organizations into efficient
operation
 Scientific management -scientifically changes in management
practices for improving labor productivity (Taylor)
• One of the most significant innovations in management.

 Some supermarket chains schedule employees for maximum

efficiency by computerized systems
 Bureaucratic organizations approach- an impersonal, rational
basis through elements such as clearly defined authority and
responsibility, formal recordkeeping, and separation of
management and ownership. (Max Weber)
 Administrative principles approach – focused on total
organization rather than the individual worker and delineates
POCCC (Henri Fayol)
 HUMAN RESOURCES PERSPECTIVE

 Focus on job tasks and theories of motivation

 Reduce dehumanizing or demeaning work

 Allow workers to use full potential

 Main contributors:

• Abraham Maslow and Douglas McGregor

• Maslow’s Hierarchy of Needs

• McGregor’s Theory X/Theory Y

 The humanistic perspective
 emphasized understanding human
• behavior,
• needs, and
• attitudes in the workplace.
 Follett emphasized
 worker participation and empowerment,
 shared goals, and
 facilitating
• rather than controlling employees.
 Barnard’s contributed
 the acceptance theory of authority.
 The human relations movement stresses the satisfaction of
employees’ basic needs as the key to increased productivity.
 The Hawthorne studies were important in shaping ideas
concerning how managers should treat workers.
 The human resources perspective suggests that jobs should be
designed to meet people’s higher-level needs by allowing
employees to use their full potential.
 The behavioral sciences approach draws from psychology,
sociology, and other social sciences to develop theories about
human behavior and interaction in an organizational setting.
 Many current management ideas and practices can be traced to the
behavioral sciences approach.
 MANAGEMENT SCIENCE

 Management science become popular

• based on its successful application
• in solving military problems during World War II.
 Management science (quantitative perspective)
• uses mathematics, statistical techniques, and computer
technology
• to facilitate management decision making, particularly for
complex problems.
 The Walt Disney Company uses management science
• to solve the problem of long lines
• for popular rides and attractions at its theme parks.
 MANAGEMENT SCIENCE

 Three subsets of management science are

• operations research,
• operations management, and
• information technology (IT).
 Quants have come to dominate decision making in financial
firms, and the Wall Street meltdown in 2007–2008 shows the
danger of relying too heavily on a quantitative approach
 RECENT HISTORICAL TRENDS

 Systems Theory. A holistic view of management as a

interrelated parts to achieve a common purpose.
 Contingency View. Successful resolution of organizational
problems depends on situations.
 Total Quality Management. Management of the total
organization to deliver quality.
• A system is a set of interrelated parts that function as a whole to
achieve a common purpose. An organization is a system.
• Systems thinking means looking not just at discrete parts of an
organizational situation, but also at the continually changing
interactions among the parts.
• Managers can handle a complex environment by understanding
subsystem interdependence and synergy and thinking
systematically
• Subsystems are parts of a system that depend on one another for
their functioning.
• The concept of synergy says that the whole is greater than the sum
of its parts. The organization must be managed as a whole.
• The contingency view tells managers that what works in one
organizational situation might not work in others.
• Managers can identify important contingencies that help guide
their decisions regarding the organization.
 TOTAL QUALITY MANAGEMENT

 W. Edward Deming, known as the father of the quality movement

• US initially scoffed at Deming

 During the 1908s and 1990s, quality became a focus to meet global
competition

 Four key elements of quality management:

• Employee involvement

• Focus on customer

• Benchmarking

• Continuous improvement
 THE LEARNING ORGANIZATION

 Learning aids in the adaptation to change

 Peter Senge began the discussion about the learning organization

 All employees are engaged in identifying and solving problems

 Learning increases the capacity to learn and grow

 Move from efficiency to solving problems

 MANAGING THE TECHNOLOGY-DRIVEN WORKPLACE

 Most work is performed on computers in today’s workplace

 Companies use technology to communicate and collaborate

 Key technologies in today’s workplace:

• Supply Chain Management

• Customer Relationship Management

• Outsourcing
 Modern management is a lively mix of ideas and techniques from
varied historical perspectives, but new concepts continue to
emerge.
 Managers tend to look for innovative ideas and approaches,
particularly during turbulent times.
 Two recent trends are the transition to a more technology-driven
workplace and a corresponding emphasis on a people-driven
workplace.
 Supply chain management refers to managing the sequence of
suppliers and purchasers, covering all stages of processing from
obtaining raw materials to distributing finished goods to consumers
 Two ideas related to a people-driven workplace are the boss less
work environment and employee engagement.
 Engagement means that people are involved in their jobs and are
satisfied with their work conditions, contribute enthusiastically to
meeting team and organizational goals, and feel a sense of
belonging and commitment to the organization and its mission.
 Managers are looking ahead to the next generation of employees,
sometimes called Re-Gens, to try to predict what changes and
challenges they may bring to the evolution of management
thinking.