Chapter 1
Introduction to Management and Organizations
Adapted and Presented by:
Prof. Ajay Kumar Singh
Senior Professor and
Formerly Head, Department of Commerce
Formerly Dean, Faculty of Commerce and Business
University of Delhi
Formerly Vice Chancellor, Sri Sri University
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 1
ANDRAGOGY
2
CONTEXT
4 Pillars of Learning
3
OUTLINE
• Who are managers?
• What is management?
• What do managers do?
• What are the challenges of managing?
• Why study management?
• Submitting class exercises
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 4
Who Are Managers?
• Manager
– Someone who works with and through other
people by coordinating their work activities in
order to accomplish organizational goals
(Robbins, et. Al, 2006, p. 7)
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 5
Types of Managers
Exhibit 1.2 Managerial Levels
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 6
What Is Management?
• Managerial Concerns
– Efficiency
• “Doing things right”
– Getting the most output
for the least input
– Effectiveness
• “Doing the right
things”
– Work activities that
attain organizational
goals
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 7
What Do Managers Do?
Three Approaches to describe:
• Management Functions
• Management Roles (Mintzberg)
• Management Skills
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 8
Exhibit 1.4 Management Functions
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
9
What Do Managers Do? (cont’d)
• Mintzberg’s Management Roles
Approach
(Robbins, et. al., 2006, Exhibit 1.5, p. 12)
– Interpersonal roles
• Figurehead, leader, liaison
– Informational roles
• Monitor, disseminator,
spokesperson
– Decisional roles
• Entrepreneur, disturbance handler,
resource allocator, negotiator
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 10
Mintzberg’s Managerial Roles
Mintzberg’s Managerial Roles (cont’d)
Mintzberg’s Managerial Roles (cont’d)
Management Skills
Exhibit 1.6 Skills Needed at Different
Management Levels
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 15
Exhibit 1.8 The Changing Organization
Traditional New Organization
• Stable • Dynamic
• Inflexible • Flexible
• Job-focused • Skills-focused
• Work is defined by job positions • Work is defined in terms of tasks to be
• Individual-oriented done
• Permanent jobs • Team-oriented
• Command-oriented • Temporary jobs
• Managers always make decisions • Involvement-oriented
• Rule-oriented • Employees participate in decision
• Relatively homogeneous making
workforce • Customer-oriented
• Workdays defined as 9 to 5 • Diverse workforce
• Hierarchical relationships • Workdays have no time boundaries
• Work at organizational facility • Lateral and networked relationships
during specific hours • Work anywhere, anytime
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 16
Exhibit 1.9 Challenges Impacting
the Manager’s Job
Ethics
Knowledg
Managemen Diversity
e
t
Manage
r Globalization
Innovatio
n
Customer E-
s Business
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 17
Challenges to Managing
• Ethics
– Increased emphasis on ethics education in
university and college curriculums
– Increased creation and use of codes of ethics by
businesses
• Workforce Diversity
– Increasing heterogeneity in the workforce
• More gender, minority, ethnic, and other forms of
diversity in employees (cultural values important)
• Biggest immediate issue? (aging pop.)
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 18
Challenges to Managing (cont’d)
• Globalization
– Management in international organizations
– Political and cultural challenges of operating in a
global market
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 19
Challenges to Managing (cont’d)
• E-business (electronic business)
– The work performed by an organization using
electronic linkages to its key constituencies
– E-commerce: the sales and marketing component
of an e-business
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 20
Challenges to Managing (cont’d)
• Importance of Customers
– Customers have more opportunities than ever
before
– Delivering consistent high-quality service is
essential
– Managers need to create customer-responsive
organizations
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 21
Challenges to Managing (cont’d)
• Innovation
– Doing things differently, exploring new territory,
and taking risks
– Managers need to encourage all employees to be
innovative
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 22
Challenges to Managing (cont’d)
• Knowledge Management
– The cultivation of a learning culture where
organizational members systematically gather
and share knowledge with others in order to
achieve better performance
• Learning Organization
– An organization that has developed the capacity
to continuously learn, adapt, and change
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 23
Exhibit 1.11 Learning Organization Vs.
Traditional Organization
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 24
Why Study Management?
• The Value of Studying Management
– The universality of management
• Good management is needed in all organizations
– The reality of work
• Employees either manage or are managed
– Entrepreneurship
• The organized effort to pursue opportunities to create
value and grow through innovation and uniqueness
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 25
EVOLUTION OF MANAGEMENT THOUGHT
26
Early Mgt. Concepts and Influences
• Industrial revolution
– minor improvements in management tactics produced
impressive increases in production quantity and quality
– economies of scale - reductions in the average cost of a
unit of production as the total volume produced increases
– opportunities for mass production created by the industrial
revolution spawned intense and systematic thought about
management problems and issues
• efficiency
• production processes
• cost savings
Systematic Management
Key concepts
Systematized manufacturing operations
Coordination of procedures and processes built into internal operations
Emphasis on economical operations, inventory management, and cost
control
Contributions
Beginning of formal management in the United States
Promotion of efficient, uninterrupted production
Limitations
Ignored relationship between an organization and it environment
Ignored differences in managers’ and workers’ views
Scientific Management (The Classical
Organization Theory)
• Advocated the application of scientific methods to
analyze work and to determine how to complete
production tasks efficiently
• Four principles
– develop a scientific approach for each element of one’s work
– scientifically select, train, teach and develop each worker
– cooperate with workers to ensure that jobs match plans and
principles
– ensure appropriate division of labor
• Personalities
– Frederick W. Taylor - Frank and Lillian Gilbreth - Henry Gantt
Scientific Management (cont.)
Key concepts
Used scientific methods to determine the “one best way’
Emphasized study of tasks, selection and training of workers, and
cooperation between workers and management
Contributions
Improved factory productivity and efficiency
Introduced scientific analysis to the workplace
Piecerate system equated worker rewards and performance
Limitations
Simplistic motivational assumptions
Workers viewed as parts of a machine
Potential for exploitation of labor
Excluded senior management tasks
Administrative Management
• Emphasized the perspective of senior managers
• Five management functions
– planning
– organizing
– commanding
– coordinating
– controlling
• Fourteen principles of management
• Personalities
– Henri Fayol
– Chester Barnard
– Mary Parker Follet
Administrative Management (cont.)
Key concepts
Fayol’s five functions and 14 principles of management
Executives formulate the organization’s purpose, secure employees,
and maintain communications
Managers must respond to changing developments
Contributions
Viewed management as a profession that can be trained and developed
Emphasized the broad policy aspects of top-level managers
Offered universal managerial prescriptions
Limitations
Universal prescriptions need qualifications for environmental,
technological, and personnel factors
Human Relations
• Aimed to understand how psychological and social
processes interact with the work situation to influence
performance
• Hawthorne Studies
– Hawthorne Effect - workers perform and react differently
when researchers observe them
• Argued that managers should stress primarily employee
welfare, motivation, and communication
• Personalities
– Abraham Maslow
Human Relations (cont.)
Key concepts
Productivity and employee behavior are influenced by the informal
work group
Cohesion, status, and group norms determine output
Social needs have precedence over economic needs
Contributions
Psychological and social processes influence performance
Maslow’s hierarchy of need
Limitations
Ignored workers’ rational side and the formal organization’s
contributions to productivity
Research overturned the simplistic belief that happy workers are more
productive
Bureaucracy
• Bureaucratic structures can eliminate the
variability that results when managers in the
same organization have different skills,
experiences, and goals
• Allows large organizations to perform the many
routine activities necessary for their survival
• People should be treated in unbiased manner
• Personality
– Max Weber
Bureaucracy (cont.)
Key concepts
Structured network of relationships among specialized positions
Rules and regulations standardize behavior
Jobs staffed by trained specialists who follow rules
Hierarchy defines the relationship among jobs
Contributions
Promotes efficient performance of routine operations
Eliminates subjective judgment by employees and management
Emphasizes position rather than the person
Limitations
Limited organizational flexibility and slowed decision making
Ignores the importance of people and interpersonal relationships
Rules may become ends in themselves
Quantitative Management
• Teams of quantitative experts tackle
complex issues facing large organizations
• Helps management make a decision by
developing formal mathematical models of
the problem
• Personalities
– military planners in World War II
Quantitative Management (cont.)
Key concepts
Application of quantitative analysis to management decisions
Contributions
Developed specific mathematical methods of problem analysis
Helped managers select the best alternative among a set
Limitations
Models neglect non-quantifiable factors
Managers not trained in these techniques may not trust or understand
the techniques’ outcomes
Not suited for nonroutine or unpredictable management decisions
Organizational Behavior
• Studies management activities that promote
employee effectiveness
– investigates the complex nature of individual, group,
and organizational processes
– Theory X
• managers assume that workers are lazy, irresponsible, and
require constant supervision
– Theory Y
• managers assume employees want to work and control
themselves
• Personality
– Douglas McGregor
Organizational Behavior (cont.)
Key concepts
Promotes employee effectiveness through understanding of individual,
group, and organizational processes
Stresses relationships among employees, managers, and work
performed
Assumes employees want to work and can control themselves
Contributions
Increased participation, greater autonomy, individual challenge and
initiative, and enriched jobs may increase participation
Recognized the importance of developing human resources
Limitations
Some approaches ignored situational factors, such as the environment
and technology
Systems Theory
Key concepts
Organization is viewed as a managed system
Management must interact with the environment
Organizational goals must address effectiveness and efficiency
Organizations contain a series of subsystems
There are many avenues to the same outcome
Synergies enable the whole to be more than the sum of the parts
Contributions
Recognized the importance of the relationship between the
organization and the environment
Limitations
Does not provide specific guidance on the functions of managers
Contingency Perspective
Key concepts
Situational contingencies influence the strategies, structures, and
processes that result in high performance
There is more than one way to reach a goal
Managers may adapt their organizations to the situation
Contributions
Identified major contingencies
Argued against universal principles of management
Limitations
Not all important contingencies have been identified
Theory may not be applicable to all managerial issues
Organizing for Environmental Response (cont.)
• Organizing for customer responsiveness (cont.)
– Total Quality Management (TQM) - comprehensive
approach to improving quality and customer
satisfaction
• characterized by a strong orientation toward internal and
external customers
• involves people across departments in improving all
aspects of the business
• requires integrative mechanisms that facilitate group
problem solving, information sharing, and cooperation
across business functions
– Baldrige award - given to U.S. companies that achieve quality
W. Edwards Deming’s “14 Points” Of Quality
• Create constancy of purpose
• Don’t tolerate delays or mistakes
• Cease dependencies on mass inspection
• Don’t award business on price tag alone
• Constantly and forever improve the system of production or service
• Institute training and retraining
• Institute leadership
• Drive out fear
• Breakdown barriers among departments
• Eliminate slogans, exhortations, and arbitrary targets
• Eliminate numerical quotas
• Remove barriers to pride in workmanship
• Educate your people who should be viewed as assets, not
commodities
• Provide a structure that enables quality
Organizing for Environmental
Response (cont.)
• Organizing for customer responsiveness (cont.)
– ISO 9000 - a series of quality standards developed by a
committee working under the International
Organization for Standardization
• intended to improve total quality in all businesses
• companies that comply with standards entitled to certification
– reengineering - revolutionizes key organizational
systems and processes
• based on a vision for how the organization should run
• completely overhauls the operation in revolutionary ways
A Dynamic Network
Designers Producers
Brokers
Suppliers Distributors
Macro Perspective of Organizations
• Organizations are open systems
– affected by, and in turn affect, their external
environments
• External environment
– all relevant forces outside a firm’s boundaries
• relevant - factors to which managers must pay attention
– two elements comprise the external environment
• competitive environment - immediate environment
surrounding a firm
• macroenvironment - fundamental factors that generally
affect all organizations
48
The Macroenvironment
• most general elements in the external environment that
can potentially influence strategic decisions
– all organizations are affected by the general
components of the macroenvironment
• Laws and regulations
– impose strategic constraints and provide opportunities
– regulators - specific government organizations in a
firm’s more immediate task environment
• have the power to investigate company practices and take
legal action to ensure compliance with the laws
The Macroenvironment (cont.)
• The economy
– created by complex interconnections among economies of
different countries
– important elements include interest rates, inflation rates,
unemployment rates, and the stock market
– economic conditions change and are difficult to predict
• Technology
– creates new products, advanced production techniques, and
improved methods of managing and communicating
– strategies that ignore or lag behind competitors in
considering technology lead to obsolescence and extinction
The Macroenvironment (cont.)
• Demographics
– measures of various characteristics of the people comprising
groups or other social units
• age, gender, family size, income, education, occupation
– workforce demographics must be considered in formulating
human resources strategies
• population growth influences the size and composition of the
labor force
– immigration also is a significant factor
• increasing diversity of the labor force has both advantages
and disadvantages
– must assure equal employment opportunity
The Macroenvironment (cont.)
• Social issues and the natural environment
– management must be aware of how people
think and behave
• the role of women in the workplace
• providing benefits for domestic partners of
employees
• protection of the natural environment
Competitive Environment
• Competitive environment
– comprises the specific organizations with
which the organization interacts
• Michael Porter - defined the competitive
environment
– successful managers:
• react to the competitive environment; and
• act in ways that actually shape or change the
competitive environment
Competitive Environment
New
entrants
Rival
Suppliers firms Customers
Substitutes
Competitive Environment (cont.)
• Competitors
– competitors within an industry must deal with
one another
– organizations must:
• identify their competitors
• analyze how competitors compete
• react to and anticipate competitors’ actions
– competition is most intense:
• where there are many competitors
• when industry growth is slow
• when the product or service cannot be differentiated
Competitive Environment (cont.)
• Threat of new entrants
– barriers to entry - influence the degree of threat
• conditions that prevent new companies from
entering an industry
• include government policy, capital requirements,
and brand identification, cost disadvantages, and
distribution channels
• Threat of substitutes
– technological advances and economic efficiencies may
result in substitutes for existing products
– substitutes can limit another industry’s revenue potential
– companies need to think about potentially viable substitutes
Competitive Environment (cont.)
• Suppliers
– provide the resources needed for production
– powerful suppliers can reduce an organization’s profits
• international labor unions are noteworthy suppliers
– dependence on powerful suppliers is a
competitive disadvantage
• power of supplier determined by:
– availability of other suppliers from whom to buy
– the number of customers for the supplier’s products
• switching costs - fixed costs buyers face if they change suppliers
– close supplier relationship is the new model for organizations
Competitive Environment (cont.)
• Customers
– purchase the products or services the organization
offers
• final consumers - purchase products in their final form
• intermediate consumers - buy raw materials or wholesale
products before selling them to final consumers
– customer service - giving customers what they want,
the way they want it, the first time
– disadvantageous to depend too heavily on powerful
customers
• powerful customers make large purchases and/or have
other suppliers
UNIVERSAL NEED FOR MANAGEMENT
© 2003 Pearson Education Canada Inc. 1.2559
Management
MANAGEMENTVs. Administration
Vs ADMINISTRATION
S. Basis of Management Administration
No. Distinction
1. Nature doing function determinative or
thinking function
2. Scope Concerned with Concerned with
implementation of determination of
policies major objectives &
policies
3. Level Largely a middle & Top-level function
lower level function
4. Skills Technical & human Conceptual &
required skills human skills
60
Cont…
S. Basis of Management Administration
No. Distinction
5. Influence Managerial decisions Administration
are influenced decisions are
mainly by objectives influenced mainly by
& policies of the public opinion &
organization other outside forces
6. Direction of Actively concerned Not directly
human with direction of concerned with
efforts human efforts direction of human
efforts
7. Main Directing & Planning & control
functions organizing
61
Cont…
S. Basis of Management Administration
No. Distinction
8. Usage Used mainly in Used largely in
business government &
organizations public sector
9. Illustrations Managing Director, Minister,
General Manager, Commissioner,
Sales Manager, Registrar, Vice-
Branch Manager, etc. Chancellor,
Governor, etc.
62
63
64
65
66
67
68
69
70
71
72
73
74
Thank You !
Prof. Ajay Kumar Singh
Senior Professor and
Formerly Head, Department of Commerce
Formerly Dean, Faculty of Commerce and Business
University of Delhi
Formerly Vice Chancellor, Sri Sri University
[email protected]
Mobile Number: 9810108767
75
