Adobe Systems BPH_AMBE – fall 2020 1 Introduction to management Evolution of management (thought) Lecture 1 Adobe Systems BPH_AMBE – fall 2020 2 Agenda for today §Why study management? §What is management? §Process §People §Discipline §Historical background and the evolution of management (thought) Adobe Systems BPH_AMBE – fall 2020 3 Why study management? ̶Organizations are everywhere ̶Organization is a systematic arrangement of people to accomplish some specific purpose. Adobe Systems BPH_AMBE – fall 2020 4 Characteristics of organizations Adobe Systems BPH_AMBE – fall 2020 5 The need for management is universal… ̶ Adobe Systems BPH_AMBE – fall 2020 6 Two vital managerial concepts EFFICIENCY VS. EFFECTIVENESS Doing things right vs. Doing the right things Adobe Systems BPH_AMBE – fall 2020 7 Management as a process ̶Management is the process undertaken by one or more persons to coordinate the activities of other persons to achieve results not attainable by any one person acting alone. Adobe Systems BPH_AMBE – fall 2020 8 Managerial functions Adobe Systems BPH_AMBE – fall 2020 9 Management = the people ̶Manager ̶Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished. ̶Top Managers ̶Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization. ̶Middle Managers ̶Individuals who manage the work of first-line managers. ̶First-line Managers ̶Individuals who manage the work of non-managerial employees. ̶ Adobe Systems BPH_AMBE – fall 2020 10 Managerial specialization Given the size of organizations and the level of complexity, managers must be specialized in order to be efficient. §vertical specialization = assigning the tasks of supervising subordinates to another person; first-line managers middle managers top managers §horizontal specialization = assigning certain tasks (production, marketing, finance) to another person; =>functional managers - the function refers to what activities the manager usually oversees as the result of horizontal specialization process. Adobe Systems BPH_AMBE – fall 2020 11 What do managers do? When fulfilling management functions, managers perform ten different, but interrelated managerial roles: ̶ ̶Interpersonal roles Figurehead, leader, liaison ̶Informational roles Monitor, disseminator, spokesperson ̶Decisional roles Disturbance handler, resource allocator, negotiator ̶ Adobe Systems BPH_AMBE – fall 2020 12 Managerial competencies ̶In order to be able to perform managerial roles, managers must posses and further develop certain critical competencies (=knowledge, skills, abilies/traits). ̶ ̶Technical = knowledge and proficiency in a specific field ̶ ̶Human = ability to work well with other people ̶ ̶Conceptual = ability to think and conceptualize about abstract and complex situations concerning the organization Adobe Systems BPH_AMBE – fall 2020 13 Competencies vs. management levels ̶ Adobe Systems BPH_AMBE – fall 2020 14 Competencies vs. management functions Adobe Systems BPH_AMBE – fall 2020 15 Management as a discipline ̶accumulated body of knowledge that can be learned. ̶a subject with principles, concepts, and theories that can be learned and applied in the process of managing. Adobe Systems BPH_AMBE – fall 2020 16 Historical background Adobe Systems BPH_AMBE – fall 2020 17 Evolution of management thought ̶the way people were thinking about management was happening with respect to the changes in overall economic environment. ̶Classical Approaches ̶basic assumptions about people: perfect rationality, responsiveness to economic incentives ̶main focus: management of work / activities (simplification, norms, planning), administration (Fayol’s principles), bureaucracy (Max Weber) ̶Behavioral Approaches ̶basic assumptions about people: responsiveness to other then economic incentives (social relationships, group pressure), search for personal fulfillment ̶main focus: people’s actions and their groundings (motivation, psychology, sociology, anthropology), relationships among people (Hawthorne studies) ̶Management Science ̶main focus: productions and operations management, new more sophisticated methods (mainly mathematical) ̶ Adobe Systems 18 CLASSICAL APPROACHES BEHAVIOURAL APPROACHES (HUMAN RESOURCES APPROACH) MANAGEMENT SCIENCE Scientific Management Human Relations Approach Operations / Productions Management -the use of scientific methods to define “one best way” for a job to be done -concentration on the physical environment of the job -concept of “economic man” -concentration on the social environment -managers should recognize the need of employees for recognition and social acceptance -satisfied worker will be more productive -quantitative -analytical -modeling / experimenting -techniques to improve decision making -Frederick Taylor -Frank + Lilian Gilbreth -Henry Gantt (Gantt chart) -Abraham Maslow (hierarchy of needs) -Douglas Mc Gregor (theories X and Y) Classical Organization Theory Behavioral Science -principles of management -functions of management -theory of bureaucracy -concept of “social man” -scientific approach to study human behavior (psychology, sociology) -concept of work as a means to fulfill human needs (which are more complex than jus economic) -Henri Fayol -Max Weber -Victor Vroom (motivation theory) -Frederick Herzberg (motivation theories) SYSTEMS APPROACH -a theory that sees an organization as a set of interrelated and interdependent parts -open vs. closed systems -Chester Barnard CONTINGENCY APPROACH -recognizing and responding to situational variables as they arise: organization size, routine ness of technology, environmental uncertainty, individual differences Adobe Systems BPH_AMBE – fall 2020 19 The changing organization Adobe Systems BPH_AMBE – fall 2020 20 Changes in the real world Current trends Impact on managers ̶Changing technology (digitization) ̶ ̶ ̶ ̶ ̶Increased security threats ̶ ̶ ̶Encreased Emphais on Organizational (and Managerial) Ethics ̶ ̶ ̶Increased Competitiveness ̶Virtual workplaces ̶More flexible workforce ̶Flexible work arrangements ̶Empowered employees ̶ ̶Risk management ̶(De)globalizaton concerns ̶ ̶Redefined values ̶Rebuilding trust ̶Increased Accountability ̶ ̶Customer service ̶Innovation ̶Globalization ̶Competition => Efficiency / productivity Adobe Systems management roles interpersonal roles informational roles decisional roles technical skills human skills conceptual skills organization BPH_AMBE – fall 2020 21 manager first-line managers middle managers top managers management efficiency effectiveness planning organizing leading controlling managerial revolution scientific management principles of management contingency approach Must know - keywords