BE VERY KEEN ON INSTRUCTIONS BEFORE YOU START HANDLING THE PAPER and REVIEW VERY KEENLY

Foundations of Management Theory

Who wants to be a manager?

What is it that managers actually do?

Guiding questions: 1.  What is management? 2.  Understanding the past provides insight

to the future 3.  Management is often confused with

leadership or used interchangeably(but it should not be and you will cover leadership later in the course).

Are they different? Management` Leadership Used in organisational context only

Used in many contexts

Formally appointed No appointment necessary ‘doing things right’ (Kotter 1990)

‘doing the right thing’ (Kotter 1990)

Management … the exercise of influence over others using extrinsic motivation and based on externally determined legitimacy (Martin & Fellenz 2010 p.197)

Leadership … the exercise of influence over others using their intrinsic motivation and reflecting subjective, follower- based legitimation (Martin & Fellenz 2010 p.197)

MANAGEMENT

Levels of Management

Top managers

Middle managers

‘First line’ managers

The aim of management Low High

H ig

h

Manager chooses the right goals to pursue, but does a poor job of

using resources to achieve these goals

Result: a product/ service the customer wants but that is too expensive for them to buy

Manager chooses the right goals to pursue and makes good use of

resources to achieve these goals

Result: a product/ service that customers want at a quality and price they can afford

Lo w

Manager chooses wrong goals to pursue and makes poor use

of resources

Result: A low-quality product/ service that customers do not want

Manager chooses inappropriate goals, but makes good use of

resources to pursue these goals

Result: A high quality product/ service that customers do not want

Efficiency

E ff

ec tiv

en es

s

The Scientific-Technical Revolution and its effects on organisations and management

Rise of factory system of production –  growth in number of employees –  Increasing use of technology in production –  Rise of ‘corporations’ meaning owners did not necessarily

work in the organisation Key features/ developments

–  Specialisation of labour and the ‘production line’ –  Systematic study of work tasks to create rules or ‘one best

way’ of performing each task –  Focus on both job design and organisational structures and

administration

Scientific approaches to management – Job Design

Frederick W. Taylor (1856-1915) Four principles of ‘Scientific Management’:

1.  Develop a science for each element of the job, which replaces the old ‘rule of thumb’ method

2.  Managers should scientifically select* and then train, teach and develop workers (* select the right person for the right job)

3.  Managers should actively cooperate with the workers to ensure all work is being done in accordance with the principles of the science developed

4.  An almost equal division of the work and the responsibility should be between the management and the workers

Scientific approaches to management – Job Design

Other famous names include Frank and Lillian Gilbreth “time and motion studies”- who used film and stop watches to work out new ‘quicker’ ways to produce tasks

Henry Ford “production line”:

who took the idea of the production line from abattoirs – where carcasses were moved through the factory on chains and pulley systems - and introduced it into his car manufacturing plants.

“Any customer can have a car painted any colour that he wants so long as it is black”.

Innovations in administrative management - Bureaucracy (Weber)

Max Weber (1864-1920) Characteristics:

–  Specialisation of labour –  Formal rules and procedures –  Impersonality –  Well-defined hierarchy –  Career advancement based on merit

Innovations in administrative management - Principles (Fayol)

Fayol developed a list of 14 principles that he believed were essential to increasing efficiency in the management process.

Fayol is also well-known for articulating the 5 (now 4) managerial functions – what managers must do to create a high performing organisation.

–  Planning – choosing appropriate goals for the organisation –  Organising – designing processes and systems to achieve those goals –  Command – selecting the right employees for the job, evaluating work performance,

motivating individual employees etc –  Co-ordinating – putting together relationships/ work teams to ensure that production

runs smoothly –  Controlling – measuring and monitoring to evaluate how the system is working

Henri Fayol (1841 – 1925)

Time spent per managerial functions

Top managers

Middle managers

First-line managers

Planning Organising Leading Controlling

Source: Waddell et al 2008 p. 14

Behavioural approaches to management theory

Develop in response to Scientific approaches to management

Focus on motivational and behaviour as a mechanism to improve organisational performance

Hawthorne Studies of the 1920s Maslow’s Hierarchy of Needs McGregor’s Theory X and Theory Y

Behavioural approaches (cont.) – McGregor

Theory X •  The average employee is lazy,

dislikes work, and will try to do as little as possible

•  To ensure that employees work hard, managers should closely supervise them

•  Managers should create strict work works and implement a well-defined system of rewards & punishments to control employees

Theory Y •  Employees are not inherently

lazy – employees will do what is good for the organisation

•  Managers must create a work setting that provides opportunities for workers to exercise initiative and self- direction

•  Managers should decentralise authority & make sure they have the resources necessary to achieve organisational goals

What do managers actually do? – Mintzberg’s Managerial roles

Decisional – Entrepreneur – Disturbance

handler – Resource

allocator – Negotiator

n  Informational –  Monitor –  Disseminator –  Spokesperson

n  Interpersonal –  Figurehead –  Leader –  Liaison

21st century understandings of management Increasing emphasis on motivation, leadership and

relationships The key skill is communication – both oral / verbal but

also the ability to develop and effectively communicate a vision/ position to different audiences – the management of ‘meaning’

Less ‘overt control’ as organisations take advantage technology (eg swipe cards for building access, login to PCs, keystroke monitoring)

Skills needed by three levels of management

Top managers

Middle managers

First-line managers

Conceptual skills

Human skills Technical skills

Question time:

Do you think that the nature of work has changed?

Do you think the nature of management has changed?

Is management something you do (action) or is it a process?

Demands on modern managers Managers in the 21st century often required to work ‘smarter and

harder’ - increased working hours, doing more with less staff/ resources, the ‘globalisation’ of the business environment

Pressures of conflicting demands – delivering “shareholder value” while being ethically and environmentally responsible

‘empowerment’ efforts of the 1990s has seen increased demands for flexibility, ‘work life balance’ and ‘learning opportunities’ by staff

Today

Looked at the foundations of Management Understanding how management has been

studied in relation to how work has developed

Assignment one:

It is an essay The role is to persuade for a point of view Therefore you must have a position to your paper – this is called the

thesis This essay asks you to argue for or against or on balance:

“In order to be successful in my career, I will need to manage my internal motivation to create job satisfaction.”

You must draw from Pinks TED talk and Acadecmi papers

Very important things

The stimulus is Dan Pink’s TED talk The context is you are trying to inform and

persuade your CEO of an INFORMED position

You MUST do ACADEMIC research (peer reviewed) to make an INFORMED position

EASY MARKS

Getting referencing, layout, format, grammar and correct word length

Essays, do NOT have headings Be on time with your submission

Ways to earn marks

Argue for your position, show how you know something including its flaws (reference your assertions)

Make sure every paragraph is fully formed, 4 – 6 sentences and have NO dot points

Use business language NO contractions

Other ways to earn marks

Proof read your work. Use your word count wisely. You need to demonstrate what you know.

NO quotes Lead your reader to what you want them to

know – no guess work for the reader It is a position answer the question do not

ask a question (even rhetorically)