2

MNGT 1711: Introduction to Business

Unit 3:

Management Functions and

Managing Human Resources

1

2

What do managers do? Good management consists

of these four activities: Which results in ... And leads to:

Planning Leading

• Set objectives & state mission

• Examine alternatives • Determine needed

resources • Create strategies to

reach objectives

• Lead & motivate employees to accomplish organizational goals

• Communicate with employees

• Resolve conflicts • Manage change

Organizational efficiency & effectiveness

Achievement of organizational mission

and objectives

Organizing Controlling

• Design jobs & specify tasks

• Create organizational structure

• Staff positions • Coordinate work

activities • Set policies &

procedures • Allocate resources

• Measure performance • Compare performance

to standards • Take necessary action

to improve performance

(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.) Adapted from Table 6.1 on pages 212 and 213.

Types of Planning

3

(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

The Management Pyramid

4 (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Leadership Styles of Managers

5 (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

The Control Process

6(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Organization Chart for a Typical Appliance Manufacturer

7

(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Traditional Ways to Organize

8 (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Traditional Ways to Organize... Cont’d

9 (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Line-and-Staff Organization

10

(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Narrow and Wide Spans of Control

11 (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Human Resource Management Process

12(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Human Resource Planning Process

13

(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Job Description and Specification

14

(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Job Description and Specification...cont’d

15

(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Model of Motivation

1. Want Satisfier 2. Need Satisfier 16

(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Elton Mayo’s Hawthorne Studies

 Employees will perform better when:

 They are singled out for special praise.  They feel that management is concerned

about their welfare.

17

Scientific Management ⏤ Frederick Taylor

 Employees will perform better when:

 They are given economic incentives.  They are trained well in a scientific way to do

the job.

18

Maslow’s Hierarchy of Needs

19

(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

McGregor’s Theories X and Y

20 (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

McGregor’s Theories X and Y

Theory X Based on a pessimistic view of human nature and assumes the following:

 The average person dislikes work and will avoid it if possible.

 Because people don’t like to work, they must be controlled, directed, or threatened with punishment to get them to make an effort.

 The average person prefers to be directed, avoids responsibility, is relatively unambitious, and wants security above all else.

Theory Y Based on a more optimistic view of human nature and assumes the following:

 Work is as natural as play or rest. People want to and can be self- directed and self-controlled and will try to achieve organizational goals they believe in.

 Workers can be motivated using positive incentives and will try hard to accomplish organizational goals if they believe they will be rewarded for doing so.

 Under proper conditions, the average person not only accepts responsibility but seeks it out. Most workers have a relatively high degree of imagination and creativity and are willing to help solve problems.

William Ouchi’s Theory Z

22 (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Herzberg’s Motivator-Hygiene Theory

23

(Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)

Expectancy Theory

24

Equity Theory

 Equity theory is based on individuals’ perceptions about how fairly they are treated compared with their coworkers.

 Equity means justice or fairness; in the workplace, it refers to employees’ perception of fairness regarding the way they are treated and the rewards they earn.

25

Goal-Setting Theory  Goal-setting theory is based on the premise that an

individual’s intention to work toward a goal is a primary source of motivation.

 The goal clarifies for the employee what needs to be accomplished and how much effort will be required for completion.

1. Specific goals lead to a higher level of performance than do more generalized goals (“do your best”);

2. More difficult goals lead to better performance than do easy goals (provided the individual accepts the goal); and

3. Feedback on progress toward the goal enhances performance.

26

Reinforcement Theory

 Behaviour is a function of its consequences.

 Depending on what type of consequence follows, people will either practice a behaviour or refrain from it.

 There are three basic types of consequences:  positive, negative, and none.

27

Self-Review Questions ⏤ Part 1

1. Define the term “management”.

2. What are the four key functions of managers?

3. What is the purpose of planning, and what is needed to do it effectively?

4. Explain the managerial function of organizing.

5. What types of powers can leaders use to influence other people’s behaviour?

6. What are the traditional forms of organizational structure?

7. Distinguish between job analysis, job description, and job specification.

8. Describe the human resource management process.

9. What are the five types of departmentalization?

10. Describe the control process.

28

Self-Review Questions ⏤ Part 2

1. What are the basic principles of Frederick Taylor’s concept of scientific management?

2. What did Elton Mayo’s Hawthorne studies reveal about worker motivation?

3. What is Maslow’s hierarchy of needs, and how do these needs relate to employee motivation?

4. How can a manager use an understanding of Herzberg’s theory to motivate employees?

5. How do the Theory X, Theory Y, and Theory Z management styles differ?

6. Discuss the three relationships central to Expectancy Theory.

7. Explain the comparison process that is a part of Equity Theory.

8. How does Goal-setting Theory contribute to our understanding of motivation?

9. What are the main elements of Reinforcement Theory?

29