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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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 Foundations of
Management &
Organizations
LS -1

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 Who is a Manager: Old & New
Thoughts
Old Idea:
Organizational members who told others what to do
and how to do it!
New Idea:
The changing nature of work has blurred the distinction
between managers & non-managerial employees
Someone who coordinates and oversees the work of
other people so organizational goals can be
accomplished

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 What do Managers Do?
They try to be and make people efficient and effective.
Efficiency: Refers to getting the most output from the
least amount of resources and want to use those
resources efficiently. It is often referred to as “doing
things right”.
But it is not enough just to be efficient.
Effectiveness: “Doing the right things” that is, doing
those work activities that will result in achieving goals.

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 What do Managers Do?
Efficiency is concerned low resource wastage,
effectiveness is concerned with the attainment of
organizational goals.

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Levels of Management

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 Levels of Management
 Top managers are upper levels of the organizations
responsible for making organization-wide decisions
and establishing the plans and goals that affect the
entire organization
Example- Executive vice-president, president,
managing director, chief operating officer (COO) or
chief executive officer. (CEO).

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 Levels of Management
 Middle managers manage the work of first-line managers and
can be found between the lowest and top levels of the
organization.
Example- Regional managers, project leader, store manager or
division manager.
 First-line managers are of the lowest level. They manage the
work of non-managerial employees who are involved with
producing the organization`s products or servicing the
customers.
Example- Supervisors, shift managers, district managers,
department managers or office managers.

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Management Skills at Different Levels

Managers need three critical skills

 Technical Skills: Job-specific knowledge and
techniques needed to proficiently perform work tasks.

 Human Skills: The ability to work well with other

people individually and in a group.

 Conceptual Skills: The ability to think and to

conceptualize about abstract and complex situation.
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Management Skills at Different Levels

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Characteristics of an Organization

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Characteristics of an Organization
Distinct Purpose is typically expressed through
goals which the organizations hopes to
accomplish.
Each Organization is composed of People.
All organizations develop a Deliberate
Structure within which the members do their
work.

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Management Functions

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How the Managers Job is Changing
 Focus on Customers: Listen to your customers,
Delight them!
 Adapt to Latest Technology: Let it help your
organization and clients.
 Social Media is the Imperative: Draws visibility!
 Focus on Innovation: Taking calculated risks,
doing things differently.
 Keep your Employees Happy: Happy employees
are productive employees!

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 HISTORY OF
MANAGEMENT
LS -1 contd.

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Major Approaches to Management

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Early Examples of Management
• The Great Wall of China
• The Egyptian Pyramids
– Who ensured that there was enough raw
materials?
– Who told the workers what to do?
– Who coordinated all the different tasks?

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 Job Specialization
• Adam Smith wrote ‘The Wealth of Nations’
• Division of Labor (or Job Specialization) and the
economic advantages that organization and
society would gain from this.
• Breaking down jobs into narrow and
repetitive tasks.
• Division of Labor increased productivity
by increasing each worker`s skill and
dexterity, saving time lost in changing
tasks
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Classical Approach
1. The Scientific Management
• Frederick Winslow Taylor
• Noticed that employees used vastly different
techniques to do the same job
• Worker’s output was 1/3 of what was actually
possible
• No work standards existed and workers were not
matched with their abilities
• Develop “one best way” for a job to be done.
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Classical Approach
• Productivity could be increased by putting the right
person on the job with the correct tools and
equipment, having the workers follow instructions
exactly

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Classical Approach
2. General Administrative Theory
• Henry Fayol
• Focused on what managers did and what
constituted good management practice.
• Fayol developed 14 principles of management
that could be applied to all organizational
situations and taught in schools
• These 14 principles work as reference for
modern management studies and concepts
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Classical Approach
3. Bureaucracy
•Max Weber
•An organization characterized by division of labor,
clearly defined hierarchy, detailed rules and
regulations, and impersonal relationships.
•He called the ideal type of organization: bureaucracy
•However in reality this ideal bureaucracy did not
exist.

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Weber: Bureaucracy

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Behavioral Approach
• Managers manage people, hence some researchers
study the action of people in an organization.
• Organizational Behaviour (OB)
• Hawthorne Studies
– what factors led to increase in group productivity
– results indicated that the incentive plan had less
effect on a worker’s output
– group pressure, acceptance, and security had more
– Concluded that social norms and group standards
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Quantitative Approach
• The use of quantitative techniques to improve
decision making.
• Applying statistics, optimization models, computer
simulations, and other quantitative techniques to
management activities.
• The airline industry innovated a unique boarding
process called “reverse pyramid”
• Begin boarding passengers in economy class from the
back rows
• Has saved at least 2 minutes in boarding time
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Contemporary Approach

• Earlier approaches focused on managers` concerns

inside the organization.
• Later studies began to look at the external
environment as well
• Two contemporary management perspectives are
part of this approach.

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Contemporary Approach

System: a set of interrelated and interdependent parts

arranged in a manner that produces a unified whole.
•Closed System(no interaction with their environment)
•Open System (interacts with the environment).

Contingency: This approach is also known as situational

approach which says that organizations are different,
face different situations (Contingencies) and require
different ways of managing. “if, then” approach.

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Open System

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