Managers - Understanding Management (Theory and Approaches)
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This document outlines the evolving nature of management, highlighting the importance of continuous development of managerial tools and principles to enhance organizational effectiveness. It discusses various management approaches, including classical, behavioral, and management science, noting their contributions and limitations. Additionally, it emphasizes the significance of viewing organizations as integrated systems, with management aimed at achieving strategic goals while considering human factors and behavior.
Managers - Understanding Management (Theory and Approaches)
- 2. Seta A. Wicaksana 0811 19 53 43 [email protected] • Managing Director of Humanika Amanah Indonesia – Humanika Consulting • Managing Director of Humanika Bisnis Digital – hipotest.com • Wakil Ketua Asosiasi Psikologi Forensik Indonesia wilayah DKI • Business Psychologist • Certified of Human Resources as a Business Partner • Certified of Risk Professional • Certified of HR Audit • Certified of I/O Psychologist • Dosen Tetap Fakultas Psikologi Universitas Pancasila • Pembina Yayasan Humanika Edukasi Indonesia • Penulis Buku : “SOBAT WAY: Mengubah Potensi menjadi kompetensi” Elexmedia Gramedia 2016, Industri dan Organisasi: Pendekatan Integratif menghadapi perubahan, DD Publishing, 2020 • Organizational Development Expertise • Sedang mengikuti tugas belajar Doktoral (S3) di Fakultas Ilmu Ekonomi dan Bisnis Universitas Pancasila Bidang MSDM • Fakultas Psikologi S1 dan S2 Universitas Indonesia • sekolah ikatan dinas Akademi Sandi Negara
- 3. Managers and Management • Managers in today’s market must update tools and principles on a continuous basis. • Management development is increasingly global in outlook and places a high value on contributing to organizational effectiveness and competitive advantage. • To be successful a manager must use and integrated approach, using a combination of tools and principles.
- 4. Management Development High performance leading organizations are increasingly distinguished by 7 features: 1. Linking management development to business plans and strategies. 2. Being boundless, flat, nonhierarchical 3. Using global and cross-cultural orientation 4. Individualizing learning that is focused within the context of organizational learning 5. Applying customized training aligned with corporate culture 6. Employing a career development focus 7. Focusing on the development of core competencies.
- 5. Management Affects Everyone • Our society depends on the goods and services provided by different types of organizations that individuals manage. • All organizations are guided and directed by the decisions of one or more individuals who are commonly known as managers.
- 6. Management Affects Everyone Peter Drucker: describes 3 major tasks of managers as: 1. To decided the purpose and mission of the organization. 2. To make work productive. 3. To manage social impacts and responsibilities.
- 8. Management as a Process What do statements like “ that is a well- managed company “ mean? They seem to imply that management is some type of work or set of activities and that these activities are performed quite well and sometimes not so well.
- 9. Management as a Discipline Classifying management as a discipline suggests that there is a body of knowledge that can be learned. (1) Management is a subject with principles, concepts, and theories. (2) A critical purpose of studying management is to learn how in the process of managing to apply principles, concepts, and theories of management and this is particularly emphasized throughout your internship experiences. (3) This internship semester you will assume the role of a manager even if this is not your current position. Why? To begin to think, analyze, and apply management theories, concepts and principles within your internship setting. It is never to early to start thinking like a manager.
- 10. Management is also a Human Activity • As a human activity management emphasizes the importance of employees with whom managers work and whom they manage in accomplishing an organization’s objectives. • In organizations, people are the most important asset. Successful managers understand this and recognize the need to establish a strong bond between the organization and the relationships of the manager and the people they manage.
- 11. Management As a Career • We are emphasizing management in the internship experiences because we recognize that in today’s environment which is fast changing and competitive. We can contribute to successful organizations by providing students with a solid foundation of experience in thinking like a manager while they are learning about the organization. • Spend this internship semester thinking about the management theories and principles that can contribute positively to your organization. And also think about how you would manage each situation for a more positive outcome.
- 13. Definition of Management • The management process is an integrated whole even though we may describe the process as a series of separate activities to understand the parts. • The model we are using identifies the management functions as planning, organizing, and controlling linked together by leading. • What does this mean? Planning determines what results the organization will achieve, organizing specifies how it will achieve the results, and controlling determines whether results are achieved and by using planning, organizing and controlling managers exercise leadership.
- 14. Organizing • Leading is the management process that integrates everything else a manger does. • Leadership is a difficult concept to define but means the ability to influence others to pursue a common goal. • Think about good leaders that you have known. Good leaders are typically driven by an overriding vision or mission.
- 15. Organizing • The organizing, leading, and controlling functions all come from planning. How? These functions carry out the planning decisions. • These plans may differ in focus from goals for the short or long term but as a whole these plans are the primary tools for preparing for and dealing with changes in the organization’s environment.
- 16. Organizing • The purpose of the organizing function is to create a structure of task and authority relationships to achieve the organization’s objectives. • Organizing can be viewed as turning plans into action and this allows an organization to function effectively as a cohesive whole.
- 17. Controlling The controlling function of management requires 3 elements: 1. Established standards of performance. 2. Information that indicates deviations between actual performance and the established standards. 3. Action to correct performance that does not meet these standards.
- 18. And Now To The Fun! Learning How to Manage • This module is trying to help you develop your knowledge, attitudes and skills. And it will teach you how to apply your formal education so that once you become a manager you will understand how to face challenges and make decisions. • The term management refers to the body of knowledge, concepts and procedures used by managers. • A great deal of management knowledge comes from the autobiographies of people who practiced management.
- 19. Learning How to Manage (Cont.) • Many disciplines have contributed to the study of management, such as social scientists, psychologists, sociologists and others. • Consider management a social phenomenon and the manager to be an important social resource to scientifically understand and study. • Other professions like mathematics, accounting, philosophy and numerous others have contributed applications to the practice of management.
- 20. Learning How to Manage (Cont.) In the end contemporary management knowledge is the product of 3 basic approaches: (1) The Classical Approach (2) The Behavioral Approach (3) The management Science Approach
- 22. The Classical Approach • The serious study of management began in the late 19th century with the need to increase the efficiency and productivity of the workforce. • The classical approach to management can be understood by looking at 2 perspectives: 1. Scientific management concentrated on the problems of lower-level managers 2. Classical organizational theory focused on problems of top-level managers.
- 23. The Classical Approach (Cont.) • Think about the context. At the turn of the 20th century, business was expanding and creating new products and new markets, but labor was in short supply. • The solutions were – (1) substitute capital for labor or – (2) use labor more efficiently.
- 24. The Classical Approach (Cont.) • Frederick W. Taylor made an important contribution to scientific management. • He observed workers producing far less than capacity in steel firms. • He recognized their were no studies to determine expected daily output per worker in the form of work standards and the relationship between these standards and wages. • Then he tried to find the one best way to do a job, determining the optimum work pace, the training of people to do the job properly and successful rewards for performance but using an incentive pay system.
- 25. Taylor’s work lead to the following 4 principles: Principle 1. Study the way workers perform their tasks, gather all the informal knowledge that workers possess, and experiment with ways to improves the performance of tasks. Principle 2. Codify the new methods of performing tasks into written rules and standard operating procedures (sops). Principle 3. Carefully select workers so that they possess skills and abilities that match the needs of the task and train them to perform according to rules and procedures. Principle 4. Establish a fair or acceptable level of performance for a task and then develop a pay system that awards acceptable performance. The Classical Approach
- 26. Classical Organizational Theory Another body of ideas developed at the same time. While scientific management focused on the management of work, the Classical approach focused on the management of organizations. • The classical organizational theory focus was on – (1) developing principles that could guide the design, creation, and maintenance of large organizations and – (2) to identify the basic functions of managing organizations. • Engineers were the main contributors to scientific management while practicing executives were the major contributors to classical organizational theory.
- 27. The Contributors to Classical Organizational Theory: Weber and Fayol • Max Weber was the primary architect of the theory of the organization as a bureaucracy. • His view of a bureaucracy was a smoothly functioning, highly efficient machine in which each part is tuned to perform its prescribed function.
- 28. Max Weber (Cont.) Weber believed that an efficient organization should be based on 5 principles Principle 1. In a bureaucracy, a manager’s formal authority comes from the position held in the organization. Principle 2. In this context people should occupy positions because of their performance, not because of their social standing or personal contacts. Principle 3. The extent of each position’s formal authority and task responsibilities should be clearly understood. Principle 4. Positions should be arranged hierarchically to that authority is exercised effectively and employees know to whom they are to report and who reports to them. Principle 5. Managers must create a will-defined systems of rules, standard operating procedures, and norms to control behavior within an organization.
- 29. The Contributors to Classical Organizational Theory: Weber and Fayol Henry Fayol was the other major contributor and devised his 14 principles of effective management: Principle 1. Division of Labor: Advocated specialization and increasing worker’s responsibilities. Principle 2. Management Authority and Responsibility: Managers must have the authority to give orders and be responsible for effectiveness of their departments. Principle 3. Unity of Command: Employees should receive orders from and report to only one supervisor.
- 30. Henry Fayol (Cont.) Principle 4. Line of Authority: Restricting the organization’s number of levels enable it to act quickly and flexibly. Principle 5. Centralization: Managers must decide how much authority to centralize at the top and how much to give to workers. Principle 6. Unity of Direction: All workers should be committed to the same plan of action. Principle 7. Equity: Workers are expected to perform at high levels and to be treated with respect and justice. Principle 8. Order: Order is the methodical arrangement of jobs to provide the greatest benefits and career opportunities. Principle 9. Initiative: Managers must encourage workers to act on their own to benefit the organization.
- 31. Henry Fayol (Cont.) Principle 10. Discipline: Employees would be expected to be obedient, energetic and concerned about the organization’s welfare. Principle 11. Remuneration: Managers should use reward systems, profit sharing and bonuses to acknowledge high performance. Principle 12. Stability of Tenure of Personnel: Long term employment helps employees develop the skills to make significant contributions. Principle 13. Coordination of Individual Interest to the Common Interest: Employees subordinate their individual interest to those of the firm. Principle 14. Espirit de Corps: Importance of a shared commitment and enthusiasm in an effective organization.
- 32. Contributions of the Classical Approach • The greatest contribution of the classical approach was the identification of management as an important element of organized society. • The identification of management functions: planning, organizing and controlling provided the basis for training new managers and was a valuable practice. • Many management techniques used today: time and motion analysis, work simplification, incentive wage systems, production scheduling, personnel testing, and budgeting are techniques from the classical approach.
- 33. Limitations of the Classical Approach • One major criticism is that the majority of insights are to simplistic for today’s complex organization. • The classical approach and the scientific management approach worked in organizations that were very stable and predictable and today little of that exists.
- 35. Behavioral Approach • The behavioral approach to management has 2 branches: the Human relations approach from the 1950’s and the behavioral science approach. • In the human relations approach managers must know why their subordinated behave as they do and what psychological and social factors influence them. • Advocates of this approach try to show how the process and functions of management are affected by differences in individual behavior and the influence of groups in the workplace. • This approach requires managers to recognize employees’ need for recognition and social acceptance and this results in training in human relation skills for managers.
- 36. The Behavioral Science Approach • The individuals in the behavioral science branch of the behavioral approach believe that the human is more complex than the “economic man” description of the classical approach and the “social man” description of the human relations approach. • The behavioral science approach concentrates more on the nature of work itself and the degree to which it can fulfill the human need to use skills and abilities.
- 37. The Behavioral Science Approach • Mary Parker Follett (1868-1933) provided much of the management theories helping organizations recognize that they could be viewed form the perspective of individual or group behavior. She was a social philosopher whose writings provided a more people-centered view of the organization than the predominant scientific management writing. • According to Follett, the manager’s job was to harmonize and coordinate group efforts and managers and workers should view themselves as partners in a common project. Managers would act more from their knowledge of human behavior than from their formal authority.
- 38. The Behavioral Science Approach • The Hawthorne Studies: a series of research studies conducted at the Hawthorne Works of General Electric helped lend support to the behavioral approach to management theory. • The research used varying lighting levels in the plant’s secretarial pool to determine the effects of different levels on productivity expecting productivity levels to drop when lighting levels dropped. The Result was surprising: productivity only dropped when workers could no longer see well enough to do their work. • The results showed that the presence of the researchers was affecting the results because the workers enjoyed the attention and produced the results they believed the researchers wanted. • Summary: The Hawthorne effect was used to describe this effect of increased productivity due to increased attention.
- 39. Contributions of Behavioral Approach • Contributions of the Behavioral Approach include increased use of teams to accomplish organizational goals, focus on training and development of employees, and the use of innovative reward and incentive systems. • In addition the focus on modern management theory resulted in empowering employees through shared information.
- 40. Limitations of the Behavioral Approach • The limitations included the difficulty for managers in problem situations and the fact that human behavior is complex. • This complicated the problem for managers trying to use insights from the behavioral sciences which often changed when different behavioral scientists provided different solutions.
- 42. The Management Science Approach • The Management Science approach is a modern version of the early emphasis on the “management of work” in scientific management. It features the use of mathematics and statistics to aid in resolving production and operations problems, thus focusing on solving technical rather than human behavior problems. • The management science approach was used in World War II when the English formed teams of scientists, mathematicians, and physicist into units called operations research teams, and today businesses use these teams to deal with operating issues.
- 43. Contributions of the Management Science Approach Most important contributions are in production management focusing on manufacturing production and the flow of material in a plant and in operations management solving production scheduling problems, budgeting problems and maintenance of optimal inventory levels.
- 44. Limitations of the Management Science Approach The shortfall of this approach is that management science does not deal with the people aspect of an organization.
- 45. INTEGRATED MODEL: 3 Concepts of Management
- 46. Attempts to Integrate the Three Approaches to Management • One attempt to integrating the three approaches to management is the Systems Approach. The Systems Approach stresses that organizations must be viewed as systems in which each part is linked to each other. • The other approach is the Contingency Approach. The Contingency Approach stresses that the correctness of a managerial practice is contingent on how it fits the particular situation. • The system’s approach views the elements of an organization as interconnected and as being linked to its environment. See the discussion on Compaq.
- 47. Attempts to Integrate the Three Approaches to Management • It is important to understand that most organizations must operate as open systems to survive and use a systems perspective to management. And the objectives of the individual parts of the organization must be compromised for the objectives of the entire firm. • See the section on Management Focus on Best Practice and review the critical principles of customer responsiveness.
- 48. Attempts to Integrate the Three Approaches to Management • The contingency theorists believe that most workplace situations are too complex to analyze and control as the scientific management approach suggests. • Paul Hersey has developed a situationalist theory of leadership. He believes managers should not ascribe to one best approach. • Instead managers should identify the appropriate principles, along with relevant contingency variables and then evaluate these factors. • In summary, the contingency approach involves identifying the important variables in different situations, evaluating the variables, and then applying appropriate management knowledge and principles in selecting an effective approach to the situation.
- 50. Attempts to Integrate the Three Approaches to Management • Although both the systems approach and the contingency approach have developed value to insights on management. • It is early in their stage of development and the report card is not complete on how these approaches will contribute compared to other methods.
- 51. “Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.” - Steven Covey
- 52. Learning and Giving for Better Indonesia