LEC#2 PRINCIPLES OF MANAGEMENT FALL2026.pptx

management

1. ninth edition STEPHEN P. ROBBINS PowerPoint Presentation by Charlie Cook The University of West Alabama MARY COULTER © 2007 Prentice Hall, Inc. All rights reserved. Understanding Management’s Context and The management environment Chapter 1 LEC#2

2. 2– 2 L E A R N I N G O U T L I N E 1- Describe some early management examples. 2- Explain the various theories in the classical approach. 3- Discuss the development and uses of the behavioral approach. 4- Describe the quantitative approach

3. © 2007 Prentice Hall, Inc. All rights reserved. 2– 3 L E A R N I N G O U T L I N E Define what organizational culture is and explain why it’s important. Explain what the external environment is and why it’s important. Discuss how the external environment affects managers.

4. © 2007 Prentice Hall, Inc. All rights reserved. 2– 4 Historical Background of Management Ancient Management Egypt (pyramids) China (Great Wall) Adam Smith Published “The Wealth of Nations” in 1776 Advocated the division of labor (job specialization) to increase the productivity of workers Industrial Revolution Substituted machine power for human labor Created large organizations in need of management

5. Major Approaches to Management Scientific Management Quantitative Approach Organizational Behavior Systems Approach Contingency Approach © 2007 Prentice Hall, Inc. All rights reserved. 2– 5

6. © 2007 Prentice Hall, Inc. All rights reserved. 2– 6 Scientific Management Fredrick Taylor The “father” of scientific management Published Principles of Scientific Management (1911) The theory of scientific management Using scientific methods to define the “one best way” for a job to be done: Putting the right person on the job with the correct tools and equipment. Having a standardized method of doing the job. Providing an economic incentive to the worker.

7. © 2007 Prentice Hall, Inc. All rights reserved. 2– 7 Quantitative Approach to Management Quantitative Approach Also called operations research or management science Focuses on improving managerial decision making by applying: Statistics, information models, and computer simulations

8. Understanding Organizational Behavior Organizational Behavior (OB) The study of the actions of people at work; people are the most important asset of an organization © 2007 Prentice Hall, Inc. All rights reserved. 2– 8

9. © 2007 Prentice Hall, Inc. All rights reserved. 2– 9 The Systems Approach System Defined A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Basic Types of Systems Closed systems Are not influenced by and do not interact with their environment (all system input and output is internal). Open systems Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

10. Exhibit 2–6 The Organization as an Open System © 2007 Prentice Hall, Inc. All rights reserved. 2– 10

11. © 2007 Prentice Hall, Inc. All rights reserved. 2– 11 The Contingency Approach Contingency Approach Defined Also sometimes called the situational approach. There is no one universally applicable set of management principles (rules) by which to manage organizations. Organizations are individually different, face different situations (contingency variables), and require different ways of managing.

12. Exhibit 2–7 Popular Contingency Variables Organization size As size increases, so do the problems of coordination. Routineness of task technology Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies . Environmental uncertainty What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment. Individual differences Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations. © 2007 Prentice Hall, Inc. All rights reserved. 2– 12

13. Managerial Constraints © 2007 Prentice Hall, Inc. All rights reserved. 3–13

14. The Organization’s Culture Organizational Culture A system of shared meanings and common beliefs held by organizational members that determines, in a large degree, how they act towards each other. “The way we do things around here.” Values, symbols, rituals, myths, and practices © 2007 Prentice Hall, Inc. All rights reserved.

15. © 2007 Prentice Hall, Inc. All rights reserved. 3– 15 Strong versus Weak Cultures Strong Cultures Are cultures in which key values are deeply held and widely held. Have a strong influence on organizational members. Most organizations have moderate to strong cultures; that is, there is relatively high agreement on what’s important, what defines “good” employee behavior .

16. © 2007 Prentice Hall, Inc. All rights reserved. 3– 16 Strong versus Weak Cultures Factors Influencing the Strength of Culture Size of the organization Age of the organization Rate of employee turnover Strength of the original culture Clarity of cultural values and beliefs. The stronger a culture becomes, the more it affects what employees do and the way managers plan, organize, lead, and control

17. Benefits of a Strong Culture Creates a stronger employee commitment to the organization. Aids in the recruitment and socialization of new employees. Fosters higher organizational performance by instilling and promoting employee initiative. © 2007 Prentice Hall, Inc. All rights reserved. 3– 17

18. © 2007 Prentice Hall, Inc. All rights reserved. 3– 18 Defining the External Environment External Environment Those factors and forces outside the organization that affect the organization’s performance. Components of the External Environment Specific environment: external forces that have a direct and immediate impact on the organization. General environment: broad economic, socio- cultural, political/legal, demographic, technological, and global conditions that may affect the organization.

19. Exhibit 3–9 The External Environment © 2007 Prentice Hall, Inc. All rights reserved. 3– 19

20. Specific environment: 1)Customers. They represent potential uncertainty organization . Their taste can change , to an they can become dissatisfied with organization’s product or service. 2) Competitors: Organizations can not Managers must be ignore its competitors . prepared to respond to competitors policies regarding pricing new products, services offered and so on.

21. Specific environment: 3) Suppliers: Any party that provides input for the business. E.g financial institutions are provider of money. Managers need to have steady and reliable flow of inputs to meet the goals. 4) Pressure groups: Managers must recognize the special interest groups that attempt to influence organization.

22. © 2007 Prentice Hall, Inc. All rights reserved. 3– 22 General Environment Those factors and forces outside the organization that may affect the organization’s performance. Components of the General Environment The economic component encompasses factors such as interest rates, inflation , changes in disposable income. The demographic component is concerned with trends in population characteristics such as (age gender, education level, geographic location, income, and family composition ).

23. © 2007 Prentice Hall, Inc. All rights reserved. 3– 23 General Environment Components of the General Environment The technological component is concerned with scientific or industrial innovations. The sociocultural component is concerned with societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior.

24. © 2007 Prentice Hall, Inc. All rights reserved. 3– 24 General Environment Components of the General Environment The political/legal component looks at federal, state, and local laws, as well as laws of other countries and global laws. It also includes a country’s political conditions and stability. The global component encompasses those issues (like a volcano eruption) associated with globalization and a world economy.

25. © 2007 Prentice Hall, Inc. All rights reserved. 3– 25 How the Environment Affects Managers Environmental Uncertainty The extent to which managers have knowledge of and are able to predict change their organization’s external environment is affected by: Complexity of the environment: the number of components in an organization’s external environment. Degree of change in environmental components: how dynamic or stable the external environment is.

26. Exhibit 3–11 Environmental Uncertainty Matrix © 2007 Prentice Hall, Inc. All rights reserved. 3– 26

27. MULTIPLE- CHOICE QUESTIONS Which of the following approaches to management has also been labeled operations research or management science? the qualitative approach the quantitative approach the experimental approach the theoretical approach 2- Concern for employee motivation is most closely associated with which management approach? bureaucracy organizational behavior scientific management systems © 2007 Prentice Hall, Inc. All rights reserved. 2– 27

28. MULTIPLE- CHOICE QUESTIONS 3- Most organizations have cultures. very weak weak to moderate moderate moderate to strong 4- Strong cultures . are found in organizations with strong leaders have a minimal influence on the employee when she or he is making decisions can be found in all organizations that exist have a greater influence on employees than do weak cultures © 2007 Prentice Hall, Inc. All rights reserved. 2– 28

29. 2–29 MULTIPLE- CHOICE QUESTIONS 5- External environment refers to . institutions outside the organization that affect the organization’s performance forces and institutions outside the organization that potentially can affect the organization’s performance forces and institutions inside the organization that affect the organization’s performance forces inside the organization that affect the organization’s performance 6- We call it a environment if the components in an organization’s environment change frequently. moving diverse dynamic difficult