Chapter 1
Management: Science, Theory,
and Practice

Learning Objectives
LO 1 Explain the nature and purpose of management
LO 2 Understand that the management applies to all kinds of organizations and
to managers at all organizational levels
LO 3 Recognize that the aim of all managers is to create a surplus
LO 4 Identify the trends in technology and globalization that impact the
practice of management
LO 5 Explain the concepts of productivity, effectiveness, and efficiency
LO 6 Describe the evolution of management and some foundational and recent
contributions to management thought

• LO 7 Describe the various approaches to management, their contributions,
as well as their limitations
• LO 8 Realize that managing requires a systems approach and that practice
must always take into account situations and contingencies
• LO 9 Define the managerial functions of planning, organizing, staffing,
leading, and controlling
• LO 11 Identify a successful manager’s career path that you may wish to
emulate
• LO 12 Identify a relevant management software that you may be expected
to use in your career

DEFINITION OF
MANAGEMENT: ITS
NATURE AND PURPOSE
• The process of designing and maintaining an environment
in which individuals, working together in groups,
efficiently accomplish selected aims.

The Functions
of
Management
Five managerial functions:
• Planning
• Organizing
• Staffing
• Leading
• Controlling

Managerial Functions at Different
Organizational Levels

Managerial Skills and the Organizational
Hierarchy

The Goals of All Managers and
Organizations
• The aim of all managers should be to create
a surplus by establishing an environment in
which people can accomplish group goals with
the least amount of time, money, materials, and
personal dissatisfaction.

Characteristics of Excellent and Most Admired
Companies (Thomas Peters and Robert Waterman)
These firms
1. were oriented toward action
2. learned about the needs of their customers
3. promoted managerial autonomy and entrepreneurship
4. achieved productivity by paying close attention to the needs of their
people
5. were driven by a company philosophy often based on the values of
their leaders
6. focused on the business they knew best
7. had a simple organization structure with a lean staff
8. were centralized as well as decentralized, depending on
appropriateness

Adapting to Changes inThe 21st
Century
TECHNOLOGY GLOBALIZATION INNOVATION AND
ENTREPRENEURSHIP

Productivity,
Effectiveness,
and Efficiency
•Productivity
•The output–input ratio within a time period with due
•consideration for Quality.
•Effectiveness
•The achievement of objectives.
•Efficiency
•The achievement of the ends with the least amount of
resources.

Managing: Science Or Art?
Managing as practice is an art; the organized
knowledge underlying the practice is a science.

THE EVOLUTION OF MANAGEMENT
THOUGHT
• Frederick Taylor’s scientific management
• Henri Fayol’s modern operational management theory
• Elton Mayo and F. J. Roethlisberger’s Hawthorne studies

Henri Fayol, the Father of Modern Management
Theory
• Authority and responsibility. Fayol suggests that authority and responsibility
are related, with the latter arising from the former. He sees authority as a
combination of official factors, deriving from the manager’s position, and
personal factors, “compounded of intelligence, experience, moral worth, past
service, etc.”
• Unity of command. Employees should receive orders from one superior only.
• Scalar chain. Fayol thinks of this as a “chain of superiors” from the highest to
the lowest ranks, which, while not to be departed from needlessly, should be
short-circuited when following it scrupulously would be detrimental.
• Esprit de corps. This is the principle that “in union there is strength,” as well as
an extension of the principle of unity of command, emphasizing the need for
teamwork and the importance of communication in obtaining it.

Elton Mayo And F. J. Roethlisberger AndThe
Hawthorne Studies
• According to the studies, the improvement in productivity was due to
such social factors as morale, satisfactory interrelationships between
members of a work group (a sense of belonging), and effective
management— a kind of managing that takes into account human
behavior, especially group behavior, and serves it through such
interpersonal skills as motivating, counseling, leading, and
communicating.
This phenomenon, arising basically from people being “noticed,” has
been named the Hawthorne effect.

Recent Contributors to ManagementThought
• Peter F. Drucker
• Keith Davis
• W. Edwards Deming and Joseph M. Jura
• Laurence Peter
• William Ouchi
• Thomas Peters and Robert Waterman

Approaches to management
• The empirical, or case, approach,
• The managerial roles approach,
• The contingency, or situational, approach,
• The mathematical, or "management science," approach,
• The decision theory approach,
• The reengineering approach,
• The systems approach,

• The sociotechnical systems approach,
• The cooperative social systems approach,
• The group behavior approach,
• The interpersonal behavior approach,
• McKinsey's 7-S framework,
• The total quality management approach,
• The management process, or operational Approach.

The Managerial Roles Approach
(Mintzberg)
• Interpersonal roles
• Informational roles
• Decision roles

The Management Process, or
Operational Approach
• The management process, or operational,
approach draws together the pertinent
knowledge of management by relating it to the
managerial job.
• It tries to integrate the concepts, principles,
and techniques that underlie the task of
managing

The management process, or
operational, approach

Input–output model
It is the task of managers to transform the inputs, in an
effective and efficient manner, into outputs

The Functions Of Managers
• Planning
• Organizing
• Staffing
• Leading
• Controlling

Planning
• Planning involves selecting missions and
objectives as well as the actions to achieve
them; it requires decision making, that is,
choosing future courses of action from among
alternatives.

Organizing
• Organizing is part of managing which involves
establishing an intentional structure of roles
for people to fill in an organization.

Staffing
Staffing involves filling, and keeping filled,
the positions in the organization structure.

Leading
• Leading is influencing people so that they will
contribute to organizational and group goals.

Controlling
• Controlling is measuring and correcting
individual and organizational performance to
ensure that events conform to plans.

Three
Management
Perspectives:
Global,
Innovative And
Entrepreneurial
The Global
Perspective
The Innovative
Perspective
The Entrepreneurial
Perspective

THE SYSTEMS
MODEL OF
MANAGEMENT
ANDTHE
ORGANIZATION
OFTHIS BOOK