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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
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Managers and ManagingManagers and Managing
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning ObjectivesLearning Objectives
Describe what management is, why management is
important, what managers do, and how managersutilize organizational resources efficiently andeffectively to achieve organizational goals
Distinguish among planning, organizing, leading, andcontrolling (the four managerial functions), andexplain how managers ability to handle each onecan affect organizational performance
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning ObjectivesLearning Objectives
Differentiate among three levels of management,and understand the responsibilities of managers atdifferent levels in the organizational hierarchy
Identify the roles managers perform, the skills theyneed to execute those roles effectively and the waynew information technology is affecting these rolesand skills
Discuss the principal challenges managers face intodays increasingly competitive global environment
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Steve Jobs AppleSteve Jobs Apple
How does SteveJobs pursue high-
performancemanagement at
Apple?
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
What is Management?What is Management?
The planning, organizing, leading, and
controlling of human and other
resources to achieve organizational
goals effectively and efficiently
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ManagersManagers
Managers
The people responsible for supervising the
use of an organizations resources to meet
its goalsResources include people, skills, knowledge,
machinery,computers and IT,
and financial capital
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Figure 1.1
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Organizational PerformanceOrganizational Performance
A measure of how efficiently andeffectively managers are using
organizational resources to satisfycustomers and achieve goals
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Organizational PerformanceOrganizational Performance
Efficiency
A measure of how well or productivelyresources are used to achieve a goal
EffectivenessA measure of the appropriateness of the
goals an organization is pursuing and thedegree to which they are achieved.
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Why study management?Why study management?
Understanding what managers do and
how they do it is of central importanceto understanding how a society works
and how it creates wealthHelps people deal with their bosses and
coworkers
Opens a path to a well-paying job and asatisfying career
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Managerial FunctionsManagerial Functions
Managers at all levels in all
organizations perform each of thefunctions of planning, organizing,
leading, and controllingHenri Fayol outlined the four
managerial functions in his bookGeneral Industrial Management
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Four Functions of ManagementFour Functions of Management
Figure 1.2
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PlanningPlanning
Process of identifying and
selectingappropriate
goals andcourses of
action
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Steps in the Planning ProcessSteps in the Planning Process
Deciding which goals to pursue Deciding what courses of action to
adopt Deciding how to allocate resources
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OrganizingOrganizing
Process of establishing a structure of
working relationships in a way thatallows organizational members to work
together to achieve organizational goals
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LeadingLeading
Articulating a clear vision to follow, andenergizing and enabling organizationalmembers so they understand the partthey play in attaining organizationalgoals
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LeadingLeading
Leadership involves using power,
influence, vision, persuasion, andcommunication skills
Outcome of leadership is highly
motivated and committed organizationalmembers
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ControllingControlling
Evaluating how well an organization is
achieving its goals and taking action tomaintain or improve performance
The outcome of the control process is the
ability to measure performance accuratelyand regulate efficiency and effectiveness
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Types of ManagersTypes of Managers
First line managers - Responsible for day-to-
day operations. Supervise people performingactivities required to make the good or service
Middle managers - Supervise first-linemanagers. Are responsible to find the best
way to use departmental resources to achievegoals
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Types of ManagersTypes of Managers
Top managers - Responsible for theperformance of all departments and have
cross-departmental responsibility. Establish
organizational goals and monitor middle
managers
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Levels of ManagementLevels of Management
Figure 1.3
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Relative Amount of Time That Managers Spend
on the Four Managerial Functions
Relative Amount of Time That Managers Spend
on the Four Managerial Functions
Figure 1.4
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Areas of ManagersAreas of Managers
Department
A group of people who work together andpossess
similar skillsor use the same
knowledge, tools,
or techniques
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RestructuringRestructuring
Involves the use of IT to downsize anorganization by eliminating the jobs of
large numbers of top, middle, or first-
line managers and non-managerial
employees
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OutsourcingOutsourcing
Contracting with another company, usually
in a low cost country abroad, to perform anactivity the company previously performed
itself
Promotes efficiency by reducing costs and
allowing an organization to make better use
of its remaining resources
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EmpowermentEmpowerment
Expanding employees knowledge, tasks,
and responsibilities by using powerful
new software programs
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Self-managed teamsSelf-managed teams
Groups of employees with the
responsibility for supervising their ownactions such that the team can monitor
its members and the quality of the workperformed
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Managerial Roles and SkillsManagerial Roles and Skills
Managerial role - The set of specific
tasks that a person is expected toperform because of the position he or
she holds in the organization
Mintzberg identified three categories ofroles Decisional, Informational,
Interpersonal
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Decisional RolesDecisional Roles
Roles associated with methods managers use in
planning strategy and utilizing resources.Entrepreneurdeciding which new projects or programs
to initiate and to invest resources in.
Disturbance handlermanaging an unexpected event orcrisis.
Resource allocatorassigning resources betweenfunctions and divisions, setting the budgets of lower
managers.Negotiatorreaching agreements between other
managers, unions, customers, or shareholders.
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Informational RolesInformational Roles
Roles associated with the tasks needed to obtain and
transmit information in the process of managing the
organization.Monitoranalyzing information from both the internal
and external environment.Disseminatortransmitting information to influence the
attitudes and behavior of employees.
Spokespersonusing information to positively influence
the way people in and out of the organization respond
to it.
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Interpersonal RolesInterpersonal Roles
Roles that managers assume to provide direction and
supervision to both employees and the organization
as a whole.Figureheadsymbolizing the organizations mission
and what it is seeking to achieve.Leadertraining, counseling, and mentoring high
employee performance.
Liaisonlinking and coordinating the activities of people
and groups both inside and outside the organization.
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Being a ManagerBeing a Manager
BrevityBrevityBrevity
High VarietyHigh VarietyHigh Variety FragmentationFragmentationFragmentation
ManagerialProblems
ManagerialManagerialProblemsProblems
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Managerial SkillsManagerial Skills
Conceptual skills
The ability to analyze and diagnose a situation anddistinguish between cause and effect.
Human skills
The ability to understand, alter, lead, and control the
behavior of other individuals and groups.
Technical skillsThe specific knowledge and techniques required to
perform an organizational role.
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Skill Types NeededSkill Types Needed
Figure 1.5
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CompetenciesCompetencies
Specific set of skills, abilities, and
experiences that gives one managerthe ability to perform at a higher level
than another manager in a particularorganizational setting
Challenges for Management inChallenges for Management in
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Challenges for Management in
a Global Environment
Challenges for Management in
a Global Environment
Rise of Global Organizations.
Building a Competitive Advantage
Maintaining Ethical and Socially Responsible
Standards
Managing a Diverse Workforce
Utilizing Information Technology and E-
commerce
Building a CompetitiveBuilding a Competitive
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Building a Competitive
Advantage
Building a Competitive
AdvantageIncreasing Efficiency
Increasing Quality
Increasing Speed, Flexibility, and
Innovation
Increasing Responsiveness to
Customers
Building Blocks of CompetitiveBuilding Blocks of Competitive
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Building Blocks of Competitive
Advantage
Building Blocks of Competitive
Advantage
Figure 1.6
M t P th
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Monty PythonMonty Python
In the opening scene
of Monty Pythonand the Holy Grail
Is King Arthur being
effective traveling
across Britain by
banging coconutstogether? Efficient?
Offi SOffi S
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Office SpaceOffice Space
What type of manager
is Bill Lumbergh in the movie Office Space?
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