Chapter 1 - Mgt

8/8/2019 Chapter 1 - Mgt.

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Developed by Cool Pictures & MultiMedia Presentations Copyright 2002 by South-Western, a division of Thompson Learning. All rights reserved.

Developed by Cool Pictures & MultiMedia Presentations Copyright 2003 by South-Western, a division of Thomson Learning. All rights reserved.


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Definition of Management

y The attainment of organizational goals in aneffective and efficient manner through:

y Planning

y Organizing

y Leading

y Controlling organizational resources


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Two Key Ideas in Defining Management

The four functions

Planning

Organizing

Leading

Controlling

Attainment of organizational goals in an effective &

efficient manner

CISCO


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Terms for Understanding

Organizational Performance

y Organizationsocial entity that is goal directed and deliberately

structured

y Goal directeddesigned to achieve some outcome

y Deliberately structuredtasks are divided and responsibility for

their performance is assigned

y Effectivenessdegree to which goals are achieved

yEfficiencyuse of minimal resources to produce the desiredvolume of output


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Management Functions

Planning

Leading

Resources

Controlling Organizing

Performance

Human

Financial

Raw Materials

Technological

Information

Attain goals

Products

Services

Efficiency

Effectiveness

Use influence to

motivate employees

Select goals and

ways to attain them

Assign responsibility for

task accomplishment

Monitor activities and

make corrections


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Planning

The management function concerned with defining

goals for future organizational performance and

deciding on the tasks and resources needed to

attain themy It bridges the gap from where we are ,to where we want to

be

y It is an attempt to manage the future.

y Planning increases profitability and productivity

y If you do not plan then you plan for failure


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Example : Planning at DELL

How well managers plan determines how

efficient & effective an Organization is


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Organizing

y The management function concerned with assigningtasks, grouping tasks into departments and allocatingresources to departments

y The outcome of organizing is the creation of anORGANIZATION STRUCTURE

y After setting goal & developing a workable plan, the next managementfunction is to organize people & other resources necessary to carry outthe plan

y DELL : Hire 100 employees weekly

y Grew Big- Structure hierarchy- motivate & coordinate resources


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Leading

The management function that involves the use of

influence to motivate employees to achieve the

organizations goals

y leading involves motivating entire departments & divisions as

well as those individuals working immediately with themanager


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Leadership Examples

y Herb Kell, CEO of southwest Airlines

y Treat employees as individuals

y visit sick workers

y built strong cultureits the people on the front lines, not in the front office

who are the heroes

y Lawrence, CEO of Braniff Airlines

Dissatisfied employees led to dissatisfied customersMichael Dells- hardworking & committed workforce


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CONTROLLING

y The management function, concerned with monitoring

employees activities, keeping the organization on track

toward its goals, and making corrections as needed

Examples :

MichaelDell: new line oflaptop crashed because ofpoor quality control

resulted in defected products. Some ofwhich caughtfire.

To solve these control problems Hired experienced managers and putthe right control in place


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Management Skills

Technical SkillsHuman SkillsConceptual Skills

Management Level

Top Managers

Middle Managers

First-Line Managers

Non-managers (Personnel)

Education & Experience enable managers to recognize &

develop the skills they need to put Organizational

resources to their best use

Education & Experience help managers acquire threeprincipal types of skills

Levels of the skills that manager needs depends on his/her

level in the hierarchy


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Conceptual Skills

The cognitive ability to see to see the organization as a whole and

the relationships among its various sub units and to visualize how

the organizations fits into the environment s a whole.

y The ability to think strategicallyy These skills are more important for the top level managers (

Planning & Organizing)

y Example: Bill Gates (Founder & chairman of Microsoft)

y Decision making-resource allocation-innovation: required broad view

y


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Human Skills

y The ability to work well with and through other people and to

work effectively as a group.

y This skill is demonstrated in the way a manager relates to other

people, including the ability to motivate, facilitate, coordinate,lead, communicate and resolve conflicts

y As managers deal directly with people this skill is crucial.

Human skills are as important at the top level of management

as they are at the lower levels. Mangers with good human skillsare able to get the best out of their people


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Examples ofHuman Skills

y As globalization & workforce diversity increases, human

skills become even more crucial

y A manager with Human Skills lies other people & is liked by

themy Meeting union workers to solve problems

y Dinners to celebrate team accomplishment

While Technical Skills involve mastery of things where asHuman Skills are concerned with understanding of people


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Technical Skills

y The understanding of and proficiency in the

performance of specific tasks

y Job specific knowledge & techniques that are

requiredt

o perform and Organizat

ional roley Technical skills become less important as the manager moves

up the hierarchy but even top managers need such skills to

some extent.\

y Manager of restaurant may need cooking skills to fill in for an

absent cook


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When Doctor makes a poor diagnosis, their patient dies. When a

lawyer fails to present a case, their client goes to jail, But when a

manager makes a poor hiring decision, they have to face

consequences of that decision every single day


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Skills Needed At Different Management Levels

Top Conceptual

management skills

MiddleManagement Human

skill

Lower-Level TechnicalManagement skills


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y Effective Managers need all three kinds of Skill

y Absence of even one type can lead to failure

y Managers use Conceptual, human & technical skills to

perform the four management functions of planning,

organizing, leading & controlling in all organizations


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Management Types

y Not all managers jobs are the same

y Managers are responsible for different departments

y Different levels in the hierarchy

y Mary Lee Middle manager at Rubbermaid

y Philip Knight- CEO for Nike

y Both are Managers in different amounts and ways


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Management Levels

SOURCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, Chutes and Ladders: Growing the General Manager, Sloan Management Review (Spring 1989), 27-37.


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y Top manager

y Middle /Project Manager

y First Line managers

y Functional Manager

y General Manager

Assignment

Vertical Differences

Horizontal Differences


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Horizontal Differences

y Functional managers, responsible for departments that

perform a single functional task

y General managers, responsible for several departments that

perform different functions


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Top Managers

y Top managers are at the top of the hierarchy & responsible for

the entire Organization

y President

y Chairperson

y Executive director

y Chief Executive Officer

Responsible for Org goals, defining strategies for achieving them,

monitoring & interpreting the external environment & making

decisions that affect the entire Org


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Middle Managers

y Works at the middle levels of the Organization & is

responsible for major departments

y Department head (manufacturing-accounting)

y

Division heady Manager of quality control etc

y Have more management levels beneath them

y They concerned with the near future & expected to establish

good relationships with peers around the Org, encourageteamwork & resolve conflicts


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y Middle managers make thousands of decisions that go into

the production of goods & services

y

Which first line supervisors should be chosen for thisparticular project?

y Where can we find the highest-quality resources?

y How should employees be organized to allow them to make

the best use of resources?


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Project managers

y A manager responsible for a temporary work project that

involves the participation of other people at similar level in

the organization

y Manage horizontally and give up their management

responsibilities when they project is finished

y Manager ofone project may be a team member on another

project

The participation of middle managers in different projects &managing horizontally without adding positions to the

hierarchy


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Line Managery At the base of the managerial hierarchy are First Line

Managers ( often called supervisor, line manager, officemanager etc)

y Responsible for daily supervision of nonmanagerial

employeesy Primary concern- application of rules & procedures to

achieve efficient production-provide technical assistance &motivate subordinates

When Michael Dell started his company- he performed as firstline manager/ supervisor to control computer assembly

process


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Functional Departments

y Advertising

y Sales

y

Financey Human resources

y Manufacturing

y Accounting


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Ten Manager RolesThree Conceptual Categories

Informational Interpersonal Decisional

Monitor

Disseminator

Spokesperson

Figurehead

Leader

Liaison

Entrepreneur

Disturbance handler

Resource allocator

Negotiator

Managing

through

information

Managing

through peopleManaging

Action


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Informational roles

y General Managers spend about 75% of their time talking to

other people

y

Manager analyzes information from inside& outside the Organization

Example: Manager Canadian insurance Co takes a turn at the

switchboard every 40 days- plugging directly into customer

& employee satisfaction

Monitor


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Disseminator & Spokesperson

Manager transmits current information to others-

Both inside and outside the organization, who can use it

Example: communicate to employees the Organizations

vision & purpose

managers using information to promote the ORG

so that people inside & outside the ORG respond positively to it

Example : Danish Captain of an SAS airplane as Manager

Spokesperson

Disseminator

t


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nterpersona o esPertain to relationships with others & are related to the human skills

handling ceremonial & symbolic activitiesfor the department OR organization

relationship with subordinates, including

motivation, communication & influence

Link & coordinate the activities of people &groups both inside & outside ORG

Example: Face to face discussions between a controller and plansupervisor to resolve a misunderstanding about the budget Bill

Gates Personify his ORG

Figurehead Role

Leader Role

Liaison Role


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Decisional RolesThose events about which manager should must make a choice

& take action

y Skills required for these roles are ?

roles involve initiation for change

Managers constantly think about the future & how to

get there

resolving conflicts among subordinates or

between managers department & other departments

Example: division manager (Furniture manufacturing got involved in apersonal dispute between two sections)

Entrepreneur

DisturbanceHandler


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decisions about how to allocate people, time,

equipment, budget and other resources to attain desired outcomes

y Example: manager decide which projects receive budget

allocations-which of several customer complaints receive priority-how to spend his/her time

involves formal negotiations & bargaining to attain

outcomes for the managers unit of responsibilityExample: supplier about late delivery Union worker grievance

during the normal workday

Resource allocator

Negotiator


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The manager who only communicates or only

conceives never gets anything done, while the

manager who only does ends up doing it all

alone


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Supervisory

Managers

Middle

Managers

Top

Managers

Hierarchial Levels

Leader role

Liaison roleHigh

Med

Low

SOURCE: Based on information from A.I. Kraut, P.R. Pedigo, D.D. McKenna, and M.D. Dunnette, The Role of the Manager:

Whats Really Important in Different Management Jobs, Academy of Management Executive 3 (1989), 286-293.

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Chapter 1 - Mgt