The Management Process Today

Chapter

1

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What is Management?

The planning, organizing, leading, & controlling of human & other resources to achieve orgl goals effectively & efficiently.

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Organizations

Collections of people who work together &

coordinate their actions to achieve a

wide variety of goals.

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Managers

Managers – Supervise use of an organization’s

resources to meet its goalsResources - people, skills, know-how,

machinery, raw materials, computers & IT, & financial capital

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Organizational Performance

A measure of how efficiently & effectively mgrs are using organizational resources to satisfy customers & achieve goals

EfficiencyEffectiveness

1-6Figure 1.1

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Why study management?

Well-being of peopleAlmost all of us encounter managers Obtain a satisfying career

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Four Functions of Management

Figure 1.2

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Planning

Process of identifying & selecting appropriate goals & courses of action.

Deciding which goals to pursueDeciding what courses of action to adoptDeciding how to allocate resources

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Organizing

Process of establishing a structure of working relationships in a way that allows orgl members to interact & cooperate to achieve orgl goals.Organizational Structure – reporting

relationships

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Leading

Articulating a clear vision to follow, & energizing & enabling orgl members so they understand the part they play in attaining orgl goals.

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Controlling

Evaluating how well an org. is achieving its goals & taking action to maintain or improve performance.Outcome of control process is ability to

measure performance accurately & regulate efficiency & effectiveness.

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Is Management Career in Large Organization Right for

You?

I dislike following somebody else’s orders. I dislike having to compete against others with whom I

work. It is important for me to be liked by the people with

whom I work. I prefer to act in customary ways; to blend in with the

crowd. It is important for me to do things better or more

efficiently than they’ve ever been done before. I like to assert myself & take charge. I enjoy giving directions to others. It doesn’t bother me to do routine tasks.

1-Strongly Disagree 2-Disagree 3-Undecided 4-Agree 5-Strongly Agree

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Question?

What is a group of people who work together and possess similar skills or use the same knowledge, tools, or techniques?A. OrganizationB. DepartmentC. TeamD. Presentation Group

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Types of Managers

• First line managers - Responsible for the daily supervision of non-managerial employees.

• Middle managers - Supervise first-line managers. Are responsible to find the best way to use resources to achieve goals.

• Top managers - Responsible for performance of all depts. & have cross-departmental responsibility. Establish orgl goals, decide how different depts should interact & monitor middle mgrs.

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Types of Managers

Top Managers

Middle Managers

First-Line Managers

Executives

Managers or Directors

Supervisors

•President

•Vice President

•CFO

•Production Manager

•Sales Manager

•HR Manager

•Production Supervisor

•Regional Sales Manger

•Chief Bookkeeper

OrganizationalOrganizationalLevelLevel PositionPosition FunctionalFunctional

TitleTitle

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Relative Amount of Time That Managers Spend on the Four Managerial Functions

Figure 1.4

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Discussion Question

What type of manager is Rick Wagoner, Jr. of GM? What impact do his decisions have on the company?

A. Little impactB. Great ImpactC. Depends on the decisionD. Average impact

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Restructuring

Involves use of IT to downsize an org. by eliminating the jobs of large numbers of top, middle, or first-line managers & non-managerial employees.

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Outsourcing

Contracting with another company, usually in a low cost country abroad, to perform an activity the company previously performed itself.

Promotes efficiency by reducing costs & allowing an org. to make better use of its remaining resources.

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Empowerment & Self-Managed Teams

Empowerment - Expanding employees’ knowledge, tasks, and responsibilities by using powerful new software programs.

Self-Managed Teams - Groups of employees with the responsibility for supervising their own activities & for monitoring quality of goods & services they provide.

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Managerial Roles and Skills

Managerial role - set of specific tasks that a person is expected to perform because of position he/she holds in org.

Henry Mintzberg reduced thousands of tasks performed by mgrs. to 10 roles grouped into 3 broad categories:Decisional RolesInformational RolesInterpersonal Roles

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Decisional Roles

Roles associated w/ methods mgrs use in planning strategy & utilizing resources.Entrepreneur—deciding which new projects

or programs to initiate & to invest resources in.

Disturbance handler—managing an unexpected event or crisis.

Resource allocator—assigning resources b/w functions & divisions, setting budgets of lower mgrs.

Negotiator—reaching agreements b/w other mgrs, unions, customers, or shareholders.

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Informational Roles

Roles associated w/ tasks needed to obtain & transmit info. in process of managing the org.Monitor—analyzing info. from both internal &

external environment.Disseminator—transmitting info. to influence

attitudes & behavior of employees.Spokesperson—using info. to positively

influence the way people in & out of org. respond to it.

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Interpersonal Roles

Roles that mgrs assume to provide direction & supervision to both employees & org. as a whole.Figurehead—symbolizing the org’s mission &

what it is seeking to achieve.Leader—training, counseling, & mentoring

high employee performance.Liaison—linking & coordinating the activities

of people & groups both inside & outside the org.

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Managerial Skills

Conceptual skillsAbility to analyze & diagnose a situation &

distinguish b/w cause & effect.Human skills

Ability to understand, alter, lead, & control the behavior of other individuals & groups.

Technical skillsSpecific knowledge & techniques required to

perform an orgl role.

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MANAGEMENT INSIGHT: Steve Jobs Transforms Apple Computer

In 1976, Steve Jobs & Steve Wozniak invested $1350 to build a computer circuit board – Apple II PC

In 1985, Apple’s sales almost $2 billion.Jobs forced out of co.In 1997, Jobs again becomes CEO of

Apple.

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Question?

What is the specific set of abilities that allows one manager to perform at a higher level than another manager?

A. Skill-setsB. SKAsC. CompetenciesD. Skill traits

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Challenges for Management in

a Global EnvironmentRise of Global Organizations.Building a Competitive AdvantageMaintaining Ethical and Socially

Responsible StandardsManaging a Diverse WorkforceUtilizing IT and E-commerce

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Competitive Advantage

Ability of one org. to outperform other orgs. b/c it produces desired goods or services more efficiently & effectively than they do.Increasing EfficiencyIncreasing QualityIncreasing Speed, Flexibility, & InnovationIncreasing Responsiveness to Customers

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Building Blocks of Competitive Advantage

Figure 1.5