The The Management Management Process TodayProcess Today

Chapter One

Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Learning ObjectivesLearning Objectives

LO1 Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals

LO2 Distinguish among planning, organizing, leading, and controlling (the four managerial functions), and explain how managers’ ability to handle each one can affect organizational performance

LO3 Differentiate among three levels of management, and understand the tasks and responsibilities of managers at different levels in the organizational hierarchy

1-2

Learning ObjectivesLearning Objectives

LO4 Distinguish between three kinds of managerial skill, and explain why managers are divided into different departments to perform tasks more efficiently and effectively

LO5 Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced information technology (IT)

LO6 Discuss the principal challenges managers face in today’s increasingly competitive global environment

1-3

What is Management?What is Management?

• Management – The planning, organizing, leading, and

controlling of human and other resources to achieve organizational goals effectively and efficiently

1-4

What is Management?What is Management?

• Organizations– Collections of people

who work together and coordinate their actions to achieve a wide variety of goals

1-5

What is Management?What is Management?

• Managers – The people responsible for supervising the use of

an organization’s resources to meet its goals– Resources include people, skills, know-how,

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

1-6

Achieving High PerformanceAchieving High Performance

• Organizational Performance – A measure of how efficiently and effectively

managers use organizational resources to satisfy customers and achieve goals

1-7

Efficiency, Effectiveness, andEfficiency, Effectiveness, andPerformance in an OrganizationPerformance in an Organization

1-8Figure 1.1

Organizational PerformanceOrganizational Performance

• Efficiency – A measure of how well

or productively resources are used to achieve a goal

• Effectiveness– A measure of the

appropriateness of the goals an organization is pursuing and the degree to which they are achieved.

1-9

Why study management?Why study management?

• The more effective and efficient use an organization can make of resources, the greater the relative well-being of people

• Almost all of us encounter managers because most people have jobs and bosses

• Understanding management is one important path toward obtaining a satisfying career

1-10

Four Tasks of ManagementFour Tasks of Management

1-11Figure 1.2

PlanningPlanning

• Planning – Process of identifying

and selecting appropriate goals and courses of action

1-12

Steps in the Planning ProcessSteps in the Planning Process

1. Deciding which goals to pursue2. Deciding what strategies to adopt to attain

those goals3. Deciding how to allocate organizational

resources

1-13

PlanningPlanning

• Strategy – cluster of decisions about what goals to pursue,

what actions to take, and how to use resources to achieve goals

1-14

OrganizingOrganizing

• Organizing – structuring working relationships so organizational

members interact and cooperate to achieve organizational goals.

1-15

OrganizingOrganizing

• Organizational Structure – A formal system of task and reporting

relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals

1-16

LeadingLeading

• Leading – Articulating a clear vision and energizing and

enabling organizational members so they understand the part they play in attaining organizational goals

1-17

ControllingControlling

• Controlling – Evaluating how well an organization is achieving

its goals and taking action to maintain or improve performance

• The outcome of the control process is the ability to measure performance accurately and regulate efficiency and effectiveness

1-18

Question?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

1-19

Levels and Skills of ManagersLevels and Skills of Managers

• Department– A group of people who work together and

possess similar skills or use the same knowledge, tools, or techniques to perform their jobs

1-20

Levels of ManagementLevels of Management

• First line managers – Responsible for the daily supervision of non-

managerial employees

• Middle managers – Supervise first-line managers and are responsible

for finding the best way to use resources to achieve organizational goals

1-21

Levels of ManagementLevels of Management

• Top managers – establish organizational goals, decide how

departments should interact, and monitor the performance of middle managers

1-22

Levels of ManagersLevels of Managers

1-23Figure 1.3

Relative Amount of Time That Managers Spend Relative Amount of Time That Managers Spend on the Four Managerial Taskson the Four Managerial Tasks

1-24Figure 1.4

Levels of ManagersLevels of Managers

• Top-management team – group composed of the CEO, COO, and the heads

of the most important departments

1-25

Question?Question?

Which management skill is the ability to understand, alter, lead, and control the behavior of other individuals and groups?

A. ConceptualB. HumanC. TechnicalD. Technological

1-26

Managerial SkillsManagerial Skills

• Conceptual skills– The ability to analyze and diagnose a situation and

distinguish between cause and effect.

• Human skills– The ability to understand, alter, lead, and control the

behavior of other individuals and groups.

• Technical skills– The specific knowledge and techniques required to

perform an organizational role.

1-27

Question?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

1-28

Technical SkillsTechnical Skills

• Core competency – Specific set of skills, abilities, and experiences that

allows one organization to outperform its competitors

1-29

Types and Levels of ManagersTypes and Levels of Managers

1-30Figure 1.5

Recent Changes in Management PracticesRecent Changes in Management Practices

• Restructuring – downsizing an organization by eliminating the jobs

of large numbers of top, middle, or first-line managers and non-managerial employees

1-31

Recent Changes in Management PracticesRecent Changes in Management Practices

• Outsourcing – contracting with another company, usually in a

low cost country abroad, to perform an activity the company previously performed itself

• Increases efficiency because it lowers operating costs, freeing up money and resources that can be used in more effective ways

1-32

Empowerment and Self-Managed Empowerment and Self-Managed TeamsTeams

• Empowerment – Expansion of employees’

knowledge, tasks, and decision-making responsibilities

1-33

Empowerment and Self-Managed TeamsEmpowerment and Self-Managed Teams

• Self-managed team – a group of employees with the responsibility for

organizing, controlling, and supervising their own activities and for monitoring the quality of the goods and services they provide

1-34

Challenges for Management inChallenges for Management ina Global Environmenta Global Environment

• Rise of Global Organizations.

• Building a Competitive Advantage

• Maintaining Ethical and Socially Responsible Standards

• Managing a Diverse Workforce

• Utilizing IT and E-Commerce

• Practicing Global Crisis Management

1-35

Challenges for Management inChallenges for Management ina Global Environmenta Global Environment

• Global organizations– organizations that operate and compete in more

than one country

1-36

Building Competitive AdvantageBuilding Competitive Advantage

• Competitive advantage – Ability of one organization to outperform other

organizations because it produces desired goods or services more efficiently and effectively than they do

1-37

Building Blocks of Competitive Building Blocks of Competitive AdvantageAdvantage

1-38Figure 1.6

Building a Competitive AdvantageBuilding a Competitive Advantage

• Innovation – process of creating new or improved goods and

services or developing better ways to produce or provide them

1-39

Practicing Global Crisis ManagementPracticing Global Crisis Management

Crisis management involves making important choices about how to:

1. Create teams to facilitate rapid decision making and communication

2. Establish the organizational chain of command3. Recruit and select the right people4. Develop bargaining and negotiating strategies to

manage conflicts

1-40

Video Case: Changing Times at DysonVideo Case: Changing Times at Dyson

• What strategy has James Dyson used to develop and sell products like his cyclonic vacuum cleaner?

• What leadership qualities does James Dyson exhibit?

1-41