Bus 201 chapter 1 presentation 129627294097993750

Chapter One

Managers and Managing

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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What is Management?

All managers work in organizations Organizations ≈collections of people who work together and

coordinate their actions to achieve a wide variety of goals or desired future outcomes.

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What is Management?

Managers ≈The people

responsible for supervising the use of an organization’s resources to meet its goals

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What is Management?

Management ≈The planning, organizing, leading, and

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

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ORGANIZATIONAL PERFORMANCE

Organizational performance is how effectively and efficiently a manager uses resources to satisfy customers and reach organizational goals.

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Organizational Performance

Efficiency ≈A measure of how well or how productively resources are used to achieve

a goalEffectiveness

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

Organizations are efficient when managers minimize the amount of input resources such as labor, raw materials and component parts, or the amount of time needed to produce a given output of goods and services.

Organizations are effective when managers choose appropriate goals and then achieve them.

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Figure 1.1

Efficiency and Effectiveness

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Why Study Management?

1. The more efficient and effective use of scarce resources that organizations make of those resources, the greater the relative well-being and prosperity of people in that society

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Why Study Management?

2. Helps people deal with their bosses and coworkers

3. Opens a path to a well-paying job and a satisfying career

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Four Functions of Management

Figure 1.2

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Steps in the Planning Process

1. Deciding which goals the organization will pursue

2. Deciding what courses of action to adopt to attain those goals

3. Deciding how to allocate organizational resources

The outcome of planning is a STRATEGY.

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Organizing

Involves grouping people into departments according to the kinds of job-specific tasks they perform

Managers lay out lines of authority and responsibility

Decide how to coordinate organizational resources

The outcome of organizing is the creation of an ORGANIZATIONAL STRUCTURE.

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Organizing

Organizational structure≈A formal system of task and reporting

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

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Leading

Leadership involves using power, personality, and influence, persuasion, and communication skills

It revolves around encouraging all employees to perform at a high level

Outcome of leadership is highly motivated and committed workforce

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Controlling

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

Managers must decide which goals to measure

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Performing Managerial Tasks

Mintzberg identified ten managerial roles through observation.

He grouped these roles according to whether the responsibility was primarily decisional, interpersonal or informational in nature.

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Decisional Roles

Roles associated with methods managers use in planning

strategy and utilizing resources.≈Entrepreneur—deciding which new projects or programs to

initiate and to invest resources in. ≈Disturbance handler—managing an unexpected event or

crisis.≈Resource allocator—assigning resources between

functions and divisions, setting the budgets of lower managers.

≈Negotiator—reaching agreements between other managers, unions, customers, or shareholders.

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Interpersonal Roles

Roles that managers assume to provide direction and

supervision to both employees and the organization as a

whole.≈Figurehead—symbolizing the organization’s mission and

what it is seeking to achieve.≈Leader—training, counseling, and mentoring high employee

performance.≈Liaison—linking and coordinating the activities of people

and groups both inside and outside the organization.

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Informational Roles

Roles associated with the tasks needed to obtain and

transmit information in the process of managing the

organization.≈Monitor—analyzing information from both the internal and

external environment.≈Disseminator—transmitting information to influence the

attitudes and behavior of employees.≈Spokesperson—using information to positively influence the

way people in and out of the organization respond to it.

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Levels and skills of managers

To perform the four managerial tasks efficiently and effectively, organizations differentiate or group their managers in two main ways:≈By level in hierarchy≈By type of skill

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Levels of Management

Figure 1.3

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Levels of Management

First-line managers ≈responsible for the daily supervision of the

nonmanagerial employees≈often called supervisors

Middle managers ≈responsible for finding the best way to organize

human and other resources to achieve organizational goals

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Levels of Management

Top managers ≈responsible for the performance of all departments≈establish organizational goals≈decide how different departments should interact≈monitor how well middle managers utilize resources to

achieve goals

≈Top management team: consists of CEO, COO, the president, and the heads of the most important departments.

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Areas of Managers

Department≈ A group of managers and employees who

work together and possess similar skills or use the same knowledge, tools,or techniques

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

Figure 1.4

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Managerial 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. The ability to communicate, coordinate, motivate people, mold them into cohesive teams…

Technical skills≈Job-specific skills required to perform a particular type

of work or occupation at a high level.

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Core Competency

Core competency≈Specific set of departmental skills, abilities,

knowledge and experience that allows one organization to outperform its competitors

≈Skills for a competitive advantage

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Recent changes in management practices

As a result of changes in global competition and advances in IT, the tasks and responsibilities of managers have been changing dramatically in recent years.

There is increased pressure on managers to improve efficiency and effectiveness.

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Recent changes in management practices

To increase efficiency and effectiveness, managers have been restructuring organizations and outsourcing specific organizational activities.

Restructuring≈Involves simplifying, shrinking, or downsizing an

organization’s operations to lower operating costsOutsourcing

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

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Recent changes in management practices

Another way to increase efficiency and effectiveness is enpowerment or forming self-managed teams.

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Recent changes in management practices

Empowerment≈Involves giving employees more authority and

responsibility over the way they perform their work activities

Self-managed team≈A group of employees who assume responsibility for

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

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Challenges for Management ina Global Environment

Rise of Global Organizations.Building a Competitive AdvantageMaintaining Ethical StandardsManaging a Diverse WorkforceUtilizing Information Technology and E-

CommerceGlobal Crisis Management

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Building Competitive Advantage

Competitive Advantage ≈ability of one organization to outperform other

organizations because it produces desired goods or services more efficiently and effectively than its competitors

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Building Blocks of Competitive Advantage

Figure 1.6

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Turnaround Management

Turnaround management ≈creation of a new vision for a struggling

company using a new approach to planning and organizing to make better use of a company’s resources to allow it to survive, and eventually prosper

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Maintaining Ethical and Socially Responsible Standards

Managers are under considerable pressure to make the best use of resources

Too much pressure may induce managers to behave unethically, and even illegally

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Managing a Diverse Workforce

To create a highly trained and motivated workforce managers must establish HRM procedures that are legal, fair and do not discriminate against organizational members