Chapter 1 (introduction to management)

MGT 420 INTRODUCTION TO

MANAGEMENT

CHAPTER 1Week 1

Outlines of the chapter

1. What is management2. Levels of management3. Managerial skills4. Managerial roles5. Process of management6. Contemporary manager

© 2007 Thomson/South-Western. All rights reserved. 1–3

What is Management?

• The Classic Definition– The art of getting things done through people.

–Mary Parker Follett

• A Broader Definition– The process of administering and coordinating

resources effectively, efficiently, and in an effort to achieve the goals of the organization.


The Organization

• An Organization– A group of individuals who work together toward

common goals.

• What do all organizations have in common?– They are composed of people whose efforts must

be coordinated if the organization is to accomplish its goals.


Managers• Managers are the people who plan, organize, lead, and

control the activities of the organization so that its goals can be achieved.


Figure 1.1 The Management Process


Planning And Organizing• Planning

– Setting goals and defining the actions necessary to achieve those goals.

– It covers all levels ranging from top management to middle management group.

• Organizing– The process of determining the tasks to be done, who

will do them, and how those tasks will be managed and coordinated.

– Organizing is important in ensuring information, resources and task flow logically and efficiently through the organization.


Leading• Leadership

– The capacity to direct and motivate the members of work groups toward the accomplishment of organizational goals.

• Leadership Skills:– Understanding individual/group behavior dynamics

– Having the ability to motivate employees

– Being an effective communicator

– Being able to envision future and share that vision


Controlling• Monitoring the performance of the organization and

its progress in implementing strategic and operational plans.

• It includes:- what is required to achieve goals- measuring what actually happened and or is being done.– Identifying deviations between planned and actual

results.– Taking corrective action– Ensuring that the organization is moving toward the

achievement of its goals.


Measuring managerial performance

• Effectiveness– Achieved when the organization pursues appropriate

goals.– This means “doing the right things.”

• Efficiency – Achieved by using the fewest inputs (e.g., people and

money) to generate a given output.– This means “doing things right.”

• The end result of effective and efficient management is organizational success.


Figure 1–5 An Overall Framework of Management


Chief Executive General Chief Executive General Parts Inc.Parts Inc.

Plant Manager

Service Manager

Account Manager

Payroll Manager

A functional manager is responsible for a work group segmented by

function.

A functional manager is responsible for a work group segmented by

function.

VP of VP of ProductionProduction

VP of Finance

Scope of Responsibility:Functional and General Managers

A general manager is responsible for several functional work groups.

A general manager is responsible for several functional work groups.

Managers responsibility

• Functional managers;responsible for work groups that are segmented according to function. E.g; manager of an accounting department. They have to work inter departments or units.

• General managersresponsible for ensuring that several functions or parts of the organization work together effectively. They must coordinate and integrate the work of diverse parts of the organization.


Figure 1.3 Managerial Levels (managers at different level)

Managers at different level• First line managers

Eg. production supervisor. The objective is to ensure that the products and services of their organizations are delivered to customers on a day-to day basis.

• Middle managers (linking groups)Eg. Department head. They perform as a linkages between top managers and first line managers. The objective is to allocate resource effectively and manage the first line managers who supervise the work group so that the overall goals of the organization can be achieved.

• Top level managers (an eye on the outside)eg. CEO, CFO. They provide strategic direction for the organization. Have the ability to think, analyze causes, effects and consequences.


Management Skills• Technical Skills

– The ability to utilize the knowledge of tools, techniques, and procedures that are specific to a particular field.

• Human Skills– The ability to work effectively with one’s own work

group as well as others within the organization.• Conceptual Skills

– The ability to process information about the internal/external environment of the organization and determine its implications.


Figure 1.4 Skills Needed at Different Levels of Management

Management skills• Technical skills tend to be most important for first

line managers.• Human skills are most important for middle

managers because these managers must coordinate the efforts of members of one’s work group as well as coordinate with other work group within the organization.

• The top level managers need to have strong conceptual skills if they are to effectively accomplish their jobs.

Managerial roles• Role is the basic behavior that is expected in a

particular situation.• The work of Henry Mintzberg is widely used to

explain the roles that managers typically perform.• There are three categories of roles that have been

found:1. Interpersonal roles2. Informational roles3. Decisional roles.


Figure 1.2 Mintzberg’s Managerial Roles (Managerial roles)


Mintzberg’s Managerial Roles• Interpersonal Roles

– The manager’s responsibility for managing relationships with organizational members and other constituents:

• Figurehead (perform certain duties that are primarily ceremonial in nature, e.g attend social event).

• Leader (they work with and through their employees to ensure that the organization’s goal are met).

• Liaison (they coordinate the activities between individuals and work groups within the organization and develop favorable relationship with outside organization, e.g social responsibility)


Mintzberg’s Managerial Roles (cont’d)

• Informational Roles– The manager’s responsibility for gathering and

disseminating information to the stakeholders of the organization (communication center and source)

• Monitor (managers continually scan the internal and external environments of their organizations for useful information – opportunities and threats)

• Disseminator (managers share and distribute the information so that the employees can perform their work)

• Spokesperson (managers must often communicate information to individual outside their units and their organization).


Mintzberg’s Managerial Roles (cont’d)

• Decisional Roles– The manager’s responsibility for processing information

and reaching conclusions:

• Entrepreneur (managers initiates projects that capitalizes on opportunities that have been identified)

• Disturbance handler (they must cope with conflict and handle disturbances)

• Resource allocator (managers determine which projects will receive organizational resources)

• Negotiator (managers spend a good portion of their time negotiating with employees, suppliers and others.


Challenges of Management:Managing in the 21st Century

• What’s different?– The rate of change continues to increase

• What’s the same?– The same basic business, economic, and managerial

principles still apply• Important change factors:

– The Internet and information technology– Increasing globalization– Increasing diversity– Intellectual capital– Increased emphasis on ethics.


The Internet And Information Technology

• Electronic commerce is working.– E-businesses are using basic managerial and business

principles and are profitable.– Traditional, brick-and-mortar businesses use of the

Internet as a complement their existing businesses.• Benefits of Information Technology

– Instant feedback from the market– More sharing of information internally– Tighter links to suppliers– Increased globalization and global expansion


Increasing Globalization of the Marketplace

• Globalization– Various companies moving to multiple countries

and doing business in multiple countries.• The international business environment

– Involves most organizations—even the smallest business can reach a global marketplace with relative ease.

– Presents unique managerial challenges in terms of complexity and a broader set of environmental forces.


Increasing Diversity in the Workplace

• Diversity– The heterogeneity of the population and work

force

• The challenge of diversity– Developing the strong organizational culture and

group cohesiveness required for organizational success when the workplace includes people with different backgrounds, from different nations, or with different cultural frames of reference.


The Growing Importance of Intellectual Capital

• Intellectual capital– The sum and synergy of an organization’s

knowledge, experience, relationships, processes, discoveries, innovations, market presence and community influence.

• Major categories of intellectual capital– Structural capital– Customer capital– Human capital


Categories of Intellectual Capital

• Structural capital– The accumulated knowledge of the organization

represented by its patents, trademarks and copyrights, proprietary databases, and systems.

• Customer capital– The value of established relationships with customers

and suppliers.• Human capital

– The cumulative skills and knowledge of the organization.


Ethics• Ethical Behavior

– Behavior that is considered by most to be acceptable.

• Sarbanes–Oxley Act – Requires businesses to use certain

accounting rules that would prohibit the many financial abuses by managers that came to light in recent years.

Chapter 1 (introduction to management)

Education

1 mintzbergs managerial roles

top level managers

middle managers

work group

line managers

organizational success

work groups

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