Chapter 6 - PPT Introduction to Management

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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) © Oxford Fajar Sdn. Bhd. (008974-T), 2012
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© Oxford Fajar Sdn. Bhd. (008974-T), 2012
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Define what an organization is.
Describe managers and the three managerial levels in organizations.
Describe management as a process.
Explain communication as an effective tool in organizations.
Explain the differences between efficiency and effectiveness, and their importance for organizational performance.
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Describe the skills needed by managers and how they differ according to managerial levels.
Explain the roles of managers in organizations.
Describe the five types of organizational structures.
Explain four main theories of motivation.
LEARNING OUTCOMES (cont.)
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ORGANIZATION
An organization is a systematic arrangement of people who work together to achieve a common purpose.
There are two types of organizations:
– Profit-oriented
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CORE ELEMENTS OF AN ORGANIZATION
There are three core elements that are common in all organizations:
– Organizational goals
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co-ordinate, guide and supervise the work and performance of other organizational members, to attain organizational goals.
A manager’s success depends very much on his/her ability to get things done through other individuals.
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Top-level managers
Set the goals and provide the strategic directions for the organization.
Accountable for the overall management of the organization.
Examples; President, Chief Executive Officer, Vice-President
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Responsible for carrying out the goals set by top management.
Perform as linkages between the top level and the first-line managers.
Examples; District Manager, Division Manager
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Interact and work most closely with the operational employees.
Responsible to direct and supervise the actual day-to-day work of the organization at the operating level.
Examples; Supervisor, Team Leader
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What Is Management?
Management
The process of getting things done effectively and efficiently, with and through people
Effectiveness
“Doing the right things”, doing those tasks that help an organization reach its goals
Efficiency
Concerned with the means, efficient use of resources like people, money, and equipment
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Management is the process and activities involved in pursuing organizational goals efficiently and effectively by planning, organizing, leading and controlling the organization’s resources.
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Planning involves setting appropriate and clear goals and objectives, and establishing appropriate strategies to accomplish them.
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Leading
Leading is a process of motivating subordinates, and inspiring others, towards achieving the organizational goals.
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Controlling
Controlling is the process to ensure that performance is as planned and taking the necessary corrective actions/changes when needed.
MANAGEMENT FUNCTIONS (cont.)
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The Control Process
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Areas of Management
Human Resource Managers
Operations Managers
Marketing Managers
responsible for getting products from producers to consumers.
Most companies have human resource managers who hire and train employees, evaluate performance, and determine compensation. At large firms, separate departments deal with recruiting and hiring, wage and salary levels, and labor relations.
The term operations refers to the systems by which a firm produces goods and services. Among other duties, operations managers are responsible for production, inventory, and quality control. Manufacturing companies such as Texas Instruments, Ford, and Caterpillar have a strong need for operations managers at many levels.
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design and implement systems to gather, organize, and distribute information
Financial Managers
plan and oversee accounting functions and financial resources
Occupying a fairly new managerial position in many firms, information managers design and implement systems to gather, organize, and distribute information. Huge increases in both the sheer volume of information and the ability to manage it have led to the emergence of this important function.
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Robert Katz and others describe four critical skills in managing
Conceptual Skills
Interpersonal Skills
Technical Skills
Political Skills
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The degree to which an organization achieves its goals.
It is about doing the right things, typically in terms of quantity as well as quality.
Efficiency
The degree of how well resources are used to achieve a goal.
It is about doing the things right.
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Interpersonal roles are primarily concerned with relationships with other people. The three roles under interpersonal roles are figurehead, leader, and liaison.
Informational Roles
Managers obtain information and must communicate information to people inside and outside the organization. The three informational roles are monitor, disseminator and spokesperson.
Decisional Roles
Decisional roles require managers to plan strategy and utilize resources. There are four decision roles: entrepreneur, disturbance handler, resource allocator, and negotiator.
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MANAGERIAL ROLES (cont.)
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ORGANIZATIONAL STRUCTURE
Organizational structure is the organization’s formal framework by which tasks and jobs are divided, grouped and coordinated.
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Decentralized firms tend to have relatively fewer layers of management, resulting in a flat organizational structure like that of the hypothetical
law firm shown in Figure 6.3(a).
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Tall Organizational Structure
characteristic of centralized companies with multiple layers of management
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Span of Control
The distribution of authority in an organization also affects the number of people who work for any individual manager.
Span of Control
number of people supervised by one manager
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FUNCTIONAL STRUCTURE
In a functional structure, work activities are grouped according to functions.
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PRODUCT STRUCTURE
Product structures group all activities and functions needed to produce and market a particular product/service under one unit/
department.
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GEOGRAPHICAL STRUCTURE
In a geographical structure, units are divided according to location or geographical area.
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CUSTOMER STRUCTURE
In a customer structure, units are divided according to the type of customers an
organization has.
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A matrix structure is a two-dimensional reporting structure that simultaneously groups people and resources by function and by project.
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MOTIVATING EMPLOYEES
Motivation is the driving force that is capable of bringing out the best in people.
A highly motivated person always strive to work harder than an unmotivated person.
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HIERARCHY OF NEEDS THEORY
According to Maslow, there are five categories of needs that people seek to satisfy:
Physiological needs
Physiological needs are the most basic human needs such as food, shelter, clothing and water.
Safety needs
These are the basic needs for a safety and security.
Belongingness needs
Relate to the desire for social interaction, relationships and friendship with others.
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Esteem needs
Relate to the desire to feel good about oneself and receive recognition from others.
Self-actualization needs
Relate to the desire for psychological development and growth to realize one’s full potential as a human being.
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THEORY X AND THEORY Y
Theory X is a negative view that assumes employees are inherently lazy and relatively lack ambitions at work.
Theory Y is a positive view that assumes employees are ambitious, self-motivated and willing to accept greater responsibilities.
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Motivating factors
Factors that are related to the nature of the work itself (autonomy, responsibility, personal growth, appreciation and recognition).
Motivator factors are sources of job satisfaction.
Hygiene factors
When hygiene needs are not met, employees become dissatisfied.
Satisfying hygiene needs will lead to no dissatisfaction, but will not necessarily make employees satisfied.
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EXPECTANCY THEORY
1. Expectancy
The degree of expectation that exerting an amount of effort will lead to certain performance.
2. Instrumentality
The degree to which an individual believes that performance will lead to attaining desired outcomes.
3. Valence
The attractiveness of outcomes as the result of effort and performance.
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Questions
1) Hewlett-Packard decides to move toward a more centralized structure. This is an example of which function in the management process?
A) planning
B) leading
C) organizing
D) controlling
E) monitoring
Answer: C
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2) Comparing actual performance against standards is an example of which function of the management process?
A) planning
B) organizing
C) leading
D) controlling
E) strategizing
Answer: D
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3) Steve motivates employees by rewarding them with additional vacation when standards are achieved. This is an example of which function in the management process?
A) leading
B) planning
C) organizing
D) marketing
E) strategizing
Answer: A
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Questions
4) Which type of business constituent has titles such as President and CEO?
A) first-line managers
B) top managers
C) middle managers
D) power brokers
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5) Which level of management sets general policies, formulates strategies, approves all significant decisions, and represents the company in dealings with other firms and with government bodies?
A) operations managers
B) production managers
C) top managers
D) middle managers
E) first-line managers
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6) Titles such as plant manager, operations manager, and division manager designate which level of management?
B) middle managers
C) top managers
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7) The titles supervisor, office manager, and group leader are examples of which level of management?
A) top management
B) middle management
C) first-line management
D) operations management
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8) Which of the following are responsible for production and quality control?
A) information managers
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9) Camille Graham is a manager who works well with people and makes them feel excited about their work. What type of skills is she illustrating?
A) human relations skills
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10) Which of the following managers depend most on conceptual skills?
B) top managers
C) middle managers
D) marketing managers
E) financial managers
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11) Doreen Madison has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of what function of the management process?
A) planning
B) organizing
C) leading
D) controlling
E) budgeting
Answer: D
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Questio n
12) Determining how people performing certain tasks can best be grouped together is called what?
A) departmentalization
B) specialization
C) controlling
D) leadership
E) directing
Answer: A
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13) What type of departmentalization does Kraft Foods use by having separate divisions for different types of foods?
A) customer
B) functional
C) geographic
D) product
E) brand
Answer: D
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14) In tall organizations, which feature describes the span of control?
A) short
B) tall
C) wide
D) narrow
E) vertical
Answer: D
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Questions
15) Silver Designs is a high-end clothing manufacturer. They have three divisions producing clothes for men, women, and teens. What is this an example of?
A) functional departmentalization
B) process departmentalization
C) customer departmentalization
D) product departmentalization
E) geographic departmentalization
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16) At Ace Products, three vice presidents report to the CEO, including the VP for Finance, the VP for Marketing, and the VP for Operations. What type of structure does Ace Products have?
A) divisional
B) matrix
C) regional
D) functional
E) international
Answer: D
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Questions
48) According to Maslow's model, a set of needs will be a motivator until which of the following occurs?
A) The needs are satisfied.
B) New needs are identified.
C) The person becomes self-motivated.
D) A supervisor changes the work.
E) The needs are replaced by hygiene factors.
Answer: A
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Questions
58) Which of the following helps explain why some people do not work as hard as they can when their salaries are based purely on seniority?
A) two-factor theory
C) scientific management
D) expectancy theory
Answer: D
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Chapter 6 - PPT Introduction to Management

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