Fundamentals of Management Lecture, chapter 1

Fundamentals of

Core Concepts & Applications

GriffinEighth Edition

MANAGEMENT

.

Chapter 1

Managing and the Manager’s Job

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6Table 1.1

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Management in Organizations

Inputs from the environment

• Human resources

• Financial resources

• Physical resources

• Information resources

Planning

and decision

making

Leading

Organizing

Controlling

Goals attained

• Efficiently

• Effectively

Figure 1.1

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Basic Purpose of Management

EFFICIENTLYUsing resources wisely and

in a cost-effective way

EFFECTIVELYMaking the right decisions and

successfully implementing them

And

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Efficiencyversus

Effectiveness

Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright © 1991 by Houghton Mifflin Company. Used with permissions.

Figure 1.2

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The Management Process (cont’d)

• Planning and Decision Making– Setting an organization’s goals and selecting a course of

action from a set of alternatives to achieve them.

• Organizing– Determining how activities and resources are grouped.

• Leading – The set of processes used to get organizational members

to work together to advance the interests of the organization.

• Controlling – Monitoring organizational progress towards goals.

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The Management Process

Organizing

Determining howbest to groupactivities and

resources

ControllingMonitoring

and correctingongoing activitiesto facilitate goal

attainment

Planning andDecision Making

Setting the organiza-tion’s goals and

deciding how bestto achieve them

Leading

Motivating membersof the organizationto work in the best

interests of theorganization

Figure 1.3

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What is a Manager?

According to Ricky W. Griffin:

• Someone whose primary responsibility is to carry out the management process.

• Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.

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Kinds of Managers by Level and Area

Middle managers

Areas of Management

Levels of Management

First-line managers

Top managers

Figure 1.4

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Kinds of Managers by Level• Top Managers

– The relatively small group of executives who manage the organization’s overall goals, strategy, and operating policies.

• Middle Managers– Largest group of managers in organizations who are

primarily responsible for implementing the policies and plans of top managers. They supervise and coordinate the activities of lower-level managers.

• First-Line Managers– Managers who supervise and coordinate the

activities of operating employees.

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Kinds of Managers by Area

• Marketing Managers

– Work in areas related to getting consumers and clients to buy the organization’s products or services.

• Financial Managers

– Deal primarily with an organization’s financial resources.

• Operations Managers

– Concerned with creating and managing the systems that create organization’s products and services.

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Kinds of Managers by Area (cont’d)

• Human Resource Managers

– Involved in human resource planning, recruiting and selection, training and development, designing compensation and benefit systems, formulating performance appraisal systems.

• Administrative Managers

– Generalists who are familiar with all functional areas of management and who are not associated with any particular management specialty.

Interpersonal

Informational

Decisional

1. Figurehead2. Leader3. Liaison

4. Monitor5. Disseminator6. Spokesperson

7. Entrepreneur8. Disturbance-handler9. Resource-allocator10. Negotiator

Managerial Roles

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• Represent the organization or department in legal, social, ceremonial, or symbolic activities

• Generally considered a top management function

• However, leaders throughout the organization can perform this role

• Includes:– Signing official documents

– Entertaining clients and official visitors

– Speaking engagements (formal and informal)

– Presiding at meetings and ceremonies

Interpersonal: Figurehead Role

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• Pervades all managerial behavior

• Influences how leaders perform other roles

• Includes:

– Hiring and training

– Giving instructions and coaching

– Evaluating performance

Interpersonal: Leader Role

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• Interacting with people outside the organizational unit

• Includes:– Networking– Developing relationships– Gaining information and favors– Serving on committees– Attending professional meetings– Keeping in touch with other people and

organizations

Interpersonal: Liaison Role

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• Gathers information

• Analyzes the information to discover problems and opportunities

• Includes:

– Reading memos, reports, and publications

– Talking to others

– Attending meetings

– Observing competitors

Informational: Monitor Role

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• Sends information to others

• Information passed via:– Oral means– Telephone or voice mail

– One-on-one discussions

– Meetings

– Written media– E-mail

– Printed documents

– Handwritten notes

Informational: Disseminator Role

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• Provides information to people outside the organizational unit

• Examples:– Meeting with the boss to discuss performance

– Meeting with the budget officer to discuss the unit budget

– Answering letters

– Reporting information to the government

Informational: Spokesperson Role

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• Innovative

• Initiation of improvements

• Examples:

– Developing new or improved products and services

– Developing new ways to process products and services

– Purchasing new equipment

Decisional: Entrepreneur Role

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• Takes corrective action during crisis or conflict situations

• Involves reactions to unexpected events• Leaders typically give this role priority• Examples:

– A union strike– Equipment breakdown– Needed material not arriving on time– Tight schedules

Decisional: Disturbance-Handler Role

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• Involves scheduling, requesting authorization, and performing budgeting activities

• Examples:– Deciding what is done now, later, or not at all

– Setting priorities and time management

– Allocating raises, overtime, and bonuses

– Scheduling employee, equipment, and material use

Decisional: Resource-Allocator Role

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• Represents their organizational unit in transactions without set boundaries

• Examples:

– Setting pay and benefits for a new professional employee or manager

– Reaching agreement on a labor union contract

– Contracting with customers or suppliers

Decisional: Negotiator Role

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Skills and the

Manager

Figure 1.6

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Fundamental Management Skills

• Technical– Skills necessary to accomplish or understand the

specific kind of work being done in an organization.

• Interpersonal– The ability to communicate with, understand, and

motivate both individuals and groups.

• Conceptual– The manager’s ability to think in the abstract.

• Diagnostic– The manager’s ability to visualize the most

appropriate response to a situation.

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Fundamental Management Skills (cont’d)

• Communication– The manager’s abilities both to convey ideas and

information effectively to others and to receive ideas and information effectively from others.

• Decision-Making– The manager’s ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities.

• Time-Management– The manager’s ability to prioritize work, to work

efficiently, and to delegate appropriately.

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Fundamental Management Skills

• Management Skill Mixes at Different Organizational Levels

Figure 1.7

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Management: Science or Art?

• The Science of Management– Assumes that problems can be approached using

rational, logical, objective, and systematic ways.– Requires technical, diagnostic, and decision-making

skills and techniques to solve problems.

• The Art of Management – Decisions are made and problems solved using a

blend of intuition, experience, instinct, and personal insights.

– Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities.

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Figure 1.8