download Management

•    The Management Process

•    Learning Objectives

•    After studying the chapter, you should be able to:

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

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

•    Learning Objectives (cont’d)

ØDifferentiate among three levels of management, and understand the responsibilities of managers at different levels in the organizational hierarchy.

ØIdentify the roles managers perform, the skills they need to execute those roles effectively and the way new information technology is affecting these roles and skills.

ØDiscuss the principal challenges managers face in today’s increasingly competitive global environment.

•    What Is Management?

•    Management

ØThe planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently.

•    Managers

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

•    Resources are organizational assets

ØPeople       ØSkills                   ØKnowledge ØInformation

ØRaw materials       ØMachinery  ØFinancial capital

•     Efficiency, Effectiveness, and Performance in an Organization

•    Organizational Performance

•    Organizational Performance

ØA measure of how efficiently and effectively managers are using organizational resources to satisfy customers and achieve goals.

•    Efficiency

ØA measure of how well or productively resources are used to achieve a goal.

•    Effectiveness

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

•    Why Study Management?

•    Proper management directly impacts improvements in the well-being of a society.

•    Studying management helps people to understand what management is and prepares them accomplish managerial activities in their organizations.

•    Studying management opens a path to a well-paying job and a satisfying career.

•    Four Functions of Management

•    Managerial Functions

•    Henri Fayol

ØFirst outlined the four managerial functions in his book General Industrial Management.

ØManagers at all levels in all organizations perform each of the functions of planning, organizing, leading, and controlling.

•    Planning

•    Identifying and selecting appropriate goalsand courses of action for an organization.

ØThe planning function determines how effective and efficient the organization is and determines the strategyof the organization.

•    Three Steps in the Planning Process:

ØDeciding which goals to pursue.

ØDeciding what courses of action to adopt.

ØDeciding how to allocate resources.

•    Management Key Concepts

•    Organization

ØPeople working together and coordinating their actions to achieve specific goals.

•    Goal/objective

ØA desired future condition that the organization seeks to achieve.

•    Strategy

ØA cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.

•    Organizing

•    Structuring working relationshipsin a way that allows organizational members to work together to achieve organizational goals.

•    Organizational Structure

ØA formal system of task and reporting relationships that coordinates and motivates organizational members.

ØCreating organizational structure:

•   Grouping employees into departmentsaccording to the tasks performed.

•   Laying out lines of authorityand responsibility for organizational members.

•    Leading

•    Articulating a clear vision to follow, and energizing and enabling organizational members so they understand the part they play in attaining organizational goals.

ØLeadership involves using power, influence, vision, persuasion, and communication skills.

ØThe outcome of leadership is highly motivated and committed organizational members.

•    Controlling

•    Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance.

ØMonitoring individuals, departments, and the organization to determine if desired performance standards have been reached.

ØTaking action to increase performance as required.

ØThe outcome of control is the ability to measure performance accurately and to regulate the organization for efficiency and effectiveness.

•    Types of Managers

•    Levels of Management

Ø First-line managers

•   Responsible for day-to-day operations. Supervise people performing activities required to make the good or service.

Ø Middle managers

•   Supervise first-line managers. Are responsible to find the best way to use departmental resources to achieve goals.

Ø Top managers

•   Responsible for the performance of all departments and have cross-departmental responsibility.

•   Establish organizational goals and monitor middle managers.

•   Form top management team along with the CEO and COO.

•    Levels of Management

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

•    IT and Managerial Roles and Skills

•    Information Technology (IT) is increasingly used to help managers adopt a cross-departmental view of their organization.

•    Managerial Role

ØThe set of specific tasks that a person is expected to perform because of the position he or she holds in the organization.

•    Roles are defined into three role categories (as identified by Mintzberg):

ØInterpersonal       ØInformational     ØDecisional

•    Decisional Roles

•    Roles associated with methods managers use in planning strategy and utilizing resources:

ØEntrepreneur—deciding which new projects or programs to initiate and to invest resources in.

ØDisturbance handler—managing an unexpected event or crisis.

ØResource allocator—assigning resources between functions and divisions, setting the budgets of lower managers.

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

•    Informational Roles

•    Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization:

ØMonitor—analyzing information from both the internal and external environment.

ØDisseminator—transmitting information to influence the attitudes and behavior of employees.

ØSpokesperson—using information to positively influence the way people in and out of the organization respond to it.

•    Interpersonal Roles

•    Roles that managers assume to provide direction and supervision to both employees and the organization as a whole:

ØFigurehead—symbolizing the organization’s mission and what it is seeking to achieve.

ØLeader—training, counseling, and mentoring high employee performance.

ØLiaison—linking and coordinating the activities of people and groups both inside and outside the organization/department.

•    Being a Manager

•    Managerial Skills

•    Conceptual Skills

ØThe ability to analyze and diagnose a situation and distinguish between cause and effect.

•    Human Skills

ØThe ability to understand, alter, lead, and control the behavior of other individuals and groups.

•    Technical Skills

ØThe specific knowledge and techniques required to perform an organizational role.

•    Skill Types Needed by Managerial Level

•    Challenges for Management
in a Global Environment

•    Increasing Number of Global Organizations.

•    Building a Competitive Advantage.

•    Maintaining Ethical Standards.

•    Managing a Diverse Workforce.

•    Utilizing IT and E-commerce.

•    Building a Competitive Advantage

•    Increasing Efficiency

ØReducing the quantity of resources used to produce goods and services.

•    Increasing Quality

ØIntroducing Total Quality Management (TQM) to improve quality.

•    Increasing Speed, Flexibility, and Innovation

ØAdapting to bring new products to market faster.

•    Increasing Responsiveness to Customers

ØEmpowering employees to deal with customers.

•    Building Blocks of Competitive Advantage

•    Maintaining Ethical Standards

•    Factors Influencing Behaviors:

ØExternal pressures from stockholders/stakeholders for increased organizational financial performance.

ØInternal pressures from top management to lower-level managers to increase the organization’s competitive performance and profitability.

ØSocietal, cultural, and environment demands on the organization.

•    Managing a Diverse Workforce

•    The Increasing Diversity of the Workforce

•    Non-Discriminatory Employment Practices

•    Performance-Enhancing Benefits of a Diverse Workforce

•    Utilizing Information Technology (IT)
and E-commerce

•    Benefits of IT and E-commerce

ØMakes more and better information about the organization available to outsiders

ØEmpowers employees at all organizational levels

ØHelps managers carry out their roles more effectively and efficiently

ØIncreases awareness of competitive opportunities

ØMakes the organization more responsiveto its customers

•    Readings on the historical management gurus

•    Appendix A of chapter 1

•    Brief the management thoughts