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

Chapter 1
The Management Process
Today

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
 What is Management?
• Management
–The planning, organizing, leading, and
controlling of human and other
resources to achieve organizational
goals effectively and efficiently

1-3
 What is Management?
• Managers
– The people responsible for supervising the
use of an organization’s resources to meet its
goals
– Resources include people, skills, know-how,
machinery, raw materials, computers and IT,
and financial capital

1-4
Management

• Manager
– A person who plans, organizes, leads, and
controls the work of others so that the
organization achieves its goals.
• Is responsible for contribution.
• Gets things done through the efforts of other people.
• Is skilled at the management process.
• Management Process
– Refers to the manager’s four basic functions of
planning, organizing, leading, and controlling.

5 1-5
Management Functions

Planning
Planning Organizing
Organizing

Management
Management
Functions
Functions

Controlling
Controlling Leading
Leading

6 1-6
 Planning
• Planning
– Process of identifying and selecting
appropriate goals and courses of action

1-7
 Organizing
• Organizing
– structuring working relationships in a way that
allows organizational members to interact and
cooperate to achieve organizational goals

1-8
 Leading
• Leading
– Articulating a clear vision and energizing and
enabling organizational members so they
understand the part they play in attaining
organizational goals

1-9
 Controlling
• Controlling
– Evaluating how well an organization is
achieving its goals and taking action to
maintain or improve performance

• The outcome of the control process is the

ability to measure performance accurately
and regulate efficiency and effectiveness

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 Management Process

HUMAN Planning PHYSICAL

RESOURCES RESOURCE
S
ng
lli
tro

ORGANIZATIONAL
n
Co

GOALS

ng
izi
n
ga
Or
INFORMATION Leading FINANCIA
RESOURCES L
11 RESOURCE1-11
 Organization

– A group of people with formally assigned

roles who work together to achieve the
stated goals of the group.
– Characteristics:
• Common purpose/goals
• Organizational structure

12 1-12
 Organizations as Systems

Structure
Inputs:
Outputs:
Material
Task Technology Products
Capital
Services
Human

People
(Actors)

Organizational Boundary

13 1-13
 Organizational Performance
• Efficiency
– A measure of how well or productively
resources are used to achieve a goal.
• Effectiveness
– A measure of the appropriateness of the goals
an organization is pursuing and the degree to
which they are achieved.

1-14
 Levels of Management
• First line managers
– Responsible for the daily supervision of non-
managerial employees
• Middle managers
– Supervise first-line managers and is
responsible for finding the best way to use
resources to achieve organizational goals

1-15
 Levels of Management
• Top managers
– establish organizational goals, decide how
departments should interact, and monitor the
performance of middle managers

1-16
Types of Managers

17 1-17
18 1-18
Management Skills

19 1-19
 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.
• Technical skills
– The specific knowledge and techniques required
to perform an organizational role.

1-20
 Technical Skills
• Core competency
– Specific set of skills, abilities, and experiences
that allows one organization to outperform its
competitors

1-21
 Recent Changes in
Management Practices
• Restructuring
– downsizing an organization by eliminating the
jobs of large numbers of top, middle, or first-
line managers and non-managerial
employees

1-22
 Recent Changes in
Management Practices
• Outsourcing
– contracting with another company, usually in
a low cost country abroad, to perform an
activity the company previously performed
itself
• Promotes efficiency by reducing costs and
allowing an organization to make better
use of its remaining resources

1-23
 Empowerment and Self-
Managed Teams
• Self-managed team
– a group of employees with the responsibility
for organizing, controlling, and supervising
their own activities and for monitoring the
quality of the goods and services they provide

1-24
 Challenges for Management in
a Global Environment
• Rise of Global Organizations.
• Building a Competitive Advantage.
• Maintaining Ethical and Socially.
Responsible Standards.
• Managing a Diverse Workforce.
• Practicing Global 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 they do

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 Building a Competitive
Advantage

• Increasing Efficiency
• Increasing Quality
• Increasing Speed, Flexibility, and Innovation
• Increasing Responsiveness to Customers

1-27
 Practicing Global Crisis
Management
Crisis management involves making
important choices about how to:
1. Create teams to facilitate rapid decision
making and communication
2. Establish the organizational chain of
command
3. Recruit and select the right people
4. Develop bargaining and negotiating
strategies to manage conflicts

1-28