The

Management
Process Today

Chapter One

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 Learning Objectives
LO1-1 Describe what management is, why management is
important, what managers do, and how managers
utilize organizational resources efficiently and
effectively to achieve organizational goals
LO1-2 Distinguish among planning, organizing, leading, and
controlling (the four principal managerial tasks), and
explain how managers’ ability to handle each one can
affect organizational performance
LO1-3 Differentiate among three levels of management, and
understand the tasks and responsibilities of
managers at different levels in the organizational
hierarchy
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 Learning Objectives

LO1-4 Distinguish between three kinds of managerial skill,

and explain why managers are divided into different
departments
LO1-5 Discuss some major changes in management
practices today that have occurred as a result of
globalization and the use of advanced information
technology (IT)/ ICT
LO1-6 Discuss the principal challenges managers face in
today’s increasingly competitive global environment

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 What is Management?

Management
 The planning, organizing, leading, and
controlling of human and other resources
to achieve organizational goals effectively
and efficiently

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 What is Management?

Organizations
 Collections of people
who work together
and coordinate their
actions to achieve a
wide variety of goals

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 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

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 Achieving High Performance

Organizational Performance
 A measure of how efficiently and effectively
managers use organizational resources to satisfy
customers and achieve organizational goals

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 Efficiency, Effectiveness, and
Performance in an Organization
Figure 1.1

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 Organizational Performance

Efficiency Effectiveness
 A measure of how  A measure of the
well or productively appropriateness of
resources are used to the goals an
achieve a goal organization is
pursuing and the
degree to which the
organization achieves
those goals.

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 Why study management?

The more effective and efficient use an

organization can make of resources, the
greater the relative well-being of people
Almost all of us encounter managers because
most people have jobs and bosses
Understanding management is one important
path toward obtaining a satisfying career

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 Four Tasks of Management
Figure 1.2

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Planning

Planning
 Process of
identifying and
selecting
appropriate goals
and courses of
action

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 Steps in the Planning Process
1. Deciding which goals to pursue
2. Deciding what strategies to adopt to attain
those goals
3. Deciding how to allocate organizational
resources

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 Planning

Strategy
 cluster of decisions about what goals to pursue,
what actions to take, and how to use resources to
achieve goals

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 Organizing

Organizing
 Structuring working relationships in a way that
allows organizational members to work together
to achieve organizational goals

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 Organizing

Organizational Structure
 A formal system of task and reporting
relationships that coordinates and motivates
organizational members so that they work
together to achieve organizational goals

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 Leading

Leading
 Articulating a clear vision and energizing and
enabling organizational members so they
understand the part they play in attaining
organizational goals

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 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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 Question?

What is a group of people who work together

and possess similar skills or use the same
knowledge, tools, or techniques?
A. Organization
B. Department
C. Team
D. Presentation Group

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 Levels and Skills of Managers

Department
 A group of people who work together and
possess similar skills or use the same knowledge,
tools, or techniques to perform their jobs

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 Levels of Management

First line managers

 Responsible for the daily supervision of non-
managerial employees
Middle managers
 Supervise first-line managers and are responsible
for finding the best way to use resources to
achieve organizational goals

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 Levels of Management

Top managers
 establish organizational goals, decide how
departments should interact, and monitor the
performance of middle managers

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 Levels of Managers
Figure 1.3

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 Relative Amount of Time That Managers Spend
on the Four Managerial Tasks
Figure 1.4

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 Levels of Managers

Top-management team
 A group composed of the CEO, the COO, and the
vice presidents of the most important
departments of a company.

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 Question?

Which management skill is the ability to

understand, alter, lead, and control the behavior
of other individuals and groups?
A. Conceptual
B. Human
C. Technical
D. Technological

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 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 job-specific knowledge and techniques required
to perform an organizational role.

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 Question?

What is the specific set of abilities that allows

one manager to perform at a higher level than
another manager?
A. Skill-sets
B. SKAs
C. Competencies
D. Skill traits

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 Technical Skills

Core competency
 Specific set of skills, abilities, and experiences that
allows one organization to outperform its
competitors

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 Types and Levels of Managers
Figure 1.5

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 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

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 Recent Changes in
Management Practices
Outsourcing
 contracting with another company, usually
abroad, to have it perform an activity the
organization previously performed itself
 Increases efficiency because it lowers operating
costs, freeing up money and resources that can
be used in more effective ways

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 Empowerment and
Self-Managed Teams
Empowerment
 Expansion of
employees’
knowledge, tasks,
and decision-making
responsibilities

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 Empowerment and
Self-Managed Teams
Self-managed team
 A group of employees who assume responsibility
for organizing, controlling, and supervising their
own activities and monitoring the quality of the
goods and services they provide.

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 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

Utilizing IT and E-Commerce

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 Challenges for Management in
a Global Environment
Global organizations
 organizations that operate and compete in more
than one country

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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 Blocks of Competitive
Advantage
Figure 1.6

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Building a Competitive Advantage

Innovation
 process of creating new or improved goods and
services or developing better ways to produce or
provide them

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 Video: Fed Ex

How do the managers at the FedEx Super-hub

use planning, organizing, leading and
controlling to sort one million nightly boxes
and letters?

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