Contemporary Management

P R E PARE D BY: D R . H E
BA S A DEK
 Agenda
1. What is management?
2. What is an organization?
3. Who are managers?
4. What do managers do?
5. What are the challenges for management in a global environment?
6. Why study management?
1-What is management?
➢ Management is :
• Planning,
• Organizing,
• Leading, and
• Controlling of human and other resources

➢To achieve organizational goals efficiently and effectively.

The process of management
Planning
Select goals and
ways to attain
them
Resources Organizational
goals
•Human
Controlling Organizing •Products
•Financial
Monitor activities and Assign responsibility for •Services
•Raw Materials make corrections task accomplishment
•Efficiency
•Technological
•Effectiveness
•Information

Leading
Use influence to
motivate employees

4
Organizational performance
Organizational performance is a measure of how efficiently and
effectively managers use available resources to satisfy
customers and achieve organizational goals.
Efficiency, Effectiveness, and Performance in an Organization

EFFICIENCY
LOW HIGH

Low efficiency/ High efficiency/

High effectiveness High effectiveness

Manager chooses the right Manager chooses the right

goals to pursue, but does a goals to pursue and makes
HIGH
fn poor job of usi ng resources good use of resources to
fn to achieve these goals. achieve these goals.
Ill Result: A product that Result: A product that
z customers want, but that is customers want at a quality
Ill

-
too expensive for them to buy. and price that they can
> afford.

(.) l!ow efficiencyl.

Ill ll!ow ·effect High efficiency/
veness Low effectiveness

Ill LOW Manager. ct.iooses wr_ ng Manager chooses

goals to 1 ur.sue ana mal<es 1
oor. use of r.esour.ces.
Result:low;guali roC:Iuct
ittiat custome Clo not want.
inapppropriate goals.but
makes good use of resources
to pursue these goals.
Result: A high-quality
product that customers do not
want.

Hrgh-performing orgamzati ons are effrcient and e

 ffect1ve.
Fi gure 1.1
© Copyright McGraw-Hill. All rights reserved . 1-8
Organizational performance
➢Effectiveness - degree to which organization achieves a stated
goal

➢Efficiency - use of minimal resources (raw materials, money, and

people) to produce the desired volume of output

➢Performance – organization’s ability to attain its goals by using

resources in an efficient and effective manner
2- What is an
➢Organization
◦ A collection of people working together to achieve a common purpose.
◦ Organizations is a social entity that is goal directed and deliberately structured that provide
useful goods and/or services that return value to society and satisfy customer needs.
➢Organizations are open systems
◦ Composed of interrelated parts that function together to achieve a common purpose.
◦ Interact with their environments.
◦ Transform resource inputs into product outputs (goods and services).
◦ Environmental feedback tells organization how well it is meeting the needs of
customers and society.
Organizations as open systems
3-Who are managers?
➢Managers:

• They are working in organizations. They directly support and help activate the
work efforts and performance accomplishments of others.

•They are people responsible for supervising and making the most of an
organization’s human and other resources to achieve its goals.
Levels managers
◦ At the base of the managerial hierarchy are first-line managers
“supervisors”: They are responsible for the daily supervision of the
nonmanagerial employees who perform specific activities necessary to
produce goods/services.
◦ Ex: Dell, the first line managers include the supervisors responsible for controlling the quality of its
computer or the level of customer service provided by telephone salespeople.

◦ Supervising the first-line managers are middle managers, responsible for

finding the best way to use resources to achieve organizational goals.
Levels managers
➢Middle managers are responsible for:
• Finding the best way to use resources to achieve organizational goals.
•To increase efficiency, middle managers find ways to help first-line managers &
nonmanagerial employees better utilize resources to reduce manufacturing costs or
improve customer service.
•To increase effectiveness, middle managers evaluate whether the goals that the
organization is pursuing are appropriate & suggest to top managers ways in which
goals should be changed.
•To develop skills & know how.
•Ex: middle managers make thousand of decisions about the production of goods/
services: which first-line supervisors should be chosen for this particular project?
Where can we find the highest-quality resources?
Levels managers
➢Top managers are responsible for
• The performance of all departments. They have cross-departmental
responsibility.
•Top managers establish organizational goals. Ex: which goods/services the
company should produce
•Decide how the different departments should interact and monitor how well
middle managers in each department utilize resources to achieve goals.
Levels managers
4- What do managers do?
➢Managerial tasks (four tasks of management)

➢Managerial roles

➢Managerial skills
Figure 1.2

1--
Relative Amount of Time That .Managers
Spend on the Four Managerial Functions

Planning Organizing Leading Controlling

Top
managers

Middle
managers

First-line
managers

Figure 1 .4 1-27
Relative amount of time that managers
spend on the four managerial tasks
•Top managers devote most of their time to planning &
organizing, the tasks so crucial to determine an organization’s
long-term performance.

•The lower that managers’ positions are in the hierarchy, the

more time the managers spend leading & controlling first-line
managers & nonmanagerial employees.
Managerial roles
➢Interpersonal roles
Involve interactions with persons inside and outside the work
unit.
➢Informational roles
Involve giving, receiving, and analyzing of information.
➢Decisional roles
Involve using information to make decisions in order to solve
problems or address opportunities.
Mintzberg’s 10 Managerial Roles
Katz’s Essential Managerial Skills
5- What are the challenges for
management in a global environment?
six major challenges
➢Building competitive advantage
➢Community of stakeholders
➢Maintaining ethical and socially responsible standards
➢Managing a diverse workforce
➢IT and E-Commerce
➢Practicing global crisis management
 Building competitive
Competitive advantage: is
the ability of one
organization to outperform
other organizations because
it produces desired goods or
services more efficiently and
effectively than its
competitors.
Community stakeholders
Community of Stakeholders
Organizations are responsible
to stackholders, and

Focus on building relationships

with employees, customers,
partners, and suppliers
Maintaining ethical and
socially
Public consciousness has
become much more
sensitive and demanding
that organizations be
more socially responsible
Managing a diverse

Increasing diversity
of workers has
brought in a wide
array of differing
values, perspectives,
and expectations
among workers
IT and E-
New technologies such
as web-based IT that link
and enable employees in
new ways are continually
being developed.
Practicing global crisis
The causes of global crises
or disasters fall into three
main categories: natural
causes, man-made causes,
and international terrorism
and geopolitical conflicts.
Practicing global crisis
Crises management involves making important choices about how to:
- Create teams to facilitate rapid decision making and
communication.
- Establish the organizational chain of command and reportin
relationships necessary to mobilize a fast response.
- Recruit and select the right people to lead and work in such teams.
- Develop bargaining and negotiating strategies to manage the
conflicts that arise whenever people and groups have diffe
interests and objectives.
6-Why study management?