Part 1 Meeting the Challenges of the 21st Century

Chapter

1 Management and Managers

PowerPoint Presentation by Charlie Cook The University of West Alabama 2007 Thomson/South-Western. All rights reserved.

LEARNING OBJECTIVES
When you have finished studying this chapter, you should be able to:
1. Define what management is.
2. Identify and explain the basic managerial functions. 3. Understand the roles that managers play.

4. Discuss the scope of responsibilities of functional and general managers.

5. Describe the three levels of managers in terms of the skills they need and the activities in which they are involved. 6. Identify major changes in the 21st. century and explain how they will affect management of organizations.
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LEARNING OBJECTIVES (contd)

When you have finished studying this chapter, you should be able to:
7. Explain the interactions between all of the major functions that managers perform; the interactions between planning, organizing, leading, and controlling. 8. Explain why it is important to study management.

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What is Management?
The Classic Definition
The art of getting things done through people.

Mary Parker Follett

A Broader Definition
The process of administering and coordinating

resources effectively, efficiently, and in an effort to achieve the goals of the organization.

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Effectiveness versus Efficiency

Effectiveness
Achieved when the organization pursues appropriate

goals. This means doing the right things.

Efficiency
Achieved by using the fewest inputs (e.g., people and

money) to generate a given output. This means doing things right.

The end result of effective and efficient management is organizational success.

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Management Theory
It is critical for managers to be able to lead people through the fast pace of change.
Leadership is about coping with both complexity and

change. As change becomes more dynamic and rapid, managers at all levels must hone their leadership skills. Therefore, leaders are managers and managers are leaders.

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The Organization
An Organization
A group of individuals who work together toward

common goals.

What do all organizations have in common?

They are composed of people whose efforts must be

coordinated if the organization is to accomplish its goals.

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Figure 1.1

The Management Process

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Planning And Organizing

Planning
Setting goals and defining the actions necessary to

achieve those goals.

Organizing
The process of determining the tasks to be done, who

will do them, and how those tasks will be managed and coordinated.

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Leading
Leadership
The capacity to direct and motivate the members of

work groups toward the accomplishment of organizational goals.

Leadership Skills:
Understanding individual/group behavior dynamics
Having the ability to motivate employees Being an effective communicator Being able to envision future and share that vision

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Controlling
Monitoring the performance of the organization and its progress in implementing strategic and operational plans.
Identifying deviations between planned and actual

results. Taking corrective action Ensuring that the organization is moving toward the achievement of its goals.

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Managers
Managers are the people who plan, organize, lead, and control the activities of the organization so that its goals can be achieved.

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Figure 1.2

Mintzbergs Managerial Roles

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Mintzbergs Managerial Roles

Interpersonal Roles
The managers responsibility for managing

relationships with organizational members and other constituents:

Figurehead

Leader
Liaison

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Mintzbergs Managerial Roles (contd)

Informational Roles
The managers responsibility for gathering and

disseminating information to the stakeholders of the organization:

Monitor

Disseminator
Spokesperson

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Mintzbergs Managerial Roles (contd)

Decisional Roles
The managers responsibility for processing

information and reaching conclusions:

Entrepreneur Disturbance Resource

handler

allocator

Negotiator

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Scope of Responsibility: Functional and General Managers

A functional manager is responsible for a work group segmented by function.

A general manager is responsible for several functional work groups.

Chief Executive General Parts Inc.

VP of Production

VP of Finance

Plant Manager

Service Manager

Account Manager

Payroll Manager
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Types of Managers
Functional Manager
A manager who is responsible for managing a work

unit that is grouped based on the function served.

General Manager
A manager who is responsible for managing several

different departments that are responsible for different tasks.

First-line manager
The manager who supervises the operational

employees.

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Figure 1.3

Managerial Levels

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Figure 1.4

Skills Needed at Different Levels of Management

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Management Skills
Technical Skills
The ability to utilize the knowledge of tools,

techniques, and procedures that are specific to a particular field.

Human Skills
The ability to work effectively with ones own work

group as well as others within the organization.

Conceptual Skills
The ability to process information about the

internal/external environment of the organization and determine its implications.

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The New Manager/Leader Profile

Managers who:
Are no longer the boss, rather they act as sponsors,

team leaders, or internal consultants.

No longer control from the top of the pyramid; nor try

to control the action from the sidelines.

Empower individual employees to do what is

necessary to achieve goals.

Make sure that employees have the resources to get

the job done.

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Managing in the 21st Century

Whats different?
The rate of change continues to increase

Whats the same?

The same basic business, economic, and managerial

principles still apply

Important change factors:

The Internet and information technology Increasing globalization

Increasing diversity
Intellectual capital Increased emphasis on ethics.
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The Internet And Information Technology

Electronic commerce is working.
E-businesses are using basic managerial and

business principles and are profitable. Traditional, brick-and-mortar businesses use of the Internet as a complement their existing businesses.

Benefits of Information Technology

Instant feedback from the market More sharing of information internally

Tighter links to suppliers

Increased globalization and global expansion

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Increasing Globalization of the Marketplace

Globalization
Various companies moving to multiple countries and

doing business in multiple countries.

The international business environment

Involves most organizationseven the smallest

business can reach a global marketplace with relative ease. Presents unique managerial challenges in terms of complexity and a broader set of environmental forces.

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Increasing Diversity in the Workplace

Diversity
The heterogeneity of the population and work force

The challenge of diversity

Developing the strong organizational culture and

group cohesiveness required for organizational success when the workplace includes people with different backgrounds, from different nations, or with different cultural frames of reference.

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The Growing Importance of Intellectual Capital

Intellectual capital
The sum and synergy of an organizations knowledge,

experience, relationships, processes, discoveries, innovations, market presence and community influence.

Major categories of intellectual capital

Structural capital Customer capital

Human capital

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Categories of Intellectual Capital

Structural capital
The accumulated knowledge of the organization

represented by its patents, trademarks and copyrights, proprietary databases, and systems.

Customer capital
The value of established relationships with

customers and suppliers.

Human capital
The cumulative skills and knowledge of the

organization.

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Ethics
Ethical Behavior
Behavior that is considered by most to

be acceptable.

SarbanesOxley Act
Requires businesses to use certain

accounting rules that would prohibit the many financial abuses by managers that came to light in recent years.

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An Overall Framework of Management

External environment
The setting in which an organization operates; the

markets and industry.

Competencies
The things that an organization can do well; the skills

and abilities.

The functions of management all interact with each other, and together they lead to effective and efficient achievement of an organizations overall goals.

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Figure 15

An Overall Framework of Management

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Why Study Management?

Universal applicability
The basic functions that managers perform, the roles

that managers play, and the skills that managers use are universal.

Organizational need
The basic functionsplanning, organizing, leading,

and controllingare required in every organization.

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