Chapter 1 Introduction to Management and It¶s Significance

Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved

Management Concepts.. 

Organizations: Where a collection of people working together and coordinating their actions to achieve specific goals. Goals: A desired future condition that the organization seeks to achieve. Management: The process of using organizational resources to achieve the goals and objectives of that organization.
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Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved

Management Is«

Getting work done through others

Efficiency

Effectiveness

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Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved

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expense.Efficiency and Effectiveness  Efficiency  Getting work done with a minimum of effort. a division of Thomson Learning. All rights reserved 4 . or waste  Doings things right²most output for least input  Effectiveness  Accomplishing tasks that help to fulfill organizational objectives  Doing the right things Copyright ©2007 by South-Western.

Management Functions Management Functions Planning Organizing Leading Controlling 2 Copyright ©2007 by South-Western. All rights reserved 5 . a division of Thomson Learning.

All rights reserved 6 .Planning Planning Determining organizational goals and courses of action for achieving them 2. a division of Thomson Learning.1 Copyright ©2007 by South-Western.

2 Copyright ©2007 by South-Western.Organizing    Deciding where decisions will be made Who will do what jobs and tasks Who will work for whom 2. All rights reserved 7 . a division of Thomson Learning.

Leading Inspiring Leading Motivating 2.3 Copyright ©2007 by South-Western. All rights reserved 8 . a division of Thomson Learning.

All rights reserved 9 . a division of Thomson Learning.4 Copyright ©2007 by South-Western.Controlling Controlling Monitoring progress toward goal achievement and taking corrective action when needed 2.

a division of Thomson Learning.4 Copyright ©2007 by South-Western. All rights reserved 10 .The Control Process Set standards to achieve goals Make changes to return performance to standards Compare actual performance to standards 2.

Kinds of Managers     Top Managers Middle Managers First-Line Managers Team Leaders 3 Copyright ©2007 by South-Western. All rights reserved 11 . a division of Thomson Learning.

Top Managers     Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Information Officer (CIO) 3.1 3 Copyright ©2007 by South-Western. a division of Thomson Learning. All rights reserved 12 .

1 Copyright ©2007 by South-Western. a division of Thomson Learning.Responsibilities of Top Managers Creating a context for change Developing commitment and ownership in employees Creating a positive organizational culture through language and action Monitoring their business environments 3. All rights reserved 13 .

2 3 Copyright ©2007 by South-Western. a division of Thomson Learning. All rights reserved 14 .Middle Managers    Plant Manager Regional Manager Divisional Manager 3.

2 Copyright ©2007 by South-Western. departments.Responsibilities of Middle Managers Plan and allocate resources to meet objectives Coordinate and link groups. and divisions Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers 3. a division of Thomson Learning. All rights reserved 15 .

a division of Thomson Learning. All rights reserved 16 .3 3 Copyright ©2007 by South-Western.First-Line Managers    Office Manager Shift Supervisor Department Manager 3.

3 Copyright ©2007 by South-Western.Responsibilities of First-Line Managers Manage the performance of entry-level employees Encourage. monitor. and reward the performance of workers Teach entry-level employees how to do their jobs Make detailed schedules and operating plans 3. a division of Thomson Learning. All rights reserved 17 .

Responsibilities of Team Leaders Facilitate team performance Manage external relations Facilitate internal team relationships 3. All rights reserved 18 . a division of Thomson Learning.4 Copyright ©2007 by South-Western.

Mintzberg. Copyright ©2007 by South-Western. July-August 1975. All rights reserved 19 .Managerial Roles Interpersonal Figurehead Leader Liaison Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Disturbance Handler Resource Allocator 4 Negotiator Adapted from Exhibit 1. a division of Thomson Learning.4 H. ³The Manager¶s Job: Folklore and Fact:.´ Harvard Business Review.

Managerial Roles Interpersonal Roles Figurehead Symbolizes what the organization wants to achieve Leader Managers motivate and encourage workers to accomplish objectives Link and co-ordinate people inside and outside the organization to achieve goals Liaison 4. a division of Thomson Learning.1 Copyright ©2007 by South-Western. All rights reserved 20 .

Managerial Roles Informational Roles Managers scan their internal and external environment for information Managers transmit information to influence attitudes and behavior of the employees Managers share information with others outside their departments or companies 21 Monitor Disseminator Spokesperson 4.2 Copyright ©2007 by South-Western. All rights reserved . a division of Thomson Learning.

a division of Thomson Learning. unions.Managerial Roles Decisional Roles Deciding upon new projects or programs to initiate and invest Managers respond to problems or crisis that demand immediate action Managers decide who gets what resources Managers negotiate solutions between other managers . customers or share holders 22 Entrepreneur Disturbance Handler Resource Allocator Negotiator 4. All rights reserved .3 Copyright ©2007 by South-Western.

All rights reserved 23 .What Companies Look for in Managers Technical Skills Human Skills Conceptual Skills Motivation to Manage 5 Copyright ©2007 by South-Western. a division of Thomson Learning.

Managers¶ Skills  Skills Approach  Technical skills ‡ Knowledge and proficiency in a specific field like accounting. marketing or manufacturing  Human skills ‡ The ability to understand. a division of Thomson Learning. alter. All rights reserved 24 . lead and control peoples¶ behavior for working well  Conceptual skills ‡ The ability to think and conceptualize about the different situations in the organization and finding the causes and effects Copyright ©2007 by South-Western.

All rights reserved 25 . Overdependent on advocate or mentor 6 Copyright ©2007 by South-Western. Overly ambitious 5. Unable to staff effectively 8. Cold. Unable to adapt to boss with different style 10.Mistakes Managers Make 1. Overmanaging: unable to delegate or build a team 7. Unable to think strategically 9. Betrayal of trust 4. Insensitive to others 2. aloof. arrogant 3. Specific performance problems with the business 6. a division of Thomson Learning.

Competitive Advantage through People Competitive Advantages of Well-Managed Companies Sales Revenues Profits Stock Market Returns Customer Satisfaction 7 Copyright ©2007 by South-Western. All rights reserved 26 . a division of Thomson Learning.

 Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done. All rights reserved 8 27 . a division of Thomson Learning. Copyright ©2007 by South-Western. The systematic study of the relationships between people and tasks to redesign the work for higher efficiency.Important Concepts in Evolution of Management  Scientific Management Defined by Frederick Taylor. late 1800¶s.

a division of Thomson Learning. ‡ Teach to all workers. ‡ Gather detailed. 3. Select workers whose skills match the rules set in Step 2. ‡ Try different methods to see which is best. Codify the new method into rules. time and motion information. ‡ Workers should benefit from higher output. Study the way the job is performed now & determine new ways to do it. All rights reserved . Establish a fair level of performance and pay for higher performance. 28 Copyright ©2007 by South-Western.The 4 Principles of Scientific Management  Four Principles to increase efficiency: 1. 4. 2.

‡ Fayol noted firms can have too much specialization leading to poor quality and worker involvement. Line of Authority: a clear chain from top to bottom of the firm. 4. 5. a division of Thomson Learning.Fayol¶s Principles  Henri Fayol. 3. Unity of Command: Employees should have only one boss. All rights reserved 29 . developed a set of 14 principles: 1. 2. Centralization: the degree to which authority rests at the very top. Authority and Responsibility: A coordination between authority and responsibility of work. Copyright ©2007 by South-Western. Division of Labor: allows for job specialization.

All rights reserved 30 . Equity: Treat all employees fairly in justice and respect. Unity of Direction: One plan of action to guide the organization. 7. Copyright ©2007 by South-Western. 9. respectful employees needed. a division of Thomson Learning. Discipline: obedient. 8. Initiative: Encourage innovation. applied. Order: Each employee is put where they have the most value.Fayol¶s Principles 6. 10.

13.Fayol¶s Principles 11. a division of Thomson Learning. Remuneration of Personnel: The payment system contributes to success. General interest over individual interest: The organization takes precedence over the individual. Copyright ©2007 by South-Western. 12. Stability of Tenure: Long-term employment is important. 14. Esprit de corps: Share enthusiasm or devotion to the organization. All rights reserved 31 .

and create an organization to stimulate the worker. dislikes work and will do as little as possible. ‡ Managers should allow the worker great latitude. 32 Copyright ©2007 by South-Western. a division of Thomson Learning. ‡ Managers must closely supervise and control through reward and punishment.Theory X and Y  Douglas McGregor proposed the two different sets of worker assumptions.  Theory X: Assumes the average worker is lazy.  Theory Y: Assumes workers are not lazy. All rights reserved . want to do a good job and the job itself will determine if the worker likes the work.

 USA culture emphasizes the individual. work-group. and managers tend to feel workers follow the Theory X model. All rights reserved .  Japan culture expects worker committed to the organization first and thus behave differently than USA workers. and organizational focus.  Managers stress long-term employment. 33  Copyright ©2007 by South-Western. Theory Z combines parts of both the USA and Japan structure. a division of Thomson Learning.Theory Z  William Ouchi researched the cultural differences between Japan and USA.

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