Chapter 1 : Foundations Of Management
- 1. Chapter 1
- 2. TABLE OF CONTENTS • Summary • Who Are Managers, And Where Do They Work? • What Is Management? • What Do Managers Do? • Why Study Management? • What Factors Are Reshaping And Redefining Management?
- 3. SUMMARY 3
- 4. SUMMARY Tell who managers are and where they work. • Managers are individuals who work in an organization directing and overseeing the activities of other people. Managers are usually classified as top, middle, or first-line. Organizations, which are where managers work, have three characteristics: goals, people, and a deliberate structure. Define management. • Management is the process of getting things done, effectively and efficiently, with and through other people. Efficiency means doing a task correctly (“doing things right”) and getting the most output from the least amount of inputs. Effectiveness means “doing the right things” by doing those work tasks that help the organization reach its goals.
- 5. SUMMARY Describe what managers do. • What managers do can be described using three approaches: functions, roles, and skills/ competencies. The functions approach says that managers perform four functions: planning, organizing, leading, and controlling. • Mintzberg’s roles approach says that what managers do is based on the 10 roles they use at work, which are grouped around interpersonal relationships, the transfer of information, and decision making. The skills/ competencies approach looks at what managers do in terms of the skills and competencies they need and use. • Four critical management skills are conceptual, interpersonal, technical, and political. Additional managerial competencies include aspects such as dependability, personal orientation, emotional control, communication, and so forth. • All managers plan, organize, lead, and control although how they do these activities and how often they do them may vary according to level in the organization, whether the organization operates for profit or not- for-profit, the size of the organization, and the geographic location of the organization.
- 6. SUMMARY Explain why it’s important to study management. • One reason it’s important to study management is that all of us interact with organizations daily so we have a vested interest in seeing that organizations are well managed. Another reason is the reality that in your career you will either manage or be managed. By studying management you can gain insights into the way your boss and fellow employees behave and how organizations function. Describe the factors that are reshaping and redefining management. • In today’s world, managers are dealing with changing workplaces, ethical and trust issues, global economic and political uncertainties, and changing technology. Two areas of critical importance to managers are delivering high-quality customer service and encouraging innovative efforts.
- 7. LEARNING OBJECTIVES In this chapter we will address the following questions: • Tell who managers are and where they work. • Define management. • Describe what managers do. • Explain why it’s important to study management. • Describe the factors that are reshaping and redefining management.
- 8. WHO ARE MANAGERS, AND WHERE DO THEY WORK? Section 1
- 9. WHO ARE MANAGERS, AND WHERE DO THEY WORK? • Managers work in an organization. • An organization is a deliberate arrangement of people brought together to accomplish some specific purpose, i.e. your college or university is an organization. So is a football team and a sorority.
- 10. WHY ARE MANAGERS IMPORTANT? • Organizations need their managerial skills and abilities more than ever in these uncertain, complex, and chaotic times. • Managerial skills and abilities are critical in getting things done. • The quality of the employee/supervisor relationship is the most important variable in productivity and loyalty. Manage uncertain, complex and chaotic times Getting things done Produce productivity and loyalty
- 11. WHAT THREE CHARACTERISTICS DO ALL ORGANIZATIONS SHARE? • Every organization has a purpose and is made up of people who are grouped in some fashion. • Purposes or goals can only be achieved through people. • All organizations develop a systematic structure that defines and limits the behavior of its members. Developing a structure may include creating rules and regulations, giving some members supervisory control, forming teams, etc.
- 12. HOW ARE MANAGERS DIFFERENT FROM NONMANAGERIAL EMPLOYEES? Organizational members fit into two categories: • non-managerial employees • managers. Organization Non-managerial employees Managers
- 13. HOW ARE MANAGERS DIFFERENT FROM NONMANAGERIAL EMPLOYEES? • Non-managerial employees are placed into categories according to their job functions. • In an office environment, non- managerial job titles may range from administrative assistant to payroll specialist to computer technician. • Other factors that distinguish non-managerial employees from managers is that non-managerial workers may not have the flexibility in their schedules that managers have. For example, non-managerial employees might have to report their working hours using a time clock and many are held to a strict schedule Non- Managerial Categories job functions No flexibility schedules
- 14. HOW ARE MANAGERS DIFFERENT FROM NONMANAGERIAL EMPLOYEES? • Management is often broken down into three levels – upper management, middle management and first-line management. • Upper management includes top executives who are highest on the management hierarchy. • Middle management includes department managers and division managers, who are the communication link between upper and lower management. • Lower management includes first- line managers and supervisors, who are on the bottom of the management hierarchy.
- 15. WHAT TITLES DO MANAGERS HAVE? • Responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members, i.e. vice president, managing director, chief operating officer, chancellor, etc. Top managers • Represent levels of management between the first-line supervisor and top management. Manage other managers and possibly some non-managerial employees. Responsible for translating the goals set by top management into specific details. Middle managers
- 16. WHAT TITLES DO MANAGERS HAVE? • Usually called supervisors, shift managers. Responsible for directing the day-to-day activities of non-managerial employees. First-line managers • Responsible for managing and facilitating activities of a work team. Report to a first-line manager. Team leaders
- 17. WHO ARE MANAGERS, AND WHERE DO THEY WORK? VideoTime–“ThePerfectBoss”  “Axel Zein promotes a new way we manage businesses today: think of business as a sport. In sports, the team is decisive; the team with the best players usually wins. And sports are fun. So what qualifies a manager to be the perfect coach for his team?”  Dr. Axel Zein, CEO of WSCAD, a company delivering CAD software for electrical engineering. In three years Axel turned the company around, grew revenues 57% and achieved the No. 2 status in Central Europe. In his previous role Axel led a business unit at EPLAN, a German electrical CAD software company where he doubled profits and revenues within 3 years.  https://www.youtube.com/watch?v=jFG 7jqJXbno
- 19. WHAT IS MANAGEMENT? • Managers, regardless of their title or the role they plan within an organization, share several common elements. • Management can be defined as the process of getting things done effectively and efficiently, through and with other people. The term “process” in the definition represents the primary activities managers perform. Work done effectively and efficiently With people Management
- 20. WHAT IS MANAGEMENT? • Efficiency means doing the task right and refers to the relationship between inputs and outputs. Management is concerned about minimizing resource costs while achieving the desired output. • Effectiveness means doing the right task, and in an organization that translates into goal attainment. • Efficiency and effectiveness are interrelated. It’s easier to be effective if one ignores efficiency. Good management is concerned with both, the attainment of goals (effectiveness) and efficiency in the process. Efficiency. “Doing things right” • Getting the most output for the least inputs Effectiveness. “Doing the right things” • Attaining organizational goals
- 21. IS THE MANAGER’S JOB UNIVERSAL? • Manager's job is not universal considering the factors such as the size of the business and the level of management. • Their job is not the same because when considering the size of the firm some managers control big business whereas they have more job to do and to plan for the business ,such managers have more subordinates to control and give delegations while the manager in a small firm is vise versa Level in the Organization Profit versus Not- for-Profit Size of Organization Management concepts and national borders
- 22. LEVEL IN THE ORGANIZATION • The importance of managerial roles varies depending on the manager’s level in the organization. • The differences in managerial roles are of degree and emphasis, but not of activity. • As managers move up, they do more planning and less direct overseeing of others. • Upper-level managers are concerned with designing the overall organization’s structure. • Lower-level managers focus on designing the jobs of individuals and work groups.
- 23. LEVEL IN THE ORGANIZATION
- 24. PROFITVERSUSNOT-FOR-PROFIT • The manager’s job is mostly the same in both profit and not-for-profit organizations. • All managers make decisions, set objectives, create workable organization structures, hire and motivate employees, secure legitimacy for their organization’s existence, and develop internal political support in order to implement programs. • The most important difference is measuring performance, profit, or the “bottom line.” • Making a profit for the “owners” of not-for-profit organizations is not the primary focus.
- 25. SIZE OF ORGANIZATION • Small business—any independently owned and operated profit-seeking enterprise that has fewer than 500 employees. • The small business manager’s important role is of spokesperson (outwardly focused). • In a large organization, the manager’s most important job is of resource allocator (inwardly focused). • The entrepreneurial role is least important to managers in large firms. • A small business manager is more likely to be a generalist. • The large firm’s manager’s job is more structured and formal than the manager in a small firm. • Planning is less carefully orchestrated in the small business. • Control in the small business will rely more on direct observation.
- 26. MANAGEMENTCONCEPTSANDNATIONALBORDERS • Studies that have compared managerial practices between countries have not generally supported the universality of management concepts. • Most of the concepts we will be discussing primarily apply to the United States, Canada, Great Britain, Australia, and other English-speaking democracies. • Concepts may need to be modified when working with India, China, Chile, or other countries where economic, political, social, or cultural environments differ greatly from that of the so-called free-market democracies.
- 27. WHAT DO MANAGERS DO? Section 3
- 28. WHAT DO MANAGERS DO? • There are four functions of management that span across all industries. They include: planning, organizing, leading, and controlling
- 29. WHAT DO MANAGERS DO? • Planning encompasses defining an organization’s goals, establishing an overall strategy for achieving those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities. • Setting goals creates a proper focus. Planning Organizing Directing and coordinating Controlling
- 30. WHAT DO MANAGERS DO? • Organizing—determining what tasks are to be done, who is to do them, how the tasks are grouped, who reports to whom, and where decisions are to be made. Planning Organizing Directing and coordinating Controlling
- 31. WHAT DO MANAGERS DO? • Directing and coordinating people is the leading component of management. • Leading involves motivating employees, directing the activities of others, selecting the most effective communication channel, or resolving conflicts among members. Planning Organizing Directing and coordinating Controlling
- 32. WHAT DO MANAGERS DO? • Controlling- to ensure that things are going as they should, a manager must monitor the organization’s performance. • Actual performance must be compared with the previously set goals. • Any significant deviations must be addressed. • Monitoring, comparing, and correcting are the controlling process Planning Organizing Directing and coordinating Controlling
- 33. MANAGEMENT ROLESAPPROACH • In the late 1960s, Henry Mintzberg provided empirical insights into a manager’s job. He undertook a careful study of five chief executives at work. • Mintzberg found that the managers he studied engaged in a large number of varied, unpatterned, and short- duration activities. • There was little time for reflective thinking (due to interruptions). • Half of these managers’ activities lasted less than nine minutes. • Mintzberg provided a categorization scheme for defining what managers do on the basis of actual managers on the job—Mintzberg’s managerial roles. • Mintzberg concluded that managers perform ten different but highly interrelated roles.
- 34. WHATSKILLSANDCOMPETENCIESDOMANAGERSNEED? Robert Katz proposed that managers must possess and use four critical management skills. • Conceptual skills • Interpersonal skills • Technical skills • Political skills Conceptual • used to analyze and diagnose complex situations Interpersonal • involved with working well with other people both individually and in groups Technical • job-specific knowledge and techniques needed to perform work tasks. Political • to build a power base and establish the right connections
- 35. WHAT DO MANAGERS DO? Mintzberg’s managerial roles approach-Question • Is your course instructor a manager? Discuss in terms of planning, organizing, leading, and controlling. Also discuss using Mintzberg’s managerial roles approach.
- 36. WHAT DO MANAGERS DO? Mintzberg’s managerial roles approach-Answers Is your course instructor a manager? Discuss in terms of planning, organizing, leading, and controlling. Also discuss using Mintzberg’s managerial roles approach. A college instructor is both an individual contributor and a manager. He/she is in a non- managerial role when he/she produces “the product” of the university. But he/she is also a manager in that he/she must manage the class and students. In terms of: • Planning—the instructor defines class goals, establishes the semester plan for achieving them, and develops lesson plans to integrate and coordinate these efforts. • Organizing—not as much, as he/she is primarily responsible for execution but may need to if he/she uses class participation. • Leading—should be relatively obvious, motivating students, direct the activities of others, select the most effective communication channel, or resolve conflicts among members. • Controlling—ah, grading! • For the sake of space, suggestions will be limited to Mintzberg’s three primary categories. • Interpersonal - the roles of leader and liaison. • Informational - monitor and disseminator. • Decisional - disturbance handler and resource allocator.
- 38. WHY STUDY MANAGEMENT? • We interact with them every day of our lives. Examples of problems that can largely be attributed to poor management. • Those that are poorly managed often find themselves with a declining customer base and reduced revenues. • An understanding of the management process is foundational for building management skills. • You will almost certainly work in an organization, be a manager, or work for a manager. • You needn’t aspire to be a manager in order to gain something valuable from a course in management
- 39. WHAT FACTORS ARE RESHAPING AND REDEFINING MANAGEMENT? Section 5
- 40. WHAT FACTORS ARE RESHAPING AND REDIFINING MANAGEMENT? • Managers are dealing with changing workplaces, ethical and trust issues, global economic uncertainties, and changing technology. • Managers everywhere are likely to have to manage in changing circumstances, and the fact is that how managers manage is changing.
- 41. WHY ARE CUSTOMERS IMPORTANT TO THE MANAGER’S JOB? • Without customers the organization wouldn't survive. • Employee attitudes and behaviors play a big role in customer satisfaction. • Managers must create a customer responsive organization.
- 42. WHY IS INNOVATION IMPORTANT TO THE MANAGER’S JOB? • Not being innovative in today's world is risky. • Managers need to understand what, when, where, how, and why innovation can be fostered and encouraged throughout the organization. • Managers not only need to be innovative but they must foster it in others.
- 43. IMPORTANCE OF SOCIAL MEDIA TO THE MANAGER’S JOB • Social media – forms of electronic communication through which users create online communities to share ideas, information, personal messages, and other content. • Employees can use social media for work purposes. Several examples are discussed in the text about companies using social media to manage human resource issues and to foster communication and collaboration throughout the company. • It can also be a problem and managers must be careful that social media does not turn into a place where people boast, brag, or send one way messages to employees.
- 44. IMPORTANCE OF SUSTAINABILITY TO THE MANAGER’S JOB • Sustainability – company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies. • Managers must look at corporate social responsibility not only to manage in an efficient and effective way but also responding strategically to a wide range of environmental and social challenges.
- 45. WHAT FACTORS ARE RESHAPING AND REDEFINING MANAGEMENT? VideoTime–“Holacracy:ARadicalNewApproachtoManagement”  “In his engaging talk, Brian Robertson explains Holacracy, a complete system for structuring a company without a management hierarchy, yet with clear accountability, authority and agility”  Brian Robertson is an experienced entrepreneur, CEO and the creator of Holacracy, a management system for governing and running organizations without a typical management hierarchy. A variety of global leaders have implemented Holacracy, including Zappos CEO Tony Hsieh, Twitter Co- Founder Ev Williams, and the best- selling author of Getting Things Done, David Allen  https://www.youtube.com/watch?v=tJ xfJGo-vkI&t=147s