Introduction -Class 1,2.ppt

Management Defined
• Management
The process of working with and through
others to achieve organizational objectives in
a changing environment.
Management entails the effective and efficient
use of limited resources.

Key Aspects of the Management Process

Working with and
Through Others
• Management is a social process in which
managers get things done by working with and
through others.
• Shortcomings of “derailed” managers
Problems with interpersonal relationships
Failure to meet business objectives
Failure to build and lead a team
Inability to change and adapt during a transition

Achieving Organizational
Objectives
• An objective is a target to be strived for and
attained.
Challenging yet achievable objectives provide
guidance for effective and efficient actions by
individuals and organizations.

1–6
Efficiency
versus
Effectiveness
Source: Van Fleet, David D., Contemporary Management, Second
Edition. Copyright © 1991 by Houghton Mifflin Company. Used with
permissions.

Balancing Effectiveness and Efficiency

Balancing Effectiveness and Efficiency (cont’d)

Making the Most of Limited Resources
• We live in a world of scarcity.
• There is a lopsided use of resources.
• Our planet is becoming increasingly
crowded.
• Over 80% of the world’s population lives in
poor and less-developed countries.
• Managers are responsible for the efficient
and effective use of the basic factors of
production–land, labor, and capital.

Coping with a Changing Environment
• Five Major Sources of Change for Today’s
Managers
Globalization
Environmentalism
An ethical reawakening
The Internet and the e-business revolution
The evolution of product quality

Managing Effectively:
Three Critical Challenges
CHANGE
Management Challenges
for the 21st Century

Four Realities of
Managing Today
1. The only certainty today is change.
2. Speed, teamwork, and flexibility are the orders
of the day.
3. Managers at all levels need to stay close to
the customer.
4. Without continuous improvement and lifelong
learning, there can be no true economic
progress.

What Is an Organization?
• Organization
A systematic arrangement of people brought together
to accomplish some specific purpose;
applies to all organizations—for-profit as well as not-
for-profit organizations.
Where managers work (manage)
• Common characteristics
Goals
Structure
People

Common Characteristics
of Organizations

People Differences
• Operatives
People who work directly on a job or task and have
no responsibility for overseeing the work of others
• Managers
Individuals in an organization who direct the activities
of others

1–18
Who is a Manager?
• Someone whose primary responsibility is to
carry out the management process.
• Someone who plans and makes decisions,
organizes, leads, and controls
human, financial, physical,
and information resources.

Top
Middle
First-Line
Vertical Levels
Of
Management
Human
Resources
Operations
Finance
Accounting
Engineering
Horizontal Responsibility Areas
TYPES OF MANAGERS
BY LEVEL AND RESPONSIBILITY

Differences Among Managers
• The Three Levels of Management
 Top managers
 CEO, president, or vice president
 Middle managers
 Sales manager, branch manager, or department head
 First-line managers
 Crew leader, supervisor, head nurse, or office manager
 Individual Contributors (ICs)
 Non-management operative employees
– Workers in the organization who are supervised by first-line
managers.
 Professionals/Specialists/Technicians (Knowledge
Workers)

Management Levels and Functional Areas
INDIVIDUAL CONTRIBUTORS OFTEN REPORT ANYWHERE
SOME
ORGANIZATIONS
“FLIP” THIS CHART
UPSIDE DOWN

Types of Managers
• General Managers
 Supervise the activities of several departments.
• Functional Managers
 Supervise the activities of related tasks.
 Common functional areas:
 Marketing/Sales/Product Development
 Operations/Production/Services Delivery
 Finance/Accounting
 Human Resources/personnel management
 Infrastructure (IT, Real Estate, Legal)
• Project Managers
 Coordinate employees across several functional departments
to accomplish a specific task.

What Managers Do
• Managerial activities differ by
The functions managers serve
The roles in which managers operate
The dimensions of each manager’s job
Skills Approach

Management in Organizations
Inputs from the environment
• Human resources
• Financial resources
• Physical resources
• Information resources
Planning
and decision
making
Leading
Organizing
Controlling
Goals attained
• Efficiently
• Effectively

Management
Process
Activities
Managerial Functions

Management Process
• Planning
Includes defining goals, establishing strategy, and
developing plans to coordinate activities
• Organizing
Includes determining what tasks
to be done, who is to do them,
how the tasks are to be
grouped, who reports to
whom, and where
decisions are to be made

Management Process
• Leading
Includes motivating employees, directing the activities
of others, selecting the most effective communication
channel, and resolving conflicts
• Controlling
The process of monitoring performance,
comparing it with goals, and
correcting any significant
deviations

Distribution of Time per Activity by
Organizational Level
Source: Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll,
“The Job(s) of Management,” Industrial Relations 4, No.2 (1965), p.103.

What Managers Actually Do (Mintzberg)
• Interaction
with others
with the organization
with the external context
of the organization
• Reflection
thoughtful thinking
• Action
practical doing

Mintzberg’s Managerial Roles
Role: A set of expectations of how one will behave
in a given situation.
• Interpersonal
Figurehead
Leader
Liaison
• Informational
Monitor
Disseminator
Spokesperson
• Decisional
Entrepreneur
Disturbance hander
Resource allocator
Negotiator
Source: Adapted from The Nature of Managerial Work (paperback) by H. Mintzberg, Table 2, pp.92–93.
Copyright © 1973 Addison Wesley Longman. Reprinted by permission of Addison Wesley Longman.

Mintzberg’s Managerial Roles

Mintzberg’s Managerial Roles (cont’d)

Managerial Job Dimensions
• Activities or duties that must
be carried out
• Standards or levels of
minimum performance that
must be met.
Demands

• Factors that limit the
response of the manager
Time
Budgets
Technology
Attitudes of subordinates
Legal regulations
Demands
Constraints

• Discretionary behavior
How work is to be done
How much work is to be done
Who will do the work
What initiatives will be
undertaken from almost
infinite possibilities
Demands
Constraints
Choices

What Skills Do Managers Need?
 Interpersonal skills
 Sensitivity
 Persuasiveness
 Empathy
 Conceptual skills
 Logical reasoning
 Judgment
 Analytical abilities
 Technical skills
 Specialized knowledge
 (Including when and
how to use the skills)

Importance
Importance of Managerial Skills at
Different Organizational Levels
High
Low
Entry Level
Managers
Mid-Level
Managers
Top Level
Managers
Interpersonal skills
Technical skills
Conceptual skills

What Do Successful
and
Effective Managers Do?

What does it take to
become a
Successful
(and Effective) Manager?

What Does It Take to Be a Successful
Manager?
• Management Qualities (Survey of Execs.)
 Integrity, industriousness, and the ability to
get along with people
• Management Skills
 Technical
 Human and communication (Teaming)
 Conceptual and decision-making skills
 “Systems Thinking” & “Critical Thinking”
• The Ghiselli Study (6 Traits of Manager
Success – Inverse Order)
6) Initiative, 5)self-assurance,4) decisiveness, 3)
intelligence, 2) need for occupational
achievement, and 1) supervisory ability

Is The Manager’s Job Universal?
• Level in the organization
 Do managers manage differently based on where they are in the
organization?
• Profit versus not-for-profit
 Is managing in a commercial enterprise different than managing
in a non-commercial organization?
• Size of organization
 Does the size of an organization affect how managers function in
the organization?
• Management concepts and national borders
 Is management the same in all economic, cultural, social and
political systems?

Microsoft Case Questions
1.Which type of resource played
the most important role in the
success of Microsoft?
a. human c. financial
b. physical d. informational
2. Which of the management skills
is stressed most in the case
study?
a. technical
b. human and communication
c. conceptual and decision-
making
3. Which of the management
functions is stressed most in the
case study?
a. planning c. leading
b. organizing d. controlling
4. Bill Gates' participation in and
coordination of small units and his
delegation of authority to
managers to run their departments
are examples of the __
management function.
a. planning c. leading
b. organizing d. controlling
5. Which primary management role
did Bill Gates use to achieve
success?
a. interpersonal-leader
b. informational-monitor
c. decisional-negotiator
6. Bill Gates is at which level of
management?
a. top b. middle c. first-line

Microsoft Case
7. Which type of manager is Bill
Gates?
a. general
b. functional
c. project
8. Bill Gates has greater need for
which skills?
a. technical rather than conceptual
b. conceptual rather than technical
c. a balance of both
9. How does Bill Gates spend most of
his time?
a. planning and organizing
b. leading and controlling
c. a balance of both a and b
10. Would Ghiselli (6 Traits – page
10) agree that Bill Gates has
supervisory ability?
a. Yes b. No
11. Give examples of some of the
tasks Bill Gates performs in each
of the four management functions.
12. Give examples of some of the
tasks Bill Gates performs in each
of the three management roles.
13. Do you think you would like to
work tor Bill Gates? Explain your
answer.
14. Are Bill Gates and Microsoft
ethical and socially responsible?

Why Study Management?
• The Value of Studying Management
The universality of management
 Good management is needed in all organizations.
The reality of work
 Employees either manage or are managed.
Rewards and challenges of being a manager
 Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
 Successful managers receive significant monetary
rewards for their efforts.

Ethical Problems
in the Workplace
• Lying to supervisors
• Lying on reports or falsifying records
• Stealing and theft
• Sexual harassment
• Abusing drugs or alcohol
• Conflict of interest

How The Manager’s Job Is Changing
• The Increasing Importance of Customers
Customers: the reason that organizations exist
 Managing customer relationships is the responsibility of
all managers and employees.
 Consistent high quality customer service is essential for
survival.
• Innovation
Doing things differently, exploring new territory, and
taking risks
 Managers should encourage employees to be aware of
and act on opportunities for innovation.

Changes Impacting
the Manager’s Job

How Much Importance Does the
Marketplace put on Managers?
• Good (effective) managerial skills are a scarce
commodity.
Managerial compensation packages are one measure
of the value that organizations place on them.
Management compensation reflects the market forces
of supply and demand.
 Management superstars, like superstar athletes in
professional sports, are wooed with signing bonuses,
interest-free loans, performance incentive packages,
and guaranteed contracts.

Rewards and Challenges of Being A Manager

Small-Business Management
• What is a Small Business?
An independently owned and managed profit-seeking
enterprise with fewer than 100 employees.
• Exploding Myths About Small Businesses
The 80-percent-failure-rate myth
 Research shows a failure rate of only 18 percent for
small businesses over an 8-year period.
Low-wage-jobs myth
 Rapidly growing small businesses (“gazelles”)
accounted for 56% of new job growth and added to the
majority of high paying jobs from 1980 to 1990.

Entrepreneurship
• Entrepreneurship
The process by which individuals–either on their own
or inside organizations–pursue opportunities without
regard to the resources they currently control.
• Entrepreneur’s Dilemma
Either grow with the company or have the courage to
step aside and turn control over to professional
managers with the requisite administrative skills.

Entrepreneurship
• Traits of Entrepreneurs
Focus is on envisioned futures.
Emphasize external/market dimensions.
Display a medium-to-high tolerance for ambiguity.
Exhibit moderate-to-high risk-taking behavior.
Obtain motivation from a need to achieve.
Possess technical knowledge and experience in the
innovative area.

Importance of
Managerial Roles
in Small and Large
Businesses
Source: Adapted from J. G. P. Paolillo, “The Manager’s Self Assessments of Managerial Roles:
Small vs. Large Firms,” American Journals of Small Business, January–March 1984, pp.61–62.

Introduction -Class 1,2.ppt

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