Introduction to management
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The document outlines the key concepts of management, including its definition, importance, and the roles of managers in utilizing resources to achieve organizational goals. It discusses the four principal managerial tasks (planning, organizing, leading, and controlling), the levels of management, and the necessary skills for effective performance. Additionally, it addresses contemporary challenges such as globalization, technological advancements, and ethical considerations in management.
Introduction to management
- 2. Managers and Managing McGraw-Hill/Irwin Contemporary Management, 5/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter one
- 3. 1-3 Learning Objectives 1. Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals 2. Distinguish among planning, organizing, leading, and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one affects organizational performance
- 4. 1-4 Learning Objectives 3. Differentiate among three levels of management, and understand the tasks and responsibilities of managers at different levels in the organizational hierarchy 4. Distinguish between three kinds of managerial skill, and explain why managers are divided into different departments to perform their tasks more efficiently and effectively.
- 5. 1-5 Learning Objectives 5. Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced information technology (IT). 6. Discuss the principal challenges managers face in today’s increasingly competitive global environment
- 6. 1-6 What is Management? • All managers work in organizations • Organizations – collections of people who work together and coordinate their actions to achieve a wide variety of goals
- 7. 1-7 Question? What is a person responsible for supervising the use of an organization’s resources to meet its goals? A. Team leader B. Manager C. President D. Resource allocator
- 8. 1-8 Managers Managers – – The people responsible for supervising the use of an organization’s resources to meet its goals
- 9. 1-9 What is Management? The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently
- 10. 1-10 What is Management? – Resources include people, skills, know-how and experience, machinery, raw materials, computers and IT, patents, financial capital, and loyal customers and employees
- 11. 1-11 Organizational Performance A measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals
- 12. 1-12 Figure 1.1
- 13. 1-13 Organizational Performance Efficiency – A measure of how well or how productively resources are used to achieve a goal Effectiveness – A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.
- 14. 1-14 Why study management? 1. The more efficient and effective use of scarce resources that organizations make of those resources, the greater the relative well-being and prosperity of people in that society
- 15. 1-15 Why study management? 2. Helps people deal with their bosses and coworkers 3. Opens a path to a well-paying job and a satisfying career
- 16. 1-16 Managerial Tasks • Managers at all levels in all organizations perform each of the four essential managerial tasks of planning, organizing, leading, and controlling
- 17. 1-17 Four Functions of Management Figure 1.2
- 18. 1-18 Organizational Structure A formal system of task and reporting relationships that coordinates and motivates members so that they work together to achieve organizational goals
- 19. 1-19 Levels of Management Figure 1.3
- 20. 1-20 Areas of Managers Department – A group of managers and employees who work together and possess similar skills or use the same knowledge, tools, or techniques
- 21. 1-21 Levels of Management • First line managers - Responsible for daily supervision of the non-managerial employees who perform many of the specific activities necessary to produce goods and services • Middle managers - Supervise first-line managers. Responsible for finding the best way to organize human and other resources to achieve organizational goals
- 22. 1-22 Levels of Management • Top managers – • Responsible for the performance of all departments and have cross-departmental responsibility. • Establish organizational goals and monitor middle managers • Decide how different departments should interact • Ultimately responsible for the success or failure of an organization
- 23. 1-23 Levels of Management • Chief executive officer (CEO) is company’s most senior and important manager • Central concern is creation of a smoothly functioning top-management team – CEO, COO, Department heads
- 24. 1-24 Relative Amount of Time That Managers Spend on the Four Managerial Functions Figure 1.4
- 25. 1-25 Question? What skill is the ability to understand, alter, lead, and control the behavior of other individuals and groups? A. Conceptual B. Human C. Technical D. Managerial
- 26. 1-26 Managerial Skills • Conceptual skills – The ability to analyze and diagnose a situation and distinguish between cause and effect. • Human skills – The ability to understand, alter, lead, and control the behavior of other individuals and groups. • Technical skills – Job-specific skills required to perform a particular type of work or occupation at a high level.
- 27. 1-27 Skill Types Needed Figure 1.5
- 28. 1-28 Core Competency Specific set of departmental skills, abilities, knowledge and experience that allows one organization to outperform its competitors
- 29. 1-29 Restructuring • Involves simplifying, shrinking, or downsizing an organization’s operations to lower operating costs – Can reduce the morale of remaining employees
- 30. 1-30 Outsourcing • Contracting with another company, usually in a low cost country abroad, to perform a work activity the company previously performed itself • Increases efficiency by lowering operating costs, freeing up money and resources that can now be used in more effective ways
- 31. 1-31 Empowerment Involves giving employees more authority and responsibility over the way they perform their work activities
- 32. 1-32 Self-managed teams Groups of employees who assume collective responsibility for organizing, controlling, and supervising their own work activities
- 33. 1-33 Discussion Question What is the biggest challenge for management in a Global Environment? A. Building a Competitive Advantage B. Maintaining Ethical Standards C. Managing a Diverse Workforce D. Global Crisis Management
- 34. 1-34 Challenges for Management in a Global Environment • Rise of Global Organizations. • Building a Competitive Advantage • Maintaining Ethical Standards • Managing a Diverse Workforce • Utilizing Information Technology and Technologies • Global Crisis Management
- 35. 1-35 Building Competitive Advantage • Competitive Advantage – ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors
- 36. 1-36 Building Blocks of Competitive Advantage Figure 1.6
- 37. 1-37 Building Competitive Advantage • Increasing efficiency – Reduce the quantity of resources used to produce goods or services • Increasing Quality – Improve the skills and abilities of the workforce – Introduce total quality management
- 38. 1-38 Building Competitive Advantage • Increasing speed, flexibility, and innovation – How fast a firm can bring new products to market – How easily a firm can change or alter the way they perform their activities
- 39. 1-39 Building Competitive Advantage • Innovation – Process of creating new or improved goods and services that customers want – Developing better ways to produce or provide goods and services
- 40. 1-40 Turnaround Management • Difficult and complex management task • Done under conditions of great uncertainty • Risk of failure is greater for a troubled company • More radical restructuring necessary
- 41. 1-41 Maintaining Ethical and Socially Responsible Standards • Managers are under considerable pressure to make the best use of resources • Too much pressure may induce managers to behave unethically, and even illegally
- 42. 1-42 Managing a Diverse Workforce • To create a highly trained and motivated workforce managers must establish HRM procedures that are legal, fair and do not discriminate against organizational members
- 43. 1-43 Global Crisis Management May be the result of: • Natural causes • Manmade causes • International terrorism • Geopolitical conflicts
- 44. 1-44 Movie Example: Office Space What type of manager is Bill Lumbergh in the movie “ Office Space”?
Editor's Notes
- #8: The correct answer is “B” Manager. See next slide
- #17: Henri Fayol outlined the four managerial functions in his book General Industrial Management
- #22: Major part of the middle manager’s job is developing and fine-tuning skills and know-how, such as manufacturing or marketing expertise, that allow the organization to be efficient and effective
- #26: The correct answer is “B”, Human skill. See slide 1-37.
- #34: There is no one correct answer. It will depend on the firm and it’s industry. Some firms need to spend more time with ethics, others with building a competitive advantage, etc. Students should be prepared to discuss based on an industry they are familiar with.
- #45: According to Leonard Maltin, in his 2004 movie and Video guide, “Office Space is a fitfully funny satire of office life in modern-day corporate America, with Ron Livingston as a computer programmer who hates his job and eventually finds a way to express his disdain for his company and his boss – Gary Cole as Bill Lumbergh, a Divisional VP. In the second scene, called The Memo, Lumbergh spends an inordinate amount of time worrying about a “new cover sheet on all TPS reports” There are two ways to look at type of manager. One, Lumbergh’s position in the company is a Vice President. In most companies, that would make him a middle-manager. Two, Lumbergh acts as a micromanager, focusing on a minor issue.