Chapter 01 - College of Business

Transcript Chapter 01 - College of Business

© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

PowerPoint Presentation by Charlie Cook The University of West Alabama

Learning Objectives

Describe the nature of management, define management and managers, and characterize their importance to contemporary organizations.

Identify and briefly explain the four basic management functions in organizations.

Describe the kinds of managers found at different levels and in different areas of the organization.

Identify the basic managerial roles that managers play and the skills they need to be successful.

Discuss the science and the art of management, describe how people become managers, and summarize the scope of management in organizations.

Characterize the new workplace that is emerging in organizations today.

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What Is an Organization?

•

A group of people working together in a structured and coordinated fashion to achieve a set of goals.

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Types of Organizational Resources

Organizational Resources Physical Resources Human Resources Information Resources Financial Resources © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Organizational Resources

•

Human resources

 Managerial talent and labor •

Financial resources

 Capital investments to support ongoing and long-term operations •

Physical resources

 Raw materials; office and production facilities, and equipment •

Information resources

 Usable data, information linkages

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1.1

Examples of Resources Used by Organizations

Organization Royal Dutch/ Shell Group Michigan State University New York City Human Resources Drilling platform workers Corporate executives Faculty Administrative staff Police officers Municipal employees Financial Resources Profits Stockholder investments Alumni contributions Government grants Tax revenue Government grants Susan’s Corner Grocery Store Grocery clerks Bookkeeper Profits Owner investment Physical Resources Refineries Office buildings Computers Campus facilities Sanitation equipment Municipal buildings Building Display shelving Information Resources Sales forecasts OPEC proclamations Research reports Government publications Economic forecasts Crime statistics Price lists from suppliers Newspaper ads for competitors © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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What is Management?

•

A set of activities



planning and decision making, organizing, leading, and controlling

directed at an organization’s resources



human, financial, physical, and information

with the aim of achieving organizational goals in an

efficient

and

effective

manner.

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1.1

Management in Organizations

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The Basic Purpose of Management

EFFICIENTLY

Using resources wisely and in a cost-effective way

And

EFFECTIVELY

Making the right decisions and successfully implementing them

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What is a Manager?

•

Someone whose primary responsibility is to carry out the management process.

 Plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.

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The Manager’s Job

•

Plan:

 A manager cannot operate effectively unless he or she has long range plans.

•

Organize

 When there is more than one employee needed to carry out a plan, then organization is needed.

•

Control

 Develop a method to know how well employees are performing to determine what has been and what still must be done.

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1.2

The Management Process

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The Management Process

•

Planning and Decision Making:

Determining goals and courses of action

•

Organizing:

Coordinating activities and resources

•

Leading:

Motivating and managing people

•

Controlling:

Monitoring and evaluating activities

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1.3

Kinds of Managers by Level and Area

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Kinds of Managers by Level

•

Top Managers

 are the small group of executives who manage the overall organization. They create the organization’s goals, overall strategy, and operating policies.

•

Middle Managers

 are primarily responsible for implementing the policies and plans of top managers. They also supervise and coordinate the activities of lower level managers.

•

First-Line Managers

 supervise and coordinate the activities of operating employees.

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Kinds of Managers by Area

Marketing Managers Financial Managers Operations Managers Kinds of Managers by Area © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Human Resources Managers Administrative Managers Specialist Managers 1 –16

Kinds of Managers by Area

•

Marketing Managers

 work in areas related to getting consumers and clients to buy the organization’s products or services—new product development, promotion, and distribution.

•

Financial Managers

 deal primarily with an organization’s financial resources —accounting, cash management, and investments.

•

Operations Managers

 are involved with systems that create products and services —production control, inventory, quality control, plant layout, site selection.

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Kinds of Managers by Area (cont’d)

•

Human Resources Managers

 are involved in human resource activities.

•

Administrative Managers

 are generalists familiar with all functional areas of management and are not associated with any particular management specialty. •

Other Kinds of Managers

 hold specialized managerial positions (e.g., public relations managers) directly related to the needs of the organization.

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Basic Managerial Roles and Skills

•

Regardless of level or area, all managers must play certain roles and exhibit specific skills in order to be successful.

•

Managers:

 Do certain things.

 Meet certain needs.

 Have certain responsibilities.

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Lights, Roll Camera, Manage !!!

Interpersonal Roles Informational Roles Managerial Roles Decisional Roles © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Managerial Roles (Mintzberg)

•

Interpersonal Roles

 Figurehead, leader, and liaison roles involve dealing with other people.

•

Informational Roles

 Monitor, disseminator, and spokesperson roles involve the processing of information.

•

Decisional Roles

 Entrepreneur, disturbance handler, resource allocator, and negotiator are managerial roles primarily related to making decisions.

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1.2

Ten Basic Managerial Roles

Category Interpersonal Informational Decisional Role

Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance handler Resource allocator Negotiator

Sample Activities

Attending ribbon-cutting ceremony for new plant Encouraging employees to improve productivity Coordinating activities of two project groups Scanning industry reports to stay abreast of developments Sending memos outlining new organizational initiatives Making a speech to discuss growth plans Developing new ideas for innovation Resolving conflict between two subordinates Reviewing and revising budget requests Reaching agreement with a key supplier or labor union

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What Skills Do Managers Need?

Technical Interpersonal Conceptual Fundamental Management Skills Diagnostic Communication Decision Making Time Management © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Managerial Skills

•

Technical

 To accomplish or understand the specific kind of work being done in an organization.

•

Interpersonal

 To communicate with, understand, and motivate both individuals and groups.

•

Conceptual

 To think in the abstract.

•

Diagnostic

 To visualize the appropriate response to a situation.

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Managerial Skills (cont’d)

•

Communication

 To convey ideas and information effectively to others and to receive the same effectively from others.

•

Decision-Making

 To recognize and define problems and opportunities and then to select an appropriate course of action to solve problems and capitalize on opportunities.

•

Time-Management

 To prioritize work, to work efficiently, and to delegate appropriately.

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Management: Science or Art?

• The Science of Management  Assumes that problems can be approached using rational, logical, objective, and systematic ways.

 Requires the use of technical, diagnostic, and decision-making skills and techniques to solve problems.

• The Art of Management  Making decisions and solving problems using a blend of intuition, experience, instinct, and personal insights.

 Using conceptual, communication, interpersonal, and time management skills to accomplish the tasks associated with managerial activities.

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Management Challenge Question

•

What do you say to your boss when your boss wants you to make the numbers fit the forecast?

What do you want the numbers to be?

Which numbers are right? which are wrong?

No problem. If anyone asks, I’ll say that I deferred to your judgment and am using your numbers.

What are the consequences if I refuse to do that?

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1.4

Sources of Management Skills

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The Scope of Management

• For-Profit Organizations  Large businesses  Industrial firms, commercial banks, insurance firms, retailers, transportation firms, utilities, communication firms, service organizations  Small businesses and start-up businesses  International management • Not-for-Profit Organizations  Governmental organizations —local, state, and federal  Educational organizations —public and private schools, colleges, and universities  Healthcare facilities —public hospitals and HMOs  Nontraditional settings —community, social, spiritual groups

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You’re the Manager

• The Situation:  The group manager that you replacing has remained on job for a short time to train you, however he did not actively involve you in daily operations. He departs permanently after today’s meeting.

 Morale is low because the group manager has been running a one-person show with no significant delegation or participation by other employees.

 The overall performance of the group appears to be far below its current capabilities.

• What will you do first?

• After that, what will you do next?

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• organization • management • effective • efficient • manager • decision making • organizing • leading • controlling • levels of management • areas of management • interpersonal roles • informational roles • decisional roles • technical skills • interpersonal skills • conceptual skills • diagnostic skills • communication skills • decision-making skills • time-management skills

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