Jones George

1
(No Transcript)
2
Chapter
1

• The Management Process Today

3
Key Elements of Chapter

• Managers and Organizations
• Definition of Management
• Efficiency
• Effectiveness
• Approaches to Describing Management
• Functions
• Roles Decisional, Informational, Interpersonal
• Skills Conceptual, Human, Technical
• Management Competencies
• Challenges for Management
• Historical Roots of Management

4
What is Management?

• The planning, organizing, leading, and
  controlling of human and other resources to
  achieve organizational goals effectively and
  efficiently

5
Organizations

• Collections of people who work together and
  coordinate their actions to achieve a wide
  variety of goals
• Common characteristics
• Goals
• Structure
• People

6
Common Characteristics of Organizations
What role for managers?
Exhibit 1.1
7
Managers

• Managers
• The people responsible for supervising the use of
  an organizations resources to meet its goals
• Resources include people, skills, know-how,
  machinery, raw materials, computers and IT, and
  financial capital

8
Organizational Performance

• A measure of how efficiently and effectively
  managers are using organizational resources to
  satisfy customers and achieve goals

9
Organizational Performance

• Efficiency
• A measure of how well or 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.

10
Figure 1.1
What do you see managers doing to try and achieve
efficiency and effectiveness?
11
Why study management?

• The more effective and efficient use an
  organization can make of resources, the greater
  the relative well-being of people
• Almost all of us encounter managers because most
  people have jobs and bosses
• Understanding management is one important path
  toward obtaining a satisfying career
• Challenges of bad management, see
  http//www.badbossology.com/

12
Four Functions of Management
Figure 1.2
13
Planning

• Process of identifying and selecting appropriate
  goals and courses of action

14
Steps in the Planning Process

• Deciding which goals to pursue
• Deciding what courses of action to adopt
• Deciding how to allocate resources

15
Organizing

• Process of establishing a structure of working
  relationships in a way that allows organizational
  members to interact and cooperate to achieve
  organizational goals

16
Organizational Structure

• A formal system of task and reporting
  relationships that coordinates and motivates
  organizational members so that they work together
  to achieve organizational goals

17
Leading

• Articulating a clear vision to follow, and
  energizing and enabling organizational members so
  they understand the part they play in attaining
  organizational goals

18
Controlling

• Evaluating how well an organization is achieving
  its goals and taking action to maintain or
  improve performance
• The outcome of the control process is the ability
  to measure performance accurately and regulate
  efficiency and effectiveness

19
Types of Managers

• First line managers - Responsible for the daily
  supervision of non-managerial employees
• Middle managers - Supervise first-line managers.
  Are responsible to find the best way to use
  resources to achieve goals

20
Types of Managers

• Top managers - Responsible for the performance of
  all departments and have cross-departmental
  responsibility. Establish organizational goals,
  decide how different departments should interact
  and monitor middle managers

21
Types of Managers
Figure 1.3
22
Relative Amount of Time That Managers Spend on
the Four Managerial Functions
Figure 1.4
23
Restructuring

• Involves the use of IT to downsize an
  organization by eliminating the jobs of large
  numbers of top, middle, or first-line managers
  and non-managerial employees

24
Outsourcing

• Contracting with another company, usually in a
  low cost country abroad, to perform an activity
  the company previously performed itself
• Promotes efficiency by reducing costs and
  allowing an organization to make better use of
  its remaining resources

25
Empowerment

• Expanding employees knowledge, tasks, and
  responsibilities by using powerful new software
  programs

26
Self-managed teams

• Groups of employees with the responsibility for
  supervising their own activities and for
  monitoring the quality of the goods and services
  they provide

27
IT Managerial Roles and Skills

• Managerial role - The set of specific tasks that
  a person is expected to perform because of the
  position he or she holds in the organization

28
IT Managerial Roles and Skills

• Mintzberg identified three categories of roles
• Decisional
• Informational
• Interpersonal

29
Decisional Roles

• Roles associated with methods managers use in
  planning strategy and utilizing resources.
• Entrepreneurdeciding which new projects or
  programs to initiate and to invest resources in.
• Disturbance handlermanaging an unexpected event
  or crisis.
• Resource allocatorassigning resources between
  functions and divisions, setting the budgets of
  lower managers.
• Negotiatorreaching agreements between other
  managers, unions, customers, or shareholders.

30
Informational Roles

• Roles associated with the tasks needed to obtain
  and transmit information in the process of
  managing the organization.
• Monitoranalyzing information from both the
  internal and external environment.
• Disseminatortransmitting information to
  influence the attitudes and behavior of
  employees.
• Spokespersonusing information to positively
  influence the way people in and out of the
  organization respond to it.

31
Interpersonal Roles

• Roles that managers assume to provide direction
  and supervision to both employees and the
  organization as a whole.
• Figureheadsymbolizing the organizations mission
  and what it is seeking to achieve.
• Leadertraining, counseling, and mentoring high
  employee performance.
• Liaisonlinking and coordinating the activities
  of people and groups both inside and outside the
  organization.

32
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
• The specific knowledge and techniques required to
  perform an organizational role.

33
Competencies

• Specific set of skills, abilities, and
  experiences that allows one manager to perform
  at a higher level than another manager in a
  particular setting

34
Challenges for Management ina Global Environment

• Rise of Global Organizations.
• Building a Competitive Advantage
• Maintaining Ethical and Socially Responsible
  Standards
• Managing a Diverse Workforce
• Utilizing IT and E-commerce

35
Competitive Advantage

• Ability of one organization to outperform other
  organizations because it produces desired goods
  or services more efficiently and effectively than
  they do

36
Building a Competitive Advantage

• Increasing Efficiency
• Increasing Quality
• Increasing Speed, Flexibility, and Innovation
• Increasing Responsiveness to Customers

37
Building Blocks of Competitive Advantage
Figure 1.5
38
What is a theory?

• Simplified explanation of events based on data.

What is an hypothesis?

• Speculation trying to explain events not based on
  data.
• An unproven theory.

39
Applications of Theories

• What benefits of theories?
• How widely are theories used?
• Theories in Use.

40
Classical Approach

• Scientific Management
• Frederick Taylor
• General Administrative Theory
• Henri Fayol
• Max Weber
• Stimulation Increase Productivity

41
Human Resources Approach

• Focused on People
• Industrial psychology
• Organizations as social systems
• Human Relations Movement
• Carnegie, Maslow, McGregor
• Optimism about people
• Stimulation Backlash to treating people as
  machines

42
Quantitative Approach

• Operations Research
• Statistical Techniques
• Stimulation Extend successful application of
  quantitative approaches during World War II to
  business decision making

43
Functional Approach

• Management activities
• Planning
• Organizing
• Leading
• Controlling
• Stimulation synthesis and simplification of
  diverse approaches

44
Systems Approach

• Organizations are composed of interrelated and
  interdependent parts
• Closed
• Open
• Stakeholder interactions
• Customers
• Employees
• Communities
• Investors
• Stimulation recognize organizations are
  interrelated and interdependent

45
The Organization and its Environment
EXHIBIT HM4
46
Contingency Approach

• Management depends on the situation
• Organization size
• Routineness of task technology
• Environmental uncertainty
• Individual differences
• Stimulation principles not universally
  applicable, must be adjusted to circumstances

47
What is the value of these approaches?

• What is the value of studying management?