Chapter 1 Managers & Managing

1. Chapter 1 Managers & Managing 1.1 The Role and Work of Managers 1.2 The Historical Development of Management 1.3 Managing in the 21st Century

2. Reality Check discussion • Key facts • Key terms • Company considerations • Erik’s considerations • Erik’s concerns • How would you help Erik make a decision about applying for a position?

3. Moving into Management • “I am in charge. I make the decisions. No one can tell me what to do.” • “I’m responsible. When problems occur, I have to fix them. If things go wrong, I’ll have to take the blame. Success or failure ultimately depends on me.”

4. The Changing Nature of Management • Make decisions that determine what a company does and how well it performs • Choose resources needed to operate • Make ideas a reality • What differences do you see between managers and regular employees?

5. Management Activities • Managers are in charge of all aspects of business • All managers perform very similar activities, regardless of the size, type of business and department • Management: the process of accomplishing the goals of an organization through the effective use of people and other resources. • Resources include all factors of production

6. Primary Management Activities • Planning – involves analyzing information and making decisions about what needs to get done • Organizing – is concerned with determining how plans can be accomplished most effectively and arranging resources to complete work • Implementing – focuses on carrying out the plans and helping employees to work effectively • Controlling – involves evaluating results to determine if the company’s objectives have been accomplished as planned

7. Management Activities cont’d • Planning examples: creating a vision, creating goals/standards, creating a list of resources needed and available, deciding how to best achieve goals • Organizing examples: delegating work, grouping tasks, designing job roles, designing the system to reach goals • Implementing examples: carrying out tasks, leading and motivating employees, communicating, conflict resolution • Controlling examples: monitoring plan, creating alternatives when plan is deviated from, evaluating effectiveness of plan, ensure goals are met

9. The Work of Managers • Many non-managers perform managerial functions • This is very beneficial to employees – why?? • Manager: completes all four management functions on a regular basis • Final authority and responsibility always remains with the manager

10. The Work of Managers cont’d • Most companies have more than 1 level of management • Pending the size, companies can have 2-6 management classifications • Management pyramid: describes the levels of management in an organization • Usually more managers at lower levels and fewer at higher levels

11. The Work of Managers cont’d • Supervisor: manager whose main job is to direct the work of employees. • First level of management in a company • In addition to overseeing, they often perform non-managerial functions • Middle Manager: completes all functions of management but spends most of the time completing specialized work in one management functions or is responsible for a specific part of operations

12. The Work of Managers cont’d • Executive: top-level manager who spends almost all time on management functions and decisions that affect the entire company • Other managers report to executives • Rarely work directly with non-managerial employees • Board of Directors: Non-employed leaders of a corporation. Elected officials who govern major company policies and decisions

13. The Work of Managers cont’d • Supervisors work more directly with regular employees on day to day tasks • Supervisors implement • Executives and middle managers work towards long-term direction and overall success of business • Executives and middle managers plan and organize • All managers control • Figure 1-2

17. Earliest Forms of Management • First managers had no precedent set for them • Think of the feats of engineering and construction the Egyptians and Romans had to conquer and accomplish!! • Emphasis was placed on completing the job over concern for workers • Manual labor ensued until the end of the 17th century • Governments provided public wants and individual/small businesses developed goods/services for private wants • Automation

18. The Industrial Revolution • Came from the invention of advanced machines that allowed for the faster processing of raw materials • Transformed the way we worked and how businesses were ran • Era between 1700s-1800s in which automation developed • Machine workers replaced artisans • Big inventions = steam engine, water power • What are the positive results?

19. Changing Approaches to Management • Industrial revolution proved long days, dangerous work conditions, poorly trained workers and child labor • As economy expanded, business operations needed to adapt to provide for more efficiency and effectiveness • Management science: the careful, objective study of management decisions and procedures in order to improve the operation of business and organizations • How can we pass on this knowledge?

20. Classical Management (1800-1920) • First effort of management science • Classical management:studies the way work is organized and the procedures used to complete a job in order to increase worker productivity • Work areas are arranged to make parts and materials readily accessible • Most competent employees learn best way to work and train others

21. Classical Management • Very experimental until the most efficient work procedure is found • Frederick W. Taylor hypothesized time and motion measurements to evaluate what the “best” way to perform a work task was • He observed workers to see who took the least amount of steps in the least amount of time wasting the least amount of resources • Piece rate compensation = pay based on output and productivity

22. Administrative Management • Works to improve the overall management of a growing business • Administrative management: identifies the most effective practices for organizing and managing a business • Management pyramid stemmed from this science • All managers must have a defined type of work to complete • Henri Fayol – early proponent • Identified 14 characteristics such as authority, responsibility, unity of command and purpose, compensation and good work relations

23. Behavioral Management • Focuses on recognizing dissatisfaction workers have at their job • Behavioral management: directed at organizational improvement through understanding employee motivation and behavior (human relations management) • Focuses on developing a work environment that promotes the value of the employee • Empower workers to do their best = productivity

24. Behavioral Management • A positive relationship between managers and employees is motivating • Managers need to find ways to improve working conditions and increase workers’ satisfaction • Hawthorne effect • Theory X and Theory Y

25. Quality Management (1950s on) • The first part of IR led to great productivity and in keeping up with that, efficiency started to give • TQM influenced by Japanese • W. Edward Deming learned practices from Japanese and brought back to U.S. • Quality management: a total commitment by everyone in an organization to improve the quality of procedures and products by reducing waste, errors and defects

28. Changes and Challenges for Managers • Workers – workforce is more diverse in the 2000s • All people able to work looking for a job or employed • Age, ethnic background, gender, education • Indicators • Workforce will become much younger • Increase as people live longer • Increase as people need to work longer (laws/finance) • Increase as people need to stay busy

29. Changes and Challenges for Managers cont’d • Over age 55 – 23% of WF by 2050 • Between 24-54 – 64% of WF by 2050 • Caucasian workers will decline to 50% by 2050 • Largest increase will be Hispanics (double) • Men and women will almost be treated 50/50 • By 2020s, over 60% of new job openings will require more than a HS diploma

30. Changes and Challenges for Managers cont’d • Work will be more organized into teams • Technology will continue to take over work • More jobs will be less physically demanding and more intellectually stimulating • Job requirements to increase: • Creativity • Critical thinking • Decision making • Problem solving

31. Changes and Challenges for Managers cont’d • Business competition will increase globally • Small businesses can even compete with large businesses on a global level through e-commerce • Businesses can create alliances through technology all over the globe • Distance and time zone changes are no longer barriers • More awareness of different cultures and values • Must be able to respond to these needs

32. Changes and Challenges for Managers cont’d • Technology is necessary for businesses to survive • Advantages of websites? • Telecommunication • Technology is used to speed up work processes • Technology allows to collect, analyze, record, export, monitor and track data • Technology is used to evaluate work activities and performance

33. Developing a Management Strategy • Management strategy: a carefully developed overall approach to leading an organization • Implements parts of various theories • Consider your business’s unique sets of characteristics • Cater to your resources • There are four major factors to consider in development

34. Developing a Management Strategy cont’d • The business considerations: • Large/small • Old/new • Retail/industrial • Service or manufacturing • The work • What kind of workload needs to be complete • What kind of workers do you employ and how many

35. Developing a Management Strategy cont’d • The business environment • Some can operate more freely • Some work in industries that are highly regulated • Some industries face critical competition because of similar products offered • Must demonstrate a level of social responsibility • The management • Levels of, numbers of, responsibilities of • How much of each theory will be implemented