Chapter 1 Managers and Managing in the 21st Century

1. Chapter 1Managers and Managingin the 21st Century FOM 1.1

2. Learning Outcomes • Explain what a manager is • Define the term management • Differentiate between efficiency and effectiveness • Describe the four basic management activities (continued)

3. Learning Outcomes (continued) • Classify the three levels of managers and identify the primary responsibility of each level • Summarize the essential roles performed by managers • Describe the four general skills necessary for becoming a successful manager (continued)

4. Learning Outcomes (continued) • Explain the changes in management over time • Describe the implications for managers of a changing world environment • Explain the importance of viewing management from a global perspective

5. Organization A systematic arrangement of people brought together to accomplish some specific purpose FOM 1.5

6. The Characteristics of an Organization People Purpose Structure

7. Supervise Others The Levels of an Organization Top Managers Middle Managers First-Line Managers Work on Jobs Front-Line Employees

8. Management Process of getting things done, efficiently and effectively, through and with other people FOM 1.8

9. Efficiency and Effectiveness Means Efficiency Ends Effectiveness Goals Goal Attainment Low Waste High Attainment Resource Usage FOM 1.9

10. Management Activities Organizing Determining what needs to be done, in what order, and by whom Planning Defining goals and establishing action plans Effective Management Controlling Monitoring activities to ensure that they are achieving results Leading Guiding and motivating all involved parties FOM 1.10

11. Changes in Management Over Time • Scientific management--”one best way” • General administrative theories--universal set of activities • Human relations--importance of human factor • Today, management is a blend scientific (efficiencies), general administrative (bureaucracy), and human relations (employees have a large impact on success of company)

12. Scientific Management • Developed by Frederick Taylor • One best way to get the job done • Viewed workers as inefficient • Promoted Four Principles • 1. Develop a science for each component of work • 2. Scientifically Select and Train Workers • 3. Actively cooperate with workers • 4. Divide work equally between workers and management

13. General Administrative Theories • Developed by Fayol • Described management as universal set of activities. • Focuses on division of labour, clear hierarchy, rules and impersonal relations

14. Human Relations • Idea surfaced in early 20th Century • Focused on the notion that work was done by people • Need to focus on human element • Maslow and motivation and Theory X and Theory Y

15. Mintzberg’s Managerial Roles Interpersonal Decisional Informational

16. Mintzberg Roles • See Page 11, Exhibit 1-4

17. Universality of Manager’s Job • Importance of roles varies depending on level in organization • Manager’s job in for-profit and not-for-profit organizations generally the same • Size of organization impacts whether manageris more of a generalist vs. more of a specialist • Not all management concepts are universal • Management concepts may need to be modified in other countries

18. Distribution of Manager’s Time

19. The Roles That Managers Play Small Firms Importance Large Firms High Resource Allocator Spokesperson Entrepreneur Figurehead Leader Liaison, Monitor Disturbance Handler Negotiator Moderate Disseminator Entrepreneur Low

20. Management Across National Borders • Concepts and ideas are transferable to most English-speaking, free- market democracies • We will need to modify some concepts in other countries

21. Managers and Decisions In order for managers to make decisions, they need to: • Identify critical problems • Gather and use appropriate data • Make sense of the information • Choose the best course of action

22. Managers and Change In order to deal with change, managers need to: • Be change agents • Be able to work in a dynamic environment • Be flexible and adaptable

23. General Management Skills CONCEPTUAL INTERPERSONAL TECHNICAL POLITICAL

24. Conceptual Skills • Mental ability to analyze and diagnose complex situations • Allow Managers to see how things fit

25. Interpersonal Skills • Ability to work with, understand, mentor and motivate others • Both individually and as a group • Many managers fail in this

26. Technical Skills • Ability to apply specialized knowledge or expertise • Engineer, accountant, etc

27. Political Skills • Ability to enhance one position, build a power base, and establish the right connection

28. Specific Management Skills • These explain 50% of a managers effectiveness • Controlling the organization’s environment and resources • Organizing and coordinating • Handling information • Providing for growth and development of staff • Motivating staff and handling conflicts • Strategic problem-solving

29. Management Competencies • Initiate and implement change • Monitor, maintain and improve performance • Monitor and control resources • Secure effective resource allocation • Recruit and select staff (continued)

30. Management Competencies (continued) • Develop teams, individuals, and self • Plan, allocate, and evaluate work • Create, maintain, and enhance relationships • Seek, evaluate, and organize information • Exchange information to solve problems

31. Managers and the Changing World Environment • Management is no longer constrained by national borders • Managers need to understand what is going on in the world • Managers need to take into consideration different economic, political, legal and cultural systems in other countries

32. Major Environmental Changes Affecting Managers • Technology • E-commerce • E-business • Knowledge workers

33. Management from a Global Perspective • Globalization--doing business on a world-wide scale • Managers need to be sensitive to issues in other countries • Managers also need to be aware of different cultures in Canada

34. Importance of Managers in the Marketplace • Good managers can help an organization perform successfully • Poor managers can do the reverse • Managers tend to earn more as their responsibilities and accountabilities increase

35. Is Understanding Management Important? • Management affects everyone in an organization • Poorly managed organizations will not be successful • A good manager is a combination of many factors