m a n a g e m e n t 2e H i t t / B l a c k / P o r t e r

1. m a n a g e m e n t 2eH i t t / B l a c k / P o r t e r Chapter 1: Management and Organizations

2. Learning Objectives After studying this chapter, you should be able to: • Define the term management • Explain the major challenges with which managers must deal • Describe how historical research on management has contributed to the current practice of management • Identify and discuss the primary managerial functions

3. Learning Objectives • Explain the three general roles involved in managerial work and the specific roles within each • Explore and describe the three dimensions of managerial jobs • Discuss the primary skills required to be an effective manager

4. What is Management? Management is a process that involves: • Assembling and using sets of resources • Acting in a goal-directed manner to accomplish tasks • Activities carried out in an organizational setting

5. Managerial Challenges

6. Managerial Challenges: Managing Change Managing change: • Is the most persistent, pervasive and powerful challenge for managers • Requires managers to gain employee acceptance Two causes of change: • Technology • Globalization

7. Managerial Challenges: Managing Resources Managers must manage resources, including: • Financial capital • Human resources • Physical resources • Technology

8. Managerial Challenges: Managing Strategically Managers must: • Develop strategies to achieve the organization’s goals • Implement the strategies effectively by managing human resources

9. Managerial Challenges: Managing Entrepreneurially Managing entrepreneurially involves: • Searching for new opportunities • Identifying new ideas for new markets • Emphasizing actions to take advantage of uncertainty

10. Historical Approaches to Management • Ancient China and art of warfare • Ancient Egypt and building of pyramids • Roman Empire and building of roads and viaducts • Industrial Revolution and modern management

11. Scientific Management • The systematic study of the relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. • Study the way workers perform their tasks, gather all the informal job knowledge that workers possess and experiment with ways of improving how tasks are performed • Codify the new methods of performing tasks into written rules and standard operating procedures

12. Carefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures • Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level

13. Administrative Management • The study of how to create an organizational structure and control system that leads to high efficiency and effectiveness. • Max Weber • Developed the principles of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness.

14. Weber’s Principles of Democracy

15. Fayol’s Principles of Management

16. Rules, SOP’s and Norms • Rules • formal written instructions that specify actions to be taken under different circumstances to achieve specific goals • Standard Operating Procedures (SOPs) • specific sets of written instructions about how to perform a certain aspect of a task • Norms • unwritten, informal codes of conduct that prescribe how people should act in particular situations

17. What Managers Do Managerial activities differ by: • The functions managers serve • The roles in which managers operate • The dimensions of each manager’s job

18. Planning Controlling Organizing Directing Managerial Functions Managing Adapted from Exhibit 1.1

19. Planning Planning involves: • Estimating future conditions and circumstances • Making decisions based on these estimations about what work is to be done: • By the manager • By all of those for whom she or he is responsible

20. Organizing Organizing involves paying attention to: • The structure of relationships among positions • The people occupying those positions • Linking that structure to the overall strategic direction of the organization

21. Directing Directing is the process of influencing other people to attain organizational objectives: • Motivating others • Interacting effectively in group and team situations • Communicating in support of others’ efforts

22. Controlling Regulating the work of those for whom a manager is responsible, including: • Setting standards of performance in advance • Monitoring ongoing (real‑time) performance • Assessing a completed performance Results of the control process (evaluation) are fed back to the planning process

23. Managerial Roles • Figurehead: attending ceremonial activities • Leader: influencing or directing others • Liaison: contacting others outside the formal chain of command Interpersonal Roles Figurehead Leader Liaison Adapted from Exhibit 1.2

24. Managerial Roles Informational Roles Monitor Disseminator Spokesperson • Monitor: seeking information to be aware of crucial developments • Disseminator: receiving and sending information • Spokesperson: representing the views of the unit for which he/she is responsible Adapted from Exhibit 1.2

25. Managerial Roles Decisional Roles Entrepreneur Disturbance- handler Resource- allocator Negotiator • Entrepreneur: exploring new opportunities • Disturbance-handler: acting as a judge or problem solver in conflicts among employees • Resource-allocator: deciding how resources will be distributed • Negotiator: making accommodations with other units Adapted from Exhibit 1.2

26. Managerial Job Dimensions • Activities or duties that must be carried out • Standards or levels of minimum performance that must be met Demands

27. Managerial Job Dimensions Factors that limit the response of the manager: • Time • Budgets • Technology • Attitudes of subordinates • Legal regulations Demands Constraints

28. Managerial Job Dimensions Discretionary behavior • How work is to be done • How much work is to be done • Who will do the work • What initiatives will be undertaken from almost infinite possibilities Demands Constraints Choices

29. Two Managerial Jobs Adapted from Exhibit 1.3

30. Two Managerial Jobs Adapted from Exhibit 1.3

31. Two Managerial Jobs Adapted from Exhibit 1.3

32. What Skills Do Managers Need? TECHNICAL SKILLS Specialized knowledge (Including when and how to use the skills) • INTERPERSONAL SKILLS • Sensitivity, persuasiveness, empathy CONCEPTUAL SKILLS Logical reasoning, judgment, analytical abilities Adapted from Exhibit 1.4

33. Importance of Managerial Skills at Different Organizational Levels High Interpersonal skills Technical skills Importance Conceptual skills Low Entry-Level Managers Mid-Level Managers Top-Level Managers Adapted from Exhibit 1.5

34. Who Succeeds? Who Doesn’t? Potential leaders share traits early on: Those who don’t quite make it: Those who succeed: Bright, with outstanding track records Have been successful, but generally only in one area or type of job. Have diverse track records, demonstrated ability in many different situations, and a breadth of knowledge of the business or industry. Have survived stressful situations Often described as moody or volatile. May be able to keep their temper with superiors during crises but are hostile toward peers and subordinates. Maintain composure in stressful situations, are predictable during crises, are regarded as calm and confident. Adapted from Exhibit 1.6

35. Who Succeeds? Who Doesn’t? Potential leaders share traits early on: Those who don’t quite make it: Those who succeed: Have a few flaws Cover up problems while trying to fix them. If the problem can’t be hidden, they tend to go on the defensive and even blame someone else for it. Make a few mistakes, but when they do, they admit to them and handle them with poise and grace. Ambitious and oriented toward problem solving Micromanage a position, may staff with the incorrect people or neglect the talents they have, depend on a single mentor. Keep their minds focused on the next position, develop competent successors, seek advice from many sources. Adapted from Exhibit 1.6

36. Who Succeeds? Who Doesn’t? Potential leaders share traits early on: Those who don’t quite make it: Those who succeed: Good people skills May be viewed as charming but political or direct but tactless, cold, and arrogant. People don’t like to work with them Can get along well with different types of people, are outspoken without being offensive, are viewed as direct and diplomatic. Adapted from Exhibit 1.6