The Management Process Today

1. The Management Process Today Chapter 01

2. Learning Objectives Describe what management is, why management is important, what managers do, and how managers use organizational resources efficiently and effectively to achieve organizational goals Distinguish among planning, organizing, leading, and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one affects organizational performance

3. Learning Objectives Differentiate among three levels of management, and understand the tasks and responsibilities of managers at different levels in the organizational hierarchy

4. Learning Objectives Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced information technology (IT) Discuss the principal challenges managers face in today’s increasingly competitive global environment

5. Learning Objectives Describe what management is, why management is important, what managers do, and how managers use organizational resources efficiently and effectively to achieve organizational goals

6. What is Management? Management: The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently “Getting work done through others” Organizations: Collections of people who work together and coordinate their actions to achieve a wide variety of goals

7. What is Management? Managers • The people responsible for supervising the use of an organization’s resources to meet its goals • Resources include: • People, skills, know-how, experience; machinery, raw materials, computers and IT, patents, and financial capital, and loyal customers and employees

8. Achieving High Performance Organizational performance: A measure of how efficiently and effectively managers use organizational resources to satisfy customers and achieve goals

9. Getting workdone throughothers Efficiently Effectively Management Is… 1

10. Organizational Performance Efficiency • A measure of how well or productively resources are used to achieve a goal • Getting work done with a minimum of effort, expense, or waste. Effectiveness • A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved • Accomplishing tasks that help fulfill organizational objectives.

11. Figure 1.1 - Efficiency, Effectiveness, and Performance in an Organization

12. Why Study Management? Managers decide how to allocate society’s most valuable resources effectively. • The more effective and efficient use an organization can make of resources, the greater the relative well-being of people Studying management provides perspective on understanding and learningto cope with bosses and coworkers. Students of management have the potential to compete successfully for interesting and well-paying jobs. • As managerial responsibility increases and people move up the organization hierarchy, salaries grow with responsibility. • The salaries paid to top managers and CEO are often quite large.

13. Learning Objective Distinguish among planning, organizing, leading, and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one affects organizational performance

14. Figure 1.2 - Four Tasks of Management

15. Planning Process of identifying and selecting appropriate goals and the courses of action to achieve the goals. Includes 3 steps, collectively called a “Strategy” • Deciding which goals to pursue • Deciding what course of action to adopt to attain those goals • Deciding how to allocate organizational resources The strategies determined during planning determines the effectiveness and efficiency of an organization.

16. Organizing Structuring working relationships so organizational members interact and cooperate to achieve organizational goals • Deciding where decisions will be made • Who will do what jobs and tasks • Who will work for whom 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 and energizing and enabling organizational members so they understand the part they play in attaining organizational goals Leadership involves managers using their power, personality, influence, persuasion, and communication skills to coordinate people and groups so their activities and efforts are in harmony. The outcome of leadership is a highly motivated and committed workforce

18. Controlling Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance • Outcome of the control process is the ability to measure performance accurately and regulate efficiency and effectiveness • Controlling helps managers evaluate how well they are performing the other 3 tasks of management— planning, organizing, and leading

19. Set standards toachieve goals The Control Process Compare actualperformance tostandards Make changesto returnperformance tostandards 2.4

20. Learning Objective Differentiate among three levels of management, and understand the tasks and responsibilities of managers at different levels in the organizational hierarchy

21. Levels and Skills of Managers Managers are grouped in : • Level or rank in the organization’s hierarchy • Based on their specific job-related skills, expertise, and experiences Department: A group of people who work together and possess similar skills or use the same knowledge, tools, or techniques to perform their jobs

22. Kinds of Managers • Top Managers • Middle Managers • First-Line Managers • Team Leaders 3

23. Levels and Skills of Managers First-line manager: Responsible for the daily supervision of nonmanagerial employees Middle manager: Supervises first-line managers and is responsible for finding the best way to use resources to achieve organizational goals Top manager: Establishes organizational goals, decides how departments should interact, and monitors the performance of middle managers Team Leaders: Facilitate team performance, Manage external relations and facilitate internal team relationships

24. Figure 1.5 - Types and Levels of Managers

25. Top-Management Team Group composed of the CEO, COO, CFO, and the heads of the most important departments Play a crucial role in determining an organization’s long-term performance • Creating a context for change • Developing commitmentand ownership in employees • Creating a positive organizational culture through language and action • Monitoring their business environments

26. Middle Managers • Plant Manager • Regional Manager • Divisional Manager 3.2 3

27. Responsibilities of Middle Managers Plan and allocate resources to meet objectives Coordinate and link groups, departments, and divisions Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers 3.2

28. First-Line Managers • Office Manager • Shift Supervisor • Department Manager 3.3 3

29. Responsibilities of First-Line Managers Manage the performance of entry-level employees Encourage, monitor, and reward the performance of workers Teach entry-level employees how to do their jobs Make detailed schedules and operating plans 3.3

30. Figure 1.4 - Relative Amount of Time That Managers Spend on the Four Managerial Tasks

31. Mintzberg’s Managerial Roles Interpersonal Informational Decisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator 4 H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975.

32. Managerial Roles Interpersonal Roles Figurehead Leader Liaison Managers perform ceremonial duties (welcome visitors, speak at opening of new facilities, support local charities Managers motivate and encourageworkers to accomplish objectives Managers deal with people outsidetheir units 4.1

33. Managerial Roles Monitor Disseminator Spokesperson Managers scan their environmentfor information Managers share information with others in their company Managers share informationwith others outside their departments or companies Informational Roles 4.2

34. Managerial Roles Decisional Roles Entrepreneur Disturbance Handler Resource Allocator Negotiator Managers adapt to incremental change Managers respond to problems thatdemand immediate action Managers decide who gets what resources Managers negotiate schedules, projects, goals, outcomes, resources, and raises 4.3

35. Learning Objective Distinguish among three kinds of managerial skill, and explain why managers are divided into different departments

36. Question? Which management skill is the ability to understand, alter, lead, and control the behavior of other individuals and groups? A. ConceptualB. HumanC. TeamD. Technological

37. Skills Companies Look for in Managers Conceptual skills: Ability to analyze and diagnose a situation and distinguish between cause and effect Human skills: Ability to understand, alter, lead, and control the behavior of other individuals and groups Technical skills: The job-specific knowledge and techniques required to perform an organizational role • Core competency: Specific set of skills, abilities, and experiences that allows one organization to outperform its competitors Motivation to Manage • An assessment of how motivated employees are to tackle the management job.

38. Question? What is the specific set of abilities that allows one manager to perform at a higher level than another manager?A. Skill-setsB. SKAsC. CompetenciesD. Skill traits

39. Managers’Initial Expectations After Six MonthsAs a Manager After a YearAs a Manager • Be the boss • Formal authority • Manage tasks • Job is not managing people • Initial expecta-tions were wrong • Fast pace • Heavy workload • Job is to beproblem-solverand troubleshooter • No longer “doer” • Communication,listening, positivereinforcement • Learning to adaptand control stress • Job is peopledevelopment Transition to Management (The First Year) 7

40. 1. Insensitive to others 2. Cold, aloof, arrogant 3. Betrayal of trust 4. Overly ambitious 5. Specific performance problems with the business 6. Overmanaging: unable to delegate or build a team 7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style 10. Overdependent on advocate or mentor Mistakes Managers Make 6 Adapted from McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983

41. Learning Objective Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced information technology (IT)

42. Recent Changes in Management Practices Restructuring: Downsizing an organization by eliminating the jobs of large numbers of top, middle, and first-line managers and nonmanagerial employees • Modern IT has increased each person’s ability to process information and make decisions more quickly and accurately

43. Recent Changes in Management Practices Outsourcing: Contracting with another company, usually abroad, to have it perform an activity the organization previously performed itself • Increases efficiency because it lowers operating costs, freeing up money and resources that can be used in more effective ways

44. Empowerment The expansion of employees’ knowledge, tasks, and decision-making responsibilities • Companies use their reward systems to promote empowerment • IT is being increasingly used to empower employees because it expands employees’ job knowledge and increases the scope of their job responsibilities

45. Self-Managed Teams A group of employees who assume responsibility for organizing, controlling, and supervising their own activities and monitoring the quality of the goods and services they provide Assume many tasks and responsibilities previously performed by first-line managers, so a company can better utilize its workforce

46. Global Organizations Organizations that operate and compete in more than one country

47. Learning Objective Discuss the principal challenges managers face in today’s increasingly competitive global environment

48. Challenges for Management ina Global Environment Building a competitive advantage • The ability of one organization to outperform other organizations in producing goods or services more efficiently and effectively • Companies can win or lose the competitive race depending on their speed and flexibility • Innovation: Process of creating new or improved goods and services or developing better ways to produce or provide them

49. Challenges for Management ina Global Environment Maintaining ethical standard • Pressure to increase performance can be healthy— it leads managers to question how the organization is working • Too much pressure to perform - induces managers to behave unethically

50. Challenges for Management ina Global Environment Managing a diverse workforce • Age, gender, race, ethnicity, religion, sexual preference, and socioeconomic composition of the workforce presents new challenges for managers • Establish procedures and practices that are legal, fair, and equitable Utilizing new information systems and technologies • Managers have to continually find efficient and effective ways to utilize new IT to better perform jobs