What is Management?

1. What is Management? Mr. Sherpinsky Business Management Class Council Rock School District

2. Learning Outcomes • Define management • Identify and explain the levels of management • Explain the management process • Understand the different perspectives of scientific management and the human relations movement

3. Group Activity Groups of 4 • Discuss: • 5 Conceptual Skills used over the last week • 5 Technical Skills used over the last week • 5 Human Relations Skills used over the last week • Elect a spokesperson

4. The World of Work • Taco Barn, Inc. • Tony Davis • Promotions Questions: 1-Do you think Tony is ready for this promotion? 2-The team at Tony’s location is performing well. Is there anything else that he needs to change? 3- What skills do you think Tony will need to succeed in his new role? (Page 6) 4- What should Tony do in his first week as manager?

5. The Business World Today • Constant change! • Technology • Society • Environment • Competition • Diversity

6. What is Management? • Management:The process of deciding how best to use a business’s resources to produce good or provide services… • Organization’s Resources: • Employees • Equipment • Money

7. What is Management? • Managers must: • Make good decisions • Communicate well • Assign work (delegate) • Plan • Train and motivate people • Appraise employee job performance

8. The Management Pyramid

9. Levels of Management • Senior management • Establishes the goal/objectives of the business • Decides how to use the company’s resources • Not involved in the day-to-day problems • Set the direction the company will follow • Board of Directors, CEO, COO, senior vice presidents

10. Levels of Management • Middle management • Responsible for meeting the goals that senior management sets • Sets goals for specific areas of the business • Decides which employees in each area must do to meet goals • Department heads, district sales managers

11. Levels of Management • Supervisory management • Make sure the day-to-day operations of the business run smoothly • Responsible for the people who physically produce the company's products or services • Forepersons, crew leaders, store managers • Also called “Line” managers

12. The Management Process • 3 ways to examine how management works: • Tasks performed • Planning, organizing, staffing, leading, controlling • Roles played • Set of behaviors associated with a particular job • Interpersonal, information-based, decision-making • Skills needed • Conceptual, human relations, technical

13. Role Playing • Class Activity: • Players: • Bob • Jane • Tom • Paula • Janice • Sam • Amelia

14. Management Tasks • 5 Major Tasks Performed: • Planning • Organizing • Staffing • Leading • Controlling

15. The Management Process • Planning • Decides company goals and the actions to meet them • CEO sets a goal of increasing sales by 10% in the next year by developing a new software program

16. The Management Process • Organizing • Groups related activities together and assigns employees to perform them • A manager sets up a team of employees to restock an aisle in a supermarket

17. The Management Process • Staffing • Decides how many and what kind of people a business needs to meet its goals and then recruits, selects, and trains the right people • A restaurant manager interviews and trains servers

18. The Management Process • Leading • Provides guidance employees need to perform their tasks • Keeping the lines of communication open • Holding regular staff meetings • One of the most important tasks of supervisory or line managers

19. The Management Process • Controlling • Measures how the business performs to ensure that financial goals are being met • Analyzing accounting records • Make changes if financial standards not being met • One of the most important tasks of supervisory or line managers

20. Relative Amount of Emphasis Placed on Each Function of Management Function

21. Management Roles • Managers have authority within organizations • Managers take on different roles to best use their authority • Interpersonal roles • Information-related roles • Decision-making roles

22. Mintzberg’s Managerial Roles

23. Mintzberg’s Management Roles • Interpersonal roles • A manager’s relationships with people • Figurehead: Performs symbolic duties • Leader: Establishes work atmosphere and motivates subordinates • Liaison: Develops and maintains webs of contacts outside of the organization

24. Mintzberg’s Management Roles • Informational-related roles • Provide knowledge, news or advice to employees • Monitor: Collect all types of information relevant and useful to organization • Disseminator: Gives other people the information they need to make decisions • Spokesperson: Transmits information to the outside world

25. Mintzberg’s Management Roles • Decisional-making roles • Makes changes in policies, resolves conflicts, decides how to best use resources • Entrepreneur: Initiates controlled change in the organization to adapt to changing environment • Disturbance Handler: Deal with the unexpected changes • Resource Allocator: Makes decisions on the use of organizational resources • Negotiator: Deals with other organizations and individuals

26. Mintzberg’s Findings • Mintzberg found that most managers are often placed into situations beyond their control such as: • Constant interruptions • Jumping from subject to subject • Problem to Problem • Rarely giving undivided or uninterrupted attention to anything for any length of time

27. Challenge • Mintzberg identified one of the biggest challenges of management as the necessity to be in the moment, rather than focusing on long-term plans. • Challenge: How do you see this in your own life? • Business Connection: How can we as managers get better at balancing challenges? (Identify 3 ways to do so)

28. Management Skills • All levels of management require a combination of conceptual, human relations, and technical skills • Conceptual skills most important at senior management level • Technical skills most important at lower levels • Human relations skills important at all levels

29. Conceptual, Human Relations, and Technical Skills • Human Relation Skills • Need to work well together • Resolving conflicts • Forming partnerships Conceptual Skills • Decision making planning, and organizing • Understanding how different businesses relate • Technical Skills • Abilities used to perform their job • Training people to use a new system

30. Conceptual, Human Relations, and Technical Skills

31. Management Skills • Conceptual skills • Skills that help managers understand how different parts of a business relate to one another and to the business as a whole • Decision making, planning, and organizing

32. Management Skills • Human relations skills • Skills managers need to understand and work well with people • Interviewing job applicants, forming partnerships with other businesses, resolving conflicts

33. Management Skills • Technical skills • The specific abilities that people use to perform their jobs • Operating various software applications • Overseeing things like: designing a brochure, training people to use a new budgeting system

34. History of Management • Knowledge is Power! • Where you’re going, where you’ve been! • Management is relatively a modern concept…

35. The Industrial Revolution • Began in the United States in 1860 • Just before the Civil War • Period during which a country develops an industrial economy • Before the Industrial Revolution, economy based on agriculture • By the late 1800s, economy depended on industries such as oil, steel, railroads, and manufactured goods

36. Causes of the Industrial Revolution • Many people left their farms to work in factories • Professional managers supervised their work • Changes in technology, communication, and transportation • Telegraph and cable lines extended across the U.S. after the Civil War • Railroad lines, canals, roads, steamships

37. Cornelius Vanderbilt(steamships & railroads) James B. Duke (tobacco) John D. Rockefeller (Oil) Andrew Carnegie (steel) J. P. Morgan (banking) Captains of Industry • Powerful businesspeople who created enormous business empires dominated and shaped the U.S. economy

38. Creation of Monopolies • The captains of industry often pursued profit and self-interest above all else • Drove competitors out of business • Created giant companies that maintained monopolies in their industries • Monopoly • Occurs when one party maintains total control over a type of industry • Trust: giant industrial monopoly • By 1879, Rockefeller controlled >90% of the country’s refining capacity and pipelines

39. The Break-Up of Trusts • People became worried about the concentration of wealth in the hands of a only a few • In response, the government began regulating business Cornelius Vanderbilt

40. The Break-Up of Trusts • The Interstate Commerce Act, 1887 • The railroads gave rebates to some customers but not others • This act forced railroads to publish their rates and forbade them to change rates without notifying the public • Established the Interstate Commerce Commission (ICC) to supervise the railroads

41. The Break-Up of Trusts • The Sherman Act, 1890 • Made it illegal for companies to create monopolies • Intended to restore competition • Example • Standard Oil Company was broken into smaller companies so that other oil companies could compete with the former giant • John D. Rockefeller

42. New Challenges for Management • When most Americans worked on farms, sophisticated management techniques were not necessary • By the end of the 19th century, giant companies employed thousands of people and distributed products all over the country • Workers performed tasks that needed to be coordinated • These changes demanded new ideas about how to manage people working in large corporations

43. Frederick W. Taylor and Scientific Management • Father of Scientific Management • Wanted to find ways to motivate workers to work harder • To increase efficiency, he tried to figure “one best way” to perform a particular task • Used a stopwatch to determine which work method was most efficient • These time and motion studies lead to scientific management principles

44. Frederick W. Taylor and Scientific Management • Scientific management seeks to increase productivity and make work easier by carefully studying work procedures and determining the best methods for performing particular tasks

45. Frederick W. Taylor and Scientific Management Henry Ford followed Taylor’s work • Created the assembly line • Mass production lowered costs • Could price car low enough to attract more customers • Every part was counted, production was timed • Paid a daily wage of $5 when the average was $2.50 • This allowed workers to become customers • Low morale & injuries resulted • Repetition caused boredom • High turnover

46. Frederick W. Taylor and Scientific Management • Companies today continue to use the principles of scientific management • Marriott Corporation • Customer satisfaction

47. The Hawthorne Studies of Productivity • In the roaring 20s--Researchers began to look at the relationship between working conditions and productivity • Series of experiments at the Hawthorne plant of Western Electric in Cicero, IL • Lowered the lighting and expected to see productivity to fall • What happened? • Productivity increased…Why?

48. The Hawthorne Studies of Productivity • Baffled by results, a team of psychologists from Harvard University were called upon • Over five years, hundreds of experiments were conducted at the plant • Different wage payments • Rest periods • Work hours • Other variables • What were the results? • Same: Productivity increased!!

49. The Hawthorne Studies of Productivity • Researchers concluded that productivity rose because workers worked harder when they received attention • Hawthorne effect • Change of any kind increases productivity • Factors other than the physical environment affected worker productivity • Psychological and social conditions, effective supervision

50. The Hawthorne Studies of Productivity • Informal group pressures • Teaming tends to drive everyone not to let the others on the team down…. • Individual recognition • Highlighting a worker contribution tends to motivate them to work harder • Participation in decision-making • When workers are part of the process they work harder