What is Management?
• All managers work in organizations
• Organizations – collections of people
who work together and coordinate their
actions to achieve a wide variety of goals
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Managers
Managers –
– The people responsible for supervising the
use of an organization’s resources to meet
its goals
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What is Management?
The planning, organizing, leading, and
controlling of human and other resources
to achieve organizational goals effectively
and efficiently
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What is Management?
– Resources include people, skills, know-how
and experience, machinery, raw materials,
computers and IT, patents, financial capital,
and loyal customers and employees
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Organizational Performance
A measure of how efficiently and effectively
managers use available resources to
satisfy customers and achieve
organizational goals
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Figure 1.1
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Organizational Performance
Efficiency
– A measure of how well or how productively
resources are used to achieve a goal
Effectiveness
– A measure of the appropriateness of the
goals an organization is pursuing and the
degree to which they are achieved.
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Why study management?
1. The more efficient and effective use of
scarce resources that organizations
make of those resources, the greater
the relative well-being and prosperity of
people in that society
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Why study management?
2. Helps people deal with their bosses
and coworkers
3. Opens a path to a well-paying job and
a satisfying
career
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Managerial Tasks
• Managers at all levels in all organizations
perform each of the four essential
managerial tasks of planning, organizing,
leading, and controlling
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Four Functions of Management
Figure 1.2 1-11
Planning
Process of identifying and selecting
appropriate organizational goals and
courses of action
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Steps in the Planning Process
• Deciding which goals the organization
will pursue
• Deciding what courses of action to
adopt to attain those goals
• Deciding how to allocate organizational
resources
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Planning
• Complex, difficult activity
• Strategy to adopt is not always
immediately clear
• Done under
uncertainty
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Organizing
Task managers perform to create a
structure of working relationships that
allow organizational members to interact
and cooperate to achieve organizational
goals
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Organizing
• Involves grouping people into
departments according to the kinds of
job-specific tasks they perform
• Managers lay out lines of authority and
responsibility
• Decide how to coordinate organizational
resources
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Organizational Structure
A formal system of task and reporting
relationships that coordinates and
motivates members so that they work
together to achieve organizational goals
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Leading
Articulating a clear organizational vision for
its members to accomplish, and energize
and enable employees so that everyone
understands the part they play in
achieving organizational goals
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Leading
• Leadership involves using power,
personality, and influence, persuasion,
and communication skills
• Outcome of leadership is highly
motivated and committed workforce
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Controlling
• Task of managers is to evaluate how
well an organization has achieved its
goals and to take any corrective actions
needed to maintain or improve
performance
– The outcome of the control process is the ability to
measure performance accurately and regulate
organizational efficiency and effectiveness
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Decisional Roles
Roles associated with methods managers use in planning
strategy and utilizing resources.
– Entrepreneur—deciding which new projects or programs to
initiate and to invest resources in.
– Disturbance handler—managing an unexpected event or
crisis.
– Resource allocator—assigning resources between
functions and divisions, setting the budgets of lower
managers.
– Negotiator—reaching agreements between other
managers, unions, customers, or shareholders.
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Interpersonal Roles
Roles that managers assume to provide direction and
supervision to both employees and the organization as
a whole.
– Figurehead—symbolizing the organization’s mission
and what it is seeking to achieve.
– Leader—training, counseling, and mentoring high
employee performance.
– Liaison—linking and coordinating the activities of
people and groups both inside and outside the
organization.
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Informational Roles
Roles associated with the tasks needed to obtain and
transmit information in the process of managing the
organization.
– Monitor—analyzing information from both the internal
and external environment.
– Disseminator—transmitting information to influence the
attitudes and behavior of employees.
– Spokesperson—using information to positively
influence the way people in and out of the organization
respond to it.
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Levels of Management
Figure 1.3
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Areas of Managers
Department
– A group of managers and employees who
work together and possess
similar skills
or use the same
knowledge, tools,
or techniques
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Levels of Management
• First line managers - Responsible for daily
supervision of the non-managerial employees who
perform many of the specific activities necessary to
produce goods and services
• Middle managers - Supervise first-line
managers. Responsible for finding the best way to
organize human and other resources to achieve
organizational goals
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Levels of Management
• Top managers –
• Responsible for the performance of all departments
and have cross-departmental responsibility.
• Establish organizational goals and monitor middle
managers
• Decide how different departments should interact
• Ultimately responsible for the success or failure of
an organization
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Levels of Management
• Chief executive officer (CEO) is
company’s most senior and important
manager
• Central concern is creation of a smoothly
functioning top-management team
– CEO, COO, Department heads
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Relative Amount of Time That Managers Spend on
the Four Managerial Functions
Figure 1.4 1-29
Question?
What skill is the ability to understand, alter,
lead, and control the behavior of other
individuals and groups?
A. Conceptual
B. Human
C. Technical
D. Managerial
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Managerial Skills
• Conceptual skills
– The ability to analyze and diagnose a situation and
distinguish between cause and effect.
• Human skills
– The ability to understand, alter, lead, and control
the behavior of other individuals and groups.
• Technical skills
– Job-specific skills required to perform a particular
type of work or occupation at a high level.
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Skill Types Needed
Figure 1.5 1-32
Core Competency
Specific set of departmental skills, abilities,
knowledge and experience that allows
one organization to outperform its
competitors
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Restructuring
• Involves simplifying, shrinking, or
downsizing an organization’s operations
to lower operating costs
– Can reduce the morale of remaining
employees
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Outsourcing
• Contracting with another company, usually in
a low cost country abroad, to perform a work
activity the company previously performed
itself
• Increases efficiency by lowering operating
costs, freeing up money and resources that
can now be used in more effective ways
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Empowerment
Involves giving
employees more
authority and
responsibility over
the way they perform
their work activities
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Self-managed teams
Groups of employees who assume
collective responsibility for organizing,
controlling, and supervising their own
work activities
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Discussion Question
What is the biggest challenge for
management in a Global Environment?
A. Building a Competitive Advantage
B. Maintaining Ethical Standards
C. Managing a Diverse Workforce
D. Global Crisis Management
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Challenges for Management in
a Global Environment
• Rise of Global Organizations.
• Building a Competitive Advantage
• Maintaining Ethical Standards
• Managing a Diverse Workforce
• Utilizing Information Technology and
Technologies
• Global Crisis Management
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Building Competitive Advantage
• Competitive Advantage – ability of one
organization to outperform other
organizations because it produces
desired goods or services more
efficiently and effectively than its
competitors
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Building Blocks of Competitive Advantage
Figure 1.6
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Building Competitive Advantage
• Increasing efficiency
– Reduce the quantity of resources used to
produce goods or services
• Increasing Quality
– Improve the skills and abilities of the
workforce
– Introduce total quality management
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Building Competitive Advantage
• Increasing speed, flexibility, and
innovation
– How fast a firm can bring new products to
market
– How easily a firm can change or alter the
way they perform their activities
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Building Competitive Advantage
• Innovation
– Process of creating new or improved goods
and services that customers want
– Developing better ways to produce or
provide goods and services
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Turnaround Management
• Difficult and complex management task
• Done under conditions of great
uncertainty
• Risk of failure is greater for a troubled
company
• More radical restructuring necessary
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Maintaining Ethical and Socially
Responsible Standards
• Managers are under considerable
pressure to make the best use of
resources
• Too much pressure may induce
managers to behave unethically, and
even illegally
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Managing a Diverse Workforce
• To create a highly trained and motivated
workforce managers must establish
HRM procedures that are legal, fair and
do not discriminate against
organizational members
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