MGT420 Ch01

© 2007 Thomson/South-Western. All rights reserved.© 2007 Thomson/South-Western. All rights reserved.

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

Management Management and Managersand Managers

ChapterChapter

11

Part 1 Meeting the Challenges of the 21st CenturyPart 1 Meeting the Challenges of the 21st Century

© 2007 Thomson/South-Western. All rights reserved. 1–2

1.1. Define what management is.Define what management is.

2.2. Identify and explain the basic managerial functions.Identify and explain the basic managerial functions.

3.3. Understand the roles that managers play.Understand the roles that managers play.

4.4. Discuss the scope of responsibilities of functional and Discuss the scope of responsibilities of functional and general managers.general managers.

5.5. Describe the three levels of managers in terms of the Describe the three levels of managers in terms of the skills they need and the activities in which they are skills they need and the activities in which they are involved.involved.

6.6. Identify major changes in the 21st. century and Identify major changes in the 21st. century and explain how they will affect management of explain how they will affect management of organizations.organizations.

LEARNING OBJECTIVESLEARNING OBJECTIVESWhen you have finished studying this chapter, When you have finished studying this chapter, you should be able to:you should be able to:


LEARNING OBJECTIVES LEARNING OBJECTIVES (cont’d)(cont’d)

7.7. Explain the interactions between all of the major Explain the interactions between all of the major functions that managers perform; the interactions functions that managers perform; the interactions between planning, organizing, leading, and between planning, organizing, leading, and controlling.controlling.

8.8. Explain why it is important to study management.Explain why it is important to study management.

When you have finished studying this chapter, When you have finished studying this chapter, you should be able to:you should be able to:


What is Management?What is Management?• The Classic DefinitionThe Classic Definition

The art of getting things done through people.The art of getting things done through people.––Mary Parker Mary Parker

FollettFollett• A Broader DefinitionA Broader Definition

The process of administering and coordinating The process of administering and coordinating resources effectively, efficiently, and in an effort to resources effectively, efficiently, and in an effort to achieve the goals of the organization.achieve the goals of the organization.


Effectiveness versus EfficiencyEffectiveness versus Efficiency• EffectivenessEffectiveness

Achieved when the organization pursues appropriate Achieved when the organization pursues appropriate goals.goals.

This means “doing the right things.”This means “doing the right things.”• Efficiency Efficiency

Achieved by using the fewest inputs (e.g., people and Achieved by using the fewest inputs (e.g., people and money) to generate a given output.money) to generate a given output.

This means “doing things right.”This means “doing things right.”• The end result of effective and efficient The end result of effective and efficient

management is management is organizational successorganizational success..


Management TheoryManagement Theory• It is critical for managers to be able to lead It is critical for managers to be able to lead

people through the fast pace of change. people through the fast pace of change. Leadership is about coping with both complexity and Leadership is about coping with both complexity and

change.change. As change becomes more dynamic and rapid, As change becomes more dynamic and rapid,

managers at all levels must hone their leadership managers at all levels must hone their leadership skills.skills.

Therefore, leaders are managers and managers are Therefore, leaders are managers and managers are leaders.leaders.


The OrganizationThe Organization• An OrganizationAn Organization

A group of individuals who work together toward A group of individuals who work together toward common goals.common goals.

• What do all organizations have in common?What do all organizations have in common? They are composed of people whose efforts must be They are composed of people whose efforts must be

coordinated if the organization is to accomplish its coordinated if the organization is to accomplish its goals.goals.


Figure 1.Figure 1.1 1 The Management ProcessThe Management Process


Planning And OrganizingPlanning And Organizing• PlanningPlanning

Setting goals and defining the actions necessary to Setting goals and defining the actions necessary to achieve those goals.achieve those goals.

• OrganizingOrganizing The process of determining the tasks to be done, who The process of determining the tasks to be done, who

will do them, and how those tasks will be managed will do them, and how those tasks will be managed and coordinated.and coordinated.


LeadingLeading• LeadershipLeadership

The capacity to direct and motivate the members of The capacity to direct and motivate the members of work groups toward the accomplishment of work groups toward the accomplishment of organizational goals.organizational goals.

• Leadership Skills:Leadership Skills: Understanding individual/group behavior dynamicsUnderstanding individual/group behavior dynamics Having the ability to motivate employeesHaving the ability to motivate employees Being an effective communicatorBeing an effective communicator Being able to envision future and share that visionBeing able to envision future and share that vision


ControllingControlling• Monitoring the performance of the organization Monitoring the performance of the organization

and its progress in implementing strategic and and its progress in implementing strategic and operational plans.operational plans. Identifying deviations between planned and actual Identifying deviations between planned and actual

results.results. Taking corrective actionTaking corrective action Ensuring that the organization is moving toward the Ensuring that the organization is moving toward the

achievement of its goals.achievement of its goals.


ManagersManagers• Managers are the people who plan, organize, lead, Managers are the people who plan, organize, lead,

and control the activities of the organization so that and control the activities of the organization so that its goals can be achieved.its goals can be achieved.


Figure 1.Figure 1.2 2 Mintzberg’s Managerial RolesMintzberg’s Managerial Roles


Mintzberg’s Managerial RolesMintzberg’s Managerial Roles• Interpersonal RolesInterpersonal Roles

The manager’s responsibility for managing The manager’s responsibility for managing relationships with organizational members and other relationships with organizational members and other constituents:constituents:FigureheadFigureheadLeaderLeaderLiaisonLiaison


Mintzberg’s Managerial Roles Mintzberg’s Managerial Roles (cont’d)(cont’d)

• Informational RolesInformational Roles The manager’s responsibility for gathering and The manager’s responsibility for gathering and

disseminating information to the stakeholders of the disseminating information to the stakeholders of the organization:organization:MonitorMonitorDisseminatorDisseminatorSpokespersonSpokesperson


Mintzberg’s Managerial Roles Mintzberg’s Managerial Roles (cont’d)(cont’d)

• Decisional RolesDecisional Roles The manager’s responsibility for processing The manager’s responsibility for processing

information and reaching conclusions:information and reaching conclusions:EntrepreneurEntrepreneurDisturbance handlerDisturbance handlerResource allocatorResource allocatorNegotiatorNegotiator


Chief Executive Chief Executive General Parts Inc.General Parts Inc.

Plant Manager

Service Manager

Account Manager

Payroll Manager

A functional manager is responsible for a work group segmented by

function.

VP of VP of ProductionProduction

VP of Finance

Scope of Responsibility:Scope of Responsibility:Functional and General ManagersFunctional and General Managers

A general manager is responsible for several functional work groups.


Types of ManagersTypes of Managers• Functional ManagerFunctional Manager

A manager who is responsible for managing a work A manager who is responsible for managing a work unit that is grouped based on the function served.unit that is grouped based on the function served.

• General ManagerGeneral Manager A manager who is responsible for managing several A manager who is responsible for managing several

different departments that are responsible for different different departments that are responsible for different tasks.tasks.

• First-line managerFirst-line manager The manager who supervises the operational The manager who supervises the operational

employees.employees.


Figure 1.Figure 1.3 3 Managerial LevelsManagerial Levels


Figure 1.Figure 1.4 4 Skills Needed at Different Levels of ManagementSkills Needed at Different Levels of Management


Management SkillsManagement Skills• Technical SkillsTechnical Skills

The ability to utilize the knowledge of tools, The ability to utilize the knowledge of tools, techniques, and procedures that are specific to a techniques, and procedures that are specific to a particular field.particular field.

• Human SkillsHuman Skills The ability to work effectively with one’s own work The ability to work effectively with one’s own work

group as well as others within the organization.group as well as others within the organization.• Conceptual SkillsConceptual Skills

The ability to process information about the The ability to process information about the internal/external environment of the organization and internal/external environment of the organization and determine its implications.determine its implications.


The New Manager/Leader ProfileThe New Manager/Leader Profile• Managers who:Managers who:

Are no longer “the boss,” rather they act as sponsors, Are no longer “the boss,” rather they act as sponsors, team leaders, or internal consultants.team leaders, or internal consultants.

No longer control from the top of the pyramid; nor try No longer control from the top of the pyramid; nor try to control the action from the sidelines.to control the action from the sidelines.

Empower individual employees to do what is Empower individual employees to do what is necessary to achieve goals.necessary to achieve goals.

Make sure that employees have the resources to get Make sure that employees have the resources to get the job done.the job done.


Managing in the 21st CenturyManaging in the 21st Century• What’s different?What’s different?

The rate of change continues to increaseThe rate of change continues to increase• What’s the same?What’s the same?

The same basic business, economic, and managerial The same basic business, economic, and managerial principles still applyprinciples still apply

• Important change factors:Important change factors: The Internet and information technologyThe Internet and information technology Increasing globalizationIncreasing globalization Increasing diversityIncreasing diversity Intellectual capitalIntellectual capital Increased emphasis on ethics.Increased emphasis on ethics.


The Internet And Information The Internet And Information TechnologyTechnology• Electronic commerce is working.Electronic commerce is working.

E-businesses are using basic managerial and E-businesses are using basic managerial and business principles and are profitable.business principles and are profitable.

Traditional, brick-and-mortar businesses use of the Traditional, brick-and-mortar businesses use of the Internet as a complement their existing businesses.Internet as a complement their existing businesses.

• Benefits of Information TechnologyBenefits of Information Technology Instant feedback from the marketInstant feedback from the market More sharing of information internallyMore sharing of information internally Tighter links to suppliersTighter links to suppliers Increased globalization and global expansionIncreased globalization and global expansion


Increasing Globalization of the Increasing Globalization of the MarketplaceMarketplace• GlobalizationGlobalization

Various companies moving to multiple countries and Various companies moving to multiple countries and doing business in multiple countries.doing business in multiple countries.

• The international business environmentThe international business environment Involves most organizationsInvolves most organizations—e—even the smallest ven the smallest

business can reach a global marketplace with relative business can reach a global marketplace with relative ease.ease.

Presents unique managerial challenges in terms of Presents unique managerial challenges in terms of complexity and a broader set of environmental forces.complexity and a broader set of environmental forces.


Increasing Diversity in the WorkplaceIncreasing Diversity in the Workplace• DiversityDiversity

The heterogeneity of the population and work forceThe heterogeneity of the population and work force• The challenge of diversityThe challenge of diversity

Developing the strong organizational culture and Developing the strong organizational culture and group cohesiveness required for organizational group cohesiveness required for organizational success when the workplace includes people with success when the workplace includes people with different backgrounds, from different nations, or with different backgrounds, from different nations, or with different cultural frames of reference.different cultural frames of reference.


The Growing Importance of The Growing Importance of Intellectual CapitalIntellectual Capital• Intellectual capitalIntellectual capital

The sum and synergy of an organization’s knowledge, The sum and synergy of an organization’s knowledge, experience, relationships, processes, discoveries, experience, relationships, processes, discoveries, innovations, market presence and community innovations, market presence and community influence.influence.

• Major categories of intellectual capitalMajor categories of intellectual capital Structural capitalStructural capital Customer capitalCustomer capital Human capitalHuman capital


Categories of Intellectual CapitalCategories of Intellectual Capital• Structural capitalStructural capital

The accumulated knowledge of the organization The accumulated knowledge of the organization represented by its patents, trademarks and represented by its patents, trademarks and copyrights, proprietary databases, and systems.copyrights, proprietary databases, and systems.

• Customer capitalCustomer capital The value of established relationships with The value of established relationships with

customers and suppliers.customers and suppliers.• Human capitalHuman capital

The cumulative skills and knowledge of the The cumulative skills and knowledge of the organization.organization.


EthicsEthics• Ethical BehaviorEthical Behavior

Behavior that is considered by most to Behavior that is considered by most to be acceptable.be acceptable.

• Sarbanes–Oxley Act Sarbanes–Oxley Act Requires businesses to use certain Requires businesses to use certain

accounting rules that would prohibit the accounting rules that would prohibit the many financial abuses by managers many financial abuses by managers that came to light in recent years.that came to light in recent years.


An Overall Framework of ManagementAn Overall Framework of Management• External environmentExternal environment

The setting in which an organization operates; the The setting in which an organization operates; the markets and industry.markets and industry.

• CompetenciesCompetencies The things that an organization can do well; the skills The things that an organization can do well; the skills

and abilities.and abilities.• The functions of management all interact with The functions of management all interact with

each other, and together they lead to effective each other, and together they lead to effective and efficient achievement of an organization’s and efficient achievement of an organization’s overall goals.overall goals.


Figure 1Figure 1–5 –5 An Overall Framework of ManagementAn Overall Framework of Management


Why Study Management?Why Study Management?• Universal applicabilityUniversal applicability

The basic functions that managers perform, the roles The basic functions that managers perform, the roles that managers play, and the skills that managers use that managers play, and the skills that managers use are universal.are universal.

• Organizational needOrganizational need The basic functions—planning, organizing, leading, The basic functions—planning, organizing, leading,

and controlling—are required in every organization.and controlling—are required in every organization.

Business

MGT420 Ch01