Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

The Management Process Today

Chapter One

1-2

Learning Objectives

LO1-1 Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals

LO1-2 Distinguish among planning, organizing, leading, and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one can affect organizational performance

LO1-3 Differentiate among three levels of management, and understand the tasks and responsibilities of managers at different levels in the organizational hierarchy

1-3

Learning Objectives

LO1-4 Distinguish between three kinds of managerial skill, and explain why managers are divided into different departments

LO1-5 Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced information technology (IT)

LO1-6 Discuss the principal challenges managers face in today’s increasingly competitive global environment

1-4

What is Management?

Management The planning, organizing, leading, and

controlling of human and other resources to achieve organizational goals effectively and efficiently

1-5

What is Management?

Organizations Collections of people

who work together and coordinate their actions to achieve a wide variety of goals

1-6

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,

machinery, raw materials, computers and IT, and financial capital

1-7

Achieving High Performance

Organizational Performance A measure of how efficiently and effectively

managers use organizational resources to satisfy customers and achieve organizational goals

1-8

Efficiency, Effectiveness, andPerformance in an Organization

Figure 1.1

1-9

Organizational Performance

Efficiency A measure of how

well or 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 the organization achieves those goals.

1-10

Why study management?

The more effective and efficient use an organization can make of resources, the greater the relative well-being of people

Almost all of us encounter managers because most people have jobs and bosses

Understanding management is one important path toward obtaining a satisfying career

1-11

Four Tasks of Management

Figure 1.2

1-12

Planning

Planning Process of

identifying and selecting appropriate goals and courses of action

1-13

Steps in the Planning Process

1. Deciding which goals to pursue2. Deciding what strategies to adopt to attain

those goals3. Deciding how to allocate organizational

resources

1-14

Planning

Strategy cluster of decisions about what goals to pursue,

what actions to take, and how to use resources to achieve goals

1-15

Organizing

Organizing Structuring working relationships in a way that

allows organizational members to work together to achieve organizational goals

1-16

Organizing

• 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

1-17

Leading

Leading Articulating a clear vision and energizing and

enabling organizational members so they understand the part they play in attaining organizational goals

1-18

Controlling

Controlling Evaluating how well an organization is achieving

its goals and taking action to maintain or improve performance

The outcome of the control process is the ability to measure performance accurately and regulate efficiency and effectiveness

1-19

Question?

What is a group of people who work together and possess similar skills or use the same knowledge, tools, or techniques?A. OrganizationB. DepartmentC. TeamD. Presentation Group

1-20

Levels and Skills of Managers

Department A group of people who work together and

possess similar skills or use the same knowledge, tools, or techniques to perform their jobs

1-21

Levels of Management

First line managers Responsible for the daily supervision of non-

managerial employeesMiddle managers

Supervise first-line managers and are responsible for finding the best way to use resources to achieve organizational goals

1-22

Levels of Management

Top managers establish organizational goals, decide how

departments should interact, and monitor the performance of middle managers

1-23

Levels of ManagersFigure 1.3

1-24

Relative Amount of Time That Managers Spend on the Four Managerial Tasks

Figure 1.4

1-25

Levels of Managers

Top-management team A group composed of the CEO, the COO, and the

vice presidents of the most important departments of a company.

1-26

Question?

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

1-27

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 The job-specific knowledge and techniques

required to perform an organizational role.

1-28

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

1-29

Technical Skills

Core competency Specific set of skills, abilities, and experiences that

allows one organization to outperform its competitors

1-30

Types and Levels of ManagersFigure 1.5

1-31

Recent Changes in Management Practices

Restructuring downsizing an organization by eliminating the

jobs of large numbers of top, middle, or first-line managers and non-managerial employees

1-32

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

1-33

Empowerment and Self-Managed Teams

Empowerment Expansion of

employees’ knowledge, tasks, and decision-making responsibilities

1-34

Empowerment and Self-Managed Teams

• Self-managed team – 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.

1-35

Challenges for Management ina Global Environment

Rise of Global Organizations.

Building a Competitive Advantage

Maintaining Ethical and Socially Responsible Standards

Managing a Diverse Workforce

Utilizing IT and E-Commerce

1-36

Challenges for Management ina Global Environment

Global organizations organizations that operate and compete in more

than one country

1-37

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 they do

1-38

Building Blocks of Competitive Advantage

Figure 1.6

1-39

Building a Competitive Advantage

Innovation process of creating new or improved goods and

services or developing better ways to produce or provide them

1-40

Video: Fed Ex

How do the managers at the FedEx Super-hub use planning, organizing, leading and controlling to sort one million nightly boxes and letters?