Essentials of Contempropry Management

8/11/2019 Essentials of Contempropry Management

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Chapter

1

PowerPoint Presentation by Charlie Cook Copyright The McGraw-Hill Companies, Inc., 2004. All rights reserved.

The Management Process

Essentials of

ContemporaryManagement


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Copyright 2004 McGraw-Hill. All rights reserved . 12

Learning Objectives

After studying the chapter, you should be able to:

Describe what management is, why management isimportant, what managers do, and how managersutilize organizational resources efficiently and

effectively to achieve organizational goals.

Distinguish amongplanning, organizing, leading,and controlling(the four managerial functions), andexplain how managers ability to handle each one can

affect organizational performance.


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Learning Objectives (contd)

Differentiate among three levels of management,and understand the responsibilities of managers atdifferent levels in the organizational hierarchy.

Identify the roles managers perform, the skills

they need to execute those roles effectively and theway new information technology is affecting theseroles and skills.

Discuss the principal challenges managers facein

todays increasingly competitive global environment.


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Efficiency, Effectiveness, and Performance in an Organization

Figure 1.1


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Organizational Performance

Organizational PerformanceA measure of how efficiently and effectively

managers are using organizational resources tosatisfy customers and achieve goals.

Efficiency

A measure of how well or productively resourcesare used to achieve a goal.

EffectivenessA measure of the appropriateness of the goals an

organization is pursuing and the degree to whichthey are achieved.

To get the r igh tthings done!

To do the things r igh t!


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Why Study Management?

Proper management directly impactsimprovements in the well-being of a society.

Studying management helps people to

understand what management is and

prepares them accomplish managerial

activities in their organizations.

Studying management opens a path to a well-

paying job and a satisfying career.



Four Functions of Management

Figure 1.2



Managerial Functions

Henri FayolFirst outlined the four managerial functions in his

book General Industrial Management.

Managers at all levels in all organizations perform

each of the functions of planning, organizing,leading, and controlling.



Planning

Identifying and selecting appropriate goalsand courses of action for an organization.

The planning function determines how effective andefficient the organization is and determines the

strategyof the organization.

Three Steps in the Planning Process:

Deciding which goals to pursue.

Deciding what courses of action to adopt.Deciding how to allocate resources.


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Management Key Concepts

OrganizationPeople working together and coordinating their

actions to achieve specific goals.

Goal/objective

A desired future condition that the organizationseeks to achieve.

Strategy

A cluster of decisions about what goals to pursue,what actions to take, and how to use resources toachieve goals.

c.f.policy


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Organizing

Structuring working re lat ionsh ipsin a waythat allows organizational members to worktogether to achieve organizational goals.

Organizational Structure

A formalsystem of task and reportingrelationships that coordinates and motivatesorganizational members.

Creating organizational structure:

Grouping employees into departmentsaccording tothe tasks performed.

Laying out lines of author i tyand responsib i l i tyfororganizational members.


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Leading

Articulating a clear vis ionto follow, andenergizingand enabling organizational

members so they understand the part they

play in attaining organizational goals.

Leadership involves using power, influence, vision,persuasion, and communication skills.

The outcome of leadership is highly motivated andcommitted organizational members.


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Controlling

Evaluating how well an organization isachieving its goals and taking action to

maintain or improve performance.

Monitoringindividuals, departments, and the

organization to determine if desired performancestandards have been reached.

Taking action to increase performance as required.

The outcome of control is the ability to measureperformance accurately and to regulate theorganization for efficiency and effectiveness.


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Types of Managers

Levels of ManagementFirst-line managers

Responsible for day-to-day operations. Supervise people

performing activities required to make the good or service.

Middle managers

Supervise first-line managers. Are responsible to find the

best way to use departmental resources to achieve goals.

Top managers

Responsible for the performance of all departments and

have cross-departmental responsibility.

Establish organizational goals and monitor middle

managers.

Form top management team along with the CEO and COO.


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Levels of Management

Figure 1.3


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IT and Managerial Roles and Skills

Information Technology (IT) is increasinglyused to help managers adopt a cross-departmental view of their organization.

Managerial Role

The set of specific tasks that a person is expectedto perform because of the position he or she holdsin the organization.

Roles are defined into three role categories (as

identified by Mintzberg):Interpersonal Informational Decisional


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Decisional Roles

Roles associated with methods managers usein planning strategy and utilizing resources:

Entrepreneurdeciding which new projects orprograms to initiate and to invest resources in.

Disturbance handlermanaging an unexpectedevent or crisis.

Resource allocatorassigning resources betweenfunctions and divisions, setting the budgets of

lower managers.

Negotiatorreaching agreements between othermanagers, unions, customers, or shareholders.


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Interpersonal Roles

Roles that managers assume to providedirection and supervision to both employees

and the organization as a whole:

Figureheadsymbolizing the organizations

mission and what it is seeking to achieve.

Leadertraining, counseling, and mentoring highemployee performance.

Liaisonlinking and coordinating the activities ofpeople and groups both inside and outside theorganization/department.


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Being a Manager

Brevity

High Variety Fragmentation

ManagerialProblems

Compensation to be a manager


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Managerial Skills

Conceptual SkillsThe ability to analyze and diagnose a situation and

distinguish between cause and effect.

Human Skills

The ability to understand, alter, lead, and controlthe behavior of other individuals and groups.

Technical Skills

The specific knowledge and techniques required toperform an organizational role.

What should be the right thing?

How can we do better?


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Skill Types Needed by Managerial Level


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Challenges for Managementin a Global Environment

Increasing Number of Global Organizations.

Building a Competitive Advantage.

Maintaining EthicalStandards.

Managing a DiverseWorkforce.

Utilizing ITand E-commerce.


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Building a Competitive Advantage

Increasing EfficiencyReducing the quantity of resources used to produce

goods and services.

Increasing Quality

Introducing Total Quality Management (TQM) toimprove quality.

Increasing Speed, Flexibility, and Innovation

Adapting to bring new products to market faster.

Increasing Responsivenessto Customers

Empowering employees to deal with customers.


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Building Blocks of Competitive Advantage

Figure 1.5


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Maintaining Ethical Standards

Factors Influencing Behaviors:External pressures from stockholders/stakeholders

for increased organizational financial performance.

Internal pressures from top management to lower-

level managers to increase the organizationscompetitive performance and profitability.

Societal, cultural, and environment demands on theorganization.

Hurt somebody unintendedly vs. illegally


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Managing a Diverse Workforce

The Increasing Diversity of the Workforce Non-Discriminatory Employment Practices

Performance-Enhancing Benefits of a Diverse

WorkforceThe oppo rtun i t ies for special ization


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C i ht 2004 M G Hill All i ht d 1 31

Readings on the historical management gurus

Appendix A of chapter 1 Brief the management thoughts

Documents

Essentials of Contempropry Management