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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.

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Managers and Managing
Managers and Managing
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
Learning Objectives
Describe what management is, why management is
important, what managers do, and how managers
utilize organizational resources efficiently and
effectively to achieve organizational goals
Distinguish among planning, organizing, leading, and
controlling (the four managerial functions), and
explain how managers ability to handle each one
can affect organizational performance
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
Learning Objectives
Differentiate among three levels of management,
and understand the responsibilities of managers at
different levels in the organizational hierarchy
Identify the roles managers perform, the skills they
need to execute those roles effectively and the way
new information technology is affecting these roles
and skills
Discuss the principal challenges managers face in
todays increasingly competitive global environment
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Steve J obs Apple
Steve J obs Apple
How does Steve
Jobs pursue high-
performance
management at
Apple?
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
What is Management?
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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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Managers
Managers
Managers
The people responsible for supervising the
use of an organizations resources to meet
its goals
Resources include people, skills, knowledge,
machinery,
computers and IT,
and financial capital
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Figure 1.1
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Performance
Organizational Performance
A measure of how efficiently and
effectively managers are using
organizational resources to satisfy
customers and achieve goals
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Performance
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 they are achieved.
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Why study management?
Why study management?
Understanding what managers do and
how they do it is of central importance
to understanding how a society works
and how it creates wealth
Helps people deal with their bosses and
coworkers
Opens a path to a well-paying job and a
satisfying career
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Managerial Functions
Managerial Functions
Managers at all levels in all
organizations perform each of the
functions of planning, organizing,
leading, and controlling
Henri Fayol outlined the four
managerial functions in his book
General Industrial Management
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Four Functions of Management
Four Functions of Management
Figure 1.2
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Planning
Planning
Process of identifying and
selecting
appropriate
goals and
courses of
action
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Steps in the Planning Process
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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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Organizing
Organizing
Process of establishing a structure of
working relationships in a way that
allows organizational members to work
together to achieve organizational goals
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Organizational Structure
Organizational Structure
A formal system of task and reporting
relationships that coordinates and
motivates organizational members
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Leading
Leading
Articulating a clear vision to follow, and
energizing and enabling organizational
members so they understand the part
they play in attaining organizational
goals
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Leading
Leading
Leadership involves using power,
influence, vision, persuasion, and
communication skills
Outcome of leadership is highly
motivated and committed organizational
members
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
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
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Types of Managers
Types of Managers
First 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
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Types of Managers
Types of Managers
Top managers - Responsible for the
performance of all departments and have
cross-departmental responsibility. Establish
organizational goals and monitor middle
managers
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Levels of Management
Levels of Management
Figure 1.3
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Relative Amount of Time That Managers Spend
on the Four Managerial Functions
Relative Amount of Time That Managers Spend
on the Four Managerial Functions
Figure 1.4
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Areas of Managers
Areas of Managers
Department
A group of people who work together and
possess
similar skills
or use the same
knowledge, tools,
or techniques
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Restructuring
Restructuring
Involves the use of IT to downsize an
organization by eliminating the jobs of
large numbers of top, middle, or first-
line managers and non-managerial
employees
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Outsourcing
Outsourcing
Contracting with another company, usually
in a low cost country abroad, to perform an
activity the company previously performed
itself
Promotes efficiency by reducing costs and
allowing an organization to make better use
of its remaining resources
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Empowerment
Empowerment
Expanding employees knowledge, tasks,
and responsibilities by using powerful
new software programs
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Self-managed teams
Self-managed teams
Groups of employees with the
responsibility for supervising their own
actions such that the team can monitor
its members and the quality of the work
performed
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Managerial Roles and Skills
Managerial Roles and Skills
Managerial role - The set of specific
tasks that a person is expected to
perform because of the position he or
she holds in the organization
Mintzberg identified three categories of
roles Decisional, Informational,
Interpersonal
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Decisional Roles
Decisional Roles
Roles associated with methods managers use in
planning strategy and utilizing resources.
Entrepreneurdeciding which new projects or programs
to initiate and to invest resources in.
Disturbance handlermanaging an unexpected event or
crisis.
Resource allocatorassigning resources between
functions and divisions, setting the budgets of lower
managers.
Negotiatorreaching agreements between other
managers, unions, customers, or shareholders.
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Informational Roles
Informational Roles
Roles associated with the tasks needed to obtain and
transmit information in the process of managing the
organization.
Monitoranalyzing information from both the internal
and external environment.
Disseminatortransmitting information to influence the
attitudes and behavior of employees.
Spokespersonusing information to positively influence
the way people in and out of the organization respond
to it.
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Interpersonal Roles
Interpersonal Roles
Roles that managers assume to provide direction 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 high
employee performance.
Liaisonlinking and coordinating the activities of people
and groups both inside and outside the organization.
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Being a Manager
Being a Manager
Brevity
Brevity
Brevity
High Variety
High Variety
High Variety
Fragmentation
Fragmentation
Fragmentation
Managerial
Problems
Managerial
Managerial
Problems
Problems
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Managerial Skills
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 specific knowledge and techniques required to
perform an organizational role.
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Skill Types Needed
Skill Types Needed
Figure 1.5
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Competencies
Competencies
Specific set of skills, abilities, and
experiences that gives one manager
the ability to perform at a higher level
than another manager in a particular
organizational setting
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Challenges for Management in
a Global Environment
Challenges for Management in
a Global Environment
Rise of Global Organizations.
Building a Competitive Advantage
Maintaining Ethical and Socially Responsible
Standards
Managing a Diverse Workforce
Utilizing Information Technology and E-
commerce
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Building a Competitive
Advantage
Building a Competitive
Advantage
Increasing Efficiency
Increasing Quality
Increasing Speed, Flexibility, and
Innovation
Increasing Responsiveness to
Customers
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Building Blocks of Competitive
Advantage
Building Blocks of Competitive
Advantage
Figure 1.6
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Monty Python
Monty Python
In the opening scene
of Monty Python
and the Holy Grail
Is King Arthur being
effective traveling
across Britain by
banging coconuts
together? Efficient?
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Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Office Space
Office Space
What type of manager
is Bill Lumbergh in the movie
Office Space?