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Essentials of




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

Learning Objectives
• After studying the chapter, you should be able to:
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
© Copyright 2004 McGraw-Hill.


Learning Objectives
Objectives (cont’d)
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 today’s increasingly competitive global
© Copyright 2004 McGraw-Hill.


1–4 . • Resources are organizational assets People Skills Knowledge Information Raw materials Machinery Financial capital © Copyright 2004 McGraw-Hill. organizing. leading.What What Is Is Management? Management? • Management The planning. • Managers The people responsible for supervising the use of an organization’s resources to meet its goals. and controlling of human and other resources to achieve organizational goals effectively and efficiently.

Figure 1. Effectiveness.Efficiency. Efficiency.1 1–5 . Effectiveness. and and Performance Performance in in an an Organization Organization © Copyright 2004 McGraw-Hill.

• Efficiency To do the things right! A measure of how well or productively resources are used to achieve a goal. © Copyright 2004 McGraw-Hill. 1–6 .Organizational Organizational Performance Performance • Organizational Performance A measure of how efficiently and effectively managers are using organizational resources to satisfy customers and achieve goals. • Effectiveness To get the right things done! A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.

• Studying management opens a path to a wellpaying job and a satisfying career. • Studying management helps people to understand what management is and prepares them accomplish managerial activities in their organizations.Why Why Study Study Management? Management? • Proper management directly impacts improvements in the well-being of a society. 1–7 . © Copyright 2004 McGraw-Hill.

Figure 1.Four Four Functions Functions of of Management Management © Copyright 2004 McGraw-Hill.2 1–8 .

organizing. Managers at all levels in all organizations perform each of the functions of planning.Managerial Managerial Functions Functions • Henri Fayol First outlined the four managerial functions in his book General Industrial Management. 1–9 . leading. © Copyright 2004 McGraw-Hill. and controlling.

Deciding how to allocate resources. © Copyright 2004 McGraw-Hill. 1–10 . • Three Steps in the Planning Process: Deciding which goals to pursue. Deciding what courses of action to adopt.Planning Planning • Identifying and selecting appropriate goals and courses of action for an organization. The planning function determines how effective and efficient the organization is and determines the strategy of the organization.

• Strategy c. policy A cluster of decisions about what goals to pursue. • Goal/objective A desired future condition that the organization seeks to achieve. 1–11 .f.Management Management Key Key Concepts Concepts • Organization People working together and coordinating their actions to achieve specific goals. © Copyright 2004 McGraw-Hill. and how to use resources to achieve goals. what actions to take.

• Laying out lines of authority and responsibility for organizational members. © Copyright 2004 McGraw-Hill. Creating organizational structure: • Grouping employees into departments according to the tasks performed.Organizing Organizing • Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals. • Organizational Structure A formal system of task and reporting relationships that coordinates and motivates organizational members. 1–12 .

1–13 . Leadership involves using power. © Copyright 2004 McGraw-Hill. and energizing and enabling organizational members so they understand the part they play in attaining organizational goals. The outcome of leadership is highly motivated and committed organizational members.Leading Leading • Articulating a clear vision to follow. persuasion. influence. vision. and communication skills.

and the organization to determine if desired performance standards have been reached. 1–14 . Monitoring individuals.Controlling Controlling • Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance. Taking action to increase performance as required. © Copyright 2004 McGraw-Hill. departments. The outcome of control is the ability to measure performance accurately and to regulate the organization for efficiency and effectiveness.

• Form top management team along with the CEO and COO. Supervise people performing activities required to make the good or service.Types Types of of Managers Managers • Levels of Management  First-line managers • Responsible for day-to-day operations. 1–15 .  Middle managers • Supervise first-line managers. Are responsible to find the best way to use departmental resources to achieve goals. • Establish organizational goals and monitor middle managers.  Top managers • Responsible for the performance of all departments and have cross-departmental responsibility. © Copyright 2004 McGraw-Hill.

Figure 1.Levels Levels of of Management Management © Copyright 2004 McGraw-Hill.3 1–16 .

Relative Relative Amount Amount of of Time Time That That Managers Managers Spend Spend on on the the Four Four Managerial Managerial Functions Functions © Copyright 2004 McGraw-Hill.4 1–17 . Figure 1.

• 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.  Decisional 1–18 .IT IT and and Managerial Managerial Roles Roles and and Skills Skills • Information Technology (IT) is increasingly used to help managers adopt a crossdepartmental view of their organization. • Roles are defined into three role categories (as identified by Mintzberg): Interpersonal  Informational © Copyright 2004 McGraw-Hill.

© Copyright 2004 McGraw-Hill. Resource allocator—assigning resources between functions and divisions. setting the budgets of lower managers. Negotiator—reaching agreements between other managers. or shareholders. unions. Disturbance handler—managing an unexpected event or crisis. 1–19 . customers.Decisional Decisional Roles 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.

© Copyright 2004 McGraw-Hill. Spokesperson—using information to positively influence the way people in and out of the organization respond to it. Disseminator—transmitting information to influence the attitudes and behavior of employees.Informational Informational Roles 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. 1–20 .

Liaison—linking and coordinating the activities of people and groups both inside and outside the organization/department. Leader—training. counseling. 1–21 . © Copyright 2004 McGraw-Hill. and mentoring high employee performance.Interpersonal Interpersonal Roles 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.

Being Being aa Manager Manager High HighVariety Variety Fragmentation Fragmentation Managerial Managerial Problems Problems Brevity Brevity Compensation to be a manager © Copyright 2004 McGraw-Hill. 1–22 .

alter. • Human Skills The ability to understand. • Technical Skills The specific knowledge and techniques required to perform an organizational role. 1–23 . © Copyright 2004 McGraw-Hill.Managerial Managerial Skills Skills • Conceptual Skills What should be the right thing? The ability to analyze and diagnose a situation and distinguish between cause and effect. lead. and control the behavior other individuals Howofcan we do better? and groups.

Skill Skill Types Types Needed Needed by by Managerial Managerial Level Level © Copyright 2004 McGraw-Hill. 1–24 .

• Utilizing IT and E-commerce. • Managing a Diverse Workforce. © Copyright 2004 McGraw-Hill.Challenges Challenges for for Management Management in in aa Global Global Environment Environment • Increasing Number of Global Organizations. • Maintaining Ethical Standards. 1–25 . • Building a Competitive Advantage.

1–26 . • Increasing Speed. and Innovation Adapting to bring new products to market faster. • Increasing Responsiveness to Customers Empowering employees to deal with customers. • Increasing Quality Introducing Total Quality Management (TQM) to improve quality. © Copyright 2004 McGraw-Hill. Flexibility.Building Building aa Competitive Competitive Advantage Advantage • Increasing Efficiency Reducing the quantity of resources used to produce goods and services.

Figure 1.Building Building Blocks Blocks of of Competitive Competitive Advantage Advantage © Copyright 2004 McGraw-Hill.5 1–27 .

Internal pressures from top management to lower-level managers to increase the organization’s competitive performance and profitability.Maintaining Maintaining Ethical Ethical Standards Standards • Factors Influencing Behaviors: External pressures from stockholders/stakeholders for increased organizational financial performance. 1–28 . © Copyright 2004 McGraw-Hill. illegally on the organization. Societal. and environment demands Hurt somebody unintendedly vs. cultural.

1–29 .Managing Managing aa Diverse Diverse Workforce Workforce • The Increasing Diversity of the Workforce • Non-Discriminatory Employment Practices • Performance-Enhancing Benefits of a Diverse Workforce The opportunities for specialization © Copyright 2004 McGraw-Hill.

Utilizing Utilizing Information Information Technology Technology (IT) (IT) and and E-commerce E-commerce • Benefits of IT and E-commerce Makes more and better information about the organization available to outsiders Empowers employees at all organizational levels Helps managers carry out their roles more effectively and efficiently Increases awareness of competitive opportunities Makes the organization more responsive to its customers © Copyright 2004 McGraw-Hill. 1–30 .

RReadings eadings on on the the historical historical management management gurus gurus • Appendix A of chapter 1 • Brief the management thoughts © Copyright 2004 McGraw-Hill. 1–31 .