The

Management
Process Today

Chapter One

McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
 What is Management?

• Management
– The planning, organizing, leading, and
controlling of human and other resources to
achieve organizational goals effectively and
efficiently

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 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

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 Organizational Performance
• Efficiency • Effectiveness
– A measure of how well – A measure of the
or productively appropriateness of the
resources are used to goals an organization is
achieve a goal pursuing and the degree
to which they are
achieved.

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 Four Tasks of Management

Figure 1.2
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 Steps in the Planning Process

1. Deciding which goals to pursue

2. Deciding what strategies to adopt to attain
those goals
3. Deciding how to allocate organizational
resources

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 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

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 Levels of Management

• First line managers

– Responsible for the daily supervision of non-
managerial employees
• Middle managers
– Supervise first-line managers and are responsible
for finding the best way to use resources to
achieve organizational goals

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 Levels of Management

• Top managers
– establish organizational goals, decide how
departments should interact, and monitor the
performance of middle managers

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 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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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

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 Recent Changes in Management Practices

• Outsourcing
– contracting with another company, usually in a
low cost country abroad, to perform an activity
the company previously performed itself

• Increases efficiency because it lowers operating

costs, freeing up money and resources that can be
used in more effective ways

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 Empowerment and Self-Managed
Teams
• Empowerment
– Expansion of employees’
knowledge, tasks, and
decision-making
responsibilities

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 Empowerment and Self-Managed Teams

• Self-managed team
– a group of employees with the responsibility for
organizing, controlling, and supervising their own
activities and for monitoring the quality of the
goods and services they provide

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 Building Blocks of Competitive
Advantage

Figure 1.6
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