Chapter

1
Introduction to Management and Organizations

Learning Objectives
You should learn to: Explain what a manager is Define management Distinguish between efficiency and effectiveness Describe the basic management functions Identify the roles performed by managers Skills of manager Concept of organization Why study management?

Important Concepts

Management The Organization

A Manager

Who Are Managers?

Manager
Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished.

Who Are Managers? Manager

someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals changing nature of organizations and work has blurred (hazy) the clear lines of distinction between managers and nonmanagerial employees

Who Are Managers? (cont.)

Managerial Titles
First-line managers - manage the work of nonmanagerial individuals who are directly involved with the production or creation of the organizations products Middle managers - all managers between the first-line level and the top level of the organization manage the first-line managers Top managers - responsible for making organizationwide decisions and establishing the plans and goals that affect the entire organization

Organizational Levels

Top Managers Middle Managers First-line Managers Non-managerial Employees

Types of Managers
Organizational Level
Top Managers

Position
Executives

Functional Title
CEO
President Vice President

Middle Managers

Managers or Directors

Production Manager Sales Manager HR Manager

First-Line Managers

Supervisors

Production Supervisor

Regional Sales Manger

Chief Bookkeeper

Management: The Classic Definition

The art of getting things done through people.

Mary Parker Follet

Management: A Broader Definition

The process of administering and coordinating resources effectively, efficiently, and in an effort to achieve the goals of the organization.

What Is Management?
Managerial Concerns
Efficiency Doing things right Getting the most output for the least inputs Effectiveness Doing the right things Attaining organizational goals

What is Management? (cont.)

Management (cont.) elements of definition Efficiency - getting the most output from the least amount of inputs doing things right concerned with means Effectiveness - completing activities so that organizational goals are attained doing the right things concerned with ends
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Effectiveness and Efficiency in Management

Effectiveness vs. Efficiency

Effectiveness Effectiveness is achieved when the organization pursues appropriate goals. This means doing the right thing. Efficiency Efficiency is achieved by using the fewest inputs (e.g., people and money) to generate a given output. This means doing things right. The end result of effective and efficient management is organizational success.

What Do Managers Do?

Functional Approach
Planning Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities. Organizing Arranging and structuring work to accomplish organizational goals. Leading Working with and through people to accomplish goals. Controlling Monitoring, comparing, and correcting work.

Management Functions

What Do Managers Do? (contd)

Management Roles Approach (Mintzberg)
Interpersonal roles Figurehead, leader, liaison Informational roles Monitor, disseminator, spokesperson Decisional roles Disturbance handler, resource allocator, negotiator

What Managers Actually Do (Mintzberg)

Interaction with others with the organization with the external context of the organization Reflection thoughtful thinking Action practical doing

MINTZBERGS MANAGERIAL ROLES

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What Do Managers Do? (cont.)

Management Skills

Technical - knowledge of and proficiency in a certain specialized field Human - ability to work well with other people both individually and in a group Conceptual - ability to think and to conceptualize about abstract and complex situations see the organization as a whole understand the relationships among subunits visualize how the organization fits into its broader environment

Skills Needed at Different Levels of Management

First-line Management Middle Management Top-Level Management

Conceptual

Conceptual

Conceptual

Human
Human Human

Technical
Technical Technical

Skills Needed at Different Management Levels

Management Skills and Management Function Matrix

What is an Organization?

An organization is a group of individuals who work together toward common goals.

What Is An Organization?
An Organization Defined
A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone).

Common Characteristics of Organizations

Have a distinct purpose (goal) Composed of people Have a deliberate structure

Characteristics of Organizations

The Changing Organization

Why Study Management?

The universality of management Good management is needed in all organizations.

The reality of work

Employees either manage or are managed. Rewards and challenges of being a manager Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work. Successful managers receive significant monetary rewards for their efforts.

Universal Need for Management

Rewards and Challenges of Being A Manager

Terms to Know
manager first-line managers middle managers top managers management efficiency effectiveness planning organizing leading controlling management roles interpersonal roles informational roles decisional roles technical skills human skills conceptual skills organization universality of management

Question & Answer