American University Of Science And Technology (AUST)

Faculty of Business Administration Graduate Program (MBA)

REM 054 Management and Marketing Development Skills Fall Semester 2010-2011 Dr. Ziad F. Haddad

Chapter One
Introduction to Management and Organizations

Learning Outline
Who Are Managers?
We will explain how manager differ from nonmanagerial employees. We will discuss how to classify managers in organizations.

What Is Management?
Define management. Contrast efficiency and effectiveness.

Explain why efficiency and effectiveness are important to management.

Learning Outline (contd)

What Do Managers Do?
Describe the four functions of management.
Explain Mintzbergs managerial roles.

Discuss the changes that are impacting managers jobs.

Why Study Management?

Who Are Managers?

A Manager is:

Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.

Classifying Managers by Levels

First-line Managers:
Are at the lowest level of managers and manage the work of non-managerial employees. They supervise and coordinate the activities of operating employees.

Middle Managers:
Large group of managers in organizations who are primarily responsible for implementing the policies and plans of top managers. They manage the work of first-line managers.

Top Managers:
The relatively small group of executives who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.

Managerial Levels

Kinds of Managers by Area

Marketing Managers:
Work in areas related to getting consumers and clients to buy the organizations products or servicesnew product development, promotion, and distribution.

Financial Managers:
Deal primarily with an organizations financial resourcesaccounting, cash management, and investments.

Operations Managers:
Concerned with creating and managing the systems that create organizations products and servicesproduction control, inventory, quality control, plant layout, site selection.

Kinds of Managers by Area (contd)

Human Resource Managers:
Involved in human resource planning, recruiting and selecting employees, training and development, designing compensation and benefit systems, formulating performance appraisal systems, and discharging low-performing employees.

Administrative Managers:
Generalists who are familiar with all functional areas of management and who are not associated with any particular management specialty.

Other Kinds of Managers:

Organizations have developed specialized managerial positions (e.g., public relations managers) directly related to the needs of the organization.

Kinds of Managers by Level and Area

Levels of Management
Top managers

Middle managers

First-line managers

Areas of Management

What is an organization?
A group of people working together in a structured and coordinated fashion to achieve a set of goals.

Organizational Resources
Human resources:
Managerial talent and labor

Financial resources:
Capital investments to support ongoing and long-term operations

Physical and Technological Resources:

Raw materials; office and production facilities, and equipment

Informational Resources:
Usable data, information linkages

What is Management?
A set of interrelated activities including:
planning and decision making, organizing, leading, and controlling;

Directed at an organizations resources:

human, financial, physical, technological and informational,

with the aim of achieving organizational goals in an efficient and effective manner.

Management in Organizations

Planning and decision making Inputs from the environment Human resources Financial resources Physical and technological Information resources Goals attained Efficiently Effectively Organizing

Controlling

Leading

The Management Process

Planning and Decision Making:
Setting an organizations goals and selecting a course of action from a set of alternatives to achieve them.

Organizing:
Determining how activities and resources are to be grouped.

Leading:
The set of processes used to get members of the organization to work together to advance the interests of the organization.

Controlling:
Monitoring the organizations progress towards its goals.

The Management Process (contd)

Planning and Decision Making: Setting the organization s goals and deciding how best to achieve them Organizing: Determining how best to group activities and resources

Controlling: Monitoring and correcting ongoing activities to facilitate goal attainment

Leading: Motivating members of the organization to work in the best interests of the organization

Management Functions

Primary Purpose of Management

Using resources wisely and in a cost-effective way
And

EFFICIENCY

Making the right decisions and successfully implementing them

EFFECTIVENESS

Basic Purpose of Management

Managerial Concerns:
Efficiency Doing things right
Getting the most output for the least inputs

Effectiveness Doing the right things

Attaining organizational goals

Effectiveness and Efficiency in Management

Managerial Roles (Henri Mintzberg)

Interpersonal Roles (3 roles)
Figurehead, leader, and liaison roles: Involve dealing with other people.

Informational Roles (3 roles)

Monitor, disseminator, and spokesperson roles: Involve the processing of information.

Decisional Roles (4 roles)

Entrepreneur, disturbance handler, resource allocator, and negotiator Are managerial roles primarily related to making decisions.

Ten Basic Managerial Roles (Mintzberg)

Category Role
Leader Liaison

Sample Activities
Attending ribbon-cutting ceremony for new plant Encouraging employees to improve productivity Coordinating activities of two projects Scanning industry reports to stay abreast of developments Sending memos outlining new organizational initiatives Making a speech to discuss growth plans Developing new ideas for innovation Resolving conflict between two subordinates Reviewing and revising budget requests Reaching agreement with a key supplier or labor union

Interpersonal Figurehead

Informational Monitor
Disseminator Spokesperson

Decisional

Entrepreneur Disturbance handler Resource allocator Negotiator

Managerial Skills
Technical Skills:
Skills necessary to accomplish or understand the specific kind of work being done in an organization.

Interpersonal Skills:
The ability to communicate with, understand, and motivate both individuals and groups.

Conceptual Skills:
The managers ability to think in the abstract.

Diagnostic Skills:
The managers ability to visualize the most appropriate response to a situation.

Managerial Skills (contd)

Communication Skills:
The managers abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others.

Decision-Making Skills:
The managers ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities.

Time-Management Skills:
The managers ability to prioritize work, to work efficiently, and to delegate appropriately.

Management: Science or Art?

Science of Management:
Assumes that problems can be approached using rational, logical, objective, and systematic ways. Requires the use of technical, diagnostic, and decision-making skills and techniques to solve problems.

Art of Management:
Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights. Requires the use of conceptual, communication, interpersonal, and time-management skills to successfully accomplish the tasks associated with managerial activities.

Why Study Management?

The Value of Studying Management:
The universality of management
Good

management is needed in all organizations. either manage or are managed.

The reality of work

Employees

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.

Becoming a Manager?
Sources of Management Skills:
Sound educational base; continued life-long educational experiences Successful acquisition and utilization of basic management skills Initial job experiences; continued experiences through a variety of job assignments

How The Managers Job Is Changing?

The Increasing Importance of Customers
Customers: the reason that organizations exist
Managing

customer relationships is the responsibility of all managers and employees. Consistent high quality customer service is essential for survival.

Innovation
Doing things differently, exploring new territory, and taking risks
Managers

should encourage employees to be aware of and act on opportunities for innovation.

Universal Need for Management

NEXT: CHAPTER TWO

Management History