Mgt Intro Chpt01 Read

8/6/2019 Mgt Intro Chpt01 Read

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Contemporary

Management


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Managersand Managing

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Management Key Concepts

Organizations: People working togetherand coordinating their actions to achievespecific goals.

Goal: A desired future condition that theorganization seeks to achieve.

Management: The process of using

organizational resources to achieve theorganizations goals by...o Planning, Organizing, Leading,andControlling

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Additional Key Concepts

Resources are organizational assetsand include:

People,Machinery,Raw materials,Information, skills,

Financial capital. Managers are the people responsible forsupervising the use of an organizationsresources to meet its goals.

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Achieving High Performance

Organizations must provide a good orservice desired by its customers.oDavid Johnson of Campbell Soup

manages his firm to provide quality foodproducts.

oPhysicians, nurses and health care

administrators seek to provide healingfrom sickness.

oMcDonalds restaurants provide burgers,fries and shakes that people want to buy.

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Organizational Performance

Measures how efficiently and effectivelymanagers use resources to satisfycustomers and achieve goals.o Efficiency: A measure of how well resources

are used to achieve a goal.Usually, managers must try to minimize the

input of resources to attain the same goal.

oEffectiveness: A measure of theappropriateness of the goals chosen (arethese the right goals?), and the degree towhich they are achieved.Organizations are more effective when

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Managerial Functions

Henri Fayol was the first to describe thefour managerial functions when he wasthe CEO of a large mining company in thelater 1800s.

Fayol noted managers at all levels,operating in a for profit or not for profit

organization, must perform each of thefunctions of:Planning,organizing,

leading,

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FourFunctions of

ManagementFigure 1.2Planning

Choose

Goals

OrganizingWorking

together

LeadingCoordinate

ControllingMonitor &measure

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Planning

Planningisthe process usedby managerstoidentifyandselectappropriate goalsandcourses ofactionforan organization.

3 steps to good planning :1. Which goals should be pursued?2. How should the goal be attained?3. How should resources be allocated?

The planning function determines howeffective and efficient the organization is anddetermines the strategy of the organization.

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Organizing In organizing, managers create the structure of

working relationships between organizationalmembers that best allows them to worktogether and achieve goals.

Managers will group people into departmentsaccording to the tasks performed.o Managers will also lay out lines of authority and

responsibility for members.

An organizationalstructure is the outcome oforganizing. This structure coordinates andmotivates employees so that they worktogether to achieve goals.

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Leading In leading, managers determine direction,

state a clear vision for employees tofollow, and help employees understand

the role they play in attaining goals. Leadership involves a manager using

power, influence, vision, persuasion, andcommunication skills.

The outcome of the leading function is ahigh level of motivation and commitmentfrom employees to the organization.

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Controlling

In controlling, managers evaluate how well theorganization is achieving its goals and takescorrective action to improve performance.

Managers will monitor individuals,departments, and the organization todetermine if desired performance has beenreached.

o Managers will also take action to increaseperformance as required.

The outcome of the controlling function is theaccurate measurement of performance and

regulation of efficiency and effectiveness.

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Management Levels Organizations often have 3 levels of

managers:First-line Managers: responsible for day-to-

day operation. They supervise the peopleperforming the activities required to make thegood or service.Middle Managers: Supervise first-line

managers. They are also responsible to findthe best way to use departmental resources toachieve goals.Top Managers: Responsible for the

performance ofalldepartments and have-

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TopManagers

Middle Managers

First-line Managers

Non-management

Three Levels of Management

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Restructuring

Top Management have soughtmethods to restructure their

organizations and save costs. Downsizing: eliminate jobs at all

levels of management.oCan lead to higher efficiency.oOften results in low morale and

customer complaints about service.

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Management Trends

Empowerment: expand the tasks andresponsibilities of workers.

o Supervisors might be empowered to makesome resource allocation decisions.

Self-managed teams: give a group ofemployees responsibility for

supervising their own actions.o The team can monitor its members and the

quality of the work performed.

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Managerial Roles

Described by Mintzberg.o A role is a set of specific tasks a person

performs because of the position they hold.

Roles are directed inside as well asoutside the organization.

There are 3 broad role categories:1. Interpersonal

2. Informational3. Decisional

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Interpersonal Roles

Roles managers assume to coordinateand interact with employees and provide

direction to the organization.o Figurehead role: symbolizes the organizationand what it is trying to achieve.

o Leader role: train, counsel, mentor and

encourage high employee performance.o Liaison role: link and coordinate people inside

and outside the organization to help achievegoals.

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Informational Roles

Associated with the tasks needed toobtain and transmit information formanagement of the organization.oMonitor role: analyzes information from boththe internal and external environment.

oDisseminator role: manager transmitsinformation to influence attitudes and

behavior of employees.o Spokesperson role: use of information to

positively influence the way people in and outof the organization respond to it.

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Decisional Roles Associated with the methods managers

use to plan strategy and utilizeresources to achieve goals.o E

ntrepreneur role: deciding upon new projectsor programs to initiate and invest.o Disturbance handler role: assume responsibility

for handling an unexpected event or crisis.o Resource allocator role: assign resources

between functions and divisions, set budgets oflower managers.

o Negotiator role: seeks to negotiate solutionsbetween other managers, unions, customers, or

shareholders.

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Managerial SkillsThere are three skill sets that managersneed to perform effectively.

1. Conceptual skills: the ability to analyze and

diagnose a situation and find the cause and effect.2. Human skills: the ability to understand, alter,lead, and control peoples behavior.3. Technical skills: the job-specific knowledgerequired to perform a task. Common examples

include marketing, accounting, and manufacturing.

All three skills are enhanced throughformal training, reading, and practice.

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Skill Type Needed by ManagerL

evelTop

Manager

sMiddle

Managers

LineManager

s

Conceptual

Human Technical

Figure 1.5

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Management Challenges

Increasing number of globalorganizations.

Building competitive advantage through

superior efficiency, quality, innovation,and responsiveness.

Increasing performance while remaining

ethical managers. Managing an increasingly diverse workforce.

Using new technologies.

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Mgt Intro Chpt01 Read

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