Irwin Management Book Presentations1
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ORGANIZING
ORGANIZING
is deciding how best to group organizational activities and
resources
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People,
Machinery,
Raw materials,
Information, skills,
Financial capital.
Managers are the people responsible for supervising the use of an
organization’s resources to meet its goals.
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Organizing
In organizing, managers create the structure of working
relationships between organizational members that best allows them
to work together and achieve goals.
Managers will group people into departments according to the tasks
performed.
Managers will also lay out lines of authority and responsibility
for members.
An organizational structure is the outcome of organizing. This
structure coordinates and motivates employees so that they work
together to achieve goals.
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BASIC ORGANIZING ELEMENTS THAT MANAGERS MUST ADDRESS ARE:
Designing jobs
Grouping jobs
A prominent organizational psychologist
Coordination of efforts
BENEFITS OF ORGANIZING
Synergisms – combining efforts to collectively accomplish the tasks
that would exceed simple sum of individual efforts.
Synergy is achieved through the integration of specialized
tasks.
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©The McGraw-Hill Companies, Inc., 2000
Division of work that avoids duplication, conflict ,and misuse of
resources both material and human.
Clarity of individual performance expectations and specialized
tasks.
A logical flow of work activities that can be comfortably performed
by individuals and groups.
Established channels of communication that enhance decision making
and control.
Coordinating mechanisms that ensure harmony among organization
members engaged in diversified activities.
BENEFITS OF ORGANIZING
BENEFITS OF ORGANIZING
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Organizational Performance
Measures how efficiently and effectively managers use resources to
satisfy customers and achieve goals.
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.
Effectiveness: A measure of the appropriateness of the goals chosen
(are these the right goals?), and the degree to which they are
achieved.
Organizations are more effective when managers choose the correct
goals and then achieve them.
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Managerial Roles
Described by Mintzberg.
A role is a set of specific tasks a person performs because of the
position they hold.
Roles are directed inside as well as outside the
organization.
There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional
Interpersonal Roles
Roles managers assume to coordinate and interact with employees and
provide direction to the organization.
Figurehead role: symbolizes the organization and what it is trying
to achieve.
Leader role: train, counsel, mentor and encourage high employee
performance.
Liaison role: link and coordinate people inside and outside the
organization to help achieve goals.
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Informational Roles
Associated with the tasks needed to obtain and transmit information
for management of the organization.
Monitor role: analyzes information from both the internal and
external environment.
Disseminator role: manager transmits information to influence
attitudes and behavior of employees.
Spokesperson role: use of information to positively influence the
way people in and out of the organization respond to it.
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Decisional Roles
Associated with the methods managers use to plan strategy and
utilize resources to achieve goals.
Entrepreneur role: deciding upon new projects or programs to
initiate and invest.
Disturbance handler role: assume responsibility for handling an
unexpected event or crisis.
Resource allocator role: assign resources between functions and
divisions, set budgets of lower managers.
Negotiator role: seeks to negotiate solutions between other
managers, unions, customers, or shareholders.
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HOW MANAGERS SPEND
CEOs spend
10 % in unscheduled meeting
22% at their desks
6% on the telephone
CEOs devote 75% of their time in communicating
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COMMUNICATING
Top Managers
Middle Managers
First-line Managers
Management Levels
First-line Managers: responsible for day-to-day operation. They
supervise the people performing the activities required to make the
good or service.
Middle Managers: Supervise first-line managers. They are also
responsible to find the best way to use departmental resources to
achieve goals.
Top Managers: Responsible for the performance of all departments
and have cross-departmental responsibility. They establish
organizational goals and monitor middle managers.
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FUNCTIONAL AND GENERAL MANAGERS
A horizontal division of management which is based on expertise and
specialization is called functional management.
Line managers are concerned with primary organizational activities
such as marketing and production. Departments are in-turn defined
according to functional line duties such as production control,
receiving, sales, shipping and customer service.
General managers usually oversee collective operations that include
several functional managers. These generalists are plant managers,
also top management group. They need different skills. Those who
specialize in functional areas tend to focus their energy on
technical aspects of their jobs.
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Managerial Skills
There are three skill sets that managers need to perform
effectively.
1. Conceptual skills: the ability to solve long term problems and
view the total organization as an inter active system; ability to
analyze and diagnose a situation and find the cause and
effect.
2. Human skills: the ability to understand, alter, lead, and
control people’s behavior.
3. Technical skills: the job-specific knowledge required to perform
a task. Common examples include marketing, accounting, and
manufacturing.
All three skills are enhanced through formal training, reading, and
practice.
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Skill Type Needed by Manager Level
Top
Managers
Middle
Managers
Line
Managers
Conceptual
Human
Technical
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Management Challenges
Building competitive advantage through superior efficiency,
quality, innovation, and responsiveness.
Increasing performance while remaining ethical managers.
Managing an increasingly diverse work force.
Using new technologies.
MANAGEMENT STYLES
A management style characterized by the manager making all
decisions and issuing orders for the completion of work without the
input of subordinate is called autocratic style. Strongest example
of autocratic style is a military commander on the
battlefield.
Free-rein style is characterized by the manager allowing
subordinates to make most decisions. Managers serve advisers.
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MANAGEMENT STYLES
Democratic style is characterized by the manager making decisions
that takes into account the input of subordinates. Managers as
their subordinates for suggestions prior to making decisions but
retain final decision-making power.
For example, a manager may ask a committee to interview an
applicant for a position and give their opinion. But the manager
will ultimately make the decision to hire or not to hire the
applicant
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Management Trends
Supervisors might be empowered to make some resource allocation
decisions.
Self-managed teams: give a group of employees responsibility for
supervising their own actions.
The team can monitor its members and the quality of the work
performed.
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Restructuring
Top Management have sought methods to restructure their
organizations and save costs.
Downsizing: eliminate jobs at all levels of management.
Can lead to higher efficiency.
Often results in low morale and customer complaints about
service.
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