Developed by Prof. Dr. Majed El-Farra Chapter 1 INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-1

Developed by Prof. Dr. Majed El-Farra Learning Objectives You should learn to: Explain what a manager is and how the role of a manager has changed Define management Distinguish between efficiency and effectiveness Describe the basic management functions and the management process Identify the roles performed by managers © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-2

Learning Objectives (cont.) You should learn to: Describe the skills managers need Explain what managers do using the systems perspective Identify what managers do using the contingency perspective Describe what an organization is and how the concept of an organization has changed Explain the value of studying management © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-3

Developed by Prof. Dr. Majed El-Farra 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 the clear lines of distinction between managers and non-managerial employees © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-4

Who Are Managers? (cont.) Managerial Titles First-line managers - manage the work of non-managerial individuals who are directly involved with the production or creation of the organization’s 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 organization-wide decisions and establishing the plans and goals that affect the entire organization © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-5

Developed by Prof. Dr. Majed El-Farra Organizational Levels Non-managerial Employees Top Managers Middle First-line © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-6

Developed by Prof. Dr. Majed El-Farra What Is Management? Management the process of coordinating work activities so that they are completed efficiently and effectively with and through other people elements of definition Process - represents ongoing functions or primary activities engaged in by managers Coordinating - distinguishes a managerial position from a non-managerial one. It helps to avoid conflict and duplication. © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-7

What is 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 © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-8

Efficiency and Effectiveness in Management Resource Usage Efficiency (Means) Goal Attainment Effectiveness (Ends) Low Waste High Attainment Management Strives For: Low resource waste (high efficiency) High goal attainment (high effectiveness) © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-9

Developed by Prof. Dr. Majed El-Farra Research Write a research between 5-10 pages about: Controlling and evaluation. Try to visit an organization to investigate the aspects of controlling system they have. Developed by Prof. Dr. Majed El-Farra

Management Functions and Processes .Henri Fayol, a French industrialist from the early part of the 1900s, proposed that managers perform five management functions: POCCC (plan, organize, command, coordinate, control). Developed by Prof. Dr. Majed El-Farra

Developed by Prof. Dr. Majed El-Farra What Do Managers Do? Management Functions and Process most useful conceptualization of the manager’s job Planning - defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities. Organizing - determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are made. Leading - directing and motivating all involved parties and dealing with employee behavior issues Controlling - monitoring activities to ensure that they are going as planned © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-12

What Do Managers Do? (cont.) Management Functions and Process (cont.) Management process set of ongoing decisions and work activities in which managers engage as they plan, organize, lead, and control managerial activities are usually done in a continuous manner © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-13

What Do Managers Do? (cont.) Management Roles specific categories of managerial behavior Interpersonal - involve people and duties that are ceremonial and symbolic in nature Informational - receiving, collecting, and disseminating information Decisional - revolve around making choices emphasis that managers give to the various roles seems to change with their organizational level © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-14

EXHIBIT 1.4: MINTZBERG’S MANAGERIAL ROLES © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-15

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 © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-16

EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-17

Exercise in Emotional Intelligence Managers with good human skills are able to get the best out of their people. They know how to communicate, motivate, lead and inspire enthusiasm and trust. Self-Assessment “What’s your Emotional Intelligence Score?” 1-#

Exercise in Emotional Intelligence continue.. What did you find out about yourself in doing this exercise? Did anything surprise you about your assessment? How can you use this information in helping you to plan your career? Do you think this information will help you as a manager? How? 1-#

What Do Managers Do? (cont.) Managing Systems System - a set of interrelated and interdependent parts arranged in a manner that produces a unified whole provides a more general and broader picture of what managers do than the other perspectives provide Closed system - not influenced by and do not interact with their environment Open system - dramatically interact with their environment organizations - take in inputs from their environments transform or process inputs into outputs outputs are distributed into the environment © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-20

The Organization As An Open System Environment System Transformation Employee’s work activities Management Technology and operations methods Outputs Inputs Raw materials Human resources Capital Technology Information Products and services Financial results Human results Feedback © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-21

What Do Managers Do? (cont.) Managing Systems (cont.) managers must coordinate various work activities ensure that interdependent parts work together recognize and understand the impact of various external factors decisions and actions taken in one organizational area will affect other areas and vice versa © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-22

What Do Managers Do? (cont.) Managing in Different and Changing Situations. Require managers to use different approaches and techniques Contingency perspective - different ways of managing are required in different organizations and different circumstances The contingency perspective, sometimes called the situational approach, is a view that the organization recognizes and responds to situational variables as they arise. stresses that there are no simplistic or universal rules contingency variable © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-23

EXHIBIT 1.8: POPULAR CONTINGENCY VARIABLES © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-24

What Is An Organization? a deliberate arrangement of people to accomplish some specific purpose elements of definition each organization has a distinct purpose each organization is composed of people all organizations develop some deliberate structure today’s organizations have adopted: flexible work arrangements open communications greater responsiveness to changes © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-25

EXHIBIT 1.10: THE CHANGING ORGANIZATION © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-26

Developed by Prof. Dr. Majed El-Farra Why Study Management? Universality of Management management is needed in all types and sizes of organizations at all organizational levels in all work areas management functions must be performed in all organizations consequently, have vested interest in improving management © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-27

EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-28

Why Study Management? (cont.) The Reality of Work most people have some managerial responsibilities most people work for a manager Challenges of Being a Manager being a manager is hard work - must deal with a variety of personalities - must motivate workers in the face of uncertainty © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-29

Why Study Management? (cont.) Rewards and challenges of Being a Manager Challenges a. Managers may find it difficult to effectively blend the knowledge, skills, ambitions, and experiences of a diverse group of employees. b. A manager’s success typically is dependent on others’ work performance. Rewards a. Managers get to create a work environment in which organizational members can do their work to the best of their ability and help the organization achieve its goals. b. Receiving recognition and status in the organization and the community, playing a role in influencing organizational outcomes, and receiving appropriate compensation. c. Satisfaction from knowing that efforts, skills, and abilities are needed by the organization. © Prentice Hall, 2002 Developed by Prof. Dr. Majed El-Farra 1-30

WORKING TOGETHER—Team-Based Exercise  This exercise asks students, in small groups, to develop a list of characteristics that make individuals good managers. Then for each characteristic, the students are to identify which management function it falls under. Developed by Prof. Dr. Majed El-Farra

Developed by Prof. Dr. Majed El-Farra Review Can you think of situations where management doesn’t matter to organizations? Explain. No. The principle of the universality of management—the certainty that management is needed in all types and sizes of organizations, at all organizational levels, and in all organizational work areas, regardless of where they’re located—applies here. Developed by Prof. Dr. Majed El-Farra

Developed by Prof. Dr. Majed El-Farra Review In today’s environment, which is more important to organizations— Efficiency or effectiveness? Explain your choice. Both are integral to effective management. Management refers to the process of coordinating and integrating work activities so that they’re completed efficiently and effectively with and through other people. Efficiency is getting the most output from the least amount of inputs, the goal of which is to minimize resource costs. (See Exhibit 1.2.). Effectiveness is completing activities so that organizational goals are attained; often described as “doing the right things.” (See Exhibit 1.2.) Developed by Prof. Dr. Majed El-Farra

Developed by Prof. Dr. Majed El-Farra Review Is there one best “style” of management? Why or why not? No, there’s probably not one single “best” style of management. Organizational situations vary and what works best in one organization may not necessarily work best in another. Point out to students that they’re going to see a variety of managerial “styles” illustrated throughout the textbook in different boxes, examples, and cases. Each individual tends to develop his or her own preferred “style” of managing. Developed by Prof. Dr. Majed El-Farra

Developed by Prof. Dr. Majed El-Farra Review Why do you think skills of job candidates have become so important to employers? What are the implications for (a) managers, in general, and (b) you, personally? Employees need to be willing to constantly upgrade their skills and take on extra work outside their own specific job area. The implication for managers of the increasing importance of employee skills is that the job of integrating and coordinating the work of others becomes more challenging. However, it also means that the people a manager manages may have more skills and can be more involved in designing ways to do their jobs effectively and efficiently. Developed by Prof. Dr. Majed El-Farra