Chapter 1 Introduction

Chapter Outline Three critical challenges What is management? What do managers do? Managerial functions Managerial roles Managerial dimensions What skills do managers need? ©2005 Prentice Hall

Managing Effectively: Three Critical Challenges GLOBALISM TECHNOLOGY Management Challenges for the 21st Century CHANGE ©2005 Prentice Hall Adapted from Exhibit 1-1: Critical Management Challenges for the 21st Century

What Is an Organization? An incorporated sets of individuals and groups who attempt to accomplish goals through differentiated functions and intended coordination. A group of people cooperating to achieve a common goal ©2005 Prentice Hall

What is Management? It is a process A series of activities and operations, such as planning, deciding, and evaluating Of assembling and using sets of resources efficiently Human, financial, material and information In a goal‑directed manner to accomplish tasks effectively A purposeful activity In an organizational setting It is undertaken in organizations By people with different functions intentionally structured and coordinated to achieve common purposes ©2005 Prentice Hall

What Managers Do Managerial activities differ by The functions managers serve The roles in which managers operate The dimensions of each manager’s job ©2005 Prentice Hall

Managerial Functions Managing Planning Controlling Organizing Directing ©2005 Prentice Hall Adapted from Exhibit 1.2: Managerial Functions

Planning Planning involves Estimating future conditions and circumstances Making decisions based on these estimations about what work is to be done By the manager By all of those for whom she or he is responsible What to do and how to do it. ©2005 Prentice Hall

Organizing Organizing involves paying attention to The structure of relationships among positions The people occupying those positions Linking that structure to the overall strategic direction of the organization ©2005 Prentice Hall

Directing (Leading) Directing is the process of influencing other people to attain organizational objectives Motivating others Interacting effectively in group and team situations Communicating in support of others’ efforts on behalf of achieving their work and organizational goals ©2005 Prentice Hall

Controlling Regulating the work of those for whom a manager is responsible which may include Setting standards of performance in advance Monitoring ongoing (real‑time) performance Assessing a completed performance Results of the control process (evaluation) are fed back into the planning process ©2005 Prentice Hall

Managerial Roles Interpersonal Roles Figurehead Informational Roles Leader Liaison Informational Roles Monitor Disseminator Spokesperson Decisional Roles Entrepreneurial Disturbance Handler Resource Allocator Negotiator ©2005 Prentice Hall Adapted from Exhibit 1.3: Types of Managerial Roles

Managerial Job Dimensions Demands Activities or duties that must be carried out Standards or levels of minimum performance that must be met. ©2005 Prentice Hall

Managerial Job Dimensions Demands Factors that limit the response of the manager Time Budgets Technology Attitudes of subordinates Legal regulations Constraints ©2005 Prentice Hall

Managerial Job Dimensions Demands Discretionary behavior How work is to be done How much work is to be done Who will do the work What initiatives will be undertaken from almost infinite possibilities Constraints Choices ©2005 Prentice Hall

Efficiency & Effectiveness TM 1-5 Efficiency & Effectiveness Efficiency= making best use of resources in achieving goals Effectiveness= choosing effective goals and achieving them People Money Machines Materials Doing things right Doing the right things ©2005 Prentice Hall Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998 6

What Skills Do Managers Need? Interpersonal skills Sensitivity Persuasiveness Empathy Technical skills Specialized knowledge (Including when and how to use the skills) Conceptual skills Logical reasoning Judgment Analytical abilities ©2005 Prentice Hall Adapted from Exhibit 1.5: Managers’ Skills

TYPES OF MANAGERS BY LEVEL TM 1-6 TYPES OF MANAGERS BY LEVEL AND RESPONSIBILITY Top Vertical Levels of Management Middle First-Line Resources Human Operations Marketing Finance Accounting Engineering ©2005 Prentice Hall Horizontal Responsibility Areas Irwin/McGraw-Hill 7

Importance of Managerial Skills at Different Organizational Levels Interpersonal skills High Technical skills Importance Conceptual skills Low Entry Level Managers Mid-Level Managers Top Level Managers ©2005 Prentice Hall Adapted from Exhibit 1.6: Relative Importance of Managerial Skills at Different Organizational Levels