Chapter 1 INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS © Prentice Hall, 2002 1-1

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 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 1-3

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 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 1-5

Organizational Levels Non-managerial Employees Top Managers Middle First-line © Prentice Hall, 2002 1-6

Discussion How are managers different from nonmanagerial employees? A manager is an organizational member who integrates and coordinates the work of others. Nonmanagerial employees do not integrate and coordinate the work of others. Explain why it isn’t always easy to determine exactly who the managers are in an organization. It’s not always easy to determine exactly who managers are because the changing nature of organizations and work has, in many organizations, blurred the clear lines of distinction between managers and nonmanagerial employees. Many traditional workers’ jobs now include managerial activities, especially on teams. 1-#

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 1-8

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 1-9

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 1-10

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). 1-#

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 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 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 1-14

EXHIBIT 1.4: MINTZBERG’S MANAGERIAL ROLES © Prentice Hall, 2002 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 1-16

EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS © Prentice Hall, 2002 1-17

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 1-18

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 1-19

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 1-20

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 1-21

EXHIBIT 1.8: POPULAR CONTINGENCY VARIABLES © Prentice Hall, 2002 1-22

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 1-23

EXHIBIT 1.10: THE CHANGING ORGANIZATION © Prentice Hall, 2002 1-24

in all types and sizes of organizations at all organizational levels 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 1-25

EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT © Prentice Hall, 2002 1-26

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 1-27

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 1-28

Review “The manager’s most basic responsibility is to focus people toward performance of work activities to achieve desired outcomes.” What’s your interpretation of this statement? Do you agree with this statement? Why or why not? The statement means that a manager’s job or responsibility is to coordinate and/or focus subordinates’ energies toward performance outcomes that will result in the achievement of organizational goals. By definition, management is the process of coordinating and integrating work activities so that they’re completed efficiently and effectively with and through other people. Therefore, yes, most managers and management scholars would agree with this statement. Coordinating others’ work activities is what distinguishes a manager’s job from a nonmanagerial one. 1-#

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 (contingency perspective), 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. 1-#