The Management Process Today Chapter One McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

What is Management? Management The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently

What is Management? Organizations Collections of people who work together and coordinate their actions to achieve a wide variety of goals

What is Management? Managers The people responsible for supervising the use of an organization’s resources to meet its goals Resources include people, skills, know-how, machinery, raw materials, computers and IT, and financial capital

Achieving High Performance Organizational Performance A measure of how efficiently and effectively managers use organizational resources to satisfy customers and achieve goals

Efficiency, Effectiveness, and Performance in an Organization Figure 1.1

Organizational Performance Efficiency A measure of how well or productively resources are used to achieve a goal Effectiveness A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.

Why study management? The more effective and efficient use an organization can make of resources, the greater the relative well-being of people Almost all of us encounter managers because most people have jobs and bosses Understanding management is one important path toward obtaining a satisfying career

Four Tasks of Management Figure 1.2

Planning Planning Process of identifying and selecting appropriate goals and courses of action

Organizing Organizing structuring working relationships so organizational members interact and cooperate to achieve organizational goals.

Leading Leading Articulating a clear vision and energizing and enabling organizational members so they understand the part they play in attaining organizational goals

Controlling Controlling Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance The outcome of the control process is the ability to measure performance accurately and regulate efficiency and effectiveness

Levels and Skills of Managers Department A group of people who work together and possess similar skills or use the same knowledge, tools, or techniques to perform their jobs

Levels of Management First line managers Middle managers Responsible for the daily supervision of non-managerial employees Middle managers Supervise first-line managers and are responsible for finding the best way to use resources to achieve organizational goals

Levels of Management Top managers establish organizational goals, decide how departments should interact, and monitor the performance of middle managers

Levels of Managers Figure 1.3

Relative Amount of Time That Managers Spend on the Four Managerial Tasks Figure 1.4

Levels of Managers Top-management team group composed of the CEO, COO, and the heads of the most important departments

Managerial Skills Conceptual skills Human skills Technical skills The ability to analyze and diagnose a situation and distinguish between cause and effect. Human skills The ability to understand, alter, lead, and control the behavior of other individuals and groups. Technical skills The specific knowledge and techniques required to perform an organizational role.

Technical Skills Core competency Specific set of skills, abilities, and experiences that allows one organization to outperform its competitors

Types and Levels of Managers Figure 1.5

Recent Changes in Management Practices Restructuring downsizing an organization by eliminating the jobs of large numbers of top, middle, or first-line managers and non-managerial employees

Recent Changes in Management Practices Outsourcing contracting with another company, usually in a low cost country abroad, to perform an activity the company previously performed itself Increases efficiency because it lowers operating costs, freeing up money and resources that can be used in more effective ways

Empowerment and Self-Managed Teams Expansion of employees’ knowledge, tasks, and decision-making responsibilities

Empowerment and Self-Managed Teams a group of employees with the responsibility for organizing, controlling, and supervising their own activities and for monitoring the quality of the goods and services they provide

Challenges for Management in a Global Environment Rise of Global Organizations. Building a Competitive Advantage Maintaining Ethical and Socially Responsible Standards Managing a Diverse Workforce Utilizing IT and E-Commerce Practicing Global Crisis Management

Challenges for Management in a Global Environment Global organizations organizations that operate and compete in more than one country

Building Competitive Advantage Ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than they do

Building Blocks of Competitive Advantage Figure 1.6

Building a Competitive Advantage Innovation process of creating new or improved goods and services or developing better ways to produce or provide them

Practicing Global Crisis Management Crisis management involves making important choices about how to: Create teams to facilitate rapid decision making and communication Establish the organizational chain of command Recruit and select the right people Develop bargaining and negotiating strategies to manage conflicts