The Management Process Today Chapter 1 The Management Process Today

What is Management? The planning, organizing, leading, & controlling of human & other resources to achieve orgl goals effectively & efficiently.

Organizations Collections of people who work together & coordinate their actions to achieve a wide variety of goals.

Managers Managers – Supervise use of an organization’s resources to meet its goals Resources - people, skills, know-how, machinery, raw materials, computers & IT, & financial capital

Organizational Performance A measure of how efficiently & effectively mgrs are using organizational resources to satisfy customers & achieve goals Efficiency Effectiveness

Figure 1.1 – pg. 6 Figure 1.1

Why study management? Well-being of people Almost all of us encounter managers Obtain a satisfying career

Four Functions of Management Figure 1.2

Planning Process of identifying & selecting appropriate goals & courses of action. Deciding which goals to pursue Deciding what courses of action to adopt Deciding how to allocate resources

Organizing Process of establishing a structure of working relationships in a way that allows orgl members to interact & cooperate to achieve orgl goals. Organizational Structure – reporting relationships

Leading Articulating a clear vision to follow, & energizing & enabling orgl members so they understand the part they play in attaining orgl goals.

Controlling Evaluating how well an org. is achieving its goals & taking action to maintain or improve performance. Outcome of control process is ability to measure performance accurately & regulate efficiency & effectiveness.

Is Management Career in Large Organization Right for You? 1-Strongly Disagree 2-Disagree 3-Undecided 4-Agree 5-Strongly Agree I dislike following somebody else’s orders. I dislike having to compete against others with whom I work. It is important for me to be liked by the people with whom I work. I prefer to act in customary ways; to blend in with the crowd. It is important for me to do things better or more efficiently than they’ve ever been done before. I like to assert myself & take charge. I enjoy giving directions to others. It doesn’t bother me to do routine tasks. Self-Assessment Exercise

Question? What is a group of people who work together and possess similar skills or use the same knowledge, tools, or techniques? A. Organization B. Department C. Team D. Presentation Group

Types of Managers First line managers - Responsible for the daily supervision of non-managerial employees. Middle managers - Supervise first-line managers. Are responsible to find the best way to use resources to achieve goals. Top managers - Responsible for performance of all depts. & have cross-departmental responsibility. Establish orgl goals, decide how different depts should interact & monitor middle mgrs.

Types of Managers Organizational Level Position Functional Title President Vice President CFO Production Manager Sales Manager HR Manager Production Supervisor Regional Sales Manger Chief Bookkeeper Top Managers Middle Managers First-Line Managers Executives Managers or Directors Supervisors

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

Discussion Question What type of manager is Rick Wagoner, Jr. of GM? What impact do his decisions have on the company? Little impact Great Impact Depends on the decision Average impact

Restructuring Involves use of IT to downsize an org. by eliminating the jobs of large numbers of top, middle, or first-line managers & non-managerial employees.

Outsourcing Contracting with another company, usually in a low cost country abroad, to perform an activity the company previously performed itself. Promotes efficiency by reducing costs & allowing an org. to make better use of its remaining resources.

Empowerment & Self-Managed Teams Empowerment - Expanding employees’ knowledge, tasks, and responsibilities by using powerful new software programs. Self-Managed Teams - Groups of employees with the responsibility for supervising their own activities & for monitoring quality of goods & services they provide.

Managerial Roles and Skills Managerial role - set of specific tasks that a person is expected to perform because of position he/she holds in org. Henry Mintzberg reduced thousands of tasks performed by mgrs. to 10 roles grouped into 3 broad categories: Decisional Roles Informational Roles Interpersonal Roles

Decisional Roles Roles associated w/ methods mgrs use in planning strategy & utilizing resources. Entrepreneur—deciding which new projects or programs to initiate & to invest resources in. Disturbance handler—managing an unexpected event or crisis. Resource allocator—assigning resources b/w functions & divisions, setting budgets of lower mgrs. Negotiator—reaching agreements b/w other mgrs, unions, customers, or shareholders.

Informational Roles Roles associated w/ tasks needed to obtain & transmit info. in process of managing the org. Monitor—analyzing info. from both internal & external environment. Disseminator—transmitting info. to influence attitudes & behavior of employees. Spokesperson—using info. to positively influence the way people in & out of org. respond to it.

Interpersonal Roles Roles that mgrs assume to provide direction & supervision to both employees & org. as a whole. Figurehead—symbolizing the org’s mission & what it is seeking to achieve. Leader—training, counseling, & mentoring high employee performance. Liaison—linking & coordinating the activities of people & groups both inside & outside the org.

Managerial Skills Conceptual skills Human skills Technical skills Ability to analyze & diagnose a situation & distinguish b/w cause & effect. Human skills Ability to understand, alter, lead, & control the behavior of other individuals & groups. Technical skills Specific knowledge & techniques required to perform an orgl role.

MANAGEMENT INSIGHT: Steve Jobs Transforms Apple Computer In 1976, Steve Jobs & Steve Wozniak invested $1350 to build a computer circuit board – Apple II PC In 1985, Apple’s sales almost $2 billion. Jobs forced out of co. In 1997, Jobs again becomes CEO of Apple.

Question? What is the specific set of abilities that allows one manager to perform at a higher level than another manager? A. Skill-sets B. SKAs C. Competencies D. Skill traits

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

Competitive Advantage Ability of one org. to outperform other orgs. b/c it produces desired goods or services more efficiently & effectively than they do. Increasing Efficiency Increasing Quality Increasing Speed, Flexibility, & Innovation Increasing Responsiveness to Customers

Building Blocks of Competitive Advantage Figure 1.5