part Chapter © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 1 McGraw-Hill What Is Management? 1 Chapter 1

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 2 McGraw-Hill After reading this chapter, you should be able to: 1.Define management. 2.Identify and explain the levels of management. 3.Explain the management process. 4.Explain the basic principles of management. 5.Identify the changing nature of the manager’s environment. Learning Objectives

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 3 McGraw-Hill Management is the process of deciding the best way to use an organization's resources to produce goods or services An organization’s resources includes: –Employees –Equipment –Money What Is Management?

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 4 McGraw-Hill The highest level is known as senior management Middle management is responsible for meeting the goals that senior management sets The front-line level of management is supervisory management Levels of Management

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 5 McGraw-Hill There are several ways to examine how management works –Divide the tasks that managers perform into categories –Look at the roles that different types of managers play in a company –Look at the skills that managers need to do their jobs The Management Process

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 6 McGraw-Hill Manager in all organizations engage in the following basic activities –Planning –Organizing –Staffing –Leading –Controlling Management Tasks

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 7 McGraw-Hill Management Task Examples Planning – A manager decides on goals and the actions the organization must take to meet them. Organizing – A manager groups related activities together and assigns employees to perform them. Staffing – A manager decides how many and what kind of people an organization needs to meet its goals and then recruits, selects and trains the right people.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 8 McGraw-Hill Management Task Examples. Leading – A manager provides the guidance employees need to perform their tasks. Controlling – A manager measures how the organization performs to ensure that financial goals are being met.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 9 McGraw-Hill Henry Mintzberg identified 10 key managerial roles split into three categories –Interpersonal –Informational –Decisional Managing Roles

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 10 McGraw-Hill Conceptual skills are those that help managers understand how different parts of a company relate to one another and to the company as a whole Human relation skills are those that managers need to understand and work well with people Technical skills are those specific abilities that people use to perform their jobs Management Skills

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 11 McGraw-Hill Managers are expected to set the standard for their department and to model behavior they expect from subordinates Managers cannot: –Play favorites with employees –Put their self before employees –Lose their temper with employees Managers must abide by this management agreement The Management Agreement

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 12 McGraw-Hill Information availability Attitude toward the work environment Demographics Diversity –The glass ceiling Business ethics –The Sarbanes-Oxley Act of 2002 The Changing Nature of the Manager’s Environment

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 13 McGraw-Hill Information Availability Increasing sophistication results in new data Examples are –The Internet provides information that was previously difficult to obtain –Cell phones and like technologies enhance communication –New information increases technological change Increases in information availability and technological change require managers to have increased technical skills.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 14 McGraw-Hill Attitude toward the Work Environment Prediction: More emphasis on the quality of work life Factors that determine the quality of work life include: –Working conditions –Opportunity for growth –The right for privacy Changes in these factors will have a direct impact on the manager’s job

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 15 McGraw-Hill Demographics and Diversity Latest United States demographic data shows population is becoming older and more diverse Diversity in the workforce means including people of different genders, races, religions, etc Increasing diversity in the workplace represents a major social change in the United States The problems women and minorities have had obtaining promotions compared to white men is termed the glass ceiling.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 16 McGraw-Hill Business Ethics Business ethics involves the application of standards of moral behavior to business situations A new level of examination is now legally enforced through the Sarbanes-Oxley Act of 2002 The world of a business manager can be challenging and is without doubt constantly changing