DEFINITION OF MANAGEMENT INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS

Definition of Management The attainment of organizational goals in an effective and efficient manner through: Planning, Organizing, Leading, and Controlling of organizational resources.

The Process of Management Planning Leading Resources Controlling Organizing Performance Human Financial Raw Materials Technological Information Attain goals Products Services Efficiency Effectiveness Use influence to motivate employees Select goals and ways to attain them Assign responsibility for task accomplishment Monitor activities and make corrections

© Copyright 2004 McGraw-Hill. All rights reserved. 1–41–4 Planning Identifying and selecting appropriate goals and courses of action for an organization. – The planning function determines how effective and efficient the organization is and determines the strategy of the organization. Three Steps in the Planning Process: – Deciding which goals to pursue. – Deciding what courses of action to adopt. – Deciding how to allocate resources.

Structuring in a way that allows organizational members to work together to achieve organizational goals. Organizational Structure – A formal system of task and reporting relationships that coordinates and motivates organizational members. – Creating organizational structure: Grouping employees into departments according to the tasks performed. Laying out lines of authority and responsibility for organizational members. © Copyright 2004 McGraw-Hill. All rights reserved. 1–5 Organizing

© Copyright 2004 McGraw-Hill. All rights reserved. 1–61–6 Articulating a clear vision to follow, and energizing and enabling organizational members so they understand the part they play in attaining organizational goals. – Leadership involves using power, influence, vision, persuasion, and communication skills. – The outcome of leadership is highly motivated and committed organizational members. Leading

© Copyright 2004 McGraw-Hill. All rights reserved. 1–71–7 Controlling Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance. – Monitoring individuals, departments, and the organization to determine if desired performance standards have been reached. – Taking action to increase performance as required. – The outcome of control is the ability to measure performance accurately and to regulate the organization for efficiency and effectiveness.

Copyright © 2005 Prentice Hall, Inc. All rights reserved. 1–8 Exhibit 1.3 Management Functions

Who Are Managers? Manager – The people responsible for supervising the use of an organization’s resources to meet its goals. – Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 1–9

Organizational Performance – A measure of how efficiently and effectively managers are using organizational resources to satisfy customers and achieve goals. Efficiency – As having achieved results without waste of time or effort – More of a process of attaining the goal. Effectiveness – As having accomplished a specified right result – More of a goal setting Effectiveness should come first and to follow by Efficiency © Copyright 2004 McGraw-Hill. All rights reserved. 1–10

Effectiveness and Efficiency in Management Copyright © 2005 Prentice Hall, Inc. All rights reserved. 1–11 Exhibit 1.2

Copyright © 2005 Prentice Hall, Inc. All rights reserved. 1–12 Exhibit 1.5 Skills Needed at Different Management Levels

Management Skills – Conceptual skills The ability to see the organization as a whole and the relationships among its parts. Involves knowing where one’s department fits into the total organization and how the organization fits into the industry, community and the broader business and social environment. The ability to think strategically-to take the broad, long-term view. – Human skills The ability to work well with other people The ability to motivate, facilitate, coordinate, lead, communicate and resolve conflicts. – Technical skills Knowledge and proficiency in a specific field Includes mastery of the methods, techniques and equipment involved in specific functions such as engineering, manufacturing or finance. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 1–13

Managerial Levels Copyright © 2005 Prentice Hall, Inc. All rights reserved. 1–14 Exhibit 1.1

Classifying Managers First-line Managers – Are at the lowest level of management and manage the work of non- managerial employees. – Directly responsible for the production of goods and services. Middle Managers – Manage the work of first-line managers. – Responsible for business units and major departments. – Example: department head, division head, manager of quality control. Top Managers – Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization. – Example: communicating a shared vision for the organization. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 1–15

© Copyright 2004 McGraw-Hill. All rights reserved. 1–16 Relative Amount of Time That Managers Spend on the Four Managerial Functions Figure 1.4

Copyright © 2005 Prentice Hall, Inc. All rights reserved. 1–17 Exhibit 1.12 Rewards and Challenges of Being A Manager

Conclusions Definition 1 – Management is often included as a factor of production along with machines, materials and money. Definition 2 – Directors and managers who have the power and responsibility to make decisions to manage an enterprise.

Questions a) Describe efficiency and effectiveness in terms of their importance and their impact on organizational performance. b)Describe the THREE (3) basic skills needed by managers. Explain how these skills are needed at different management levels.