1 Chapter Managers and Management Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-1

Learning Outcomes Tell who managers are and where they work. Define management. Describe what managers do. Explain why it’s important to study management. Describe the factors that are reshaping and redefining management. Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-2

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Who Are Managers? Where Do They Work? Organization – A deliberate arrangement of people brought together to accomplish a specific purpose Common Characteristics of Organizations – Goals – People – Structure 1-4 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

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How Are Managers Different from Nonmanagerial Employees? Nonmanagerial Employees – People who work directly on a job or task and have no responsibility for overseeing the work of others – Examples: Associates and Team Members Managers – Individuals in organizations who direct the activities of others 1-6 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

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What Titles Do Managers Have? Top Managers – Make decisions about the direction of the organization – Examples: President, Chief Executive Officer, Vice- President Middle Managers – Manage the activities of other managers – Examples: District Manager, Division Manager First-line Managers – Direct nonmanagerial employees – Examples: Supervisor, Team Leader 1-8 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

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What Is Management? Management is the process of getting things done effectively and efficiently, with and through people. Effectiveness – “Doing the right things”: the tasks that help an organization reach its goals Efficiency – “Doing things right”: the efficient use of such resources as people, money, and equipment 1-10 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

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What Do Managers Do? In the functions approach proposed by French industrialist Henri Fayol, all managers perform certain activities or functions. Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-13

Four Management Functions Planning – Defining the organizational purpose and ways to achieve it Organizing – Arranging and structuring work to accomplish organizational goals Leading – Directing the work activities of others Controlling – Monitoring, comparing, and correcting work performance 1-14 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

What Are Management Roles? 1-15 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Minzberg Manager’s Role: Update Manager’s role is to influence action by: 1.Managing actions directly 2.Managing people who take action 3.Managing information that propels people to take action Manager’s dual roles include: 1.Framing 2.Scheduling Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-16

What Skills Do Managers Need? Conceptual Skills – Used to analyze and diagnose complex situations Interpersonal Skills – Used to work with, understand, and motivate individuals and groups Technical Skills – Involve job-specific knowledge and techniques required to perform tasks Political Skills – Used to build a power base and establish connections Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-17

Is the Manager’s Job Universal? Level in the Organization Profit vs. Nonprofit Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-18

Is the Manager’s Job Universal? (cont.) Size of the organization – Dictates the manager’s main roles and time spent in each role Transferability of managerial concepts – Requires modification with countries other than free-market democracies Small business managers spend much of their time in entrepreneurial activities. Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-19

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Why Study Management? We all benefit from efficiently and effectively run businesses. Well-managed organizations prosper even in challenging economic times. After graduation, most students become managers or are managed. Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-22

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What Factors Are Reshaping and Redefining Management? Today, managers must deal with: – Changing workplaces – Ethical and trust issues – Global economic uncertainties – Changing technologies Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-24 Trader Joe’s success results from outstanding customer service.

Why Are Customers Important? Without customers, most organizations would cease to exist. Employee attitudes and behaviors play a big part in customer satisfaction. Managers must create a customer-responsive environment where employees are friendly, knowledgeable, and sensitive to customer needs Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Why Is Innovation Important? “Nothing is more risky than not innovating.” Innovation isn’t only important for high technology companies; it is essential in all types of organizations. Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-26

History Module A Brief History of Management’s Roots Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-27

Early Management Management has been practiced for thousands of years. Organized projects were directed by people responsible for planning, organizing, leading, and controlling. Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-28

Classical Approaches (1911–1947) Scientific Management – Frederick W. Taylor described scientific management as a method of scientifically finding the “one best way to do a job.” Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-29

Other Classical Approaches General Administrative Theory – Focused on what constituted good management. – Henri Fayol identified five management functions and 14 management principles. – Max Weber described the bureaucracy as an ideal rational form of organization. Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-30

Fayol’s Principles  Division of work Dividing jobs into smaller parts and assigning one/two parts to one individual.  Authority and responsibility If someone is provided authority he/she must be given responsibility and vice versa.  Discipline There should be rules in the organization and the rules should be implemented  Unity of Command Everyone in the organization should receive order, instructions, command only from one boss.  Unity of Direction There should be one single plan to be followed by every department, division and individual in the organization.  Subordination of individual interests to the general interests The individuals in the organizations should be encouraged to give precedence of organizational interest over individual interest. Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-31

Fayol’s Principles  Remuneration The employees of the organization should be given fair remuneration.  Centralization There should be a right balance between centralization and decentralization.  Scalar chain There should be an unbroken line of authority from top to bottom.  Order Everything and everyone in the organization should have a place and that thing or person should be in that place.  Equity The manager should maintain equity among the subordinates in terms of benefits.  Stability of Tenure of Personnel The employees should be granted either permanent tenure or long term contract.  Initiative The manager should initiate changes and improvement in the organization.  Esprit de corps The manager should develop team spirit to his/her subordinates Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-32

Behavioral Approaches Early management writers included: – Robert Owen, who was concerned about deplorable working conditions – Hugo Munsterberg, a pioneer the field of industrial psychology – Mary Parker Follett, who recognized that organizations could be viewed from both individual and group behavior perspectives Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-33

The Hawthorne Studies Studies conducted at the Hawthorne Works of the Western Electric Company: – Provided new insights into individual and group behavior at work. – Concluded that group pressures can significantly impact individual productivity. Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-34

Quantitative Approaches Quantitative Approach – Used quantitative techniques to improve decision- making. – Evolved from mathematical and statistical solutions developed for military problems during World War II. – W. Edwards Deming and Joseph M. Duran’s ideas became the basis for total quality management (TQM) Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-35

Contemporary Approaches Focused on managers’ concerns outside the organization – Organizations are open systems that are influenced by and interact with their environments. – Fred Feildler’s contingency approach states that organizations, employees, and situations require different managerial approaches. – Dramatic changes in information technology connect nearly everyone in an organization, and managers now supervise employees remotely. Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-36

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