1. Introduction to Management

2. Topics What is management? What do managers do?
What challenges do managers
at different levels face?

3. Management – The implementation of the four conditions that must be present for management to succeed: mission, authority, resources, and accountability

4. Mission – The purpose or reason for the existence of an organization.
Professional Manager – A person employed to manage someone else’s business.

5. Chief Executive Officer (CEO) – The top administrator or manager of an organization; usually reports directly to the board of directors.

6. Major Management Theories
Scientific Management – The application of a systematic or scientific approach to the study of organizations.
Bureaucracy Management – The process of examining the organizational aspects of companies and their work flow to explain how institutions function and how to improve their performance.

7. Organizational Behavior Management – A management approach that looks at the performance and interaction of people within organizations.
Systems Analysis Management – The analytical view of an organization as a complete, self-contained unit that interacts within itself and with its environment in a continuous process of interchange and renewal.

8. The Management Process:
Planning – The thought and analysis process that results in a formal strategy for realizing the goals of the organization.
Organizing – The process of assembling the necessary resources and people for implementing a plan of action.

9. The Management Process:
Directing – Leading in achieving the day-to-day tasks necessary to implement the management plan and ensure a smooth-running facility.
Controlling – The process of monitoring the standards, measurements, and feedback mechanisms that were set in place to ensure implementation of the management plan.

10. Getting work done through others
Management is…
Effectiveness
Efficiency
Getting work done through others
Management is getting work done through others.
Managers have to be concerned with efficiency and effectiveness in the workplace. Efficiency is getting work done with a minimum of effort, expense, or waste. Effectiveness is accomplishing tasks that help full organizational objectives, such as customer service and satisfaction. 1 10

11. Classical Management Functions Updated Management Functions
Planning
Controlling
Organizing
Leading
Making Things Happen
Meeting the Competition
Organizing People, Projects, and Processes
Classical Management Functions
Updated Management Functions
Classical functions of management are planning, controlling, organizing, and leading.
Planning is determining organizational goals and a means for achieving them. Controlling is monitoring progress toward goal achievement and taking corrective action when progress isn’t being made. Organizing is deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company. Leading is inspiring and motivating workers to work hard to achieve organizational goals.
Old-style managers think of themselves as the “manager” or the “boss.” New-style managers think of themselves as sponsors, team leaders, or internal consultants. Old-style managers follow the chain of command (reporting to the boss, who reports to the next boss at a higher managerial level, etc.), while new-style managers work with anyone who can help them accomplish their goals. Old-style managers make decisions by themselves. New-style managers ask others to participate in decisions. Old-style managers keep proprietary company information confidential. New-style managers share that information with others. Old-style managers demand long hours. New-style managers demand results.
Note that these new functions do not replace the classical functions of management; they build on them.
The textbook is organized around the four updated management functions, as shown on this slide, which have evolved out of the classical functions. 2 11

12. Levels of Management CEO COO General Mgr Plant Mgr Regional Mgr
Office Manager
Shift Supervisor
Department Manager
Team Leader
Top Level Management
Middle Level Management
The jobs and responsibilities of the four kinds of managers are shown in Exhibit 1.2.
First-Line
Management 3 12

13. Goal – A broad, long-term ambition of the organization.
Objective – A measurable standard or task, set in a designated time frame.

14. Management by Objectives (MBO) – A program for managing an organization by setting and monitoring performance objectives.

15. Generally, five conditions must be present for management to succeed:
A mission, or goal, that organization or subunit expects to accomplish
Leaders with the authority to direct the team toward the goal.
Necessary resources (people, equipment, supplies, and money)

16. Responsibility for achieving the goals assigned
Accountability for using the resources established

17. With these five ingredients present, management can be defined as the process of coordinating and implementing these five functions.

18. Roles of a Manager: People, Servant, Representative

19. The Manager as a Person: Talent and Knowledge
Some people may appear to be “natural leaders” with inborn people skills. However, without an understanding of the management process, they soon fail when put in situations demanding extensive planning or technical knowledge

20. There may also be “born organizers” who thrive in situations that require exacting attention to detail. They too may quickly run into trouble when required to interact with or direct a group of people

21. The Manager as a Servant
Seeing that the person who actually performs the tasks and work of the institution has the resources necessary to effectively and efficiently accomplish his or her duties is the responsibility of everyone from the CEO to the immediate supervisor.

22. The Manager as a Representative:
The manager is a paid representative of the owners or board of directors in both for-profit and not-for-profit organizations.
Managers must also represent those they supervise, as they are responsible for supplying their needs and presenting their concerns to the owners.

23. Some experts have argued that this representation function is the most important role of a manager in the successful operation of any business.

24. Management skills can be divided into four groups, each of which is a focus of a separate part of this course:

25. Organizational skills – include the ability to conceptualize and apply the management process, systematize work flow, make decisions, and communicate with coworkers.
People skills – an understanding of the basic theories of human needs and work motivation is essential to accomplishing the goals of the individual and the organization.

26. Financial Management skills – these skills involve the effective use of and accounting for the monetary assets of the company
Technical skills – involve the synthesis of the first three skills and the management of physical resources (supplies, equipment, facilities) into the operational parameters (product/services) unique to each organization.

27. Major Management Theories:

28. Scientific Management – represents the first orderly efforts to examine the functioning of complex organizations. The idea was to apply the scientific method of cause-and-effect analysis, used in the study of natural phenomena, to the examination of business enterprises.

29. Henri Fayol ( ) first introduced the concept that management should be an orderly process of tasks and duties, of which planning was the most important.

30. Fayol’s thesis provides the base for the theory called the functions of management, or management process

31. Frederick Taylor ( ) – often called the father of scientific management, broke down each task into segments that could be analyzed for ways to improve efficiency

32. Other important scientific management innovators include Mary Parker Follet ( ), who pointed out that management is essentially coordination, and LyndallUrwick ( ), who introduced the role of the management consultant and attempted to classify and codify the work done on management theories.

33. Bureaucracy: The Study of Organizational Structure

34. Bureaucracy Management – examines the organizational aspects and work flow of companies to explain how institutions function and how to improve the process.
particular attention is given to the bureaucratic characteristics of organizations as they relate to rules, regulations, impersonality, and the division of labor

35. Bureaucracy is often spoken of negatively, for example, “bureaucrat” or “red tape”

36. In spite of this view, however, most academic and business consultants recommend focusing on the structure of the institutions and propose that implementing modifications in this area will improve management performance

37. For example, too many management layers may hinder communications and cause huge amounts of red tape, but too few layers may result in loss of control, thereby hindering management effectiveness

38. Organizational Behavior Management
This approach uses concepts from psychology and sociology as well as management theories.
The origins of these efforts lie in the studies conducted by Elton Mayo ( ) between 1924 and 1932 at the Hawthorne Western Electric plant in Chicago.

39. Organizational Behavior Management
Mayo’s lead was followed by Douglas McGregor ( ), who developed assumptions about the basic nature of man
RensisLikert ( ), whose writings encouraged managers to be supportive in their relationships; and Barnard, who recommended that executives encourage a climate of cooperation.

40. Systems Analysis Management
Analyzing businesses as a system was a natural evolution of scientific management.
The systems approach has been claimed by researchers who rely heavily on mathematical models, scientific methodology, and computer simulations to investigate management problems and recommend solutions.

41. Systems Analysis Management
These specialties include operations research, management science, and systems (computer) analysis.

42. Peter Drucker’s five basic management operations are setting objectives; organizing; motivating and communicating; establishing standards or measurements of performance; and developing people, including the managers themselves.

43. Most management texts, however, distill the management process into four main functions: planning, organizing, directing and controlling.

44. Planning – Identify Goals, Evaluate Current Situation, Establish Time Frame, Set Objectives, Forecast Resource Needs, Implement Plan, Obtain Feedback
Organizing – Formal Hierarchy, Informal Relationships

45. Directing – Leadership, Time Allocation
Controlling – Instructions, Follow-up, Modifications

46. Planning –During the planning phase, managers attempt to anticipate the future and either shape it to their own ends or prepare for the coming changes.

47. Planning - It is the thinking and analyzing portion of the management process; the other three phases (organizing, directing, and controlling) focus on implementation of the plan developed in this initial stage.

48. Top Managers Responsible for… Creating a context for change
Developing attitudes of commitment and ownership in employees
Creating a positive organizational culture through language and action
Monitoring their business environments
Top managers hold positions like chief executive officer (CEO) or chief operating officer (COO) and are responsible for the overall direction of the organization.
3.1 48

49. Middle Managers Responsible for…
Setting objectives consistent with top management goals, planning strategies
Coordinating and linking groups, departments, and divisions
Monitoring and managing the performance of subunits and managers who report to them
Implementing the changes or strategies generated by top managers
Middle managers hold positions like plant manager, regional manager, or divisional manager.
Note how middle managers’ responsibilities are influenced by those of top managers.
Note also how their responsibilities are more narrowly focused than of top managers.
3.2 49

50. First-Line Managers Responsible for…
Managing the performance of entry-level employees
Teaching entry-level employees how to do their jobs
Making schedules and operating plans based on middle management’s intermediate-range plans
First-line managers hold positions like office manager, shift supervisor, or department manager.
First-line managers are the only managers who don’t supervise other managers.
They are closest to employees and have daily contact with employees.
3.3 50

51. Team Leaders Responsible for… Facilitating team performance
Managing external relationships
Facilitating internal team relationships
This is a relatively new kind of management job that developed as companies shifted to self-managing teams, which, by definition, have no formal supervisor.
Instead of directing individuals’ work, team leaders facilitate team activities toward goal accomplishment. They have less formal authority, so they lead more through relationships and respect.
3.4 51

52. Managerial Roles Figurehead Leader Liaison Monitor Disseminator
Spokesperson
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
Interpersonal
Informational
Decisional
Interpersonal Roles–interacting with others
figurehead role: managers perform ceremonial duties
leader role: managers motivate and encourage workers to accomplish organizational objectives
liaison role: managers deal with people outside their units
Informational Roles–obtaining and sharing information
monitor role: managers scan their environment for information, actively contact others for information
disseminator role: managers share the information they have collected with their subordinates and others in the company
Decisional Roles–making good decisions
entrepreneur role: managers adapt themselves, their subordinates, and their units to incremental change
disturbance handler role: managers respond to pressures and problems so severe that they demand immediate attention and action
resource allocator role: managers decide who will get what resources and how many resources they get
negotiator role: managers negotiate schedules, projects, goals, outcomes, resources, and employee raises 4
Adapted from Exhibit 1.3
H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973) 52

53. What Challenges Do Managers Face?
Developing the appropriate skills
for managerial work
Avoiding “typical” managerial mistakes
Making the transition from individual contributor to manager

54. What Companies Look for in Managers
Technical Skills
Human Skill
Conceptual Skill
Motivation to Manage
Technical skills are most important for lower level managers, because these managers supervise the workers who produce products or serve customers. Team leaders and first-line managers need technical knowledge and skills to train new employees and help employees solve problems. Technical skills become less important as managers rise through the managerial ranks, but they are still important.
Human skills are equally important at all levels of management, from first-line supervisors to CEOs. However, because lower level managers spend much of their time solving technical problems, upper level managers may actually spend more time dealing directly with people.
Conceptual skill is the ability to see the organization as a whole, how the different parts of the company affect each other, and how the company fits into or is affected by its external environment. Conceptual skill increases in importance as managers rise through the management hierarchy.
Managers typically have a stronger motivation to manage than their subordinates, and managers at higher levels usually have stronger motivation to manage than managers at lower levels.
Furthermore, managers with stronger motivation to manage are promoted faster, are rated by their employees as better managers, and earn more money than managers with a weak motivation to manage. 5 54

55. Theory X and Y
Managerial beliefs or philosophies with regard to how to manage others
Includes assumptions about human behavior as well as what makes a business successful
Our beliefs have consequences on how we manage others and the expectations they have of us

56. Theory X
Management's only responsibility is to improve the company's "bottom line."
The employees of an organization are tools to be used to meet this goal.
People are basically unwilling to work in the best interests of the company, cannot handle responsibility, and must be tightly controlled, prodded, and punished to get their work done.

57. Theory Y
Management should create conditions that enable and encourage employees to attain their own goals by working toward the goals of the organization.
Employees are inherently ready to accept responsibility, do a good job, and work in the best interests of the company.
It is management's responsibility to create the conditions that will allow employees to develop their fullest potential.

58. Mistakes Managers Make
1. Insensitive to others
2. Cold, aloof, arrogant
3. Betrayal of trust
4. Overly ambitious
5. Specific performance problems with the business
6. Overmanaging: unable to delegate or build a team
7. Unable to staff effectively
8. Unable to think strategically
9. Unable to adapt to boss with different style
10. Overdependent on advocate or mentor
Exhibit 1.5 lists the top 10 mistakes managers make.
These mistakes make the difference between “arrivers” and “derailers.” Both groups were very similar and had enjoyed past success. The biggest difference between the two were how they managed people. Arrivers were much more effective in their interpersonal skills than were derailers.
Use this fact to reinforce the importance of being able to manage people rather than just processes, when it comes to management effectiveness. 6
Adapted from Exhibit 1.5 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983 58

59. The First Year Management Transition
Exercise formal authority
Manage tasks, not people
Help employees do their jobs
Hire and fire
Cannot be “bossy”
Manage people, not tasks
Coach employee performance
Fast pace, heavy workload
Initial Assumptions
Reality 7