Introduction to Management and Organizations

Introduction to Management and Organizations
Chapter 1 Introduction to Management and Organizations Copyright © 2016 Pearson Canada Inc.

Copyright © 2016 Pearson Canada Inc.
Learning Outcomes: Explain why managers are important to an organization. Tell who managers are and where they work. Describe the characteristics of an organization. Copyright © 2016 Pearson Canada Inc.

Why Are Managers Important?
Managers are important because: organizations need their managerial skills and abilities more than ever in uncertain, complex, and chaotic times. of the relationship between employees and their direct supervisors (managers) able to function in traditional and nontraditional environments in the twenty-first century Learning Outcome 1: Understand what makes someone a manager. A manager is someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals. Copyright © 2016 Pearson Canada Inc.

Who Is a Manager? Managers: Coordinate work activities to achieve organizational goals. Actions are affected by both the internal culture of the organization and the constraints of the external environment – including the global environment. Learning Outcome 1: Understand what makes someone a manager. A manager is someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals. Copyright © 2016 Pearson Canada Inc.

Who Is a Manager? Managers: Deal with complicated ethical and social responsibility issues as they plan, organize, lead and control. Learning Outcome 1: Understand what makes someone a manager. Copyright © 2016 Pearson Canada Inc.

Who Is a Manager? A manager is: Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals. Learning Outcome 1: Understand what makes someone a manager. A. The changing nature of organizations and work has blurred the clear lines of distinction between managers and non-managerial employees. Many workers’ jobs now include managerial activities. Definitions used in the past no longer work. B. How do we define a manager? A manager is an organizational member who works with and through other people by coordinating their work activities in order to accomplish organizational goals. However, keep in mind that managers may have other work duties not related to integrating the work of others. Copyright © 2016 Pearson Canada Inc.

Types of Managers First-line Managers: Managers at the lowest level manage the work of non-managerial employees directly or indirectly involved with the production or creation of the organization’s products. Learning Outcome 1: Understand what makes someone a manager. Managers can be classified by their level in the organization, particularly for traditionally structured organizations (those shaped like a pyramid) (see Exhibit 1-1). 1. First-line managers are the lowest level of management. They’re often called supervisors. Copyright © 2016 Pearson Canada Inc.

Types of Managers Middle Managers: Managers between the first-line level and the top level of the organization who manage the work of first-line managers. Learning Outcome 1: Understand what makes someone a manager. Managers can be classified by their level in the organization, particularly for traditionally structured organizations (those shaped like a pyramid) (see Exhibit 1-1). 2. Middle managers include all levels of management between the first-line level and the top level of the organization. 3. Top managers include managers at or near the top of the organization who are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. Copyright © 2016 Pearson Canada Inc.

Types of Managers Top Managers: Managers at or near the top level are responsible for making organization-wide decisions and establishing plans and goals affecting the entire organization. Learning Outcome 1: Understand what makes someone a manager. Managers can be classified by their level in the organization, particularly for traditionally structured organizations (those shaped like a pyramid) (see Exhibit 1-1). 3. Top managers include managers at or near the top of the organization who are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. Copyright © 2016 Pearson Canada Inc.

Exhibit 1-1 Managerial Levels
Learning Outcome 1: Understand what makes someone a manager. Managers can be classified by their level in the organization, particularly for traditionally structured organizations (those shaped like a pyramid) (see Exhibit 1-1). 1. First-line managers are the lowest level of management. They’re often called supervisors. 2. Middle managers include all levels of management between the first-line level and the top level of the organization. 3. Top managers include managers at or near the top of the organization who are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. Copyright © 2016 Pearson Canada Inc.

What Is Management and What Do Managers Do?
Coordinating work activities with and through other people so the activities are completed efficiently and effectively.. Learning Outcome 1: Understand what makes someone a manager. Managers can be classified by their level in the organization, particularly for traditionally structured organizations (those shaped like a pyramid) (see Exhibit 1-1). 3. Top managers include managers at or near the top of the organization who are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. Copyright © 2016 Pearson Canada Inc.

Managerial Concerns: Efficiency & Effectiveness Learning Outcome 2: Define management and describe what managers do. Management refers to the process of coordinating and integrating work activities so that they’re completed efficiently and effectively with and through other people. Copyright © 2016 Pearson Canada Inc.

Efficiency - “Doing things right” Getting the most output from the least amount of inputs. Effectiveness - “Doing the right things” Completing activities so that organizational goals are achieved. Learning Outcome 2: Define management and describe what managers do. Management refers to the process of coordinating and integrating work activities so that they’re completed efficiently and effectively with and through other people. 1. The process refers to the ongoing functions or primary activities engaged in by managers. 2. Coordinating others’ work activities is what distinguishes a manager’s job from a non-managerial one. 3. Efficiency is getting the most output from the least amount of input, the goal of which is to minimize resource costs (see Exhibit 1-2). 4. Effectiveness is completing activities so that organizational goals are attained; often described as “doing the right things” (see Exhibit 1-2). Copyright © 2016 Pearson Canada Inc.

Exhibit 1-2 Efficiency and Effectiveness in Management
Learning Outcome 2: Define management and describe what managers do. Copyright © 2016 Pearson Canada Inc.

Management Functions? Management functions: Deal with complicated ethical and social responsibility issues as they plan, organize, lead and control. Learning Outcome 2: Define management and describe what managers do. Copyright © 2016 Pearson Canada Inc.

Management Functions: According to the Functions Approach: Managers perform certain activities or duties as they efficiently and effectively coordinate the work of others. Learning Outcome 2: Define management and describe what managers do. No two managers’ jobs are alike. But management writers and researchers have developed some specific categorization schemes to describe what managers do. We’re going to look at three categorization schemes: functions, roles, and skills. `Henri Fayol, a French industrialist from the early part of the 1900s, proposed that managers perform five management functions: POCCC (plan, organize, command, coordinate, control). 1. These functions still provide the basis around which popular management textbooks are organized, but the functions have been condensed to four (see Exhibit 1-3). Copyright © 2016 Pearson Canada Inc.

Henri Fayol first proposed that all managers perform five functions: Planning Organizing Commanding Coordinating Controlling Learning Outcome 2: Define management and describe what managers do. No two managers’ jobs are alike. But management writers and researchers have developed some specific categorization schemes to describe what managers do. We’re going to look at three categorization schemes: functions, roles, and skills. Henri Fayol, a French industrialist from the early part of the 1900s, proposed that managers perform five management functions: POCCC (plan, organize, command, coordinate, control). 1. These functions still provide the basis around which popular management textbooks are organized, but the functions have been condensed to four (see Exhibit 1-3). Copyright © 2016 Pearson Canada Inc.

Most management books now use a four function model: Planning Organizing Lead Control Learning Outcome 2: Define management and describe what managers do. No two managers’ jobs are alike. But management writers and researchers have developed some specific categorization schemes to describe what managers do. We’re going to look at three categorization schemes: functions, roles, and skills. Henri Fayol, a French industrialist from the early part of the 1900s, proposed that managers perform five management functions: POCCC (plan, organize, command, coordinate, control). 1. These functions still provide the basis around which popular management textbooks are organized, but the functions have been condensed to four (see Exhibit 1-3). Copyright © 2016 Pearson Canada Inc.

Exhibit 1-3 Management Functions
’ Learning Outcome 2: Define management and describe what managers do. Copyright © 2016 Pearson Canada Inc.

Management Roles Approach (Henry Mintzberg) Interpersonal roles Figurehead, leader, liaison Informational roles Monitor, disseminator, spokesperson Decisional roles Entrepreneur, disturbance handler, resource allocator, negotiator Learning Outcome 2: Define management and describe what managers do. In the late 1960s, Henry Mintzberg conducted a precise study of managers at work. He concluded that managers perform 10 different, but highly interrelated, management roles. a. Interpersonal roles included figurehead, leadership, and liaison activities. b. Informational roles included monitoring, disseminating, and spokesperson activities. c. Decisional roles included those of entrepreneur, disturbance handler, resource allocator, and negotiator. Follow up studies of Mintzberg’s role categories in different types of organizations and at different managerial levels within organizations have generally supported the notion that managers perform similar roles. However, the more traditional functions have not been invalidated. In fact, the functional approach still represents the most useful way of classifying the manager’s job. Copyright © 2016 Pearson Canada Inc.

Function vs. Roles So which approach to describing what managers do is better—functions or roles? Learning Outcome 2: Define management and describe what managers do. Managers need certain skills to perform the varied duties and activities associated with being a manager. 1. Robert L. Katz found through his research in the early 1970s that managers need three essential skills or competencies (see Exhibit 1-5). a. Technical skills are skills that include knowledge of and proficiency in a certain specialized field. b. Human skills include the ability to work well with other people both individually and in a group. c. Conceptual skills include the ability to think and to conceptualize about abstract and complex situations, to see the organization as a whole, and to understand the relationships among the various subunits, and to visualize how the organization fits into its broader environment. NOTE: At the end of each chapter is a “Building Your Skills” exercise. These skills reflect a broad cross-section of the managerial activities that are important elements of the four management functions. Copyright © 2016 Pearson Canada Inc.

Management Skills Approach (Robert Katz) Technical skills Knowledge and proficiency in a specific field Human skills The ability to work well with other people Conceptual skills The ability to think and conceptualize about abstract and complex situations concerning the organization Learning Outcome 2: Define management and describe what managers do. Managers need certain skills to perform the varied duties and activities associated with being a manager. 1. Robert L. Katz found through his research in the early 1970s that managers need three essential skills or competencies (see Exhibit 1-5). a. Technical skills are skills that include knowledge of and proficiency in a certain specialized field. b. Human skills include the ability to work well with other people both individually and in a group. c. Conceptual skills include the ability to think and to conceptualize about abstract and complex situations, to see the organization as a whole, and to understand the relationships among the various subunits, and to visualize how the organization fits into its broader environment. NOTE: At the end of each chapter is a “Building Your Skills” exercise. These skills reflect a broad cross-section of the managerial activities that are important elements of the four management functions. Copyright © 2016 Pearson Canada Inc.

Exhibit 1-5 Skills Needed at Different Management Levels
Learning Outcome 2: Define management and describe what managers do. Exhibit 1-5 shows the relationship between skills needed and the levels of management. Note that many of the skills are important to more than one function. Copyright © 2016 Pearson Canada Inc.

What Is an Organization?
An Organization Defined: A deliberate arrangement of people who act together to accomplish some specific purpose. Learning Outcome 3: Describe the characteristics of an organization Organizations need managers. An organization is a deliberate arrangement of people to accomplish some specific purpose. A. Organizations share three common characteristics: (1) each has a distinct purpose; (2) each is composed of people; and (3) each develops some deliberate structure so members can do their work. Copyright © 2016 Pearson Canada Inc.

Common Characteristics of Organizations: Distinct purpose Composed of people Deliberate structure Learning Outcome 3: Describe the characteristics of an organization Copyright © 2016 Pearson Canada Inc.

Exhibit 1-6 Characteristics of Organizations
Learning Outcome 3: Describe the characteristics of an organization. Copyright © 2016 Pearson Canada Inc.

The Size of Organizations: Managers and employees work in a variety of different sized organizations. Large organizations represent only 2% of the organizations in Canada Small business represent 98% of all Canadian companies Learning Outcome 3: Describe the characteristics of an organization Copyright © 2016 Pearson Canada Inc.

Exhibit 1-7 The Changing Organization
Characteristics of the Traditional Organization Stable Inflexible Job-focused Work is defined by job positions Individual-oriented Permanent jobs Command-oriented Learning Outcome 3: Describe the characteristics of an organization Organizations are changing because the world around them has changed and is continuing to change. These societal, economic, global, and technological changes have created an environment in which successful organizations must embrace new ways of getting their work done. Copyright © 2016 Pearson Canada Inc.

Characteristics of the Traditional Organization Managers make decisions Rule-oriented Homogeneous workforce “9 to 5” hours Hierarchical Typical hours of operation Learning Outcome 3: Describe the characteristics of an organization Copyright © 2016 Pearson Canada Inc.

Characteristics of the New Organization Dynamic Flexible Skills-focused Work is defined in terms of tasks to be done Team-oriented Temporary jobs Involvement-oriented Learning Outcome 3: Describe the characteristics of an organization Copyright © 2016 Pearson Canada Inc.

Characteristics of the New Organization Employees participate in decision making Customer-oriented Diverse workforce Workdays have no time boundaries Lateral and networked relationships Work anywhere, anytime Learning Outcome 3: Describe the characteristics of an organization Copyright © 2016 Pearson Canada Inc.

The Types of Organizations:
The type of organization impacts the manager’s role: Publicly held organizations Privately held organizations Not-for-profit sector NGO Public sector organizations Civil servant Crown Corporations Learning Outcome 3: Describe the characteristics of an organization Copyright © 2016 Pearson Canada Inc.

How Is the Manager’s Job Changing?
Managing is far more complicated today than it ever was. Managers, must deal with multicultural challenges, technological challenges, and the demand for more accountability from customers and clients. Learning Outcome 4: Understand the challenges to managing. Copyright © 2016 Pearson Canada Inc.

Managers everywhere are dealing with: Corporate ethics scandals Be more socially responsible Diverse workforce Globalization Learning Outcome 4: Understand the challenges to managing. Copyright © 2016 Pearson Canada Inc.

Importance of Customers to the Manager’s Job You need customers. Without them, most organizations would cease to exist. The majority of employees in developed countries work in service jobs. For instance, almost 72 percent of the Canadian labour force is employed in service industries. High-quality customer service is essential for survival and success in today’s competitive environment. Learning Outcome 4: Understand the challenges to managing. Copyright © 2016 Pearson Canada Inc.

Importance of Social Media to the Manager’s Job Managers need to understand and manage the power and peril of social media. More and more businesses are turning to social media as a way to manage their human resources and tap into their innovation and talent. Learning Outcome 4: Understand the challenges to managing. Copyright © 2016 Pearson Canada Inc.

Importance of Innovation to the Manager’s Job “Nothing is more risky than not innovating.” Innovative efforts can be found in all types of organizations. Innovation is critical throughout all levels and parts of an organization. Learning Outcome 4: Understand the challenges to managing. Copyright © 2016 Pearson Canada Inc.

Importance of Adaptability to the Manager’s Job An adaptable organization creates a set of skills, processes, and a culture that enable it to continuously look for new problems and offer solutions before the clients even realize they have a need. Learning Outcome 4: Understand the challenges to managing. Copyright © 2016 Pearson Canada Inc.

Importance of Sustainability to the Manager’s Job Managing in a sustainable way, which has had the effect of widening corporate responsibility not only to managing in an efficient and effective way, but also to responding strategically to a wide range of environmental and societal challenges. Learning Outcome 4: Understand the challenges to managing. Copyright © 2016 Pearson Canada Inc.

Why Study Management? Learning Outcome 4: Understand the challenges to managing. Beyond behaving ethically, today’s managers are also challenged to be socially responsible. The International Standards Organization (ISO) released its latest standard (ISO 26000), which “will help organizations for whom operating in a socially responsible manner. It will be a powerful tool to help organizations move from good intentions about SR to good actions.” A socially responsible organization goes beyond what it’s obligated to do or chooses to do because of some popular social need and does what it can to help improve society because it’s the right thing to do. Social responsibility is defined as a business’s efforts, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. Copyright © 2016 Pearson Canada Inc.

Summary and Implications
Explain why managers are important to an organization. Managers are important to organizations for three reasons. First, organizations need their managerial skills and abilities in uncertain, complex, and chaotic times. Second, managers are critical to getting things done in organizations. Finally, managers contribute to employee productivity and loyalty; the way employees are managed can affect the organization’s financial performance; and managerial ability has been shown to be important in creating organizational value. Learning Outcome 1 Copyright © 2016 Pearson Canada Inc.

Tell who managers are and where they work. Managers coordinate and oversee the work of other people so that organizational goals can be accomplished. In traditionally structured organizations, managers can be first-line, middle, or top. In other more loosely configured organizations, the managers may not be as readily identifiable, although someone must fulfill that role. Learning Outcome 2 Copyright © 2016 Pearson Canada Inc.

Describe the characteristics of an organization. Managers work in a variety of organizations both large and small within various industries. Organizations have three characteristics: a distinctive purpose, composed of people, and a deliberate structure. Learning Outcome 3 Copyright © 2016 Pearson Canada Inc.

Describe the factors that are reshaping and redefining the manager’s job . Some of the many challenges of managing include global economic and political uncertainties, changing workplaces, ethical issues, security threats, and changing technology. The greatest managerial challenge is the crisis in ethical responsibility damaging today’s organizations. Learning Outcome 4 Copyright © 2016 Pearson Canada Inc.

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