1. 1 Chapter Copyright ©2011 Pearson Education Managers and Management

2. 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 ©2011 Pearson Education1-2

3. Who Are Managers? Where Do They Work? Organization – A deliberate arrangement of people brought together to accomplish some specific purpose. Such us uni, football teams. Common Characteristics of Organizations – Distinct purpose expressed in a goal or a set of goals – People working together to achieve the orgs goal through a set of decisions and work activities. – A deliberate systematic structure that define and limits the behavior of its members 1-3Copyright ©2011 Pearson Education

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5. 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, team members Managers – Individuals in organizations who direct and oversee the activities of others. – Managers do work directly on tasks such as servicing some costumers. 1-5Copyright ©2011 Pearson Education

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7. What Titles Do Managers Have? Top Managers – Responsible for making decisions about the direction of the organization and establishing policies and philosophies that effect all organizational members. – Examples; President, Chief Executive Officer, Vice-President Middle Managers ( btw the lowest and top levels) – Manage the activities of other managers and non managerial employees and translating the goals set by top managers to specific details that lower managers can understand. – Examples; District Manager, Division Manager First-line Managers – Responsible for directing the day to day activities of nonmanagerial employees – Examples; Supervisor, Team Leader 1-7Copyright ©2011 Pearson Education

8. What Is Management? Management – The process of getting things done effectively and efficiently, with and through people – A process refers to a set of ongoing and interrelated activities. Efficiency – “Doing things right”, and getting the most output from the least amount of input( minimizing the coast). 1-8Copyright ©2011 Pearson Education

9. What Is Management? Effectiveness doing those work tasks that help the org to reach its goals. Efficiency is concerned with the means of getting things done while effectiveness is concerned with the ends. Copyright ©2011 Pearson Education1-9

10. What Do Managers Do? Management researchers have developed three approaches to describe what managers do: functions, roles and skills. 1-10Copyright ©2011 Pearson Education

11. Four Management Functions ( Henri Fayol) Planning – Defining the organizational purpose and ways to achieve it ex, defining goals, developing plans and sup plans to coordinate the activities, and establishing the strategy. Organizing – Arranging and structuring work to accomplish organizational goals ex who reports to whom and dividing work on employees. Leading – Directing the work activities of others ex resolving conflicts, motivating employees, chosen the most effective channel to communicate 1-11Copyright ©2011 Pearson Education

12. Four Management Functions ( Henri Fayol) Controlling – Monitoring, comparing, and correcting work performance ex evaluation Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall. 1-12

13. What Roles Do Managers Play? Henry Mintzberg observed that a manager’s job can be described by ten roles performed by managers in three general categories: Interpersonal Roles (ones that involve subordinates and persons outside the org) and other duties that are ceremonial & symbolic in nature) – Figurehead, Leader, and Liaison Informational Roles (collecting, receiving and analyzing info) – Monitor, Disseminator and Spokesperson 1-13Copyright ©2011 Pearson Education

14. What Roles Do Managers Play? Decisional roles ( making decision and look into choices ) – Entrepreneur, Disturbance Handler, Resource Allocator and Negotiator Copyright ©2011 Pearson Education1-14

15. What Skills Do Managers Need? Robert Katz and others describe four critical skills in managing Conceptual Skills – Used to analyze and diagnose complex situations, help managers see how things fit together and facilitate making good decision. Interpersonal Skills – working well with other people both individually and groups, so managers must have good skills to communicate, motivate, mentor and delegate. Technical Skills – Based on specialized knowledge required for work (lower and middle managers knowing of the job they are performing, top managers knowing of the industry and a general understanding of the org’s process and products. Political Skills – Used to build a power base and establish connections. 1-15Copyright ©2011 Pearson Education

16. Is The Manager’s Job Universal? All manager plan, organize, lead, and control but how they do them and how much they do them vary according to several dimensions: Level in the Organization – Top level managers do more planning and less direct oversees of others than supervisors. – All managers make decisions, planning…..but the amount they delegate to each of them is different. – Therefore, the difference is not on the activity or function itself but on the degree, emphasis, and time that been given to each activity. 1-16Copyright ©2011 Pearson Education

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18. Is The Manager’s Job Universal? Profit vs. Nonprofit Manager’s job are the same in both profit and non profit org. All of them make decisions, set goals, and motivate their employees. The only difference is in the (performance measurement): Profit organizations measure their performance by the amount of profit they achieve. There are no specific measurement to measure the success of non-profit org. The financial side is still important in non- profit org. 1-18

19. Is the Manager’s Job Universal? (cont’d) Size of the Organization – Small businesses have fewer than 500 employees and which doesn’t often engage in any new innovative practices … managers in this kind of org do the role of spokesperson and spend most of their time in doing outwardly directed action ex meeting with costumers. – Large business is the contrast of the above. National Borders (Geographic location) – It is not a good idea to make the manager and management concept universal because each country is greatly differ in its economic, political, social, and cultural environment. 1-19Copyright ©2011 Pearson Education

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21. Why Study Management? All of us have a vested interest in improving the way organizations are managed, by studying management you can know (what good manager should be going and what poor management are) The causes of studying management are: Organizations that are well managed find ways to prosper even in challenging economic times After graduation most students become managers or are managed Copyright ©2011 Pearson Education1-21

22. What Can Students of Management Learn From Other Courses? The following areas of study are important and could affect the management practices: Anthropology – The study of social societies which helps us learn about humans and their activities – Focusing on culture and environment>> could help managers to understand differences in attitudes and behaviors between people in different countries and within different org. Economics – Provides us with an understanding of the changing economy and competition in a global context – Help managers to understand the trading policies when they are operating in global marketplace. 1-22Copyright ©2011 Pearson Education

23. What Can Students of Management Learn From Other Courses? (cont’d) Philosophy – Inquires into the nature of things, particularly values and ethics Political Science – The study of behavior and groups within a political environment – Form of government will shape the type, policies of the organization. – E.g.: in democracy, people have the right to private property, and freedom in contracting. Psychology – The science that seeks to measure, explain and sometimes change the behavior of humans – Today, we are facing: diverse customers and employees, so knowing this science could help: – understand culture diversities. – How to motivate, lead, select, train, and evaluate employees. Sociology – The study of people in relationship to their fellow human beings 1-23Copyright ©2011 Pearson Education

24. What Factors Are Reshaping and Redefining Management? Welcome to the new world of management! Today managers must deal with – Changing workplaces – Ethical and trust issues – Global economic uncertainties – Changing technologies – Two areas of critical importance of managers are: – 1. Delivering high- quality customer service. – 2. Encouraging innovative efforts. 1-24Copyright ©2011 Pearson Education

25. Why Are Customers Important to the Manager’s Job? Without customers most organizations would face difficulties to exist. E.g. Today we’re discovering that employee attitudes and behaviors play a big part in customer satisfaction For managers to survive and success in today’s competitive environment, they must create a customer responsive where employees are friendly, knowledgeable, responsive to customer needs 1-25Copyright ©2011 Pearson Education

26. Why Is Innovation Important to the Manager’s Job? “Nothing is more risky than not innovating” Innovation: is doing things differently, by taking risks. Innovation isn’t just important for high technology companies but essential in all types of organizations 1-26Copyright ©2011 Pearson Education

27. 1-27 A Brief History of Management’s Roots History Module

28. History Model The history model provide us management theories from past to present. They highlight a key person and his contribution to contemporary management concepts. Early management Classical approaches. Behavioral approaches. Quantitive approaches. Contemporary approaches. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall. 1-28

29. Early Management Management has been practiced a long time. Organized endeavors directed by people responsible for planning, organizing, leading and controlling have existed for thousands of years The building of Egyptian pyramids has employed thousands of people, so, someone has to plan what to be done, organize people to do it, make sure that everything been done as planned. Copyright ©2011 Pearson Education1-29

30. Early Management In 1776: Adam Smith argued the economic advantage of (division of labor) or (job specialization): that mean braking jobs into narrow, repetitive tasks. In job specialization, individual productivity could be increased dramatically but it does have its drawbacks. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall. 1-30

31. Classical Approach In the classical approach, the management concept begin to evolve as a knowledge. – Frederick W. Taylor described a theory of a scientific management: the use of scientific methods to determine the “one best way to do a job” focus on individual production. Copyright ©2011 Pearson Education1-31

32. Other Classical Approach General Administrative Theory – Henri Fayol looked at (organizational practices). – He identified the five management functions. – He identified 14 management principles. – Max Weber (pictured) described the bureaucracy as an ideal rational form of organization structure. Copyright ©2011 Pearson Education1-32

33. Behavioral Approach This approach focused on the actions of workers>> how do you motivate, and lead employees to get high level of performance. – Robert Owen, was concerned about deplorable (bad) working conditions, proposed idealistic workplace – Hugo Munsterberg, suggested using psychological test for employee selection – Mary Parker Follett recognized that organizations could be viewed from both individual and group behavior( org should be based on group ethic rather than individlisum) Copyright ©2011 Pearson Education

34. The Hawthorne Study Conducted at the Western Electric Company Works these studies: – Provided new insights into individual and group behavior in the behavior of people at work. – Concluded that group pressures can significantly impact individual productivity and people behave differently when they are being observed Copyright ©2011 Pearson Education1-34

35. Copyright ©2011 Pearson Education 1–35 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): a management philosophy devoted to continual improvement and responding to customers needs and expectations.

36. Contemporary Approach Management researches begin to look at the external environment outside the organization. – Chester Barnard wrote in his book that an organization functioned as a cooperative system which is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. – Organizations functioned as open systems, which means, they are influenced by and interact with their environment. Copyright ©2011 Pearson Education1-36

37. Contemporary Approach Fred Feildler first popularized the contingency approach (or situational approach) which says that organizations, employees, and situations are different and require different ways of managing. A good way to describe contingency is “if, then” If this is the way my situation is, then this is the best way for me to manage in this situation. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall. 1-37

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