1. PowerPoint Presentation by Charlie Cook The University of West Alabama © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

2. 1–2 1.Describe the nature of management, define management and managers, and characterize their importance to contemporary organizations. 2.Identify and briefly explain the four basic management functions in organizations. 3.Describe the kinds of managers found at different levels and in different areas of the organization. 4.Identify the basic managerial roles that managers play and the skills they need to be successful. 5.Discuss the science and the art of management, describe how people become managers, and summarize the scope of management in organizations. 6.Characterize the new workplace that is emerging in organizations today. Learning Objectives After studying this chapter, you should be able to:

3. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–3 What Is an Organization? A group of people working together in a structured and coordinated fashion to achieve a set of goals.A group of people working together in a structured and coordinated fashion to achieve a set of goals.

4. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–4 Organizational Resources Physical Resources Human Resources Information Resources Financial Resources Organizational Resources

5. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–5 Organizational Resources Human resourcesHuman resources  Managerial talent and labor Financial resourcesFinancial resources  Capital investments to support ongoing and long-term operations Physical resourcesPhysical resources  Raw materials; office and production facilities, and equipment Information resourcesInformation resources  Usable data, information linkages

6. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–6 1.1 Examples of Resources Used by Organizations Organization Human Resources Financial Resources Physical Resources Information Resources Royal Dutch/ Shell Group Drilling platform workers Corporate executives Profits Stockholder investments Refineries Office buildings Sales forecasts OPEC proclamations Michigan State University Faculty Administrative staff Alumni contributions Government grants Computers Campus facilities Research reports Government publications New York CityPolice officers Municipal employees Tax revenue Government grants Sanitation equipment Municipal buildings Economic forecasts Crime statistics Susan’s Corner Grocery Store Grocery clerks Bookkeeper Profits Owner investment Building Display shelving Price lists from suppliers Newspaper ads for competitors

7. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–7 What is Management? A set of activitiesA set of activities  planning and decision making, organizing, leading, and controlling directed at an organization’s resources  human, financial, physical, and information with the aim of achieving organizational goals in an efficient and effective manner.

8. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–8 1.1 Management in Organizations

9. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–9 The Basic Purpose of Management EFFICIENTLY Using resources wisely and in a cost-effective way EFFECTIVELY Making the right decisions and successfully implementing them And

10. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–10 What is a Manager? Someone whose primary responsibility is to carry out the management process.Someone whose primary responsibility is to carry out the management process.  Plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.

11. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–11 The Manager’s Job Plan:Plan:  A manager cannot operate effectively unless he or she has long range plans. OrganizeOrganize  When there is more than one employee needed to carry out a plan, then organization is needed. ControlControl  Develop a method to know how well employees are performing to determine what has been and what still must be done.

12. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–12 1.2 The Management Process

13. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–13 The Management Process Planning and Decision Making: Determining goals and courses of actionPlanning and Decision Making: Determining goals and courses of action Organizing: Coordinating activities and resourcesOrganizing: Coordinating activities and resources Leading: Motivating and managing peopleLeading: Motivating and managing people Controlling: Monitoring and evaluating activitiesControlling: Monitoring and evaluating activities

14. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–14 1.3 Kinds of Managers by Level and Area

15. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–15 Kinds of Managers by Level Top ManagersTop Managers  are the small group of executives who manage the overall organization. They create the organization’s goals, overall strategy, and operating policies. Middle ManagersMiddle Managers  are primarily responsible for implementing the policies and plans of top managers. They also supervise and coordinate the activities of lower level managers. First-Line ManagersFirst-Line Managers  supervise and coordinate the activities of operating employees.

16. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–16 Kinds of Managers by Area Human Resources Managers Administrative Managers Specialist Managers Kinds of Managers by Area Marketing Managers Financial Managers Operations Managers

17. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–17 Kinds of Managers by Area Marketing ManagersMarketing Managers  work in areas related to getting consumers and clients to buy the organization’s products or services—new product development, promotion, and distribution. Financial ManagersFinancial Managers  deal primarily with an organization’s financial resources—accounting, cash management, and investments. Operations ManagersOperations Managers  are involved with systems that create products and services—production control, inventory, quality control, plant layout, site selection.

18. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–18 Kinds of Managers by Area (cont’d) Human Resources ManagersHuman Resources Managers  are involved in human resource activities. Administrative ManagersAdministrative Managers  are generalists familiar with all functional areas of management and are not associated with any particular management specialty. Other Kinds of ManagersOther Kinds of Managers  hold specialized managerial positions (e.g., public relations managers) directly related to the needs of the organization.

19. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–19 Basic Managerial Roles and Skills Regardless of level or area, all managers must play certain roles and exhibit specific skills in order to be successful.Regardless of level or area, all managers must play certain roles and exhibit specific skills in order to be successful. Managers:Managers:  Do certain things.  Meet certain needs.  Have certain responsibilities.

20. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–20 Lights, Roll Camera, Manage !!! Interpersonal Roles Informational Roles Managerial Roles Decisional Roles

21. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–21 Managerial Roles (Mintzberg) Interpersonal RolesInterpersonal Roles  Figurehead, leader, and liaison roles involve dealing with other people. Informational RolesInformational Roles  Monitor, disseminator, and spokesperson roles involve the processing of information. Decisional RolesDecisional Roles  Entrepreneur, disturbance handler, resource allocator, and negotiator are managerial roles primarily related to making decisions.

22. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–22 1.2 Ten Basic Managerial Roles CategoryRoleSample Activities InterpersonalFigureheadAttending ribbon-cutting ceremony for new plant LeaderEncouraging employees to improve productivity LiaisonCoordinating activities of two project groups InformationalMonitorScanning industry reports to stay abreast of developments DisseminatorSending memos outlining new organizational initiatives SpokespersonMaking a speech to discuss growth plans DecisionalEntrepreneurDeveloping new ideas for innovation Disturbance handler Resolving conflict between two subordinates Resource allocator Reviewing and revising budget requests NegotiatorReaching agreement with a key supplier or labor union

23. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–23 What Skills Do Managers Need? Technical Conceptual Communication Time Management Decision Making Diagnostic Interpersonal Fundamental Management Skills

24. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–24 Managerial Skills TechnicalTechnical  To accomplish or understand the specific kind of work being done in an organization. InterpersonalInterpersonal  To communicate with, understand, and motivate both individuals and groups. ConceptualConceptual  To think in the abstract. DiagnosticDiagnostic  To visualize the appropriate response to a situation.

25. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–25 Managerial Skills (cont’d) CommunicationCommunication  To convey ideas and information effectively to others and to receive the same effectively from others. Decision-MakingDecision-Making  To recognize and define problems and opportunities and then to select an appropriate course of action to solve problems and capitalize on opportunities. Time-ManagementTime-Management  To prioritize work, to work efficiently, and to delegate appropriately.

26. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–26 Management: Science or Art? The Science of ManagementThe Science of Management  Assumes that problems can be approached using rational, logical, objective, and systematic ways.  Requires the use of technical, diagnostic, and decision-making skills and techniques to solve problems. The Art of ManagementThe Art of Management  Making decisions and solving problems using a blend of intuition, experience, instinct, and personal insights.  Using conceptual, communication, interpersonal, and time- management skills to accomplish the tasks associated with managerial activities.

27. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–27 Management Challenge Question What do you say to your boss when your boss wants you to make the numbers fit the forecast?What do you say to your boss when your boss wants you to make the numbers fit the forecast? A. What do you want the numbers to be? B. Which numbers are right? which are wrong? C. No problem. If anyone asks, I’ll say that I deferred to your judgment and am using your numbers. D. What are the consequences if I refuse to do that?

28. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–28 1.4 Sources of Management Skills

29. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–29 Managing in Organizations For-Profit OrganizationsFor-Profit Organizations  Large businesses  Industrial firms, commercial banks, insurance firms, retailers, transportation firms, utilities, communication firms, service organizations  Small businesses and start-up businesses  International management Not-for-Profit OrganizationsNot-for-Profit Organizations  Governmental organizations—local, state, and federal  Educational organizations—public and private schools, colleges, and universities  Healthcare facilities—public hospitals and HMOs  Nontraditional settings—community, social, spiritual groups

30. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.1–30 You’re the Manager The Situation:The Situation:  The group manager that you replacing has remained on job for a short time to train you, however he did not actively involve you in daily operations. He departs permanently after today’s meeting.  Morale is low because the group manager has been running a one-person show with no significant delegation or participation by other employees.  The overall performance of the group appears to be far below its current capabilities. What will you do first?What will you do first? After that, what will you do next?After that, what will you do next?