1. Chapter1Chapter1 PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2004. All rights reserved. The Management Process

2. © Copyright 2004 McGraw-Hill. All rights reserved.1–21–2 Learning Objectives After studying the chapter, you should be able to:After studying the chapter, you should be able to:  Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals.  Distinguish among planning, organizing, leading, and controlling (the four managerial functions), and explain how managers’ ability to handle each one can affect organizational performance.

3. © Copyright 2004 McGraw-Hill. All rights reserved.1–31–3 Learning Objectives (cont’d)  Differentiate among three levels of management, and understand the responsibilities of managers at different levels in the organizational hierarchy.  Identify the roles managers perform, the skills they need to execute those roles effectively and the way new information technology is affecting these roles and skills.  Discuss the principal challenges managers face in today’s increasingly competitive global environment.

4. © Copyright 2004 McGraw-Hill. All rights reserved.1–41–4 What Is Management? ManagementManagement  The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently. ManagersManagers  The people responsible for supervising the use of an organization’s resources to meet its goals. Resources are organizational assetsResources are organizational assets  People  Skills  Knowledge  Information  Raw materials  Machinery  Financial capital

5. © Copyright 2004 McGraw-Hill. All rights reserved.1–51–5 Efficiency, Effectiveness, and Performance in an Organization Figure 1.1

6. © Copyright 2004 McGraw-Hill. All rights reserved.1–61–6 Organizational Performance Organizational PerformanceOrganizational Performance  A measure of how efficiently and effectively managers are using organizational resources to satisfy customers and achieve goals. EfficiencyEfficiency  A measure of how well or productively resources are used to achieve a goal. EffectivenessEffectiveness  A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved. To get the right things done! To do the things right!

7. © Copyright 2004 McGraw-Hill. All rights reserved.1–71–7 Why Study Management? Proper management directly impacts improvements in the well-being of a society.Proper management directly impacts improvements in the well-being of a society. Studying management helps people to understand what management is and prepares them accomplish managerial activities in their organizations.Studying management helps people to understand what management is and prepares them accomplish managerial activities in their organizations. Studying management opens a path to a well- paying job and a satisfying career.Studying management opens a path to a well- paying job and a satisfying career.

8. © Copyright 2004 McGraw-Hill. All rights reserved.1–81–8 Four Functions of Management Figure 1.2

9. © Copyright 2004 McGraw-Hill. All rights reserved.1–91–9 Managerial Functions Henri FayolHenri Fayol  First outlined the four managerial functions in his book General Industrial Management.  Managers at all levels in all organizations perform each of the functions of planning, organizing, leading, and controlling.

10. © Copyright 2004 McGraw-Hill. All rights reserved.1–10 PlanningPlanning Identifying and selecting appropriate goals and courses of action for an organization.Identifying and selecting appropriate goals and courses of action for an organization.  The planning function determines how effective and efficient the organization is and determines the strategy of the organization. Three Steps in the Planning Process:Three Steps in the Planning Process:  Deciding which goals to pursue.  Deciding what courses of action to adopt.  Deciding how to allocate resources.

11. © Copyright 2004 McGraw-Hill. All rights reserved.1–11 Management Key Concepts OrganizationOrganization  People working together and coordinating their actions to achieve specific goals. Goal/objectiveGoal/objective  A desired future condition that the organization seeks to achieve. StrategyStrategy  A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals. c.f. policy

12. © Copyright 2004 McGraw-Hill. All rights reserved.1–12 OrganizingOrganizing Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals.Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals. Organizational StructureOrganizational Structure  A formal system of task and reporting relationships that coordinates and motivates organizational members.  Creating organizational structure: Grouping employees into departments according to the tasks performed.Grouping employees into departments according to the tasks performed. Laying out lines of authority and responsibility for organizational members.Laying out lines of authority and responsibility for organizational members.

13. © Copyright 2004 McGraw-Hill. All rights reserved.1–13 LeadingLeading Articulating a clear vision to follow, and energizing and enabling organizational members so they understand the part they play in attaining organizational goals.Articulating a clear vision to follow, and energizing and enabling organizational members so they understand the part they play in attaining organizational goals.  Leadership involves using power, influence, vision, persuasion, and communication skills.  The outcome of leadership is highly motivated and committed organizational members.

14. © Copyright 2004 McGraw-Hill. All rights reserved.1–14 ControllingControlling Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance.Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance.  Monitoring individuals, departments, and the organization to determine if desired performance standards have been reached.  Taking action to increase performance as required.  The outcome of control is the ability to measure performance accurately and to regulate the organization for efficiency and effectiveness.

15. © Copyright 2004 McGraw-Hill. All rights reserved.1–15 Types of Managers Levels of ManagementLevels of Management  First-line managers Responsible for day-to-day operations. Supervise people performing activities required to make the good or service.Responsible for day-to-day operations. Supervise people performing activities required to make the good or service.  Middle managers Supervise first-line managers. Are responsible to find the best way to use departmental resources to achieve goals.Supervise first-line managers. Are responsible to find the best way to use departmental resources to achieve goals.  Top managers Responsible for the performance of all departments and have cross-departmental responsibility.Responsible for the performance of all departments and have cross-departmental responsibility. Establish organizational goals and monitor middle managers.Establish organizational goals and monitor middle managers. Form top management team along with the CEO and COO.Form top management team along with the CEO and COO.

16. © Copyright 2004 McGraw-Hill. All rights reserved.1–16 Levels of Management Figure 1.3

17. © Copyright 2004 McGraw-Hill. All rights reserved.1–17 Relative Amount of Time That Managers Spend on the Four Managerial Functions Figure 1.4

18. © Copyright 2004 McGraw-Hill. All rights reserved.1–18 IT and Managerial Roles and Skills Information Technology (IT) is increasingly used to help managers adopt a cross- departmental view of their organization.Information Technology (IT) is increasingly used to help managers adopt a cross- departmental view of their organization. Managerial RoleManagerial Role  The set of specific tasks that a person is expected to perform because of the position he or she holds in the organization. Roles are defined into three role categories (as identified by Mintzberg):Roles are defined into three role categories (as identified by Mintzberg):  Interpersonal  Informational  Decisional

19. © Copyright 2004 McGraw-Hill. All rights reserved.1–19 Decisional Roles Roles associated with methods managers use in planning strategy and utilizing resources:Roles associated with methods managers use in planning strategy and utilizing resources:  Entrepreneur—deciding which new projects or programs to initiate and to invest resources in.  Disturbance handler—managing an unexpected event or crisis.  Resource allocator—assigning resources between functions and divisions, setting the budgets of lower managers.  Negotiator—reaching agreements between other managers, unions, customers, or shareholders.

20. © Copyright 2004 McGraw-Hill. All rights reserved.1–20 Informational Roles Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization:Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization:  Monitor—analyzing information from both the internal and external environment.  Disseminator—transmitting information to influence the attitudes and behavior of employees.  Spokesperson—using information to positively influence the way people in and out of the organization respond to it.

21. © Copyright 2004 McGraw-Hill. All rights reserved.1–21 Interpersonal Roles Roles that managers assume to provide direction and supervision to both employees and the organization as a whole:Roles that managers assume to provide direction and supervision to both employees and the organization as a whole:  Figurehead—symbolizing the organization’s mission and what it is seeking to achieve.  Leader—training, counseling, and mentoring high employee performance.  Liaison—linking and coordinating the activities of people and groups both inside and outside the organization/department.

22. © Copyright 2004 McGraw-Hill. All rights reserved.1–22 Being a Manager BrevityBrevity High Variety FragmentationFragmentation Managerial Problems Compensation to be a manager

23. © Copyright 2004 McGraw-Hill. All rights reserved.1–23 Managerial Skills Conceptual SkillsConceptual Skills  The ability to analyze and diagnose a situation and distinguish between cause and effect. Human SkillsHuman Skills  The ability to understand, alter, lead, and control the behavior of other individuals and groups. Technical SkillsTechnical Skills  The specific knowledge and techniques required to perform an organizational role. What should be the right thing? How can we do better?

24. © Copyright 2004 McGraw-Hill. All rights reserved.1–24 Skill Types Needed by Managerial Level

25. © Copyright 2004 McGraw-Hill. All rights reserved.1–25 Challenges for Management in a Global Environment Increasing Number of Global Organizations.Increasing Number of Global Organizations. Building a Competitive Advantage.Building a Competitive Advantage. Maintaining Ethical Standards.Maintaining Ethical Standards. Managing a Diverse Workforce.Managing a Diverse Workforce. Utilizing IT and E-commerce.Utilizing IT and E-commerce.

26. © Copyright 2004 McGraw-Hill. All rights reserved.1–26 Building a Competitive Advantage Increasing EfficiencyIncreasing Efficiency  Reducing the quantity of resources used to produce goods and services. Increasing QualityIncreasing Quality  Introducing Total Quality Management (TQM) to improve quality. Increasing Speed, Flexibility, and InnovationIncreasing Speed, Flexibility, and Innovation  Adapting to bring new products to market faster. Increasing Responsiveness to CustomersIncreasing Responsiveness to Customers  Empowering employees to deal with customers.

27. © Copyright 2004 McGraw-Hill. All rights reserved.1–27 Building Blocks of Competitive Advantage Figure 1.5

28. © Copyright 2004 McGraw-Hill. All rights reserved.1–28 Maintaining Ethical Standards Factors Influencing Behaviors:Factors Influencing Behaviors:  External pressures from stockholders/stakeholders for increased organizational financial performance.  Internal pressures from top management to lower- level managers to increase the organization’s competitive performance and profitability.  Societal, cultural, and environment demands on the organization. Hurt somebody unintendedly vs. illegally

29. © Copyright 2004 McGraw-Hill. All rights reserved.1–29 Managing a Diverse Workforce The Increasing Diversity of the WorkforceThe Increasing Diversity of the Workforce Non-Discriminatory Employment PracticesNon-Discriminatory Employment Practices Performance-Enhancing Benefits of a Diverse WorkforcePerformance-Enhancing Benefits of a Diverse Workforce The opportunities for specialization

30. © Copyright 2004 McGraw-Hill. All rights reserved.1–30 Utilizing Information Technology (IT) and E-commerce Benefits of IT and E-commerceBenefits of IT and E-commerce  Makes more and better information about the organization available to outsiders  Empowers employees at all organizational levels  Helps managers carry out their roles more effectively and efficiently  Increases awareness of competitive opportunities  Makes the organization more responsive to its customers

31. © Copyright 2004 McGraw-Hill. All rights reserved.1–31 Readings on the historical management gurus Appendix A of chapter 1Appendix A of chapter 1 Brief the management thoughtsBrief the management thoughts