1. Thomson South-Western Wagner & Hollenbeck 5e 1 Chapter Two Management And Managers

2. 2 Chapter Overview  This chapter examines the following topics: – Defining Management Three Attributes of Organizations Formal Definition – What Managers Do Managerial Jobs Managerial Skills Managerial Roles The Nature of Managerial Work – A Framework of Management Perspectives 1890-1940: The Scientific Management Perspective 1900-1950: The Administrative Principles Perspective 1930-1970: The Human Relations Perspective 1960-Present: The Open Systems Perspective A Contingency Framework

3. 3 Introduction  All businesses depend on the expertise of managers  It is important that members of modern societies know what management is, what mangers do, and how contemporary practices have developed

4. 4 Defining Management  Management, defined most simply, is the process of influencing behavior in organizations such that common purposes are identified, worked toward, and achieved  An organization is a collection of people and materials brought together to accomplish purposes not achievable through the efforts of individuals alone  Three attributes enable an organization to achieve this feat

5. 5 Three Attributes of Organizations  Mission: – Each organization works toward a specific mission, which is its purpose or reason for being – An organization’s mission helps hold it together by giving members a shared sense of direction  Division of Labor: – In every organization, difficult work is broken into smaller tasks; this division of labor can enhance efficiency by simplifying tasks and making them easier to perform – The division of labor enables organized groups of people to accomplish tasks that would be beyond their physical or mental capacities as individuals  Hierarchy of Authority: – The hierarchy of authority is another common organizational attribute

6. 6 Formal Definition  In fact, a “balancing act” is what managers do and what management is all about  Management is a process of planning, organizing, directing, and controlling organizational behaviors to accomplish a mission through the division of labor  This definition incorporates several important ideas: – Management is a process-an ongoing flow of activities- rather than something that can be accomplished once and for all – Managerial activities affect the behaviors of an organization’s members and the organization itself – To accomplish a firm’s mission requires organization – The process of management can be divided into the four functions of planning, organizing, directing, and controlling

7. 7 Planning  Planning is a forward-looking process of deciding what to do  In planning, managers set three types of goals and objectives that are linked together: – Strategic goals – Functional or divisional objectives – Operational objectives  Goals and objectives are performance targets that the members of an organization seek to fulfill by working together  Setting goals and objectives helps managers plan and implement a sequence of actions that will lead to their attainment  Goals and objectives also serve as benchmarks of the success or failure of organizational behavior

8. 8 Organizing  As part of the organizing function managers develop a structure of interrelated tasks and allocate people and resources within this structure  Grouping tasks and the people who perform them into organizational units is another step in the organizing process  Types of organizational units include: – Departments: includes people who perform the same type of work – Divisions: includes people who do the company’s work in the same geographic territory, who work with similar kinds of clients, or who make or provide the same type of goods and services

9. 9 Directing and Controlling  The directing function encourages member effort and guide it toward the attainment of organizational goals and objectives  Directing: – Is partly a process of communicating goals and objectives to members – Is learning employees’ desires and interests and ensuring they are satisfied in return for successful goal-oriented performance – May require use of personal expertise and charisma to inspire employees to overcome obstacles  Controlling means evaluating the performance of the organization and its units to see whether the firm is progressing in the desired direction  If the evaluation reveals a significant difference between goals and actual performance, the control process enters a phase of correction in which managers return to the planning stage and the process of management continues anew

10. 10 What Managers Do  Managers are the people who plan, organize, direct, and control so as to manage organizations and organizational units  Managers: – Establish the directions to be pursued – Allocate people and resources among tasks – Supervise individual, group, and organizational performance – Assess progress toward goals and objectives  To succeed in these functions, managers perform specific jobs, use a variety of skills, and fill particular roles

11. 11 Managerial Jobs  Although all managers are responsible for fulfilling the same four functions, not all of them perform exactly the same jobs  Most organizations have three types of managers: – Top managers: responsible for managing the entire organization; their job consists mainly of performing the planning activities needed to develop the organization’s mission and strategic goals – Middle managers: usually responsible for managing the performance of a particular organizational unit and for implementing top managers’ strategic plans – Supervisory managers: are charged with overseeing the nonsupervisory employees who perform the organization’s basic work; they spend the greatest amount of time actually directing employees of all three of the managerial types

12. 12 Managerial Skills  The skills managers use to succeed in their jobs are largely determined by the combination of planning,organizing, directing, and controlling functions they must perform  Conceptual skills: include the ability to perceive an organization or unit as a whole, to understand how its labor is divided into tasks and reintegrated by the pursuit of common goals and objectives, to recognize important relationships between the organization or unit and its environment, involve the manager’s ability to think, and are most closely associated with planning and organizing  Human skills: include the ability to work effectively as a group member and build cooperation among the members of an organization or unit; all managers put these skills to use  Technical skills: involve understanding the specific knowledge, procedures, and tools required to make the goods or services provided by an organization or unit; more critical to supervisory managers overseeing employees

13. 13 Managerial Roles  Managerial roles vary from one kind of manager to another  Interpersonal roles: managers create and maintain interpersonal relationships to ensure the well-being of their organizations or units – Figurehead role – Leader role – Liaison role  Informational roles: managers have unique access to internal and external information networks – Monitor role – Disseminator role – Spokesperson role  Decisional roles: managers determine the direction to be taken by their organizations or units – Entrepreneur role – Disturbance handler role – Allocator role – Negotiator role

14. 14 Differences Among Managers  The roles of liaison, spokesperson, and resource allocator are the most important in the jobs of top managers  For middle managers, leader, liaison, disturbance handler, and resource allocator roles are the most important  For supervisory managers, the leader role is the most important

15. 15 The Nature of Managerial Work  To further analyze the classification of managerial roles, Henry Mintzberg observed a group of top managers at work for several weeks  Based on his observations, Mintzberg concluded that manager’s roles often require them to work in short bursts rather than in long, uninterrupted sessions

16. 16 A Framework of Management Perspectives  The definition of management and manager introduced in this chapter are products of the North American culture and differ from the definitions used in other regions of the world  Modern management practices did not begin to develop until the Industrial Revolution of the 1700s and 1800s

17. 17 A Framework of Management Perspectives: 1890-1940  Among the first principles to be widely read were those of the scientific management perspective which reflected the idea that through proper management an organization could achieve profitability and survive over the long term in the competitive world of business – Frederick W. Taylor (1856-1915) – Frank and Lillian Gilbreth (1868-1924) – Henry Gantt (1861-1919) – Harrington Emerson (1853-1931)

18. 18 A Framework of Management Perspectives: 1900-1950  The administrative principles perspective emphasized increasing the efficiency of administrative procedures – Henri Fayol (1841-1925) – Max Weber (1864-1920) – James Mooney (1884-1957) – Lyndall Urwick (1891-1983) – Mary Parker Follett (1868-1933)

19. 19 A Framework of Management Perspectives: 1930-1970  The human relations perspective directed attention toward increasing employees growth, development, and satisfaction – Douglas McGregor (1906-1964) – Abraham Maslow – Frederick Herzberg

20. 20 A Framework of Management Perspectives: 1960-Present  The open systems perspective indicates that organizations whose subsystems can cope with the surrounding environment can continue to do business while those organizations whose subsystems cannot cope will not survive – Daniel Katz and Robert L. Kahn – Fred Emery and Eric Trist – Paul Lawrence, Robert Duncan, and Jay Galbraith

21. 21 A Contingency Framework  The contingency approach advocates that no single management perspective tells the whole story about management and managers and that no single theory, procedure, or set of rules is applicable to every situation