1-2 Learning Objectives Exams will consist of objective questions (multiple choice) involving knowledge and application of course concepts and short answer questions based on the chapter learning objectives ≈ The people who work in an organization are considered: A. raw materials B. machinery C. resources D. financial capital E. none of the above (LO 1, Knowledge, easy) 4.Distinguish between three kinds of managerial skill, and explain why managers are divided into different departments to perform their tasks more efficiently and effectively.
1-3 What is Management? Managers ≈ The people responsible for supervising the use of an organization’s resources to meet its goals
1-4 What is Management? Management ≈ The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently
1-5 Figure 1.1 Efficiency and Effectiveness
1-6 Four Functions of Management Figure 1.2
1-7 Steps in the Planning Process 1.Deciding which goals the organization will pursue 2.Deciding what courses of action to adopt to attain those goals 3.Deciding how to allocate organizational resources
1-8 Organizing Involves grouping people into departments according to the kinds of job-specific tasks they perform Managers lay out lines of authority and responsibility Decide how to coordinate organizational resources
1-9 Organizing Organizational structure ≈ A formal system of task and reporting relationships that coordinates and motivates members so that they work together to achieve organizational goals
1-10 Leading Leadership involves using power, personality, and influence, persuasion, and communication skills It revolves around encouraging all employees to perform at a high level Outcome of leadership is highly motivated and committed workforce
1-11 Controlling The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness Managers must decide which goals to measure
1-12 Decisional Roles 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.
1-13 Interpersonal Roles 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.
1-14 Informational Roles 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.
1-15 Levels of Management First-line managers ≈ responsible for the daily supervision of the nonmanagerial employees Middle managers ≈ responsible for finding the best way to organize human and other resources to achieve organizational goals
1-16 Levels of Management Top managers ≈ responsible for the performance of all departments ≈ establish organizational goals ≈ decide how different departments should interact ≈ monitor how well middle managers utilize resources to achieve goals
1-17 Relative Amount of Time That Managers Spend on the Four Managerial Functions Figure 1.4
1-18 Managerial Skills Conceptual skills ≈ The ability to analyze and diagnose a situation and distinguish between cause and effect. Human skills ≈ The ability to understand, alter, lead, and control the behavior of other individuals and groups. Technical skills ≈ Job-specific skills required to perform a particular type of work or occupation at a high level.
1-19 “Why CEOs Fail” Bad Execution ≈ Not getting things done ≈ Being indecisive ≈ Not delivering on commitments Failure to put the right people in the right jobs Failure to fix people problems in time ≈ Jack Welch (former CEO of GE): “We spend all our time on people. The day we screw up the people thing, this company is over.” Source: Fortune, 6/21/99 Note value of business periodicals for lessons learned re: applications of MNGT principles, longevity of certain lessons
1-20 Core Competency Core competency ≈ Specific set of departmental skills, abilities, knowledge and experience that allows one organization to outperform its competitors ≈ Skills for a competitive advantage
1-21 Restructuring Restructuring ≈ Involves simplifying, shrinking, or downsizing an organization’s operations to lower operating costs Outsourcing ≈ Contracting with another company, usually in a low cost country abroad, to perform a work activity the company previously performed itself
1-22 Empowerment Empowerment ≈ Involves giving employees more authority and responsibility over the way they perform their work activities
1-23 Building Blocks of Competitive Advantage Figure 1.6
1-24 Competitive Advantage “In the long run, the only sustainable source of competitive advantage is your organization’s ability to learn faster than its competition.” -- Peter Senge, The Fifth Discipline Handbook Organizations must have managers who are ≈ Acquiring information (from sources such as the Wall Street Journal, Business Week, Fortune, and trade publications [such as Supermarket News]) E.g., “Flu Scare Provides Retail Lessons, Opportunities,” 5/11/09, available via Rice Library online database LexisNexis Academic. ≈ Digesting implications ≈ Sharing w/ colleagues ≈ Identifying opportunities/threats (planning)
1-25 My Best Manager Related to “Building Management Skills: Thinking About Managers and Management,” pp Make a list of the attributes that describe the best manager you ever worked for. (If you have trouble identifying an actual manager, make a list of attributes you would like the manager in your next job to have.) Form a group (3-4 persons) and share your lists. ≈ Create one list that combines all the unique attributes of the ‘best’ managers represented in your group. ≈ Check those that were reported by two or more members.