1. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The Management Process Today Chapter One

2. 1-2 Learning Objectives LO1-1 Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals LO1-2 Distinguish among planning, organizing, leading, and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one can affect organizational performance LO1-3 Differentiate among three levels of management, and understand the tasks and responsibilities of managers at different levels in the organizational hierarchy

3. 1-3 Learning Objectives LO1-4 Distinguish between three kinds of managerial skill, and explain why managers are divided into different departments LO1-5 Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced information technology (IT) LO1-6 Discuss the principal challenges managers face in today’s increasingly competitive global environment

4. 1-4 What is Management?  Management  The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently

5. 1-5 What is Management?  Organizations  Collections of people who work together and coordinate their actions to achieve a wide variety of goals

6. 1-6 What is Management?  Managers  The people responsible for supervising the use of an organization’s resources to meet its goals  Resources include people, skills, know-how, machinery, raw materials, computers and IT, and financial capital

7. 1-7 Achieving High Performance  Organizational Performance  A measure of how efficiently and effectively managers use organizational resources to satisfy customers and achieve organizational goals

8. 1-8 Efficiency, Effectiveness, and Performance in an Organization Figure 1.1

9. 1-9 Organizational Performance  Efficiency  A measure of how well or productively resources are used to achieve a goal  Effectiveness  A measure of the appropriateness of the goals an organization is pursuing and the degree to which the organization achieves those goals.

10. 1-10 Why study management?  The more effective and efficient use an organization can make of resources, the greater the relative well-being of people  Almost all of us encounter managers because most people have jobs and bosses  Understanding management is one important path toward obtaining a satisfying career

11. 1-11 Four Tasks of Management Figure 1.2

12. 1-12 Planning  Planning  Process of identifying and selecting appropriate goals and courses of action

13. 1-13 Steps in the Planning Process 1. Deciding which goals to pursue 2. Deciding what strategies to adopt to attain those goals 3. Deciding how to allocate organizational resources

14. 1-14 Planning  Strategy  cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals

15. 1-15 Organizing  Organizing  Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals

16. 1-16 Organizing  Organizational Structure  A formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals

17. 1-17 Leading  Leading  Articulating a clear vision and energizing and enabling organizational members so they understand the part they play in attaining organizational goals

18. 1-18 Controlling  Controlling  Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance  The outcome of the control process is the ability to measure performance accurately and regulate efficiency and effectiveness

19. 1-19 Question? What is a group of people who work together and possess similar skills or use the same knowledge, tools, or techniques? A. Organization B. Department C. Team D. Presentation Group

20. 1-20 Levels and Skills of Managers  Department  A group of people who work together and possess similar skills or use the same knowledge, tools, or techniques to perform their jobs

21. 1-21 Levels of Management  First line managers  Responsible for the daily supervision of non- managerial employees  Middle managers  Supervise first-line managers and are responsible for finding the best way to use resources to achieve organizational goals

22. 1-22 Levels of Management  Top managers  establish organizational goals, decide how departments should interact, and monitor the performance of middle managers

23. 1-23 Levels of Managers Figure 1.3

24. 1-24 Relative Amount of Time That Managers Spend on the Four Managerial Tasks Figure 1.4

25. 1-25 Levels of Managers  Top-management team  A group composed of the CEO, the COO, and the vice presidents of the most important departments of a company.

26. 1-26 Question? Which management skill is the ability to understand, alter, lead, and control the behavior of other individuals and groups? A. Conceptual B. Human C. Technical D. Technological

27. 1-27 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  The job-specific knowledge and techniques required to perform an organizational role.

28. 1-28 Question? What is the specific set of abilities that allows one manager to perform at a higher level than another manager? A. Skill-sets B. SKAs C. Competencies D. Skill traits

29. 1-29 Technical Skills  Core competency  Specific set of skills, abilities, and experiences that allows one organization to outperform its competitors

30. 1-30 Types and Levels of Managers Figure 1.5

31. 1-31 Recent Changes in Management Practices  Restructuring  downsizing an organization by eliminating the jobs of large numbers of top, middle, or first-line managers and non-managerial employees

32. 1-32 Recent Changes in Management Practices  Outsourcing  contracting with another company, usually abroad, to have it perform an activity the organization previously performed itself  Increases efficiency because it lowers operating costs, freeing up money and resources that can be used in more effective ways

33. 1-33 Empowerment and Self-Managed Teams  Empowerment  Expansion of employees’ knowledge, tasks, and decision-making responsibilities

34. 1-34 Empowerment and Self-Managed Teams  Self-managed team  A group of employees who assume responsibility for organizing, controlling, and supervising their own activities and monitoring the quality of the goods and services they provide.

35. 1-35 Challenges for Management in a Global Environment Rise of Global Organizations.Building a Competitive AdvantageMaintaining Ethical and Socially Responsible StandardsManaging a Diverse WorkforceUtilizing IT and E-Commerce

36. 1-36 Challenges for Management in a Global Environment  Global organizations  organizations that operate and compete in more than one country

37. 1-37 Building Competitive Advantage  Competitive advantage  Ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than they do

38. 1-38 Building Blocks of Competitive Advantage Figure 1.6

39. 1-39 Building a Competitive Advantage  Innovation  process of creating new or improved goods and services or developing better ways to produce or provide them

40. 1-40 Video: Fed Ex  How do the managers at the FedEx Super-hub use planning, organizing, leading and controlling to sort one million nightly boxes and letters?