Chapter 1 Managers and Managing

Learning Objectives Define management and explain the difference between efficiency and effectiveness. Identify the four managerial functions of planning, organizing, leading and controlling and the types of managerial activities associated with each function. Differentiate among the levels of management and differences in managerial responsibilities and skills among these levels. Identify the ten roles managers perform. Define competitive advantage and identify approaches organizations use to build competitive advantage.

Definition of Management Definition of Management The activities of Planning, Organizing, Leading, and Controlling organizational resources. to achieve organizational goals both efficiently and effectively.

Definition of Management Definition of Management Two important ideas in this definition The process of how organizational goals are achieved - planning, organizing, leading, controlling The results of management – Organizational Performance achieving organization’s stated purpose efficiently and effectively

Definition of Management Definition of Management The results of Management – Organizational Performance Efficiency doing the task correctly while minimizing resource costs (Money, people, equipment)

Definition of Management Definition of Management The results of Management – Organizational Performance Effectiveness - selecting the right goals and achieving them

Managerial Functions

Managerial Functions Outcome Strategy Planning Managerial Functions Planning Identify and select organizational goals Decide actions which are needed to achieve goals Decide how to allocate or obtain organizational resources Outcome Strategy

Managerial Functions Outcome Organizational Structure Organizing Managerial Functions Organizing Assigning tasks to be done and working relationships who is to do them how tasks are grouped where decisions are made Outcome Organizational Structure

Managerial Functions Leading Motivate others Managerial Functions Leading Motivate others Direct activities of others Select effective communication channels Resolve conflicts

Managerial Functions Controlling Compare actual performance with goals Managerial Functions Controlling Compare actual performance with goals Correct problems or deviations to get organization back on track

Managerial Functions

Ten Roles of Managers – Mintzberg (1971) Ten Roles of Managers – Mintzberg (1971) Decisional Interpersonal Informational Entrepreneur Disturbance handler Resource allocator Negotiator Figurehead Leader Liaison Monitor Disseminator Spokesperson

Ten Roles of Managers - Mintzberg Ten Roles of Managers - Mintzberg Decisional Entrepreneur – initiate new ideas; Disturbance handler – Taking action during disputes or crises, resolving conflicts Resource allocator – Decide who gets resources Negotiator – Represent organization at negotiations

Ten Roles of Managers - Mintzberg Ten Roles of Managers - Mintzberg Interpersonal Figurehead – symbolic head involving ceremonial activities Leader – direct and motivate employees; virtually all activities involving employees Liaison – contacts with others outside of formal chain of command

Ten Roles of Managers - Mintzberg Ten Roles of Managers - Mintzberg Informational Monitor – seek and receive information (research) Disseminator – communicate information to members of the organization Spokesperson – communicates to people outside the organization; represent views of unit to others within organization

Ten Roles of Managers - Mintzberg Ten Roles of Managers - Mintzberg Considering the roles of managers, Which of the following persons would you consider to be managers? Role Figurehead Leader Liaison Monitor Disseminator Spokesperson Entreprenuer Disturbance Handler Resource Allocator Negotiator

Managerial Skills

Why Worry about Management? Why Worry about Management? Managers use resources to build Competitive Advantage