Copyright ©2011 Pearson Education Chapter Managers and Management Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Learning Outcomes Tell who managers are and where they work Define management Describe what managers do Explain why it’s important to study management Describe the factors that are reshaping and redefining management Copyright ©2011 Pearson Education

Who Are Managers? Where Do They Work? Organization A deliberate arrangement of people brought together to accomplish some specific purpose. Such us uni, football teams. Common Characteristics of Organizations Distinct purpose expressed in a goal or a set of goals People working together to achieve the orgs goal through a set of decisions and work activities. A deliberate systematic structure that define and limits the behavior of its members Managers work in organizations. We define organizations as A deliberate arrangement of people brought together to accomplish some are deliberate arrangements of people to accomplish a specific purpose. Examples include your college or university, the United Way, your neighborhood convenience store, the Dallas Cowboys football team, fraternities and sororities, the Cleveland Clinic and Nokia. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education

How Are Managers Different from Nonmanagerial Employees? People who work directly on a job or task and have no responsibility for overseeing the work of others. Examples, associates, team members Managers Individuals in organizations who direct and oversee the activities of others. Managers do work directly on tasks such as servicing some costumers. For simplicities sake, we can divide organization members into two categories: nonmanagerial employees and managers. Nonmanagerial employees do not oversee the work of others. Managers direct and oversee the activity of the people in the organization. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education

What Titles Do Managers Have? Top Managers Responsible for making decisions about the direction of the organization and establishing policies and philosophies that effect all organizational members . Examples; President, Chief Executive Officer, Vice-President Middle Managers ( btw the lowest and top levels) Manage the activities of other managers and non managerial employees and translating the goals set by top managers to specific details that lower managers can understand. Examples; District Manager, Division Manager First-line Managers Responsible for directing the day to day activities of nonmanagerial employees Examples; Supervisor, Team Leader Managers are usually classified as top, middle or first-line. But be aware that they can have a variety of titles. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education What Is Management? Management The process of getting things done effectively and efficiently, with and through people A process refers to a set of ongoing and interrelated activities. Efficiency “Doing things right”, and getting the most output from the least amount of input( minimizing the coast). Management is a process of getting things done, effectively and efficiently, with through people. A process is a set of ongoing and interrelated activities. In our definition it refers to the primary activities or functions managers perform. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Effectiveness doing those work tasks that help the org to reach its goals. Efficiency is concerned with the means of getting things done while effectiveness is concerned with the ends. Its easier to be effective if you ignore efficiency. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education What Do Managers Do? Management researchers have developed three approaches to describe what managers do: functions , rules and skills. Henri Fayol, a French industrialist in the early twentieth century, proposed that all managers perform five management activities: plan, organize, command, coordinate and control. Today these management functions have been condensed to four. Copyright ©2011 Pearson Education

Four Management Functions ( Henri Fayol) Planning Defining the organizational purpose and ways to achieve it ex, defining goals, developing plans.etc Organizing Arranging and structuring work to accomplish organizational goals ex who reports to whom and dividing work on employees. Leading Directing the work activities of others ex resolving conflicts, motivating employees, chosen the most effective channel to communicate Controlling Monitoring, comparing, and correcting work performance ex evaluation Planning includes defining goals, establishing strategy, and developing plans to coordinate activities. Organizing includes determining what tasks need to be done and by whom. Leading includes motivating, directing the activities of others, and resolving conflicts. Controlling involves monitoring, comparing, and correcting work performance. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education

What Roles Do Managers Play? Henry Mintzberg observed that a manager’s job can be described by ten roles performed by managers in three general categories managerial roles : managerial actions or behaviors expected of a manager. In the 1960s, Henry Mintzberg did an empirical study of chief executives and discovered that managers were engaged in a number of varied, un-patterned, and short-duration activities. He defined management by categorizing what managers do based on the managerial roles they perform at work. Copyright ©2011 Pearson Education

What Roles Do Managers Play? Interpersonal Roles( ones that involve subordinates and persons outside the org) and other duties that are ceremonial & symbolic in nature) Figurehead, Leader, and Liaison Informational Roles ( collecting , receiving and analyzing info) Monitor, Disseminator and Spokesperson In the 1960s, Henry Mintzberg did an empirical study of chief executives and discovered that managers were engaged in a number of varied, un-patterned, and short-duration activities. He defined management by categorizing what managers do based on the managerial roles they perform at work. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Decisional roles ( making decision and look into choices ) Entrepreneur, Disturbance Handler, Resource Allocator and Negotiator Copyright ©2011 Pearson Education

What Skills Do Managers Need? Robert Katz and others describe four critical skills in managing Conceptual Skills Used to analyze and diagnose complex situations, help managers see how things fit together and facilitate making good decision. Interpersonal Skills working well with other people both individually and groups , so managers must have good skills to communicate, motivate, mentor and delegate. Technical Skills Based on specialized knowledge required for work (lower and middle managers knowing of the job they are performing, top managers knowing of the industry and a general understanding of the org’s process and products. Political Skills Used to build a power base and establish connections. Another way to describing what managers do is by looking at the skills they need in managing. Managers must possess four critical skills in managing. Conceptual skills, Interpersonal Skills, Technical Skills and Political Skills. Copyright ©2011 Pearson Education

Is The Manager’s Job Universal? The previous discussion describe management as a generic activity. In reality, a manager’s job varies with along several dimensions Level in the Organization Top level managers do more planning and less direct oversees of others than supervisors. All managers make decisions, planning…..but the amount they delegate to each of them is different. Profit vs. Nonprofit While the importance of managerial roles varies depending on a manager’s position within an organization, the differences are of degree and emphasis, not of function. As managers move up the organization, for example, they spend less time supervising and more time planning. All managers, however, make decisions and plan, lead, organize, and control. But the amount of time they give to each activity is not necessarily constant. In addition, the content of the managerial activities changes with the manager’s level. When measuring managerial performance in business, profit (the bottom line) is an unambiguous criterion. Even though not-for-profit organizations need money to survive, however, their managers do not live and die to maximize profits. Given this difference, managers working in profit and not-for-profit organizations must perform similar functions: planning, organizing, leading, and controlling. Copyright ©2011 Pearson Education

Is The Manager’s Job Universal? Manager’s job are the same in both profit and non profit org. Profit organizations measure their performance by the amount of profit they achieve There are no specific measurement to measure the success of non-profit org . The financial side is still important in non- profit org. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall.

Is the Manager’s Job Universal? (cont’d) Size of the Organization Small businesses: have fewer than 500 employees and which doesn’t often engage in any new innovative practices … managers n this kind of org do the role of spokesperson and spend most of their time in doing outwardly directed action ex meeting with costumers, arranging financing with bankers..etc Large business is the contrast of the above. National Borders These concepts work best in English-speaking countries and may need to be modified in other global environments Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Why Study Management? All of us have a vested interest in improving the way organizations are managed Organizations that are well managed find ways to prosper even in challenging economic times After graduation most students become managers or are managed Let’s look at some of the reasons why you may want to understand more about management. Because we interact with others every day of our lives, an understanding of management offers insights into many organizational aspects. Many once thriving organizations no longer exist. You can distinguish between by good and poor management by studying management. Copyright ©2011 Pearson Education

What Can Students of Management Learn From Other Courses? Anthropology The study of social societies which helps us learn about humans and their activities Economics Provides us with an understanding of the changing economy and competition in a global context It’s important to study areas outside the business curriculum because other disciplines including humanities and social sciences affect management practice. Copyright ©2011 Pearson Education

What Can Students of Management Learn From Other Courses? (cont’d) Philosophy Inquires into the nature of things, particularly values and ethics Political Science The study of behavior and groups within a political environment Psychology The science that seeks to measure, explain and sometimes change the behavior of humans Sociology The study of people in relationship to their fellow human beings Copyright ©2011 Pearson Education

What Factors Are Reshaping and Redefining Management? Welcome to the new world of management! Today managers must deal with Changing workplaces Ethical and trust issues Global economic uncertainties Changing technologies Managers everywhere are likely to have to manage in changing circumstances and the fact that management is changing. Copyright ©2011 Pearson Education

Why Are Customers Important to the Manager’s Job? Without customers most organizations would cease to exist Today we’re discovering that employee attitudes and behaviors play a big part in customer satisfaction Managers must create a customer responsive where employees are friendly, knowledgeable, responsive to customer needs Copyright ©2011 Pearson Education

Why Is Innovation Important to the Manager’s Job? “Nothing is more risky than not innovating” Innovation isn’t just important for high technology companies but essential in all types of organizations Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education History Module A Brief History of Management’s Roots Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Early Management Management has been practiced a long time. Organized endeavors directed by people responsible for planning, organizing, leading and controlling have existed for thousands of years Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Classical Approaches Scientific Management Frederick W. Taylor described scientific management as a method of scientifically finding the “one best way to do a job” focus on individual producation. Copyright ©2011 Pearson Education

Other Classic Approaches General Administrative Theory focused on org practices and what constituted good management Max Weber (pictured) described the bureaucracy as an ideal rational form of organization Henri Fayol identified five management functions and 14 management principles Copyright ©2011 Pearson Education

Behavioral Approaches( important of ppl to an org’s success Early management writers included Robert Owen, was concerned about deplorable bad working conditions, proposed idealistic workplace Hugo Munsterberg, suggested using psychological test for employee selection and studies of human behavior for employee motivation Mary Parker Follett recognized that organizations could be viewed from both individual and group behavior( group ethic rather than individlisum Copyright ©2011 Pearson Education

The Hawthorne Studies( most vip contribution to the behavioral appr Conducted at the Western Electric Company Works these studies: Provided new insights into individual and group behavior in the behavior of people at work. Concluded that group pressures can significantly impact individual productivity and ppl behave differently whn they are being observed Copyright ©2011 Pearson Education

Quantitative Approaches Used quantitative techniques to improve decision making Evolved from mathematical and statistical solutions developed for military problems during World War II W. Edwards Deming and Joseph M. Duran ‘s ideas became the basis for total quality management (TQM) which is continual improvement and responding to costumers needs and expectations Copyright ©2011 Pearson Education

Contemporary Approaches Focused on managers’ concerns inside the organization Chester Barnard wrote in his 1938 book The Functions of the Executive that an organization functioned as a cooperative system Fred Feildler first popularized the contingency approach (or situational approach) which says that organizations, employees, and situations are different and require different ways of managing Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education