Spring 2007Introduction to Organizations and Management1

Spring 2007Introduction to Organizations and Management2 What is an Organization ? “A deliberate arrangement of people to accomplish some specific purpose” “A social entity that is a goal directed, deliberately structured activity system within an identifiable boundary” “The planned coordination of the activities of a number of people for the achievement of some common, explicit purpose or goal, through division of labor and function, and through a hierarchy of authority and responsibility”

Spring 2007Introduction to Organizations and Management3 Distinct Purpose People Deliberate Structure Common Elements People Goals Inside boundaries Within an environment Structured

Spring 2007Introduction to Organizations and Management4 Importance of Organizations Why do we study organizations? Organizations are essential to all human social functioning, so we want to......explain their birth, growth, adaptation, and death People are essential, but organizations exist independently of particular people Organization = a legal person Written records, memory The social organization or informal organization Elements of formal organization are present, but it is not rationally planned and coordinated

Spring 2007Introduction to Organizations and Management5 Who Owns the Organization? For-profit organizations Examples: Federal Express, Google, Joe’s Bait Shop Not-for-profits Government – the voters Foundations, schools, hospitals, helping organizations - trustees Stakeholders

Spring 2007Introduction to Organizations and Management6 For-Profit Organizations Ownership can vary: Single proprietor Partnership Private corporations Public corporations Why does it matter? Legalities Organization life and succession Stakeholders Single IndividualNumerous Shareholders

Spring 2007Introduction to Organizations and Management7 Efficiency vs. Effectiveness Defined: Efficiency is making the best use of resources Effectiveness is achieving the goal Questions…. Can you be efficient without being effective? Can you be effective without being efficient?

Spring 2007Introduction to Organizations and Management8 Systems Theory and Organization Effectiveness How well the organization manages the interaction between internal and external environments Three basic principles: Organizations must have inputs to survive (or face entropy) One system’s output is another system’s input, and vice versa Organizations must respond to feedback (remain open, not closed)

Spring 2007Introduction to Organizations and Management9 Systems Theory 5 related components: Input Transformation process Output External environment Feedback Synergy Equilibrium

Spring 2007Introduction to Organizations and Management10 Environment Output Input Transformation Process Feedback Systems Model

Spring 2007Introduction to Organizations and Management11 Every System is Made up of Subsystems One view: Boundary spanning Production Maintenance Adaptation Management Another view Technical Structural Psychosocial Managerial

Spring 2007Introduction to Organizations and Management12 Systems Theory and Organization Effectiveness How well the organization manages the interaction between internal and external environments Three basic principles: 1.Organizations must have inputs to survive (or face entropy) 2.One system’s output is another system’s input, and vice versa 3.Organizations must respond to feedback (remain open, not closed)

Spring 2007Introduction to Organizations and Management13 Contingency Theory There is no “One Best Way” to manage organizations and people Every situation has different requirements

Spring 2007Introduction to Organizations and Management14 What is Management? A universal activity that uses resources to attain organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources Getting work done through other people A manager integrates and coordinates the work of other people A manager: “Decides the purpose and mission of the organization” “Makes work productive“ “Manages social impacts and responsibilities ”

Spring 2007Introduction to Organizations and Management15 Perspectives on Management Management is a process Functions and activities performed by managers Management is a discipline An accumulated body of knowledge that can be learned Management is a human activity Performed by people Management is a career A progression of positions held by an individual

Spring 2007Introduction to Organizations and Management16 A Management Paradox A manager oversees the work of others; she does not attend to the details herself At the same time, the manager must be concerned with the details, to be sure they are covered.

Spring 2007Introduction to Organizations and Management17 Traditional Management Functions Management Functions Planning Leading OrganizingControlling

Spring 2007Introduction to Organizations and Management18 The Management Process Planning Select goals and ways to attain them Planning Select goals and ways to attain them Organizing Assign responsibility for task accomplishment Organizing Assign responsibility for task accomplishment Leading Use influence to motivate employees Leading Use influence to motivate employees Controlling Monitor activities and make corrections Controlling Monitor activities and make corrections

Spring 2007Introduction to Organizations and Management19 Who Are The Managers? Department of Labor: 9.56% of workforce First-line supervisors: 4.89% (avg. salary $43,090) Managers: 4.68% (avg. salary $84,258) Census Bureau: 34.14% of employed population in managerial, professional, and related occupations Male: 49.68% Female: 50.31% Why ? Lack of consistent definitions People may have multiple duties

Spring 2007Introduction to Organizations and Management ’s Highest Paid CEOs Source:

Spring 2007Introduction to Organizations and Management21 Levels of Management TitleWhat They DoTypical Titles First-Line Manager Directly supervises the work of others Supervisor; Office Manager; Foreman; Team Leader Middle ManagerSupervises the work of other managers Department Manager; Plant Manager; Director Top Management or Senior Management Responsible for performance of entire organization Chief Executive Officer (CEO); Chief Financial Officer (CFO); Chief Information Officer (CIO); President; Vice President

Spring 2007Introduction to Organizations and Management22 Management Competencies Conceptual HumanTechnical Top Managers Middle Managers First-line Managers

Spring 2007Introduction to Organizations and Management23 Typical Responsibilities: Top Management Set organization goals Define strategies Monitor & interpret external environment Make decisions that impact entire organization Communicate a shared vision Shape corporate culture Nurture entrepreneurial spirit Engage the unique skills and knowledge of employees

Spring 2007Introduction to Organizations and Management24 Middle & First-Line Management Middle managers: Implement strategies and policies defined by top management Monitor operations for short-term outcomes Establish and maintain good relationships with peers Encourage teamwork and resolve conflicts First-line managers / supervisors Apply rules and procedures to achieve efficient production on a day-to-day basis Provide technical assistance to subordinates Motivate subordinates

Spring 2007Introduction to Organizations and Management25 Management Functions by Level

Spring 2007Introduction to Organizations and Management26 Managers in Two Dimensions Vertical Management level Horizontal Function within the organization Line vs. staff Common to all: fast-paced, fragmented

Spring 2007Introduction to Organizations and Management27 Mintzberg’s Management Roles Who is a Manager? Entrepreneur Disturbance handler Resource allocator Negotiator Decisional Roles Monitor Disseminator Spokesperson Informational Roles Figurehead Leader Liaison Interpersonal Roles