Principles of Management BBA 121 Principles of Management S. Chan Head, Department of Business Administration http://home.chuhai.hk/~charmaine/ charmaine@chuhai.edu.hk

The Management Process Today Lecture 1 The Management Process Today

What is Management? Management The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently

What is Management? Organizations Collections of people who work together and coordinate their actions to achieve a wide variety of goals

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

Achieving High Performance Organizational Performance A measure of how efficiently and effectively managers use organizational resources to satisfy customers and achieve organizational goals

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.

Efficiency, Effectiveness, and Performance in an Organization

Four Tasks of Management

Planning Planning Strategy Process of identifying and selecting appropriate goals and courses of action Strategy cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals

Steps in the Planning Process Deciding which goals to pursue Deciding what strategies to adopt to attain those goals Deciding how to allocate organizational resources

Organizing Organizing Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals

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

Leading Leading Articulating a clear vision and energizing and enabling organizational members so they understand the part they play in attaining organizational goals

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

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

Levels of Management First line managers Middle managers Top 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 Top managers establish organizational goals, decide how departments should interact, and monitor the performance of middle managers

Levels of Managers

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.

Question? Which management skill is the ability to understand, alter, lead, and control the behavior of other individuals and groups? Conceptual Human Technical Technological The correct answer is “B” – human. See next slide.

Managerial Skills Conceptual skills Human skills Technical 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.

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 The answer is C. Competencies are the Specific set of skills, abilities, and experiences that allows one manager to perform at a higher level than another manager in a particular setting. See p. 31

Technical Skills Core competency Specific set of skills, abilities, and experiences that allows one organization to outperform its competitors

Types and Levels of Managers

Challenges for Management in a Global Environment Rise of Global Organizations. Building a Competitive Advantage Maintaining Ethical and Socially Responsible Standards Managing a Diverse Workforce Utilizing IT and E-Commerce