1. Mr. Sherpinsky Business Management Class Council Rock School District
Sherpinsky-Business Management NOW
What is Management?
Mr. Sherpinsky
Business Management Class
Council Rock School District

2. Learning Outcomes Define management
Sherpinsky-Business Management NOW
Learning Outcomes
Define management
Identify and explain the levels of management
Explain the management process
Understand the different perspectives of scientific management and the human relations movement
Explain in this introductory slide that to understand management, first we need to understand the basics of management, which is the purpose of this chapter.

3. Group Activity Groups of 4 Discuss: Elect a spokesperson
Sherpinsky-Business Management NOW
Group Activity
Groups of 4
Discuss:
5 Conceptual Skills used over the last week
5 Technical Skills used over the last week
5 Human Relations Skills used over the last week
Elect a spokesperson
What qualities did the best person/boss you ever worked for have? How about the worse?

4. The World of Work Taco Barn, Inc. Tony Davis Promotions Questions:
1-Do you think Tony is ready for this promotion?
2-The team at Tony’s location is performing well. Is there anything else that he needs to change?
3- What skills do you think Tony will need to succeed in his new role? (Page 6)
4- What should Tony do in his first week as manager?

5. The Business World Today
Constant change!
Technology
Society
Environment
Competition
Diversity

6. What is Management? Employees Equipment Money
Management: The process of deciding how best to use a business’s resources to produce good or provide services…
Organization’s Resources:
Employees
Equipment
Money

7. What is Management? Managers must: Make good decisions
Communicate well
Assign work (delegate)
Plan
Train and motivate people
Appraise employee job performance

8. The Management Pyramid

9. Levels of Management Senior management
Sherpinsky-Business Management NOW
Levels of Management
Senior management
Establishes the goal/objectives of the business
Decides how to use the company’s resources
Not involved in the day-to-day problems
Set the direction the company will follow
Board of Directors, CEO, COO, senior vice presidents

10. Levels of Management Middle management
Responsible for meeting the goals that senior management sets
Sets goals for specific areas of the business
Decides which employees in each area must do to meet goals
Department heads, district sales managers

11. Levels of Management Supervisory management
Make sure the day-to-day operations of the business run smoothly
Responsible for the people who physically produce the company's products or services
Forepersons, crew leaders, store managers
Also called “Line” managers

12. The Management Process
3 ways to examine how management works:
Tasks performed
Planning, organizing, staffing, leading, controlling
Roles played
Set of behaviors associated with a particular job
Interpersonal, information-based, decision-making
Skills needed
Conceptual, human relations, technical

13. Role Playing Players: Class Activity: Bob Jane Tom Paula Janice Sam
Amelia

14. Management Tasks Planning Organizing Staffing Leading Controlling
5 Major Tasks Performed:
Planning
Organizing
Staffing
Leading
Controlling

15. The Management Process
Planning
Decides company goals and the actions to meet them
CEO sets a goal of increasing sales by 10% in the next year by developing a new software program

16. The Management Process
Organizing
Groups related activities together and assigns employees to perform them
A manager sets up a team of employees to restock an aisle in a supermarket

17. The Management Process
Staffing
Decides how many and what kind of people a business needs to meet its goals and then recruits, selects, and trains the right people
A restaurant manager interviews and trains servers

18. The Management Process
Leading
Provides guidance employees need to perform their tasks
Keeping the lines of communication open
Holding regular staff meetings
One of the most important tasks of supervisory or line managers

19. The Management Process
Controlling
Measures how the business performs to ensure that financial goals are being met
Analyzing accounting records
Make changes if financial standards not being met
One of the most important tasks of supervisory or line managers

20. Relative Amount of Emphasis Placed on Each Function of Management

21. Management Roles Managers have authority within organizations
Managers take on different roles to best use their authority
Interpersonal roles
Information-related roles
Decision-making roles

22. Mintzberg’s Managerial Roles

23. Mintzberg’s Management Roles
Interpersonal roles
A manager’s relationships with people
Figurehead: Performs symbolic duties
Leader: Establishes work atmosphere and motivates subordinates
Liaison: Develops and maintains webs of contacts outside of the organization

24. Mintzberg’s Management Roles
Informational-related roles
Provide knowledge, news or advice to employees
Monitor: Collect all types of information relevant and useful to organization
Disseminator: Gives other people the information they need to make decisions
Spokesperson: Transmits information to the outside world

25. Mintzberg’s Management Roles
Decisional-making roles
Makes changes in policies, resolves conflicts, decides how to best use resources
Entrepreneur: Initiates controlled change in the organization to adapt to changing environment
Disturbance Handler: Deal with the unexpected changes
Resource Allocator: Makes decisions on the use of organizational resources
Negotiator: Deals with other organizations and individuals

26. Mintzberg’s Findings Constant interruptions
Mintzberg found that most managers are often placed into situations beyond their control such as:
Constant interruptions
Jumping from subject to subject
Problem to Problem
Rarely giving undivided or uninterrupted attention to anything for any length of time

27. Challenge
Mintzberg identified one of the biggest challenges of management as the necessity to be in the moment, rather than focusing on long-term plans.
Challenge: How do you see this in your own life?
Business Connection: How can we as managers get better at balancing challenges? (Identify 3 ways to do so)

28. Management Skills
All levels of management require a combination of conceptual, human relations, and technical skills
Conceptual skills most important at senior management level
Technical skills most important at lower levels
Human relations skills important at all levels

29. Conceptual, Human Relations, and Technical Skills
Human Relation Skills
Need to work well together
Resolving conflicts
Forming partnerships
Conceptual Skills
Decision making planning, and organizing
Understanding how different businesses relate
Technical Skills
Abilities used to perform their job
Training people to use a new system

30. Conceptual, Human Relations, and Technical Skills

31. Management Skills Conceptual skills
Skills that help managers understand how different parts of a business relate to one another and to the business as a whole
Decision making, planning, and organizing

32. Management Skills Human relations skills
Skills managers need to understand and work well with people
Interviewing job applicants, forming partnerships with other businesses, resolving conflicts

33. Management Skills Technical skills
The specific abilities that people use to perform their jobs
Operating various software applications
Overseeing things like: designing a brochure, training people to use a new budgeting system

34. History of Management Knowledge is Power!
Where you’re going, where you’ve been!
Management is relatively a modern concept…

35. The Industrial Revolution
Began in the United States in 1860
Just before the Civil War
Period during which a country develops an industrial economy
Before the Industrial Revolution, economy based on agriculture
By the late 1800s, economy depended on industries such as oil, steel, railroads, and manufactured goods

36. Causes of the Industrial Revolution
Many people left their farms to work in factories
Professional managers supervised their work
Changes in technology, communication, and transportation
Telegraph and cable lines extended across the U.S. after the Civil War
Railroad lines, canals, roads, steamships

37. Captains of Industry
Cornelius Vanderbilt (steamships & railroads)
John D. Rockefeller (Oil)
Andrew Carnegie (steel)
James B. Duke (tobacco)
J. P. Morgan (banking)
Powerful businesspeople who created enormous business empires dominated and shaped the U.S. economy

38. Creation of Monopolies
The captains of industry often pursued profit and self-interest above all else
Drove competitors out of business
Created giant companies that maintained monopolies in their industries
Monopoly
Occurs when one party maintains total control over a type of industry
Trust: giant industrial monopoly
By 1879, Rockefeller controlled >90% of the country’s refining capacity and pipelines

39. The Break-Up of Trusts
People became worried about the concentration of wealth in the hands of a only a few
In response, the government began regulating business
Cornelius Vanderbilt

40. The Break-Up of Trusts The Interstate Commerce Act, 1887
The railroads gave rebates to some customers but not others
This act forced railroads to publish their rates and forbade them to change rates without notifying the public
Established the Interstate Commerce Commission (ICC) to supervise the railroads

41. The Break-Up of Trusts The Sherman Act, 1890
Made it illegal for companies to create monopolies
Intended to restore competition
Example
Standard Oil Company was broken into smaller companies so that other oil companies could compete with the former giant
John D. Rockefeller

42. New Challenges for Management
When most Americans worked on farms, sophisticated management techniques were not necessary
By the end of the 19th century, giant companies employed thousands of people and distributed products all over the country
Workers performed tasks that needed to be coordinated
These changes demanded new ideas about how to manage people working in large corporations

43. Frederick W. Taylor and Scientific Management
Father of Scientific Management
Wanted to find ways to motivate workers to work harder
To increase efficiency, he tried to figure “one best way” to perform a particular task
Used a stopwatch to determine which work method was most efficient
These time and motion studies lead to scientific management principles

44. Frederick W. Taylor and Scientific Management
Scientific management seeks to increase productivity and make work easier by carefully studying work procedures and determining the best methods for performing particular tasks

45. Frederick W. Taylor and Scientific Management
Henry Ford followed Taylor’s work
Created the assembly line
Mass production lowered costs
Could price car low enough to attract more customers
Every part was counted, production was timed
Paid a daily wage of $5 when the average was $2.50
This allowed workers to become customers
Low morale & injuries resulted
Repetition caused boredom
High turnover

46. Frederick W. Taylor and Scientific Management
Companies today continue to use the principles of scientific management
Marriott Corporation
Customer satisfaction

47. The Hawthorne Studies of Productivity
In the roaring 20s--Researchers began to look at the relationship between working conditions and productivity
Series of experiments at the Hawthorne plant of Western Electric in Cicero, IL
Lowered the lighting and expected to see productivity to fall
What happened?
Productivity increased…Why?

48. The Hawthorne Studies of Productivity
Baffled by results, a team of psychologists from Harvard University were called upon
Over five years, hundreds of experiments were conducted at the plant
Different wage payments
Rest periods
Work hours
Other variables
What were the results?
Same: Productivity increased!!

49. The Hawthorne Studies of Productivity
Researchers concluded that productivity rose because workers worked harder when they received attention
Hawthorne effect
Change of any kind increases productivity
Factors other than the physical environment affected worker productivity
Psychological and social conditions, effective supervision

50. The Hawthorne Studies of Productivity
Informal group pressures
Teaming tends to drive everyone not to let the others on the team down….
Individual recognition
Highlighting a worker contribution tends to motivate them to work harder
Participation in decision-making
When workers are part of the process they work harder

51. Abraham H. Maslow and the Hierarchy of Needs
According to Maslow
All people have five basic types of needs
People fulfill lower-level needs before seeking to fulfill higher-level needs
One set of needs must be met before another is sought
“Hierarchy of needs” is his grouping and ordering of physical, security, social, status, and self-actualization needs

52. Maslow’s Hierarchy of Needs

53. Applying Maslow’s Theory
Sherpinsky-Business Management NOW
Applying Maslow’s Theory
At the lowest level, workers are motivated by basic needs
Wages or salary, physical conditions
Safety or security needs
Providing insurance, retirement benefits, job security
Safe from physical, psychological, or financial harm

54. Applying Maslow’s Theory
Sherpinsky-Business Management NOW
Applying Maslow’s Theory
At the lowest level, workers are motivated by basic needs
Wages or salary, physical conditions
Safety or security needs
Providing insurance, retirement benefits, job security
Safe from physical, psychological, or financial harm

55. Applying Maslow’s Theory
Social needs
Provide a work environment in which colleagues interact
Company lunch rooms, company retreats
Status needs
Provide workers with signs of recognition that are visible to others
Job titles, private offices, designated parking spaces, awards, promotions

56. Applying Maslow’s Theory
Social needs
Provide a work environment in which colleagues interact
Company lunch rooms, company retreats
Status needs
Provide workers with signs of recognition that are visible to others
Job titles, private offices, designated parking spaces, awards, promotions

57. Applying Maslow’s Theory to Management
Self-fulfillment needs
Provide employees with opportunities to be creative at work
Include employees in decision making
Example
ITT’s Ring of Quality Control: Gave awards to employees for ideas

58. WEB QUEST MASLOW”S HEIRARCHY Individual Activity: PowerPoint
Directions: Demonstrate an understanding of Maslow’s Theory.
Select products available to the general public, then produce a PowerPoint using images from advertisement campaigns for that specific product that capitalize on the various level of Maslow’s Theory.

59. Professional Management
The professional manager (started in the 1930’s)
Defined: Career person who does not necessarily have controlling interest in the business

60. The Systems Approach
An attempt to manage all the different schools of management into an integrated approach
Defined: A system is a set of connected elements that function as a whole.
The systems’ approach was viewed as a “way of thinking about the job of managing.”
Two Types:
Open System: interacts with its external environment
Closed System: No interaction with its external environment

61. Theory X & Theory Y Inventory
What is your belief about workers?
Take the quick inventory and find out!

62. TEAM WORK: Critical Thinking
ADVANTAGES
DISADVANTAGES
What are the Advantages and Disadvantages of working in Teams?
Group Activity:
Name 4 for both!
Be Ready to Share!

63. Empowering Employees
As organizations grew in size and complexity, new styles and methods of management began to emerge
Different philosophies developed on how best to manage employees

64. Douglas McGregor
McGregor is the other major theorist associated with the Human Relations school of management.
McGregor believes there are two basic kinds of managers.

65. Theory X
Assumes that people are basically lazy and will avoid working if they can
Managers impose strict rules and make sure that all important decision are make only by them

66. Theory Y Assumes that people find satisfaction in their work
Managers believe that people will work productively if put in the right environment
People are creative & will come up with good ideas if encouraged to do so
Employees given more freedom and allowed to make mistakes

67. Theory Z William Ouchi, management researcher
Integrates Japanese and American business practices
Japanese emphasis on collective decision making and concern for employees
American emphasis on individual responsibility
Johnsonville Foods

68. Japanese, American, and Theory Z Organizations

69. Johnsonville Foods Johnsonville Foods, located in Sheboygan Wisconsin
Teams of empowered workers
Buy equipment
Write budgets
Train one another
Cut their hours when necessary
Even hire and fire one another
Called “self-managing” or “autonomous teams”…It is NOT crazy!
Goal: Teach people to do for themselves
Results: Get far better performance
Sales increased by 20%
Productivity increased by 50%
Rejects dropped from 5% to less than ½ of 1%

70. Theory X & Theory Y Inventory
What is your belief about workers? Using MS Word…
After taking an inventory and finding out your viewpoint with regard to Theory X and Theory Y, now you can answer these questions:
What does your profile mean for the type of leader you will be?
What are the implications of being driven by Theory X beliefs? (For the employer, employee & manager)
What are the implications of being driven by Theory Y beliefs? (For the employer, employee & manager)

71. Centralization vs. Decentralization
The concentration of power among a few key decision makers
Decentralization
Process by which decisions are made by managers at various levels within an organization

72. Women and Minorities in Management
In the last four decades, the number of women and minorities have joined the workforce has tripled
Commonplace to hold positions at all levels of management in companies of all sizes
Women and minorities serve as the CEOs of prestigious businesses
PepsiCo, Kraft, Archer Daniels, Avon, Harpo, eBay, Lucent, Dupont, IBM, XEROX, Yahoo

73. Women and Minorities in Management
Caucasian males still hold most senior management positions
Glass ceiling: the invisible barrier that prevents women and minorities from moving up in the world of business
Steadily becoming a window of opportunity!
Global Influences

74. Attracting Working Mothers
What does the demographic need in workplace?
Daycare
Can cost $500-$1000 per child per week
Flexible Schedules
Tele-commuting

75. Women and Minorities in Management
Workers and managers must be sensitive to challenges presented by a multicultural workplace
Religious holidays that are celebrated at different times throughout the year by Muslims, Christians, Jews and other religious groups

76. Web Quest: Research Entrepreneurs
ACTIVITY: Partners
Identify/Choose an High Profile Manager you would like to research and know more about (only one per team)
Using MS PowerPoint 2010, complete a presentation about your chosen person.
Include ALL the required elements for highest grade!!!