1. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 1 Management: An Overview MANAGEMENT Meeting and Exceeding Customer Expectations EIGHTH EDITION Prepared by Deborah Baker Texas Christian University

2. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 2 learning objectives 1. Explain why organizations need managers 2. Describe the needs that affect a manager’s universe 3. Identify and explain the levels of management 4. List and describe the management functions 5. Determine how management functions apply to each level of management 6. Identify and explain management roles

3. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 3 learning objectives (continued) 7. List and describe management skills 8. Contrast the myths with the realities of a manager’s job 9. Discuss the criteria used to evaluate a manager’s performance

4. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 4 Management and Managers Managers People who allocate and oversee the use of resources Management One or more managers individually and collectively setting and achieving goals by exercising related functions and coordinating various resources

5. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 5 Management and Managers Goal An outcome to be achieved or a destination to be reached over a period of time through the exercise of management functions and the expenditure of resources

6. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 6 Management and Managers. Specific. Measurable. Attainable. Results-oriented. Time limited Objective

7. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 7 Organizational Need for Managers Organization An entity managed by one or more persons to achieve stated goals 1 1

8. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 8 The Manager’s Universe 1. Need to please customers 2. Should provide leadership 3. Must act ethically 4. Should value diversity 5. Must learn to cope with global challenges Managers and/or Organizations… 2 2

9. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 9 The Need to Please Customers 2 2 Quality The features and characteristics of a product or service that allow it to satisfy requirements of those who use or consume them Customer Any person or group, both inside and outside an organization, who uses or consumes outputs from an organization or its members

10. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 10 The Need to Provide Leadership 2 2. Initiate and facilitate change. Develop and articulate the organization’s goals. Create an environment in which employees can figure out what needs to be done. Must be present at every level. Create and maintain supportive environments Leaders…

11. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 11 The Need to Act Ethically 2 2 Ethics The branch of philosophy concerned with what constitutes right and wrong human conduct, including values and actions, in a given set of circumstances

12. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 12 The Need to Value Diversity 2 2 Diversity Differing Age Groups Differing Age Groups Cultural and National Origins Cultural and National Origins Mental and Physical Capabilities Mental and Physical Capabilities Ethnic and Racial Backgrounds Ethnic and Racial Backgrounds Gender

13. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 13 The Need to Value Diversity 2 2 1. Integrate the diversity that exists in their communities and external customers into their work forces 2. Learn about and understand their employees’ differences 3. Find ways to utilize and celebrate these differences Challenges for Managers

14. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 14 The Need to Cope with Global Challenges 2 2 Technological Advances Economic Changes Crises Natural Disasters Social and Political Changes

15. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 15 Pyramid of Management Hierarchy 3 3

16. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 16 Levels of Management 3 3 Top Management CEO President Vice Presidents Middle Management Below VPs but above the supervisory level First-Line Management Supervisors Team leaders Team facilitators Functional Managers Expertise in specialty areas

17. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 17 Essential Business Functions 3 3 Marketing Operations Finance Human Resource Management Human Resource Management

18. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 18 Levels of Management 3 3

19. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 19 Management Functions 4 4 Planning Organizing Leading Staffing Controlling

20. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 20 Planning. Lay the groundwork. Identify goals and ways to achieve them. Assign priorities to each goal. Determine the resources required. Determine actions that commit: –individuals –departments –organization 4 4

21. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 21 Organizing ▼ Determine the tasks to be accomplished ▼ Group these tasks by employee position ▼ Decide on the relationships the positions have to one another 4 4

22. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 22 Staffing. Execute HR management activities: –Determine needed skills and experiences of each position –Determine number of persons needed –Train employees for positions 4 4

23. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 23 Leading. Help organizations and employees achieve goals. Serve as models for expected behaviors. Coach, counsel, inspire, and encourage. Communicate and listen. Respond to concerns. Resolve disputes 4 4

24. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 24 Controlling. Prevent, identify, and correct deviations from guidelines. Identify and correct the causes of deviations 4 4

25. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 25 Functions and Levels of Management 5 5

26. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 26 Management Roles 6 6 Decisional Roles Interpersonal Roles Informational Roles

27. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 27 Management Roles Interpersonal Roles. Figurehead. Leader. Liaison 6 6 Informational Roles. Monitor. Disseminator. Spokesperson Decisional Roles. Entrepreneur. Disturbance Handler. Resource Allocator. Negotiator

28. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 28 Conflicting Role Demands 6 6 BossBoss PeerPeerManagerManagerPeerPeer I want her to be an entrepreneur SubordinateSubordinate I need her to represent me. SubordinateSubordinate I need her to be a source of information. I see myself as a leader. I expect her to be a problem solver. I expect her to share resources.

29. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 29 Management Skills 7 7 Technical Skills Use the processes, practices, techniques, and tools of the specialty area Human Skills Human Skills Interact and communicate successfully with other persons Conceptual Skills Conceive and manipulate ideas and abstract relationships

30. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 30 Skills and Levels of Management 7 7

31. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 31 Management Myths and Realities 8 8 Myth #1 Myth #2 Myth #4 Myth #3 Myth #6 Myth #5 Managers are reflective, methodical planners with time to systematically plan and work through a day. Effective managers have no regular duties to perform. They establish others’ responsibilities in advance and then relax. The manager’s job is a science; managers work systematically and analytically. Managers are self-starting, self-directing, and autonomous. Good managers seek out the information they need. Competition among managers is good for business.

32. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 32 Evaluating a Manager’s Performance 9 9 How effectively they play the management roles Whether they possess and properly apply needed management skills How effective they are in setting objectives and achieving goals How efficiently they use their talents and resources How well they demonstrate leadership Whether they act ethically How they utilize the diversity in their people How effectively they and their people please customers

33. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 33 Primary Reasons for Failure 9 9. Being uncertain about their boss’s expectations of them. Being unable to make tough decisions. Taking too long to learn the job. Being unable to build partnerships with subordinates and peers. Lacking political savvy