Download The Management Process Today

The
Management
Process Today
Chapter One
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
LO1 Describe what management is, why management
is important, what managers do, and how
managers use organizational resources efficiently
and effectively to achieve organizational goals
LO2 Distinguish among planning, organizing, leading,
and controlling (the four managerial functions),
and explain how managers’ ability to handle each
one can affect organizational performance
LO3 Understand the three levels of management and
the tasks and responsibilities of managers at
different levels in the organizational hierarchy
1-2
Learning Objectives
LO4 Distinguish between three kinds of managerial
skills, and explain why managers are divided into
different departments to perform tasks more
efficiently and effectively
LO5 Discuss some major changes in management
practices today that have occurred as a result of
globalization and the use of advanced information
technology (IT)
LO6 Discuss the challenges managers face in today’s
increasingly competitive global environment
1-3
What is Management?
• Management
– The planning, organizing, leading, and
controlling of human and other resources to
achieve organizational goals
effectively and efficiently
1-4
What is Management?
• Organizations
– Collections of people
who work together
and coordinate their
actions to achieve a
wide variety of goals
1-5
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
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Achieving High Performance
• Organizational Performance
– A measure of how efficiently
and effectively managers use
organizational resources to
satisfy customers and
achieve goals
1-7
Efficiency, Effectiveness, and
Performance in an Organization
Figure 1.1
1-8
Organizational Performance
• Efficiency
• Effectiveness
– A measure of how
– A measure of the
well or productively
appropriateness of
resources are used to
the goals an
achieve a goal
organization is
pursuing and the
degree to which they
are achieved.
1-9
Why study management?
• The more effective and efficient use an organization
can make of resources, the greater the relative wellbeing of people
• Almost all of us encounter managers because most
people have jobs and bosses
• Understanding management is one important path
toward obtaining a satisfying career
1-10
Four Tasks of Management
Figure 1.2
1-11
Planning
• Planning
– Process of identifying
and selecting
appropriate goals
and courses of action
1-12
Steps in the Planning Process
1. Deciding which goals to pursue
2. Deciding what strategies to adopt to attain
those goals
3. Deciding how to allocate organizational
resources
1-13
Planning
• Strategy
– Cluster of decisions about what goals
to pursue, what actions to take, and
how to use resources to achieve goals
1-14
Organizing
• Organizing
– Structuring working relationships so organizational
members interact and cooperate to achieve
organizational goals.
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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
1-16
Leading
• Leading
– Articulating a clear vision!
Energizing and enabling organizational members
so they understand the part they play (share) in
attaining organizational goals.
1-17
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
1-18
Question?
What is a group of people who work together
and possess similar skills or use the same
knowledge, tools, or techniques?
A. Organization
B. Department
C. Team
D. Presentation Group
1-19
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
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Levels of Management
• First-Line Managers
– Responsible for the daily supervision of nonmanagerial employees
• Middle Managers
– Supervise first-line managers and are responsible
for finding the best way to use resources to
achieve organizational goals
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Levels of Management
• Top Managers
– Establish organizational goals, decide how
departments should interact, and monitor the
performance of middle managers
• CEO
– Chief Executive Officer; the company’s most
senior and important manager. All other top
managers report to CEO or COO.
1-22
Levels of Managers
Figure 1.3
1-23
Relative Amount of Time That Managers Spend
on the Four Managerial Tasks
Figure 1.4
1-24
Levels of Managers
• Top-management team
– Group composed of the CEO, COO, and the heads
of the most important departments
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Question?
A.
B.
C.
D.
Which management skill is the ability to
understand, alter, lead, and control the
behavior of other individuals and groups?
Conceptual
Human
Technical
Technological
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Managerial Skills
• Conceptual 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 specific knowledge and techniques required
to perform an organizational role.
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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. Competencies
C. Skill traits
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Technical Skills
• Core competency
– Specific set of skills, abilities, and experiences that
allows one organization to outperform its
competitors
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Types and Levels of Managers
Figure 1.5
1-30
Recent Changes in Management Practices
• Restructuring
– downsizing an organization by eliminating the jobs
of large numbers of top, middle, or first-line
managers and non-managerial employees
1-31
Recent Changes in Management Practices
• Outsourcing
– Contracting with another company, usually in a
low cost country abroad, to perform an activity
the company previously performed itself
– Increases efficiency because it lowers operating
costs, freeing up money and resources that can be
used in more effective ways
1-32
Empowerment and Self-Managed
Teams
• Empowerment
– Expansion of
employees’
knowledge, tasks,
and decision-making
responsibilities
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Empowerment and Self-Managed Teams
• Self-managed team
– A group of employees
with the responsibility of:
organizing, controlling
and supervising their own activities
and for monitoring the quality of
the goods and services they provide
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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 ECommerce
• Practicing Global Crisis
Management
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Challenges for Management in
a Global Environment
• Global organizations
– Organizations that operate and compete in more
than one country
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Building Competitive Advantage
• Competitive advantage
– Ability of one organization to outperform other
organizations because it produces desired goods
or services more efficiently and effectively than
they do
1-37
Building Blocks of Competitive
Advantage
Figure 1.6
1-38
Building a Competitive Advantage
• Innovation
– Process of creating new or improved goods and
services or developing better ways to produce or
provide them
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Practicing Global Crisis Management
Crisis management involves making important
choices about how to:
1. Create teams to facilitate rapid decision making
and communication
2. Establish the organizational chain of command
3. Recruit and select the right people
4. Develop bargaining and negotiating strategies to
manage conflicts
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