Download ch01 The Management Process

JOHN R. SCHERMERHORN, JR.
MANAGEMENT
12th Edition
Chapter 1
The Management
Process
©2013 John Wiley & Sons, Inc. All rights reserved.
1-1
Planning Ahead — Chapter 1 Study Questions
1. What are the challenges of working in the new
economy?
2. What are organizations like in the new
workplace?
3. Who are the managers and what do they do?
4. What is the management process?
5. How do you learn managerial skills and
competencies?
©2013 John Wiley & Sons, Inc. All rights reserved.
1-2
Chapter 1 Learning Dashboard
1. Working today
1.
2.
3.
4.
5.
6.
Talent
Technology
Globalization
Ethics
Diversity
Careers
2. Organizations
1.
2.
3.
4.
What is an organization?
Organizations as systems
Organizational performance
Changing nature of organizations
©2013 John Wiley & Sons, Inc. All rights reserved.
Chapter 1 Learning Dashboard
3. Managers
1.
2.
3.
4.
5.
What is a manager?
Levels of managers
Types of managers
Managerial performance
Changing nature of managerial work
4. The Management Process
1.
2.
3.
Functions of Management
Managerial roles and activities
Managerial agendas and networking
5. Learning How to Manage
1.
2.
Essential managerial skills
Developing managerial potential
©2013 John Wiley & Sons, Inc. All rights reserved.
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Takeaway
Working Today
Place Slide
Title Text1:Here
• Talent
– People and their talents are the ultimate
foundations of organizational performance
– Intellectual capital is the collective brainpower or
shared knowledge of a workforce that can be
used to create value
– A knowledge worker’s mind is a critical asset to
employers and adds to the intellectual capital of
an organization
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Takeaway
Working Today
Place Slide
Title Text1:Here
Intellectual capital equation:
Commitment
Competency
©2013 John Wiley & Sons, Inc. All rights reserved.
Intellectual
Capital
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Place Slide Title Text Here
• A company has a book value $10/share
• if the market value is $40/share
• the market/ knowledge/intellectual capital
gain is:
$
40
- 10
$30
Management 10/e - Chapter 1
©2013 John Wiley & Sons, Inc. All rights reserved.
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Takeaway
1:Here
Working Today
Place Slide
Title Text
• Technology
– Tech IQ is a person’s ability to use technology to
stay informed:
• Checking inventory, making a sales transaction,
ordering supplies
• Telecommuting
• Virtual teams
• Effective use of online resources
–
–
–
–
Databases
Job searches
Recruiting
Social Media
©2013 John Wiley & Sons, Inc. All rights reserved.
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Takeaway
Working Today
Place Slide
Title Text1:Here
Globalization
– The worldwide interdependence of resource
flows, product markets, and business
competition that characterize our economy
– Job migration occurs when firms shift jobs from
one country to another
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide
Title Text1:Here
Takeaway
Working Today
Ethics
– Code of moral principles that set standards of
conduct of what is “good” and “right”
in one’s behavior
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide
Title Text1:Here
Takeaway
Working Today
Ethical expectations for modern businesses:
– Integrity and ethical leadership at all levels
– Social responsibility
– Sustainability
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text Here
What are the challenges of working in
the new economy?
Ø Ethical expectations for contemporary
businesses:
– Sustainable development and protection of
the natural environment.
– Protection of consumers through product
safety and fair practices.
– Protection of human rights, including
employment policies and practices.
Schermerhorn - Chapter 1
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text Here
What are the challenges of working in
the new economy?
Ø Workplace pressures involving ethics toward
human capital:
– Equal employment opportunity
– Equity in compensation and benefits
(1981: HK male pay = female pay)
– Privacy and due process
– Freedom from sexual harassment
– Job security
– Occupational health and safety
Schermerhorn - Chapter 1
©2013 John Wiley & Sons, Inc. All rights reserved.
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Takeaway
1:Here
Working Today
Place Slide
Title Text
Diversity
– Workforce diversity reflects differences with
respect to gender, age, race, ethnicity, religion,
sexual orientation, and able-bodiedness
– A diverse and multicultural workforce both
challenges and offers opportunities to employers
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide
Title Text1:Here
Takeaway
Working Today
How diversity bias can occur in the workplace:
– Prejudice
– Discrimination
– Glass ceiling effect
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text Here
The Challenges Ahead: Working in the New Economy
• Workforce Diversity
– Challenges of Valuing Diversity
• Cultural bias
– prejudice: negative, irrational attitudes towards
members of minority groups
– discrimination: denying members of minority
groups getting full benefits of organizational
membership
– glass ceiling effect: existence of an invisible
barrier that prevents women and minority
workers from rising above a certain level of
organizational responsibility
Management 8/e - Chapter 1
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text Here
The Glass Ceiling Effect
Dominant
Culture:
White males
• hold most top
positions
Glass ceiling
limiting
advancement of
women and
minorities
• present at all levels
• included in entry-level
hiring
Minority Cultures:
Women , people of color,
other minorities
• hold few top positions
• increasingly distributed in lower-middle
levels
• included in entry-level hiring
Management 8/e - Chapter 1
©2013 John Wiley & Sons, Inc. All rights reserved.
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Takeaway
1:Here
Working Today
Place Slide
Title Text
Careers
– Organizations consist of three types of workers,
sometimes referred to as a shamrock
organization:
Permanent
full time
workers
Temporary
part-time
workers
©2013 John Wiley & Sons, Inc. All rights reserved.
Freelance
or contract
workers
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Place Slide
Title Text1:Here
Takeaway
Working Today
• Free-agent economy
– People change jobs more often, and many work
on independent contracts
• Self-management
– Ability to understands oneself, exercise
initiative, accept responsibility, and learn from
experience
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide
Title Text2:
Here
Takeaway
Organizations
Organization
– A collection of people working together to
achieve a common purpose
– Organizations provide useful goods and/or
services that return value to society and satisfy
customer needs
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text Here
Figure 1.1 Organizations as open
systems interact with their environment
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Takeaway
Organizations
Place Slide
Title Text2:
Here
Organizational performance
– “Value creation” is a very important notion for
organizations
– Value is created when an organization’s
operations adds value to the original cost of
resource inputs
– When value creation occurs:
• Businesses earn a profit
• Nonprofit organizations add wealth to society
©2013 John Wiley & Sons, Inc. All rights reserved.
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Takeaway
Organizations
Place Slide
Title Text2:
Here
Organizational performance
Productivity
• An overall
measure of the
quantity and
quality of work
performance
with resource
utilization taken
into account
Performance
effectiveness
Performance
efficiency
• An output
measure of task
or goal
accomplishment
• An input
measure of the
resource costs
associated with
goal
accomplishment
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text Here
Figure 1.2 Productivity and the
dimensions of organizational
performance
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text
Here
Productivity
= Output/Input
>1
Profit
=1
Breakeven
<1
Loss
Effectiveness = doing the right thing
Efficiency = doing the thing right
Management 8/e - Chapter 1
©2013 John Wiley & Sons, Inc. All rights reserved.
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Productivity at Uber
Improvements:
! Mobility-as-a-service
! Low costs and ease of use
! Peer-to-peer transport services
! Generates employment
! Decrease in fuel emission
Copyright © 2017 Pearson Education Ltd
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Place Slide
Title Text2:
Here
Takeaway
Organizations
Workplace changes that provide a context for
studying management …
Focus on valuing human capital
Demise of “command-and-control”
Emphasis on teamwork
Preeminence of technology
Importance of networking
New workforce expectations
Priorities on sustainability
©2013 John Wiley & Sons, Inc. All rights reserved.
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3: Managers
Place SlideTakeaway
Title Text Here
Importance of human resources and managers
– People are not ‘costs to be controlled ’
– High performing organizations treat people as
valuable strategic assets
– Managers must ensure that people are treated as
strategic assets
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide
Title Text Here
Takeaway
3: Managers
• Manager
– Directly supports, activates and is responsible for
the work of others
– The people who managers help are the ones
whose tasks represent the real work of the
organization
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide
Title Text Here
Takeaway
3: Managers
Levels of management
– Board of directors make sure the organization is
run right
– Top managers are responsible for performance of
an organization as a whole or for one of its major
parts
– Middle managers oversee large departments or
divisions
– Team leaders supervise non-managerial workers
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text Here
Figure 1.3 Management levels in a typical
business and non-profit organizations
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide
Title Text Here
Takeaway
3: Managers
Types of managers
• Line managers are responsible for work activities that
directly affect organization’s outputs
• Staff managers use technical expertise to advise and support
the efforts of line workers
• Functional managers are responsible for a single area of
activity
• General managers are responsible for more complex units
that include many functional areas
• Administrators work in public and nonprofit organizations
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Place Slide
Title Text Here
Takeaway
3: Managers
Managerial performance and accountability
– Accountability is the requirement to show
performance results to a supervisor
– Effective managers help others achieve high
performance and satisfaction at work
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide
Title Text Here
Takeaway
3: Managers
Corporate Governance
– Board of directors hold top management
responsible for organizational performance
Financial
performance
Ethical
performance
Sustainability
©2013 John Wiley & Sons, Inc. All rights reserved.
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3: Managers
Place SlideTakeaway
Title Text Here
Quality of work life (QWL)
– An indicator of the overall quality of human
experiences in the workplace
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3: Managers
Place SlideTakeaway
Title Text Here
QWL indicators:
•
•
•
•
•
•
Fair pay
Safe working conditions
Opportunities to learn and use new skills
Room to grow and progress in a career
Protection of individual rights
Pride in work itself and in the organization
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide
Title Text Here
Takeaway
3: Managers
The organization as an upside-down pyramid
– Each individual is a value-added worker
– A manager’s job is to support workers’ efforts
– The best managers are known for helping and
supporting
– Customers at the top served by workers who are
supported by managers
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text Here
Figure 1.4 The organization viewed as an
upside-down pyramid
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The Here
Management Process
PlaceTakeaway
Slide Title4:Text
• Managers achieve high performance for their
organizations by best utilizing its human and
material resources
• Management is the process of planning, organizing,
leading, and controlling the use of resources to
accomplish performance goals
• All managers are responsible for the four functions
• The functions are carried on continually
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text Here
Figure 1.5 Four functions of management
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The Here
Management Process
PlaceTakeaway
Slide Title4:Text
Functions of management
– Planning
• The process of setting objectives and determining
what actions should be taken to accomplish them
– Organizing
• The process of assigning tasks, allocating resources,
and coordinating work activities
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The Here
Management Process
PlaceTakeaway
Slide Title4:Text
Functions of management …
– Leading
• The process of arousing people’s enthusiasm to work
hard and direct their efforts to achieve goals
– Controlling
• The process of measuring work performance and
taking action to ensure desired results
©2013 John Wiley & Sons, Inc. All rights reserved.
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The Here
Management Process
PlaceTakeaway
Slide Title4:Text
Functions of management …
– Leading
• The process of arousing people’s enthusiasm to work
hard and direct their efforts to achieve goals
– Controlling
• The process of measuring work performance and
taking action to ensure desired results
©2013 John Wiley & Sons, Inc. All rights reserved.
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Takeaway 4: The Management Process
Mintzberg’s 10 Managerial Roles
©2013 John Wiley & Sons, Inc. All rights reserved.
Mintzberg’s Managerial
Roles
INTERPERSONAL
1.
2.
3.
Figurehead
Leader
Liaison
INFORMATIONAL
4.
5.
6.
Monitor
Disseminator
Spokesperson
DECISIONAL
7.
8.
9.
10.
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
Management 10/e - Chapter 1
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Mintzberg’s Managerial Roles
Interpersonal Roles
1.Figurehead – symbolic head; obliged to
perform a number of routine duties of a
legal or social nature
2.Leader – responsible for the motivation and
activation of subordinates; responsible for
staffing, training, and associated duties
3.Liaison – maintain self-developed network of
outside contacts and informers who
provided favours and information
Management 8/e - Chapter 1
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Mintzberg’s Managerial Roles
Informational Roles
4.Monitor – seeks and receives wide variety of
special information (much of it current) to
develop thorough understanding of organization and
environment; emerges as nerve center of
internal and external information about organization
5.Disseminator – transmits information received from
outsiders or from subordinates to members of
the organization; some information is factual, some
involves interpretation and integration of
diverse value positions of organizational influencers
Management 8/e - Chapter 1
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Mintzberg’s Managerial Roles
Informational Roles
6.Spokesperson – transmits
information to outsiders on
organization’s plans, policies,
actions, results, etc., serves as
expert on organization’s industry
Source: Robbins, S.P. and Coultar, M. Management, 8th Edition,
Prentice Hall International, 2005.
Management 8/e - Chapter 1
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Mintzberg’s Managerial Roles
Decisional Roles
7.Entrepreneur – searches organization and
its environment for
opportunities and initiates
“improvement projects” to bring
about changes; supervises design of
certain projects
8.Disturbance handler – responsible for
corrective action when
organization faces important,
unexpected disturbances
Management 8/e - Chapter 1
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Mintzberg’s Managerial Roles
Decisional Roles
9.Resource allocator – responsible for
the allocation of organizational
resources of all kinds – in effect, the
making or approval of all
significant organizational decisions
10. Negotiator – responsible for
representing the organization at
major negotiations
Management 8/e - Chapter 1
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Takeaway 4: The Management Process
Re-design the course to be delivered in e-learning mode
Unexpected problems encountered during the course, such as flu
Decide the number of contact hours for the course
Work with partner to reach agreement in course projects
Greet students during the first class
Decide the structure and content of course
Coordinate with other units in delivering the course, such as Registry
Evaluate the progress of teaching during the semester
Inform students about changes in the Department policies
Give a talk to prospective students and provide them with information
©2013 John Wiley & Sons, Inc. All rights reserved.
Takeaway 4: The Management Process
Entrepreneur
Re-design the course to be delivered in e-learning mode
Disturbance
handler
Unexpected problems encountered during the course, such as flu
Resource
allocator
Decide the number of contact hours for the course
Negotiator
Work with partner to reach agreement in course projects
Figurehead
Greet students during the first class
Leader
Decide the structure and content of course
Liaison
Coordinate with other units in delivering the course, such as Registry
Monitor
Evaluate the progress of teaching during the semester
Disseminator
Inform students about changes in the Department policies
Spokesperson
Give a talk to prospective students and provide them with information
©2013 John Wiley & Sons, Inc. All rights reserved.
The Here
Management Process
PlaceTakeaway
Slide Title4:Text
Characteristics of managerial work
– long hours
– intense pace
– fragmented and varied tasks
– many communication media
– filled with interpersonal relationships
©2013 John Wiley & Sons, Inc. All rights reserved.
1-53
The Here
Management Process
PlaceTakeaway
Slide Title4:Text
Managerial agendas and networks
– Agenda setting
• Develops action priorities for accomplishing goals and plans
– Networking
• Process of creating positive relationships with people who can
help advance agendas
– Social capital
• Capacity to get things done with help
©2013 John Wiley & Sons, Inc. All rights reserved.
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Learning
PlaceTakeaway
Slide Title5:Text
Here How to Manage
• Learning
– The change in a behavior that results from
experience
• Lifelong learning
– The process of continuously learning from
daily experiences and opportunities
©2013 John Wiley & Sons, Inc. All rights reserved.
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Place Slide Title Text Here
Figure 1.6 Katz’s Essential Managerial
Skills
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Conceptual Skills
• Identification of opportunities for
innovation.
• Understanding of organization’s business
model
• Recognizing problem areas and
implementing solutions
• …etc
©2013 John Wiley & Sons, Inc. All rights reserved.
Human Skills
•
•
•
•
•
•
•
•
Delegating, coaching and mentoring skills
Working with diverse people and cultures
Networking within & outside org.
Working in teams
Presentations skills
Credibility among colleagues
Managing conflict
…etc
©2013 John Wiley & Sons, Inc. All rights reserved.
Technical Skills
• Knowledge of and proficiency in a certain
specialized field such as engineering,
computers, manufacturing …etc.
• Contributing to corporate
mission/department objectives.
©2013 John Wiley & Sons, Inc. All rights reserved.
Place Slide Title Text Here
Figure 1.7 Learning model for developing
managerial skills and competencies
©2013 John Wiley & Sons, Inc. All rights reserved.
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