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CHAPTER 1
THE MANAGEMENT
PROCESS TODAY
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Learning Objectives (1 of 2)
1-1. Describe what management is, why management
is important, what managers do, and how
managers utilize organizational resources
efficiently and effectively to achieve
organizational goals.
1-2. Distinguish among planning, organizing, leading,
and controlling (the four principal managerial
tasks), and explain how managers’ ability to
handle each one can affect organizational
performance.
1-3. Differentiate among three levels of management,
and understand the tasks and responsibilities of
managers at different levels in the organizational
hierarchy.
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Learning Objectives (2 of 2)
1-4. Distinguish among three kinds of managerial skill,
and explain why managers are divided into
different departments to perform their tasks more
efficiently and effectively.
1-5. Discuss some major changes in management
practices today that have occurred as a result of
globalization and the use of advanced information
technology (IT).
1-6. Discuss the principal challenges managers face in
today’s increasingly competitive global
environment.
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What Is Management? (1 of 3)
Management
The planning, organizing, leading, and
controlling of human and other resources to
achieve organizational goals effectively and
efficiently
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What Is Management? (2 of 3)
Organizations
Collections of people who work together and
coordinate their actions to achieve a wide
variety of goals
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What Is Management? (3 of 3)
Managers
The people responsible for supervising the use of
an organization’s resources to meet its goals
Resources
People, skills, know-how, experience, machinery,
raw materials, computers and IT, financial capital,
patents, loyal customers and employees
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Achieving High Performance
Organizational Performance
A measure of how efficiently and effectively
managers use available resources to satisfy
customers and achieve organizational goals
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Efficiency, Effectiveness, and Performance
in an Organization
Figure 1.1
High-performing
organizations are
efficient and
effective.
Jump to Appendix 1 for long description.
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Organizational Performance
Efficiency
A measure of how productively resources are
used to achieve a goal
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Why Study Management?
1. Individuals learn to understand the dynamic and
complex nature of work and make decisions that
are ethical and effective for an organization.
2. Understanding management helps the manager’s
employer to succeed.
3. The economic benefits of becoming a good
manager are impressive.
4. Learning management principles can help you make
good decisions in non-work situations.
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Four Tasks of Management
Figure 1.2
Jump to Appendix 2 for long description.
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Planning (1 of 2)
Planning
Process of identifying and selecting appropriate
goals and courses of action
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Steps in the Planning Process
1. Decide which goals to pursue.
2. Decide what strategies to adopt to attain
those goals.
3. Decide how to allocate organizational
resources to pursue strategies that attain
those goals.
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Planning (2 of 2)
Strategy
Cluster of decisions about what goals to pursue,
what actions to take, and how to use resources
to achieve goals
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Organizing (1 of 2)
Organizing
Structuring working relationships in a way that
allows organizational members to work together
to achieve organizational goals
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Organizing (2 of 2)
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
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Leading
Leading
Articulating a clear vision and energizing and
enabling organizational members so they
understand the part they play in achieving
organizational goals
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Controlling
Controlling
Evaluating how well an organization is achieving
its goals and taking action to maintain or
improve performance
Outcome of the control process
Ability to measure performance accurately and
regulate efficiency and effectiveness
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TOPICS FOR DISCUSSION (1 of 5)
Describe the difference between efficiency and
effectiveness, and identify real organizations
that you think are, or are not, efficient and
effective. [LO 1-1]
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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 (1 of 2)
First-Line Managers
Responsible for the daily supervision of
nonmanagerial employees
Middle Managers
• Supervise first-line managers
• Responsible for finding the best way to use
resources to achieve organizational goals
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Levels of Management (2 of 2)
Top Managers
Establish organizational goals, decide how
departments should interact, and monitor the
performance of middle managers
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Copyright Mark Peterson/Redux Pictures NYC
Levels of Managers (1 of 2)
Figure 1.3
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Relative Amount of Time That Managers
Spend on the Four Managerial Tasks
Figure 1.4
Jump to Appendix 3 for long description.
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Levels of Managers (2 of 2)
Top Management Team
A group composed of the CEO, the COO, and the
vice presidents of the most important
departments of a company
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TOPICS FOR DISCUSSION (2 of 5)
In what ways can managers at each of the
three levels of management contribute to
organizational efficiency and effectiveness?
[LO 1-3]
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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 job-specific knowledge and techniques required
to perform an organizational role
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TOPICS FOR DISCUSSION (3 of 5)
Identify an organization that you believe is high
performing and one you believe is low
performing. Give five reasons why you think the
performance levels of the two organizations
differ so much. [LO 1-2, 1-4]
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Technical Skills
Core Competency
Specific set of departmental skills, abilities, and
experiences that allows one organization to
outperform its competitors
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Types and Levels of Managers
Figure 1.5
Jump to Appendix 4 for long description.
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Recent Changes in Management Practices (1 of 2)
Restructuring
Downsizing an organization by eliminating the
jobs of large numbers of top, middle, or first-line
managers and non-managerial employees
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Recent Changes in Management Practices (2 of 2)
Outsourcing
Contracting with another company, usually abroad,
to have it perform an activity the organization
previously performed itself
Increases efficiency because it lowers operating
costs, freeing up money and resources that can be
used in more effective ways
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Empowerment and Self-Managed Teams (1 of 2)
Empowerment
Expansion of employees’ knowledge, tasks, and
decision-making responsibilities
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Empowerment and Self-Managed Teams (2 of 2)
Self-Managed Team
A group of employees who assume responsibility
for organizing, controlling, and supervising their
own activities and 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 E-Commerce
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Building Competitive Advantage (1 of 3)
Competitive Advantage
Ability of one organization to outperform other
organizations because it produces desired goods
or services more efficiently and effectively than
they do
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Building Blocks of Competitive Advantage
Figure 1.6
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Building Competitive Advantage (2 of 3)
Innovation
Process of creating new or improved goods and
services or developing better ways to produce or
provide them
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Building Competitive Advantage (3 of 3)
Turnaround Management
The creation of a new vision for a struggling
company based on a new approach to planning
and organizing to make better use of a
company’s resources and allow it to survive and
prosper
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Maintaining Ethical and Socially Responsible Standards
The pressure for a manager to increase
organizational performance exists at all levels.
Social responsibility centers on deciding what if
any obligations a company has towards the
people and groups affected by its activities.
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Managing a Diverse Workforce
The challenge for a manager is to recognize the
ethical need and legal requirement to treat
human resources in a fair and equitable manner.
Human resources (HRM) procedures and
practices that are legal and fair must be put into
place.
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Utilizing IT and E-Commerce (1 of 2)
Utilizing new information technology (IT) in an
efficient and effective manner is an important
challenge to managers.
IT has enabled individual employees and selfmanaged teams by providing them with more
information and allowing for virtual interactions.
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BE THE MANAGER
What kinds of organizing and controlling
problems is Achieva suffering from? [LO 1-2]
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TOPICS FOR DISCUSSION (5 of 5)
In what ways do you think managers’ jobs have
changed the most over the last 10 years? Why
have these changes occurred? [LO 1-6]
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APPENDICES
Long descriptions of images
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Appendix 1: Efficiency, Effectiveness, and
Performance in an Organization
The graphic is divided into four sections.
1.
Low efficiency and high effectiveness: Manager chooses the right goals to pursue,
but does a poor job of using resources to achieve these goals. Result: A product
that customers want, but that is too expensive for them to buy.
2.
High efficiency and high effectiveness: Manager chooses the right goals to pursue
and makes good use of resources to achieve these goals. Result: A product that
customers want at a quality and price that they can afford.
3.
Low efficiency and low effectiveness: Manager chooses wrong goals to pursue
and makes poor use of resources. Result: A low-quality product that customers
do not want.
4.
High efficiency and low effectiveness: Manager chooses inappropriate goals, but
makes good use of resources to purse these goals. Result: A high-quality product
that customers do not want.
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Appendix 2: Four Tasks of Management
The graphic shows the four task of managements as a circular
process.
Planning. Choose appropriate organizational goals and courses of
action to best achieve those goals.
Organizing. Establish task and authority relationships that allow
people to work together to achieve organization goals.
Leading. Motivate, coordinate, and energize individuals and
groups to work together to achieve organizational goals.
Controlling. Establish accurate measuring and monitoring
systems to evaluate how well the organization has achieved its
goals.
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Appendix 3: Relative Amount of Time That
Managers Spend on the Four Managerial Tasks
Graphic shows the relative amount of time that managers spend
on the four managerial tasks. For planning, top managers spend
the most time on this followed by middle managers and then
first-line managers. The same is true for organizing, although this
task is more evenly distributed. For leading, first-line managers
spend the most time on this task, followed by middle managers,
and then top managers. Controlling is similar to organizing in its
distribution.
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Appendix 4: Types and Levels of Managers
The pyramid shows the C E O at the pinnacle, below that are top
managers, middle managers, and first-line managers at the base.
It is also divided by research and development, marketing and
sales, manufacturing, accounting, and materials. Managers are
grouped into departments on the basis of their skills. Each
department contains the hierarchy of C E O, top managers,
middle managers, and first-line managers.
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