Jones George

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Chapter
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• The Management Process Today

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Learning Objectives

• Describe what management is, why management is
  important, what managers do, and how managers
  utilize organizational resources efficiently and
  effectively to achieve organizational goals
• Distinguish among planning, organizing, leading,
  and controlling (the four managerial functions),
  and explain how managers ability to handle each
  one can affect organizational performance

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Learning Objectives

• Differentiate among three levels of management,
  and understand the responsibilities of managers
  at different levels in the organizational
  hierarchy
• Identify the roles managers perform, the skills
  they need to execute those roles effectively and
  the way new information technology is affecting
  these roles and skills
• Discuss the principal challenges managers face in
  todays increasingly competitive global
  environment

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What is Management?

• The planning, organizing, leading, and
  controlling of human and other resources to
  achieve organizational goals effectively and
  efficiently

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Organizations

• Collections of people who work together and
  coordinate their actions to achieve a wide
  variety of goals

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Managers

• Managers
• The people responsible for supervising the use of
  an organizations resources to meet its goals
• Resources include people, skills, know-how,
  machinery, raw materials, computers and IT, and
  financial capital

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Organizational Performance

• A measure of how efficiently and effectively
  managers are using organizational resources to
  satisfy customers and achieve goals

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Organizational Performance

• Efficiency
• A measure of how well or productively resources
  are used to achieve a goal
• Effectiveness
• A measure of the appropriateness of the goals an
  organization is pursuing and the degree to which
  they are achieved.

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Figure 1.1
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Why study management?

• The more effective and efficient use an
  organization can make of resources, the greater
  the relative well-being 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

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Four Functions of Management
Figure 1.2
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Planning

• Process of identifying and selecting appropriate
  goals and courses of action

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Steps in the Planning Process

• Deciding which goals to pursue
• Deciding what courses of action to adopt
• Deciding how to allocate resources

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Organizing

• Process of establishing a structure of working
  relationships in a way that allows organizational
  members to interact and cooperate to achieve
  organizational goals

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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

• Articulating a clear vision to follow, and
  energizing and enabling organizational members so
  they understand the part they play in attaining
  organizational goals

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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

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Question?

• What is a group of people who work together and
  possess similar skills or use the same
  knowledge, tools, or techniques?A.
  OrganizationB. DepartmentC. TeamD.
  Presentation Group

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Areas of Managers

• Department
• A group of people who work together and possess
  similar skills or use the same knowledge,
  tools,or techniques

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Types of Managers

• First line managers - Responsible for the daily
  supervision of non-managerial employees
• Middle managers - Supervise first-line managers.
  Are responsible to find the best way to use
  resources to achieve goals

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Types of Managers

• Top managers - Responsible for the performance of
  all departments and have cross-departmental
  responsibility. Establish organizational goals,
  decide how different departments should interact
  and monitor middle managers

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Discussion Question

• What type of manager is Rick Wagoner, Jr. of GM?
  What impact do his decisions have on the company?
• Little impact
• Great Impact
• Depends on the decision
• Average impact

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Types of Managers
Figure 1.3
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Relative Amount of Time That Managers Spend on
the Four Managerial Functions
Figure 1.4
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Restructuring

• Involves the use of IT to downsize an
  organization by eliminating the jobs of large
  numbers of top, middle, or first-line managers
  and non-managerial employees

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Outsourcing

• Contracting with another company, usually in a
  low cost country abroad, to perform an activity
  the company previously performed itself
• Promotes efficiency by reducing costs and
  allowing an organization to make better use of
  its remaining resources

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Empowerment

• Expanding employees knowledge, tasks, and
  responsibilities by using powerful new software
  programs

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Self-managed teams

• Groups of employees with the responsibility for
  supervising their own activities and for
  monitoring the quality of the goods and services
  they provide

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IT Managerial Roles and Skills

• Managerial role - The set of specific tasks that
  a person is expected to perform because of the
  position he or she holds in the organization

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IT Managerial Roles and Skills

• Mintzberg identified three categories of roles
  Decisional, Informational, Interpersonal

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Decisional Roles

• Roles associated with methods managers use in
  planning strategy and utilizing resources.
• Entrepreneurdeciding which new projects or
  programs to initiate and to invest resources in.
• Disturbance handlermanaging an unexpected event
  or crisis.
• Resource allocatorassigning resources between
  functions and divisions, setting the budgets of
  lower managers.
• Negotiatorreaching agreements between other
  managers, unions, customers, or shareholders.

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Informational Roles

• Roles associated with the tasks needed to obtain
  and transmit information in the process of
  managing the organization.
• Monitoranalyzing information from both the
  internal and external environment.
• Disseminatortransmitting information to
  influence the attitudes and behavior of
  employees.
• Spokespersonusing information to positively
  influence the way people in and out of the
  organization respond to it.

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Interpersonal Roles

• Roles that managers assume to provide direction
  and supervision to both employees and the
  organization as a whole.
• Figureheadsymbolizing the organizations mission
  and what it is seeking to achieve.
• Leadertraining, counseling, and mentoring high
  employee performance.
• Liaisonlinking and coordinating the activities
  of people and groups both inside and outside the
  organization.

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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-setsB. SKAsC.
  CompetenciesD. Skill traits

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Competencies

• Specific set of skills, abilities, and
  experiences that allows one manager to perform
  at a higher level than another manager in a
  particular setting

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Challenges for Management ina 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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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 a Competitive Advantage

• Increasing Efficiency
• Increasing Quality
• Increasing Speed, Flexibility, and Innovation
• Increasing Responsiveness to Customers

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Building Blocks of Competitive Advantage
Figure 1.5
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Movie Example Monty Python

• In the opening scene of Monty Python and the Holy
  Grail Is King Arthur being effective traveling
  across Britain by banging coconuts together?
  Efficient?

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Movie Example Office Space

• What type of manager is Bill Lumbergh in the
  movie Office Space?