© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. PowerPoint Presentation by Charlie Cook The University of West Alabama Learning Objectives 1. Describe the nature of management, define management and managers, and characterize their importance to contemporary organizations. 2. Identify and briefly explain the four basic management functions in organizations. 3. Describe the kinds of managers found at different levels and in different areas of the organization. 4. Identify the basic managerial roles that managers play and the skills they need to be successful. 5. Discuss the science and the art of management, describe how people become managers, and summarize the scope of management in organizations. 6. Characterize the new workplace that is emerging in organizations today. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–2 What Is an Organization? • A group of people working together in a structured and coordinated fashion to achieve a set of goals. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–3 Types of Organizational Resources Organizational Resources Physical Resources Human Resources Information Resources © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Financial Resources 1–4 Organizational Resources • Human resources Managerial talent and labor • Financial resources Capital investments to support ongoing and long-term operations • Physical resources Raw materials; office and production facilities, and equipment • Information resources Usable data, information linkages © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–5 1.1 Examples of Resources Used by Organizations Human Resources Financial Resources Physical Resources Information Resources Royal Dutch/ Shell Group Drilling platform workers Corporate executives Profits Stockholder investments Refineries Office buildings Sales forecasts OPEC proclamations Michigan State University Faculty Administrative staff Alumni contributions Government grants Computers Campus facilities Research reports Government publications New York City Police officers Municipal employees Tax revenue Government grants Sanitation equipment Municipal buildings Economic forecasts Crime statistics Susan’s Corner Grocery Store Grocery clerks Bookkeeper Profits Owner investment Building Display shelving Price lists from suppliers Newspaper ads for competitors Organization © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–6 What is Management? • A set of activities planning and decision making, organizing, leading, and controlling directed at an organization’s resources human, financial, physical, and information with the aim of achieving organizational goals in an efficient and effective manner. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–7 1.1 Management in Organizations © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–8 The Basic Purpose of Management EFFICIENTLY Using resources wisely and in a cost-effective way And EFFECTIVELY Making the right decisions and successfully implementing them © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–9 What is a Manager? • Someone whose primary responsibility is to carry out the management process. Plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–10 The Manager’s Job • Plan: A manager cannot operate effectively unless he or she has long range plans. • Organize When there is more than one employee needed to carry out a plan, then organization is needed. • Control Develop a method to know how well employees are performing to determine what has been and what still must be done. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–11 1.2 The Management Process © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–12 The Management Process • Planning and Decision Making: Determining goals and courses of action • Organizing: Coordinating activities and resources • Leading: Motivating and managing people • Controlling: Monitoring and evaluating activities © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–13 1.3 Kinds of Managers by Level and Area © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–14 Kinds of Managers by Level • Top Managers are the small group of executives who manage the overall organization. They create the organization’s goals, overall strategy, and operating policies. • Middle Managers are primarily responsible for implementing the policies and plans of top managers. They also supervise and coordinate the activities of lower level managers. • First-Line Managers supervise and coordinate the activities of operating employees. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–15 Kinds of Managers by Area Marketing Managers Financial Managers Human Resources Managers Kinds of Managers by Area Operations Managers © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Administrative Managers Specialist Managers 1–16 Kinds of Managers by Area • Marketing Managers work in areas related to getting consumers and clients to buy the organization’s products or services—new product development, promotion, and distribution. • Financial Managers deal primarily with an organization’s financial resources—accounting, cash management, and investments. • Operations Managers are involved with systems that create products and services—production control, inventory, quality control, plant layout, site selection. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–17 Kinds of Managers by Area (cont’d) • Human Resources Managers are involved in human resource activities. • Administrative Managers are generalists familiar with all functional areas of management and are not associated with any particular management specialty. • Other Kinds of Managers hold specialized managerial positions (e.g., public relations managers) directly related to the needs of the organization. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–18 Basic Managerial Roles and Skills • Regardless of level or area, all managers must play certain roles and exhibit specific skills in order to be successful. • Managers: Do certain things. Meet certain needs. Have certain responsibilities. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–19 Lights, Roll Camera, Manage !!! Interpersonal Roles Informational Roles Managerial Roles Decisional Roles © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–20 Managerial Roles (Mintzberg) • Interpersonal Roles Figurehead, leader, and liaison roles involve dealing with other people. • Informational Roles Monitor, disseminator, and spokesperson roles involve the processing of information. • Decisional Roles Entrepreneur, disturbance handler, resource allocator, and negotiator are managerial roles primarily related to making decisions. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–21 1.2 Ten Basic Managerial Roles Category Role Sample Activities Interpersonal Figurehead Attending ribbon-cutting ceremony for new plant Leader Encouraging employees to improve productivity Liaison Coordinating activities of two project groups Monitor Scanning industry reports to stay abreast of developments Disseminator Sending memos outlining new organizational initiatives Spokesperson Making a speech to discuss growth plans Entrepreneur Developing new ideas for innovation Disturbance handler Resolving conflict between two subordinates Resource allocator Reviewing and revising budget requests Negotiator Reaching agreement with a key supplier or labor union Informational Decisional © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–22 What Skills Do Managers Need? Technical Conceptual Interpersonal Fundamental Management Skills Diagnostic Decision Making Communication Time Management © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–23 Managerial Skills • Technical To accomplish or understand the specific kind of work being done in an organization. • Interpersonal To communicate with, understand, and motivate both individuals and groups. • Conceptual To think in the abstract. • Diagnostic To visualize the appropriate response to a situation. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–24 Managerial Skills (cont’d) • Communication To convey ideas and information effectively to others and to receive the same effectively from others. • Decision-Making To recognize and define problems and opportunities and then to select an appropriate course of action to solve problems and capitalize on opportunities. • Time-Management To prioritize work, to work efficiently, and to delegate appropriately. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–25 Management: Science or Art? • The Science of Management Assumes that problems can be approached using rational, logical, objective, and systematic ways. Requires the use of technical, diagnostic, and decision-making skills and techniques to solve problems. • The Art of Management Making decisions and solving problems using a blend of intuition, experience, instinct, and personal insights. Using conceptual, communication, interpersonal, and time- management skills to accomplish the tasks associated with managerial activities. © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–26 Management Challenge Question • What do you say to your boss when your boss wants you to make the numbers fit the forecast? A. What do you want the numbers to be? B. Which numbers are right? which are wrong? C. No problem. If anyone asks, I’ll say that I deferred to your judgment and am using your numbers. D. What are the consequences if I refuse to do that? © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–27 1.4 Sources of Management Skills © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–28 The Scope of Management • For-Profit Organizations Large businesses Industrial firms, commercial banks, insurance firms, retailers, transportation firms, utilities, communication firms, service organizations Small businesses and start-up businesses International management • Not-for-Profit Organizations Governmental organizations—local, state, and federal Educational organizations—public and private schools, colleges, and universities Healthcare facilities—public hospitals and HMOs Nontraditional settings—community, social, spiritual groups © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–29 You’re the Manager • The Situation: The group manager that you replacing has remained on job for a short time to train you, however he did not actively involve you in daily operations. He departs permanently after today’s meeting. Morale is low because the group manager has been running a one-person show with no significant delegation or participation by other employees. The overall performance of the group appears to be far below its current capabilities. • What will you do first? • After that, what will you do next? © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–30 • • • • • • • • • • • organization management effective efficient manager decision making organizing leading controlling levels of management areas of management • • • • • • • • • • interpersonal roles informational roles decisional roles technical skills interpersonal skills conceptual skills diagnostic skills communication skills decision-making skills time-management skills © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–31