The
Management
Process Today
Chapter One
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Learning Objectives
LO1-1 Describe what management is, why management is
important, what managers do, and how managers
utilize organizational resources efficiently and
effectively to achieve organizational goals
LO1-2 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
LO1-3 Differentiate among three levels of management, and
understand the tasks and responsibilities of managers
at different levels in the organizational hierarchy
1-2
Learning Objectives
LO1-4 Distinguish between three kinds of managerial skill,
and explain why managers are divided into different
departments
LO1-5 Discuss some major changes in management practices
today that have occurred as a result of globalization
and the use of advanced information technology (IT)
LO1-6 Discuss the principal 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
1-6
Achieving High Performance
Organizational Performance
 A measure of how efficiently and effectively
managers use organizational resources to satisfy
customers and achieve organizational goals
1-7
Efficiency, Effectiveness, and
Performance in an Organization
Figure 1.1
1-8
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 the
organization achieves
those goals.
1-9
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
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
3.
those goals
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 in a way that
allows organizational members to work together
to achieve organizational goals
1-15
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 and energizing and
enabling organizational members so they
understand the part they play 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
1-20
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
1-21
Levels of Management
Top managers
 establish organizational goals, decide how
departments should interact, and monitor the
performance of middle managers
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
 A group composed of the CEO, the COO, and the
vice presidents of the most important
departments of a company.
1-25
Question?
Which management skill is the ability to
understand, alter, lead, and control the behavior
of other individuals and groups?
A. Conceptual
B. Human
C. Technical
D. Technological
1-26
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.
1-27
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. SKAs
C. Competencies
D. Skill traits
1-28
Technical Skills
Core competency
 Specific set of skills, abilities, and experiences that
allows one organization to outperform its
competitors
1-29
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
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
1-32
Empowerment and
Self-Managed Teams
Empowerment
 Expansion of
employees’
knowledge, tasks,
and decision-making
responsibilities
1-33
Empowerment and
Self-Managed Teams
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.
1-34
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
1-35
Challenges for Management in
a Global Environment
Global organizations
 organizations that operate and compete in more
than one country
1-36
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
1-39
Video: Fed Ex
How do the managers at the FedEx Super-hub
use planning, organizing, leading and
controlling to sort one million nightly boxes
and letters?
1-40