Management
And
Managers
Management Defined
• Management
The process of working with and through
others to achieve organizational objectives in
a changing environment.
Management entails the effective and efficient
use of limited resources.
Key Aspects of the Management Process
Working with and
Through Others
• Management is a social process in which
managers get things done by working with and
through others.
• Shortcomings of “derailed” managers
Problems with interpersonal relationships
Failure to meet business objectives
Failure to build and lead a team
Inability to change and adapt during a transition
Achieving Organizational
Objectives
• An objective is a target to be strived for and
attained.
Challenging yet achievable objectives provide
guidance for effective and efficient actions by
individuals and organizations.
Efficiency
versus
Effectiveness
Source: Van Fleet, David D., Contemporary Management, Second
Edition. Copyright © 1991 by Houghton Mifflin Company. Used with
permissions.
1–6
Efficiency and Effectiveness
Balancing Effectiveness and Efficiency
Balancing Effectiveness and Efficiency (cont’d)
Balancing Effectiveness and Efficiency (cont’d)
Making the Most of Limited Resources
• We live in a world of scarcity.
• There is a lopsided use of resources.
• Our planet is becoming increasingly
crowded.
• Over 80% of the world’s population lives in
poor and less-developed countries.
• Managers are responsible for the efficient
and effective use of the basic factors of
production–land, labor, and capital.
Coping with a Changing Environment
• Five Major Sources of Change for Today’s
Managers
Globalization
Environmentalism
An ethical reawakening
The Internet and the e-business revolution
The evolution of product quality
Managing Effectively:
Three Critical Challenges
Management Challenges
for the 21st Century
CHANGE
Four Realities of
Managing Today
1. The only certainty today is change.
2. Speed, teamwork, and flexibility are the orders
of the day.
3. Managers at all levels need to stay close to
the customer.
4. Without continuous improvement and lifelong
learning, there can be no true economic
progress.
What Is an Organization?
• Organization
A systematic arrangement of people brought together
to accomplish some specific purpose;
applies to all organizations—for-profit as well as not-
for-profit organizations.
Where managers work (manage)
• Common characteristics
Goals
Structure
People
Common Characteristics
of Organizations
People Differences
• Operatives
People who work directly on a job or task and have
no responsibility for overseeing the work of others
• Managers
Individuals in an organization who direct the activities
of others
Who is a Manager?
• Someone whose primary responsibility is to
carry out the management process.
• Someone who plans and makes decisions,
organizes, leads, and controls
human, financial, physical,
and information resources.
1–18
TYPES OF MANAGERS
BY LEVEL AND RESPONSIBILITY
Top
Vertical Levels
Of
Management Middle
First-Line
Engineering
Operations
Accounting
Resources
Finance
Human
Horizontal Responsibility Areas
Differences Among Managers
• The Three Levels of Management
Top managers
CEO, president, or vice president
Middle managers
Sales manager, branch manager, or department head
First-line managers
Crew leader, supervisor, head nurse, or office manager
Individual Contributors (ICs)
Non-management operative employees
– Workers in the organization who are supervised by first-line
managers.
Professionals/Specialists/Technicians (Knowledge
Workers)
Management Levels and Functional Areas
SOME
ORGANIZATIONS
“FLIP” THIS CHART
UPSIDE DOWN
INDIVIDUAL CONTRIBUTORS OFTEN REPORT ANYWHERE
Types of Managers
• General Managers
Supervise the activities of several departments.
• Functional Managers
Supervise the activities of related tasks.
Common functional areas:
Marketing/Sales/Product Development
Operations/Production/Services Delivery
Finance/Accounting
Human Resources/personnel management
Infrastructure (IT, Real Estate, Legal)
• Project Managers
Coordinate employees across several functional departments
to accomplish a specific task.
What Managers Do
• Managerial activities differ by
The functions managers serve
The roles in which managers operate
The dimensions of each manager’s job
Skills Approach
Management in Organizations
Planning
and decision Organizing
making
Inputs from the environment
• Human resources Goals attained
• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources
Controlling Leading
Managerial Functions
Management
Process
Activities
Management Process
• Planning
Includes defining goals, establishing strategy, and
developing plans to coordinate activities
• Organizing
Includes determining what tasks
to be done, who is to do them,
how the tasks are to be
grouped, who reports to
whom, and where
decisions are to be made
Management Process
• Leading
Includes motivating employees, directing the activities
of others, selecting the most effective communication
channel, and resolving conflicts
• Controlling
The process of monitoring performance,
comparing it with goals, and
correcting any significant
deviations
Distribution of Time per Activity by
Organizational Level
Source: Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll,
“The Job(s) of Management,” Industrial Relations 4, No.2 (1965), p.103.
What Managers Do
• Managerial activities differ by
The functions managers serve
The roles in which managers operate
The dimensions of each manager’s job
Skills Approach
What Managers Actually Do (Mintzberg)
• Interaction
with others
with the organization
with the external context
of the organization
• Reflection
thoughtful thinking
• Action
practical doing
Mintzberg’s Managerial Roles
Role: A set of expectations of how one will behave
in a given situation.
• Interpersonal • Decisional
Figurehead Entrepreneur
Leader Disturbance hander
Liaison Resource allocator
• Informational Negotiator
Monitor
Disseminator
Spokesperson
Source: Adapted from The Nature of Managerial Work (paperback) by H. Mintzberg, Table 2, pp.92–93.
Copyright © 1973 Addison Wesley Longman. Reprinted by permission of Addison Wesley Longman.
Mintzberg’s Managerial Roles
Mintzberg’s Managerial Roles (cont’d)
Mintzberg’s Managerial Roles (cont’d)
What Managers Do
• Managerial activities differ by
The functions managers serve
The roles in which managers operate
The dimensions of each manager’s job
Skills Approach
Managerial Job Dimensions
Demands • Activities or duties that must
be carried out
• Standards or levels of
minimum performance that
must be met.
Managerial Job Dimensions
Demands • Factors that limit the
response of the manager
Time
Constraints Budgets
Technology
Attitudes of subordinates
Legal regulations
Managerial Job Dimensions
Demands • Discretionary behavior
How work is to be done
How much work is to be done
Constraints Who will do the work
What initiatives will be
Choices undertaken from almost
infinite possibilities
What Managers Do
• Managerial activities differ by
The functions managers serve
The roles in which managers operate
The dimensions of each manager’s job
Skills Approach
What Skills Do Managers Need?
Interpersonal skills
Sensitivity
Persuasiveness
Empathy
Technical skills Conceptual skills
Specialized knowledge Logical reasoning
(Including when and Judgment
how to use the skills) Analytical abilities
Importance of Managerial Skills at
Different Organizational Levels
Interpersonal skills
High
Technical skills
Importance
Conceptual skills
Low
Entry Level Mid-Level Top Level
Managers Managers Managers
What Do Successful
and
Effective Managers Do?
What does it take to
become a
Successful
(and Effective) Manager?
What Does It Take to Be a Successful
Manager?
• Management Qualities (Survey of Execs.)
Integrity, industriousness, and the ability to
get along with people
• Management Skills
Technical
Human and communication (Teaming)
Conceptual and decision-making skills
“Systems Thinking” & “Critical Thinking”
• The Ghiselli Study (6 Traits of Manager
Success – Inverse Order)
6) Initiative, 5)self-assurance,4) decisiveness, 3)
intelligence, 2) need for occupational
achievement, and 1) supervisory ability
Is The Manager’s Job Universal?
• Level in the organization
Do managers manage differently based on where they are in the
organization?
• Profit versus not-for-profit
Is managing in a commercial enterprise different than managing
in a non-commercial organization?
• Size of organization
Does the size of an organization affect how managers function in
the organization?
• Management concepts and national borders
Is management the same in all economic, cultural, social and
political systems?
Microsoft Case Questions
1.Which type of resource played 4. Bill Gates' participation in and
the most important role in the coordination of small units and his
success of Microsoft? delegation of authority to
a. human c. financial managers to run their departments
b. physical d. informational are examples of the __
management function.
2. Which of the management skills a. planning c. leading
is stressed most in the case b. organizing d. controlling
study?
a. technical 5. Which primary management role
b. human and communication did Bill Gates use to achieve
success?
c. conceptual and decision-
making a. interpersonal-leader
b. informational-monitor
3. Which of the management c. decisional-negotiator
functions is stressed most in the
case study? 6. Bill Gates is at which level of
a. planning c. leading management?
b. organizing d. controlling a. top b. middle c. first-line
Microsoft Case
7. Which type of manager is Bill 10. Would Ghiselli (6 Traits – page
Gates? 10) agree that Bill Gates has
a. general supervisory ability?
b. functional a. Yes b. No
c. project
11. Give examples of some of the
8. Bill Gates has greater need for tasks Bill Gates performs in each
which skills? of the four management functions.
a. technical rather than conceptual 12. Give examples of some of the
b. conceptual rather than technical tasks Bill Gates performs in each
of the three management roles.
c. a balance of both
13. Do you think you would like to
9. How does Bill Gates spend most of work tor Bill Gates? Explain your
his time? answer.
a. planning and organizing
b. leading and controlling 14. Are Bill Gates and Microsoft
ethical and socially responsible?
c. a balance of both a and b
Why Study Management?
• The Value of Studying Management
The universality of management
Good management is needed in all organizations.
The reality of work
Employees either manage or are managed.
Rewards and challenges of being a manager
Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
Successfulmanagers receive significant monetary
rewards for their efforts.
Ethical Problems
in the Workplace
• Lying to supervisors
• Lying on reports or falsifying records
• Stealing and theft
• Sexual harassment
• Abusing drugs or alcohol
• Conflict of interest
How The Manager’s Job Is Changing
• The Increasing Importance of Customers
Customers: the reason that organizations exist
Managing customer relationships is the responsibility of
all managers and employees.
Consistent high quality customer service is essential for
survival.
• Innovation
Doing things differently, exploring new territory, and
taking risks
Managers should encourage employees to be aware of
and act on opportunities for innovation.
Changes Impacting
the Manager’s Job
How Much Importance Does the
Marketplace put on Managers?
• Good (effective) managerial skills are a scarce
commodity.
Managerial compensation packages are one measure
of the value that organizations place on them.
Management compensation reflects the market forces
of supply and demand.
Management superstars, like superstar athletes in
professional sports, are wooed with signing bonuses,
interest-free loans, performance incentive packages,
and guaranteed contracts.
Universal Need for Management
Rewards and Challenges of Being A Manager
Small-Business Management
• What is a Small Business?
An independently owned and managed profit-seeking
enterprise with fewer than 100 employees.
• Exploding Myths About Small Businesses
The 80-percent-failure-rate myth
Research shows a failure rate of only 18 percent for
small businesses over an 8-year period.
Low-wage-jobs myth
Rapidly growing small businesses (“gazelles”)
accounted for 56% of new job growth and added to the
majority of high paying jobs from 1980 to 1990.
Entrepreneurship
• Entrepreneurship
The process by which individuals–either on their own
or inside organizations–pursue opportunities without
regard to the resources they currently control.
• Entrepreneur’s Dilemma
Either grow with the company or have the courage to
step aside and turn control over to professional
managers with the requisite administrative skills.
Entrepreneurship
• Traits of Entrepreneurs
Focus is on envisioned futures.
Emphasize external/market dimensions.
Display a medium-to-high tolerance for ambiguity.
Exhibit moderate-to-high risk-taking behavior.
Obtain motivation from a need to achieve.
Possess technical knowledge and experience in the
innovative area.
The Changing Organization
Importance of
Managerial Roles
in Small and Large
Businesses
Source: Adapted from J. G. P. Paolillo, “The Manager’s Self Assessments of Managerial Roles:
Small vs. Large Firms,” American Journals of Small Business, January–March 1984, pp.61–62.
Lecture Outline and Line Art
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