Bab 1-Introduction to Management

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    Chapter 1

    Introduction to

    Management and Organizations

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    Learning OutlineAfter you read this chapter you should know the following

    learning objectives:

    #1: What Makes Someone A Manager?

    #2: What Is Management and What DoManagers Do?

    #3: What Characteristics Define AnOrganization?

    #4: What Are The Challenges To

    Managing? #5: Does Studying Management Make A

    Difference?

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    Defining the Managers Terrain

    Managers:

    Coordinate work activities to achieve organizationalgoals.

    Their ability to act is affected by both the internal culture

    of the organization and the constraints of the external

    environment including the global environment.

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    Defining the Managers Terrain

    Managers:

    Also deal with complicated ethical and social

    responsibility issues as they plan, organize,

    lead and control.

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    Who Are Managers?

    Manager

    Someone who works with and through other

    people by coordinating their work activities inorder to accomplish organizational goals

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    Types of Managers

    First-line Managers Managers at the lowest level manage the work of non-

    managerial employees directly or indirectly involved withthe production or creation of the organizations products.

    Middle Managers Managers between the first-line level and the top level of

    the organization who manage the work of first-linemanagers

    Top Managers Managers at or near the top level are responsible for

    making organization-wide decisions and establishingplans and goals affecting the entire organization

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    Exhibit 1.1 Managerial Levels

    Top

    ManagersMiddle Managers

    First-Line Managers

    Nonmanagerial Employees

    Top

    ManagersMiddle Managers

    First-Line Managers

    Nonmanagerial Employees

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    Efficiency and Effectiveness

    Managerial Concerns

    Efficiency

    Doing things right

    Getting the most output from the least amount of

    inputs

    Effectiveness

    Doing the right things

    Completing activities so that organizational

    goals are achieved

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    Exhibit 1.2 Efficiency and

    Effectiveness in Management

    GoalAttainment

    Effectiveness (Ends)

    ResourceUsage

    Management Strives for:Low Resource Waste (high efficiency)

    High Goal Attainment (high effectiveness)

    Efficiency (Means)

    Low Waste High Attainment

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    Management Functions

    According to the functions approach, managers

    perform certain activities or duties as they

    efficiently and effectively coordinate the work

    of others.

    Henry Fayol first proposed that all managers

    perform five functions: planning, organizing,

    commanding, coordinating and controlling.

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    Exhibit 1.3 Management Functions

    Planning

    Defining goals,

    establishingstrategy, anddevelopingsub-plans tocoordinateactivities

    Lead to

    Organizing

    Determining

    what needsto be done,how it willbe done, andwho is to do it

    Leading

    Directing and

    motivating allinvolved partiesand resolvingconflicts

    Controlling

    Monitoring

    activitiesto ensurethat they areaccomplishedas planned

    Achieving theorganizations

    statedpurpose

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    Management Roles

    Henry Mintzbergs Management Roles Approach

    (Exhibit 1.4)

    Interpersonal roles

    Figurehead, leader, liaison

    Informational roles

    Monitor, disseminator, spokesperson

    Decisional roles

    Entrepreneur, disturbance handler, resource allocator,

    negotiator

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    Management Roles

    Robert Katz Management Skills Approach

    Technical skills

    Knowledge and proficiency in a specific field

    Human skills

    The ability to work well with other people

    Conceptual skills

    The ability to think and conceptualize about abstract and

    complex situations concerning the organization

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    Exhibit 1.5 Skills Needed at Different

    Management Levels

    TopManagers

    MiddleManagers

    Lower-level

    Managers

    Importance

    Conceptual

    SkillsHumanSkills

    TechnicalSkills

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    What Is an Organization?

    An Organization Defined

    A deliberate arrangement of people who act

    together to accomplish some specific purpose

    Common Characteristics of Organizations

    Distinct purpose

    Composed of people

    Deliberate structure

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    Exhibit 1.6 Characteristics of

    Organizations

    DeliberateStructure

    DistinctPurpose

    People

    DeliberateStructure

    DistinctPurpose

    People

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    Exhibit 1.7 The Changing

    OrganizationTraditional Stable

    Inflexible

    Job-focused

    Work is defined by job positions Individual-oriented

    Permanent jobs

    Command-oriented

    Managers always make decisions

    Rule-oriented

    Relatively homogeneous workforce Workdays defined as 9 to 5

    Hierarchical relationships

    Work at organizational facilityduring specific hours

    New Organization Dynamic

    Flexible

    Skills-focused

    Work is defined in terms of tasks to bedone

    Team-oriented

    Temporary jobs

    Involvement-oriented

    Employees participate in decisionmaking

    Customer-oriented

    Diverse workforce

    Workdays have no time boundaries

    Lateral and networked relationships

    Work anywhere, anytime

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    The Types of Organizations

    Managers and employees work in a variety of sizes of

    organizations

    Large organizations represent only 2% of the organizations in

    Canada

    Small business represent 98% of all Canadian companies Managers and employees work in a variety of organizations, and

    the type of organization has an impact on what managers can do

    Publicly held organizations

    Privately held organizations

    Public sector organizations

    Crown Corporations

    Subsidiaries of foreign organizations (e.g., Sears, Safeway,

    General Motors, and Ford Motor Company)

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    Challenges to Managing

    Ethics

    Rules and principles that define right and wrong

    behaviour Increased emphasis on ethics education seen in

    university and college curriculums

    Increased creation and use of codes of ethics by

    businesses currently

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    Challenges to Managing

    Workforce Diversity

    The mix of people in organizations in terms of

    gender, race, ethnicity, disability, sexual

    orientation, age, demographic characteristicssuch as education and socio-economic status

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    Challenges to Managing

    Globalization

    Management in international organizations

    Political and cultural challenges of operating in aglobal market

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    Challenges to Managing

    Managing in an E-Business World

    The work performed by an organization using

    electronic linkages to its key constituencies E-commerce: the sales and marketing component

    of an e-business

    Categories ofE-businesses

    E-businessenhanced organization E-businessenabled organization

    Total e-business organization

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    Exhibit 1.8 Categories of

    E-Business Involvement

    E-business units withintraditional organization

    E-BusinessEnhancedOrganization

    E-business tools andapplications usedwithin traditional

    organization

    E-BusinessEnabled

    Organization

    Organizations entirework processes revolve

    around e-business model

    Total E-BusinessOrganization

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    Challenges to Managing

    Customers

    Customers have more opportunities than ever

    before Delivering consistent high-quality service is

    essential

    Managers need to create customer-responsive

    organizations

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    Challenges to Managing

    Innovation

    Nothing is more risky than not innovating

    Doing things differently, exploring new territory,and taking risks

    Managers need to encourage all employees to be

    innovative

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    Challenges to Managing

    Knowledge Management

    The cultivation of a learning culture where

    organizational members systematically gatherand share knowledge with others in order to

    achieve better performance

    Learning Organization

    An organization that has developed the capacity

    to continuously learn, adapt, and change

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    Exhibit 1.9 Learning Organization vs.

    Traditional Organization

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    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

    Self-employment

    Running your own business rather than working for

    someone else

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    Exhibit 1.10 Universal Need for

    Management

    All Sizes of Organizations

    Small Large

    All Types of Organizations

    Profit Not-for-Profit

    All Organization Levels

    Bottom Top

    ManagementIs Needed

    in...

    All Organizational AreasManufacturing Marketing

    Human Resources AccountingInformation Systems etc.

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    Summary and Implications

    What makes someone a manager?

    Managers work with and through other people by

    coordinating employee work activities in order toaccomplish organizational goals.

    What is management and what do managers

    do?

    Management is coordinating work activities so

    that they are done efficiently and effectively.

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    Summary and Implications

    What characteristics define an organization?

    Managers work in a variety of organizations both large

    and small within various industries

    What are the challenges to managing?

    The greatest managerial challenge is the crisis in ethical

    responsibility damaging todays organizations

    Does studying management make a difference?

    Understanding management helps us to improve

    organizations