Management
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Transcript of Management
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The Management Process Today
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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 organization’s 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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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
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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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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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Types of Managers
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Relative Amount of Time That Managers Spend on the Four Managerial Functions
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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.– Entrepreneur—deciding which new projects or programs
to initiate and to invest resources in. – Disturbance handler—managing an unexpected event or
crisis.– Resource allocator—assigning resources between
functions and divisions, setting the budgets of lower managers.
– Negotiator—reaching 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.– Monitor—analyzing information from both the internal
and external environment.– Disseminator—transmitting information to influence the
attitudes and behavior of employees.– Spokesperson—using 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.– Figurehead—symbolizing the organization’s mission
and what it is seeking to achieve.– Leader—training, counseling, and mentoring high
employee performance.– Liaison—linking 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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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