Bus 201 chapter 1 presentation 129627294097993750


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  • Resources includes people, know-how and experience, machinery, raw materials, computers and IT, patents, financial capital, and loyal customers and employees
  • Chief executive officer (CEO) is company’s most senior and important manager Central concern is creation of a smoothly functioning top-management team CEO, COO, Department heads
  • Top managers require the best conceptual skills because their primary responsibilities are planning and organizing.
  • For example, Dell developed a core competency in materials management that allowed it to make PCs for less than its competitors.
  • Restructuring can reduce the morale of remaining employees Outsourcing increases efficiency by lowering operating costs, freeing up money and resources that can now be used in more effective ways Lots of jobs in IT have moved abroad to countries like India, China and Russia.
  • Self-managed team - Groups of employees who assume collective responsibility for organizing, controlling, and supervising their own work activities
  • Global organization: organization that operate and compete in more than one country.
  • Bus 201 chapter 1 presentation 129627294097993750

    1. 1. Chapter One Managers and Managing McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
    2. 2. What is Management? <ul><li>All managers work in organizations </li></ul><ul><li>Organizations </li></ul><ul><ul><li>collections of people who work together and coordinate their actions to achieve a wide variety of goals or desired future outcomes. </li></ul></ul>
    3. 3. What is Management? <ul><li>Managers </li></ul><ul><ul><li>The people responsible for supervising the use of an organization’s resources to meet its goals </li></ul></ul>
    4. 4. What is Management? <ul><li>Management </li></ul><ul><ul><li>The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently </li></ul></ul>
    5. 5. ORGANIZATIONAL PERFORMANCE <ul><li>Organizational performance is how effectively and efficiently a man a ger uses resources to satisfy customers and reach organizational goals. </li></ul>
    6. 6. Organizational Performance <ul><li>Efficiency </li></ul><ul><ul><li>A measure of how well or how productively resources are used to achieve a goal </li></ul></ul><ul><li>Effectiveness </li></ul><ul><ul><li>A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved. </li></ul></ul><ul><li>Organizations are efficient when managers minimize the amount of input resources such as labor, raw materials and component parts, or the amount of time needed to produce a given output of goods and services. </li></ul><ul><li>Organizations are effective when managers choose appropriate goals and then achieve them. </li></ul>
    7. 7. Efficiency and Effectiveness Figure 1.1
    8. 8. Why Study Management? <ul><li>The more efficient and effective use of scarce resources that organizations make of those resources, the greater the relative well-being and prosperity of people in that society </li></ul>
    9. 9. Why Study Management? <ul><li>Helps people deal with their bosses and coworkers </li></ul><ul><li>Opens a path to a well-paying job and a satisfying career </li></ul>
    10. 10. Four Functions of Management Figure 1.2
    11. 11. Steps in the Planning Process <ul><li>Deciding which goals the organization will pursue </li></ul><ul><li>Deciding what courses of action to adopt to attain those goals </li></ul><ul><li>Deciding how to allocate organizational resources </li></ul><ul><li>The outcome of planning is a STRATEGY. </li></ul>
    12. 12. Organizing <ul><li>Involves grouping people into departments according to the kinds of job-specific tasks they perform </li></ul><ul><li>Managers lay out lines of authority and responsibility </li></ul><ul><li>Decide how to coordinate organizational resources </li></ul><ul><li>The outcome of organizing is the creation of an ORGANIZATIONAL STRUCTURE. </li></ul>
    13. 13. Organizing <ul><li>Organizational structure </li></ul><ul><ul><li>A formal system of task and reporting relationships that coordinates and motivates members so that they work together to achieve organizational goals </li></ul></ul>
    14. 14. Leading <ul><li>Leadership involves using power, personality, and influence, persuasion, and communication skills </li></ul><ul><li>It revolves around encouraging all employees to perform at a high level </li></ul><ul><li>Outcome of leadership is highly motivated and committed workforce </li></ul>
    15. 15. Controlling <ul><li>The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness </li></ul><ul><li>Managers must decide which goals to measure </li></ul>
    16. 16. Performing Managerial Tasks <ul><li>Mintzberg identified ten managerial roles through observation . </li></ul><ul><li>He grouped these roles according to whether the responsibility was primarily decisional, interpersonal or informational in nature. </li></ul>
    17. 17. Decisional Roles <ul><li>Roles associated with methods managers use in planning </li></ul><ul><li>strategy and utilizing resources . </li></ul><ul><ul><li>Entrepreneur — deciding which new projects or programs to initiate and to invest resources in. </li></ul></ul><ul><ul><li>Disturbance handler —managing an unexpected event or crisis. </li></ul></ul><ul><ul><li>Resource allocator — assigning resources between functions and divisions, setting the budgets of lower managers. </li></ul></ul><ul><ul><li>Negotiator —reaching agreements between other managers, unions, customers, or shareholders. </li></ul></ul>
    18. 18. Interpersonal Roles <ul><li>Roles that managers assume to provide direction and </li></ul><ul><li>supervision to both employees and the organization as a </li></ul><ul><li>whole . </li></ul><ul><ul><li>Figurehead — symbolizing the organization’s mission and what it is seeking to achieve. </li></ul></ul><ul><ul><li>Leader — training, counseling, and mentoring high employee performance. </li></ul></ul><ul><ul><li>Liaison —linking and coordinating the activities of people and groups both inside and outside the organization. </li></ul></ul>
    19. 19. Informational Roles <ul><li>Roles associated with the tasks needed to obtain and </li></ul><ul><li>transmit information in the process of managing the </li></ul><ul><li>organization . </li></ul><ul><ul><li>Monitor — analyzing information from both the internal and external environment. </li></ul></ul><ul><ul><li>Disseminator — transmitting information to influence the attitudes and behavior of employees. </li></ul></ul><ul><ul><li>Spokesperson — using information to positively influence the way people in and out of the organization respond to it. </li></ul></ul>
    20. 20. Levels and skills of managers <ul><li>To perform the four managerial tasks efficiently and effectively, organizations differentiate or group their managers in two main ways: </li></ul><ul><ul><li>By level in hierarchy </li></ul></ul><ul><ul><li>By type of skill </li></ul></ul>
    21. 21. Levels of Management Figure 1.3
    22. 22. Levels of Management <ul><li>First-line managers </li></ul><ul><ul><li>responsible for the daily supervision of the nonmanagerial employees </li></ul></ul><ul><ul><li>often called supervisors </li></ul></ul><ul><li>Middle managers </li></ul><ul><ul><li>responsible for finding the best way to organize human and other resources to achieve organizational goals </li></ul></ul>
    23. 23. Levels of Management <ul><li>Top managers </li></ul><ul><ul><li>responsible for the performance of all departments </li></ul></ul><ul><ul><li>establish organizational goals </li></ul></ul><ul><ul><li>decide how different departments should interact </li></ul></ul><ul><ul><li>monitor how well middle managers utilize resources to achieve goals </li></ul></ul><ul><ul><li>Top management team : consists of CEO, COO, the president, and the heads of the most important departments. </li></ul></ul>
    24. 24. Areas of Managers <ul><li>Department </li></ul><ul><ul><li>A group of managers and employees who work together and possess similar skills or use the same knowledge, tools, or techniques </li></ul></ul>
    25. 25. Relative Amount of Time That Managers Spend on the Four Managerial Functions Figure 1.4
    26. 26. Managerial Skills <ul><li>Conceptual skills </li></ul><ul><ul><li>The ability to analyze and diagnose a situation and distinguish between cause and effect. </li></ul></ul><ul><li>Human skills </li></ul><ul><ul><li>The ability to understand, alter, lead, and control the behavior of other individuals and groups. The ability to communicate, coordinate, motivate people, mold them into cohesive teams… </li></ul></ul><ul><li>Technical skills </li></ul><ul><ul><li>Job-specific skills required to perform a particular type of work or occupation at a high level. </li></ul></ul>
    27. 27. Core Competency <ul><li>Core competency </li></ul><ul><ul><li>Specific set of departmental skills, abilities, knowledge and experience that allows one organization to outperform its competitors </li></ul></ul><ul><ul><li>Skills for a competitive advantage </li></ul></ul>
    28. 28. Re cent changes in management practices <ul><li>As a result of changes in global competition and advances in IT, the tasks and responsibilities of managers have been changing dramatically in recent years. </li></ul><ul><li>There is increased pressure on managers to improve efficiency and effectiveness. </li></ul>
    29. 29. Re cent changes in management practices <ul><li>To increase efficiency and effectiveness, managers have been restructuring organizations and outsourcing specific organizational activities. </li></ul><ul><li>Restructuring </li></ul><ul><ul><li>Involves simplifying, shrinking, or downsizing an organization’s operations to lower operating costs </li></ul></ul><ul><li>Outsourcing </li></ul><ul><ul><li>Contracting with another company, usually in a low cost country abroad, to perform a work activity the company previously performed itself </li></ul></ul>
    30. 30. Re cent changes in management practices <ul><li>Another way to increase efficiency and effectiveness is enpowerment or forming self-managed teams. </li></ul>
    31. 31. Re cent changes in management practices <ul><li>Empowerment </li></ul><ul><ul><li>Involves giving employees more authority and responsibility over the way they perform their work activities </li></ul></ul><ul><li>Self-managed team </li></ul><ul><ul><li>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. </li></ul></ul>
    32. 32. Challenges for Management in a Global Environment <ul><li>Rise of Global Organizations. </li></ul><ul><li>Building a Competitive Advantage </li></ul><ul><li>Maintaining Ethical Standards </li></ul><ul><li>Managing a Diverse Workforce </li></ul><ul><li>Utilizing Information Technology and E-Commerce </li></ul><ul><li>Global Crisis Management </li></ul>
    33. 33. Building Competitive Advantage <ul><li>Competitive Advantage </li></ul><ul><ul><li>ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors </li></ul></ul>
    34. 34. Building Blocks of Competitive Advantage Figure 1.6
    35. 35. Turnaround Management <ul><li>Turnaround management </li></ul><ul><ul><li>creation of a new vision for a struggling company using a new approach to planning and organizing to make better use of a company’s resources to allow it to survive, and eventually prosper </li></ul></ul>
    36. 36. Maintaining Ethical and Socially Responsible Standards <ul><li>Managers are under considerable pressure to make the best use of resources </li></ul><ul><li>Too much pressure may induce managers to behave unethically, and even illegally </li></ul>
    37. 37. Managing a Diverse Workforce <ul><li>To create a highly trained and motivated workforce managers must establish HRM procedures that are legal, fair and do not discriminate against organizational members </li></ul>