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Management INTRODUCTION Chapter TO MANAGEMENT 1 ANDPresented by: Elbert M. Areja ORGANIZATIONSMasters in ManagementFebruary 22, 2012 1–1

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LEARNING OUTCOMESTHE OUTLINE OF THIS REPORT1.1 Who Are Managers? • Explain how managers differ from non- managerial employees. • Describe how to classify managers in organizations.1.2 What Is Management? • Define management. • Explain why efficiency and effectiveness are important to management. 1–2

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LEARNING OUTCOMES1.3 What Do Managers Do? • Describe the four functions of management. • Explain Mintzberg’s managerial roles. • Describe Katz’s three essential managerial skills and how the importance of these skills changes depending on managerial level. • Discuss the changes that are impacting manager’s jobs. • Explain why customer service and innovation are important to the manager’s job. 1–3

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LEARNING OUTCOMES1.4 What Is An Organization? • Explain the characteristics of an organization. • Describe how today’s organizations are structured.1.5 Why Study Management? • Discuss why it’s important to understand management. • Explain the universality of management concept. • Describe the rewards and challenges of being a manager. 1–4

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WHO ARE MANAGERS? Manager  Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished. 1–5

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CLASSIFYING MANAGERS First-line Managers  Individuals who manage the work of non-managerial employees. Middle Managers  Individuals who manage the work of first-line managers. Top Managers  Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization. 1–6

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MANAGERIAL LEVELS 1–7

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WOMEN IN MANAGERIAL POSITIONS AROUND THE WORLD Women in Women in Top Management Manager’s Job Australia 41.9 percent 3.0 percent Canada 36.3 percent 4.2 percent Germany 35.6 percent N/A Japan 10.1 percent N/A Philippines 57.8 percent N/A United States 50.6 percent 2.6 percent 1–8

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WHAT IS MANAGEMENT? Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. 1–9

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MANAGEMENT: DEFINITION Acc to Harold Koontz: Management is the art of getting things done through & with an formally organized group Acc to Henry Fayol: To manage is to forecast & plan, to organize, to compound, to co-ordinate and to control PODSCORB:- Planning, Organizing, Directing, Staffing, Co ntrolling, Co-ordinating, Reporting & Budgeting

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HENRY FAYOL (1841-1925) Was a french industrialist Given :  Elements of Management- Planning, Organizing, Commanding, Co- ordination & Control  Qualities of Manager: Physical, Mental, Moral, General Education, Special Knowledge & Experience  Principles of Management

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PRINCIPLES OF MANAGEMENT Division of work Authority & responsibilty Discipline Unity of command Unity of direction Subordinate of individual interest to group interest Remuneration of personnel Centralization Scalar Chain

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PRINCIPLES OF MANAGEMENT Order Equity Stability of tenure of personnel Initiative Espirit De Corps

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FEATURES OF MANAGEMENT Art as well as Science Management is an activity Management is a continuous process Management achieving pre-determined objectives Organized activities Management is a factor of production Management as a system Management is a discipline

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FEATURES OF MANAGEMENT Management is a distinct entity Management aims at maximising profit Management is a purposeful activity Management is a profession Universal application Management is getting things done Management is needed at all levels

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WHAT IS MANAGEMENT? Managerial Concerns  Efficiency  “Doing things right”  Getting the most output for the least inputs  Effectiveness  “Doing the right things”  Attaining organizational goals 1–16

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EFFECTIVENESS AND EFFICIENCY IN MANAGEMENT 1–17

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WHAT MANAGERS DO? Three Approaches to Defining What Managers Do.  Functions they perform.  Roles they play.  Skills they need. 1–18

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WHAT MANAGERS DO? Functions Manager’s Perform  Planning  Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.  Organizing  Arrangingand structuring work to accomplish organizational goals.  Leading  Working with and through people to accomplish goals.  Controlling  Monitoring, comparing, and correcting work. 1–19

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MANAGEMENT FUNCTIONS 1–20

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MANAGEMENTFUNCTIONSManagement Functions:planning, organizing,leading, and controlling

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DISTRIBUTION OF TIME PER ACTIVITY BY ORGANIZATIONAL LEVELSource: 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.

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WHAT MANAGERS DO? Roles Manager’s Play  Roles are specific actions or behaviors expected of a manager.  Mintzberg identified 10 roles grouped around interpersonal relationships, the transfer of information, and decision making. 1–23

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WHAT MANAGERS DO? Management Roles (Mintzberg)  Interpersonal roles  Figurehead, leader, liaison  Informational roles  Monitor, disseminator, spok esperson  Decisional roles  Entrepreneur, disturbance handler, resource allocator, negotiator 1–24

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WHAT MANAGERS DO (MINTZBERG)  Actions  thoughtful thinking  practical doing 1–25

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Mintzberg’s Managerial Roles  Interpersonal Roles • Figurehead • Leader • Liaison  Interpersonal Roles • Monitor • Disseminator • Spokesperson  Decisional Roles • Entrepreneur • Disturbance handler • Resource allocator • NegotiatorAdapted from Mintzberg, Henry,The Nature of Managerial Work,1st Edition, © 1980, pp. 93–94.. 1–26

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WHAT MANAGERS DO? Skills Managers Need  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 1–27

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SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS 1–28

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CONCEPTUAL SKILLS • Ability to use information to solve business problems • Identification of opportunities for innovation • Recognition of problem areas and implementation of solutions • Selection of critical information from masses of data • Understanding of business uses of technology • Understanding of organization’s business modelSource: Based on American Management Association Survey of Managerial Skills andCompetencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002. 1–29

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COMMUNICATION SKILLS • Ability to transform ideas into words and actions • Credibility among colleagues, peers, and subordinates • Listening and asking questions • Presentation skills; spoken format • Presentation skills; written and/or graphic formatsSource: Based on American Management Association Survey of Managerial Skills andCompetencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002. 1–30

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EFFECTIVENESS SKILLS • Contributing to corporate mission/departmental objectives • Customer focus • Multitasking: working at multiple tasks in parallel • Negotiating skills • Project management • Reviewing operations and implementing improvementsSource: Based on American Management Association Survey of Managerial Skills andCompetencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002. 1–31

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INTERPERSONAL SKILLS • Coaching and mentoring skills • Diversity skills: working with diverse people and cultures • Networking within the organization • Networking outside the organization • Working in teams; cooperation and commitmentSource: Based on American Management Association Survey of Managerial Skills andCompetencies, March/April 2000, found on AMA Web site (www.amanet.org), October 30, 2002. 1–32

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MANAGEMENT SKILLS AND MANAGEMENT FUNCTION MATRIX Exhibit 1.7 1–33

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HOW THE MANAGER’S JOB ISCHANGING 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. 1–34

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CHANGESIMPACTINGTHE MANAGER’SJOB 1–35

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WHAT IS AN ORGANIZATION? An Organization Defined A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone). Common Characteristics of Organizations  Have a distinct purpose (goal)  Composed of people  Have a deliberate structure 1–36

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CHARACTERISTICS OF ORGANIZATIONS

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THE CHANGING ORGANIZATION Exhibit 1.10 1–39

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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.  Rewards and challenges of being a manager  Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work.  Successful managers receive significant monetary rewards for their efforts. 1–40

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UNIVERSAL NEED FOR MANAGEMENT 1–41

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REWARDS AND CHALLENGES OF BEING A MANAGER 1–42