Chapter 1 Management Fundamentals.ppt

1–1
Agenda and Announcements
• Agenda:
– Open Discussion on Chapter 1 “Management”
– Management Overview
– Skill Builder 2 – Page 31
– Microsoft Case – Page 29
– Questions or Discussion
– Closing
• Announcements:
– Sign In on Attendance Sheet
• Waiting List see Instructor for “Add” Codes
– Homework Due – any Problems?
• Web Q – Microsoft Case & Course Expectations
– Textbook Problems?

PowerPoint Presentation by Charlie Cook
The University of West Alabama
Copyright © 2006 Thomson Business and Economics.
All rights reserved.
Chapter 1
Managing

1–3
Copyright © 2006 Thomson Business and Economics. All rights reserved.
Features of This Book’s Three-Pronged Approach
• Features That Present Important
Concepts
– Text discussions of
management research
– Step-by-step behavior models
– Learning Outcome statements
– Key terms
– Chapter summaries and
glossaries
– Review and discussion
questions
• Features That Foster Skill
Development
– Self-assessments
– Behavior Modeling videos
– Behavior Modeling training
– Skill Builder exercises
• Features That Help You Apply
What You Learn
– Opening cases
– Organizational examples
– Work Applications
– Applying the Concept
– Objective cases
– Video cases
– Ethics and Social
Responsibility features
– Internet exercises
Exhibit 1–9

1–4
Why Study OB & Management?
• The better you can work with people, the more
successful you will be in both your personal and
your professional lives.
– Employers want to hire employees
who can participate in managing
the firm.
– Even nonmanagers (Individual
Contributors) are being trained
to perform management
functions.

1–5
Why Study OB & Management? (cont’d)
• The study of management builds the skills needed in
today’s workplace to succeed in:
– Becoming a partner in managing your organization
through participative management.
– Working in a team and sharing in decision making and
other management tasks.
• The study of management also applies directly to your
personal life in helping you to:
– Communicate with and interact with people every day.
– Make personal plans and decisions, set goals, prioritize
what you will do, and get others to do things for you.
• Society Needs Leaders and Team Players
– Be Successful in our Community, Religious, Social,
Professional, Recreational and Other Organizations.
– Become Leaders for a “Just and Humane World”

1–6
What Is a Manager’s Responsibility?
• Manager
– The individual responsible for achieving
organizational objectives through efficient and
effective utilization of resources. Participative?
• The Manager’s Resources
– Human, financial, physical, and informational
• Performance
– Means of evaluating how effectively and
efficiently managers use resources to achieve
objectives.
– Today often means “How” as well as “What”

1–7
What Does It Take to Be a Successful Manager?
Exhibit 1–2
• 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

1–8

1–9
What Do Managers Do?
• Management Functions (Different Scope at job level)
– Planning
• Setting objectives and determining in advance
exactly (?) how the objectives will be met.
• Monitor for Change and Anticipate or React
• PDCA – Plan – Do – Check - Act
– Organizing
• Delegating and coordinating tasks
and allocating resources to achieve
objectives.
– Leading
• Influencing employees to work
toward achieving objectives.
• Setting an Example (Shadow of the Leader)
– Controlling
• Establishing and implementing mechanisms to
ensure that objectives are achieved.

1–10

1–11
The Systems Relationship among the Management Functions
Exhibit 1–3
Planning
Organizing
Leading
Controlling
Management
Functions
Management
Skills

1–12
Management Roles
• Role
– A set of expectations of how one will behave in a
given situation.
• Management Role Categories (Mintzberg)
– Interpersonal
• Figurehead, leader, and liaison
– Informational
• Monitor, disseminator, and spokesperson
– Decisional
• Entrepreneur, disturbance handler, resource
allocator, and negotiator

1–13
Ten Roles Managers Play
Exhibit 1–4
Managers play various roles as necessary while performing their
management functions so as to achieve organizational objectives.

1–14

1–15
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)

1–16
Management Levels and Functional Areas
Exhibit 1–5
INDIVIDUAL CONTRIBUTORS OFTEN REPORT ANYWHERE
SOME
ORGANIZATIONS
“FLIP” THIS CHART
UPSIDE DOWN

1–17
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.

1–18
Management Skills and Functions
• Differences among management levels in skill
needed and the functions performed:
Exhibit 1–6
Planning
Organizing
Leading
Controlling

1–19

1–20
Individual Management Styles
Skill Builder 2 – Page 31
• What is Your Preferred Management Style?
• 12 Points Possible…
–Autocratic
–Consultative
–Participative
–Empowerment
–Combinations or Flexible
• Best Management Style?
– Adaptive or Situational Leadership

1–21
Differences between Large and Small Businesses
Exhibit 1–7

1–22
Differences between Large and Small Businesses (cont’d)
Exhibit 1–7 cont’d
ALSO OFTEN APPLIES TO NON-PROFITS AND CIVIC
ORGANIZATIONS, WITH FOCUS ON THEIR MISSION

1–23
New Workplace Issues and Challenges
Technology and Speed
Globalization
and Diversity
Knowledge,
Learning,
Quality, and
Continuous
Improvement
Change, Creativity, Innovation,
and Entrepreneurship
Participative
Management,
Empowerment,
and Teams
Knowledge
Management
Ethics and
Social
Responsibility
Networking and
Boundaryless
Relationships
GENERATIONAL DIFFERENCES

1–24
New Workplace Issues and Challenges (cont’d)
• Knowledge, Learning, Quality, and Continuous
Improvement
– Information is the foundation of knowledge
which, in turn, is the foundation of competitive
advantage. People (employees) are the
competitive advantage!
• Knowledge workers
• The learning organization
• Knowledge Management
– Involves everyone in an organization in sharing
knowledge and applying it to continuously
improve products and processes.

1–25
• Change, Creativity, Innovation, and
Entrepreneurship
– Knowledge management requires that people
change in order to continually improve.
– The speed of change in modern business has
increased because of globalization and changes
in technology. And other factors listed.
– Creativity is coming up with new ideas for
improvements, and innovation is implementing
those ideas.
– Entrepreneurship is about generating creative
ideas and using them through innovation.

1–26
• Participative Management, Empowerment,
and Teams
– Empowering employees to share in
performing management functions by
working in teams.
– Learning organizations manage knowledge
well by empowering teams to be creative
and innovative.
• Ethics and Social Responsibility
– Managerial integrity
• SOX Compliance after Financial Scandals
– Situational responses
• e. g. Katrina

1–27
• Networking and Boundaryless Relationships
– Electronic networks
• Beware the informality of e-mail, miss-interpreted
messages and first impressions
• Can be distracting/off task
– Relationship networks
– Virtual integration
QUESTION – ARE ELECTRONIC “TOOLS” CHANGING THE QUALITY OF
RELATIONSHIPS? E-Mail, NetMeeting, Video Conferences?

1–28
Microsoft Case Questions
1.Which type of resource played
the most important role in the
success of Microsoft?
a. human c. financial
b. physical d. informational
2. Which of the management
skills is stressed most in the
case study?
a. technical
b. human and communication
c. conceptual and decision-
making
3. Which of the management
functions is stressed most in
the case study?
a. planning c. leading
b. organizing d. controlling
4. Bill Gates' participation in and
coordination of small units and
his delegation of authority to
managers to run their
departments are examples of the
__ management function.
a. planning c. leading
b. organizing d. controlling
5. Which primary management role
did Bill Gates use to achieve
success?
a. interpersonal-leader
b. informational-monitor
c. decisional-negotiator
6. Bill Gates is at which level of
management?
a. top b. middle c. first-line

1–29
Microsoft Case
7. Which type of manager is Bill
Gates?
a. general
b. functional
c. project
8. Bill Gates has greater need for
which skills?
a. technical rather than
conceptual
b. conceptual rather than
technical
c. a balance of both
9. How does Bill Gates spend most
of his time?
a. planning and organizing
b. leading and controlling
c. a balance of both a and b
10. Would Ghiselli (6 Traits – page
10) agree that Bill Gates has
supervisory ability?
a. Yes b. No
11. Give examples of some of the
tasks Bill Gates performs in each
of the four management
functions.
12. Give examples of some of the
tasks Bill Gates performs in each
of the three management roles.
13. Do you think you would like to
work tor Bill Gates? Explain your
answer.
14. Are Bill Gates and Microsoft
ethical and socially responsible?

1–30
Closing
• Questions on Today’s Material
• Feedback on Today’s Class
– or send me an e-mail
– Was it “Work Worth Doing”
• For Next Tuesday:
– Read Chapter 10 – Teams and Team Leadership
– Read “The Team that Wasn’t” Case
– Answer Case Questions (Web Q)
– Student Information Web Q and Picture Upload

1–31
Back Up Slides

1–32
Learning Outcomes
1. Describe a manager’s responsibility.
2. List and explain the three management skills.
3. List and explain the four management functions.
4. Identify the three management role categories.
5. List the hierarchy of management levels.
6. Describe the three different types of managers.
7. Describe the differences among management levels in terms of
skills needed and functions performed.
After studying this chapter, you should be able to:

1–33
Learning Outcomes (cont’d)
8. Define the following key terms:
manager planning
manager’s resources organizing
performance leading
management skills controlling
technical skills management role categories
human and communication
skills levels of management
conceptual and decision-
making skills types of managers
management functions knowledge management

1–34
• Technology and Speed
– E-business: work done by using electronic
linkages (including the Internet) between
employees, partners, suppliers, and customers.
– E-commerce: business exchanges or
transactions that occur electronically.
• Globalization and Diversity
– Mergers are creating larger globalized firms.
– Firms competing globally have to act locally.
– Diversity is increasing as minorities grow and
markets globalize.

1–35
E-Commerce
Exhibit 1–8

1–37
Learning Outcomes
1. State the major similarities and differences between the classical
and behavioral theorists.
2. Describe how systems theorists and contingency theorists differ
from classical and behavioral theorists.
3. Define the following key terms:
After studying this appendix, you should be able to:
classical theorists systems theorists
behavioral theorists sociotechnical theorists
management science theorists contingency theorists

1–38
Classical Theory
• Classical Theorists
– Focus on the job and management functions to
determine the best way to manage in all
organizations.
• Scientific Management
– Best way to maximize job performance
– Fredrick Winslow Taylor
• Father of Scientific Management
– Frank and Lillian Gilbreth
• Work efficiency
– Henry Gantt
• Work scheduling

1–39
Classical Theory (cont’d)
• Administrative Theory
– Henri Fayol
• Father of Modern Management
• Principles and functions of management
– Max Weber
• Bureaucracy concept
– Chester Barnard
• Authority and power in organizations
– Mary Parker Follett
• Worker participation, conflict resolution, and
shared goals

1–40
Behavioral Theory
• Behavioral Theorists
– Focus on people to determine the best way to
manage in all organizations.
• Human Relations Movement (later, the
Behavioral Science Approach)
– Elton Mayo
• Hawthorne studies
– Abraham Maslow
• Hierarchy of needs theory
– Douglas McGregor
• Theory X and Theory Y

1–41
Management Science
• Management Science Theorists
– Focus on the use of mathematics to aid in
problem solving and decision making.
– Mathematical models are used in the areas of
finance, management information systems
(MIS), and operations management.

1–42
Integrative Theories
• Systems Theory
– Focuses on viewing the organization as a whole
and as the interrelationship of its parts
(subsystems).
• Sociotechnical Theory
– Focuses on integrating people and technology.
• Contingency Theory
– Focuses on determining the best management
approach for a given situation.

1–43
Comparing Theories
Classical
Behavioral
Management
Science
Systems
Theory
Attempts to develop the best way to manage in all organizations by
focusing on the jobs and structure of the firm.
Attempts to develop a single best way to manage in all
organizations by focusing on people and making them productive.
Recommends using math (computers) to aid in problem solving
and decision making.
Manages by focusing on the organization as a whole and the
interrelationship of its departments, rather than on individual
parts.
Sociotechnical
Theory
Recommends focusing on the integration of people and
technology.
Contingency
Theory
Recommends using the theory or the combination of theories that
best meets the given situation.
Exhibit AP1–2

1–44
Ideas on Management at Gap
1. What resources does Gap use to sell its
merchandise?
2. What management functions are performed at Gap
stores?
3. What levels and types of managers have careers at
Gap?
4. How does Gap meet new workplace issues and
challenges?

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