Chapter 1

INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS

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Learning Objectives
You should learn to: Explain what a manager is and how the role of a manager has changed Define management Distinguish between efficiency and effectiveness Describe the basic management functions and the management process Identify the roles performed by managers

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Learning Objectives (cont.)

You should learn to: Describe the skills managers need Explain what managers do using the systems perspective Identify what managers do using the contingency perspective Describe what an organization is and how the concept of an organization has changed Explain the value of studying management

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Who Are Managers?

Manager

someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals changing nature of organizations and work has blurred the clear lines of distinction between managers and non-managerial employees

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Who Are Managers? (cont.)

Managerial Titles
First-line managers - manage the work of nonmanagerial individuals who are directly involved with the production or creation of the organizations products Middle managers - all managers between the first-line level and the top level of the organization manage the first-line managers Top managers - responsible for making organizationwide decisions and establishing the plans and goals that affect the entire organization
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Organizational Levels

Top Managers Middle Managers First-line Managers Non-managerial Employees

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What Is Management?
Management

the process of coordinating work activities so that they are completed efficiently and effectively with and through other people elements of definition Process - represents ongoing functions or primary activities engaged in by managers Coordinating - distinguishes a managerial position from a non-managerial one
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What is Management? (cont.)

Management (cont.) elements of definition Efficiency - getting the most output from the least amount of inputs doing things right concerned with means Effectiveness - completing activities so that organizational goals are attained doing the right things concerned with ends
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Efficiency and Effectiveness in Management

Efficiency (Means) Resource Usage Effectiveness (Ends) Goal Attainment

Low Waste

High Attainment

Management Strives For: Low resource waste (high efficiency) High goal attainment (high effectiveness)
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What Do Managers Do?

Management Functions and Process most useful conceptualization of the managers job Planning - defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities Organizing - determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are made Leading - directing and motivating all involved parties and dealing with employee behavior issues Controlling - monitoring activities to ensure that they are going as planned
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What Do Managers Do? (cont.)

Management Functions and Process (cont.) Management process set of ongoing decisions and work activities in which managers engage as they plan, organize, lead, and control managerial activities are usually done in a continuous manner

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Management functions
Planning: defining goals, establishing strategy, developing subplans to coordinate activities Organizing: determining what needs to be done, how will it be done, who will do it. Leading: directing and motivating all involved parties and resolving conflicts Controlling: monitoring activities to ensure that they are accomplished as planned

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What Do Managers Do? (cont.)

Management Roles

specific categories of managerial behavior Interpersonal - involve people and duties that are ceremonial and symbolic in nature Informational - receiving, collecting, and disseminating information Decisional - revolve around making choices emphasis that managers give to the various roles seems to change with their organizational level
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Managerial Roles

Interpersonal
Figure head: Symbolic head obliged to perform number of routine duties of legal or social nature

Leader: Responsible for motivation of subordinates, responsible for staffing, training, and associated duties
Liaison: Maintains self developed network of outside contacts and informers who provide favors and information Informational Monitor: seeks and receives wide variety of internal and external information to develop thorough understanding of organization and environment Dissementor: Transmits information received from outsiders 1-# and insiders to members of the organization

Spokesperson: Transmits information to outsiders on organization plans, policies, actions, results Decisional Roles: Entrepreneur: searches organization and environment for opportunities and initiates improvement projects to bring about the changes Disturbance Handler: Responsible for corrective action when organization faces important, unexpected disturbances

Resource Allocator: Responsible for allocation of organizational resources of all kinds making or approving all significant organizational decisions Negotiator: responsible for representing the organization for all major negotiations
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EXHIBIT 1.4: MINTZBERGS MANAGERIAL ROLES

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What Do Managers Do? (cont.)

Management Skills
Technical - knowledge of and proficiency in a certain specialized field Human - ability to work well with other people both individually and in a group Conceptual - ability to think and to conceptualize about abstract and complex situations see the organization as a whole understand the relationships among subunits visualize how the organization fits into its broader environment
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EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS

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What Do Managers Do? (cont.)

Managing Systems
System - a set of interrelated and interdependent parts arranged in a manner that produces a unified whole provides a more general and broader picture of what managers do than the other perspectives provide Closed system - not influenced by and do not interact with their environment Open system - dramatically interact with their environment organizations - take in inputs from their environments transform or process inputs into outputs outputs are distributed into the environment
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The Organization As An Open System

Environment System Inputs
Raw materials Human resources Capital Technology Information

Transformation
Employees work activities Management activities Technology and operations methods

Outputs
Products and services Financial results Information Human results

Feedback

Environment

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What Do Managers Do? (cont.)

Managing Systems (cont.) managers must coordinate various work activities ensure that interdependent parts work together recognize and understand the impact of various external factors decisions and actions taken in one organizational area will affect other areas and vice versa

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What Do Managers Do? (cont.)

Managing in Different and Changing Situations require managers to use different approaches and techniques Contingency perspective - different ways of managing are required in different organizations and different circumstances stresses that there are no simplistic or universal rules contingency variable
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EXHIBIT 1.8: POPULAR CONTINGENCY VARIABLES

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What Is An Organization?
Organization
a deliberate arrangement of people to accomplish some specific purpose elements of definition each organization has a distinct purpose each organization is composed of people all organizations develop some deliberate structure todays organizations have adopted: flexible work arrangements open communications greater responsiveness to changes
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EXHIBIT 1.10: THE CHANGING ORGANIZATION

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Why Study Management?

Universality of Management management is needed in all types and sizes of organizations at all organizational levels in all work areas management functions must be performed in all organizations consequently, have vested interest in improving management
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EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT

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Why Study Management? (cont.)

The Reality of Work most people have some managerial responsibilities most people work for a manager

Challenges of Being a Manager - being a manager is hard work - must deal with a variety of personalities - must motivate workers in the face of uncertainty

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Why Study Management? (cont.) Rewards of Being a Manager

create an environment that allows others to do their best work provide opportunities to think creatively help others find meaning and fulfillment meet and work with a variety of people

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