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Chapter 1

                         INTRODUCTION
                        TO MANAGEMENT
                             AND
                         ORGANIZATIONS
© Prentice Hall, 2002                 1-1
?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



© Prentice Hall, 2002                          1-2
.(Who Are Managers? (cont
                                      Managerial Titles •
        First-line managers - manage the work of non- –
  managerial individuals who are directly involved with
       the production or creation of the organization’s
                                                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 organization- –
wide decisions and establishing the plans and goals that
                           affect the entire organization

© Prentice Hall, 2002                                   1-3
Organizational Levels


                                  Top
                                Managers

                                 Middle
                                Managers

                                First-line
                                Managers


                         Non-managerial Employees


© Prentice Hall, 2002                               1-4
?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

© Prentice Hall, 2002                            1-5
.(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 –



© Prentice Hall, 2002                            1-6
Efficiency and Effectiveness in
                      Management
            Efficiency (Means)                     Effectiveness (Ends)


                   Resource                                Goal
                    Usage                               Attainment


                            Low Waste         High Attainment




                               Management Strives For:
                         Low resource waste (high efficiency)
                        High goal attainment (high effectiveness)

© Prentice Hall, 2002                                                     1-7
?What Do Managers Do
                            Management Functions and Process •
         most useful conceptualization of the manager’s 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




 © Prentice Hall, 2002                                   1-8
.(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



© Prentice Hall, 2002                        1-9
.(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
© Prentice Hall, 2002                        1-10
.(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


© Prentice Hall, 2002                                               1-11
EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS




© Prentice Hall, 2002                                           1-12
.(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 –



© Prentice Hall, 2002                                                    1-13
The Organization As An Open System
                        Environment


                            System


           Inputs       Transformation              Outputs
       Raw materials    Employee’s work        Products and services
      Human resources     activities             Financial results
          Capital       Management                 Information
        Technology        activities              Human results
        Information     Technology and
                          operations methods


                           Feedback


                        Environment
© Prentice Hall, 2002                                           1-14
.(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
© Prentice Hall, 2002                and vice versa   1-15
.(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 •

© Prentice Hall, 2002                       1-16
EXHIBIT 1.8: POPULAR CONTINGENCY VARIABLES




© Prentice Hall, 2002                          1-17
?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 –
                            :today’s organizations have adopted –
                                         flexible work arrangements •
                                               open communications •
                                  greater responsiveness to changes •



© Prentice Hall, 2002                                                        1-18
EXHIBIT 1.10: THE CHANGING ORGANIZATION




© Prentice Hall, 2002                     1-19
?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

© Prentice Hall, 2002                       1-20
EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT




© Prentice Hall, 2002                          1-21
.(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


 © Prentice Hall, 2002                                  1-22
.(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       –




© Prentice Hall, 2002                           1-23

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Principle of managment 1

  • 1. Chapter 1 INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS © Prentice Hall, 2002 1-1
  • 2. ?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 © Prentice Hall, 2002 1-2
  • 3. .(Who Are Managers? (cont Managerial Titles • First-line managers - manage the work of non- – managerial individuals who are directly involved with the production or creation of the organization’s 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 organization- – wide decisions and establishing the plans and goals that affect the entire organization © Prentice Hall, 2002 1-3
  • 4. Organizational Levels Top Managers Middle Managers First-line Managers Non-managerial Employees © Prentice Hall, 2002 1-4
  • 5. ?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 © Prentice Hall, 2002 1-5
  • 6. .(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 – © Prentice Hall, 2002 1-6
  • 7. Efficiency and Effectiveness in Management Efficiency (Means) Effectiveness (Ends) Resource Goal Usage Attainment Low Waste High Attainment Management Strives For: Low resource waste (high efficiency) High goal attainment (high effectiveness) © Prentice Hall, 2002 1-7
  • 8. ?What Do Managers Do Management Functions and Process • most useful conceptualization of the manager’s 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 © Prentice Hall, 2002 1-8
  • 9. .(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 © Prentice Hall, 2002 1-9
  • 10. .(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 © Prentice Hall, 2002 1-10
  • 11. .(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 © Prentice Hall, 2002 1-11
  • 12. EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS © Prentice Hall, 2002 1-12
  • 13. .(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 – © Prentice Hall, 2002 1-13
  • 14. The Organization As An Open System Environment System Inputs Transformation Outputs Raw materials Employee’s work Products and services Human resources activities Financial results Capital Management Information Technology activities Human results Information Technology and operations methods Feedback Environment © Prentice Hall, 2002 1-14
  • 15. .(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 © Prentice Hall, 2002 and vice versa 1-15
  • 16. .(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 • © Prentice Hall, 2002 1-16
  • 17. EXHIBIT 1.8: POPULAR CONTINGENCY VARIABLES © Prentice Hall, 2002 1-17
  • 18. ?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 – :today’s organizations have adopted – flexible work arrangements • open communications • greater responsiveness to changes • © Prentice Hall, 2002 1-18
  • 19. EXHIBIT 1.10: THE CHANGING ORGANIZATION © Prentice Hall, 2002 1-19
  • 20. ?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 © Prentice Hall, 2002 1-20
  • 21. EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT © Prentice Hall, 2002 1-21
  • 22. .(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 © Prentice Hall, 2002 1-22
  • 23. .(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 – © Prentice Hall, 2002 1-23