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MGT-Jones Syllabus Chapter 1 - Introduction to Management (1).pptx

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MGT-Jones Syllabus Chapter 1 - Introduction to Management (1).pptx

  1. 1. ©McGraw-Hill Education. CHAPTER 1 Managers and Managing ©G.LIUDMILA/Shutterstock ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
  2. 2. ©McGraw-Hill Education. Learning Objectives (1 of 2) 1. Describe what management is, why management is important, what managers do, and how managers use organizational resources efficiently and effectively to achieve organizational goals. 2. Distinguish among planning, organizing, leading, and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one affects organizational performance. 3. Differentiate among three levels of management, and understand the tasks and responsibilities of managers at different levels in the organizational hierarchy.
  3. 3. ©McGraw-Hill Education. Learning Objectives (2 of 2) 4. Distinguish among three levels of managerial skill, and explain why managers are divided into different departments to perform their tasks more efficiently and effectively. 5. Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced information technology (IT). 6. Discuss the principal challenges managers face in today’s increasingly competitive global environment.
  4. 4. ©McGraw-Hill Education. What Is Management? (1 of 3) Organizations • Organizations are collections of people who work together and coordinate their actions to achieve a wide variety of goals or desired future outcomes. • All managers work in organizations. Managers • Managers are the people responsible for supervising the use of an organization’s resources to meet its goals.
  5. 5. ©McGraw-Hill Education. What Is Management? (2 of 3) Management • Management includes the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently. • What difference can a manager make? Satya Nadella, Microsoft CEO
  6. 6. ©McGraw-Hill Education. What Is Management? (3 of 3) Resources • Include assets such as: 1. People and their skills, know-how, and experience. 2. Machinery. 3. Raw materials. 4. Computers and information technology. 5. Patents, financial capital, and loyal customers and employees.
  7. 7. ©McGraw-Hill Education. Achieving High Performance: A Manager’s Goal (1 of 2) Organizational performance • A measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals • Microsoft’s corporate mission revised by CEO Satya Nadella to reflect current technological trends, resulting in increased employee moral, product quality, and stock market values
  8. 8. ©McGraw-Hill Education. Achieving High Performance: A Manager’s Goal (2 of 2) Efficiency • A measure of how well or how productively resources are used to achieve a goal • UPS instructing drivers to leave truck doors open when going short distances to reduce delivery times Effectiveness • A measure of the appropriateness of the goals an organization is pursuing and the degree to which the organization achieves those goals • Microsoft’s restructure eliminating internal competition, resulting in increased employee morale and performance.
  9. 9. ©McGraw-Hill Education. Figure 1.1 Efficiency, Effectiveness, and Performance in an Organization High-performing organizations are efficient and effective. Jump to Appendix 1 for description Copyright © McGraw-Hill Education. Permission required for reproduction or display.
  10. 10. ©McGraw-Hill Education. Why Study Management? (1 of 2) 1. Individuals generally learn through personal experience or the experiences of others. By studying management in school, you are exposing yourself to the lessons others have learned.
  11. 11. ©McGraw-Hill Education. Why Study Management? (2 of 2) 2. The economic benefits of becoming a good manager are also impressive. In the United States, general managers earn a median wage of $99,310 with a projected growth rate in job openings of 5 % to 9% between now and 2026. 3. Learning management principles can help you make good decisions in nonwork contexts.
  12. 12. ©McGraw-Hill Education. Figure 1.2 Four Tasks of Management Jump to Appendix 2 for description Copyright © McGraw-Hill Education. Permission required for reproduction or display.
  13. 13. ©McGraw-Hill Education. Steps in the Planning Process 1. Deciding which goals the organization will pursue 2. Deciding what strategies to adopt to attain those goals 3. Deciding how to allocate organizational resources. Managers identify and select appropriate organizational goals and develop strategies for how to achieve high performance.
  14. 14. ©McGraw-Hill Education. Organizing (1 of 2) Organizing • Structuring working relationships so organizational members interact and cooperate to achieve organizational goals Managers deciding how best to organize resources, particularly human resources
  15. 15. ©McGraw-Hill Education. Organizing (2 of 2) Organizational structure • A formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals • ER director Daley works closely with team, increasing efficiency and improving customer satisfaction
  16. 16. ©McGraw-Hill Education. Leading Leading • Articulating a clear vision and energizing and enabling organizational members so they understand the part they play in achieving organizational goals • An organization’s vision is a short, succinct, and inspiring statement of the organization’s future state. • Involves managers using their power, personality, influence, persuasion, and communication skills to coordinate people and groups
  17. 17. ©McGraw-Hill Education. Controlling (1 of 2) Controlling • Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance Managers monitor performance of individuals, departments, and the organization as a whole to determine if they are meeting performance standards
  18. 18. ©McGraw-Hill Education. Controlling (2 of 2) The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness. Managers must decide which goals to measure.
  19. 19. ©McGraw-Hill Education. Example: Mercy Medical Center Erin Daley is the ER director for Mercy Medical Center in Massachusetts. Improving ER department efficiency and quality of care while keeping costs within budget can be daunting. Managers like Erin Daley must develop strategies and processes where hospitals can move patients through the system faster while improving patient satisfaction.
  20. 20. ©McGraw-Hill Education. Managerial Roles Identified (1 of 3) Type of Role Specific Role Examples of Role Activities Decisional Entrepreneur Commit organizational resources to develop innovative goods and services; decide to expand internationally to obtain new customers for the organization’s products. Decisional Disturbance handler Move quickly to take corrective action to deal with unexpected problems facing the organization from the external environment, such as a crisis like an oil spill, or from the internal environment, such as producing faulty goods or services. Decisional Resource allocator Allocate organizational resources among different tasks and departments of the organization; set budgets and salaries of middle and first-level managers. Decisional Negotiator Work with suppliers, distributors, and labor unions to reach agreements about the quality and price of input, technical, and human resources; work with other organizations to establish agreements to pool resources to work on joint projects. Table 1.1 Managerial Roles Identified by Mintzberg
  21. 21. ©McGraw-Hill Education. Managerial Roles Identified (2 of 3) Type of Role Specific Role Examples of Role Activities Interpersonal Figurehead Outline future organizational goals to employees at company meetings; open a new corporate headquarters building; state the organization’s ethical guidelines and the principles of behavior employees are to follow in their dealings with customers and suppliers. Interpersonal Leader Provide an example for employees to follow; give direct commands and orders to subordinate; make decisions concerning the use of human and technical resources; mobilize employee support for specific organizational goals. Interpersonal Liaison Coordinate the work of managers in different departments; establish alliances between different organizations to share resources to produce new goods and services; reach agreements about the quality and price of input, technical, and human resources; work with other organizations to establish agreements to pool resources to work on joint projects. Table 1.1 Managerial Roles Identified by Mintzberg
  22. 22. ©McGraw-Hill Education. Managerial Roles Identified (3of 3) Type of Role Specific Role Examples of Role Activities Informational Monitor Evaluate the performance of managers in different tasks, and take corrective action to improve their performance; watch for changes occurring in the external and internal environments that may affect the organization in the future. Informational Disseminator Inform employees about changes taking place in the external and internal environments that will affect them and the organization; communicate to employees the organization’s vision and purpose. Informational Spokesperson Launch a national advertising campaign to promote new goods and services; give a speech to inform the local community about the organization’s future intentions. Table 1.1 Managerial Roles Identified by Mintzberg Copyright © McGraw-Hill Education. Permission required for reproduction or display.
  23. 23. ©McGraw-Hill Education. Levels and Skills of Managers (1 of 2) Department • A group of managers and employees who work together and possess similar skills or use the same knowledge, tools, or techniques • Example: the manufacturing, accounting, engineering, or marketing department
  24. 24. ©McGraw-Hill Education. Figure 1.3 Levels of Management Copyright © McGraw-Hill Education. Permission required for reproduction or display.
  25. 25. ©McGraw-Hill Education. Levels of Management (1 of 2) First-line managers (often called supervisors) • Responsible for the daily supervision of the nonmanagerial employees • Paint foreman overseeing a crew of painters at a University Middle managers • Supervises first-line managers • Responsible for finding the best way to use resources to achieve organizational goals • High school principal or a marketing manager
  26. 26. ©McGraw-Hill Education. Levels of Management (2 of 2) Top managers • Responsible for the performance of all departments • Establish organizational goals • Decide how different departments should interact • Monitor how well middle managers in each department use resources to achieve goals • President of a university
  27. 27. ©McGraw-Hill Education. Levels and Skills of Managers (2 of 2) Figure 1.4 Relative Amount of Time Managers Spend on the Four Managerial Tasks Access the text alternative for these images. Copyright © McGraw-Hill Education. Permission required for reproduction or display.
  28. 28. ©McGraw-Hill Education. Managerial Skills Conceptual skills • The ability to analyze and diagnose a situation and distinguish between cause and effect Human skills • The ability to understand, alter, lead, and control the behavior of other individuals and groups Technical skills • Job-specific skills required to perform a particular type of work or occupation at a high level
  29. 29. ©McGraw-Hill Education. Figure 1.5: Types and Levels of Managers Access the text alternative for these images. Copyright © McGraw-Hill Education. Permission required for reproduction or display.
  30. 30. ©McGraw-Hill Education. Core Competency Core competency • Specific set of departmental skills, abilities, knowledge and experience that allows one organization to outperform its competitors • Skills for a competitive advantage • Google’s core competency, research and development, allows them to develop innovative products and services (computerized glasses, self-driving cars).
  31. 31. ©McGraw-Hill Education. Restructuring and Outsourcing Restructuring • Downsizing an organization by eliminating the jobs of large numbers of top, middle, and first- line managers and nonmanagerial employees Outsourcing • Contracting with another company, usually in a low-cost country abroad, to perform a work activity the company previously performed itself
  32. 32. ©McGraw-Hill Education. Empowerment Empowerment • Empowerment involves giving employees more authority and responsibility over how they perform their work activities. • Example: Valve Corporation has no managers, no hierarchy or top-down control. Employees pick their own projects.
  33. 33. ©McGraw-Hill Education. Challenges for Management in a Global Environment Building a competitive advantage Maintaining ethical and socially responsible standards Managing a diverse workforce Utilizing new technologies Practicing global crisis management
  34. 34. ©McGraw-Hill Education. Building Competitive Advantage Competitive advantage • Ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors Innovation • The process of creating new or improved goods and services or developing better ways to produce or provide them
  35. 35. ©McGraw-Hill Education. Figure 1.6 Building Blocks of Competitive Advantage Copyright © McGraw-Hill Education. Permission required for reproduction or display.
  36. 36. ©McGraw-Hill Education. Turnaround Management Turnaround management • 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 • Apple’s Steve Jobs excelled at turnaround management.
  37. 37. ©McGraw-Hill Education. Maintaining Ethical and Socially Responsible Standards Managers are under considerable pressure to make the best use of resources. Too much pressure may induce managers to behave unethically and even illegally. • Wells Fargo Scandal “Eight is great”
  38. 38. ©McGraw-Hill Education. Managing a Diverse Workforce To create a highly trained and motivated workforce, managers must establish human resource management (HRM) procedures that are legal and fair and do not discriminate against organizational members. • Accenture uses a diverse workforce to its advantage.
  39. 39. ©McGraw-Hill Education. Utilizing New Technologies An efficient and effective IT system may improve an organization’s performance. • UPS uses ORION • A GPS system that optimizes drivers’ routes
  40. 40. ©McGraw-Hill Education. Practicing Global Crisis Management 1. Create teams to facilitate rapid decision- making and communication. 2. Establish the organizational chain of command and reporting relationships necessary to mobilize a fast response. 3. Recruit and select the right people to lead and work in such teams. 4. Develop bargaining and negotiating strategies to manage the conflicts that arise.

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