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Management andManagement andOrganizational Behavior Organizational Behavior
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Management Key ConceptsManagement Key Concepts
OrganizationsOrganizations:: People working together andPeople working together andcoordinating their actions to achieve specific goals.coordinating their actions to achieve specific goals.
Management Management
:: The process of using organizationalThe process of using organizational
resources to achieve the organization’s goals by...resources to achieve the organization’s goals by...
– Planning, Organizing, Leading, and Controlling Planning, Organizing, Leading, and Controlling
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Management DefinitionsManagement Definitions
Management can be defined as working withManagement can be defined as working with
and through individuals and groups toand through individuals and groups toaccomplish organizational goals.accomplish organizational goals.
Mary Parker FollettMary Parker Follett defined management asdefined management as
the art of getting things done throughthe art of getting things done through
peoplepeople
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Additional Key ConceptsAdditional Key Concepts
Resources are organizational assets and include:Resources are organizational assets and include: PeoplePeople
MachineryMachinery Ra! materialsRa! materials "nformation s#ills"nformation s#ills $inancial capital$inancial capital%%
Managers are the people responsi&le forManagers are the people responsi&le for
supervising the use of an organization'ssupervising the use of an organization'sresources to meet its goalsresources to meet its goals
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Organizational PerformanceOrganizational Performance
Measures how efficiently and effectively managers use resources toMeasures how efficiently and effectively managers use resources tosatisfy customers and achieve goals.satisfy customers and achieve goals.
– Efficiency Efficiency :: A measure of how well resources are used to achieve a A measure of how well resources are used to achieve agoal.goal. Usually, managers must try to minimize the input of resourcesUsually, managers must try to minimize the input of resources
to attain the same goal to attain the same goal ..
– EffectivenessEffectiveness:: A measure of the appropriateness of the goals A measure of the appropriateness of the goals
chosen (are these the right goals?), and the degree to whichchosen (are these the right goals?), and the degree to whichthey are achieved.they are achieved. Organizations are more effective when managers chooseOrganizations are more effective when managers choose
the correct goals and then achieve them.the correct goals and then achieve them.
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Managerial $unctions
!enri Fayol was the first to describe the four managerial functions
when he was the "#$ of a large mining company in the later %&''’s. Fayol noted managers at all levels( operating in a for profit or not for
profit organization( must perform each of the functions of)
–
Planning –organizing
–leading
–controlling%
1-
7
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Four Functions of ManagementFour Functions of Management
PlanningPlanningChooseChoose GoalsGoals
OrganizingOrganizing
WorkingWorking togethertogether
(eading(eading Coordinate
ControllingControllingMonitor & measureMonitor & measure
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PlanningPlanning
lanning is the process used !y managers to identify andlanning is the process used !y managers to identify and
select appropriate goals and courses of action for anselect appropriate goals and courses of action for anorganization.organization.
) steps to good planning :) steps to good planning :
%.%. *hich goals should be pursued+*hich goals should be pursued+
,. !ow should the goal be attained+,. !ow should the goal be attained+-. !ow should resources be allocated+-. !ow should resources be allocated+
– *he planning function determines ho! effective and*he planning function determines ho! effective andefficient the organization is and determines theefficient the organization is and determines thestrategy of the organization%strategy of the organization%
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OrganizingOrganizing
n organizing( managers create the structure of workingn organizing( managers create the structure of working
relationships between organizational members that bestrelationships between organizational members that bestallows them to work together and achieve goals.allows them to work together and achieve goals.Managers will group people into departments according toManagers will group people into departments according to
the tasks performed.the tasks performed.
– Managers will also lay out lines of authority andManagers will also lay out lines of authority and
responsibility for members.responsibility for members. /n /n organizational structureorganizational structure is the outcome of organizing.is the outcome of organizing.
This structure coordinates and motivates employees soThis structure coordinates and motivates employees sothat they work together to achieve goals.that they work together to achieve goals.
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(eading(eading
n leading( managers determine direction( state a clearn leading( managers determine direction( state a clear
vision for employees to follow( and help employeesvision for employees to follow( and help employees
understand the role they play in attaining goals.understand the role they play in attaining goals.
0eadership involves a manager using power( influence(0eadership involves a manager using power( influence(
vision( persuasion( and communication skills.vision( persuasion( and communication skills.
The outcome of the leading function is a high level ofThe outcome of the leading function is a high level of
motivation and commitment from employees to themotivation and commitment from employees to the
organization.organization.
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ControllingControlling
n controlling( managers evaluate how well then controlling( managers evaluate how well theorganization is achieving its goals and takes correctiveorganization is achieving its goals and takes correctiveaction to improve performance.action to improve performance.Managers will monitor individuals( departments( and theManagers will monitor individuals( departments( and the
organization to determine if desired performance has beenorganization to determine if desired performance has beenreached.reached.
– Managers will also take action to increase performanceManagers will also take action to increase performanceas re1uired.as re1uired.
The outcome of the controlling function is the accurateThe outcome of the controlling function is the accuratemeasurement of performance and regulation of efficiencymeasurement of performance and regulation of efficiencyand effectiveness.and effectiveness.
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Management (evelsManagement (evels
$rganizations often have - levels of managers)$rganizations often have - levels of managers)
$irst+line Managers:$irst+line Managers: responsible for day2to2day operation. Theyresponsible for day2to2day operation. Theysupervise the people performing the activities re1uired tosupervise the people performing the activities re1uired tomake the good or service.make the good or service.
Middle ManagersMiddle Managers:: 3upervise first2line managers. They are also3upervise first2line managers. They are alsoresponsible to find the best way to use departmental resourcesresponsible to find the best way to use departmental resources
to achieve goals.to achieve goals.
*op Managers:*op Managers: 4esponsible for the performance of4esponsible for the performance of all all departments and have cross2departmental responsibility. Theydepartments and have cross2departmental responsibility. Theyestablish organizational goals and monitor middle managers.establish organizational goals and monitor middle managers.
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*op*op
ManagersManagers
MiddleMiddle
ManagersManagers
$irst+line Managers$irst+line Managers
,on+management,on+management
Three Levels of Management Three Levels of Management
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Managerial RolesManagerial Roles
Descri&ed &y -enry Mintz&ergDescri&ed &y -enry Mintz&erg in his book 5The in his book 5The "ature of"ature ofManagerial #or$%.Managerial #or$%.
– / role is a set of specific tasks a person performs because / role is a set of specific tasks a person performs becauseof the position they hold.of the position they hold.
Roles are directed inside as !ell as outside theRoles are directed inside as !ell as outside the
organization%organization%
*here are ) &road role categories:*here are ) &road role categories:
&. 'nterpersonal &. 'nterpersonal
. 'nformational. 'nformational
. *ecisional . *ecisional
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"nterpersonal Roles"nterpersonal Roles
Roles managers assume to coordinate and interactRoles managers assume to coordinate and interact
!ith employees and provide direction to the!ith employees and provide direction to theorganization%organization%
– +igurehead role+igurehead role symbolizes the organization and whatsymbolizes the organization and what
it is trying to achieve.it is trying to achieve.
–
-eader role-eader role train( counsel( mentor and encourage hightrain( counsel( mentor and encourage highemployee performance.employee performance.
– -iaison role-iaison role link and coordinate people inside andlink and coordinate people inside and
outside the organization to help achieve goals.outside the organization to help achieve goals.
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"nformational Roles"nformational Roles
Associated !ith the tas#s needed to o&tain andAssociated !ith the tas#s needed to o&tain andtransmit information for management of thetransmit information for management of theorganization%organization% – Monitor roleMonitor role analyzes information from both theanalyzes information from both the
internal and e6ternal environment.internal and e6ternal environment.
– *isseminator role*isseminator role manager transmits information tomanager transmits information to
influence attitudes and behavior of employees.influence attitudes and behavior of employees. – po$esperson rolepo$esperson role use of information to positivelyuse of information to positively
influence the way people in and out of the organizationinfluence the way people in and out of the organizationrespond to it.respond to it.
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Decisional RolesDecisional Roles
Associated !ith the methods managers use to planAssociated !ith the methods managers use to planstrategy and utilize resources to achieve goals%strategy and utilize resources to achieve goals%
– Entrepreneur roleEntrepreneur role deciding upon new pro7ects ordeciding upon new pro7ects orprograms to initiate and invest.programs to initiate and invest.
– *istur!ance handler role*istur!ance handler role assume responsibility forassume responsibility forhandling an une6pected event or crisis.handling an une6pected event or crisis.
– /esource allocator role/esource allocator role assign resources betweenassign resources betweenfunctions and divisions( set budgets of lower managers.functions and divisions( set budgets of lower managers.
– "egotiator role"egotiator role seeks to negotiate solutions betweenseeks to negotiate solutions betweenother managers( unions( customers( or shareholders.other managers( unions( customers( or shareholders.
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Managerial .#ills / Daniel KatzManagerial .#ills / Daniel Katz
*here are three s#ill sets that managers need to perform*here are three s#ill sets that managers need to performeffectively%effectively%
%.%. 0onceptual s$ills0onceptual s$ills the ability to analyze and diagnose athe ability to analyze and diagnose asituation and find the cause and effect.situation and find the cause and effect.
,.,. 1uman s$ills1uman s$ills the ability to understand( alter( lead( andthe ability to understand( alter( lead( andcontrol people’s behavior.control people’s behavior.
-.-. 2echnical s$ills2echnical s$ills the 7ob2specific knowledge re1uired tothe 7ob2specific knowledge re1uired toperform a task. "ommon e6amples include marketing(perform a task. "ommon e6amples include marketing(accounting( and manufacturing.accounting( and manufacturing.
All three s#ills are enhanced through formal trainingAll three s#ills are enhanced through formal training
readingreading and practice% and practice%
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.#ill *ype ,eeded &y Manager (evel.#ill *ype ,eeded &y Manager (evel
Top
Managers
Middle
Managers
LineManagers
Conceptual Human Technical
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Management ChallengesManagement Challenges
ncreasing number of global organizations.ncreasing number of global organizations.
8uilding competitive advantage through superior8uilding competitive advantage through superiorefficiency( 1uality( innovation( and responsiveness.efficiency( 1uality( innovation( and responsiveness.
ncreasing performance while remaining ethicalncreasing performance while remaining ethical
managers.managers.
Managing an increasingly diverse work force.Managing an increasingly diverse work force. 9sing new technologies.9sing new technologies.