The The Management Management Process TodayProcess Today

Chapter One

Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

What is Management?What is Management?

• Management – The planning, organizing, leading, and

controlling of human and other resources to achieve organizational goals effectively and efficiently

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What is Management?What is Management?

• Organizations– Collections of people who work together and coordinate

their actions to achieve a wide variety of goals

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What is Management?What is Management?

• Managers – The people responsible for supervising the use of

an organization’s resources to meet its goals– Resources include people, skills, know-how,

machinery, raw materials, computers and IT, and financial capital

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Achieving High PerformanceAchieving High Performance

• Organizational Performance – A measure of how efficiently and effectively

managers use organizational resources to satisfy customers and achieve goals

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Efficiency, Effectiveness, andEfficiency, Effectiveness, andPerformance in an OrganizationPerformance in an Organization

1-6Figure 1.1

Organizational PerformanceOrganizational Performance

• Efficiency – A measure of how well

or productively resources are used to achieve a goal

• Effectiveness– A measure of the

appropriateness of the goals an organization is pursuing and the degree to which they are achieved.

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Why study management?Why study management?

• The more effective and efficient use an organization can make of resources, the greater the relative well-being of people

• Almost all of us encounter managers because most people have jobs and bosses

• Understanding management is one important path toward obtaining a satisfying career

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Four Tasks of ManagementFour Tasks of Management

1-9Figure 1.2

PlanningPlanning

• Planning – Process of identifying and selecting appropriate

goals and courses of action

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OrganizingOrganizing

• Organizing – structuring working relationships so organizational

members interact and cooperate to achieve organizational goals.

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LeadingLeading

• Leading – Articulating a clear vision and energizing and

enabling organizational members so they understand the part they play in attaining organizational goals

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ControllingControlling

• Controlling – Evaluating how well an organization is achieving

its goals and taking action to maintain or improve performance

• The outcome of the control process is the ability to measure performance accurately and regulate efficiency and effectiveness

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Levels and Skills of ManagersLevels and Skills of Managers

• Department– A group of people who work together and

possess similar skills or use the same knowledge, tools, or techniques to perform their jobs

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Levels of ManagementLevels of Management

• First line managers – Responsible for the daily supervision of non-

managerial employees

• Middle managers – Supervise first-line managers and are responsible

for finding the best way to use resources to achieve organizational goals

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Levels of ManagementLevels of Management

• Top managers – establish organizational goals, decide how

departments should interact, and monitor the performance of middle managers

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Levels of ManagersLevels of Managers

1-17Figure 1.3

Relative Amount of Time That Managers Spend Relative Amount of Time That Managers Spend on the Four Managerial Taskson the Four Managerial Tasks

1-18Figure 1.4

Levels of ManagersLevels of Managers

• Top-management team – group composed of the CEO, COO, and the heads

of the most important departments

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Managerial SkillsManagerial 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– The specific knowledge and techniques required to

perform an organizational role.

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Technical SkillsTechnical Skills

• Core competency – Specific set of skills, abilities, and experiences that

allows one organization to outperform its competitors

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Types and Levels of ManagersTypes and Levels of Managers

1-22Figure 1.5

Recent Changes in Management PracticesRecent Changes in Management Practices

• Restructuring – downsizing an organization by eliminating the jobs

of large numbers of top, middle, or first-line managers and non-managerial employees

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Recent Changes in Management PracticesRecent Changes in Management Practices

• Outsourcing – contracting with another company, usually in a

low cost country abroad, to perform an activity the company previously performed itself

• Increases efficiency because it lowers operating costs, freeing up money and resources that can be used in more effective ways

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Empowerment and Self-Managed Empowerment and Self-Managed TeamsTeams

• Empowerment – Expansion of employees’ knowledge, tasks, and decision-

making responsibilities

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Empowerment and Self-Managed TeamsEmpowerment and Self-Managed Teams

• Self-managed team – a group of employees with the responsibility for

organizing, controlling, and supervising their own activities and for monitoring the quality of the goods and services they provide

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Challenges for Management inChallenges for Management ina Global Environmenta Global Environment

• Rise of Global Organizations.

• Building a Competitive Advantage

• Maintaining Ethical and Socially Responsible Standards

• Managing a Diverse Workforce

• Utilizing IT and E-Commerce

• Practicing Global Crisis Management

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Challenges for Management inChallenges for Management ina Global Environmenta Global Environment

• Global organizations– organizations that operate and compete in more

than one country

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Building Competitive AdvantageBuilding Competitive Advantage

• Competitive advantage – Ability of one organization to outperform other

organizations because it produces desired goods or services more efficiently and effectively than they do

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Building Blocks of Competitive Building Blocks of Competitive AdvantageAdvantage

1-30Figure 1.6

Building a Competitive AdvantageBuilding a Competitive Advantage

• Innovation – process of creating new or improved goods and

services or developing better ways to produce or provide them

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Practicing Global Crisis ManagementPracticing Global Crisis Management

Crisis management involves making important choices about how to:

1. Create teams to facilitate rapid decision making and communication

2. Establish the organizational chain of command3. Recruit and select the right people4. Develop bargaining and negotiating strategies to

manage conflicts

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