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Chapter 1

Management and Managers:Yesterday, Today, and Tomorrow

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1.Define the concept of management within an organizational context and as a process.

2. Identify the roles played by managers.

3.Discuss the responsibilities of functional and general managers.

4.Describe the three levels of managers in terms of the skills they need and the activities in which they are involved.

Learning ObjectivesSlide 1 of 2

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5.Describe the environmental trends that are affecting the way organizations operate and managers do their jobs.

6. Identify and discuss the organizational changes that are affecting managers’ jobs.

7.Describe the manager of tomorrow in terms of both managerial style and the competencies that will be necessary for success.

Learning ObjectivesSlide 2 of 2

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The process of administering and coordinating resources effectively and efficiently in an effort to achieve the

goals of the organization.

Management Defined

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Effectiveness vs. Efficiency

Effectiveness is achieved when the organization pursues appropriate goals. This means “doing the right thing.”

Efficiency is achieved by using fewer inputs (e.g., people, money) to generate a given output. This means “doing things right.”

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What Is An Organization?

An organization is a group of individuals who work together toward common goals.

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What Do All Organizations Have in Common?

They are made up of people, and the efforts of these people must be coordinated if the organization is

to accomplish its goals.

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PlanningPlanningPlanningPlanning

ControllingControllingControllingControlling

OrganizingOrganizingOrganizingOrganizing

LeadingLeadingLeadingLeading

OrganizationalOrganizationalgoalsgoals

The Four Functions of Management

Slide 1 of 3

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The Four Functions of Management

Slide 2 of 3• Planning

– Setting goals and defining the actions necessary to achieve those goals.

• Organizing– The process of determining the tasks to be

done, who will do them, and how those tasks will be managed and coordinated.

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The Four Functions of Management

Slide 3 of 3• Leading

– Motivating and directing the members of the organization so that they contribute to the achievement of the goals of the organization.

• Controlling– Monitoring the performance of the

organization, identifying deviations between planned and actual results, and taking corrective action when necessary.

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Managers

Managers are the people who plan, organize, lead, and control the

activities of the organization so that its goals can be achieved.

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Decisional rolesDecisional roles

• EntrepreneurEntrepreneur

• Disturbance handlerDisturbance handler

• Resource allocatorResource allocator

• NegotiatorNegotiator

Interpersonal rolesInterpersonal roles

• FigureheadFigurehead

• LeaderLeader

• LiaisonLiaison

Informational rolesInformational roles

• MonitorMonitor

• DisseminatorDisseminator

• SpokespersonSpokesperson

Mintzberg’s Managerial RolesSlide 1 of 4

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Mintzberg’s Managerial RolesSlide 2 of 4

• Interpersonal Roles– The manager’s responsibility for managing

relationships with organizational members and other constituents:• Figurehead• Leader• Liaison

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Mintzberg’s Managerial RolesSlide 3 of 4

• Informational Roles– The manager’s responsibility for gathering

and disseminating information to the stakeholders of the organization:• Monitor• Disseminator• Spokesperson

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Mintzberg’s Managerial RolesSlide 4 of 4

• Decisional Roles– The manager’s responsibility for processing

information and reaching conclusions:• Entrepreneur• Disturbance handler• Resource allocator• Negotiator

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Functional managers

General managers

Managers who are responsible for managing a work unit that is grouped based on the function served.

Managers who are responsible for managing several different departments that are responsible for different tasks.

Scope of Responsibility

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Chief Executive Chief Executive General Parts Inc.General Parts Inc.Chief Executive Chief Executive

General Parts Inc.General Parts Inc.

Plant Plant ManagerManager

Plant Plant ManagerManager

Service Service ManagerManagerService Service

ManagerManagerAccount Account ManagerManagerAccount Account ManagerManager

Payroll Payroll ManagerManagerPayroll Payroll

ManagerManager

A functional manager is a manager responsible for a work group

segmented by function.

VP of VP of ProductionProduction

VP of VP of ProductionProduction

VP of VP of FinanceFinanceVP of VP of

FinanceFinance

Functional Manager

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General Manager General Manager Supermarket, Inc.Supermarket, Inc.General Manager General Manager Supermarket, Inc.Supermarket, Inc.

Produce Produce ManagerManagerProduce Produce ManagerManager

Bakery Bakery ManagerManagerBakery Bakery

ManagerManagerGrocery Grocery ManagerManagerGrocery Grocery ManagerManager

General Manager

A general manager is a manager responsible for several different work

groups segmented by task.

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Top-levelTop-level

ManagersManagers

Middle ManagersMiddle Managers

First-line ManagersFirst-line Managers

Operational EmployeesOperational Employees

Levels of Management

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First-lineFirst-lineManagementManagement

MiddleMiddleManagementManagement

Top-LevelTop-LevelManagementManagement

ConceptualConceptual

HumanHuman

TechnicalTechnical

ConceptualConceptual

HumanHuman

TechnicalTechnical

ConceptualConceptual

HumanHuman

TechnicalTechnical

Skills Needed at DifferentLevels of Management

Slide 1 of 3

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Skills Needed at Different Levels of Management

Slide 2 of 3

• Technical Skills– The ability to utilize tools, techniques, and

procedures that are specific to a particular field.

• Human Skills– The ability to work effectively with others.

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Skills Needed at Different Levels of Management

Slide 3 of 3

• Conceptual Skills– The ability to analyze complex situations

and respond effectively to the challenges faced by the organization.

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A condition of rapid, dramatic, complex, and unpredictable changes that has a significant effect on the ways in which organizations are managed.

Hyperchange

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Managing in the 21st Century: Environmental Trends

Advances inInformation Technology

Globalization ofthe Marketplace

IncreasingPredominance of

Entrepreneurial Firms

The GrowingImportance of

Intellectual Capital

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The Changing The Changing Chief Executive Chief Executive

OfficerOfficer

The Changing The Changing Chief Executive Chief Executive

OfficerOfficer

Increasing Increasing Diversity in the Diversity in the

WorkplaceWorkplace

Increasing Increasing Diversity in the Diversity in the

WorkplaceWorkplace

From Hierarchy From Hierarchy to Self-Managed to Self-Managed

TeamsTeams

From Hierarchy From Hierarchy to Self-Managed to Self-Managed

TeamsTeams

A New A New Organizational Organizational

ModelModel

A New A New Organizational Organizational

ModelModel

Managing in the 21st Century: Organizational Changes

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The Contemporary ManagerSlide 1 of 2

• The New Manager Profile– Managers will no longer think of themselves

as “the boss,” but will view themselves as sponsors, team leaders, or internal consultants.

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The Contemporary ManagerSlide 2 of 2

• Competencies of Tomorrow’s Managers– The great communicator

– The team player– The technology master– The problem solver– The foreign ambassador– The change maker– The 21st-century leader