Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1-1.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1-1


ObjectivesObjectivesObjectivesObjectives1.An understanding of the importance of management to society and individuals

2.An understanding of the role of management

3.An ability to define management in several different ways

4.An ability to list and define the basic functions of management

5.Working definitions of managerial effectiveness and managerial efficiency

6.An understanding of basic management skills and their relative importance to managers


The Importance of ManagementThe Importance of ManagementThe Importance of ManagementThe Importance of Management

Managers influence all phases of modern organizations.


The Importance of ManagementThe Importance of ManagementThe Importance of ManagementThe Importance of Management

Influences all phases of an organization

Operations

Markets

Workforce


The Management TaskThe Management TaskThe Management TaskThe Management TaskIn addition to understanding the significance of managerial work to

themselves and society and its related benefits, prospective managers need to know what the management task entails.

To the society:Our society couldn’t exist or improve without managers guiding its

organizationsEffective management is the main source of developed countries,

and the most needed source of developing ones


The Management TaskThe Management TaskThe Management TaskThe Management TaskManagement positions have increased from 10% to 18% of all

jobs since 1950.Managers come from varying backgrounds

To themselves (the managers):Managerial positions can yield:

High salariesStatusInteresting workPersonal growthIntense feeling of accomplishment


The Management TaskThe Management TaskThe Management TaskThe Management Task


The Management TaskThe Management TaskThe Management TaskThe Management Task


The Management TaskThe Management TaskThe Management TaskThe Management TaskTop managers and CEOs Salaries (or compensations) should be

determined by how much value they add to the company. The more value they add, the more compensation they deserve.

The 20 highest-paid European executives make only a third as much as the 20 highest-pain American executives.


The Role of ManagementThe Role of ManagementThe Role of ManagementThe Role of ManagementThe role of managers is to guide organizations toward

goal accomplishment.

All organizations exist for certain purposes or goals

Because the process of management emphasizes the achievement of goals, managers must keep organizational goals in mind at all times.


Defining ManagementDefining ManagementDefining ManagementDefining ManagementThe term “Management” can be used in different ways. It can be

defined as:

The process that managers follow in order to accomplish organizational goals

A body of knowledge

A cumulative body of information that furnishes insights on how to manage

The individuals who guide and direct organizations

A career devoted to the task of guiding and directing organizations


Defining ManagementDefining ManagementDefining ManagementDefining ManagementMost commonly used definition in this book:Management: is the process of reaching organizational

goals by working with and through people and other organizational resources.

A broad agreement that management encompasses the following three main characteristics:

1. It is a process or series of continuing and related activities.2. It involves and concentrates on reaching organizational

goals.3. It reaches these goals by working with and through people

and other organizational resources.


The Management Process: Management FunctionsThe Management Process: Management FunctionsThe Management Process: Management FunctionsThe Management Process: Management FunctionsThe four basic management functions/activities that make

up the management process are:

1) Planning2) Organizing3) Influencing4) Controlling


Basic Management Functions: 1. PlanningBasic Management Functions: 1. PlanningBasic Management Functions: 1. PlanningBasic Management Functions: 1. Planning Planning: planning involves choosing tasks that must be

performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.

Planning is essential to getting the “right” things done.

Planning is concerned with organizational success in short and long term


Basic Management Functions: 2. OrganizingBasic Management Functions: 2. OrganizingBasic Management Functions: 2. OrganizingBasic Management Functions: 2. OrganizingOrganizing: organizing can be thought of as assigning the

tasks developed under the planning function to various individuals or groups within the organization.

It is a mechanism to put plans into action.

It includes determining tasks and groupings of work, in an adaptable and flexible way to meet challenges as circumstances change.

Tasks are organized so that the output of individuals contributes to the success of departments, which, in turn, contributes to the success of divisions, which ultimately contributes to the success of the organization.


Basic Management Functions: 3. InfluencingBasic Management Functions: 3. InfluencingBasic Management Functions: 3. InfluencingBasic Management Functions: 3. InfluencingInfluencing (motivating - leading – directing – actuating): is

guiding the activities of organization members in appropriate directions. It is concerned primarily with people within organizations.

An appropriate direction is any direction that helps the organization move toward goal attainment.

Purpose: to increase productivity.

Compare: Human-oriented production vs. task-oriented work


Basic Management Functions: 4. ControllingBasic Management Functions: 4. ControllingBasic Management Functions: 4. ControllingBasic Management Functions: 4. ControllingControlling: is the management function through which

managers:

1. Gather information that measures recent performance within the organization.

2. Compare present performance to pre-established performance standards.

3. From this comparison, determine whether he organization should be modified to meet pre-established standards.

Controlling is an ongoing (continual) process.


Mistakes Commonly Made by ManagersMistakes Commonly Made by ManagersMistakes Commonly Made by ManagersMistakes Commonly Made by Managers


Management Process and Goal AttainmentManagement Process and Goal AttainmentManagement Process and Goal AttainmentManagement Process and Goal AttainmentThe four functions of management are integrally related They cannot be separated in practice. They are interrelated because the performance of one depends

on the performance of the others (examples?)

Managers use these activities for reaching organizational goals


Management Process and Goal AttainmentManagement Process and Goal AttainmentManagement Process and Goal AttainmentManagement Process and Goal Attainment


Management Process and Goal AttainmentManagement Process and Goal AttainmentManagement Process and Goal AttainmentManagement Process and Goal AttainmentManagement Characteristics that Best Describe Excellently Run

Companies:Bias for action

Closeness to customer

Autonomy and entrepreneurship

Productivity through people

Hands-on, value-driven orientation

“Sticking to the knitting’’

Simple organizational form with lean staff

Simultaneous loose-tight properties


Management and Organizational ResourcesManagement and Organizational ResourcesManagement and Organizational ResourcesManagement and Organizational ResourcesOrganizational Resources: composed of all assets available

for activation during the production process

Four basic types:1.Human2.Monetary3.Raw materials4.Capital

The following figure shows, organizational resources are combined, used, and transformed into finished products during the production process.


Management and Organizational ResourcesManagement and Organizational ResourcesManagement and Organizational ResourcesManagement and Organizational Resources


Management and Organizational ResourcesManagement and Organizational ResourcesManagement and Organizational ResourcesManagement and Organizational Resources1. Human Resources

Are the people who work for an organization (Knowledge & skills)

2. Monetary Resources Are the money used to purchase goods and services for the

organization

3. Raw Materials Are ingredients used directly in the manufacturing of products

(e.g. rubber, wood, …etc)

4. Capital Resources Are machines and equipments used during the manufacturing

process (what’s the effect of worn-out (damaged) machines?)


Managerial EffectivenessManagerial EffectivenessManagerial EffectivenessManagerial EffectivenessManagerial Effectiveness: is the management’s use of

organizational resources in meeting organizational goals.

Managers must strive to be both effective and efficient in using org. resources

If organizations are using their resources to attain their goals, the managers are said to be effective.

Managerial effectiveness can be measure by degrees. The closer an organization comes to achieving its goals, the more effective its managers are considered to be.

Managerial effectiveness, then, exists on a continuum ranging from ineffective to effective.


Managerial EffectivenessManagerial EffectivenessManagerial EffectivenessManagerial EffectivenessManagerial effectiveness, then, exists on a continuum ranging from

ineffective to effective.

Ineffective Effective


Managerial EfficiencyManagerial EfficiencyManagerial EfficiencyManagerial EfficiencyManagerial Efficiency: is the proportion of total organizational

resources that contribute to productivity during the manufacturing process.

Efficient means that a large proportion of resources contributes to productivity. Inefficient means that a small proportion of total resources contributes to productivity.

The more resources wasted or unused during the production process, the more inefficient the manager, and vice versa.

Organizational resources includes raw materials, human effort, …etc.


Managerial EfficiencyManagerial EfficiencyManagerial EfficiencyManagerial EfficiencyLike management effectiveness, management efficiency is best

described as being on a continuum ranging from inefficient to efficient.

Inefficient Efficient


Relation Between Managerial Effectiveness & EfficiencyRelation Between Managerial Effectiveness & EfficiencyRelation Between Managerial Effectiveness & EfficiencyRelation Between Managerial Effectiveness & EfficiencyA manager can be effective without being efficient, and vice

versa.

To maximize organizational success, both effectiveness and efficiency are essential.

For example: A manager could be relatively ineffective (little goal attainment) because of major inefficiencies (waste/poor utilization of resources) (situation # )

Also, a manager can be effective despite being inefficient (situation # ) (if demand for goods is so high that the manager can get an extremely high price per unit sold and thus absorb inefficiency costs)

1

2


Relation Between Managerial Effectiveness & EfficiencyRelation Between Managerial Effectiveness & EfficiencyRelation Between Managerial Effectiveness & EfficiencyRelation Between Managerial Effectiveness & Efficiency

Maximum org. success

1 2

3 4


Management Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: is the ability to carry out the process of

reaching organizational goals by working with and through people and other organizational recourses.

It is important to learn and develop these skills, because they are the prerequisite for management success

Companies focus on improving the skills of their managers because management skills are so critical to the success of the organization


Management Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skill: A Classic View

Managers’ ability to perform is a result of their managerial skills

With the necessary management skills → perform well, be successfulWithout the necessary management skills → perform poorly, be unsuccessful


Management Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skill: A Classic ViewThe three types of skills are important for successful management performance:1.Technical Skills:

involve the ability to apply specialized knowledge and expertise to work-related techniques and procedures. (examples?)

Work with things (processes & physical objects)2.Human Skills:

Build cooperation within the team being ledWorking with people (attitudes &communication, individual &groups)

3.Conceptual Skills:The ability to see the organization as a whole, to understand how various

functions of the org. complement one another, how the org. relates to its environment, & how change in one part of the org. affect the rest of it.


Management Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skill: A Classic ViewWhat does this chart explain?What is the denominator of all management levels?


Management Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skill: A Contemporary (Modern) View1.Define major activities that managers typically perform2.List skills needed to carry out these activities successfully


Management Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skill: A Contemporary (Modern) ViewThe major activities that modern managers typically perform (three basic types):1.Task-related activities:

Critical management-related duties (include: short-term planning, clarifying objectives of jobs in org., monitoring operations & performance.

2.People-related activities:Managing people (include: provide support & engorgement,

recognition for achievements & contributions, develop skills & confidence of org members, consult when making decisions, empower others to solve problems)


Management Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skill: A Contemporary (Modern) ViewThe major activities that modern managers typically perform (three basic types):

3.Change-related activities:Modifying organizational components (include: monitor org. external

environment, propose new strategies & vision, encourage innovative thinking, taking risks to promote needed change)


Management Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skill: A Contemporary (Modern) ViewNot a list of all skills that managers need to be successful, but an important list containing many of the necessary skills


Management Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skills: The Key to Management SuccessManagement Skill: A focus of This BookSkills categories are too broad to be practicalThey contain more narrowly focused skills (practical & essential abilities)These skills are not valuable on themselves. They are specialized tools to help managers meet important challenges and successfully carry out (=perform = do) the management functions.

Management skill is generally a prerequisite for management success. Managers should strive to develop such skills.The value of individual management skills will vary from manager to another depending on the specific org. situations faced (e.g?)

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