Chapter 1

INTRODUCTIONTO MANAGEMENT

AND ORGANIZATIONS

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Learning Objectives

You should learn to:– Explain what a manager is and how the role of a manager

has changed– Define management– Distinguish between efficiency and effectiveness– Describe the basic management functions and the

management process– Identify the roles performed by managers

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Learning Objectives (cont.)

You should learn to:– Describe the skills managers need– Explain what managers do using the systems

perspective– Identify what managers do using the

contingency perspective– Describe what an organization is and how the

concept of an organization has changed– Explain the value of studying management

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Who Are Managers?

Manager

– someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals

– changing nature of organizations and work has blurred the clear lines of distinction between managers and non-managerial employees

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Who Are Managers? (cont.)

Managerial Titles– First-line managers - manage the work of non-

managerial individuals who are directly involved with the production or creation of the organization’s products

– Middle managers - all managers between the first-line level and the top level of the organization• manage the first-line managers

– Top managers - responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization

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Organizational Levels

Non-managerial Employees

TopManagers

MiddleManagers

First-lineManagers

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What Is Management?

Management

– the process of coordinating work activities so that they are completed efficiently and effectively with and through other people

– elements of definition

• Process - represents ongoing functions or primary activities engaged in by managers

• Coordinating - distinguishes a managerial position from a non-managerial one

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What is Management? (cont.)

Management (cont.)– elements of definition

• Efficiency - getting the most output from the least amount of inputs

–“doing things right”–concerned with means

• Effectiveness - completing activities so that organizational goals are attained

–“doing the right things” –concerned with ends

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Efficiency and Effectiveness in Management

Management Strives For:Low resource waste (high efficiency)

High goal attainment (high effectiveness)

ResourceUsage

Efficiency (Means)

GoalAttainment

Effectiveness (Ends)

Low Waste High Attainment

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What Do Managers Do?Management Functions and Process

– most useful conceptualization of the manager’s job– Planning - defining goals, establishing strategies for achieving those

goals, and developing plans to integrate and coordinate activities– Organizing - determining what tasks are to be done, who is to do

them, how the tasks are to be grouped, who reports to whom, and where decisions are made

– Leading - directing and motivating all involved parties and dealing with employee behavior issues

– Controlling - monitoring activities to ensure that they are going as planned

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What Do Managers Do? (cont.)

Management Functions and Process (cont.)

– Management process

• set of ongoing decisions and work activities in which managers engage as they plan, organize, lead, and control

• managerial activities are usually done in a continuous manner

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Management functionsPlanning: defining goals, establishing strategy, developing sub-

plans to coordinate activities

Organizing: determining what needs to be done, how will it be done, who will do it.

Leading: directing and motivating all involved parties and resolving conflicts

Controlling: monitoring activities to ensure that they are accomplished as planned

What Do Managers Do? (cont.)

Management Roles

– specific categories of managerial behavior

• Interpersonal - involve people and duties that are ceremonial and symbolic in nature

• Informational - receiving, collecting, and disseminating information

• Decisional - revolve around making choices

– emphasis that managers give to the various roles seems to change with their organizational level

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Managerial Roles

Interpersonal

Figure head: Symbolic head obliged to perform number of routine duties of legal or social nature

Leader: Responsible for motivation of subordinates, responsible for staffing, training, and associated duties

Liaison: Maintains self developed network of outside contacts and informers who provide favors and information

Informational

Monitor: seeks and receives wide variety of internal and external information to develop thorough understanding of organization and environment

Dissementor: Transmits information received from outsiders and insiders to members of the organization

;

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Spokesperson: Transmits information to outsiders on organization plans, policies, actions, results

Decisional Roles:

Entrepreneur: searches organization and environment for opportunities and initiates” improvement projects” to bring about the changes

Disturbance Handler: Responsible for corrective action when organization faces important, unexpected disturbances

Resource Allocator: Responsible for allocation of organizational resources of all kinds – making or approving all significant organizational decisions

Negotiator: responsible for representing the organization for all major negotiations

EXHIBIT 1.4: MINTZBERG’S MANAGERIAL ROLES

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What Do Managers Do? (cont.)Management Skills

– Technical - knowledge of and proficiency in a certain specialized field

– Human - ability to work well with other people both individually and in a group

– Conceptual - ability to think and to conceptualize about abstract and complex situations• see the organization as a whole• understand the relationships among subunits• visualize how the organization fits into its broader environment

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EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS

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What Do Managers Do? (cont.)Managing Systems

– System - a set of interrelated and interdependent parts arranged in a manner that produces a unified whole• provides a more general and broader picture of what

managers do than the other perspectives provide– Closed system - not influenced by and do not interact

with their environment– Open system - dramatically interact with their

environment• organizations - take in inputs from their environments

– transform or process inputs into outputs– outputs are distributed into the environment

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System

The Organization As An Open System

TransformationEmployee’s work activitiesManagement activitiesTechnology and operations methods

OutputsInputsRaw materials

Human resourcesCapital

TechnologyInformation

Products and servicesFinancial results

InformationHuman results

Environment

Environment

Feedback

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What Do Managers Do? (cont.)

Managing Systems (cont.)– managers must

• coordinate various work activities• ensure that interdependent parts work together• recognize and understand the impact of various

external factors – decisions and actions taken in one organizational

area will affect other areas and vice versa

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What Do Managers Do? (cont.)

Managing in Different and Changing Situations

– require managers to use different approaches and techniques

– Contingency perspective - different ways of managing are required in different organizations and different circumstances

• stresses that there are no simplistic or universal rules

• contingency variable

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EXHIBIT 1.8: POPULAR CONTINGENCY VARIABLES

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What Is An Organization?Organization

– a deliberate arrangement of people to accomplish some specific purpose• elements of definition

– each organization has a distinct purpose– each organization is composed of people– all organizations develop some deliberate structure

– today’s organizations have adopted:• flexible work arrangements• open communications• greater responsiveness to changes

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EXHIBIT 1.10: THE CHANGING ORGANIZATION

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Why Study Management?Universality of Management

– management is needed

• in all types and sizes of organizations

• at all organizational levels

• in all work areas

– management functions must be performed in all organizations

• consequently, have vested interest in improving management

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EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT

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Why Study Management? (cont.)

The Reality of Work

– most people have some managerial responsibilities

– most people work for a manager

Challenges of Being a Manager- being a manager is hard work- must deal with a variety of personalities- must motivate workers in the face of uncertainty

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Why Study Management? (cont.)

Rewards of Being a Manager– create an environment that allows others to do

their best work

– provide opportunities to think creatively

– help others find meaning and fulfillment

– meet and work with a variety of people

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