Management Chapter 1 Fall 10-11

8/2/2019 Management Chapter 1 Fall 10-11

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American University Of Science And Technology

(AUST)

Faculty of Business Administration

Graduate Program (MBA)

REM 054Management and Marketing

Development Skills

Fall Semester 2010-2011

Dr. Ziad F. Haddad


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Chapter OneIntroduction to

Management

and

Organizations


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Learning OutlineWho Are Managers?

We will explain how manager differ from non-managerial employees.

We will discuss how to classify managers inorganizations.

What Is Management?

Define management.

Contrast efficiency and effectiveness. Explain why efficiency and effectiveness are

important to management.


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Learning Outline (contd)

What Do Managers Do?

Describe the four functions of management.

Explain Mintzbergs managerial roles.Discuss the changes that are impactingmanagers jobs.

Why Study Management?


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Who Are Managers?

A Manager is:Someone who works with and through

other people by coordinating andintegrating their work activities in order to

accomplish organizational goals.


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Classifying Managers by Levels First-line Managers:

Are at the lowest level of managers and manage thework of non-managerial employees. They supervise

and coordinate the activities of operating employees.

Middle Managers:

Large group of managers in organizations who areprimarily responsible for implementing the policiesand plans of top managers. They manage the work offirst-line managers.

Top Managers:The relatively small group of executives whoare

responsible for making organization-wide decisions

and establishing plans and goalsthat affect the entire

organization.


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Managerial Levels


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Kinds of Managers by Area

Marketing Managers:

Work in areas related to getting consumers andclients to buy the organizations products or

servicesnew product development, promotion,and distribution.

Financial Managers:Deal primarily with an organizations financial

resourcesaccounting, cash management, andinvestments.

Operations Managers:Concerned with creating and managing the

systems that create organizations products and

servicesproduction control, inventory, quality

control, plant layout, site selection.


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Kinds of Managers by Area (contd)

Human Resource Managers:

Involved in human resource planning, recruiting andselecting employees, training and development,designing compensation and benefit systems,formulating performance appraisal systems, and

discharging low-performing employees. Administrative Managers:

Generalists who are familiar with all functional areasof management and who are not associated with any

particular management specialty. Other Kinds of Managers:

Organizations have developed specialized managerialpositions (e.g., public relations managers) directly

related to the needs of the organization.


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Kinds of Managers by Level and Area

Middle managers

Areas of Management

Levels of Management

First-line managers

Top managers


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What is an organization?

A group of people working togetherin a structured and coordinatedfashion to achievea set of goals.


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Organizational Resources

Human resources:

Managerial talent and labor

Financial resources:

Capital investments to support

ongoing and long-term operations Physical and

Technological Resources:

Raw materials; office and

production facilities,and equipment

Informational Resources:

Usable data, information linkages


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What is Management?

A set of interrelated activities including:planning and decision making, organizing,

leading, and controlling;

Directed at an organizations resources:human, financial, physical, technological

and informational,

with the aim of achieving organizationalgoals in an efficient and effective manner.


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Management in Organizations

Inputs from the environment

Human resources

Financial resources

Physical and technological

Information resources

Planning

and decision

making

Leading

Organizing

Controlling

Goals attained

Efficiently

Effectively


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The Management Process

Planning and Decision Making:

Setting an organizations goals and selecting a course

of action from a set of alternatives to achieve them.

Organizing:

Determining how activities and resources are to be

grouped. Leading:

The set of processes used to get members of theorganization to work together to advance the interests

of the organization. Controlling:

Monitoring the organizations progress towards its

goals.


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The Management Process (contd)

Organizing:Determining how

best to groupactivities and

resources

Controlling:

Monitoringand correctingongoing activitiesto facilitate goal

attainment

Planning andDecision Making:Setting the organiza-

tion s goals anddeciding how best

to achieve them

Leading:

Motivating membersof the organizationto work in the best

interests of theorganization


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Management Functions


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Primary Purpose of Management

EFFICIENCY

Using resources wiselyand

in a cost-effective way

EFFECTIVENESSMaking the right decisions and

successfully implementing them

And


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Basic Purpose of Management

Managerial Concerns:Efficiency

Doing things right

Getting the most output

for the least inputs

Effectiveness

Doing the right

things

Attaining organizationalgoals


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Effectiveness and Efficiency in Management


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Managerial Roles (Henri Mintzberg)

Interpersonal Roles (3 roles)

Figurehead, leader, and liaison roles: Involve dealing withother people.

Informational Roles (3 roles)

Monitor, disseminator, and spokesperson roles: Involve the

processing of information. Decisional Roles (4 roles)

Entrepreneur, disturbance handler,

resource allocator, and negotiator

Are managerial roles primarily

related to making decisions.


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Ten Basic Managerial Roles (Mintzberg)

Category Role Sample Activities

Interpersonal Figurehead Attending ribbon-cutting ceremony for new plantLeader Encouraging employees to improve productivityLiaison Coordinating activities of two projects

Informational Monitor Scanning industry reports to stay abreast of

developmentsDisseminator Sending memos outlining new organizationalinitiatives

Spokesperson Making a speech to discuss growth plans

Decisional Entrepreneur Developing new ideas for innovation

Disturbancehandler Resolving conflict between two subordinates

Resource allocator Reviewing and revising budget requestsNegotiator Reaching agreement with a key supplier or labor

union


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Managerial Skills Technical Skills:

Skills necessary to accomplish or understand thespecific kind of work being done in anorganization.

Interpersonal Skills:

The ability to communicate with, understand, andmotivate both individuals and groups.

Conceptual Skills:

The managers ability to think in the abstract.

Diagnostic Skills:

The managers ability to visualize the most

appropriate response to a situation.


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Managerial Skills (contd)

Communication Skills:

The managers abilities both to convey ideas andinformation effectively to others and to receiveideas and information effectively from others.

Decision-Making Skills:

The managers ability to recognize and define

problems and opportunities correctly and then toselect an appropriate course of action to solve theproblems and capitalize on opportunities.

Time-Management Skills:

The managers ability to prioritize work, to work

efficiently, and to delegate appropriately.


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Management: Science or Art?

Science of Management:

Assumes that problems can be approached usingrational, logical, objective, and systematic ways.

Requires the use of technical, diagnostic, anddecision-making skills and techniques to solveproblems.

Art of Management:

Decisions are made and problems solved using ablend of intuition, experience, instinct, and

personal insights.Requires the use of conceptual, communication,

interpersonal, and time-management skills tosuccessfully accomplish the tasks associatedwith managerial activities.


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Why Study Management?

The Value of Studying Management:The universality of management

Good management is needed in all organizations.

The reality of work

Employees either manage or are managed.

Rewards and challenges of being a manager

Management offers challenging, exciting andcreative opportunities for meaningful and fulfilling

work.Successful managers receive significant monetary

rewards for their efforts.


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Becoming a Manager?

Sources of Management Skills:

Sound educational

base; continued

life-long educational

experiencesSuccessful

acquisition and

utilization of basic

management skills

Initial job experiences;

continued experiencesthrough a variety of

job assignments


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How The Managers Job Is Changing?

The Increasing Importance of CustomersCustomers: the reason that organizations exist

Managing customer relationships is theresponsibility of all managers and employees.

Consistent high quality customer service isessential for survival.

Innovation

Doing things differently, exploring new territory,

and taking risksManagers should encourage employees to be aware

of and act on opportunities for innovation.


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Universal Need for Management


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NEXT: CHAPTER TWO

Management History

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Management Chapter 1 Fall 10-11

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