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Management
                                INTRODUCTION
               Chapter
                                TO MANAGEMENT
               1                AND
Presented by: Elbert M. Areja
                                ORGANIZATIONS
Masters in Management
February 22, 2012
                                                1–1
LEARNING OUTCOMES
THE OUTLINE OF THIS REPORT


1.1 Who Are Managers?
  •   Explain how managers differ from non-
      managerial employees.
  •   Describe how to classify managers in
      organizations.
1.2 What Is Management?
  • Define management.
  • Explain why efficiency and effectiveness are
    important to management.
                                                   1–2
LEARNING OUTCOMES
1.3 What Do Managers Do?
  •   Describe the four functions of management.
  •   Explain Mintzberg’s managerial roles.
  •   Describe Katz’s three essential managerial skills
      and how the importance of these skills changes
      depending on managerial level.
  •   Discuss the changes that are impacting
      manager’s jobs.
  •   Explain why customer service and innovation are
      important to the manager’s job.

                                                          1–3
LEARNING OUTCOMES
1.4 What Is An Organization?
  •   Explain the characteristics of an organization.
  •   Describe how today’s organizations are
      structured.
1.5 Why Study Management?
  •   Discuss why it’s important to understand
      management.
  •   Explain the universality of management concept.
  •   Describe the rewards and challenges of being a
      manager.


                                                        1–4
WHO ARE MANAGERS?
   Manager
     Someone  who coordinates and oversees the
     work of other people so that organizational
     goals can be accomplished.




                                                   1–5
CLASSIFYING MANAGERS
   First-line Managers
       Individuals who manage the work of non-managerial
        employees.
   Middle Managers
       Individuals who manage the work of first-line
        managers.
   Top Managers
       Individuals who are responsible for making
        organization-wide decisions and establishing plans
        and goals that affect the entire organization.

                                                             1–6
MANAGERIAL LEVELS




                    1–7
WOMEN IN MANAGERIAL POSITIONS AROUND
         THE WORLD

                  Women in       Women in Top
                  Management     Manager’s Job

  Australia       41.9 percent   3.0 percent
  Canada          36.3 percent   4.2 percent
  Germany         35.6 percent   N/A
  Japan           10.1 percent   N/A
  Philippines     57.8 percent   N/A
  United States   50.6 percent   2.6 percent



                                                 1–8
WHAT IS MANAGEMENT?

   Management involves coordinating and
    overseeing the work activities of others so
    that their activities are completed
    efficiently and effectively.




                                                  1–9
MANAGEMENT: DEFINITION
 Acc to Harold Koontz: Management is the art
  of getting things done through & with an formally
  organized group
 Acc to Henry Fayol: To manage is to forecast
  & plan, to organize, to compound, to co-ordinate
  and to control
 PODSCORB:
-
  Planning, Organizing, Directing, Staffing, Co
  ntrolling, Co-ordinating, Reporting &
  Budgeting
HENRY FAYOL (1841-1925)

 Was a french industrialist
 Given :
     Elements   of Management-
      Planning, Organizing, Commanding, Co-
      ordination & Control
     Qualities of Manager:
      Physical, Mental, Moral, General
      Education, Special Knowledge & Experience
     Principles of Management
PRINCIPLES OF MANAGEMENT
 Division of work
 Authority & responsibilty
 Discipline
 Unity of command
 Unity of direction
 Subordinate of individual interest to group
  interest
 Remuneration of personnel
 Centralization
 Scalar Chain
PRINCIPLES OF MANAGEMENT

 Order
 Equity

 Stability of tenure of personnel

 Initiative

 Espirit De Corps
FEATURES OF MANAGEMENT
 Art as well as Science
 Management is an activity
 Management is a continuous process
 Management achieving pre-determined
  objectives
 Organized activities
 Management is a factor of production
 Management as a system
 Management is a discipline
FEATURES OF MANAGEMENT

 Management is a distinct entity
 Management aims at maximising profit

 Management is a purposeful activity

 Management is a profession

 Universal application

 Management is getting things done

 Management is needed at all levels
WHAT IS MANAGEMENT?
   Managerial Concerns
     Efficiency
        “Doing   things right”
             Getting the most output
              for the least inputs
     Effectiveness
        “Doing   the right things”
             Attaining
              organizational goals




                                        1–16
EFFECTIVENESS AND EFFICIENCY IN
            MANAGEMENT




                                  1–17
WHAT MANAGERS DO?
   Three Approaches to Defining What
    Managers Do.
     Functions  they perform.
     Roles they play.

     Skills they need.




                                        1–18
WHAT MANAGERS DO?
   Functions Manager’s Perform
       Planning
          Defining goals, establishing strategies to achieve
          goals, developing plans to integrate and coordinate
          activities.
       Organizing
          Arrangingand structuring work to accomplish
          organizational goals.
       Leading
          Working    with and through people to accomplish goals.
       Controlling
          Monitoring,   comparing, and correcting work.

                                                                     1–19
MANAGEMENT FUNCTIONS




                       1–20
MANAGEMENT
FUNCTIONS




Management Functions:
planning, organizing,
leading, and controlling
DISTRIBUTION OF TIME PER ACTIVITY BY
 ORGANIZATIONAL LEVEL




Source: Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll,
“The Job(s) of Management,” Industrial Relations 4, No.2 (1965), p.103.
WHAT MANAGERS DO?

   Roles Manager’s Play
     Roles  are specific actions or behaviors
      expected of a manager.
     Mintzberg identified 10 roles grouped around
      interpersonal relationships, the transfer of
      information, and decision making.




                                                     1–23
WHAT MANAGERS DO?
   Management Roles
    (Mintzberg)
       Interpersonal roles
          Figurehead,   leader, liaison
       Informational roles
          Monitor,
                 disseminator, spok
          esperson
       Decisional roles
          Entrepreneur, disturbance
          handler, resource
          allocator, negotiator

                                           1–24
WHAT MANAGERS DO (MINTZBERG)

    Actions
      thoughtful thinking
      practical doing




                               1–25
Mintzberg’s Managerial Roles
           Interpersonal Roles
              • Figurehead
              • Leader
              • Liaison
           Interpersonal Roles
              • Monitor
              • Disseminator
              • Spokesperson
           Decisional Roles
              • Entrepreneur
              • Disturbance handler
              • Resource allocator
              • Negotiator
Adapted from Mintzberg, Henry,
The Nature of Managerial Work,
1st Edition, © 1980, pp. 93–94..


                                      1–26
WHAT MANAGERS DO?


   Skills Managers Need
     Technical   skills
       Knowledge    and proficiency in a specific field
     Human    skills
       The   ability to work well with other people
     Conceptual    skills
       The ability to think and conceptualize about abstract
        and complex situations concerning the organization

                                                            1–27
SKILLS NEEDED AT DIFFERENT
           MANAGEMENT LEVELS




                               1–28
CONCEPTUAL SKILLS

 • Ability to use information to solve business
   problems
 • Identification of opportunities for innovation
 • Recognition of problem areas and
   implementation of solutions
 • Selection of critical information from masses of
   data
 • Understanding of business uses of technology
 • Understanding of organization’s business model
Source: Based on American Management Association Survey of Managerial Skills and
Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.




                                                                                         1–29
COMMUNICATION SKILLS

 • Ability to transform ideas into words and actions
 • Credibility among colleagues, peers, and
   subordinates
 • Listening and asking questions
 • Presentation skills; spoken format
 • Presentation skills; written and/or graphic
   formats


Source: Based on American Management Association Survey of Managerial Skills and
Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

                                                                                         1–30
EFFECTIVENESS SKILLS
 • Contributing to corporate mission/departmental
   objectives
 • Customer focus
 • Multitasking: working at multiple tasks in parallel
 • Negotiating skills
 • Project management
 • Reviewing operations and implementing
   improvements
Source: Based on American Management Association Survey of Managerial Skills and
Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.




                                                                                         1–31
INTERPERSONAL SKILLS


 • Coaching and mentoring skills
 • Diversity skills: working with diverse people and
   cultures
 • Networking within the organization
 • Networking outside the organization
 • Working in teams; cooperation and commitment

Source: Based on American Management Association Survey of Managerial Skills and
Competencies, March/April 2000, found on AMA Web site (www.amanet.org), October 30, 2002.




                                                                                            1–32
MANAGEMENT SKILLS AND MANAGEMENT FUNCTION MATRIX




                                            Exhibit 1.7
                                                      1–33
HOW THE MANAGER’S JOB IS
CHANGING
   The Increasing Importance of Customers
     Customers:    the reason that organizations
      exist
        Managing   customer relationships is the
         responsibility of all managers and employees.
        Consistent high quality customer service is
         essential for survival.
   Innovation
     Doing   things differently, exploring new
      territory, and taking risks
        Managers should encourage employees to be
        aware of and act on opportunities for innovation.
                                                            1–34
CHANGES
IMPACTING
THE MANAGER’S
JOB




                1–35
WHAT IS AN ORGANIZATION?

   An Organization Defined
    A  deliberate arrangement of people to
      accomplish some specific purpose (that
      individuals independently could not accomplish
      alone).
   Common Characteristics of Organizations
     Have a distinct purpose (goal)
     Composed of people

     Have a deliberate structure


                                                       1–36
CHARACTERISTICS OF ORGANIZATIONS
THE CHANGING ORGANIZATION




                            Exhibit 1.10
                                       1–39
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 and creative
          opportunities for meaningful and fulfilling work.
          Successful   managers receive significant monetary rewards
          for their efforts.

                                                                    1–40
UNIVERSAL NEED FOR MANAGEMENT




                                1–41
REWARDS AND CHALLENGES OF
          BEING A MANAGER




                            1–42

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Introduction to Management and Organizations

  • 1. Management INTRODUCTION Chapter TO MANAGEMENT 1 AND Presented by: Elbert M. Areja ORGANIZATIONS Masters in Management February 22, 2012 1–1
  • 2. LEARNING OUTCOMES THE OUTLINE OF THIS REPORT 1.1 Who Are Managers? • Explain how managers differ from non- managerial employees. • Describe how to classify managers in organizations. 1.2 What Is Management? • Define management. • Explain why efficiency and effectiveness are important to management. 1–2
  • 3. LEARNING OUTCOMES 1.3 What Do Managers Do? • Describe the four functions of management. • Explain Mintzberg’s managerial roles. • Describe Katz’s three essential managerial skills and how the importance of these skills changes depending on managerial level. • Discuss the changes that are impacting manager’s jobs. • Explain why customer service and innovation are important to the manager’s job. 1–3
  • 4. LEARNING OUTCOMES 1.4 What Is An Organization? • Explain the characteristics of an organization. • Describe how today’s organizations are structured. 1.5 Why Study Management? • Discuss why it’s important to understand management. • Explain the universality of management concept. • Describe the rewards and challenges of being a manager. 1–4
  • 5. WHO ARE MANAGERS?  Manager  Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished. 1–5
  • 6. CLASSIFYING MANAGERS  First-line Managers  Individuals who manage the work of non-managerial employees.  Middle Managers  Individuals who manage the work of first-line managers.  Top Managers  Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization. 1–6
  • 8. WOMEN IN MANAGERIAL POSITIONS AROUND THE WORLD Women in Women in Top Management Manager’s Job Australia 41.9 percent 3.0 percent Canada 36.3 percent 4.2 percent Germany 35.6 percent N/A Japan 10.1 percent N/A Philippines 57.8 percent N/A United States 50.6 percent 2.6 percent 1–8
  • 9. WHAT IS MANAGEMENT?  Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. 1–9
  • 10. MANAGEMENT: DEFINITION  Acc to Harold Koontz: Management is the art of getting things done through & with an formally organized group  Acc to Henry Fayol: To manage is to forecast & plan, to organize, to compound, to co-ordinate and to control  PODSCORB: - Planning, Organizing, Directing, Staffing, Co ntrolling, Co-ordinating, Reporting & Budgeting
  • 11. HENRY FAYOL (1841-1925)  Was a french industrialist  Given :  Elements of Management- Planning, Organizing, Commanding, Co- ordination & Control  Qualities of Manager: Physical, Mental, Moral, General Education, Special Knowledge & Experience  Principles of Management
  • 12. PRINCIPLES OF MANAGEMENT  Division of work  Authority & responsibilty  Discipline  Unity of command  Unity of direction  Subordinate of individual interest to group interest  Remuneration of personnel  Centralization  Scalar Chain
  • 13. PRINCIPLES OF MANAGEMENT  Order  Equity  Stability of tenure of personnel  Initiative  Espirit De Corps
  • 14. FEATURES OF MANAGEMENT  Art as well as Science  Management is an activity  Management is a continuous process  Management achieving pre-determined objectives  Organized activities  Management is a factor of production  Management as a system  Management is a discipline
  • 15. FEATURES OF MANAGEMENT  Management is a distinct entity  Management aims at maximising profit  Management is a purposeful activity  Management is a profession  Universal application  Management is getting things done  Management is needed at all levels
  • 16. WHAT IS MANAGEMENT?  Managerial Concerns  Efficiency  “Doing things right”  Getting the most output for the least inputs  Effectiveness  “Doing the right things”  Attaining organizational goals 1–16
  • 17. EFFECTIVENESS AND EFFICIENCY IN MANAGEMENT 1–17
  • 18. WHAT MANAGERS DO?  Three Approaches to Defining What Managers Do.  Functions they perform.  Roles they play.  Skills they need. 1–18
  • 19. WHAT MANAGERS DO?  Functions Manager’s Perform  Planning  Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.  Organizing  Arrangingand structuring work to accomplish organizational goals.  Leading  Working with and through people to accomplish goals.  Controlling  Monitoring, comparing, and correcting work. 1–19
  • 22. DISTRIBUTION OF TIME PER ACTIVITY BY ORGANIZATIONAL LEVEL Source: Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll, “The Job(s) of Management,” Industrial Relations 4, No.2 (1965), p.103.
  • 23. WHAT MANAGERS DO?  Roles Manager’s Play  Roles are specific actions or behaviors expected of a manager.  Mintzberg identified 10 roles grouped around interpersonal relationships, the transfer of information, and decision making. 1–23
  • 24. WHAT MANAGERS DO?  Management Roles (Mintzberg)  Interpersonal roles  Figurehead, leader, liaison  Informational roles  Monitor, disseminator, spok esperson  Decisional roles  Entrepreneur, disturbance handler, resource allocator, negotiator 1–24
  • 25. WHAT MANAGERS DO (MINTZBERG)  Actions  thoughtful thinking  practical doing 1–25
  • 26. Mintzberg’s Managerial Roles  Interpersonal Roles • Figurehead • Leader • Liaison  Interpersonal Roles • Monitor • Disseminator • Spokesperson  Decisional Roles • Entrepreneur • Disturbance handler • Resource allocator • Negotiator Adapted from Mintzberg, Henry, The Nature of Managerial Work, 1st Edition, © 1980, pp. 93–94.. 1–26
  • 27. WHAT MANAGERS DO?  Skills Managers Need  Technical skills  Knowledge and proficiency in a specific field  Human skills  The ability to work well with other people  Conceptual skills  The ability to think and conceptualize about abstract and complex situations concerning the organization 1–27
  • 28. SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS 1–28
  • 29. CONCEPTUAL SKILLS • Ability to use information to solve business problems • Identification of opportunities for innovation • Recognition of problem areas and implementation of solutions • Selection of critical information from masses of data • Understanding of business uses of technology • Understanding of organization’s business model Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002. 1–29
  • 30. COMMUNICATION SKILLS • Ability to transform ideas into words and actions • Credibility among colleagues, peers, and subordinates • Listening and asking questions • Presentation skills; spoken format • Presentation skills; written and/or graphic formats Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002. 1–30
  • 31. EFFECTIVENESS SKILLS • Contributing to corporate mission/departmental objectives • Customer focus • Multitasking: working at multiple tasks in parallel • Negotiating skills • Project management • Reviewing operations and implementing improvements Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002. 1–31
  • 32. INTERPERSONAL SKILLS • Coaching and mentoring skills • Diversity skills: working with diverse people and cultures • Networking within the organization • Networking outside the organization • Working in teams; cooperation and commitment Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.amanet.org), October 30, 2002. 1–32
  • 33. MANAGEMENT SKILLS AND MANAGEMENT FUNCTION MATRIX Exhibit 1.7 1–33
  • 34. HOW THE MANAGER’S JOB IS CHANGING  The Increasing Importance of Customers  Customers: the reason that organizations exist  Managing customer relationships is the responsibility of all managers and employees.  Consistent high quality customer service is essential for survival.  Innovation  Doing things differently, exploring new territory, and taking risks  Managers should encourage employees to be aware of and act on opportunities for innovation. 1–34
  • 36. WHAT IS AN ORGANIZATION?  An Organization Defined A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone).  Common Characteristics of Organizations  Have a distinct purpose (goal)  Composed of people  Have a deliberate structure 1–36
  • 38. THE CHANGING ORGANIZATION Exhibit 1.10 1–39
  • 39. 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 and creative opportunities for meaningful and fulfilling work.  Successful managers receive significant monetary rewards for their efforts. 1–40
  • 40. UNIVERSAL NEED FOR MANAGEMENT 1–41
  • 41. REWARDS AND CHALLENGES OF BEING A MANAGER 1–42