Professional Documents
Culture Documents
Management Accounting
Management Accounting
Organization
Chapter 1
Learning Objectives
– 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 manager
– 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 manageme
Who Is a Manager?
• A manager is someone who coordinates and oversees the work
of other people so that organizational goals can be accomplished
• A manager’s job is not about personal achievement
it’s about helping others do their work
Coordinating the work of a departmental group
It might mean supervising a single person
• Changing nature of organizations and work has blurred the clear
lines of distinction between managers and non-managerial
employees
Managers may have work duties not related to coordinating and
overseeing others’ work
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
– Examples; Supervisor, Team Leader
– Middle managers
- all managers between the first-line level and the top level of the organization
- manage the first-line managers
- Examples; District Manager, Division Manager
– Top managers
– responsible for making organization-wide decisions and establishing the
plans and goals that affect the entire organization
– Examples; President, Chief Executive Officer,
Organizational Levels
Top
Managers
Middle
Managers
First-line
Managers
Non-managerial Employees
Who Are Managers?
Where Do They Work?
• An organization is a deliberate arrangement of people to accomplish
some specific purpose
• All are considered organizations and have three common characteristics
• First, an organization has a distinct purpose
This purpose is typically expressed through goals that the organization
hopes to accomplish
• Second, each organization is composed of people.
It takes people to perform the work that’s necessary for the
organization to achieve its goals
• Third, all organizations develop some deliberate structure within which
members do their work
Adherence to explicit job arrangements
What Is Management?
• Management
– the process of coordinating work activities so
that they are completed efficiently and
effectively with and through other people
• Process - represents ongoing functions or
primary activities engaged in by managers
• Coordinating - distinguishes a managerial
position from a non-managerial one
What is Management? (cont.)
• Management (cont.)
• Efficiency - getting the most output from the least amount
of inputs
–“doing things right” (not wasting resources)
–concerned with means
–Examples: cutting inventory levels
–Decreasing the amount of time to manufacture
products
• Effectiveness - completing activities so that organizational
goals are attained
–“doing the right things”
–concerned with ends
Efficiency and Effectiveness in Management
Efficiency (Means) Effectiveness (Ends)
Resource Goal
Usage Attainment
• Informational Roles
• Monitor:
• seeks and receives wide variety of internal and external information to
develop thorough understanding of organization and environment
• Examples: Reading periodicals and reports, maintaining personal contacts
• Disseminator:
• Transmits information received from outsiders or from subordinates to
members of the organization
• Examples: Holding informational meetings, making phone calls to relay
information
• Spokes person:
• Transmits information to outsiders on organization’s plans, policies,
actions, results
• Example:: holding Board meetings, giving information to the media
Managerial Roles
• Decisional Roles:
• Entrepreneur:
• searches organization and environment for opportunities and initiates” improvement
projects” to bring about the changes
• Example: organizing strategy and review sessions to develop new programs
• Disturbance handler:
• Responsible for corrective action when organization faces important unexpected
disturbances
• Examples: organizing strategy and review sessions that involve disturbance and crises
• Resource Allocator:
• Responsible for allocation of organizational resources of all kinds making or approving
all significant organizational decisions
• Example: scheduling, requesting, authorization. Performing any activity that involves
budgeting and the programming of subordinates work
• Negotiator:
• Responsible for representing the organization at any major negotiations
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
• Political Skills
Used to build a power base and establish connections
SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS
Changes
Impact of Changes
Rewards Challenges
• Create a work environment in which • Do hard work
organizational members can work to the • May have duties that are more
best of their ability
clerical than managerial
• Have opportunities to think creatively
and use imagination • Often have to make do with
• Support, coach, and nurture others limited resources
• Receive recognition and status in • Motivate workers in chaotic and
organization and community uncertain situations
• Play a role in influencing organizational • Blend knowledge, skills, ambitions,
outcomes and experiences of a diverse work
• Good managers are needed by group
organizations
• Success depends on others’ work
• Receive appropriate compensation in
the form of salaries, bonuses, and stock performance
options