Part 1 Meeting the Challenges of the 21st Century

Chapter
1
Management
and Managers

PowerPoint Presentation by Charlie Cook

The University of West Alabama
© 2007 Thomson/South-Western. All rights reserved.
 1

Management and
Managers

By : JUAN RIZAL SA’ARI

© 2007 Thomson/South-Western. All rights reserved. 1–2
 LEARNING OBJECTIVES
When you have finished studying this chapter, you
should be able to:
1. Define what management is.
2. Identify and explain the basic managerial functions.
3. Understand the roles that managers play.
4. Discuss the scope of responsibilities of functional and
general managers.
5. Describe the three levels of managers in terms of the
skills they need and the activities in which they are
involved.
6. Identify major changes in the 21st. century and
explain how they will affect management of
organizations.
© 2007 Thomson/South-Western. All rights reserved. 1–3
 LEARNING OBJECTIVES (cont’d)
When you have finished studying this chapter, you
should be able to:
7. Explain the interactions between all of the major
functions that managers perform; the interactions
between planning, organizing, leading, and
controlling.
8. Explain why it is important to study management.

© 2007 Thomson/South-Western. All rights reserved. 1–4

 What is Management?
• The Classic Definition
 The art of getting things done through people.
–Mary Parker
Follett
• A Broader Definition
 The process of administering and coordinating
resources effectively, efficiently, and in an effort to
achieve the goals of the organization.

© 2007 Thomson/South-Western. All rights reserved. 1–5

 Effectiveness versus Efficiency
• Effectiveness
 Achieved when the organization pursues appropriate
goals.
 This means “doing the right things.”
• Efficiency
 Achieved by using the fewest inputs (e.g., people and
money) to generate a given output.
 This means “doing things right.”
• The end result of effective and efficient
management is organizational success.

© 2007 Thomson/South-Western. All rights reserved. 1–6

 Management Theory
• It is critical for managers to be able to lead
people through the fast pace of change.
 Leadership is about coping with both complexity and
change.
 As change becomes more dynamic and rapid,
managers at all levels must hone their leadership
skills.
 Therefore, leaders are managers and managers are
leaders.

© 2007 Thomson/South-Western. All rights reserved. 1–7

 The Organization
• An Organization
 A group of individuals who work together toward
common goals.
• What do all organizations have in common?
 They are composed of people whose efforts must be
coordinated if the organization is to accomplish its
goals.

© 2007 Thomson/South-Western. All rights reserved. 1–8

 Figure 1.1 The Management Process

© 2007 Thomson/South-Western. All rights reserved. 1–9

 Planning And Organizing
• Planning
 Setting goals and defining the actions necessary to
achieve those goals.
• Organizing
 The process of determining the tasks to be done, who
will do them, and how those tasks will be managed
and coordinated.

© 2007 Thomson/South-Western. All rights reserved. 1–10

 Leading
• Leadership
 The capacity to direct and motivate the members of
work groups toward the accomplishment of
organizational goals.
• Leadership Skills:
 Understanding individual/group behavior dynamics
 Having the ability to motivate employees
 Being an effective communicator
 Being able to envision future and share that vision

© 2007 Thomson/South-Western. All rights reserved. 1–11

 Controlling
• Monitoring the performance of the organization
and its progress in implementing strategic and
operational plans.
 Identifying deviations between planned and actual
results.
 Taking corrective action
 Ensuring that the organization is moving toward the
achievement of its goals.

© 2007 Thomson/South-Western. All rights reserved. 1–12

 Managers
• Managers are the people who plan, organize, lead,
and control the activities of the organization so that
its goals can be achieved.

© 2007 Thomson/South-Western. All rights reserved. 1–13

 Figure 1.2 Mintzberg’s Managerial Roles

© 2007 Thomson/South-Western. All rights reserved. 1–14

 Mintzberg’s Managerial Roles
• Interpersonal Roles
 The manager’s responsibility for managing
relationships with organizational members and other
constituents:
 Figurehead

 Leader

 Liaison

© 2007 Thomson/South-Western. All rights reserved. 1–15

 Mintzberg’s Managerial Roles (cont’d)
• Informational Roles
 The manager’s responsibility for gathering and
disseminating information to the stakeholders of the
organization:
 Monitor

 Disseminator

 Spokesperson

© 2007 Thomson/South-Western. All rights reserved. 1–16

 Mintzberg’s Managerial Roles (cont’d)
• Decisional Roles
 The manager’s responsibility for processing
information and reaching conclusions:
 Entrepreneur

 Disturbance handler
 Resource allocator
 Negotiator

© 2007 Thomson/South-Western. All rights reserved. 1–17

 Scope of Responsibility:
Functional and General Managers

A functional manager is A general manager is

responsible for a work group responsible for several
segmented by function. functional work groups.

Chief Executive
General Parts Inc.

VP of VP of
Production Finance

Plant Service Account Payroll

Manager Manager Manager Manager

© 2007 Thomson/South-Western. All rights reserved. 1–18

 Types of Managers
• Functional Manager
 A manager who is responsible for managing a work
unit that is grouped based on the function served.
• General Manager
 A manager who is responsible for managing several
different departments that are responsible for different
tasks.
• First-line manager
 The manager who supervises the operational
employees.

© 2007 Thomson/South-Western. All rights reserved. 1–19

 Figure 1.3 Managerial Levels

© 2007 Thomson/South-Western. All rights reserved. 1–20

 Figure 1.4 Skills Needed at Different Levels of Management

© 2007 Thomson/South-Western. All rights reserved. 1–21

 Management Skills
• Technical Skills
 The ability to utilize the knowledge of tools,
techniques, and procedures that are specific to a
particular field.
• Human Skills
 The ability to work effectively with one’s own work
group as well as others within the organization.
• Conceptual Skills
 The ability to process information about the
internal/external environment of the organization and
determine its implications.

© 2007 Thomson/South-Western. All rights reserved. 1–22

 The New Manager/Leader Profile
• Managers who:
 Are no longer “the boss,” rather they act as sponsors,
team leaders, or internal consultants.
 No longer control from the top of the pyramid; nor try
to control the action from the sidelines.
 Empower individual employees to do what is
necessary to achieve goals.
 Make sure that employees have the resources to get
the job done.

© 2007 Thomson/South-Western. All rights reserved. 1–23

 Managing in the 21st Century
• What’s different?
 The rate of change continues to increase
• What’s the same?
 The same basic business, economic, and managerial
principles still apply
• Important change factors:
 The Internet and information technology
 Increasing globalization
 Increasing diversity
 Intellectual capital
 Increased emphasis on ethics.

© 2007 Thomson/South-Western. All rights reserved. 1–24

 The Internet And Information Technology
• Electronic commerce is working.
 E-businesses are using basic managerial and
business principles and are profitable.
 Traditional, brick-and-mortar businesses use of the
Internet as a complement their existing businesses.
• Benefits of Information Technology
 Instant feedback from the market
 More sharing of information internally
 Tighter links to suppliers
 Increased globalization and global expansion

© 2007 Thomson/South-Western. All rights reserved. 1–25

 Increasing Globalization of the Marketplace
• Globalization
 Various companies moving to multiple countries and
doing business in multiple countries.
• The international business environment
 Involves most organizations—even the smallest
business can reach a global marketplace with relative
ease.
 Presents unique managerial challenges in terms of
complexity and a broader set of environmental forces.

© 2007 Thomson/South-Western. All rights reserved. 1–26

 Increasing Diversity in the Workplace
• Diversity
 The heterogeneity of the population and work force
• The challenge of diversity
 Developing the strong organizational culture and
group cohesiveness required for organizational
success when the workplace includes people with
different backgrounds, from different nations, or with
different cultural frames of reference.

© 2007 Thomson/South-Western. All rights reserved. 1–27

 The Growing Importance of Intellectual
Capital
• Intellectual capital
 The sum and synergy of an organization’s knowledge,
experience, relationships, processes, discoveries,
innovations, market presence and community
influence.
• Major categories of intellectual capital
 Structural capital
 Customer capital
 Human capital

© 2007 Thomson/South-Western. All rights reserved. 1–28

 Categories of Intellectual Capital
• Structural capital
 The accumulated knowledge of the organization
represented by its patents, trademarks and
copyrights, proprietary databases, and systems.
• Customer capital
 The value of established relationships with
customers and suppliers.
• Human capital
 The cumulative skills and knowledge of the
organization.

© 2007 Thomson/South-Western. All rights reserved. 1–29

 Ethics
• Ethical Behavior
 Behavior that is considered by most to
be acceptable.
• Sarbanes–Oxley Act
 Requires businesses to use certain
accounting rules that would prohibit the
many financial abuses by managers
that came to light in recent years.

© 2007 Thomson/South-Western. All rights reserved. 1–30

 An Overall Framework of Management
• External environment
 The setting in which an organization operates; the
markets and industry.
• Competencies
 The things that an organization can do well; the skills
and abilities.
• The functions of management all interact with
each other, and together they lead to effective
and efficient achievement of an organization’s
overall goals.

© 2007 Thomson/South-Western. All rights reserved. 1–31

 Figure 1–5 An Overall Framework of Management

© 2007 Thomson/South-Western. All rights reserved. 1–32

 Why Study Management?
• Universal applicability
 The basic functions that managers perform, the roles
that managers play, and the skills that managers use
are universal.
• Organizational need
 The basic functions—planning, organizing, leading,
and controlling—are required in every organization.

© 2007 Thomson/South-Western. All rights reserved. 1–33