Principle of managment 1

Chapter 1

INTRODUCTIONTO MANAGEMENT

AND ORGANIZATIONS

© Prentice Hall, 2002 1-1-11

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

© Prentice Hall, 2002 1-1-22

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

© Prentice Hall, 2002 1-1-33

Organizational Levels

Non-managerial Employees

TopManagers

MiddleManagers

First-lineManagers

© Prentice Hall, 2002 1-1-44

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

© Prentice Hall, 2002 1-1-55

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

© Prentice Hall, 2002 1-1-66

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

© Prentice Hall, 2002 1-1-77

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

© Prentice Hall, 2002 1-1-88

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

© Prentice Hall, 2002 1-1-99

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

© Prentice Hall, 2002 1-1-1010

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

© Prentice Hall, 2002 1-1-1111

EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS

© Prentice Hall, 2002 1-1-1212

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

© Prentice Hall, 2002 1-1-1313

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

© Prentice Hall, 2002 1-1-1414

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

© Prentice Hall, 2002 1-1-1515

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

© Prentice Hall, 2002 1-1-1616

EXHIBIT 1.8: POPULAR CONTINGENCY VARIABLES

© Prentice Hall, 2002 1-1-1717

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

© Prentice Hall, 2002 1-1-1818

EXHIBIT 1.10: THE CHANGING ORGANIZATION

© Prentice Hall, 2002 1-1-1919

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

© Prentice Hall, 2002 1-1-2020

EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT

© Prentice Hall, 2002 1-1-2121

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

© Prentice Hall, 2002 1-1-2222

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

© Prentice Hall, 2002 1-1-2323