Chapter 6 - PPT Introduction to Management
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Define what an organization is.
Describe managers and the three managerial levels in
organizations.
Describe management as a process.
Explain communication as an effective tool in organizations.
Explain the differences between efficiency and effectiveness, and
their importance for organizational performance.
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Describe the skills needed by managers and how they differ
according to managerial levels.
Explain the roles of managers in organizations.
Describe the five types of organizational structures.
Explain four main theories of motivation.
LEARNING OUTCOMES (cont.)
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ORGANIZATION
An organization is a systematic arrangement of people who work
together to achieve a common purpose.
There are two types of organizations:
– Profit-oriented
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CORE ELEMENTS OF AN ORGANIZATION
There are three core elements that are common in all
organizations:
– Organizational goals
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co-ordinate, guide and supervise the work and performance of other
organizational members, to attain organizational goals.
A manager’s success depends very much on his/her ability to get
things done through other individuals.
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Top-level managers
Set the goals and provide the strategic directions for the
organization.
Accountable for the overall management of the organization.
Examples; President, Chief Executive Officer, Vice-President
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Responsible for carrying out the goals set by top management.
Perform as linkages between the top level and the first-line
managers.
Examples; District Manager, Division Manager
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Interact and work most closely with the operational
employees.
Responsible to direct and supervise the actual day-to-day work of
the organization at the operating level.
Examples; Supervisor, Team Leader
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What Is Management?
Management
The process of getting things done effectively and efficiently,
with and through people
Effectiveness
“Doing the right things”, doing those tasks that help an
organization reach its goals
Efficiency
Concerned with the means, efficient use of resources like people,
money, and equipment
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Management is the process and activities involved in pursuing
organizational goals efficiently and effectively by planning,
organizing, leading and controlling the organization’s
resources.
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Planning involves setting appropriate and clear goals and
objectives, and establishing appropriate strategies to accomplish
them.
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Leading
Leading is a process of motivating subordinates, and inspiring
others, towards achieving the organizational goals.
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Controlling
Controlling is the process to ensure that performance is as planned
and taking the necessary corrective actions/changes when
needed.
MANAGEMENT FUNCTIONS (cont.)
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The Control Process
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Areas of Management
Human Resource Managers
Operations Managers
Marketing Managers
responsible for getting products from producers to consumers.
Most companies have human resource managers who hire and train
employees, evaluate performance, and determine compensation. At
large firms, separate departments deal with recruiting and hiring,
wage and salary levels, and labor relations.
The term operations refers to the systems by which a firm produces
goods and services. Among other duties, operations managers are
responsible for production, inventory, and quality control.
Manufacturing companies such as Texas Instruments, Ford, and
Caterpillar have a strong need for operations managers at many
levels.
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design and implement systems to gather, organize, and distribute
information
Financial Managers
plan and oversee accounting functions and financial resources
Occupying a fairly new managerial position in many firms,
information managers design and implement systems to gather,
organize, and distribute information. Huge increases in both the
sheer volume of information and the ability to manage it have led
to the emergence of this important function.
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Robert Katz and others describe four critical skills in
managing
Conceptual Skills
Interpersonal Skills
Technical Skills
Political Skills
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The degree to which an organization achieves its goals.
It is about doing the right things, typically in terms of quantity
as well as quality.
Efficiency
The degree of how well resources are used to achieve a goal.
It is about doing the things right.
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Interpersonal roles are primarily concerned with relationships with
other people. The three roles under interpersonal roles are
figurehead, leader, and liaison.
Informational Roles
Managers obtain information and must communicate information to
people inside and outside the organization. The three informational
roles are monitor, disseminator and spokesperson.
Decisional Roles
Decisional roles require managers to plan strategy and utilize
resources. There are four decision roles: entrepreneur, disturbance
handler, resource allocator, and negotiator.
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MANAGERIAL ROLES (cont.)
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ORGANIZATIONAL STRUCTURE
Organizational structure is the organization’s formal framework by
which tasks and jobs are divided, grouped and coordinated.
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Decentralized firms tend to have relatively fewer layers of
management, resulting in a flat organizational structure like that
of the hypothetical
law firm shown in Figure 6.3(a).
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Tall Organizational Structure
characteristic of centralized companies with multiple layers of
management
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Span of Control
The distribution of authority in an organization also affects the
number of people who work for any individual manager.
Span of Control
number of people supervised by one manager
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FUNCTIONAL STRUCTURE
In a functional structure, work activities are grouped according to
functions.
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PRODUCT STRUCTURE
Product structures group all activities and functions needed to
produce and market a particular product/service under one
unit/
department.
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GEOGRAPHICAL STRUCTURE
In a geographical structure, units are divided according to
location or geographical area.
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CUSTOMER STRUCTURE
In a customer structure, units are divided according to the type of
customers an
organization has.
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A matrix structure is a two-dimensional reporting structure that
simultaneously groups people and resources by function and by
project.
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MOTIVATING EMPLOYEES
Motivation is the driving force that is capable of bringing out the
best in people.
A highly motivated person always strive to work harder than an
unmotivated person.
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HIERARCHY OF NEEDS THEORY
According to Maslow, there are five categories of needs that people
seek to satisfy:
Physiological needs
Physiological needs are the most basic human needs such as food,
shelter, clothing and water.
Safety needs
These are the basic needs for a safety and security.
Belongingness needs
Relate to the desire for social interaction, relationships and
friendship with others.
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Esteem needs
Relate to the desire to feel good about oneself and receive
recognition from others.
Self-actualization needs
Relate to the desire for psychological development and growth to
realize one’s full potential as a human being.
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THEORY X AND THEORY Y
Theory X is a negative view that assumes employees are inherently
lazy and relatively lack ambitions at work.
Theory Y is a positive view that assumes employees are ambitious,
self-motivated and willing to accept greater
responsibilities.
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Motivating factors
Factors that are related to the nature of the work itself
(autonomy, responsibility, personal growth, appreciation and
recognition).
Motivator factors are sources of job satisfaction.
Hygiene factors
When hygiene needs are not met, employees become
dissatisfied.
Satisfying hygiene needs will lead to no dissatisfaction, but will
not necessarily make employees satisfied.
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EXPECTANCY THEORY
1. Expectancy
The degree of expectation that exerting an amount of effort will
lead to certain performance.
2. Instrumentality
The degree to which an individual believes that performance will
lead to attaining desired outcomes.
3. Valence
The attractiveness of outcomes as the result of effort and
performance.
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Questions
1) Hewlett-Packard decides to move toward a more centralized
structure. This is an example of which function in the management
process?
A) planning
B) leading
C) organizing
D) controlling
E) monitoring
Answer: C
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Questions
2) Comparing actual performance against standards is an example of
which function of the management process?
A) planning
B) organizing
C) leading
D) controlling
E) strategizing
Answer: D
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Questions
3) Steve motivates employees by rewarding them with additional
vacation when standards are achieved. This is an example of which
function in the management process?
A) leading
B) planning
C) organizing
D) marketing
E) strategizing
Answer: A
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Questions
4) Which type of business constituent has titles such as President
and CEO?
A) first-line managers
B) top managers
C) middle managers
D) power brokers
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Questions
5) Which level of management sets general policies, formulates
strategies, approves all significant decisions, and represents the
company in dealings with other firms and with government
bodies?
A) operations managers
B) production managers
C) top managers
D) middle managers
E) first-line managers
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Questions
6) Titles such as plant manager, operations manager, and division
manager designate which level of management?
A) first-line managers
B) middle managers
C) top managers
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Questions
7) The titles supervisor, office manager, and group leader are
examples of which level of management?
A) top management
B) middle management
C) first-line management
D) operations management
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Questions
8) Which of the following are responsible for production and
quality control?
A) information managers
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Questions
9) Camille Graham is a manager who works well with people and makes
them feel excited about their work. What type of skills is she
illustrating?
A) human relations skills
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Questions
10) Which of the following managers depend most on conceptual
skills?
A) first-line managers
B) top managers
C) middle managers
D) marketing managers
E) financial managers
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Questions
11) Doreen Madison has been tracking product sales for McCoy
Industries. She notices that sales of surgical supplies have fallen
off in the past six months and she is considering strategies to
reverse this trend. This is an example of what function of the
management process?
A) planning
B) organizing
C) leading
D) controlling
E) budgeting
Answer: D
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Questio n
12) Determining how people performing certain tasks can best be
grouped together is called what?
A) departmentalization
B) specialization
C) controlling
D) leadership
E) directing
Answer: A
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Questions
13) What type of departmentalization does Kraft Foods use by having
separate divisions for different types of foods?
A) customer
B) functional
C) geographic
D) product
E) brand
Answer: D
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Questions
14) In tall organizations, which feature describes the span of
control?
A) short
B) tall
C) wide
D) narrow
E) vertical
Answer: D
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Questions
15) Silver Designs is a high-end clothing manufacturer. They have
three divisions producing clothes for men, women, and teens. What
is this an example of?
A) functional departmentalization
B) process departmentalization
C) customer departmentalization
D) product departmentalization
E) geographic departmentalization
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Questions
16) At Ace Products, three vice presidents report to the CEO,
including the VP for Finance, the VP for Marketing, and the VP for
Operations. What type of structure does Ace Products have?
A) divisional
B) matrix
C) regional
D) functional
E) international
Answer: D
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Questions
48) According to Maslow's model, a set of needs will be a motivator
until which of the following occurs?
A) The needs are satisfied.
B) New needs are identified.
C) The person becomes self-motivated.
D) A supervisor changes the work.
E) The needs are replaced by hygiene factors.
Answer: A
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Questions
58) Which of the following helps explain why some people do not
work as hard as they can when their salaries are based purely on
seniority?
A) two-factor theory
C) scientific management
D) expectancy theory
Answer: D
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