Evolution of Management_Chapt01

7/31/2019 Evolution of Management_Chapt01

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Contemporary

Management


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Managersand Managing

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:People workingtogether and coordinating their actionsto achieve specific goals.

:A desired future condition thatthe organization seeks to achieve.

:The process of usingorganizational resources to achieve theorganizations goals by... Planning, Organizing, Leading, and

Controlling

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People, Machinery,

Raw materials, Information, skills, Financial capital.

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David Johnson of Campbell Soup

manages his firm to provide qualityfood products.

Physicians, nurses and health careadministrators seek to provide healing

from sickness. McDonalds restaurants provide

burgers, fries and shakes that peoplewant to buy.

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Measures how efficiently and effectivelymanagers use resources to satisfycustomers and achieve goals. A measure of how well resources

are used to achieve a goal. Usually, managers must try to minimize the

input of resources to attain the same goal.

A measure of theappropriateness of the goals chosen (arethese the right goals?), and the degree towhich they are achieved. Organizations are more effective when

managers choose the correct goals and thenachieve them.

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Henri Fayol was the first to describe thefour managerial functions when he wasthe CEO of a large mining company inthe later 1800s.

Fayol noted managers at all levels,operating in a for profit or not for profitorganization, must perform each of thefunctions of:

Planning,organizing,leading,controlling.

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Figure 1.2

PlanningChooseGoals

OrganizingWorking together

LeadingCoordinate

ControllingMonitor & measure

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Planning is the process used bymanagers to identify and selectappropriate goals and courses of actionfor an organization.

1. Which goals should be pursued?2. How should the goal be attained?3. How should resources be allocated?

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In organizing, managers create the structureof working relationships betweenorganizational members that best allowsthem to work together and achieve goals.

Managers will group people into departmentsaccording to the tasks performed. Managers will also lay out lines of authority

and responsibility for members.

An organizational structureis the outcome oforganizing. This structure coordinates andmotivates employees so that they worktogether to achieve goals.

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In leading, managers determine

direction, state a clear vision foremployees to follow, and helpemployees understand the role theyplay in attaining goals.

Leadership involves a manager usingpower, influence, vision, persuasion,and communication skills.

The outcome of the leading function is ahigh level of motivation andcommitment from employees to theorganization.

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In controlling, managers evaluate how wellthe organization is achieving its goals andtakes corrective action to improveperformance.

Managers will monitor individuals,

departments, and the organization todetermine if desired performance has beenreached. Managers will also take action to increase

performance as required.

The outcome of the controlling function isthe accurate measurement of performanceand regulation of efficiency andeffectiveness.

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Organizations often have 3 levels ofmanagers:responsible for day-to-

day operation. They supervise the peopleperforming the activities required to make

the good or service.Supervise first-linemanagers. They are also responsible to findthe best way to use departmental resourcesto achieve goals.

Responsible for theperformance ofalldepartments and havecross-departmental responsibility. Theyestablish organizational goals and monitormiddle managers.

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TopManagers

Middle Managers

First-line Managers

Non-management

Three Levels of Management

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Top Management have soughtmethods to restructure theirorganizations and save costs.

eliminate jobs at alllevels of management. Can lead to higher efficiency. Often results in low morale andcustomer complaints about service.

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expand the tasksand responsibilities of workers. Supervisors might be empowered tomake some resource allocation decisions.

give a groupof employees responsibility for

supervising their own actions. The team can monitor its members andthe quality of the work performed.

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. A role is a set of specific tasks a personperforms because of the position theyhold.

1. Interpersonal2. Informational3. Decisional

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symbolizes the organizationand what it is trying to achieve.

train, counsel, mentor andencourage high employee performance.

link and coordinate peopleinside and outside the organization to helpachieve goals.

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analyzes information from

both the internal and externalenvironment. manager transmitsinformation to influence attitudes andbehavior of employees.

use of information topositively influence the way people inand out of the organization respond to it.

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deciding upon newprojects or programs to initiate and invest.

assumeresponsibility for handling an unexpectedevent or crisis.

assign resources

between functions and divisions, set budgetsof lower managers. seeks to negotiate solutions

between other managers, unions, customers,or shareholders.

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1. the ability to analyzeand diagnose a situation and find the causeand effect.

2. the ability to understand,alter, lead, and control peoples behavior.3. the job-specific

knowledge required to perform a task.Common examples include marketing,

accounting, and manufacturing.

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Top

Managers

Middle

Managers

LineManagers

Conceptual Human Technical

Figure 1.5

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Increasing number of globalorganizations.

Building competitive advantage through

superior efficiency, quality, innovation,and responsiveness. Increasing performance while remaining

ethical managers.

Managing an increasingly diverse workforce.

Using new technologies.

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Evolution of Management_Chapt01