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Part 1: IntroductionPart 1: Introduction
INTRODUCTION
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L E A R N I N G O U T C O M E S
After reading this chapter, You will be
able to:
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1. Describe the difference betweenmanagers and operative employees.
2. Explain what is meant by the termmanagement.
3. Differentiate between efficiency andeffectiveness.
4. Describe the Five primary processes ofmanagement.
5. Classify the three levels of managers andidentify the primary responsibility of
each group.
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L E A R N I N G O U T C O M E S
(contd)
After reading this chapter, you will be ableto:
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6. Summarize the essential roles
performed by managers.
7. Describe the four general skillsnecessary for becoming a successfulmanager.
8. Describe the value of studyingmanagement.
9. Identify the relevance of popularhumanities and social science courses tomanagement practices.
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Organizations
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Organization
A systematic arrangement of people broughttogether to accomplish some specific purpose(that individuals independently could notaccomplish alone); applies to all organizations
for-profit as well as not-for-profit organizations.Where managers work (manage)
Common characteristics
Have a distinct purpose (Goal)Have a deliberate structureComposed ofpeople
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Common Characteristics of Organizations
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EXHIBIT 1.1
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People Differences
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Operatives / Non ManagerialemployeesPeople who work directly on a job or task
and have no responsibility for overseeing
the work of others
ManagersIndividuals in an organization who direct
the activities of others
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Organizational Levels
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EXHIBIT 1.2
/ Operatives
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Identifying Managers
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First-line managers
Supervisors responsible for directing the day-to-day activities ofoperative employees.
Managers who supervise and coordinate the activities of operatingemployees.
Middle managers
Individuals at levels of management between the first-line manager
and top management.Largest group of managers in organizations who are primarily
responsible for implementing the policies and plans of topmanagers. They also supervise and coordinate the activities of lowerlevel managers.
Top managers Individuals who are responsible for making decisions about the
direction of the organization and establishing policies that affect allorganizational members.
The relatively small group of executives who manage the overall
organization. They create the organizations goals, overall strategy,and o eratin olicies.
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Organizational Resources
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HUMAN RESOURCESManagerial talent and labour
FINANCIAL RESOURCESCapital investments to support ongoing and
long-term operations
PHYSICAL RESOURCESRaw materials; office and
production facilities,and equipment
INFORMATIONUsable data, information linkages
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OrganizationsORGANIZATION HUMAN
RESOURCESFINANCIAL
RESOURCESPHYSICAL
RESOURCESINFORMATIONRESOURCES
Shell Oil DrillingWorkersCorporateExecutives
ProfitShareholdersInvestment
RefineriesOffice Building
Sales ForecastOPEC updates
University ofPeshawar
FacultySecretarial
Staff
HEC GrantStudents fee
Alumnicontributions
ComputersCampus
FacilitiesVehicles
ResearchReports
GovernmentPublications
CityGovernmentPeshawar
PoliceOfficersMunicipal
employees
ProvincialGovernmentGrant
Tax revenue
MunicipalBuildingVehicles
SanitationEquipment
EconomicForecastCrime Statistics
Health Updates
24/7 SuperStore
Sales MenStore KeeperCashier
ProfitOwnerInvestments
Store BuildingShelvesFreezers
Pricelist fromSuppliersNewspapers
ads forcom etition
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Management Defined
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ManagementA set of activities directed at an organizations
resources with the aim of achieving organizationalgoals in an efficient and effective manner.
The process of getting things done, effectivelyand efficiently, through and with other people
EfficiencyDOING THINGS RIGHTGetting the most output for the least inputs
Means doing the thing correctly; refers to the relationshipbetween inputs and outputs; seeks to minimize resourcecosts
EffectivenessDOING THE RIGHT THINGSAttaining organizational goals
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EFFICIENTLYUsing resources wisely andUsing resources wisely and
in a cost-effective wayin a cost-effective way
EFFECTIVELYEFFECTIVELYMaking the right decisions andMaking the right decisions and
successfully implementing themsuccessfully implementing them
AndAnd
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Effectiveness and Efficiency in Management
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EXHIBIT 1.3
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Management Process Activities
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EXHIBIT 1.4
Management
process:
1.Planning
2.Organizing
1.Staffing
1.Leading and
2.Controlling
STAFFING
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Management Process
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PlanningPredetermining a course of action for
accomplishing organizational objectives.Includes defining goals, establishing strategy, and
developing plans to coordinate activities.
OrganizingArranging the relationships among work units for
accomplishment of objectives and the granting ofresponsibility and authority to obtain those
objectives.Includes determining what tasks to be done, who is
to do them, how the tasks are to be grouped, whoreports to whom, and where decisions are to be
made
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Management Process
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StaffingSelecting and training people for positions in the
organization.
Leading (Directing)Creating an atmosphere that will assist and
motivate people to achieve desired end results.Includes motivating employees, directing the
activities of others, selecting the most effectivecommunication channel, and resolving conflicts
ControllingEstablishing, measuring, and evaluating
performance of activities toward plannedobjectives.
The process of monitoring performance,
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Kinds of Managers by Leveland Area
Marke
ting
Administra
tion
Othe
r
Human
resources
Operations
Finance
Middle managers
Areas of Management
Levels of Management
First-line managers
Top managers
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Mintzbergs Managerial Roles
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INTERPERSONALFigureheadLeaderLiaison
INFORMATIONALMonitorDisseminatorSpokesperson
DECISIONALEntrepreneurDisturbance handerResource allocatorNegotiator
EXHIBIT 1.5
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Ten Basic Managerial Roles
Category Role Sample Activities
Interpersonal Figurehead Attending ribbon-cutting ceremony for new plantLeader Encouraging employees to improve productivityLiaison Coordinating activities of two projects
Informational Monitor Scanning industry reports to stay abreast of
developmentsDisseminator Sending memos outlining new organizationalinitiatives
Spokesperson Making a speech to discuss growth plans
Decisional Entrepreneur Developing new ideas for innovationDisturbance
handler
Resolving conflict between two subordinates
Resource allocator Reviewing and revising budget requestsNegotiator Reaching agreement with a key supplier or labor
union
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Is The Managers JobUniversal?
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Level in the organizationDo managers manage differently based on where they
are in the organization?
Profit versus not-for-profit
Is managing in a commercial enterprise different thanmanaging in a non-commercial organization?
Size of organizationDoes the size of an organization affect how managers
function in the organization?
Management concepts and national bordersIs management the same in all economic, cultural,
social and political systems?
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Distribution of Time per Activity byOrganizational Level
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EXHIBIT 1.6Source: Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll,The Job(s) of Management, Industrial Relations 4, No.2 (1965), p.103.
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Importance of
Managerial Roles inSmall and LargeBusinesses
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EXHIBIT 1.7Source: Adapted from J. G. P. Paolillo, The Managers Self Assessments of Managerial Roles:Small vs. Large Firms,American Journals of Small Business, JanuaryMarch 1984, pp.6162.
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General Skills for Managers
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Conceptual skillsA managers mental ability to coordinate all of
the organizations interests and activities
Interpersonal/Human skills
A managers ability to work with, understand,mentor, and motivate others, both individuallyand in groups
Technical skillsA managers ability to use the tools, procedures,
and techniques of a specialized fieldPolitical skillsA managers ability to build a power base and
establish the right connections
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Exhibit 15 Skills Needed at Different Management Levels
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Specific Skills for Managers
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Behaviors related to a managerseffectiveness:Controlling the organizations environment
and its resources.
Organizing and coordinating.Handling information.Providing for growth and development.Motivating employees and handling conflicts.
Strategic problem solving.
MANAGEMENT CHARTER INITIATIVE COMPETENCIES FOR MIDDLE
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MANAGEMENT CHARTER INITIATIVE COMPETENCIES FOR MIDDLEMANAGERS
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1. Initiate andimplement changeand improvement inservices, products,and systems.
2. Monitor maintain, and
improve service andproduct delivery.
3. Monitor and controlthe use of resources.
4. Secure effectiveresource allocationfor activities andprojects.
5. Recruit and select
6. Develop teams,individuals, and self
to enhanceperformance.
7. Plan, allocate, andevaluate work carriedout by teams,individuals and self.
8. Create, maintain, andenhance effectiveworking
relationships.
9. Seek, evaluate, andorganize informationfor action.
10.Exchange information
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How Much Importance Does TheMarketplace Put On Managers?
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Good (effective) managerial skills are ascarce commodity.Managerial compensation packages are one
measure of the value that organizations placeon them.Management compensation reflects the market
forces of supply and demand.
Management superstars, like superstar athletes inprofessional sports, are wooed with signing bonuses,interest-free loans, performance incentive packages,and guaranteed contracts.
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Why Study Management?
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We all have a vested interest in improvingthe way organizations are managed.Better organizations are, in part, the result of
good management.
You will eventually either manage or bemanagedGaining an understanding of the management
process provides the foundation for
developing management skills and insight intothe behavior of individuals and theorganizations.
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Management: Science or Art?Science of Management
Assumes that problems can be approachedusing rational, logical, objective, andsystematic ways.Requires the use of technical, diagnostic, and
decision-making skills and techniques to solveproblems.
Art of ManagementDecisions are made and problems solved
using a blend of intuition, experience, instinct,and personal insights.Requires the use of conceptual,
communication, interpersonal, and time-management skills to successfully accomplish
the tasks associated with managerial
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How Does Management Relate ToOther Disciplines?
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AnthropologyAnthropology
EconomicsEconomics PhilosophyPhilosophy
Political SciencePolitical Science PsychologyPsychology
SociologySociology
ManagementManagement
Managing in Organizations
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Managing in OrganizationsFor-profit OrganizationsLarge businesses
Industrial firms, commercial banks, insurancecompanies, retailers, transportation companies,utilities, communication companies, serviceorganizations
Small businesses and start-up businessesInternational management
Not-for-profit OrganizationsGovernmental organizationslocal, state, and
federalEducational organizationspublic and private
schools, colleges, and universitiesHealthcare facilitiespublic hospitals and
HMOsNontraditional settingscommunity, social,
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Terms to Knowmanagerfirst-line managers
middle managers
top managers
management
efficiency
effectiveness
planningorganizing
leading
controlling
management rolesinterpersonal roles
informational roles
decisional roles
technical skills
human skills
conceptual skills
organizationuniversality of
management