Part 1 Meeting the Challenges of the 21st Century

Chapter
1
Management
and Managers

PowerPoint Presentation by Charlie Cook

The University of West Alabama
TOPIC 1

Management and Managers

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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.

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Why Management is considered as an art?
• Management must posses vision
• Management must use judgmental skill
• Management is influenced by contingency
factors
• However, not all management authors agree
that management is an art. Some consider
management as a science. In fact most
management authors consider management as
both an art and a science.

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James Stoner Definition of
Management

•Management is a process of
planning, organizing, leading
and controlling the effort of the
organizational members and
using all other resources in
order to achieve the
organizational goals efficiently
and effectively.
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Elements in Stoner’s definition

1. Management is a process
2. Management must use all
organizational resources
3. Management must establish
goals
4. Management must be both
efficient and effective
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Management is a process of
administering and coordinating
resources efficiently and effectively
to achieve the organizational goals.
( Lewis and others)

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What Is An Organization?

An organization is a group of individuals

who work together toward common goals.

What Do All Organizations Have in

Common?
They are made up of people, and the efforts
of these people must be coordinated if the
organization is to accomplish its goals.
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What Do All Organizations Have in
Common?

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

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Why organizations are needed
1. Serve the society
2. Accomplish objectives
3. Preserve knowledge
4. Provide careers

Explain management in terms of:

A. The management process
B. Managerial responsibility

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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.

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The Management Process

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Planning
• Planning
 Setting goals and defining the actions necessary to
achieve those goals.
Steps in planning
1. Establishing goals
2. Define the present situations.
3. Determine aids and barriers
4. Developing action programs

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Organizing
• Organizing
 The process of determining the tasks to be done, who
will do them, and how those tasks will be managed
and coordinated
 A process of arranging and allocating works and
authority.
Steps in organizing
1.Detailing of work
2.Division of work
3.Aggregation of work
4.Coordination of work
5.Review of performance
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Leading
• Leadership
 The capacity to direct and motivate the members of
work groups toward the accomplishment of
organizational goals.
 A process of influencing and directing other people to
perform organizational tasks.

• 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
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Leading
Elements in leadership:
1. Leadership involves other people
2. Leadership involves unequal distribution of
power
3. Leaders may influence others using different
sources of power

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Controlling
• Monitoring the performance of the organization
and its progress in implementing strategic and
operational plans.
• A process managers ensure that actual activities
conform with planned objectives
 Establishing standards
 Identifying deviations between planned and actual
results.
 Taking corrective action
 Ensuring that the organization is moving toward the
achievement of its goals.

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Managerial Responsibilities
1. Work with and through others
2. Act as a communication channel
3. Responsible and accountable
4. Balance competing needs
5. Think analytically and conceptually
6. Managers as politician
7. Managers as diplomat
8. Managers as symbols
9. Make difficult decisions
10.Managers as mediators
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The role of time
1. Time provide the context for
studying management
2. Management is a process of
building the future using the
present and the past
3. Management is practice and
reflective of a particular era
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The role of human relationship
•Management is a two-way
process
•Management action affects other
people
•Management must juggle multiple
relationship at the same time

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Managerial performance
• A measure of how well managers are
doing their jobs.
• Managerial performance can be
measured using two factors :
• A) Efficiency
• B) Effectiveness

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 Efficiency

•Is an input-output concept

•managers ability to reduce costs,
materials and saves time
•e.g Perodua is considered as
efficient because it is able to
produce lower cost auto
•doing things right
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Effectiveness
•Doing the right things
•ability to achieve target or goals
•e.g a salesman is considered as
effective if he is able to achieve
his sales quota.

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Factors contributing towards
excellent in management
1.Bias for action
2.Staying close to the customer
3.Autonomy and entrepreneurship
4.Productivity through people
5.Hands on value driven
6.Stick to the knitting
7.Simple form lean staff
8.Simultaneous loose tight properties.

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

 Leader

 Liaison

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 Mintzberg’s Managerial Roles
Interpersonal roles
A) Figurehead-a manager performing
ceremonial duties like greeting visitors and
entertaining clients.
B) Leader-Responsible for hiring, training
and motivating subordinates
C) Liaison -a manager establish working
relationship both inside and outside the
organization

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 Mintzberg’s Managerial Roles (cont’d)
• Informational Roles
 The manager’s responsibility for gathering and
disseminating information to the stakeholders of the
organization:
 Monitor:Checking about market info. and other
environmental influences
 Disseminator: Distributes info to other employees
 Spokesperson: Distributes info to other employees

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

 Disturbance handler
 Resource allocator
 Negotiator

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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.

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Functional Manager

Chief Executive
General Parts Inc.

VP of Production VP of Finance

Plant Manager Service Manager Account Manager Payroll Manager

A functional manager is a manager

responsible for a work group
segmented by function.
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General Manager

General Manager
Supermarket, Inc.

Produce Grocery Bakery

Manager Manager Manager

A general manager is a manager

responsible for several different work
groups segmented by task.

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Figure 1.3 Managerial Levels

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Top Managers
•Composed of a comparatively
small group of people
•Also called “executives”
•They are “planners”
•Typical titles: C.E.O , President,
vice president

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Middle Managers
1. Can include more than one level
2. Direct the activities of lower level managers
and sometimes those of operating workers as
well
3. Principles activities are :
A. Direct activities that implement the organization
objectives
B. Balance the demands of their superiors with the
capacities of their employees

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First-Line Managers
•The lowest management level
•Direct non management
employees
•Do not supervise other manager
•E.g Foremen, supervisor, a
school principal and the manager
of a football team.

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Skills Needed at Different Levels of Management

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Management Skills
• Technical Skills
 The ability to utilize the knowledge of tools,
techniques, and procedures that are specific to a
particular field.
 The ability to use the procedure techniques and
knowledge of a specialized field.
 E.g surgeons and engineers have technical skills in
their respective fields.

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Management Skills
• Human Skills
 The ability to work effectively with one’s own work
group as well as others within the organization.
 The ability to work with, understand and motivate
other people.
• Conceptual Skills
 The ability to process information about the
internal/external environment of the organization and
determine its implications.
 Involves seeing the organization as a whole or in
totality .

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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.

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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.
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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

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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.

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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.

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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

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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.

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Ethics
• Ethical Behavior
 Behavior that is considered by most to
be acceptable.

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An Overall Framework of Management

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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.

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Competencies of Tomorrow’s Managers
• The great communicator
• The individual coach
• The team player
• The technology master
• The problem solver
• The foreign ambassador
• The change agent
• The lifelong learner

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