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Management SophieHuilinXiaoPhDA ProfessorofInternationalBusinessSchoolofBusinessAdministrationSouthwesternUniversityofFinanceandEconomics TeachingMaterial FundamentalsofManagement SixthEdition StephenP RobbinsChinaRenminUniversityPressManagement NinthEdition StephenP robbinsTsingHuaUniversityPress Experiencemanagementforyourself Howmanyentrepreneurscanyoucountout StevenJob Comeon givemesomebodynew Experiencemanagementforyourself Whoisengagedinmanagementinenterprisearoundyou whosetuphisownbusinessaroundyou Whetherdoyouhavetheexperienceofenterprise Inyoureverydaylife didyouexperienceaboutmanagement WhereisManagement Chapter1IntroductiontoManagement Organizations WhoAreManagers Explainhowmanagersdifferfromnon managerialemployees Describehowtoclassifymanagersinorganizations WhatIsManagement Definemanagement Explainwhyefficiencyandeffectivenessareimportanttomanagement LEARNINGOUTLINE 1FollowthisLearningOutlineasyoureadandstudythischapter WhatDoManagersDo Describethefourfunctionsofmanagement ExplainMintzberg smanagerialroles DescribeKatz sthreeessentialmanagerialskillsandhowtheimportanceoftheseskillschangesdependingonmanageriallevel Discussthechangesthatareimpactingmanagers jobs Explainwhycustomerserviceandinnovationareimportanttothemanager sjob LEARNINGOUTLINE 2FollowthisLearningOutlineasyoureadandstudythischapter WhatIsAnOrganization Describethecharacteristicsofanorganization Explainhowtheconceptofanorganizationischanging WhyStudyManagement Explaintheuniversalityofmanagementconcept Discusswhyanunderstandingofmanagementisimportant Describetherewardsandchallengesofbeingamanager LEARNINGOUTLINE 3FollowthisLearningOutlineasyoureadandstudythischapter AManager sDilemma Theoneerrorthatpeoplemakeearlyonintheircareersisthatthey reveryselectiveaboutopportunities sotheyavoidsome preferothers Ialwaysacceptedallopportunitiesthatpresentedthemselvesbecausefromeachoneyoucanlearnsomething andtheyserveasaplatformforfutureendeavors ThisphilosophyhasguidedJovitaCarranzainhercareeratUnitedParcelService UPS fromherfirstjobin1976asapart timenight shiftclerkattheLosAngeleshubtohercurrentpositionasvicepresidentofairoperations whereshemanagestheworld slargestpackagedistributionfacilityinLouisville Kentucky This 1 1billionfacilityservesasthehubofUPS sinternationalairoperation anditismassive And it sallJovita sresponsibility Inthisposition shemanageshalfofthemorethan25 000employeesinLouisvilleandeveryaspectofthehub soperationfromtechnologyandengineeringtosecurityandhumanresources Althoughshe sawoman andanHispanicwoman atthat inamale dominatedindustry Jovita sdetermination drive innovation andleadershiphavehelpedhersucceed Butsheisthefirsttoacknowledgetheimportantroleherteamplays Shehassurroundedherselfwithcapable skilledemployeeswhoareloyaltothecompanyandcommittedtoresults Shesays Ihavetotalrelianceonthecoordinationofmyteam Icanrelyonmystafftostayontopofwhattheyhaveresponsibilityfor andit sthattrustfactorthatkeepsyoudriven However Jovitadoesn tjustinteractwithherdirect reportingteam Sheremembersherearlydaysofloadingpackagesandrealizeshowimportantitisforhertoalsopersonallyvisitwithfrontlineworkers Ivaluetheinputofthestaffandthefrontlineworkers Oneofmy approaches istositbackandlistenandobserve Youlearnmorebynotspeaking So Let sTalkSomething Jovita sgoalsforthehubincludecontinuingtofindwaystobeefficientandtocontaincostsandcontinuallydevelopingheremployees abilities Putyourselfinhershoes WhatskillswillbemostimportantforJovitatoencourageherfirst linesupervisorstodeveloptohelpreachthesegoals WhatIsManagement ThiscourseusestheDefinitionofRobbins Coordinatinganoverseeingtheworkactivitiesofotherssothattheiractivitiesarecompletedefficientlyandeffectively Diversityofmanagement sdefinition F W Taylor Managementistheactofknowingwhatyouwanttodoandthenseeingthatisdoneinthebestandcheapestway HenriFayol Managementistoforecast plan organize command coordinate andcontrol GeorgeR Terry Managementisadistinctprocessconsistingofplanning organizing actuatingandcontrollingtodetermineandaccomplishtheobjectivesbytheuseofpeopleandresources WillianF Glueck Managementistheeffectiveutilizationofhumanandmaterialresourcestoachievetheenterpriseobjectives koontzandWeihrich Managementistheprocessofdesigningandmaintaininganenviornmentinwhichindividuals workingongroups efficientlyaccomplishselectedaims WhatIsthecoreofManagement ManagerialConcernsEfficiency Doingthingsright GettingthemostoutputfortheleastinputsEffectiveness Doingtherightthings AttainingorganizationalgoalsHONCompany efficientmanufacturingtechniques goals 1 17 Exhibit1 2EffectivenessandEfficiencyinManagement 1 18 Anexampleofefficiencyandeffectivenessmeasures basedonthebalancedscorecard popularisedinaHarvardBusinessReviewarticlebyKaplanandNorton 1993 ASurgeryExample Asurgeonisveryskilled perhapsthebestinthecountry Theimpendingjobistooperateonthepatient sleftknee However thesurgeondoesn tperformallthestepsoftheprocessleadinguptothesurgery Someoneelsemarkstherightkneeforsurgery Howeverskilledthissurgeonis howeverfastheperformsthesurgery i e howeverefficientheis thisprocesswillnotbeeffective Whenthepatientawakensfromthesurgery hewillnotbeahappycamper AndwhatabouttheHMO Whowillpayforasurgeryperformedonthewrongknee TheDoubleAttributeofManagement Naturalmanagement TheuniversityofmanagementrelatedtoproductivitybythedecisionoftheproductivitySocialprocess involvesmanagingpeopleorganizedinworkgroups Management ScienceorArt ManagementisScience specificprinciplesandproceduresManagementisanart experience creativityforachievementofdesiredresults WhoAreManagers ManagerSomeonewhocoordinatesandoverseestheworkofotherpeoplesothatorganizationalgoalscanbeaccomplished 1 23 OperativesPeoplewhoworkdirectlyonajobortaskandhavenoresponsibilityforoverseeingtheworkofothers ManagersIndividualsinanorganizationwhodirecttheactivitiesofothers WhoAreTheTop5ManagersinRoyalsHistory Exhibit1 1ManagerialLevels 1 26 Teamleaders coachesorunitcoordinatorsi g thedepartmentchair Departmentoragencydead projectleader unitchief districtmanager dean bishop ordivisionmanager Vicepresident president chancellor managingdirector i g Google spresidentLarryPage Adobe sseniorvicepresidentofcorporatemarketing WhatDoManagersDo FunctionalApproachPlanningDefininggoals establishingstrategiestoachievegoals developingplanstointegrateandcoordinateactivities OrganizingArrangingandstructuringworktoaccomplishorganizationalgoals LeadingWorkingwithandthroughpeopletoaccomplishgoals Inthedesktopprintingage leadingmanipulationisachievedthroughpagemakingsoftwaresuchasAdobePageMaker AdobeInDesign orQuark Xpress ControllingMonitoring comparing andcorrectingwork 1 27 SuccessfulSuccessionPlanningatApple AshaslongbeenthecasewithApple whenMr Jobssneezesthecompany ssharepricetumbles Basedonthiswell knownrelationship shareholdershaveintroducedaproposalatthecompany s2011annualelectionwhich ifapproved willaskthecompanytoamenditsCorporateGovernanceGuidelinesandtoadoptanddiscloseawrittenCEOsuccessionplanningpolicy AsuccessionplantookplaceyesterdaywiththesuddenresignationofSteveJobsasCEOandtheappointmentofCOOTimCookasCEO Mr Jobsstaysonasanemployeeandaschairman Theboard spositioninallofthisisabsolutelykey Theymustmanagethesuccessionplanproperly ensuringthatMr Jobs influenceisattherightlevelandthatthenewCEOcaneffectivelymanagethecompanywithoutinterference Thisboardhasmademistakesinthepast withanumberofmisstepssurroundingthedisclosureofMr Jobs illness However theannouncementofanorderlysuccessionplanisprobablyasignthattheyhavelearntsomelessonsfrompastmistakes Thisisnotaparticularlydiverseboard however norisitaverylargeone Ontheotherhand thefactthatthereisasubstantialnumberofformerandcurrentCEOsontheboardshouldbeanadvantage They betterthanmost shouldbeabletounderstandwhatMr Cookneedstotakepower IncorporationoftechnologyandknowledgeinWal Mart Wal marthasembracedtechnologyaspartofitsdailyactivitiesespeciallywithincreasedglobalizationwhichhasbeenequivocalinenhancingmarkettrends KnowledgeapplicationasanorganizingfunctionbyWal Marthasresultedinincreasingdiversityofstaffsuchthatemployeesarehiredregardlessofgender raceandethnicitytoenhancetheexistingpoolofknowledge Exhibit1 3ManagementFunctions 1 30 ThefifthManagementFunction innovation managersensure thattheorganizationhasthecapabilitytodevelopinnovativestrategies products servicesandprocesses thattheyindeedmaterialiseInnovativequality InnovationconsciousnessInnovationspiritInnovativethoughtInnovationabilityToyota sleanmanufacturing TheRealWorld DoOrganizationsNeedManagersorLeadersorBoth 1 Howimportantaremanagerstoorganizations Howimportantareleaders Intoday sdynamicenvironment organizationsneedbothstrongleadershipandstrongmanagementforoptimaleffectiveness Leadersareneededtochallengethestatusquo tocreatevisionsofthefuture andtoinspireorganizationalmemberstowanttoachievethosevisions TheRealWorld DoOrganizationsNeedManagersorLeadersorBoth 2 Managersareneededtoformulatedetailedplans tocreateappropriateandsufficientorganizationalstructuresfordoingtheorganization swork tooverseeday to dayoperations andtoimplementappropriateevaluationsystemstoensurethatworkisbeingdoneasplanned Cantheybeoneandthesame Ideally yes It simportantformanagerstobeabletolead afterall itisoneofthefourfunctionsofmanagement A2004surveybytheAmericanManagementAssociationshowedthatmanagersatalllevelsweredevotingmoretimetoleadingthaninthepast Let slookatanexampleofanorganizationthathasrecognizedtheimportantleadershiprolethatmanagers especiallyfirst linemanagers BP theworld slargestintegratedoilandenergycorporationwithbusinessdealingsoneverycontinent hascreatedatrainingprogramforitsfrontlinemanagers whosupervise70percentto80percentofthecompany smorethan100 000worldwideemployees Theirdecisions inaggregate madeanenormousdifferenceinBP sturnover costs quality safety innovation andenvironmentalperformance Theywerealsothepeopleusuallycalledupontopreventsmallproblemsfrombecomingfull scaleoperationaldisasters YetBPdidn thaveacomprehensivetrainingprogramforthem Butthat snolongerthecase Sinceearlyinthetwenty firstcentury BPhasinvestedsignificantresourcesindevelopingitsfrontlinemanagers Oneoftheinitialchangeswastocallthisgroup first levelleaders atitledeliberatelychosentoemphasizethemanagers significancetoBP Thesefirst levelleadersnowgothroughacomprehensivetrainingprogramthatcoverssupervisoryessentials thecontextofBP soverallstrategyanditsimplicationsforallpartsoftheorganization andthoroughtrainingondevelopingbettercommunicationskills managementandleadershipskills andworkteamdynamics So Let sTalkSomething Howsuccessfulhastheprogrambeen BPsaysthatthemanagerswhohavebeenthroughthetrainingareconsistentlyrankedhigherinperformancethanthosewhohaven t OtherBPexecutivessaythattheprogramhashelpedmaketheorganizationmorecollaborativeandcapable Whatcanwelearnfromthisexample Organizationsneedbothstrongleadershipandstrongmanagementforoptimaleffectiveness WhatDoManagersDo cont d ManagementRolesApproach Mintzberg InterpersonalrolesFigurehead leader liaisonInformationalrolesMonitor disseminator spokespersonDecisionalrolesDisturbancehandler resourceallocator negotiator 1 38 Discussioninclass ManagementRole Situation Joeisanassistantdirectorinanenterprise Heisaccusedbecauseeffluentfromtheplantshascausedenvironmentpollution Hehastogototheenvironmentalprotectionauthoritytoexcusedforhisfactory Roseisinchargeoftheproductionmanagement hehasjustreceivedanoticethatarawmaterialsupplymanufacturerswereunabletosupplyontimebecauseofafire Sohemustsolvetheproblematonce Serena Directoroftheoffice andisperplexedbyemployeesinthedepartmentfortheplacementofdesks Question Whatpositionsdotheyplay WhatManagersActuallyDo Mintzberg InteractionwithotherswiththeorganizationwiththeexternalcontextoftheorganizationReflectionthoughtfulthinkingActionpracticaldoing 1 40 WhatDoManagersDo cont d GeneralSkillsTechnicalskillsKnowledgeandproficiencyinaspecificfieldMarkRyanofVerizonCommunicationsmanagesalmost100techniciansHumanskillsTheabilitytoworkwellwithotherpeopleConceptualskillsTheabilitytothinkandconceptualizeaboutabstractandcomplexsituationsconcerningtheorganization 1 41 Exhibit1 5SkillsNeededatDifferentManagementLevels 1 42 Exhibit1 6ConceptualSkills 1 43 UsinginformationtosolvebusinessproblemsIdentifyingofopportunitiesforinnovationRecognizingproblemareasandimplementingsolutionsSelectingcriticalinformationfrommassesofdataUnderstandingofbusinessusesoftechnologyUnderstandingoforganization sbusinessmodel Source BasedonAmericanManagementAssociationSurveyofManagerialSkillsandCompetencies March April2000 foundonAMAWebsite www ama org October30 2002 JadaandBrettHolcombhavebuiltasuccessfulbusinessaroundtheirjewelrycartinanAtlantamall Toreach 300 000inannualrevenues theHolcombshavereliedontheirtechnicalandconceptualskills especiallywhenitcomestoplanning Brettexplainshowplanningavoidsonepitfallofthevendingcartbusiness Onecriticalmistakealotofpeoplemakeisthattheytrytogointoa shopping centerforChristmas thehighest costleasingmonth withanunprovenproduct It snotalwaysthecasethatjustbecauseit stheholidaysyoumakealotofmoney TheHolcombs futureplansincludestayinginthemallbutmovingintothewholesalingendofthebusinessaswell Exhibit1 6CommunicationSkills 1 45 AbilitytotransformideasintowordsandactionsCredibilityamongcolleagues peers andsubordinatesListeningandaskingquestionsPresentationskills spokenformatPresentationskills writtenand orgraphicformats Source BasedonAmericanManagementAssociationSurveyofManagerialSkillsandCompetencies March April2000 foundonAMAWebsite www ama org October30 2002 Exhibit1 6EffectivenessSkills 1 46 Contributingtocorporatemission departmentalobjectivesCustomerfocusMultitasking workingatmultipletasksinparallelNegotiatingskillsProjectmanagementReviewingoperationsandimplementingimprovements Source BasedonAmericanManagementAssociationSurveyofManagerialSkillsandCompetencies March April2000 foundonAMAWebsite www ama org October30 2002 Exhibit1 6EffectivenessSkills cont d 1 47 Source BasedonAmericanManagementAssociationSurveyofManagerialSkillsandCompetencies March April2000 foundonAMAWebsite www ama org October30 2002 SettingandmaintainingperformancestandardsinternallyandexternallySettingprioritiesforattentionandactivityTimemanagement Exhibit1 6InterpersonalSkills cont d 1 48 Source BasedonAmericanManagementAssociationSurveyofManagerialSkillsandCompetencies March April2000 foundonAMAWebsite www ama org October30 2002 CoachingandmentoringskillsDiversityskills workingwithdiversepeopleandculturesNetworkingwithintheorganizationNetworkingoutsidetheorganizationWorkinginteams cooperationandcommitment Exhibit1 7ManagementSkillsandManagementFunctionMatrix 1 49 SpecificSkillsControllingtheorganization senvironmentanditsresourcesOrganizingandcoordinatingHandlinginformationProvidingforgrowthanddevelopmentMotivatingemployeesandhandlingconflictsStrategicproblemsolving Newskills PoliticalSkills ImproveindividualpositionintheorganizationEstablishpower baseTheabilityofmaintainingsocialrelations HowTheManager sJobIsChanging TheIncreasingImportanceofCustomersCustomers thereasonthatorganizationsexistManagingcustomerrelationshipsistheresponsibilityofallmanagersandemployees Consistenthighqualitycustomerserviceisessentialforsurvival InnovationDoingthingsdifferently exploringnewterritory andtakingrisksManagersshouldencourageemployeestobeawareofandactonopportunitiesforinnovation 1 52 Importanceofcustomerstothemanager sjob InthewakeofdevastatingHurricaneKatrina PaulRaines right thesoutherndivisionmanagerofHomeDepot workedfromahotelinBatonRougetocoordinateshipmentsofsuppliestothestrickenareasothatemergencyreliefworkers andeventuallyitscustomers wouldhaveneededmaterialstohelpinrecoveryandrebuildingefforts Exhibit1 8ChangesImpactingtheManager sJob 1 54 Importanceofinnovationtothe
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