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2007 Prentice Hall, Inc. All rights reserved.,Introduction to Management and Organizations,Chapter1, 2007 Prentice Hall, Inc. All rights reserved.,L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.,Who Are Managers?Explain how managers differ from non-managerial employees.Describe how to classify managers in organizations.What Is Management?Define management.Explain why efficiency and effectiveness are important to management., 2007 Prentice Hall, Inc. All rights reserved.,L E A R N I N G O U T L I N E (contd) Follow this Learning Outline as you read and study this chapter.,What Do Managers Do?Describe the four functions of management.Explain Mintzbergs managerial roles.Describe Katzs three essential managerial skills and how the importance of these skills changes depending on managerial level.Discuss the changes that are impacting managers jobs.Explain why customer service and innovation are important to the managers job., 2007 Prentice Hall, Inc. All rights reserved.,L E A R N I N G O U T L I N E (contd) Follow this Learning Outline as you read and study this chapter.,What Is An Organization?Describe the characteristics of an organization.Explain how the concept of an organization is changing.Why Study Management?Explain the universality of management concept.Discuss why an understanding of management is important.Describe the rewards and challenges of being a manager., 2007 Prentice Hall, Inc. All rights reserved.,Who Are Managers?,ManagerSomeone who coordinates and oversees the work of other people so that organizational goals can be accomplished., 2007 Prentice Hall, Inc. All rights reserved.,Classifying Managers,First-line ManagersIndividuals who manage the work of non-managerial employees.Middle ManagersIndividuals who manage the work of first-line managers.Top ManagersIndividuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 11Managerial Levels, 2007 Prentice Hall, Inc. All rights reserved.,What Is Management?,Managerial ConcernsEfficiency“Doing things right”Getting the most output for the least inputsEffectiveness“Doing the right things”Attaining organizational goals, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 12Effectiveness and Efficiency in Management, 2007 Prentice Hall, Inc. All rights reserved.,What Do Managers Do?,Functional ApproachPlanningDefining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.OrganizingArranging and structuring work to accomplish organizational goals.LeadingWorking with and through people to accomplish goals.ControllingMonitoring, comparing, and correcting work., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 13Management Functions, 2007 Prentice Hall, Inc. All rights reserved.,What Do Managers Do? (contd),Management Roles Approach (Mintzberg)Interpersonal rolesFigurehead, leader, liaisonInformational rolesMonitor, disseminator, spokespersonDecisional rolesDisturbance handler, resource allocator, negotiator, 2007 Prentice Hall, Inc. All rights reserved.,What Managers Actually Do (Mintzberg),Interactionwith otherswith the organizationwith the external context of the organizationReflectionthoughtful thinkingActionpractical doing, 2007 Prentice Hall, Inc. All rights reserved.,What Do Managers Do? (contd),Skills ApproachTechnical skillsKnowledge and proficiency in a specific fieldHuman skillsThe ability to work well with other peopleConceptual skillsThe ability to think and conceptualize about abstract and complex situations concerning the organization, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 15Skills Needed at Different Management Levels, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 16Conceptual Skills,Using information to solve business problemsIdentifying of opportunities for innovationRecognizing problem areas and implementing solutionsSelecting critical information from masses of dataUnderstanding of business uses of technologyUnderstanding of organizations business model,Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (), October 30, 2002., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 16Communication Skills,Ability to transform ideas into words and actionsCredibility among colleagues, peers, and subordinatesListening and asking questionsPresentation skills; spoken formatPresentation skills; written and/or graphic formats,Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (), October 30, 2002., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 16Effectiveness Skills,Contributing to corporate mission/departmental objectivesCustomer focusMultitasking: working at multiple tasks in parallelNegotiating skillsProject managementReviewing operations and implementing improvements,Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (), October 30, 2002., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 16Effectiveness Skills (contd),Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (), October 30, 2002.,Setting and maintaining performance standards internally and externallySetting priorities for attention and activityTime management, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 16Interpersonal Skills (contd),Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (), October 30, 2002.,Coaching and mentoring skillsDiversity skills: working with diverse people and culturesNetworking within the organizationNetworking outside the organizationWorking in teams; cooperation and commitment, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 17Management Skills and Management Function Matrix, 2007 Prentice Hall, Inc. All rights reserved.,How The Managers Job Is Changing,The Increasing Importance of CustomersCustomers: the reason that organizations existManaging customer relationships is the responsibility of all managers and employees.Consistent high quality customer service is essential for survival.InnovationDoing things differently, exploring new territory, and taking risksManagers should encourage employees to be aware of and act on opportunities for innovation., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 18Changes Impacting the Managers Job, 2007 Prentice Hall, Inc. All rights reserved.,What Is An Organization?,An Organization DefinedA deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone).Common Characteristics of OrganizationsHave a distinct purpose (goal)Composed of peopleHave a deliberate structure, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 19Characteristics of Organizations, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 110The Changing Organization, 2007 Prentice Hall, Inc. All rights reserved.,Why Study Management?,The Value of Studying ManagementThe universality of managementGood management is needed in all organizations.The reality of workEmployees either manage or are managed.Rewards and challenges of being a managerManagement offers challenging, exciting and creative opportunities for meaningful and fulfilling work.Successful managers receive significant monetary rewards for their efforts., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 111Universal Need for Management, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 112Rewards and Challenges of Being A Manager, 2007 Prentice Hall, Inc. All rights reserved.,Terms to Know,managerfirst-line managersmiddle managerstop managersmanagementefficiencyeffectivenessplanningorganizingleadingcontrolling,management rolesinterpersonal rolesinformational rolesdecisional rolestechnical skillshuman skillsconceptual skillsorganizationuniversality of management, 2007 Prentice Hall, Inc. All rights reserved.,Management Yesterday and Today,Chapter2, 2007 Prentice Hall, Inc. All rights reserved.,L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.,Historical Background of ManagementExplain why studying management history is important.Describe some early evidences of management practice.Scientific ManagementDescribe the important contributions made by Fredrick W. Taylor and Frank and Lillian Gilbreth.Explain how todays managers use scientific management., 2007 Prentice Hall, Inc. All rights reserved.,L E A R N I N G O U T L I N E (contd) Follow this Learning Outline as you read and study this chapter.,General Administrative TheoryDiscuss Fayols contributions to management theory.Describe Max Webers contribution to management theory.Explain how todays managers use general administrative theory.Quantitative ApproachExplain what the quantitative approach has contributed to the field of management.Discuss how todays managers use the quantitative approach., 2007 Prentice Hall, Inc. All rights reserved.,L E A R N I N G O U T L I N E (contd) Follow this Learning Outline as you read and study this chapter.,Toward Understanding Organizational BehaviorDescribe the contributions of the early advocates of OB.Explain the contributions of the Hawthorne Studies to the field of management.Discuss how todays managers use the behavioral approach.The Systems ApproachDescribe an organization using the systems approach.Discuss how the systems approach helps us management., 2007 Prentice Hall, Inc. All rights reserved.,L E A R N I N G O U T L I N E (contd) Follow this Learning Outline as you read and study this chapter.,The Contingency ApproachExplain how the contingency approach differs from the early theories of management.Discuss how the contingency approach helps us understand management.Current Issues and TrendsExplain why we need to look at the current trends and issues facing managers.Describe the current trends and issues facing managers., 2007 Prentice Hall, Inc. All rights reserved.,Historical Background of Management,Ancient ManagementEgypt (pyramids) and China (Great Wall)Venetians (floating warship assembly lines)Adam SmithPublished “The Wealth of Nations” in 1776Advocated the division of labor (job specialization) to increase the productivity of workersIndustrial RevolutionSubstituted machine power for human laborCreated large organizations in need of management, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 21Development of Major Management Theories, 2007 Prentice Hall, Inc. All rights reserved.,Major Approaches to Management,Scientific ManagementGeneral Administrative TheoryQuantitative ManagementOrganizational BehaviorSystems ApproachContingency Approach, 2007 Prentice Hall, Inc. All rights reserved.,Scientific Management,Fredrick Winslow TaylorThe “father” of scientific managementPublished Principles of Scientific Management (1911)The theory of scientific managementUsing scientific methods to define the “one best way” for a job to be done:Putting the right person on the job with the correct tools and equipment.Having a standardized method of doing the job.Providing an economic incentive to the worker., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 22Taylors Four Principles of Management,Develop a science for each element of an individuals work, which will replace the old rule-of-thumb method.Scientifically select and then train, teach, and develop the worker.Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers., 2007 Prentice Hall, Inc. All rights reserved.,Scientific Management (contd),Frank and Lillian GilbrethFocused on increasing worker productivity through the reduction of wasted motionDeveloped the microchronometer to time worker motions and optimize work performanceHow Do Todays Managers Use Scientific Management?Use time and motion studies to increase productivityHire the best qualified employeesDesign incentive systems based on output, 2007 Prentice Hall, Inc. All rights reserved.,General Administrative Theory,Henri FayolBelieved that the practice of management was distinct from other organizational functions Developed fourteen principles of management that applied to all organizational situationsMax WeberDeveloped a theory of authority based on an ideal type of organization (bureaucracy)Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 23Fayols 14 Principles of Management,Division of work.Authority.Discipline.Unity of command.Unity of direction.Subordination of individual interests to the general interest.,Remuneration.Centralization.Scalar chain.Order.Equity.Stability of tenure of personnel.Initiative.Esprit de corps., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 24Webers Ideal Bureaucracy, 2007 Prentice Hall, Inc. All rights reserved.,Quantitative Approach to Management,Quantitative ApproachAlso called operations research or management scienceEvolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problemsFocuses on improving managerial decision making by applying:Statistics, optimization models, information models, and computer simulations, 2007 Prentice Hall, Inc. All rights reserved.,Understanding Organizational Behavior,Organizational Behavior (OB)The study of the actions of people at work; people are the most important asset of an organizationEarly OB AdvocatesRobert OwenHugo MunsterbergMary Parker FollettChester Barnard, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 25Early Advocates of OB, 2007 Prentice Hall, Inc. All rights reserved.,A series of productivity experiments conducted at Western Electric from 1927 to 1932.Experimental findingsProductivity unexpectedly increased under imposed adverse working conditions.The effect of incentive plans was less than expected.Research conclusionSocial norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives.,The Hawthorne Studies, 2007 Prentice Hall, Inc. All rights reserved.,The Systems Approach,System DefinedA set of interrelated and interdependent parts arranged in a manner that produces a unified whole.Basic Types of SystemsClosed systemsAre not influenced by and do not interact with their environment (all system input and output is internal).Open systemsDynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 26The Organization as an Open System, 2007 Prentice Hall, Inc. All rights reserved.,Implications of the Systems Approach,Coordination of the organizations parts is essential for proper functioning of the entire organization.Decisions and actions taken in one area of the organization will have an effect in other areas of the organization.Organizations are not self-contained and, therefore, must adapt to changes in their external environment., 2007 Prentice Hall, Inc. All rights reserved.,The Contingency Approach,Contingency Approach DefinedAlso sometimes called the situational approach.There is no one universally applicable set of management principles (rules) by which to manage organizations.Organizations are individually different, face different situations (contingency variables), and require different ways of managing., 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 27Popular Contingency Variables,Organization sizeAs size increases, so do the problems of coordination.Routineness of task technologyRoutine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies.Environmental uncertaintyWhat works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment.Individual differencesIndividuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations., 2007 Prentice Hall, Inc. All rights reserved.,Current Trends and Issues,GlobalizationEthicsWorkforce DiversityEntrepreneurshipE-businessKnowledge ManagementLearning OrganizationsQuality Management, 2007 Prentice Hall, Inc. All rights reserved.,Current Trends and Issues (contd),GlobalizationManagement in international organizationsPolitical and cultural challenges of operating in a global marketWorking with people from different culturesCoping with anticapitalist backlashMovement of jobs to countries with low-cost laborEthicsIncreased emphasis on ethics education in college curriculumsIncreased creation and use of codes of ethics by businesses, 2007 Prentice Hall, Inc. All rights reserved.,Exhibit 28A Process for Addressing Ethical Dilemmas,Step 1:What is the ethical dilemma?Step 2:Who are the affected stakeholders?Step 3:What personal, organizational, and external factors are important to my decision?Step 4:What are possible alternatives?Step 5:Make a decision and act on it., 2007 Prentice Hall, Inc. All rights reserved.,Current Trends and Issues (contd),Workforce DiversityIncreasing heterogene
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