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Part 1 Meeting the Challenges of the 21st Century

Chapter
1
Management
and Managers

PowerPoint Presentation by Charlie Cook


The University of West Alabama
© 2007 Thomson/South-Western. All rights reserved.
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.

© 2007 Thomson/South-Western. All rights reserved. 1–2


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.

© 2007 Thomson/South-Western. All rights reserved. 1–3


Figure 1.1 The Management Process

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Planning And Organizing
• Planning
 Setting goals and defining the actions necessary to
achieve those goals.
• Organizing
 The process of determining the tasks to be done, who
will do them, and how those tasks will be managed
and coordinated.

© 2007 Thomson/South-Western. All rights reserved. 1–5


Leading
• Leadership
 The capacity to direct and motivate the members of
work groups toward the accomplishment of
organizational goals.
• 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

© 2007 Thomson/South-Western. All rights reserved. 1–6


Controlling
• Monitoring the performance of the organization
and its progress in implementing strategic and
operational plans.
 Identifying deviations between planned and actual
results.
 Taking corrective action
 Ensuring that the organization is moving toward the
achievement of its goals.

© 2007 Thomson/South-Western. All rights reserved. 1–7


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

 Leader

 Liaison

© 2007 Thomson/South-Western. All rights reserved. 1–8


Mintzberg’s Managerial Roles (cont’d)
• Informational Roles
 The manager’s responsibility for gathering and
disseminating information to the stakeholders of the
organization:
 Monitor

 Disseminator

 Spokesperson

© 2007 Thomson/South-Western. All rights reserved. 1–9


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

 Disturbance handler
 Resource allocator
 Negotiator

© 2007 Thomson/South-Western. All rights reserved. 1–10


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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Figure 1.3 Managerial Levels

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Figure 1.4 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.
• Human Skills
 The ability to work effectively with one’s own work
group as well as others within the organization.
• Conceptual Skills
 The ability to process information about the
internal/external environment of the organization and
determine its implications.

© 2007 Thomson/South-Western. All rights reserved. 1–14


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.

© 2007 Thomson/South-Western. All rights reserved. 1–15


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.

© 2007 Thomson/South-Western. All rights reserved. 1–16


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

© 2007 Thomson/South-Western. All rights reserved. 1–17


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.

© 2007 Thomson/South-Western. All rights reserved. 1–18


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.

© 2007 Thomson/South-Western. All rights reserved. 1–19


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

© 2007 Thomson/South-Western. All rights reserved. 1–20


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.

© 2007 Thomson/South-Western. All rights reserved. 1–21


Ethics
• Ethical Behavior
 Behavior that is considered by most to
be acceptable.
• Sarbanes–Oxley Act
 Requires businesses to use certain
accounting rules that would prohibit the
many financial abuses by managers
that came to light in recent years.

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Figure 1–5 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.

© 2007 Thomson/South-Western. All rights reserved. 1–24


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

© 2007 Thomson/South-Western. All rights reserved. 1–25