CHP-1Manager & Management Final1

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Managing &
Manager’s Job

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000


Definition of Management:
Its nature & purpose
Management is the process of designing & maintaining an
environment in which individuals, working together in
groups, efficiently accomplished selected aims.

A set of activities (including planning and decision making,


organizing, leading, and controlling) directed at an
organization’s resources (human, financial, physical, and
informational) with the aim of achieving organizational goals in
an efficient and effective manner.

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000


Definition of Management: Its nature &
purpose (contd.)
The basic definition needs to be expanded:
1. As managers, people carry out the managerial
functions of planning, organizing, stuffing, leading
& controlling.
2. Management applies to any kind of organization.
3. It applies to managers at all organizational level.
4. The aim of managers is the same: to create a
surplus.
5. Managing is concerned with productivity; this
implies effectiveness & efficiency.

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Achieving High Performance:
A Manager’s Goal

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Managerial Functions
➢Henri Fayol was the first to describe the four
managerial functions when he was the CEO of
a large mining company in the later 1800’s.
⚫Fayol noted managers at all levels, operating in
a for profit or not for profit organization, must
perform each of the functions of:
➢Planning

➢organizing

➢leading

➢controlling
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Four Functions of Management

Coordinate

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Planning
Planning is the process used by managers to
identify and select appropriate goals and
courses of action for an organization.
3 steps to good planning :
1. Which goals should be pursued?
2. How should the goal be attained?
3. How should resources be allocated?
◼ The planning function determines how
effective and efficient the organization is and
determines the strategy of the organization.
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Organizing
⚫Inorganizing, managers create the structure of
working relationships between organizational
members that best allows them to work together and
achieve goals.
⚫Managers will group people into departments
according to the tasks performed.
◼ Managers will also lay out lines of authority and
responsibility for members.
⚫An organizational structure is the outcome of
organizing. This structure coordinates and motivates
employees so that they work together to achieve
goals.
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Leading
⚫In leading, managers determine direction, state
a clear vision for employees to follow, and
help employees understand the role they play
in attaining goals.
⚫Leadership involves a manager using power,
influence, vision, persuasion, and
communication skills.
⚫The outcome of the leading function is a high
level of motivation and commitment from
employees to the organization.
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Controlling
⚫In controlling, managers evaluate how well the
organization is achieving its goals and takes
corrective action to improve performance.
⚫Managers will monitor individuals, departments,
and the organization to determine if desired
performance has been reached.
◼ Managers will also take action to increase
performance as required.
⚫The outcome of the controlling function is the
accurate measurement of performance and
regulation of efficiency and effectiveness.
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Management Levels
⚫Organizations often have 3 levels of managers:
First-line Managers: responsible for day-to-day
operation. They supervise the people performing
the activities required to make the good or service.
Middle Managers: Supervise first-line managers.
They are also responsible to find the best way to
use departmental resources to achieve goals.
Top Managers: Responsible for the performance of
all departments and have cross-departmental
responsibility. They establish organizational goals
and monitor middle managers.
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Three Levels of Management

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Kinds of Managers by Level and Area

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Relative Amount of Emphasis Placed
on Each Function of Management

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Managerial Roles
⚫Described by Mintzberg.
◼A role is a set of specific tasks a person performs
because of the position they hold.
⚫Rolesare directed inside as well as outside the
organization.
⚫There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional
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Interpersonal Roles
⚫Roles managers assume to coordinate and
interact with employees and provide direction
to the organization.
◼ Figurehead role: symbolizes the organization and
what it is trying to achieve.
◼ Leader role: train, counsel, mentor and encourage
high employee performance.
◼ Liaison role: link and coordinate people inside and
outside the organization to help achieve goals.

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Informational Roles
⚫Associated with the tasks needed to obtain
and transmit information for management of
the organization.
◼ Monitor role: analyzes information from both the
internal and external environment.
◼ Disseminator role: manager transmits
information to influence attitudes and behavior of
employees.
◼ Spokesperson role: use of information to
positively influence the way people in and out of
the organization respond to it.
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Decisional Roles
⚫Associated with the methods managers use to
plan strategy and utilize resources to achieve
goals.
◼ Entrepreneur role: deciding upon new projects or
programs to initiate and invest.
◼ Disturbance handler role: assume responsibility for
handling an unexpected event or crisis.
◼ Resource allocator role: assign resources between
functions and divisions, set budgets of lower
managers.
◼ Negotiator role: seeks to negotiate solutions between
other managers, unions, customers, or shareholders.
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Managerial Skills
⚫ In addition to fulfilling
roles, managers also need a
number of specific skills.
⚫ The most fundamental
management skills are:
◼ Technical
◼ Interpersonal
◼ Conceptual
◼ Diagnostic
◼ Communication
◼ Decision-making
◼ Time-management

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000


Technical Skills
⚫ Necessary to
accomplish or
understand the specific
kind of work being
done.
⚫ These skills are
especially important
for first line managers.

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000


Interpersonal Skills
⚫ The ability to communicate
with, understand, and
motivate both individuals
and groups.
⚫ Be able to get along with:
◼ Subordinates
◼ Peers
◼ Those at higher levels

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000


Conceptual Skills
⚫ A manager’s ability to
think in the abstract.
⚫ The mental capacity to:
◼ Understand organizational
goals and its environment.
◼ How the organization is
structured.
◼ Viewing the organization as
system.

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000


Diagnostic Skills Communication Skill
⚫ Skills that enable a ⚫ A manager’s abilities both
manager to visualize the to effectively convey ideas
most appropriate response and information to others
to a situation. and to effectively receive
ideas and information from
Decision Making Skill others.
⚫ A manager’s ability to
correctly recognize and
define problems and Time Management Skill
opportunities and to then ⚫ The manager’s ability to
select an appropriate prioritize work, to work
course of action to solve efficiently, and to delegate
problems and capitalize on appropriately.
opportunities.

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Sources of Management Skills

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Conceptual, Human Relations, and
Technical Skills
Conceptual Human Relation
Skills Skills
•Need to work well
•Decision making planning, together
and organizing •Resolving conflicts
• Understanding how
different business •Forming
relate partnerships

Technical Skills
•Abilities used to perform their job
•Training people to use a new system

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Skill Type Needed by Manager Level

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Management Skills – Robert.Katz

Management Skills

Technical

Human

Conceptual

Top Middle Supervisory

Management Levels

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000


How Is the Manager’s Job Changing?
Changes Facing Managers

These changes are


affecting the way
managers plan,
organize, lead, and
control.

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000

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