Principles of Management

• Chapter 1 is titled "Managing and the Manager's Job"
• Slide content created by Charlie Cook, The University of West Alabama
• Copyright © Houghton Mifflin Company. All rights reserved.

Learning Objectives

• Describe management, define managers, and characterize their importance.
• Identify and explain the four basic management functions in organizations.
• Describe the types of managers at different levels and in different areas of an organization.
• Identify managerial roles and the skills needed to be successful.
• Discuss the science and art of management, how people become managers, and the scope of management.
• Characterize the emerging workplace in organizations.

Organizational Resources

• Human resources are managerial talent and labor.
• Financial resources include capital investments for ongoing and long-term operations.
• Physical assets are raw materials, office and production facilities, and equipment.
• Information consists of usable data and information linkages.
• Organizations use combinations of human, financial, physical, and information resources to achieve goals
• These resources mainly obtain from the organization's environment

Table 1.1: Resource Examples

• Royal Dutch/Shell Group uses drilling platform workers (human), profits/stockholder investments (financial), refineries and office buildings (physical), and sales forecasts (information).
• Iowa State University uses faculty and administrative staff (human), alumni contributions and government grants (financial), computers and campus facilities (physical), and research reports and government publications (information).
• New York City uses police officers and municipal employees (human), tax revenue and government grants (financial), sanitation equipment and municipal buildings (physical), and economic forecasts and crime statistics (information).
• Susan's Corner Grocery Store uses grocery clerks and bookkeepers (human), profits and owner investment (financial), building and display shelving (physical), and price lists/newspaper ads (information).

What is Management?

• Management is a set of activities, including planning/decision-making, organizing, leading, and controlling
• It's directed at an organization's resources like human, financial, physical and information
• Management aims to achieve organizational goals efficiently and effectively.

Figure 1.1: Management in Organizations

• Inputs from the environment, including human, financial, physical, and information resources, feed into the management process
• Planning and decision making, organizing, leading, and controlling are the key activities
• Goals effectively and efficiently attained are outcomes

The Purpose of Effective Management

• Efficiently: This entails using resources wisely and in a cost-effective manner.
• Effectively: This means making the right decisions and successfully implementing them.

What Is a Manager

• Managers' primary duty is to carry out the process of management
• They plan, organize, lead, and control human, financial, physical, and information resources.

Manager's Key Job Responsibilities

• Planning: Develop long-range plans for effective operation.
• Organizing: Essential when a plan requires multiple employees.
• Controlling: Establish methods to assess employee performance and determine necessary actions.

The Management Process

• Planning and Decision Making: Requires determining courses of action.
• Organizing: Requires coordinating activities and resources.
• Leading: Requires motivating and managing people.
• Controlling: Requires monitoring and evaluating activities .

Figure 1.2: The Management Process

• Management involves four basic activities: planning/decision making, organizing, leading, and controlling.
• While this sequence has a logic, managers often engage in multiple activities simultaneously, moving unpredictably between them.
• Planning and Decision Making involves establishing goals and deciding how best to achieve them.
• Organizing involves determining how best to group activities and allocate resources.
• Leading involves motivating organizational members to work in the best interests of the organization.
• Controlling means monitoring and correcting activities to facilitate goal attainment.

Kinds of Mangers

• Top Managers: Manage the overall organization, creating goals, strategies, and policies.
• Middle Managers: Implement top manager plans and supervise lower-level managers.
• First-Line Managers: Directly supervise and coordinate operating employees.
• Marketing Managers work in areas related to getting consumers to buy services and products. This can include new product development, promotion and distribution
• Financial Managers deal primarily with financial resources like accounting, cash management and invesments
• Operations Managers deal primarily with systems that create services and products such as production control, inventory, quality control, plant layout and site selection
• Human Resources Managers deal primarily with human resource activities
• Administrative Managers are generalists who are not associated with specialized management specialties
• Other kinds of mangers may hold specialized positions such as public relations roles when the need arises

Managerial Roles (Mintzberg)

• Interpersonal Roles: Figurehead, leader, and liaison, all involving interactions with people.
• Informational Roles: Monitor, disseminator, and spokesperson, centered on processing information.
• Decisional Roles: Entrepreneur, disturbance handler, resource allocator, and negotiator, focusing on decision-making.

Table 1.2: Ten Basic Managerial Roles

• Interpersonal:
• Figurehead: Attending ribbon-cutting ceremony for new plant.
• Leader: Encouraging employees to improve productivity.
• Liaison: Coordinating activities of two project groups.
• Informational:
• Monitor: Scanning industry reports to stay abreast of developments.
• Disseminator: Sending memos outlining new organizational initiatives. -Spokesperson: Making a speech to discuss growth plans.
• Decisional:
• Entrepreneur: Developing new ideas for innovation.
• Disturbance Handler: Resolving conflict between two subordinates.
• Resource Allocator: Reviewing and revising budget requests.
• Negotiator: Reaching agreement with a key supplier or labor union.
• Henry Mintzberg suggests that managers play ten basic managerial roles

Managerial Skills

• Communication: Effectively conveying and receiving ideas and information.
• Decision-Making: Recognizing and defining problems/opportunities, then selecting an appropriate course of action.
• Time-Management: Prioritizing work, working efficiently, and delegating appropriately.

Management

• The Science of Management: Assumes problems can be approached rationally and systematically, using technical, diagnostic, and decision-making skills.
• Art of Management: Making decisions and solving problems using intuition, experience, instinct, and personal insights and the use of communication, interpersonal, and time-management skills.

The Nature of Management Skills Development

• Management skills come from education and experience
• Skills include sound educational and continued life-long experiences
• They must be mixed with Initial job experiences and continued experiences through a variety of job assignments
• This leads to the successful acquisition and utilization of basic management skills

Managing in Organizations

• For-Profit Organizations: Large, industrial firms, commercial banks, retailers and transportation plus small/start ups and international management.
• Not-for-Profit Organizations: Governmental, educational, healthcare and nontraditional settings like community groups.

Key Terms

• Organization: A structured group of people working together to achieve common goals.
• Management: The process of planning, organizing, leading, and controlling resources to achieve organizational goals.
• Effective: Achieving desired outcomes or results.
• Efficient: Utilizing resources in a way that minimizes waste and maximizes productivity.
• Manager: An individual responsible for planning, organizing, leading, and controlling resources.
• Decision Making: Selecting a course of action from multiple alternatives.
• Organizing: Arranging resources and activities to achieve organizational goals.
• Leading: Influencing and motivating others to work towards organizational goals.
• Controlling: Monitoring performance and taking corrective action when needed.
• Levels of Management: Hierarchical arrangement of managers within an organization (e.g., top, middle, first-line).
• Areas of Management: Specialized functions within an organization (e.g., marketing, finance, operations).
• Interpersonal, Informational and Decisional Roles are ten basic managerial roles
• Technical Skills: Skills to perform specific tasks.
• Interpersonal Skills: Ability to work well with others.
• Conceptual Skills: Ability to think strategically and understand complex relationships.
• Diagnostic Skills: Ability to analyze and solve problems.
• Communication Skills: Proficiency in conveying information effectively.
• Decision-Making Skills: Competence in making sound judgments.
• Time-Management Skills: Ability to prioritize and manage time effectively.

Test your knowledge of key management principles! This quiz covers various management functions, roles, and skills. Understand the responsibilities of different managers and the overall role of management in an organization.