Essentials_of_Contemporary_Management_9t.pptx

The Management Process Today Chapter One Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO1-1 Describe what management is, why management is important, what managers do, a...

The Management Process Today Chapter One Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO1-1 Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals LO1-2 Distinguish among planning, organizing, leading, and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one can affect organizational performance LO1-3 Differentiate among three levels of management, and understand the tasks 1-2 Learning Objectives LO1-4 Distinguish between three kinds of managerial skill, and explain why managers are divided into different departments LO1-5 Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced information technology (IT) LO1-6 Discuss the principal challenges managers face in today’s increasingly competitive global environment 1-3 What is Management? Management  The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently 1-4 What is Management? Organizations  Collections of people who work together and coordinate their actions to achieve a wide variety of goals 1-5 What is Management? Managers  The people responsible for supervising the use of an organization’s resources to meet its goals  Resources include people, skills, knowhow, machinery, raw materials, computers and IT, and financial capital 1-6 Achieving High Performance Organizational Performance  A measure of how efficiently and effectively managers use organizational resources to satisfy customers and achieve organizational goals 1-7 Efficiency, Effectiveness, and Performance in an Organization Figure 1.1 1-8 Organizational Performance Efficiency  A measure of how well or productively resources are used to achieve a goal Effectiveness  A measure of the appropriateness of the goals an organization is pursuing and the degree to which the organization achieves those goals. 1-9 Why study management? The more effective and efficient use an organization can make of resources, the greater the relative well-being of people Almost all of us encounter managers because most people have jobs and bosses Understanding management is one important path toward obtaining a satisfying career 1-10 Four Tasks of Management Figure 1.2 1-11 Planning Planning  Process of identifying and selecting appropriate goals and courses of action 1-12 Steps in the Planning Process 1. Deciding which goals to pursue 2. Deciding what strategies to adopt 3. to attain those goals Deciding how to allocate organizational resources 1-13 Planning Strategy  cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals 1-14 Organizing Organizing  Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals 1-15 Organizing • Organizational Structure – A formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals 1-16 Leading Leading  Articulating a clear vision and energizing and enabling organizational members so they understand the part they play in attaining organizational goals 1-17 Controlling Controlling  Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance The outcome of the control process is the ability to measure performance accurately and regulate efficiency and effectiveness 1-18 Question? What is a group of people who work together and possess similar skills or use the same knowledge, tools, or techniques? A. Organization B. Department C. Team D. Presentation Group 1-19 Levels and Skills of Managers Department  A group of people who work together and possess similar skills or use the same knowledge, tools, or techniques to perform their jobs 1-20 Levels of Management First line managers  Responsible for the daily supervision of non-managerial employees Middle managers  Supervise first-line managers and are responsible for finding the best way to use resources to achieve organizational goals 1-21 Levels of Management Top managers  establish organizational goals, decide how departments should interact, and monitor the performance of middle managers 1-22 Levels of Managers Figure 1.3 1-23 Relative Amount of Time That Managers Spend on the Four Managerial Tasks Figure 1.4 1-24 Levels of Managers Top-management team  A group composed of the CEO, the COO, and the vice presidents of the most important departments of a company. 1-25 Question? Which management skill is the ability to understand, alter, lead, and control the behavior of other individuals and groups? A. Conceptual B. Human C. Technical D. Technological 1-26 Managerial Skills Conceptual skills  The ability to analyze and diagnose a situation and distinguish between cause and effect. Human skills  The ability to understand, alter, lead, and control the behavior of other individuals and groups. Technical skills  The job-specific knowledge and techniques required to perform an organizational role. 1-27 Question? What is the specific set of abilities that allows one manager to perform at a higher level than another manager? A. Skill-sets B. SKAs C. Competencies D. Skill traits 1-28 Technical Skills Core competency  Specific set of skills, abilities, and experiences that allows one organization to outperform its competitors 1-29 Types and Levels of Managers Figure 1.5 1-30 Recent Changes in Management Practices Restructuring  downsizing an organization by eliminating the jobs of large numbers of top, middle, or first-line managers and non-managerial employees 1-31 Recent Changes in Management Practices • Outsourcing – contracting with another company, usually abroad, to have it perform an activity the organization previously performed itself • Increases efficiency because it lowers operating costs, freeing up money and resources that can be used in more effective ways 1-32 Empowerment and Self-Managed Teams Empowerment  Expansion of employees’ knowledge, tasks, and decision-making responsibilities 1-33 Empowerment and Self-Managed Teams • Self-managed team – A group of employees who assume responsibility for organizing, controlling, and supervising their own activities and monitoring the quality of the goods and services they provide. 1-34 Challenges for Management in a Global Environment Rise of Global Organizations. Building a Competitive Advantage Maintaining Ethical and Socially Responsible Standards Managing a Diverse Workforce Utilizing IT and E-Commerce 1-35 Challenges for Management in a Global Environment Global organizations  organizations that operate and compete in more than one country 1-36 Building Competitive Advantage • Competitive advantage – Ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than they do 1-37 Building Blocks of Competitive Advantage Figure 1.6 1-38 Building a Competitive Advantage Innovation  process of creating new or improved goods and services or developing better ways to produce or provide them 1-39 Video: Fed Ex How do the managers at the FedEx Super-hub use planning, organizing, leading and controlling to sort one million nightly boxes and letters? 1-40