MGT 100 Ch 1 Intro Mgt & Managing PDF

1 MGT 100/101 PRINCIPLES OF MANAGEMENT Chapter 1 Introduction to Management and Managing  2 Course objective and learning outcomes History of management What is management? Who is a manager? Who needs a manager? Skills needed in...

1 MGT 100/101 PRINCIPLES OF MANAGEMENT Chapter 1 Introduction to Management and Managing  2 Course objective and learning outcomes History of management What is management? Who is a manager? Who needs a manager? Skills needed in order to be a good manager Types of managers Behavioral and Scientific theories of management Influence of Ethics, Culture and people Values on management Information technology in management International Management  3 Myths about management Right? or Wrong?  4 Myths about management THE MYTH: ▫ Only those who want to become managers should take management classes. THE TRUTH: ▫ Anyone who works in any organization – not just the managers – by taking a course in management, can gain insight into how the organization works and how their boss and colleagues will behave.  5 Why Study Management? We all benefit from an efficiently and effectively run business ▫ (All stakeholders benefit - bosses, managers, employees, suppliers, customers, community, government, etc.) Well-managed organizations most often prosper even in challenging economic times. Survival of the fittest. ▫ Taking care of today while being ready for the future After graduation, most students become managers or are managed by someone else. ▫ Understand how organizations operate and understand better the role you are required to play. Copyright ©2013 Pearson Education  6 History of management and Managing 17th century (1600’s) and before that time - Many small organizations, were having small production units with few employees to manage. 18th and 19th centuries (after the middle of the 1700’s): The industrial revolution came about and brought along the large organizations. Their production units became bigger with more staff and thus the need for persons who could manage those very big organizations.  7 History of Management and Management Theories Classical Theories The first persons to study and write about management were practicing managers writing of their experiences and best practices that brought the good results. (they were not trained in management because such study or science did not yet exist). Then came the social and behavioral scientist (sociology, psychology, anthropology, economist, etc.), who started observing and studying different organizations and the way they operate by using Scientific Methods to study, record, discover and write about the best practices in management.  8 History of Management and Management Theories A. The Classical Viewpoint 1. Scientific Management Theories 2. Administrative Management Theories B. The Behavioral Viewpoint 3. Behavioral Theories C. The Scientific viewpoint 4. Management Science / Quantitative Theories 5. Organizational Environment viewpoint  9 History of Management and Management Theories A. The Classical Approach to management: ▫ It is the process of coordinating group efforts towards group goals. ▫ It includes the reorganization of work environments for more productivity, the creation of rules, regulations and processes for better control and the four main functions of management - Planning, Organizing, Leading and Controlling.  10 History of Management and Management Theories B. The Behavioral Approach to management: ▫ It Concentrates on - motivation, communication, leadership and work group formation. ▫ Sciences utilized are psychology, sociology, anthropology ▫ The aim is to help managers understand human behavior in the work environment  11 History of Management and Management Theories C. The Scientific Approach to management: ▫ It uses Statistics and Mathematics as an aid to managing organizations. ▫ It focuses on Technical & Economic rather than behavioral problems ▫ Also it focuses on the whole organization and its internal and external environment in order to study the forces that could influence the well being of the organization and take measures.  12 Who Are Managers? Where Do They Work? They work in Organizations - Organization is: ▫ A deliberate arrangement of people brought together to accomplish a specific purpose ▫ (people put together to archive certain results) Common Characteristics of Organizations: ▫ Goals (what we want to achieve as an organization) ▫ People (employees, customers, suppliers, society) ▫ Structure (organized hierarchy) Copyright ©2013 Pearson Education 1-12  13 Copyright ©2013 Pearson Education 1-13  14 The Organizations Our society depends on Organizations, to function. Organizations must be managed. Managers can do that by operating them properly & profitably. Examples of Organizations: ▫ Government – administration, schools, police, army, prison, courts, congress, municipalities, etc. ▫ Semi-governmental companies – CYTA, AHK,.. ▫ Private Organizations - sole ownership, partnership, Company. Goods & Services providers - offices, factories, farms, transportation, hospitality, retailers, communication – Importers & Exporters.. ▫ Non profit organizations - Red Cross, Church, …  15 The Organizations Forces that could affect organizational performance: ▫ Competition and their practices – quantity & intensity. Business & Industry Environment - turbulence, hassle, diversity, foreseeability. ▫ Technological – Innovations, changes, complexities, cost, ease of access and use. ▫ Political – Government stability. Policies, laws, interference. Business friendliness. Tax code, etc. ▫ Economy – Local, national, international. Growth, decline, inflation, exchange rates, interests, etc. ▫ Labor – Availability, mobility, salaries, benefits, skills, education level, etc.  16 Organizations and Management In all kinds of organizations – ▫ The work must be performed by the employs ▫ The operations must be managed by the middle and line management ▫ The organization itself must be managed by the top management. In Large and Complex Organizations - ▫ Managers are more essential than in very small organizations where the owner is there to manage. ▫ There is a greater number and variety of managerial positions. The bigger the organization the more hierarchical levels exist.  17 Management Management is: ▫ The process of getting things done through the efforts of others. Management is: ▫ The process of achieving organizational goals effectively through Planning, Organizing, Leading and Controlling the organization’s resources in order to achieve organizational goals effectively and efficiently.  18 Organizational Resources & Assets Managers use the organization’s resources & assets to manage. They collect, distribute and control them. Organizational Resources or Assets include: ▫ Human Assets – The personnel/people – their number & KSA – Knowledge, Skills and Abilities ▫ Physical Assets – Spaces - buildings, land. Raw materials, parts. Equipment, machinery, tools. Computers, information technology, data. Financial capital, money. Time. Energy – water, electricity ▫ Organizational Assets – Systems, structure, positions, procedures, tasks, rules, regulations. Reputation, good will, Customers, etc.  19 The four basic Classical Managerial Functions  20 The four basic Classical Managerial Functions Planning - Choosing appropriate organizational goals and best course of action to achieve those goals. Organizing - Establishing task, procedures and authority relationships that allow people to work together to achieve organizational goals. Leading - Motivate, coordinate and energize individuals and groups to work together in order to achieve organizational goals Controlling - Establishing accurate measuring systems and evaluating how well the organization is achieving its goals and plans.  21 The four basic Classical Managerial Functions Planning Includes - Planning, Strategies, Tactics, Objectives, goals set up, deciding on the ways & methods to achieve the objectives, etc. Organizing Includes - Organizational chart, layout, structure, hierarchy, tasks, procedures, staffing, assigning duties, delegating authority, etc. Leading Includes - Motivate, lead, command, manage, coordinate actions Controlling Includes – Control systems & method. Measurements, examinations, comparisons, analyses, evaluations, corrective actions  22 Managers Job The Manager’s job include: ▫ Developing the organization’s policies, set goals, forecast future demand and create strategies, programs, budget and tactics to achieve them. ▫ Making decisions, allocate resources, implement the plans. ▫ Coordinating the efforts of others, give priority to goals and motivate people. ▫ Measuring the outcomes of the employees efforts, the equipment operation, the raw materials and finished products quality & quantities, the achievement of the goals and the plans.  23 Managers Job The Manager’s job include: ▫ All managers must have subordinates who report to them and give direction to. ▫ Subordinates must be assigned to a job or a position. ▫ The Employee/ Subordinate to achieve the set goals:  Must be given the resources – spaces, raw material, tools, equipment, energy, information, training, etc.  Also a specialized process needs to be created for each job / work – assign responsibilities, expected outcomes, tasks, procedures - SOP – standard operating procedures.  24 Performance Criteria Performance Criteria – employ & organization ▫ Effectiveness:  Setting the right goals and achieving them to the fullest.  It's about getting to the end line. ▫ Efficiency:  Achieving targets in the best possible way or method  It is doing the work fast at low cost  25 Managers & Managerial Specialization (a) Vertical Specialization (the Pyramid organization) ▫ Board of Directors – CEO – Chief Executive Officer: Responsible for developing good working relationships amongst the top management. Develop Long Term Strategies. Hire and manage top mangers ▫ Top Management: They Set Policies, plan and organize. Manage organizations, divisions or departments. Hire and supervise Middle managers ▫ Middle Management: Responsible for finding the best way to achieve organizational goals. Hire and supervise Line managers ▫ Line Managers - Supervisors: Responsible for the daily supervision of non-managerial employees.  26 1-26 Copyright ©2013 Pearson Education  27 Managers & Managerial Specialization (b) Horizontal Specialization ▫ The Employees, Managers and Departments may have different specialization or work in different units however they are allowed to cooperate horizontally without the need to go through the hierarchy. Hierarchy also exist and is followed within each unit. ▫ Methods are established to help in measuring each employ’s, manager’s and department’s performance.  28 Types of Managers General Manager: ▫ Responsible for a division, zone, region, or the whole organization Functional Manager: ▫ Responsible for a specific function, or department e.g. Accounting department. Project Manager: ▫ Responsible for the supervision, coordination and completion of a specific project. Could be any manager (middle or line) that takes the responsibility to complete a specific project.  29 What Managers Should Know to be able to manage effectively? The Organization and its Business - policies, plans, goals, history, way of thinking. The Industry our business is in - trends and developments. Competition, standards, methods used. The Technology used - existing, trends and developments. Know how to use it. Alternatives The Available Suppliers - existing and potential. Products availability, quality, quantities, prices. The Products produced/offered – by us and the competition - quality, quantities, prices.  30 Necessary Managerial Skills Technical Skills: ▫ Ability to manage & lead. ▫ Ability to use the machines, tools, procedures and techniques their employees will have to use. Human Skills: ▫ Ability to understand, motivate and get along with people (superiors, subordinates, customers, suppliers, government, unions, etc.). ▫ Be able to quickly solve problems. Conceptual Skills: ▫ Ability to use information, logic and common sense in order to see the big picture, understand complex problems and find correct and timely solutions.  31 Other Managerial Responsibilities Employee and Customer Safety - create safe working conditions. Anticipate events and take preventive measures. Environmental protection - Take ecology, circular economy and sustainability into account in deciding. Company Profitability and Interests – Professionally represent the owner and the business Ethical and Legal behavior – Respects the law and all stakeholders involved - Preserves the good image of the organization in the society. Respect – All Religions, Society values, the different Cultures, and the employees rights and well being.  32 Opportunities in Management Opportunities in specialized fields such as: ▫ Industrial / Factory or Agriculture Management ▫ Transportation or Logistics Management ▫ Hospitality or Travel Management ▫ Office or Services or Imports Management ▫ Human Resources or Marketing Management ▫ Sports or Entertainment Management ▫ Owner or partner in a business – etc. MBA - Masters in Business Administration - People with different backgrounds or majors, take the masters in MBA in order to have a better chances on advancing to a managerial position.  33 Relative amount of Time Spend by managers on the four Managerial Functions Planning Organizing Leading Controlling Top Managers Middle Managers Line Managers  34 Skills (Conceptual, human and technical) Needed by the three levels of management Skills: Conceptual (mind) Human Technical Top Managers Middle Managers First Line Managers  35 Minzberg’s - Additional Findings about Managers Managers work at an unrelenting pace Managers work is characterized by: 1. Brevity / shortness (brief and quick) –  Not more than 9 to 10 minutes for each activity. 2. Variety (diversity, variability) –  Meetings with personnel, customer, suppliers, unions & government bodies, the society. Using telephone, mail, in person, teleconferencing, etc. 3. Fragmentation –  Continuously being interrupted by different events  36 Minzberg’s – Roles - Managers Play The expected behavior depending on the managerial position – Tasks performed and responsibilities INTERPERSONAL INFORMATIONAL DECISIONAL FIGUREHEAD MONITOR ENTREPRENEUR LEADER DISEMINATOR RESOURCE ALLOCATOR LIASON SPOKESMAN DISTERBANCE HANDLER MOTIVATOR  37 Utilizing Information Technology Information technology - IT, Data Banks, Software, computers - MIS, The Web, AI -Artificial Intelligence, Robotics, Automated Machines, etc. IT could be used in most types of organizations. Managers need to know of and understand modern technology so they best utilize it in their organization. it is used as: storage space, control tool, programming tool, part of machinery, entertainment units, etc. It helps in internal and external communication It helps in creating a more efficient and effective environment by having easy to use software & tools.  38 Factors that are Copyright ©2013 Pearson Education Reshaping & Redefining management Welcome to the New World of administration! Changes in the Workforce – Composition, numbers, nationalities, knowledge, competences. Teleworking /remote work and Temporary work. Changes in the Workplace Environment - Management methods. Organizational charts - redesign, reengineering, downsizing. Working conditions - reduction of number & increase of responsibilities, changing technology, etc. Changes in the world - global economic and political uncertainties. Customers needs, innovations, social media use, and sustainability concerns.  39 Reshaping todays organizations Restructuring the organization ▫ It happens when changes happen in the business– structure, legal form, ownership status, operating – ▫ In an effort to make it more efficient, profitable, modern & better organized or more functional. Redesigning the organizational environment: ▫ Changing the tasks, procedures, positions, units, etc. ▫ One way to design anew the organization and make it modern is by including the IT, e-commerce, equipment automation, better communication systems, changing the responsibilities, eliminating positions, eliminating tasks, simplifying the work, etc. to make it more productive.  40 Reshaping todays organizations Downsizing an organization ▫ Is done by eliminating positions in all the organizational levels. ▫ From the top, middle & line management and mostly from the non-managerial employees. Reengineering the organization - ▫ That is done by replacing humans with machines, tools, robots, computers or any other non human equipment. Job Enlargement - ▫ Expanding employees tasks and responsibilities to make the work more interesting.  41 Reshaping todays organizations Empowerment – ▫ Allowing the employees to make decisions on some reoccurring problems without asking for permission. Software programs can assist employees in making decisions. Self Managed Teams – ▫ Are groups of people that are given the goals and the results expected and they are allowed to decide on how to achieve them. They are responsible to organize their own activities and monitor the results of their work. One way for management to monitor their work is for the group to input the results into a computer software program.  42 International Management International management – ▫ It is part of our lives these days. ▫ There is high mobility of persons, products, raw materials, information, technology, capital, etc. ▫ Business are contacting their business in an international scale (in more than one country) or globally (in all continents) - Globalization. ▫ Product could have raw materials, or have parts produced or assembled in several countries. ▫ Organizations operate businesses in many countries (multinationals) and may be financed by persons from several countries (partners or shareholders).  43 Thanks for your Attention