Contemporary Management Chapter 1 - PDF

Because learning changes everything. ® Chapter 1 Managers and Managing © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of  Learning Objectives...

Because learning changes everything. ® Chapter 1 Managers and Managing © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of  Learning Objectives 1 1. Describe what management is, why management is important, what managers do, and how managers use organizational resources efficiently and effectively to achieve organizational goals. 2. Distinguish among planning, organizing, leading, and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one affects organizational performance. 3. Differentiate among three levels of management, and understand the tasks and responsibilities of managers at different levels in the organizational hierarchy. © McGraw Hill 2  Learning Objectives 2 4. Distinguish among three kinds of managerial skill, and explain why managers are divided into different departments to perform their tasks more efficiently and effectively. 5. Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced technologies. 6. Discuss the principal challenges managers face in today’s increasingly competitive global environment. © McGraw Hill 3  What Is Management? 1 Organizations Organizations are collections of people who work together and coordinate their actions to achieve a wide variety of goals or desired future outcomes. All managers work in organizations. Managers Managers are the people responsible for supervising the use of an organization’s resources to meet its goals. © McGraw Hill 4  What Is Management? 2 Management Management includes the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently. What difference can a manager make? Zander Lurie, SurveyMonkey CEO. © McGraw Hill 5  What Is Management? 3 Resources. Include assets such as: 1. People and their skills, know-how, and experience. 2. Machinery. 3. Raw materials. 4. Computers and information technology. 5. Patents, financial capital, and loyal customers and employees. © McGraw Hill 6  Achieving High Performance: A Manager’s Goal 1 Organizational performance: A measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals. At SurveyMonkey, Zander Lurie’s goal is to continue with cutting-edge technology (A I), to promote innovation, and to grow the global market. © McGraw Hill 7  Achieving High Performance: A Manager’s Goal 2 Efficiency: A measure of how well or how productively resources are used to achieve a goal. Wendy’s fat fryers use less oil and are quicker. Effectiveness: A measure of the appropriateness of the goals an organization is pursuing and the degree to which the organization achieves those goals. McDonald’s all-day breakfast success. © McGraw Hill 8  Figure 1.1 Efficiency, Effectiveness, and Performance in an Organization High-performing organizations are efficient and effective. Access the text alternative for slide images. © McGraw Hill 9  Why Study Management? 1 1. Individuals generally learn through personal experience or the experiences of others. By studying management in school, you are exposing yourself to the lessons others have learned. © McGraw Hill 10  Why Study Management? 2 2. The economic benefits of becoming a good manager are also impressive. In the United States, general managers earn a median wage of $100,930 with a projected growth rate in job openings of 7% to 10% between now and 2028. 3. Learning management principles can help you make good decisions in nonwork contexts. © McGraw Hill 11  Figure 1.2 Four Tasks of Management Access the text alternative for slide images. © McGraw Hill 12  Steps in the Planning Process 1. Decide which goals the organization will pursue. 2. Decide what strategies to adopt to attain those goals. 3. Decide how to allocate organizational resources. Managers identify and select appropriate organizational goals and develop strategies for how to achieve high performance. © McGraw Hill 13  Organizing 1 Organizing: Structuring working relationships so organizational members interact and cooperate to achieve organizational goals. Managers deciding how best to organize resources, particularly human resources. © McGraw Hill 14  Organizing 2 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. CEO Laurie of SurveyMonkey organizes in coordination with employee opinions. © McGraw Hill 15  Leading Articulating a clear vision and energizing and enabling organizational members so they understand the part they play in achieving organizational goals. Involves managers using their power, personality, influence, persuasion, and communication skills to coordinate people and groups. © McGraw Hill 16  Controlling 1 Controlling: Evaluating how well Managers monitor an organization is performance of achieving its goals individuals, and taking action to departments, and the maintain or improve organization as a whole performance. to determine if they are meeting performance standards. © McGraw Hill 17  Controlling 2 The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness. Managers must decide which goals to measure. © McGraw Hill 18  Example: Match Group Mandy Ginsberg is the CEO of Match Group (Match, OKCupid, Hinge, Tinder). Her understanding of advanced technology and employment of data scientists has improved the dating sites. She is open to international expansion. She employs locals who bring their cultural knowledge to the table. The profits of Match Group reflect Ginsberg’s success. © McGraw Hill 19  Managerial Roles Identified: Decisional Type of Role Specific Role Examples of Role Activities Decisional Entrepreneur Commit organizational resources to develop innovative goods and services; decide to expand internationally to obtain new customers for the organization’s products. Decisional Disturbance handler Move quickly to take corrective action to deal with unexpected problems facing the organization from the external environment, such as a crisis like an oil spill, or from the internal environment, such as producing faulty goods or services. Decisional Resource allocator Allocate organizational resources among different tasks and departments of the organization; set budgets and salaries of middle and first-level managers. Decisional Negotiator Work with suppliers, distributors, and labor unions to reach agreements about the quality and price of input, technical, and human resources; work with other organizations to establish agreements to pool resources to work on joint projects. Table 1.1 Managerial Roles Identified by Mintzberg © McGraw Hill 20  Managerial Roles Identified: Interpersonal Type of Role Specific Role Examples of Role Activities Interpersonal Figurehead Outline future organizational goals to employees at company meetings; open a new corporate headquarters building; state the organization’s ethical guidelines and the principles of behavior employees are to follow in their dealings with customers and suppliers. Interpersonal Leader Provide an example for employees to follow; give direct commands and orders to subordinate; make decisions concerning the use of human and technical resources; mobilize employee support for specific organizational goals. Interpersonal Liaison Coordinate the work of managers in different departments; establish alliances between different organizations to share resources to produce new goods and services; reach agreements about the quality and price of input, technical, and human resources; work with other organizations to establish agreements to pool resources to work on joint projects. Table 1.1 Managerial Roles Identified by Mintzberg © McGraw Hill 21  Managerial Roles Identified: Informational Type of Role Specific Role Examples of Role Activities Informational Monitor Evaluate the performance of managers in different tasks and take corrective action to improve their performance; watch for changes occurring in the external and internal environments that may affect the organization in the future. Informational Disseminator Inform employees about changes taking place in the external and internal environments that will affect them and the organization; communicate to employees the organization’s vision and purpose. Informational Spokesperson Launch a national advertising campaign to promote new goods and services; give a speech to inform the local community about the organization’s future intentions. Table 1.1 Managerial Roles Identified by Mintzberg © McGraw Hill 22  Levels and Skills of Managers 1 Department: A group of managers and employees who work together and possess similar skills or use the same knowledge, tools, or techniques. Example: the manufacturing, accounting, engineering, or marketing department. © McGraw Hill 23  Figure 1.3 Levels of Managers © McGraw Hill 24  Levels of Management 1 First-line managers (often called supervisors): Responsible for the daily supervision of the nonmanagerial employees. Paint foreman overseeing a crew of painters at a university. Middle managers: Supervises first-line managers. Responsible for finding the best way to use resources to achieve organizational goals. High school principal or a marketing manager. © McGraw Hill 25  Levels of Management 2 Top managers: Responsible for the performance of all departments. Establish organizational goals. Decide how different departments should interact. Monitor how well middle managers in each department use resources to achieve goals. President of a university. © McGraw Hill 26  Levels and Skills of Managers 2 Figure 1.4 Relative Amount of Time Managers Spend on the Four Managerial Tasks. Access the text alternative for slide images. © McGraw Hill 27  Types of 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: Job-specific knowledge and techniques required to perform an organizational role. © McGraw Hill 28  Figure 1.5: Types and Levels of Managers Access the text alternative for slide images. © McGraw Hill 29  Core Competency Specific set of departmental skills, knowledge and experience that allows one organization to outperform another. Skills for a competitive advantage: Dell’s materials management produced PCs at lower cost than competitors. © McGraw Hill 30  Recent Changes in Management Practices Restructuring: Downsizing an organization by eliminating the jobs of large numbers of top, middle, and first-line managers and nonmanagerial employees. Outsourcing: Contracting with another company, usually abroad, to perform a work activity the company previously performed itself. © McGraw Hill 31  Empowerment and Self-Managed Teams Empowerment: Empowerment involves giving employees more authority and responsibility over how they perform their work activities. Example: Valve Corporation has no managers, no hierarchy or top-down control. Employees pick their own projects. Self-managed teams: Groups of employees who assume collective responsibility for organizing, supervising, and controlling their own work activities. © McGraw Hill 32  Challenges for Management in a Global Environment Build a competitive advantage. Maintain ethical and socially responsible standards. Manage a diverse workforce. Utilize new technologies. Practice global crisis management. © McGraw Hill 33  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 competitors. Innovation: The process of creating new or improved goods and services or developing better ways to produce or provide them. © McGraw Hill 34  Building Blocks of Competitive Advantage Competitive Advantage Efficiency Innovation and Flexibility Responsiveness to customers Quality © McGraw Hill 35  Turnaround Management Creation of a new vision for a struggling company using a new approach to planning and organizing to make better use of a company’s resources and allow it to survive and eventually prosper. CEO Niccol has turned Chipotle around after food scares in 2015 and 2017. © McGraw Hill 36  Maintaining Ethical and Socially Responsible Standards Managers are under considerable pressure to make the best use of resources. Too much pressure may induce managers to behave unethically and even illegally. Nudges as ethical behavior tools. © McGraw Hill 37  Managing a Diverse Workforce To create a highly trained and motivated workforce, managers must establish human resource management (HRM) procedures that are legal and fair and do not discriminate against organizational members. Accenture earned top spot (out of 100 companies) for second year on Refinitiv’s Diversity and Inclusion Index. © McGraw Hill 38  Utilizing New Technologies Efficient and effective technologies that link and enable managers and employees to better perform their jobs, regardless of role. UPS uses ORION. A GPS system that optimizes drivers’ routes. © McGraw Hill 39  Practicing Global Crisis Management 1 1. Create teams to facilitate rapid decision- making and communication. 2. Establish the organizational chain of command and reporting relationships necessary to mobilize a fast response. 3. Recruit and select the right people to lead and work in such teams. 4. Develop bargaining and negotiating strategies to manage the conflicts that arise. © McGraw Hill 40  Practicing Global Crisis Management 2 Natural causes: Human causes: Crises that arise Human-created crises result because of natural from factors such as causes, including industrial pollution, poor hurricanes, attention to worker and earthquakes, famines, workplace safety, global and diseases. warming, and the destruction of the natural habitat or environment, and geopolitical tensions and terrorism. © McGraw Hill 41  End of Main Content Because learning changes everything. ® www.mheducation.com © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.