MGM3101 Chapter 1: Process Management Today PDF

The Process Management Today CHAPTER 1 Learning Objectives Discuss some major changes in management practices today that have occurred 1 as a result of globalization and the use of advanced information technology (IT). Describe what management is, why management is important, what man...

The Process Management Today CHAPTER 1 Learning Objectives Discuss some major changes in management practices today that have occurred 1 as a result of globalization and the use of advanced information technology (IT). Describe what management is, why management is important, what managers 2 do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals. Distinguish among planning, organizing, leading, and controlling (the four principal 3 managerial tasks), and explain how managers’ ability to handle each one can affect organizational performance. Differentiate among three levels of management and understand the tasks and 4 responsibilities of managers at different levels in the organizational hierarchy. Distinguish among three kinds of managerial skill and explain why managers are 5 divided into different departments to perform their tasks more efficiently and effectively. Organization Managemen s Collections of t The planning, people who work organizing, leading, together and and controlling of coordinate their human and other actions to resources to achieve achieve a wide organizational goals variety of goals. effectively and efficiently. Managers: Resources: People, skills, know- The people how, experience, responsible for machinery, raw supervising the materials, computers use of an and IT, financial organization’s capital, patents, loyal resources to customers and meet its goals. employees. Achieving High Performance Organizational Performance: A measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals. Efficiency: A measure of how productively resources are used to achieve a goal. Effectiveness: A measure of the appropriateness of the goals that managers select for the organization and the degree that the organization achieves these goals. Efficiency, Effectiveness, and Performance in an Organization Access the text alternati ve for these images 6  Why Study Management? Individuals learn to understand the dynamic and complex nature of work and make decisions that are ethical and effective for an organization. Understanding management helps the manager’s employer to succeed. The economic benefits of becoming a good manager are impressive. Learning management principles can help you make good decisions in nonwork situations. 7 Four Tasks of Managemen Access the text alternative for slide images. t  Planning Planning Strategy Steps Process of identifying Cluster of decisions Decide which goals to and selecting about what goals to pursue. appropriate goals and pursue, what actions to Decide what strategies courses of action. take, and how to use to adopt to attain those resources to achieve goals. goals. Decide how to allocate organizational resources to pursue strategies that attain those goals. Organizing Organizing: Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals. 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. Leading Articulating a clear vision and energizing and enabling organizational members so they understand the part they play in achieving organizational goals.  Controlling Controlling: Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance. Outcome of the control process: Ability to measure performance accurately and regulate efficiency and effectiveness.  Performing Managerial Tasks Henry Mintzberg: Professor at McGill University. Management often chaotic, tense, emotional situations. Quick immediate reactions needed.  Managerial Roles Identified by Mintzberg Type of Role Specific Role Role Activity Examples Commit organizational resources to develop innovative goods and services; decide to Decisional Entrepreneur expand internationally to obtain new customers. Outline future organizational goals to Interpersonal Figurehead employees at company meetings. Evaluate the performance of managers in Informational Monitor different tasks and take corrective action to improve their performance. Levels of First-Line Managers: Responsible for the daily supervision of nonmanagerial Manager employees. s Middle Managers: Supervise first-line managers. Responsible for finding the best way to use resources to achieve organizational goals. Top Managers: Establish organizational goals, decide how departments should interact, and monitor the performance of middle managers. Levels of Managers Relative Amount of Time That Managers Spend on the Four Managerial Tasks Types of Managerial Skills Conceptual Skills.(Experience manager) 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.(economy skill use), (accounting) The job-specific knowledge and techniques required to perform an organizational role.  Types of Managerial Skills Human Skills Conceptual The ability to understand, alter, Technical Skills abilitySkills lead, and control the behavior of The to analyze and other individuals and groups. The job-specific knowledge and diagnose a situation and techniques required to perform an distinguish between cause and organizational role. effect. Core Competenc y Specific set of departmental skills, abilities, and experiences that allows one organization to outperform its competitors. Managers Versus Entrepreneu rs Entrepreneurs: Individuals who notice opportunities and decide how to mobilize the resources necessary to start a new business venture. Characteristics: Openness to experience. Internal locus of control. High-level of self-esteem. Need for achievement. Entrepreneursh ip 1.Is not the same as managing. 2.It is noticing an opportunity to satisfy a customer need, decide how to find and use resources to make a product or service to full those needs. 3.Intrapreneurs are employees who recognize opportunities for product creation or improvement. Challenges for Rise of Global Organizations Management in a Global Building a Competitive Advantage Environment Maintaining Ethical and Socially Responsible Standards Managing a Diverse Workforce Utilizing New Technologies 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. Innovation Process of creating new or improved goods and services or developing better ways to produce or provide them. Turnaround Managemen t The creation of a new vision for a struggling company based on a new approach to planning and organizing to make better use of a company’s resources and allow it to survive and prosper. Maintaining Ethical and Socially Responsible Standards The pressure for a manager to increase organizational performance exists at all levels. Social responsibility centers on deciding what if any obligations a company has towards the people and groups affected by its activities.  Managing a Diverse Workforce The challenge for a manager is to recognize the ethical need and legal requirement to treat human resources in a fair and equitable manner. Human resources (HRM) procedures and practices that are legal and fair must be put into place. Utilizing New Technologies Utilizing efficient and effective new technologies to link and enable managers and employees to better perform their jobs. Increased global coordination helps improve quality and increase the pace of innovation. Topics for Discussion: Challenges for Managers 0 Describe the difference between efficiency and 02 Identify an organization that you believe is high performing and 1 effectiveness, and identify real organizations that you one you believe is low performing. Give five reasons think are, or are not, why you think the performance efficient and effective. [L O levels of the two organizations 1-1] differ so much. [L O 1-2, 1-4] 0 In what ways can managers at each of the three levels of 04 In what ways do you think managers’ jobs have changed 3 management contribute to organizational efficiency and the most over the last 10 years? Why have these changes effectiveness? [L O 1-3] occurred? [L O 1-6]  han t yo u Accessibility Content: Text Alternatives for Images Efficiency, Effectiveness, and Performance in an Organization - Text Alternative The graphic is divided into four sections. Low efficiency and high effectiveness: Manager chooses the right goals to pursue, but does a poor job of using resources to achieve these goals. Result: A product that customers want, but that is too expensive for them to buy. High efficiency and high effectiveness: Manager chooses the right goals to pursue and makes good use of resources to achieve these goals. Result: A product that customers want at a quality and price that they can afford. Low efficiency and low effectiveness: Manager chooses wrong goals to pursue and makes poor use of resources. Result: A low-quality product that customers do not want. High efficiency and low effectiveness: Manager chooses inappropriate goals, but makes good use of resources to purse these goals. Result: A high-quality product that customers do not want. Return to parent-slide containing images. Four Tasks of Management - Text Alternative The graphic shows the four task of managements as a circular process. Planning. Choose appropriate organizational goals and courses of action to best achieve those goals. Organizing. Establish task and authority relationships that allow people to work together to achieve organization goals. Leading. Motivate, coordinate, and energize individuals and groups to work together to achieve organizational goals. Controlling. Establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals. Copyright McGraw-Hill Education. Permission required for reproduction or display. Return to parent-slide containing images. Relative Amount of Time That Managers Spend on the Four Managerial Tasks - Text Alternative Graphic shows the relative amount of time that managers spend on the four managerial tasks. For planning, top managers spend the most time on this followed by middle managers and then first- line managers. The same is true for organizing, although this task is more evenly distributed. For leading, first-line managers spend the most time on this task, followed by middle managers, and then top managers. Controlling is similar to organizing in its distribution. Return to parent-slide containing images. Types and Levels of Managers - Text Alternative The pyramid shows the C E O at the pinnacle, below that are top managers, middle managers, and first-line managers at the base. It is also divided by research and development, marketing and sales, manufacturing, accounting, and materials. Managers are grouped into departments on the basis of their skills. Each department contains the hierarchy of C E O, top managers, middle managers, and first-line managers. Return to parent-slide containing images.