Contemporary
Management
Second Edition
Weihrich & Koontz
California University
Gareth R. Jones
Texas University
Jennifer M. George
Texas University
Charles W. L. Hill
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
University of Washington
1-2
1
Managers and Managing
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-3
Management Key Concepts
Organizations: Employees working together and coordinating their actions to achieve specific goals. Goal: A desired future conditions that the organization seeks to achieve.
Management: The process of using organizational resources to achieve the organizations goals by...
Irwin/McGraw-Hill
Planning, Organizing, Directing, and Controlling
The McGraw-Hill Companies, Inc., 2000
1-4
Additional Key Concepts
Resources are organizational assets and include: Employees, Plant & Machinery, Raw materials, Information, skills, Financial capital.
Managers are the employees responsible for supervising the use of an organizations resources to meet its goals.
The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
1-5
Achieving High Performance
Organizations must provide goods or services as desired by its customers. Sufi Group of Industries manages his firm to provide quality food products. Physicians, nurses and health care administrators seek to provide healing from sickness.
McDonalds restaurants provide burgers, fries and shakes that customers want to buy.
The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
1-6
Organizational Performance
Measures
how efficiently and effectively managers use resources to satisfy customers and achieve goals.
Efficiency:
A measure of how well personal skills and resources are used to achieve a goal. Usually, managers must try to minimize the cost of input to attain the maximum output. Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved. Organizations are more effective when managers choose the correct goals and then achieve them.
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-7
Managerial Functions
Henri
Fayol was the first to describe the four managerial functions when he was the CEO of a large mining company in the later 1800s. Fayol noted managers at all levels, operating for long run profit or not for short run achievement, must perform each of the functions of:
Planning, organizing, Directing/Leading, and controlling.
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-8
Four Functions of Management
Figure 1.2
Planning
Choose Goals
Controlling
Monitor & measure
Organizing
Working together
Leading
Coordinate
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-9
Planning
Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization.
3 steps to good planning :
1. Which goals should be pursued? 2. How should the goal be attained? 3. How should resources be allocated?
The planning function determines how effective and efficient the organization is and determines the strategy of the organization.
The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
1-10
Organizing
In
organizing, managers create the structure of working relationships between organizational members that best allows them to work together and achieve group and organizational goals. Managers will group employees into departments according to the tasks performed.
Managers
An
will also lay out lines of authority and responsibility for members.
organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals.
The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
1-11
Leading
In
leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals. Leadership involves a manager using power, influence, vision, persuasion, and communication skills. The outcome of the leading function is a high level of motivation and commitment from employees to the organization.
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-12
Controlling
In
controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance. Managers will monitor individuals, departments, and the organization to determine if desired performance has been reached. Managers will also take action to increase performance as required. The outcome of the controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness.
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-13
Management Levels
Organizations
often have 3 levels of managers:
First-line Managers: responsible for day-to-day operation. They supervise the workers performing the activities required to produce goods or services. Middle Managers: Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals. Top Managers: Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers.
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-14
Three Levels of Management
Top Managers
Middle Managers
First-line Managers Workers
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-15
Restructuring
Top
Management have sought methods to restructure their organizations and save costs in long run. Downsizing; Retrenchment; New methods of production; and New managerial techniques.
Can
Irwin/McGraw-Hill
lead to higher efficiency. Often results in low morale and customer
The McGraw-Hill Companies, Inc., 2000
1-16
Management Trends
Empowerment:
Supervisors
expand the tasks and responsibilities of workers.
might be empowered to make some resource allocation decisions.
Self-managed
teams: give a group of employees responsibility for supervising their own actions.
The
team can monitor its members and the quality of the work performed.
The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
1-17
Managerial Roles
Described
by Mintzberg.
role is a set of specific tasks a person performs because of the position they hold.
Roles
are directed inside as well as outside the organization. There are 3 broad role categories:
1. Interpersonal 2. Informational 3. Decisional
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-18
Interpersonal Roles
Roles
managers assume to coordinate and interact with employees and provide direction to the organization.
Figurehead
role: symbolizes the organization and what it is trying to achieve. Leader role: train, counsel, mentor and encourage high employee performance. Liaison role: link and coordinate employees inside and outside the organization to help achieve goals.
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-19
Informational Roles
Associated
with the tasks needed to obtain and transmit information for management of the organization.
Monitor
role: analyzes information from both the internal and external environment. Disseminator role: manager transmits information to influence attitudes and behavior of employees. Spokesperson role: use of information to positively influence the way people in and out of the organization respond to it.
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-20
Decisional Roles
Associated
with the methods managers use to plan strategy and utilize resources to achieve goals.
Entrepreneur
role: deciding upon new projects or programs to initiate and invest. Disturbance handler role: assume responsibility for handling an unexpected event or crisis. Resource allocator role: assign resources between functions and divisions, set budgets of lower managers. Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or shareholders.
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-21
Managerial Skills
There are three skill sets that managers need to perform effectively.
1. Conceptual skills: the ability to analyze and diagnose a situation and find the cause and effect. 2. Human skills: the ability to understand, alter, lead, and control peoples behavior. 3. Technical skills: the job-specific knowledge required to perform a task. Common examples include marketing, accounting, and manufacturing.
All three skills are enhanced through formal training, reading, and practice.
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
1-22
Skill Type Needed by Manager Level
Figure 1.5
Top Managers Middle Managers Line Managers Conceptual
Irwin/McGraw-Hill
Human
Technical
The McGraw-Hill Companies, Inc., 2000
1-23
Management Challenges
Increasing number of global organizations. Building competitive advantage through superior efficiency, quality, innovation, and responsiveness. Increasing performance while remaining ethical managers. Managing an increasingly diverse work force. Using new technologies.
The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
