The Management Process
Introduction to Management
Fundamental of Management
Chapter 01
Process
Organization Manager Management Performance
Organizations are Managers, they Management, then,
collections of are the people is the planning,
people who work responsible for organizing,
together and supervising and leading, and
coordinate their making the most controlling of
actions to achieve of an human and other
a wide variety of organization’s. resources to
goals or desired human and other achieve
future outcomes. resources to organizational
achieve its goals. goals efficiently
and effectively.
Achieving High Performance: A
Manager’s Goal
effectiveness
A measure of the
appropriateness of the
goals an organization is
effectiveness pursuing and the degree
to which the organization
achieves those goals.
efficiency
Organizationa Organizational
Efficiency performance A measure
A measure l performance of how efficiently and
of how well or how effectively a manager
productively resources uses resources to satisfy
are used to achieve a customers and achieve
goal. organizational goals.
Achieving High Performance: A
Manager’s Goal
Achieving High Performance: A
Manager’s Goal
effectiveness
A measure of the
appropriateness of the
goals an organization is
effectiveness pursuing and the degree
to which the organization
achieves those goals.
efficiency
Organizationa Organizational
Efficiency performance A measure
A measure l performance of how efficiently and
of how well or how effectively a manager
productively resources uses resources to satisfy
are used to achieve a customers and achieve
goal. organizational goals.
Why Study Management?
⁈
The dynamic and complex nature of
modern work means that managerial skills
are in demand. Organizations need
individuals like you who can understand
this complexity, respond to environmental
contingencies, and make decisions that
are ethical and effective.
Essential
Managerial
Tasks
Planning
To perform the planning task, managers identify
and select appropriate organizational goals and
courses of action; they develop strategies for how
to achieve high performance. The three steps
involved in planning are strategy A cluster
of decisions about what
(1) deciding which goals the organization will pursue goals to pursue, what
actions to take, and
(2) deciding what strategies to adopt to attain those how to use resources to
goals achieve goals.
(3) deciding how to allocate organizational resources to
Organiz
ing
• Organizing is structuring 1. Organizing people 2.Managers must
working relationships so into departments decide how best to
organizational members according to the kinds organize resources,
interact and cooperate to of job-specific tasks particularly human
achieve organizational goals. they perform lays out resources.
the lines of authority
and responsibility
between different
individuals and groups.
Organizational structure A formal system of task and reporting relationships that coordinates
and motivates organizational members so they work together to achieve organizational goals.
Leading
An organization’s vision is a short and
inspiring statement of what the
organization intends to become and the
goals it is seeking to achieve—its desired
future state.
Controlling
• In controlling, the task of managers is to
evaluate how well an organization has
achieved its goals and to take any corrective
actions needed to maintain or improve
performance.
• For example, managers monitor the
performance of individuals, departments, and
the organization as a whole to see whether
they are meeting desired performance
standards.
Levels and Skills of Managers
To perform the four managerial tasks
efficiently and effectively, organizations
group or differentiate their managers in two
main ways—by Departments and Level 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.
Level of Managers
top manager A manager who establishes
organizational
goals, decides how departments should interact,
and monitors
the performance of middle managers.
middle manager A manager who
supervises first-line managers and is
responsible for finding the best way to use
resources to achieve organizational goals.
first-line manager A manager
who is responsible for the daily
supervision of nonmanagerial
employees.
Managerial Skills
Research has shown that education and experience help managers acquire and
develop three types of skills: conceptual, human, and technical
Conceptual skills are demonstrated in the general
ability to analyze and diagnose a situation and to
distinguish between cause and effect. Top core
managers require the best conceptual skills competency
because their primary responsibilities are planning
The specific set of
and organizing.
Human skills include the general ability to departmental skills,
understand, alter, lead, and control the behavior of knowledge, and
other individuals and groups. The ability to experience that allows
communicate, to coordinate, and to motivate one organization to
people, and to mold individuals into a cohesive outperform another.
team distinguishes effective from ineffective
managers.
Technical skills are the job-specific skills required to
perform a particular type of work or occupation at
a high level. Examples include a manager’s
specific manufacturing, accounting, marketing, and
increasingly, IT skills.
Recent Changes in Management Practices
Restructuring involves simplifying, shrinking, or
downsizing an organization’s operations to lower
operating costs.
Outsourcing Contracting with another
company, usually abroad, to have it perform an
activity the organization previously performed
itself.
Empowerment is a management technique that
involves giving employees more authority and
responsibility over how they perform their work
activities.
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.
Challenges for Management in a Global Environment
Global organizations
Organizations that operate and
compete in more than one country.
Building Competitive Advantage
Competitive advantage The ability of
one organization innovation
to outperform other organizations because it The process of
produces desired creating
goods or services more efficiently and effectively new or improved
than they do. goods and
services or
developing better
ways
to produce or
provide
them.
Maintaining Ethical and Socially Responsible
Standards
Managing a Diverse Workforce
Utilizing IT and E-Commerce