Download - Bab 1-Introduction to Management
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Chapter 1
Introduction to
Management and Organizations
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Learning OutlineAfter you read this chapter you should know the following
learning objectives:
#1: What Makes Someone A Manager?
#2: What Is Management and What DoManagers Do?
#3: What Characteristics Define AnOrganization?
#4: What Are The Challenges To
Managing? #5: Does Studying Management Make A
Difference?
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Defining the Managers Terrain
Managers:
Coordinate work activities to achieve organizationalgoals.
Their ability to act is affected by both the internal culture
of the organization and the constraints of the external
environment including the global environment.
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Defining the Managers Terrain
Managers:
Also deal with complicated ethical and social
responsibility issues as they plan, organize,
lead and control.
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Who Are Managers?
Manager
Someone who works with and through other
people by coordinating their work activities inorder to accomplish organizational goals
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Types of Managers
First-line Managers Managers at the lowest level manage the work of non-
managerial employees directly or indirectly involved withthe production or creation of the organizations products.
Middle Managers Managers between the first-line level and the top level of
the organization who manage the work of first-linemanagers
Top Managers Managers at or near the top level are responsible for
making organization-wide decisions and establishingplans and goals affecting the entire organization
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Exhibit 1.1 Managerial Levels
Top
ManagersMiddle Managers
First-Line Managers
Nonmanagerial Employees
Top
ManagersMiddle Managers
First-Line Managers
Nonmanagerial Employees
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Efficiency and Effectiveness
Managerial Concerns
Efficiency
Doing things right
Getting the most output from the least amount of
inputs
Effectiveness
Doing the right things
Completing activities so that organizational
goals are achieved
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Exhibit 1.2 Efficiency and
Effectiveness in Management
GoalAttainment
Effectiveness (Ends)
ResourceUsage
Management Strives for:Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)
Efficiency (Means)
Low Waste High Attainment
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Management Functions
According to the functions approach, managers
perform certain activities or duties as they
efficiently and effectively coordinate the work
of others.
Henry Fayol first proposed that all managers
perform five functions: planning, organizing,
commanding, coordinating and controlling.
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Exhibit 1.3 Management Functions
Planning
Defining goals,
establishingstrategy, anddevelopingsub-plans tocoordinateactivities
Lead to
Organizing
Determining
what needsto be done,how it willbe done, andwho is to do it
Leading
Directing and
motivating allinvolved partiesand resolvingconflicts
Controlling
Monitoring
activitiesto ensurethat they areaccomplishedas planned
Achieving theorganizations
statedpurpose
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Management Roles
Henry Mintzbergs Management Roles Approach
(Exhibit 1.4)
Interpersonal roles
Figurehead, leader, liaison
Informational roles
Monitor, disseminator, spokesperson
Decisional roles
Entrepreneur, disturbance handler, resource allocator,
negotiator
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Management Roles
Robert Katz Management Skills Approach
Technical skills
Knowledge and proficiency in a specific field
Human skills
The ability to work well with other people
Conceptual skills
The ability to think and conceptualize about abstract and
complex situations concerning the organization
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Exhibit 1.5 Skills Needed at Different
Management Levels
TopManagers
MiddleManagers
Lower-level
Managers
Importance
Conceptual
SkillsHumanSkills
TechnicalSkills
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What Is an Organization?
An Organization Defined
A deliberate arrangement of people who act
together to accomplish some specific purpose
Common Characteristics of Organizations
Distinct purpose
Composed of people
Deliberate structure
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Exhibit 1.6 Characteristics of
Organizations
DeliberateStructure
DistinctPurpose
People
DeliberateStructure
DistinctPurpose
People
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Exhibit 1.7 The Changing
OrganizationTraditional Stable
Inflexible
Job-focused
Work is defined by job positions Individual-oriented
Permanent jobs
Command-oriented
Managers always make decisions
Rule-oriented
Relatively homogeneous workforce Workdays defined as 9 to 5
Hierarchical relationships
Work at organizational facilityduring specific hours
New Organization Dynamic
Flexible
Skills-focused
Work is defined in terms of tasks to bedone
Team-oriented
Temporary jobs
Involvement-oriented
Employees participate in decisionmaking
Customer-oriented
Diverse workforce
Workdays have no time boundaries
Lateral and networked relationships
Work anywhere, anytime
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The Types of Organizations
Managers and employees work in a variety of sizes of
organizations
Large organizations represent only 2% of the organizations in
Canada
Small business represent 98% of all Canadian companies Managers and employees work in a variety of organizations, and
the type of organization has an impact on what managers can do
Publicly held organizations
Privately held organizations
Public sector organizations
Crown Corporations
Subsidiaries of foreign organizations (e.g., Sears, Safeway,
General Motors, and Ford Motor Company)
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Challenges to Managing
Ethics
Rules and principles that define right and wrong
behaviour Increased emphasis on ethics education seen in
university and college curriculums
Increased creation and use of codes of ethics by
businesses currently
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Challenges to Managing
Workforce Diversity
The mix of people in organizations in terms of
gender, race, ethnicity, disability, sexual
orientation, age, demographic characteristicssuch as education and socio-economic status
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Challenges to Managing
Globalization
Management in international organizations
Political and cultural challenges of operating in aglobal market
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Challenges to Managing
Managing in an E-Business World
The work performed by an organization using
electronic linkages to its key constituencies E-commerce: the sales and marketing component
of an e-business
Categories ofE-businesses
E-businessenhanced organization E-businessenabled organization
Total e-business organization
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Exhibit 1.8 Categories of
E-Business Involvement
E-business units withintraditional organization
E-BusinessEnhancedOrganization
E-business tools andapplications usedwithin traditional
organization
E-BusinessEnabled
Organization
Organizations entirework processes revolve
around e-business model
Total E-BusinessOrganization
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Challenges to Managing
Customers
Customers have more opportunities than ever
before Delivering consistent high-quality service is
essential
Managers need to create customer-responsive
organizations
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Challenges to Managing
Innovation
Nothing is more risky than not innovating
Doing things differently, exploring new territory,and taking risks
Managers need to encourage all employees to be
innovative
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Challenges to Managing
Knowledge Management
The cultivation of a learning culture where
organizational members systematically gatherand share knowledge with others in order to
achieve better performance
Learning Organization
An organization that has developed the capacity
to continuously learn, adapt, and change
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Exhibit 1.9 Learning Organization vs.
Traditional Organization
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Why Study Management?
The Value of Studying Management
The universality of management
Good management is needed in all organizations
The reality of work
Employees either manage or are managed
Self-employment
Running your own business rather than working for
someone else
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Exhibit 1.10 Universal Need for
Management
All Sizes of Organizations
Small Large
All Types of Organizations
Profit Not-for-Profit
All Organization Levels
Bottom Top
ManagementIs Needed
in...
All Organizational AreasManufacturing Marketing
Human Resources AccountingInformation Systems etc.
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Summary and Implications
What makes someone a manager?
Managers work with and through other people by
coordinating employee work activities in order toaccomplish organizational goals.
What is management and what do managers
do?
Management is coordinating work activities so
that they are done efficiently and effectively.
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Summary and Implications
What characteristics define an organization?
Managers work in a variety of organizations both large
and small within various industries
What are the challenges to managing?
The greatest managerial challenge is the crisis in ethical
responsibility damaging todays organizations
Does studying management make a difference?
Understanding management helps us to improve
organizations