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Chapter 1 pp - The Management Process Today Chapter One...

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Unformatted text preview: The Management Process Today Chapter One What is Management? Management the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals efficiently and effectively Resources organization's assets such as people and their skills, knowhow, and knowledge; machinery; raw materials; computers and information technology; and financial capital Achieving High Performance: A Manager's Goal Organizational performance measure of how efficiently and effectively a manager uses resources to satisfy customers and achieve organizational goals Efficiency measure of how well or how productively resources are used to achieve a goal Effectiveness measure of the appropriateness of the goals an organization is pursuing and of the degree to which the organization achieves those goals Efficiency and Effectiveness Low efficiency / High Effectiveness Right goals, but improper use of resources Result...Consumer demand, but too expensive to purchase Low efficiency / Low Effectiveness Wrong goals and improper use of resources Result... Lowquality product that consumers don't want High efficiency / High Effectiveness Right goals and proper use of resources Result...Consumer demand and affordable prices High efficiency / Low Effectiveness Wrong goals, but proper use of resources Result...Highquality product that consumers don't want Why Study Management? #1 Wellbeing and prosperity of people in a society #2 Helps people deal with their bosses and their coworkers #3 Understanding management can help obtain a satisfying career Managers Accomplish the Objective of Using It's Organization's Resources to Achieve It's Goals By: Planning Organizing Leading Controlling Planning The process that managers use to identify and select appropriate goals and courses of action. (Example: The Dell computer company is constantly planning on how to maintain its position as the biggest PC maker in the world today.) 3 Steps in the Planning Process 1. To decide which goals the organization will pursue. To decide what courses of action to adopt in order to pursue those goals. To decide how to assign organizational resources to attain those goals. 1. 1. Organizing The process that managers use to create a structure of working relationships that will allow the member's of that organization to interact and cooperate in order to achieve the organizations goals. (Example: As the Dell Company grew, organizing became a key factor to help the organization achieve its goals.) key factor to help the organization achieve its goals.) Leading The process of articulating a clear vision for, constantly providing energy for, and enabling organizational members so that they understand the role they play in achieving the organizations goals. (Example: The managers at Dell use a handson leading style, which resulted in a hardworking, committed workforce.) Leadership Skills to Encourage All Employees to Perform at a High Level Include: Power Influence Vision Persuasion Communication Controlling The process that managers use to evaluate how well the organization is achieving its goals and how to take action to maintain or improve performance. (Example: Dell hired experienced managers specifically for controlling how the company maintained its performance.) Planning Choose appropriate organizational goals and courses of action to best achieve those goals. Controlling Create accurate measuring and monitoring systems to see how well the organization has achieved its goals. Organizing Establish task and authority relationships that allow people to work together to achieve goals. Leading Motivate, coordinate, and energize individuals to work together to achieve goals. Types of Managers Usually three types of managers First Line Managers Middle Managers Top Managers First Line Managers Often called supervisors. Responsible for supervision of nonmanagerial employees. Usually work in all departments. Middle Managers Responsible for supervising the first line managers. They find the best way to organize human and other resources. Main goal is to maximize effectiveness. Top Managers Responsible for the performance of all departments. Ultimately responsible for the success or failure of an organization. The CEO (chief executive officer), is a company's most senior and important manager. The CEO's Duties Form a topmanagement team. Develop good working relationships among other top managers. How They Work Together The three types are grouped into departments. Each department is a group of people who share similar skills, or use the same kind of knowledge or tools to perform their job. Recent Changes in Management New technologies put pressure on managers to improve efficiency. Lower managers are encouraged to take a broad view, and look beyond their departments. Restructuring and Outsourcing Restructuring involves removing middle, lower, and nonmanagerial employees by replacing them with IT solutions. Outsourcing is contracting with another company, usually abroad, to perform an activity previously performed by the company. SelfManaged Teams A group of employees who oversees their own activities, and monitors their own performance. They empower their workforce by expanding their knowledge, tasks, and responsibilities. Sometimes changes the workers position in the Challenges for Management in a Global Environment Global Organizations: Organizations that operate and compete in more than one country. Competitive advantage: The ability of one organization to outperform other organizations because it produces desired goods or services more efficiently than One's competitors. Building Blocks of Competitive Advantage Efficiency Quality Competitive advantage Innovation Responsiveness To Customers 4 Pillars of Competitive Advantage Increasing Efficiency Increasing Quality Increasing Speed, Flexibility, and Innovation Increasing Responsiveness to Customers Efficiency Organizations increase their efficiency when they reduce the quantity of resources used to produce goods or services. In today's competitive environment, organizations constantly are seeking new and innovative ways to improve efficiency. New techniques and skills are needed. Computerization requiring crosstraining is needed in order to stay competitive with countries like Mexico and Malaysia with there substantial lower wage rate. Quality (TQM) Total Quality Management: A qualityenhancing technique based on a significant new philosophy of managing behavior in organizations. TQM are responsible for finding new and better ways to perform their employees jobs; they also must monitor and evaluate the quality of the goods produced. Global markets and financial firms has increased pressure on companies to improve the skills and abilities of their workforces in order to improve the quality of their goods and services. Speed, Flexibility & Innovation Speed: How fast they bring new products to market Flexibility: How easily they can change or alter the way they perform their activities to respond to the actions of their competitors Speed + Flexibility = Agility Innovation: The process of creating new or improved goods and services that customers want or developing better ways to produce or provide goods and services. Responsiveness to Customers Retail stores, banks, and hospitals, depend entirely on their employees ability to perform behaviors that result in highquality customer service at a reasonable cost. This change is largely based on our countries turn towards a more servicebased economy. Nonmanagerial employees are being given more responsibility to address the customers needs. As part of a front line offensive to provide higher Learning Objectives Describe what management is, why management is important, what managers do and how managers utilize organizational resources efficiently and effectively to achieve organizational goals. Distinguish among planning, organizing, leading and controlling (the four principal managerial functions), and explain how managers' ability to handle each one can affect organizational performance. Learning Objectives (continued) Differentiate among three levels of management, and understand the responsibilities of managers at different levels in the organizational hierarchy. Identify the roles managers perform, the skills they need to execute those roles more effectively, and the way new information technology is affecting these roles and skills. Discuss the principal challenges managers face in today's increasingly competitive global environment. The Management Process Today Chapter One Fun Facts: The nation's first Better Business Bureau was founded in Minneapolis in 1912. Rollerblades were the first commercially successful inline Roller Skates. Minnesota students Scott and Brennan Olson invented them in 1980, when they were looking for a way to practice Hockey during the offseason. Their design was an ice hockey boot with 3 inline wheels instead of a blade. Minnesota has 90,000 miles of shoreline, more than California, Florida and Hawaii combined. Minneapolis has more golfers per capita than any other city in the country. The climatecontrolled Metrodome is the only facility in the country to host a Super Bowl, a World Series and a NCAA Final Four Basketball Championship. http://www.50states.com/facts/minn.htm ...
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