Part 1 Meeting the Challenges of the 21st Century

Topic
1
Management
and Managers

PowerPoint Presentation by Wessex Press, Inc.

© 2016 Wessex Press, Inc. All rights reserved.

 LEARNING OUTCOMES
When you have finished studying this chapter, you
should be able to explain:

1 2 3 4 5 6 7 8
Management Basic The roles Scope of The three Major The The
Definition managerial that responsibiliti levels of influences interactions importance
functions managers es of managers and changes between of
play functional in the 21st planning, management
and general century organizing, study
managers leading, and
controlling

1–2
© 2016 Wessex Press, Inc. All rights reserved.
 What is Management?
• The Classic Definition
 The art of getting things done through people.
–Mary Parker Follett
• A Broader Definition
 The process of administering and coordinating
resources effectively, efficiently, and in an effort to
achieve the goals of the organization.

1–3
© 2016 Wessex Press, Inc. All rights reserved.
 Management
A process of establishing a mission (Planning) for
the organization that is appropriate for the
competitive environment, designing a strategy to
achieve that mission (Organizing), then
administering (Leading) and coordinating
(Controlling) resources so that the mission will
be accomplished in an effective and efficient
way.

1–4
© 2016 Wessex Press, Inc. All rights reserved.
 Effectiveness versus Efficiency
• Effectiveness (Goal)
 Achieved when the organization pursues appropriate
goals.
 This means “doing the right things”
• Efficiency (Resources)
 Achieved by using the fewest inputs (e.g., people and
money) to generate a given output.
 This means “doing things right”
• The end result of effective and efficient
management is organizational success.

1–5
© 2016 Wessex Press, Inc. All rights reserved.
 The Organization
• An Organization
 A group of individuals who work together toward
common goals.
• What do all organizations have in common?
 They are composed of people whose efforts must be
coordinated if the organization is to accomplish its
goals.

1–6
© 2016 Wessex Press, Inc. All rights reserved.
 LEARNING OUTCOMES
When you have finished studying this chapter, you
should be able to explain:

1 2 3 4 5 6 7 8
Management Basic The roles Scope of The three Major The The
Definition managerial that responsibiliti levels of influences interactions importance
functions managers es of managers and changes between of
play functional in the 21st planning, management
and general century organizing, study
managers leading, and
controlling

1–7
© 2016 Wessex Press, Inc. All rights reserved.
 What managers do
Figure 1.1 The Management Process

1–8
© 2016 Wessex Press, Inc. All rights reserved.
 Planning And Organizing
• Planning
 Setting goals and defining the actions necessary to
achieve those goals.

• Organizing
 The process of determining the tasks to be done, who
will do them, and how those tasks will be managed
and coordinated.

1–9
© 2016 Wessex Press, Inc. All rights reserved.
 Leading
• Leading
 Motivating and directing the members of the
organization so that they contribute to the
achievement of the mission & goals of the
organization.

• Leadership
 The capacity to direct and motivate the members
of work groups toward the accomplishment of
organizational goals.

1–10
© 2016 Wessex Press, Inc. All rights reserved.
 Controlling
• Monitoring the performance of the organization
and its progress in implementing strategic and
operational plans.
 Identifying deviations between planned and actual
results.
 Taking corrective action
 Ensuring that the organization is moving toward the
achievement of its goals.

1–11
© 2016 Wessex Press, Inc. All rights reserved.
 LEARNING OUTCOMES
When you have finished studying this chapter, you
should be able to explain:

1 2 3 4 5 6 7 8
Management Basic The roles Scope of The three Major The The
Definition managerial that responsibiliti levels of influences interactions importance
functions managers es of managers and changes between of
play functional in the 21st planning, management
and general century organizing, study
managers leading, and
controlling

1–12
© 2016 Wessex Press, Inc. All rights reserved.
 Roles of Managers
• Managers are the people who plan, organize, lead,
and control the activities of the organization so that
its goals can be achieved.

1–13
© 2016 Wessex Press, Inc. All rights reserved.
 Figure 1.2 Mintzberg’s Managerial Roles

1–14
© 2016 Wessex Press, Inc. All rights reserved.
 Mintzberg’s Managerial Roles
• Interpersonal Roles
 The manager’s responsibility for managing
relationships with organizational members and other
constituents:
i. Figurehead – social & community events
ii. Leader – responsible for success and failure of
organisations
iii. Liaison – coordinate activities,
individuals, group and relationship
with outsiders

1–15
© 2016 Wessex Press, Inc. All rights reserved.
 Mintzberg’s Managerial Roles (cont’d)

• Informational Roles
 The manager’s responsibility for gathering and
disseminating information to the stakeholders of the
organization:
i. Monitor – scan internal and external information
– opportunities and threats
ii. Disseminator – share and distribute information
received
iii. Spokesperson – communicate with outsider –
performance, direction, fulfill social
obligation and abiding law

1–16
© 2016 Wessex Press, Inc. All rights reserved.
Mintzberg’s Managerial Roles (cont’d)
• Decisional Roles
 The manager’s responsibility for processing information
and reaching conclusions:
i. Entrepreneur – initiates projects (develop new
product, service & process) – capitalize opportunities
ii. Disturbance handler – conflict – workers, suppliers,
customers..
iii. Resource allocator – financial, equipment, people,
time, information…
iv. Negotiator – employees, suppliers, customers or
other work groups

1–17
© 2016 Wessex Press, Inc. All rights reserved.
 LEARNING OUTCOMES
When you have finished studying this chapter, you
should be able to explain:

1 2 3 4 5 6 7 8
Management Basic The roles Scope of The three Major The The
Definition managerial that responsibiliti levels of influences interactions importance
functions managers es of managers and changes between of
play functional in the 21st planning, management
and general century organizing, study
managers leading, and
controlling

1–18
© 2016 Wessex Press, Inc. All rights reserved.
 Scope of Responsibility:
Functional and General Managers

A functional manager is A general manager is to ensure

responsible for a work group that parts of the org work
segmented by function. together effectively.

Chief Executive
General Parts Inc.

VP of VP of
Production Finance

Plant Service Account Payroll

Manager Manager Manager Manager

1–19
© 2016 Wessex Press, Inc. All rights reserved.
 LEARNING OUTCOMES
When you have finished studying this chapter, you
should be able to explain:

1 2 3 4 5 6 7 8
Management Basic The roles Scope of The three Major The The
Definition managerial that responsibiliti levels of influences interactions importance
functions managers es of managers and changes between of
play functional in the 21st planning, management
and general century organizing, study
managers leading, and
controlling

1–20
© 2016 Wessex Press, Inc. All rights reserved.
 Figure 1.3 Managerial Levels

 Managers at all
organizational levels VP / CEO/ Director
engage in planning,
organizing, leading,
and controlling, Senior manager /
however, the degree regional manager
to which they are
immersed in the
basic functions Departmental Head,
varies. Product Manager,
Marketing Manager

POLC

Operational employees are the individuals who are not in the managerial
ranks but who actually deliver the product or service of the organization.
1–21
© 2016 Wessex Press, Inc. All rights reserved.
 Figure 1.4 Skills Needed at Different Levels of Management

Daily Operational routine

- Tools, techniques &
procedure Monitor environment &
- Instruct & guide subordinates Set strategic
- Manage individual direction
performance
1–22
© 2016 Wessex Press, Inc. All rights reserved.
 Management Skills
• Technical Skills (First line manager)
 The ability to utilize the knowledge of tools,
techniques, and procedures that are specific to a
particular field.
• Human Skills (Middle manager)
 The ability to work effectively with one’s own work
group as well as others within the organization.
• Conceptual Skills (Top manager)
 The ability to process information about the
internal/external environment of the organization and
determine its implications.
Synthesis
1–23
© 2016 Wessex Press, Inc. All rights reserved.
 The New Manager/Leader Profile
• Managers who:
 Are no longer “the boss” rather they act as sponsors,
team leaders, or internal consultants.
 No longer control from the top of the pyramid; nor try
to control the action from the sidelines.
 Empower individual employees to do what is
necessary to achieve goals.
 Make sure that employees have the resources to get
the job done.

1–24
© 2016 Wessex Press, Inc. All rights reserved.
 LEARNING OUTCOMES
When you have finished studying this chapter, you
should be able to explain:

1 2 3 4 5 6 7 8
Management Basic The roles Scope of The three Major The The
Definition managerial that responsibiliti levels of influences interactions importance
functions managers es of managers and changes between of
play functional in the 21st planning, management
and general century organizing, study
managers leading, and
controlling

1–25
© 2016 Wessex Press, Inc. All rights reserved.
 Managing in the 21st Century
• What’s different?
 The rate of change continues to increase
• What’s the same?
 The same basic business, economic, and managerial
principles still apply
• Important change factors:
1) Advances in the use of IT
2) Increasing globalization
3) Increasing diversity
4) Intellectual capital and property
5) Sustainability
6) Ethics
1–26
© 2016 Wessex Press, Inc. All rights reserved.
 1).Use of Information Technology
• Electronic commerce is working.
 E-businesses are using basic managerial and
business principles and are profitable.
 Traditional, brick-and-mortar businesses use of the
Internet as a complement to their existing businesses.
• Benefits of Information Technology
 Instant feedback from the market
 More sharing of information internally
 Tighter links to suppliers
 Increased globalization and global expansion

1–27
© 2016 Wessex Press, Inc. All rights reserved.
 2).Increasing Globalization
• Globalization
 Various companies moving to multiple countries and
doing business in multiple countries.
• The international business environment
 Involves most organizations—even the smallest
business can reach a global marketplace with relative
ease.
 Presents unique managerial challenges in terms of
complexity and a broader set of environmental forces.

1–28
© 2016 Wessex Press, Inc. All rights reserved.
 3).Increasing Diversity in the Workplace
• Diversity
 The heterogeneity of the population and work force
• The challenge of diversity
 Developing the strong organizational culture and
group cohesiveness required for organizational
success when the workplace includes people with
different backgrounds, from different nations, or with
different cultural frames of reference.

1–29
© 2016 Wessex Press, Inc. All rights reserved.
 4).The Growing Importance of Intellectual
Capital and Property
• Intellectual capital
 The sum and synergy of an organization’s knowledge,
experience, relationships, processes, discoveries,
innovations, market presence and community
influence.
• Major categories of intellectual capital
 Structural capital
 Customer capital
 Human capital

1–30
© 2016 Wessex Press, Inc. All rights reserved.
 Categories of Intellectual Capital
• Structural capital
 The accumulated knowledge of the organization
represented by its patents, trademarks and
copyrights, proprietary databases, and systems.
• Customer capital
 The value of established relationships with
customers and suppliers.
• Human capital
 The cumulative skills and knowledge of the
organization.

1–31
© 2016 Wessex Press, Inc. All rights reserved.
 5).Sustainability
• Sustainability for Organizations
 An approach to manage organizations in ways that do not harm
the natural environment and/or use resources in ways that will
not deplete them.
 Managers will need to be aware of any environmental standards
being set in their industries that need to be met in order for their
business to be successful.

• Sustainability increases revenue, profits, and

competitive advantage

1–32
© 2016 Wessex Press, Inc. All rights reserved.
 6). Ethics
• Ethical Behavior
 Behavior that is considered by most to
be acceptable.
• Unethical Behavior of Managers
 Major scandals during the years
around 2005: Enron, WorldCom,
Adelphi, Tyco, and etc.

 Insider trading (Cases: Raj

Rajaratnamround, David Sokol)

1–33
© 2016 Wessex Press, Inc. All rights reserved.
 LEARNING OUTCOMES
When you have finished studying this chapter, you
should be able to explain:

1 2 3 4 5 6 7 8
Management Basic The roles Scope of The three Major The The
Definition managerial that responsibiliti levels of influences interactions importance
functions managers es of managers and changes between of
play functional in the 21st planning, management
and general century organizing, study
managers leading, and
controlling

1–34
© 2016 Wessex Press, Inc. All rights reserved.
 Figure 1–5 An Overall Framework of Management

1–35
© 2016 Wessex Press, Inc. All rights reserved.
 An Overall Framework of Management
• External environment PESTLE, Competitors

 The setting in which an organization operates; the

markets and industry.
Internal Environment:
• Competencies employees, culture, structure
 The things that an organization can do well; with the
skills and abilities.
• The functions of management all interact with
each other, and together they lead to effective
and efficient achievement of an organization’s
overall goals.

1–36
© 2016 Wessex Press, Inc. All rights reserved.
 LEARNING OUTCOMES
When you have finished studying this chapter, you
should be able to explain:

1 2 3 4 5 6 7 8
Management Basic The roles Scope of The three Major The The
Definition managerial that responsibiliti levels of influences interactions importance
functions managers es of managers and changes between of
play functional in the 21st planning, management
and general century organizing, study
managers leading, and
controlling

1–37
© 2016 Wessex Press, Inc. All rights reserved.
 Why Study Management?
• Universal applicability
 The basic functions that managers perform, the roles
that managers play, and the skills that managers use
are universal.
• Organizational need
 The basic functions—planning, organizing, leading,
and controlling—are required to become a successful
manager at any levels in every organization (effective
& efficient – organisational profit).
• Students – career development

1–38
© 2016 Wessex Press, Inc. All rights reserved.
 Are you ready to lead in the 21st Century?

1–39
© 2016 Wessex Press, Inc. All rights reserved.