Chp 1: The Nature Of Management

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Management

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Is the process of assembling and using sets of resources in a goal-directed manner to accomplish tasks in an organization.

1. is a process: It involves a series of activities and operations, such as planning, deciding, and evaluating

2. Involves assembling and using sets of resources; brings together human, financial, material, and informational resources.

3.Involves acting in a goal directed manner to accomplish tasks; activity with a purpose and direction; purpose or direction may be that of the organization or individual

4. Involves activities carried out in an organization.

(PG 4)

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Organization

Back 2

An interconnected set of individuals and groups who attempt to accomplish common goals through differentiated functions and their coordination. (PG 4)

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Managerial Challenges

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1. Must manage change

2. Manage resources

3. Manage strategically

4. Must manage entrepreneurially

(PG 5)

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Managing Change

Back 4

Managers must deal with change because its necessary and the firm will become obsolete if it's not dealt with.

Since employees and people in general are resistant to change, managers must find ways to make them accept change, such as through small wins to legitimize the change.

Two common causes of change are technology and globalization. (PG 5)

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Technology

Back 5

Because of its impact, it causes unavoidable changes for management.

Often leads to the development of new products and processes for accomplishing tasks, such as the internet, which has created many opportunities to market products differently, reach distant markets, and to communicate externally and internally in more effective ways.

Managers must identify these opportunities and exploit them before competition does that.

Increases the rate of change, flow of information, competitive reach into international markets, and the amount of competition in all markets.

(PG 5)

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Globalization

Back 6

Is the development and observation of the increasing international and cross-national nature of everything from politics to business.

Managers must be aware of global events because they affect their goals and decisions.

Opening up foreign markets has increased global competition and outsourcing from companies like Junk Food to India and China.

Firms need to learn about other cultures and institutional environments to succeed in foreign markets

Entering into foreign markets is challenging, as evidenced by Wal-Mart's difficulties entering Mexico and Japan.

(PG 6)

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Managing Resources

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Managers must build and manage a portfolio of resources such as human capital, financial capital, physical resources, and technology and ensure the efficient use of them while maximizing the achievement of the firm's goals.

(PG 7)

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Managing Strategically

Back 8

Managers establish goals and formulate a strategy to meet those goals; they accomplish them by effectively implementing the strategy, requiring managers at all levels of the organization to set and accomplish goals that contribute to the ultimate performance of the organization. (PG 8)

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Managing Entrepreneurially

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For an organization to survive, managers must develop an entrepreneurial mind-set, which involves identifying new opportunities and exploiting them. (PG 9)

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Historical Approaches to Management

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Managerial challenges encountered by many ancient civilizations such as Chinese leaders 1,000 years ago, in Egypt with the pyramids, and Roman Empire with monuments.

Origins of modern management found in Industrial revolution and many have contributed to the development of management, but Frederick W. Taylor(Motivation theory[incentives] Scientific management) is considered the father of modern management. (PG 10)

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Four Principal Managerial Functions

Back 11

1. Planning
2. Organizing
3. Directing
4. Controlling
(PG 10)

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Planning

Back 12

Involves estimating the circumstances, and making decisions based on these estimations about the work of the manager and for all employees he is responsible.

1. Strategic Planning

2. Tactical Planning

3. Operational Planning

(PG 11)

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Strategic Planning

Back 13

Addresses strategic actions designed to achieve the organization's long-term goals.

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Tactical Planning

Back 14

Translates strategic plans into actions designed to achieve shorter-term goals and objectives.

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Operational Planning

Back 15

Identifies the actions needed to accomplish the goals of particular units of the organization or particular product lines in their respective markets.

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Organizing

Back 16

Identifying the appropriate structure of relationships among positions and the people occupying them, and linking that structure to the overall strategic direction of the organization; attempt to bring order to a firm. (PG 11)

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Directing

Back 17

Is a process with several dimensions such as leadership, motivation(rewards), communication, and the management of groups and teams; Also,it attempts to influence other people to attain the organizations objectives. (PG 11)

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Controlling

Back 18

Regulating the work of those for whom the manager is responsible and accomplished by:

1. Setting standards for employees in advance

2. Monitoring ongoing performance

3. Assessing performance of employees on completed tasks

4. Feeding back back into manager's planning process

(PG 13)

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3 Major categories of Managerial Roles

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1. Interpersonal

2. Informational

3. Decisional

(PG 13)

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Interpersonal Roles

Back 20

1. Figurehead role

2. Leader role

3. Liaison

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Figurehead Role

Back 21

Emphasizes ceremonial activities such as attending a social function, welcoming a visiting dignitary, presiding at a farewell reception for a departing employee.

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Leader Role

Back 22

Involves influencing and directing others and the set of responsibilities people typically associate with a manager's job.

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Liaison Role

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Emphasizes manager's contacts with those outside the formal chain of command such as other managers(lateral interactions) customers, suppliers, government officials, and managers from other organizations.

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Informational Roles

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1. The Monitor

2. The Disseminator

3. The Spokesperson

(PG 14-15)

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The Monitor Role

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Involves extensive information gathering, which managers engage to remain aware of crucial developments that may affect their units and their own work.

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The Disseminator Role

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Manager receives and sends information, which often includes information that the receiver wants but otherwise has no easy access to with out the help of a manager.

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The Spokesperson Role

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A manager is frequently called upon to represent the views of the unit for which he is responsible.

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Decisional Roles

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1. The Entrepreneurial Role

2. The Disturbance Handler

3. The Resource Allocator

4. The Negotiator

(PG 15-16)

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The Entrepreneurial Role

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Explore new opportunities or start new projects, which involves a series of small decisions that permit ongoing assessment about whether to continue or abandon new ventures.

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The Disturbance Handler

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Manager often acts as a judge, problem solver, or conflict manager to stop small problems from developing into large ones; keeping the peace

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Resource Allocator

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Decisions related to the efficient distribution of resources, such as deciding how many clerks to assign to a particular shift in a hotel resort.

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Negotiator

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Managers are called upon to make accommodations with other units or other organizations.

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Three Managerial Job Dimensions

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1. Demands

2. Constraints

3. Choices

(PG 16)

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Demands

Back 34

Refers to what a manager must do, which involves:

1. Carrying out activities and duties

2. Meeting minimum standards or levels of performance

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Constraints

Back 35

Factors that limit a manager's response to various demands, such as time, budgets, technology, attitudes of subordinates, and legal regulations.

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Choices

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Managers always have the opportunity to exercise discretion, despite demands and constraints by making choices about what to do or not to do, how to complete tasks, and which employees will participate in projects among others.

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Skills Managers Need

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1. Technical Skills

2. Interpersonal Skills

3. Conceptual Skills

(PG 19-20)

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Technical Skills

Back 38

Involve having specialized knowledge about procedures, processes, and equipment, and include knowing how and when to use that knowledge; more important at lower levels, less important at higher levels.

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Interpersonal Skills

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Skills such as sensitivity, persuasiveness, and empathy that are important at all levels of management, particularly at lower and middle levels.

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Conceptual Skills(Cognitive Ability, Cognitive Complexity)

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Skills such as logical reasoning, judgment, and analytical abilities; major determinant of who reaches the highest level of management in a firm.