Managing and the Manager’s Job

Lecture One

Safiul Azam, ACMA

Learning Objectives

1–2

After studying this chapter, you should be able to:1. Describe the nature of management, define management and managers, and

characterize their importance to contemporary organizations.

2. Identify and briefly explain the four basic management functions in organizations.

3. Describe the kinds of managers found at different levels and in different areas of the organization.

4. Identify the basic managerial roles that managers may play and the skills they need in order to be successful.

5. Discuss the science and the art of management, describe how people become managers, and summarize the scope of management in organizations.

6. Characterize the new workplace that is emerging in organizations today.

Safiul Azam, ACMA

What is Management?

1–3

A set of activitiesplanning and decision making,

organizing, leading, and controlling

directed at an organization’s resources

human, financial, physical, and information

with the aim of achieving organizational goals in an efficient and effective manner.

Safiul Azam, ACMA

Organizational Resources

1–4

Human resourcesManagerial talent and labor

Financial resourcesCapital investments to support

ongoing and long-term operationsPhysical Assets

Raw materials; office and production facilities, and equipment

InformationUsable data, information linkages

Safiul Azam, ACMA

Examples of Resources Used by Organizations

1–5

Safiul Azam, ACMA

Management in Organizations

1–6

Safiul Azam, ACMA

1–7

EFFICIENTLYEFFICIENTLYUsing resources wisely andUsing resources wisely and

in a cost-effective wayin a cost-effective way

EFFECTIVELYEFFECTIVELYMaking the right decisions andMaking the right decisions and

successfully implementing themsuccessfully implementing them

AndAnd

Safiul Azam, ACMA

What is a Manager?

1–8

Someone whose primary responsibility is to carry out the management process.

Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.

Safiul Azam, ACMA

The Manager’s Job

1–9

Plan:A manager cannot operate effectively unless he or she has

long range plans.Organize

When there is more than one employee needed to carry out a plan, then organization is needed.

ControlDevelop a method to know how well employees are

performing to determine what has been and what still must be done.

Safiul Azam, ACMA

The Management Process

1–10

Planning and Decision Making: Determining Courses of Action

Organizing: Coordinating Activities and Resources

Leading: Motivating and Managing People

Controlling: Monitoring and Evaluating Activities

Safiul Azam, ACMA

The Management Process

1–11

Safiul Azam, ACMA

Kinds of Managers by Level

1–12

Top Managersare the small group of executives who manage the overall

organization. They create the organization’s goals, overall strategy, and operating policies.

Middle Managersare primarily responsible for implementing the policies

and plans of top managers. They also supervise and coordinate the activities of lower level managers.

First-Line Managerssupervise and coordinate the activities of operating

employees.

Safiul Azam, ACMA

Kinds of Managers by Level

1–13

Safiul Azam, ACMA

Kinds of Managers by Area

1–14

Marketing Managerswork in areas related to getting consumers and clients to

buy the organization’s products or services—new product development, promotion, and distribution.

Financial Managersdeal primarily with an organization’s financial resources

—accounting, cash management, and investments.Operations Managers

are involved with systems that create products and services—production control, inventory, quality control, plant layout, site selection.

Safiul Azam, ACMA

Kinds of Managers by Area (cont’d)

1–15

Human Resource Managersare involved in human resource activities.

Administrative Managersare generalists familiar with all functional areas of

management and are not associated with any particular management specialty.

Other Kinds of Managershold specialized managerial positions (e.g., public

relations managers) directly related to the needs of the organization.

Safiul Azam, ACMA

Kinds of Managers by Level and Area

1–16

Safiul Azam, ACMA

Managerial Roles (Mintzberg)

1–17

Interpersonal RolesFigurehead, leader, and liaison roles involve dealing

with other people.Informational Roles

Monitor and spokesperson roles involve the processing of information.

Decisional Roles Entrepreneur, disturbance handler, resource

allocator, and negotiator are managerial roles primarily related to making decisions.

Safiul Azam, ACMA

Ten Basic Managerial Roles

1–18 Safiul Azam, ACMA

Managerial Skil ls

1–19

Safiul Azam, ACMA

Managerial Skills (cont’d)

1–20

CommunicationTo convey ideas and information effectively to others and to

receive ideas and information effectively from others.Decision-Making

To recognize and define problems and opportunities and then to select an appropriate course of action to solve the problems and capitalize on the opportunities.

Time-ManagementTo prioritize work, to work efficiently, and to delegate

appropriately.

Safiul Azam, ACMA

Management: Science or Art?

1–21

The Science of ManagementAssumes that problems can be approached using rational, logical,

objective, and systematic ways.Requires the use of technical, diagnostic, and decision-making skills

and techniques to solve problems.

Art of Management Making decisions and solving problems using a blend of intuition,

experience, instinct, and personal insights.Using conceptual, communication, interpersonal, and time-

management skills to accomplish the tasks associated with managerial activities.

Safiul Azam, ACMA

Managerial Activities

1–22 Safiul Azam, ACMA

Sources of Management Skil ls

1–23 Safiul Azam, ACMA

The Management Process

1–24

Management process is a process of planning and controlling the organizing and leading execution of any type of activity, such as:

a project (project management process) ora process (process management process, sometimes referred to as the process performance measurement and management system).

The organization's senior management is responsible for carrying out its management process. However, this is not always the case for all management processes; for example, it is the responsibility of the project manager to carry out a project management process.

Safiul Azam, ACMA

Nature of Managerial Work

1–25

In profitable organizations, management's primary function is the satisfaction of a range of stakeholders. This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers), and providing great employment opportunities for employees.

In nonprofit management, add the importance of keeping the faith of donors. In most models of management and governance, shareholders vote for the board of directors, and the board then hires senior management. Some organizations have experimented with other methods (such as employee-voting models) of selecting or reviewing managers, but this is rare.

In the public sector of countries constituted as representative democracies, voters elect politicians to public office. Such politicians hire many managers and administrators, these political appointees lose their jobs on the election of a new president/governor/mayor.

Safiul Azam, ACMA

Managing in Organizations

1–26

For-Profit OrganizationsLarge businesses

Industrial firms, commercial banks, insurance firms, retailers, transportation firms, utilities, communication firms, service organizations

Small businesses and start-up businessesInternational management

Not-for-Profit OrganizationsGovernmental organizations—local, state, and federal Educational organizations—public and private schools, colleges, and

universitiesHealthcare facilities—public hospitals and HMOsNontraditional settings—community, social, spiritual groups

Safiul Azam, ACMA

Key Terms

1–27

organizationmanagementeffectiveefficientmanagerdecision makingorganizingleadingcontrollinglevels of managementareas of management

interpersonal rolesinformational rolesdecisional rolestechnical skillsinterpersonal skillsconceptual skillsdiagnostic skillscommunication skillsdecision-making skillstime-management skills

Safiul Azam, ACMA