Management Fundamentals

11Agenda and AnnouncementsAgenda: Open Discussion on Chapter 1 Management Management Overview Skill Builder 2 Page 31 Microsoft Case Page 29 Questions or Discussion ClosingAnnouncements: Sign In on Attendance SheetWaiting List see Instructor for Add Codes Homework Due any Problems?Web Q Microsoft Case & Course Expectations Textbook Problems?

PowerPoint Presentation by Charlie CookThe University of West AlabamaCopyright 2006 Thomson Business and Economics. All rights reserved.Chapter 1Managing214Copyright 2006 Thomson Business and Economics. All rights reserved. Why Study OB & Management?The better you can work with people, the more successful you will be in both your personal and your professional lives.Employers want to hire employees who can participate in managing the firm.Even nonmanagers (Individual Contributors) are being trained to perform management functions.

15Copyright 2006 Thomson Business and Economics. All rights reserved. Why Study OB & Management? (contd)The study of management builds the skills needed in todays workplace to succeed in:Becoming a partner in managing your organization through participative management.Working in a team and sharing in decision making and other management tasks.The study of management also applies directly to your personal life in helping you to:Communicate with and interact with people every day.Make personal plans and decisions, set goals, prioritize what you will do, and get others to do things for you.Society Needs Leaders and Team Players Be Successful in our Community, Religious, Social, Professional, Recreational and Other Organizations.Become Leaders for a Just and Humane World

16Copyright 2006 Thomson Business and Economics. All rights reserved. What Is a Managers Responsibility?ManagerThe individual responsible for achieving organizational objectives through efficient and effective utilization of resources. Participative?The Managers ResourcesHuman, financial, physical, and informationalPerformanceMeans of evaluating how effectively and efficiently managers use resources to achieve objectives.Today often means How as well as What17Copyright 2006 Thomson Business and Economics. All rights reserved. What Does It Take to Be a Successful Manager?Exhibit 12Management Qualities (Survey of Execs.)Integrity, industriousness, and the ability to get along with peopleManagement SkillsTechnical Human and communication (Teaming)Conceptual and decision-making skillsSystems Thinking & Critical ThinkingThe Ghiselli Study(6 Traits of Manager Success Inverse Order)6) Initiative, 5)self-assurance,4) decisiveness, 3) intelligence, 2) need for occupational achievement, and 1) supervisory ability

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19Copyright 2006 Thomson Business and Economics. All rights reserved. What Do Managers Do?Management Functions (Different Scope at job level)PlanningSetting objectives and determining in advance exactly (?) how the objectives will be met. Monitor for Change and Anticipate or ReactPDCA Plan Do Check - ActOrganizingDelegating and coordinating tasks and allocating resources to achieve objectives.LeadingInfluencing employees to work toward achieving objectives. Setting an Example (Shadow of the Leader)ControllingEstablishing and implementing mechanisms to ensure that objectives are achieved.

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111Copyright 2006 Thomson Business and Economics. All rights reserved. The Systems Relationship among the Management FunctionsExhibit 13

Management FunctionsManagement Skills112Copyright 2006 Thomson Business and Economics. All rights reserved. Management RolesRoleA set of expectations of how one will behave in a given situation.Management Role Categories (Mintzberg)InterpersonalFigurehead, leader, and liaisonInformationalMonitor, disseminator, and spokespersonDecisionalEntrepreneur, disturbance handler, resource allocator, and negotiator113Copyright 2006 Thomson Business and Economics. All rights reserved. Ten Roles Managers PlayExhibit 14

Managers play various roles as necessary while performing their management functions so as to achieve organizational objectives.114Copyright 2006 Thomson Business and Economics. All rights reserved.

115Copyright 2006 Thomson Business and Economics. All rights reserved. Differences Among ManagersThe Three Levels of ManagementTop managersCEO, president, or vice presidentMiddle managersSales manager, branch manager, or department headFirst-line managersCrew leader, supervisor, head nurse, or office managerIndividual Contributors (ICs)Non-management operative employeesWorkers in the organization who are supervised by first-line managers.Professionals/Specialists/Technicians (Knowledge Workers)116Copyright 2006 Thomson Business and Economics. All rights reserved. Management Levels and Functional AreasExhibit 15

INDIVIDUAL CONTRIBUTORS OFTEN REPORT ANYWHERESOME ORGANIZATIONS FLIP THIS CHART UPSIDE DOWN117Copyright 2006 Thomson Business and Economics. All rights reserved. Types of ManagersGeneral ManagersSupervise the activities of several departments.Functional ManagersSupervise the activities of related tasks.Common functional areas:Marketing/Sales/Product DevelopmentOperations/Production/Services DeliveryFinance/AccountingHuman Resources/personnel managementInfrastructure (IT, Real Estate, Legal)Project ManagersCoordinate employees across several functional departments to accomplish a specific task.118Copyright 2006 Thomson Business and Economics. All rights reserved. Management Skills and FunctionsDifferences among management levels in skill needed and the functions performed:Exhibit 16

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120Copyright 2006 Thomson Business and Economics. All rights reserved. Individual Management StylesSkill Builder 2 Page 31What is Your Preferred Management Style?12 Points PossibleAutocraticConsultativeParticipativeEmpowermentCombinations or FlexibleBest Management Style? Adaptive or Situational Leadership121Copyright 2006 Thomson Business and Economics. All rights reserved. Differences between Large and Small BusinessesExhibit 17

122Copyright 2006 Thomson Business and Economics. All rights reserved. Differences between Large and Small Businesses (contd)Exhibit 17 contd

ALSO OFTEN APPLIES TO NON-PROFITS AND CIVIC ORGANIZATIONS, WITH FOCUS ON THEIR MISSION123Copyright 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and ChallengesTechnology and SpeedGlobalization and DiversityKnowledge, Learning, Quality, and Continuous ImprovementChange, Creativity, Innovation, and EntrepreneurshipParticipative Management, Empowerment, and TeamsKnowledgeManagementEthics and Social ResponsibilityNetworking and Boundaryless RelationshipsGENERATIONAL DIFFERENCES124Copyright 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges (contd)Knowledge, Learning, Quality, and Continuous ImprovementInformation is the foundation of knowledge which, in turn, is the foundation of competitive advantage. People (employees) are the competitive advantage!Knowledge workersThe learning organizationKnowledge ManagementInvolves everyone in an organization in sharing knowledge and applying it to continuously improve products and processes.125Copyright 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges (contd)Change, Creativity, Innovation, and EntrepreneurshipKnowledge management requires that people change in order to continually improve.The speed of change in modern business has increased because of globalization and changes in technology. And other factors listed.Creativity is coming up with new ideas for improvements, and innovation is implementing those ideas.Entrepreneurship is about generating creative ideas and using them through innovation.126Copyright 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges (contd)Participative Management, Empowerment, and TeamsEmpowering employees to share in performing management functions by working in teams.Learning organizations manage knowledge well by empowering teams to be creative and innovative.Ethics and Social ResponsibilityManagerial integritySOX Compliance after Financial ScandalsSituational responses e. g. Katrina127Copyright 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges (contd)Networking and Boundaryless RelationshipsElectronic networks Beware the informality of e-mail, miss-interpreted messages and first impressionsCan be distracting/off task Relationship networksVirtual integration

QUESTION ARE ELECTRONIC TOOLS CHANGING THE QUALITY OF RELATIONSHIPS? E-Mail, NetMeeting, Video Conferences?

128Copyright 2006 Thomson Business and Economics. All rights reserved. Microsoft Case QuestionsWhich type of resource played the most important role in the success of Microsoft? a. humanc. financial b. physicald. informational

2. Which of the management skills is stressed most in the case study? a. technical b. human and communication c. conceptual and decision-making

3. Which of the management functions is stressed most in the case study? a. planning c. leadingb. organizing d. controlling 4. Bill Gates' participation in and coordination of small units and his delegation of authority to managers to run their departments are examples of the __ management function. a. planning c. leadingb. organizing d. controlling

5. Which primary management role did Bill Gates use to achieve success? a. interpersonal-leader b. informational-monitor c. decisional-negotiator

6. Bill Gates is at which level of management? a. top b. middle c. first-line

129Copyright 2006 Thomson Business and Economics. All rights reserved. Microsoft Case7. Which type of manager is Bill Gates? a. general b. functional c. project

8. Bill Gates has greater need for which skills? a. technical rather than conceptualb. conceptual rather than technicalc. a balance of both

9. How does Bill Gates spend most of his time?a. planning and organizing b. leading and controlling c. a balance of both a and b

10. Would Ghiselli (6 Traits page 10) agree that Bill Gates has supervisory ability?a. Yesb. No

11. Give examples of some of the tasks Bill Gates performs in each of the four management functions.

12. Give examples of some of the tasks Bill Gates performs in each of the three management roles.

13. Do you think you would like to work tor Bill Gates? Explain your answer.

14. Are Bill Gates and Microsoft ethical and socially responsible?

130Copyright 2006 Thomson Business and Economics. All rights reserved. ClosingQuestions on Todays MaterialFeedback on Todays Class or send me an e-mailWas it Work Worth DoingFor Next Tuesday:Read Chapter 10 Teams and Team LeadershipRead The Team that Wasnt CaseAnswer Case Questions (Web Q)Student Information Web Q and Picture Upload

131Copyright 2006 Thomson Business and Economics. All rights reserved. Back Up Slides132Copyright 2006 Thomson Business and Economics. All rights reserved. Learning OutcomesDescribe a managers responsibility. List and explain the three management skills.List and explain the four management functions.Identify the three management role categories.List the hierarchy of management levels. Describe the three different types of managers. Describe the differences among management levels in terms of skills needed and functions performed.After studying this chapter, you should be able to:133Copyright 2006 Thomson Business and Economics. All rights reserved. Learning Outcomes (contd)Define the following key terms:manager planning managers resources organizing performance leading management skills controlling technical skillsmanagement role categorieshuman and communication skillslevels of managementconceptual and decision- making skills types of managersmanagement functions knowledge management 134Copyright 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges (contd)Technology and SpeedE-business: work done by using electronic linkages (including the Internet) between employees, partners, suppliers, and customers.E-commerce: business exchanges or transactions that occur electronically.Globalization and DiversityMergers are creating larger globalized firms.Firms competing globally have to act locally.Diversity is increasing as minorities grow and markets globalize.135Copyright 2006 Thomson Business and Economics. All rights reserved. E-CommerceExhibit 18

PowerPoint Presentation by Charlie CookThe University of West AlabamaCopyright 2006 Thomson Business and Economics. All rights reserved.AppendixA Brief History of Management36137Copyright 2006 Thomson Business and Economics. All rights reserved. Learning OutcomesState the major similarities and differences between the classical and behavioral theorists.Describe how systems theorists and contingency theorists differ from classical and behavioral theorists.Define the following key terms:After studying this appendix, you should be able to:classical theorists systems theoristsbehavioral theoristssociotechnical theoristsmanagement science theorists contingency theorists138Copyright 2006 Thomson Business and Economics. All rights reserved. Classical TheoryClassical TheoristsFocus on the job and management functions to determine the best way to manage in all organizations.Scientific ManagementBest way to maximize job performanceFredrick Winslow TaylorFather of Scientific ManagementFrank and Lillian GilbrethWork efficiencyHenry GanttWork scheduling139Copyright 2006 Thomson Business and Economics. All rights reserved. Classical Theory (contd)Administrative TheoryHenri FayolFather of Modern ManagementPrinciples and functions of managementMax WeberBureaucracy conceptChester BarnardAuthority and power in organizationsMary Parker FollettWorker participation, conflict resolution, and shared goals140Copyright 2006 Thomson Business and Economics. All rights reserved. Behavioral TheoryBehavioral TheoristsFocus on people to determine the best way to manage in all organizations.Human Relations Movement (later, the Behavioral Science Approach)Elton MayoHawthorne studiesAbraham MaslowHierarchy of needs theoryDouglas McGregorTheory X and Theory Y141Copyright 2006 Thomson Business and Economics. All rights reserved. Management ScienceManagement Science TheoristsFocus on the use of mathematics to aid in problem solving and decision making.Mathematical models are used in the areas of finance, management information systems (MIS), and operations management.142Copyright 2006 Thomson Business and Economics. All rights reserved. Integrative TheoriesSystems TheoryFocuses on viewing the organization as a whole and as the interrelationship of its parts (subsystems).Sociotechnical TheoryFocuses on integrating people and technology.Contingency TheoryFocuses on determining the best management approach for a given situation.143Copyright 2006 Thomson Business and Economics. All rights reserved. Comparing TheoriesClassicalBehavioralManagement ScienceSystems TheoryAttempts to develop the best way to manage in all organizations by focusing on the jobs and structure of the firm.Attempts to develop a single best way to manage in all organizations by focusing on people and making them productive.Recommends using math (computers) to aid in problem solving and decision making.Manages by focusing on the organization as a whole and the interrelationship of its departments, rather than on individual parts.Sociotechnical TheoryRecommends focusing on the integration of people and technology. Contingency TheoryRecommends using the theory or the combination of theories thatbest meets the given situation.Exhibit AP12144Copyright 2006 Thomson Business and Economics. All rights reserved. Ideas on Management at GapWhat resources does Gap use to sell its merchandise?What management functions are performed at Gap stores?What levels and types of managers have careers at Gap?How does Gap meet new workplace issues and challenges?