Chap 1 MGT 162

Topic 1Topic 1

Management and Managers:Yesterday, Today, and Tomorrow

Management and Managers:Yesterday, Today, and Tomorrow

The process of administering and coordinating resources effectively and efficiently in an effort to achieve the

goals of the organization.

Management Defined

Why management is considered as an art?

• Management must posses vision• Management must use judgemental skill• Management is influenced by contingency

factors• However not all management authors agree

that mgt is an art.Some consider management as a science.In fact most management authors consider mgt as both an art and a science.

Chap. 15 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning

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James Stoner Definition of management

• Management is a process of planning, organizing, leading and controlling the effort of the organizational members and using all other resources in order to achieve the organizational goals efficiently and effectively.

4Chap. 15 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning

Elements in Stoner’s definition


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• 1.Management is a process• 2.Management must use all

organizational resources• 3.Management must establish

goals• 4.management must be both

efficient and effective

Management is a process of administering and coordinating resources efficiently and effectively to achieve the organizational goals.

( Lewis and others)

An organization consists of two or more people working together towards accomplishing common goals.

6Chap. 15 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning

What Do All Organizations Have in Common?


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They are made up of people, and the efforts of these people must be

coordinated if the organization is to accomplish its goals.

MANAGERS!

Managers are the people who plan, organize, lead, and control the activities of the

organization so that its goals can be achieved.

Why organizations are needed• 1. Serve the society• 2. Accomplish objectives• 3. Preserve knowledge• 4. Provide careers

Explain management in terms of:

• A) The management process• b) Managerial responsibility


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Effectiveness vs. Efficiency

Effectiveness is achieved when the organization pursues appropriate goals. This means “doing the right thing.”

Efficiency is achieved by using fewer inputs (e.g., people, money) to generate a given output. This means “doing things right.”

What Is An Organization?An organization is a group of individuals

who work together toward common goals.

What Do All Organizations Have in Common?

They are made up of people, and the efforts of these people must be coordinated if the

organization is to accomplish its goals.

PlanningPlanningPlanningPlanning

ControllingControllingControllingControlling

OrganizingOrganizingOrganizingOrganizing

LeadingLeadingLeadingLeading

OrganizationalOrganizationalgoalsgoals

The Four Functions of Management

Slide 1 of 3


Slide 2 of 3

• 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.


Slide 3 of 3• Leading– Motivating and directing the members of the

organization so that they contribute to the achievement of the goals of the organization.

• Controlling– Monitoring the performance of the

organization, identifying deviations between planned and actual results, and taking corrective action when necessary.

Planning• A process of establishing objectives and

designing strategies to achieve the objectives.

Steps in planning• 1. Establishing goals• 2. Define the present situations.• 3. Determine aids and barriers• 4. Developing action programs


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Organizing• A process of arranging and allocating works and

authority.• A process of determining what is to be done, who is

responsible and how the tasks will be managed and coordinated.

Steps in organizing• 1.Detailing of work• 2.Division of work• 3.Aggregation of work• 4.Coordination of work• 5.Review of performance


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Leadership• A process of influencing and directing other

people to perform organizational tasks.

Elements in leadership• 1. Leadership involves other people• 2.Leadership involves unequal distribution of

power• 3.Leaders may influence others using different

sources of powerChap. 15 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning

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Controlling• A process managers ensure that actual

activities conform with planned objectives

Steps in the control process• 1.Establishing standards• 2.Measure actual performance• 3.Compare actual with standards• 4.Take corrective actions


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Managerial Responsibilities• 1.Work with and through others• 2.Act as a communication channel• 3. Responsible and accountable• 4. Balance competing needs• 5.Think analytically and conceptually• 6.Managers as politician• 7.Managers as diplomat• 8.Managers as symbols• 9.Make difficult decisions• 10.Managers as mediators

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The role of time

• 1.Time provide the context for studying mgt• 2.Mgt is a process of building the

future using the present and the past• 3.Mgt is practice and reflective of a

particular era


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The role of human relationship

• Mgt is a two-way process• Mgt action affects other people• Mgt must juggle multiple

relationship at the same time


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Managerial performance

• A measure of how well managers are doing their jobs.

• Managerial performance can be measured using two factors :

• A) Efficiency• B) Effectiveness


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Efficiency

• Is an input-output concept• managers ability to reduce costs,

materials and saves time• e.g Perodua is considered as efficient

because it is able to produce lower cost auto• doing things right


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Effectiveness

• Doing the right things• ability to achieve target or goals• e.g a salesman is considered as

effective if he is able to achieve his sales quota.


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Factors contributing towards excellent in management

• 1.Bias for action• 2.Staying close to the customer• 3.Autonomy and entrepreneurship• 4.Productivity through people• 5.Hands on value driven• 6.Stick to the knitting• 7.Simple form lean staff• 8.Simultaneous loose tight properties.

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Managers

Managers are the people who plan, organize, lead, and control the

activities of the organization so that its goals can be achieved.

The Classification of managers

• Managers can be classified in two ways :• I) According to the scope of activities :

General manager and Functional manager • II) According to the level in the organizational

hierachy : Top manager, middle manager and first line manager.


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Functional Managers

• Responsible for only one functional area such as marketing, production or finance.

General Managers• Oversees a complex unit such as a company, a

subsidiary or an operating division• Responsible for all activities of that unit e.g a

plant manager, a supermarket managerChap. 15 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning

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Functional Manager


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Chief Executive Chief Executive General Parts Inc.General Parts Inc.Chief Executive Chief Executive

General Parts Inc.General Parts Inc.

Plant Plant ManagerManager

Plant Plant ManagerManager

Service Service ManagerManagerService Service

ManagerManagerAccount Account ManagerManagerAccount Account ManagerManager

Payroll Payroll ManagerManagerPayroll Payroll

ManagerManager

A functional manager is a manager responsible for a work group

segmented by function.

VP of VP of ProductionProduction

VP of VP of ProductionProduction

VP of VP of FinanceFinanceVP of VP of

FinanceFinance

General Manager


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General Manager General Manager Supermarket, Inc.Supermarket, Inc.General Manager General Manager Supermarket, Inc.Supermarket, Inc.

Produce Produce ManagerManagerProduce Produce ManagerManager

Bakery Bakery ManagerManagerBakery Bakery

ManagerManagerGrocery Grocery ManagerManagerGrocery Grocery ManagerManager

A general manager is a manager responsible for several different work

groups segmented by task.

Top Managers

• Composed of a comparatively small group of people• Also called “executives”• They are “planners”• Typical titles: C.E.O , President, vice

president


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Middle Managers

• Can include more than one level• Direct the activities of lower level managers

and sometimes those of operating workers as well

• Principles activities are : A) Direct activities that implement the organization objectives

• B) Balance the demands of their superiors with the capacities of their employees


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First-Line Managers

• The lowest mgt level• Direct non mgt employees• Do not supervise other manager• E.g Foremen, supervisor, a school

principle and the manager of a football team.


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Management Skills (Robert Kartz)

1.Technical Skill• The ability to use the procedure

techniques and knowledge of a specialized field.• E.g surgeons and engineers have

technical skills in their respective fields.


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2. Human Skills• The ability to work with, understand and

motivate other people.

3. Conceptual skills• The ability to coordinate and integrate all of

an org.interest and activities.• Involves seeing the organization as a whole or

in totality


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Skills Needed at DifferentLevels of Management

Slide 1 of 3


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First-lineFirst-lineManagementManagement

MiddleMiddleManagementManagement

Top-LevelTop-LevelManagementManagement

ConceptualConceptual

HumanHuman

TechnicalTechnical


HumanHuman

TechnicalTechnical


HumanHuman

TechnicalTechnical

Mintzberg’s Managerial RolesSlide 1 of 4


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Decisional rolesDecisional roles

• EntrepreneurEntrepreneur

• Disturbance Disturbance handlerhandler

• Resource allocatorResource allocator

• NegotiatorNegotiator

Decisional rolesDecisional roles

• EntrepreneurEntrepreneur

• Disturbance Disturbance handlerhandler

• Resource allocatorResource allocator

• NegotiatorNegotiator

Interpersonal Interpersonal rolesroles

• FigureheadFigurehead

• LeaderLeader

• LiaisonLiaison

Interpersonal Interpersonal rolesroles

• FigureheadFigurehead

• LeaderLeader

• LiaisonLiaison

Informational Informational rolesroles

• MonitorMonitor

• DisseminatorDisseminator

• SpokespersonSpokesperson

Informational Informational rolesroles

• MonitorMonitor

• DisseminatorDisseminator

• SpokespersonSpokesperson

1.Interpersonal roles• A)Figurehead-a manager performing

ceremonial duties like greeting visitors and entertaining clients.

• B)Leader-Responsible for hiring, training and motivating subordinates

• C) Liaison -a manager establish working relationship both inside and outside the organization


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Informational Roles

• A)Monitor-Checking about market info.and other environmental influences

• B)Disseminator-Distributes info to other employees

• C)Spokesperson-Communicates with people outside the org.


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Decisional Roles

• 1.Entrepreneur• 2.Resource allocator• 3.Disturbance handler• 4.Negotiator


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The Challenges in Management• 1.Globalization-The need to expand operation

overseas• 2.Quality and TQM -The need to improve products

quality• 3.Ethics and social responsibility –The need to do

what is right and contribute to the society• 4.Reengineering-The need to improve operational

efficiency• 5.Empowerment-The need to delegate

responsibilities• 6.Organizational restructuring and consolidation.


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Hyperchange


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A condition of rapid, dramatic, complex, and unpredictable changes that has a significant effect on the ways in which organizations are managed.

Managing in the 21st Century: Organizational Changes


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The Changing The Changing Chief Executive Chief Executive

OfficerOfficer

The Changing The Changing Chief Executive Chief Executive

OfficerOfficer

Increasing Increasing Diversity in the Diversity in the

WorkplaceWorkplace

Increasing Increasing Diversity in the Diversity in the

WorkplaceWorkplace

From Hierarchy From Hierarchy to Self-Managed to Self-Managed

TeamsTeams

From Hierarchy From Hierarchy to Self-Managed to Self-Managed

TeamsTeams

A New A New Organizational Organizational

ModelModel

A New A New Organizational Organizational

ModelModel

The Contemporary ManagerSlide 1 of 2

• The New Manager Profile– Managers will no longer think of themselves as

“the boss,” but will view themselves as sponsors, team leaders, or internal consultants.


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The Contemporary ManagerSlide 2 of 2

• Competencies of Tomorrow’s Managers– The great communicator– The team player– The technology master– The problem solver– The foreign ambassador– The change maker– The 21st-century leader


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Business

Chap 1 MGT 162