Chap 1 MGT 162

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  • 1.Topic 1 Management and Managers: Yesterday, Today, and Tomorrow

2. The process of administering and coordinating resources effectively and efficiently in an effort to achieve the goals of the organization. Management Defined 3. 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 3 4. 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 5. Elements in Stoners definition Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 5 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 6. 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 7. What Do All Organizations Have in Common? Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 7 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. 8. 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 Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 8 9. 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. 10. 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. 11. PlanningPlanningPlanningPlanning ControllingControllingControllingControlling OrganizingOrganizingOrganizingOrganizing LeadingLeadingLeadingLeading OrganizationalOrganizational goalsgoals The Four Functions of Management Slide 1 of 3 12. The Four Functions of Management 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. 13. The Four Functions of Management 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. 14. 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 Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 14 15. 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 Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 15 16. 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 power Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 16 17. 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 Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 17 18. 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 18 19. 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 Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 19 20. 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 Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 20 21. Managerial performance A measure of how well managers are doing their jobs. Managerial performance can be measured using two factors : A) Efficiency B) Effectiveness Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 21 22. 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 Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 22 23. 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. Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 23 24. 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. 24 25. Managers Managers are the people who plan, organize, lead, and control the activities of the organization so that its goals can be achieved. 26. 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. Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 26 27. 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 manager Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 27 28. Functional Manager Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 28 Chief ExecutiveChief Executive General Parts Inc.General Parts Inc. Chief ExecutiveChief Executive General Parts Inc.General Parts Inc. PlantPlant ManagerManager PlantPlant ManagerManager ServiceService ManagerManager ServiceService ManagerManager AccountAccount ManagerManager AccountAccount ManagerManager PayrollPayroll ManagerManager PayrollPayroll ManagerManager A functional manager is a manager responsible for a work group segmented by function. VP ofVP of ProductionProduction VP ofVP of ProductionProduction VP ofVP of FinanceFinance VP ofVP of FinanceFinance 29. General Manager Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 29 General ManagerGeneral Manager Supermarket, Inc.Supermarket, Inc. General ManagerGeneral Manager Supermarket, Inc.Supermarket, Inc. ProduceProduce ManagerManager ProduceProduce ManagerManager BakeryBakery ManagerManager BakeryBakery ManagerManager GroceryGrocery ManagerManager GroceryGrocery ManagerManager A general manager is a manager responsible for several different work groups segmented by task. 30. Top Managers Composed of a comparatively small group of people Also called executives They are planners Typical titles: C.E.O , President, vice president Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 30 31. 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 Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning 31 32. 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. Chap. 15 Marketing 7e Lamb Hair McDaniel 2004 South-Western/T