This chapter discusses the nature of management and the manager's job. It defines management as a set of activities including planning, organizing, leading and controlling organizational resources to achieve goals efficiently and effectively. It describes the four main management functions and different types of managers based on their level and area in the organization. The chapter also outlines managerial roles, skills, and how management involves both science and art. It concludes by discussing paths to becoming a manager and types of organizations.
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Introduction to management, its definition, importance, functions, and an overview of managerial roles.
Definition of organizations as groups working towards goals, and identification of organizational resources.
Management defined as activities directed towards resource organization to achieve goals efficiently and effectively.
Details the steps in the management process: planning, organizing, leading, and controlling activities.
Identifies different management levels: Top, Middle, and First-Line managers with their roles and responsibilities.
Describes specialization among managers such as marketing, finance, operations, human resources, and administration.
Denver's Mintzberg’s managerial roles: interpersonal, informational, and decisional roles detailed with examples.
Outlines critical managerial skills including technical, interpersonal, conceptual, diagnostic, communication, decision-making, and time management.
Overview of how CEOs spend their time across various activities like meetings, desk work, and facility tours.
Explores management as both a science and an art, detailing skills required for each approach.
Describes pathways and skills necessary for becoming a successful manager through education and experience.
Discusses management in various organizational contexts, including for-profit and non-profit sectors.
Learning Objectives Afterstudying this chapter, you should be able to: Describe the nature of management, define management and managers, and characterize their importance. Identify and briefly explain the four basic management functions in organizations. Describe the kinds of managers found at different levels and in different areas of the organization. Identify the basic managerial roles that managers may play and the skills they need to be successful. Discuss the science and the art of management and describe how people become managers. Summarize the scope of management in organizations.
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Chapter Outline TheManagement Process Planning and Decision Making: Determining Courses of Action Organizing: Coordinating Activities and Resources Leading: Motivating and Managing People Controlling: Monitoring and Evaluating Activities Kinds of Managers Managing at Different Levels of the Organization Managing in Different Areas of the Organization Basic Managerial Roles and Skills Managerial Roles Managerial Skills The Nature of Managerial Work The Science and the Art of Management Becoming a Manager The Scope of Management Managing in Profit-Seeking Organizations Managing in Not-for-Profit Organizations
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What is anorganization? A group of people working together in a structured and coordinated fashion to achieve a set of goals.
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Organizational Resources Humanresources Managerial talent and labor Financial resources Capital investments to support ongoing and long-term operations Physical Assets Raw materials; office and production facilities, and equipment Information Usable data, information linkages
What is Management?A set of activities planning 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.
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Management in OrganizationsFigure 1.1 Inputs from the environment • Human resources • Financial resources • Physical resources • Information resources Planning and decision making Leading Organizing Controlling Goals attained • Efficiently • Effectively
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Basic Purpose ofManagement EFFICIENTLY Using resources wisely and in a cost-effective way EFFECTIVELY Making the right decisions and successfully implementing them And
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What is aManager? 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.
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The Management ProcessPlanning and Decision Making Setting an organization’s goals and selecting a course of action from a set of alternatives to achieve them. Organizing Determining how activities and resources are to be grouped. Leading The set of processes used to get members of the organization to work together to advance the interests of the organization. Controlling Monitoring the organization’s progress towards its goals.
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The Management Process(cont’d) Figure 1.2 Organizing Determining how best to group activities and resources Controlling Monitoring and correcting ongoing activities to facilitate goal attainment Planning and Decision Making Setting the organiza- tion ’ s goals and deciding how best to achieve them Leading Motivating members of the organization to work in the best interests of the organization
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Kinds of Managersby Level Top Managers The relatively small group of executives who manage the overall organization. They create the organization’s goals, overall strategy, and operating policies. Middle Managers Largest group of managers in organizations who are primarily responsible for implementing the policies and plans of top managers. They also supervise and coordinate the activities of lower level managers. First-Line Managers Managers who supervise and coordinate the activities of operating employees.
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Kinds of Managersby Area Marketing Managers Work in areas related to getting consumers and clients to buy the organization’s products or services—new product development, promotion, and distribution. Financial Managers Deal primarily with an organization’s financial resources—accounting, cash management, and investments. Operations Managers Concerned with creating and managing the systems that create organization’s products and services—production control, inventory, quality control, plant layout, site selection.
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Kinds of Managersby Area (cont’d) Human Resource Managers Involved in human resource planning, recruiting and selecting employees, training and development, designing compensation and benefit systems, formulating performance appraisal systems, and discharging low-performing employees. Administrative Managers Generalists who are familiar with all functional areas of management and who are not associated with any particular management specialty. Other Kinds of Managers Organizations have developed specialized managerial positions (e.g., public relations managers) directly related to the needs of the organization.
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Kinds of Managersby Level and Area Figure 1.3 Marketing Administration Other Human resources Operations Finance Middle managers Areas of Management Levels of Management First-line managers Top managers
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Managerial Roles (Mintzberg)Interpersonal Roles Figurehead, leader, and liaison roles involve dealing with other people. Informational Roles Monitor, disseminator, 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.
Managerial Skills TechnicalSkills necessary to accomplish or understand the specific kind of work being done in an organization. Interpersonal The ability to communicate with, understand, and motivate both individuals and groups. Conceptual The manager’s ability to think in the abstract. Diagnostic The manager’s ability to visualize the most appropriate response to a situation.
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Managerial Skills (cont’d)Communication The manager’s abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others. Decision-Making The manager’s ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities. Time-Management The manager’s ability to prioritize work, to work efficiently, and to delegate appropriately.
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The Nature ofManagerial Work How CEOs spend a typical day — Unscheduled Scheduled Meetings 59% Desk Work 22% Meetings 10% Telephone 6% Touring Facilities 3%
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Management: Science orArt? Science of Management Assumes 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 Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights. Requires the use of conceptual, communication, interpersonal, and time-management skills to successfully accomplish the tasks associated with managerial activities.
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Becoming a ManagerSources of Management Skills Figure 1.4 Sound educational base; continued life-long educational experiences Successful acquisition and utilization of basic management skills Initial job experiences; continued experiences through a variety of job assignments
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Managing in OrganizationsFor-profit Organizations Large businesses Industrial firms, commercial banks, insurance companies, retailers, transportation companies, utilities, communication companies, service organizations Small businesses and start-up businesses International management Not-for-profit Organizations Governmental organizations—local, state, and federal Educational organizations—public and private schools, colleges, and universities Healthcare facilities—public hospitals and HMOs Nontraditional settings—community, social, spiritual groups