Introduction to Management and Organization

Introduction to Management and Organization

Functional Areas of Business R&D Marketing Finance Production HR

Functional Area of Business R&D Research & Development › New product design and development

Functional Area of Business Marketing › Planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

Functional Area of Business Finance › Revenue, expenses, budget, financial records and financial statements

Functional Area of Business Production › Extraction and cultivation (products are obtained from nature or grown using natural resources) › Processing (changing and improving the form of another product) › Manufacturing (combines raw materials and processes goods into finished products)

Functional Area of Business HR Human Resources › People who work for a business/organization › Involves in planning & staffing, performance management, compensation & benefits, and employee relations

Manager ?

Who managers are? Someone who coordinates and oversees the work of other people in order to accomplish organizational goals.

How many level of managers can we classify?

How to classify managers in organizations? Traditional Pyramid Form of Management Level Top Managers Middle Managers First-Line Manager Non-Managerial Employees Functional Areas R&D Marketing Finance Production HR

I. Lowest Level of Management First-line managers: manage the work of nonmanagerial employees who typically are involve with producing the organization’s products or servicing the organization’s customer They are often called: supervisor, shift manager, district manager, department manager, office manager

II. Middle Level of Management Middle managers: manage work of first-line managers They are often called: regional manager, project leader, store manager, division manager

III. Upper Level of Management Top managers: are responsible for making organizationwide decisions and establishing the plans and goals that affect the entire organization. They are often called: executive vice president, president, managing director, chief operating officer, chief executive officer

What is Management? Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. Or Management is the art of getting work done through others

2 Important Words for Management: Efficiency and Effectiveness

Efficiency Effectiveness Efficiency and Effectiveness Efficiency getting the most output from the least amount of inputs “doing things right” concern with means(ways) of getting things done Effectiveness do those work activities that will help the organization reach its goals “doing the right things” concern with ends(result) of organizational goal achievement

Or

Efficiency getting work done with a minimum effort, expense, or waste (use resources – people, money, raw materials– wisely and cost-effectively) Efficiency Effectiveness Efficiency and Effectiveness Effectiveness accomplish tasks that help fulfill organizational objectives (make the right decisions and successfully carry them out to accomplish the org. goal)

Efficiency and Effectiveness in Management Efficiency (Means) Effectiveness (Ends) Resource Usage Goal Attainmen t Low Waste High Attainment Management Strives for: Low Resource Waste (high efficiency) High Goal Attainment (high effectiveness)

Management Functions PLANNING ORGANIZIN G MANAGE R LEADING CONTROLLIN G

1. PLANNING Define goals Establish strategies for achieving those goals Develop plans to integrate and coordinate activities Setting goals and plans (how to achieve them)

2. ORGANIZING Determine › › › › › What tasks are to be done ? Who is to do them ? How tasks are to be grouped ? Who reports to whom ? Where decisions are to be made ? Arrange tasks and other resources to accomplish organization’s goals

3. LEADING Motivate subordinates(lower positions) Help resolve group conflicts Influence individuals or teams as they work Select the most effective communication channel Deal with employee behavior issues Hire, train, motivate(lead) people

4. CONTROLLING Monitor activities’ performance Compare actual performance with the set goals Evaluate activities’ performance whether things are going as planed Correct any disturbance to get work back on track and achieve the set goals Ensure all activities are accomplished as planned

Homework: “Master Manager” (Individual) Using current business periodicals (Wall Street Journal, Financial Times, Fortune, The Economist, Forbes, etc.), find 1 example of manager you would describe as master managers. Write a paper describing the individual as manager and why you feel he/she deserve this title. Due: next class

Area of Management: Functional Managers V.S. General Managers

Area of Management: Functional Manager is responsible for just 1 organizational activity General Manager is responsible for several organizational activities

Managers for 3 Types of Organizations 1. 2. 3. For-Profit Organizations: For making money, or profits, by offering products or services Nonprofit Organizations: For offering services in either public sector or private sector such as hospitals, colleges, socialwelfare agencies Mutual-Benefit Organizations: For aiding members such as farm cooperatives, labor unions, trade associations, and clubs

Do managers manage differently for different types of organizations?

Management for different types of organizations DIFFERENCE SAME 4 management functions— planning, organizing, leading, and controlling– are needed for all types Measurement of success For-profit: how much profit (or loss) it generate Nonprofit & Mutual-benefit: effectiveness of services delivered

Management Roles

Management Roles Specific actions or behaviors expected of a manager 3 types of managerial roles: › Interpersonal › Informational › decisional

Mintzberg’s Managerial Roles Interpersonal Roles: involve people (subordinates and person outside the organization) and other duties that are ceremonial and symbolic in nature Informational Roles: involve collecting, receiving, and disseminating information Decisional Roles: entail making decisions or choices

Mintzberg groups managerial activities and roles as involving: Managerial activities Associated roles interpersonal roles: arising from formal figurehead authority and status and liaison supporting the information leader and decision activities. Informational roles monitor disseminator spokesman improver/changer (entrepreneur) decisional roles: making disturbance handler significant decisions resource allocator negotiator http://www.bola.biz/mintzberg/mintzberg2.html

1. Interpersonal Roles Figurehead: perform ceremonial duties like greeting company visitors, speaking at the opening of a new facility, or representing the company at a community luncheon to support local charities

1. Interpersonal Roles (Cont) Leader: motivate and encourage workers to accomplish organizational objectives Liaison: deal with people outside their units to develop alliances that will help in org. goal achievement

2. Informational Roles Monitor: scan environment for information, actively contact others for information, continually update news/ stories related to their business (inside and outside org.) Disseminator: share the information they have collected with their subordinates and others in the company

2. Informational Roles (Cont) Spokeperson: share information with people outside their departments and companies

3. Decisional Roles Entrepreneur: adapt themselves, their subordinates, and their units to change/ innovation Disturbance Handler: respond to pressures and problems demand immediate attention and action

3. Decisional Roles (Cont) Resource Allocator: set priorities and decide about use of resources Negotiator: continual negotiate schedules, projects, goals, outcomes, resources, and employee raises in order to accomplish the goals

Management Skills ?

Management Skills Technical Skills: job-specific knowledge and techniques needed to proficiently perform work tasks Human Skills: ability to work well with other people both individually and in group Conceptual Skills: ability to see the organization as a whole, understand the relationships among various subunits, visualize how the organization fits into its external environment

Skills Needed at Different Managerial Levels Top Managers Middle Managers Conceptu al Skills Human Skills Low-Level Managers *Dark color necessary to have Technical Skills

Why Study Management?

Why Study Management? The universality of management The reality that management is needed in all types, sizes, level, areas of organizations. The reality of work You will either manage or be managed in your future career

Why Study Management? Rewards and challenges of being a manager Rewards Create work environment where org. members can work to the best of their ability Challenges Do hard work Have opportunity to think creatively May have duties that are more & use imagination clerical than managerial Help others find meaning & fulfillment in work Have to deal with a variety of personalities Support, coach, and nurture others Often have to deal with limited resources Work with variety of people Motivate workers in chaotic and uncertain situations Receive recognition & status in org. and community Blend knowledge, skills, ambitions, and experiences of a diverse