Managers and Managing After studying this chapter, you should be able to: Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals, Distinguish among planning, organizing, leading, ND controlling (the four principal managerial functions), and explain how managers’ ability to handle each one can affect organizational performance. Differentiate among three levels tot management, and understand the responsibilities of managers at different levels in the organizational hierarchy.
Identify the roles managers perform, the skills they need to execute those roles effectively and the way new information technology is affecting these roles and skills. Discuss the principal challenges managers face in today’s increasingly competitive global environment. The Management Process Today I. What is management? Management is the planning, organizing, leading and controlling of human and other resources to achieve organizational goals effectively and efficiently. A. Achieving High Performance: A Manager’s Goal 1.
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Organizational performance is the measure of how efficiently and effectively managers use resources to satisfy customers and achieve organizational goals. 2. Efficiency is how well the resources are used, 3. Effectiveness is how well the organization has achieved its goals. B. Why study management? The more efficiently and effectively an organization can use its resources, the more profitable the organization will be. II. Managerial Functions A. Planning – the process of identifying and selecting goals and ways to accomplish these goals. A.
Organizing – establishing a structure tot working relationships used to accomplish the organization’s goals. C. Leading – energize and enabling workers toward the organization’s goals. D. Controlling – evaluating the organization’s performance and taking actions to improve its performance. Ill. Types of Managers A. Levels of management 1. First-line managers (also called supervisors) daily supervise non-managerial employees. 2. Middle managers try to organize resources to achieve organizational goals. . Top managers are responsible for the performance of all departments (i. E. They have cross-departmental responsibility). B. Recent changes in Managerial Hierarchies 4. Restructuring – downsizing the organization by eliminating jobs. 5. Empowerment – expanding employee’s knowledge. Tasks, and responsibilities. 6. Self. Managed teams . Groups given responsibility for supervising their own activities and monitoring the quality of the goods and services they provide. IV. Managerial Roles and Skills – a role is a set of tasks a manager is expected to perform based on that manager’s position in the organization. A. Managerial roles identified by Integers 1.
Decisional roles a. Entrepreneur – developing innovative goods and services or expanding markets b. Disturbance handler – dealing with both internal and external crises of the organization c. Resource locator – sets budgets d. Negotiator – works with other organizations to establish agreements 2. Informational roles a. Monitor – evaluates managers and takes corrective action b. Disseminated – informs workers about changes in the internal and external environment c. Spokesperson – informs the local community about the organization’s activities 3. Interpersonal roles a.
Figurehead – explains the organization’s goals to employees b. Leader – provides an example for employees to follow Liaison – coordinates the work Of managers in different departments B. Being a Manager – managers learn both from their successes and their failures C. Managerial Skills 4. Conceptual skills – analyzing and diagnosing a situation 5. Human skills – understanding, leading, and controlling the behavior of individuals and groups 6. Technical skills – job-specific knowledge and techniques V. Challenges for Management in a Global Environment A. Building a competitive advantage 1.
Increasing efficiency – reducing the resources needed to produce goods 2. Increasing quality – total quality management (TTS) 3. Increasing speed, flexibility, and innovation B. Maintaining ethical standards – avoiding bribes and other unethical behavior Managing a diverse workforce – treating employees in a Atari and equitable manner that does not discriminate based on age, gender, race, religion, sexual preference, or income level. WHAT IS MANAGEMENT? A manager is a person responsible for supervising the use of an organization’s resources to meet goals.
An organization is a collection of people who work together and coordinate their actions to achieve a wide variety of goals Management is the process of using organizational resources to achieve organizational goals effectively and efficiently through planning, organizing, leading, and controlling. An efficient organization makes the most productive use of its resources. An effective organization pursues appropriate goals and achieves these goals by using its resources to create the goods or services that customers want.
MANAGERIAL APPLICATIONS The four principal managerial functions are planning, organizing, eating, and controlling. Managers at all levels of the organization and in all departments perform these functions. Effective management means managing these activities successfully. TYPES OF MANAGERS Organizations typically have three levels Of management. First-line managers are responsible for the day-to- day supervision of managerial employees. Middle managers are responsible for developing and utilizing organizational resources efficiently and effectively. Top managers have cross-departmental responsibility.
The top managers’ job is to establish appropriate goals for the entire organization and to verify that apartment managers are utilizing resources to achieve those goals, To increase efficiency and effectiveness, some organizations have altered their managerial hierarchies by restructuring, why empowering their workforces, utilizing self- managed teams, and utilizing new information technology. IT AND MANAGERIAL ROLES AND SKILLS According to Integers, managers play 10 different roles: figurehead, leader, liaison, monitor, disseminated, spokesperson, entrepreneur, disturbance handler, resource locator, and negotiator.
Three types of skills help managers perform these roles effectively: conceptual, human, and technical kills IT is changing both the way managers perform their roles and the skills they need to perform these roles because it provides richer and more meaningful information. CHALLENGES POOR MANAGEMENT IN A GLOBAL ENVIRONMENT Today’s competitive global environment presents many interesting challenges to managers: to build a competitive advantage by increasing efficiency; quality; speed, flexibility, and innovation; and customer responsiveness.
To behave ethically toward people inside and outside the organization; to manage a diverse workforce; and to utilize new information systems and technologies. Chapter 2: The Evolution Of Management Theory Describe how the need to increase organizational efficiency and effectiveness has guided the evolution of management theory. Explain the principle of job specialization and division of labor, and tell why the study of person- task relationships is central to the pursuit of increased efficiency. Identity the principles of administration and organization that underlie effective organizations.
Trace the changes in theories about how managers should behave to motivate and control employees. Explain the contributions of management science to the efficient use of organizational resources. Explain why the study of the external environment and its impact on an organization has become a central issue in management thought. L. Scientific Management Theory A. Job Specialization and the Division of Labor – job specialization creates a division of labor by having provokers specialize in different tasks B. Taylor and Scientific Management – F. W. Taylor defined scientific management to redesign tasks to increase efficiency.
He defined four principles to increase efficiency: 1. Study the way workers perform their tasks. 2. Codify the new methods of performing tasks into written rules and standard operation procedures (SOPs). 3. Carefully select workers so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures. 4. Establish a fair and acceptable level Of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level. C.
The Gilbert’s – Frank and Lillian Gilberts filmed workers performing tasks to try to maximize efficiency to save time and effort. II. Administrative Management Theory. The study of how to create an organizational structure (i. E. , the system f task and authority relationships that control how workers use resources) that is highly efficient and highly effective. A. The Theory of Bureaucracy ; Max Weber defined a bureaucratic system based on five principles: 1, A manager’s authority (the power to hold people accountable for their actions) is derived from the position he or she holds in the organization. 2.
People should occupy positions because of their performance ability. 3. The extent tot each person’s authority and task responsibilities should be specified. 4. Positions should he arranged hierarchically so that workers know to whom they report and also who reports o them, S, Managers must create a system of rules (formal written instructions that specify what to do and when to do standard operating procedures (brittle instructions specifying how to perform a task), and norms (unwritten, informal codes of conduct that describe how provokers should act in specific situations B. Payola’s 14 Principles of Management 1.
Division of labor -job specialization should increase efficiency 2. Authority and responsibility – managers have the right to give orders and to expect obedience from subordinates 3. Unity of command – A worker should receive orders from only one superior 4. Line Of authority – the number Of people in the “chain Of command” from the top to the bottom of the organization should be limited 5. Centralization – authority should not be concentrated at the top management level 6. Unity of direction – the organization should have one plan of action to guide workers 7. Equity. All workers should be treated with justice and respect 8.
Order – positions should be arranged to maximize efficiency and to provide workers with satisfying career opportunities 9. Initiative . Managers should allow workers to he innovative and creative 10, Discipline – managers should rate a workforce that strives to attain organizational goals 11. Remuneration of personnel – workers should he rewarded equitably 12, Stability of tenure of personnel – long-term workers develop skills that can improve efficiency 13, Subordination of individual interests to the common interest – workers should understand how their performance affects the organization 14.
Esprit De corps – managers should encourage comradeship and enthusiasm Ill. Behavioral Management Theory – the study of how managers should behave to motivate workers to perform at high levels. A. The Work of Mary parker Pollute – argued that workers should be included in job analysis (the human side of the organizational B The Hawthorne Studies and Human Relations – researchers found that both increased and decreased levels of illumination increased provoker productivity and called this phenomenon: “the Hawthorne effect,” C.
Theory X and Theory Y of Douglas McGregor I _ Theory X assumes that workers are lazy, dislike work, and will try to do as little as possible. 2. Theory Y assumes that the work setting determines how workers feel about their jobs. IV. Management Science Theory – uses quantitative quenches (quantitative management, operations management, and total quality management) to maximize resources V. Organizational Environment Theory – forces that operate outside of the organization that affect a managers ability to acquire and use resources.
A. The Open-systems View – an open system takes resources from the external environment and transforms them into goods that are then sent back to that environment where they are purchased by customers 1. Input stage – organization acquires resources (raw materials, money, workers) 2. Conversion stage . Workforce transforms inputs into outputs of finished goods 3. Output state – organization releases finished goods to the external environment B.
Contingency Theory – there is no one best way to organize Mechanistic and Organic Structures – mechanistic structures (authority is centralized at the top tooth organization) make sense when the environment is stable, while organic structures (authority is decentralized to lower-level managers to encourage quick action) make sense when the environment is changing rapidly. SCIENTIFIC MANAGEMENT THEORY The search for efficiency started with the study of how managers could improve person-task relationships to increase efficiency.
The concept of job specialization and division of labor remains the basis for the design of work settings in modern organizations. New developments such as lean production and total quality management are often viewed as advances on the early scientific management principles developed by Taylor and the Gilbert’s_ ADMINISTRATIVE MANAGEMENT THEORY Max Weber and Henry Payola outlined principles of bureaucracy and administration that are as relevant to managers today as when they were written at the turn of the twentieth century. Much of modern management research refines these principles to suit contemporary notations.
For example, the increasing interest in the use of cross. Departmental teams and the empowerment of workers are issues that managers also faced a century ago. BEHAVIORAL MANAGEMENT THEORY Researchers have described many different approaches to managerial behavior, including Theories X and Y. Often, the managerial behavior researchers suggest reflects the context tot their own historical era and culture. Mary Parker Foulest advocated managerial behaviors that did not reflect accepted modes of managerial behavior at the time, but her work was largely ignored until conditions changed,
MANAGEMENT SIC ONCE THEORY The various branches of management science theory provide rigorous quantitative techniques that give managers more control over each organization’s use of resources to produce goods and services. ORGANIZATIONAL ENVIRONMENT THEORY The importance of studying the organization’s external environment became clear after the development of open-systems theory and contingency theory during the sass. A main focus of contemporary management research is to find methods to help managers improve the ways they utilize organizational resources and compete successfully in the global environment.
Strategic management and total quality management are two important approaches intended to help managers make better use Of organizational resources. Chapter 3: Attitudes, Values, Ethics, and Culture: The Manager as a Person After studying this chapter, you should be able to: Describe the various personality traits that affect how managers think, feel, and behave, Explain what values, attitudes, and moods and emotions are and describe their impact on managerial action. Illustrate how ethics help managers determine the right or proper way to behave when dealing with different stakeholder groups.
Define organizational culture and explain the role managers play in creating it. Explain why managers should strive to create ethical organizational cultures. L. Enduring Characteristics: Personality Traits personality traits are tendencies to feel, think, and act in certain ways. A. The Big Five Personality Traits I _ Extroversion – the tendency to experience positive emotions and moods and to feel good about oneself. 2. Negative affectively – the tendency to experience negative emotions and moods. 3.
Agreeableness – the tendency to get along well with others. 4. Conscientiousness – the tendency to be careful and persevering. . Openness to experience – the tendency to be original and to take risks. B. Other personality traits that affect managerial behavior 1. Locus of control a. Internal locus – people Who believe that they are responsible for their own fate b. External locus – people who believe that outside forces are responsible for What happens to them 2. Self-esteem – the degree to Which the person feels good about himself and his abilities 3.
Need for achievement – the desire to perform challenging tasks well 4. Need for affiliation . Concern for good interpersonal relations and being liked 5. Need for power – desire to control others II. Values, Attitudes, and Moods and Emotions A. Values: Terminal and Instrumental 1. Terminal value – a personal conviction about lifelong goals 2. Instrumental value -a personal conviction about desired ways to behave B, Attitudes – a collection of feelings and beliefs I Josh satisfaction – feelings and beliefs that managers have about their current jobs 2.
Organizational commitment – feelings and beliefs managers have about their organization C, Moods and emotions 1. Mood – a feeling or state of mind 2. Emotions – more intense feelings linked to whatever caused the feelings 3, Emotional intelligence – the ability to understand one’s own emotions and the emotions of others Ill. Ethics and Stakeholders Ethics are moral principles about what is right or wrong. Stakeholders include shareholders, managers, customers, suppliers that have an interest in the organization. A. What behaviors are ethical?
B. Why should managers behave ethically? C. Sources of an organization’s code of ethics I _ Societal ethics – standards that govern how people in a society deal With one another 2. Professional ethics – standards that govern the members off profession in terms Of how they should behave 3. Individual ethics – personal aloes and attitudes that govern how individuals interact with others IV. Organizational culture – the shared values, norms, standards Of behavior, and expectations that influence the ways in which people interact with each other.
A How managers influence organizational culture B. Schneider attraction-selection-attrition framework – founders of new companies tend to hire employees with similar personalities C. Ethical organizational cultures D. Social responsibility PERSONALITY TRAITS Personality traits are enduring tendencies to feel, think. And act in certain ways. The Big Five general traits are extroversion, negative festivity, agreeableness, conscientiousness, and openness to experience.
Other personality traits that affect managerial behavior are locus of control, self- esteem, and the needs for achievement, affiliation, and power. VALUES, ATTITUDES, AND MOODS AND EMOTIONS A terminal value is a personal conviction about lifelong goals or objectives; an instrumental value is a personal conviction about modes of conduct. Terminal and instrumental values have an impact on what managers try to achieve in their organization and the kinds of behaviors they engage in. An attitude is a collection of feelings and beliefs.
Two attitudes important for understanding managerial behaviors include job satisfaction (the collection Of feelings and beliefs that managers have about their jobs) and organizational commitment (the collection of feelings and beliefs that managers have about their organization). A mood is a feeling or State Of mind; emotions are more intense feelings. Managers’ moods, or how they feel at work on a day-to-day basis, have the potential to impact not only their own behavior and effectiveness but also their subordinates. Emotional intelligence is ability to understand and manage one’s own and other people’s moods and emotions.
ETHICS AND STAKEHOLDERS Ethics are moral principles or beliefs about what is right or wrong. These beliefs guide people in their dealings with other individuals and groups (stakeholders) and provide a basis for deciding whether behavior is right and proper, Many organizations have a formal code of ethics derived primarily trot societal ethics, professional ethics, and the individual ethics of the organization’s top managers, Managers can apply ethical standards to help themselves decide on the properly to behave toward organizational stakeholders.
ORGANIZATIONAL CULTURE Organizational culture is the set of values, norms, tankards for behavior, and shared expectations that influence the ways in which individuals, groups, and teams interact with each other and cooperate to achieve organizational goals. Founders of new organizations and managers play an important role in creating and maintaining organizational cultures. Ethical organizational cultures are those in which ethical values and norms are emphasized.
Ethical Organizational cultures can help organizations and their members behave in a socially responsible manner. Chapter 4: Managing Diverse Employees in a Diverse Environment After studying this chapter, you should be able to: Appreciate the increasing diversity of the workforce and of the organization environment. Grasp the central role that managers play in the effective management of diversity. Understand why the effective management of diversity is both an ethical and a business imperative.
Appreciate how perception and the use of schemas can result in unfair treatment, Appreciate the steps managers can take effectively manage diversity. Understand the major forms of sexual harassment and how they can be eliminated. L. The Increasing Diversity of the Workforce and the Environment Diversity raters to preferences among people due to age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities.
A Age – according to the 2000 Census, the average age of a person in the US is just over AS years, Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967 are the two major federal laws that prohibit age discrimination, B, Gender – About 54 percent of the US workforce is male and 46 percent is female. Women make up about half of the managerial and professional positions C. Race and ethnicity – ethnicity refers to vetches or not a person is Hispanic. According to the 2000 Census, about Of the SIS population was white, 13% were African-Americans, 13% were Hispanic, and 4% were Asian.
D. Religion – Title VII Of the Civil Rights Act prohibits discrimination based on religion. E Capabilities/Disabilities – The Americans with Disabilities Act of 1990 prohibits discrimination against people With disabilities. F. Socioeconomic background – a combination of social class factors and income factors. G. Sexual orientation – there is no federal law prohibiting discrimination based on sexual orientation, but at least eleven states have such laws, and the number will most likely increase. II. Managers and the Effective Management of Diversity A.
Critical managerial roles – interpersonal (figurehead, leader, liaison), informational (monitor, disseminated, spokesperson), and decisional (entrepreneur, disturbance handler, resource locator, and negotiator), B, The ethical imperative to manage diversity effectively – managing diversity effectively makes good business sense and it is also an ethical imperative in the US, 1, Distributive justice – the distribution tot pay raises, promotions, job titles, job assignments, and office space among employees in a fair way, 2, procedural justice – requires managers to use fair procedures in determining ways to distribute outcomes to employees, C, Effectively managing diversity makes good business sense – diversity can be a source of competitive advantage to an organization. Ill.
Perception Perception refers to an individual’s interpretation of a situation and his response to it, It is the process by which people select, organize, and interpret sensory input (what they see, hear, touch, smell, and taste) to give meaning to the world around them. A. Factors that influence managerial perception 1. Schemas – abstract knowledge structures stored in memory that allow people o organize and interpret information about a person, event, or a situation. 2. Gender schemas – preconceived notions about the nature of men and women. B. Perception as a determinant Of unfair treatment 1. Stereotype – a simplistic and often inaccurate belief about the typical characteristics Of a specific group Of people (usually based on age, gender, or race. 2. Biases – tendency to use information about people in ways that create inaccurate perceptions. A. Similar-to-me effect. Receiving others who are similar to ourselves more positively than we perceive people who are different from us. B. Social status effect . Receiving others with high social status more positively than we perceive others with low social status. C. Salience effect – focusing attention on people who are different from ourselves. C. Overt discrimination – knowingly and willingly denying diverse people access to opportunities and outcomes in the organization. This is both unethical and illegal. IV, How to Manage Diversity Effectively A. Steps in managing diversity effectively l. Obtain top management commitment t diversity issues 2. Try to increase the accuracy of people’s perceptions 3.
Increase diversity awareness 4. Increase diversity skills 5. Encourage flexibility 6. Pay close attention to how employees are evaluated 7 _ Consider the numbers in terms of both women and minorities at different levels of the organization 8. Empower employees to challenge discriminatory behavior 9. Reward employees for effectively managing diversity 10. Provide training in diversity management 11. Encourage mentoring of diverse employees V. Sexual Harassment – is both illegal and unethical A. Forms of sexual harassment 1. Quid pro quo . A harasser asks or forces an employee to perform sexual favors to keep a job, receive a promotion or a raise, or avoid dismissal. Hostile work environment – the organization creates or allows an intimidating, hostile, or offensive work environment based on sex. B. Steps managers can take to eradicate sexual harassment – communicate a sexual harassment policy supported by top management, use a fair complaint procedure to investigate sexual harassment, take corrective action, provide training to employees. MANAGERS’ CRITICAL ROLE IN MANAGING DIVERSITY Both the workforce and the organizational environment are increasingly diverse and effectively managing this diversity is an essential component of management. In each of their managerial roles, managers can encourage the effective management of diversity which is both an ethical and a business imperative.
PERCEPTION Perception is the process through which people select, organize, and interpret sensory input to give meaning and order to the world around them. It is inherently subjective. Schemas guide perception; when schemas are based on a single visible characteristic such as race or gender, they are stereotypes and highly inaccurate leading to unfair treatment Unfair treatment also can result from biases and overt discrimination. HOW TO MANAGE DIVERSITY EFFECTIVELY There are a number of steps that managers can take to effectively manage diversity. The effective management of diversity is an ongoing process that requires frequent monitoring. SEXUAL HARASSMENT Two forms of sexual harassment are quid pro quo sexual harassment and hostile work environment sexual harassment.
Steps that managers can take to eradicate sexual harassment include development and communication tot a sexual harassment policy endorsed by top management, use of fair complaint procedures, prompt corrective action when harassment occurs, ND sexual harassment training and education. Chapter S: The Organizational Environment After studying this chapter you should be able to: Explain why the ability to perceive, interpret, and respond appropriately to the organizational environment is crucial for managerial success. Identify the main forces in an organization’s task and general environments, and describe the challenges that each force presents to managers. Discuss the main ways in Which managers can manage the organizational environment.
Explain Why boundary-spanning activities are important. What is the Organizational Environment? The organizational environment is a set Of forces outside the organization’s boundaries that have the potential to affect the way the organization operates. The Task Environment ; the set of forces that originate with suppliers, distributors, customers, and competitors. A. Suppliers – provide the organization with input resources (raw materials, component parts, workers) to produce goods and services, B. Distributors – help organizations to sell their goods and services C. Customers – people and groups that buy goods and services from the organization. D.