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ContemporaryManagementSecondEditionGarethR.JonesTexasA&MUniversityJenniferM.GeorgeTexasA&MUniversityCharlesW.L.HillUniversityofWashington©TheMcGraw-HillCompanies,Inc.,2000ManagersandManaging11-2ManagementKeyConceptsOrganizations:Peopleworkingtogetherandcoordinatingtheiractionstoachievespecificgoals.Goal:Adesiredfutureconditionthattheorganizationseekstoachieve.Management:Theprocessofusingorganizationalresourcestoachievetheorganization’sgoalsby...Planning,Organizing,Leading,andControlling1-3AdditionalKeyConceptsResourcesareorganizationalassetsandinclude:People,Machinery,Rawmaterials,Information,skills,Financialcapital.Managersarethepeopleresponsibleforsupervisingtheuseofanorganization’sresourcestomeetitsgoals.1-4AchievingHighPerformanceOrganizationsmustprovideagoodorservicedesiredbyitscustomers.DavidJohnsonofCampbellSoupmanageshisfirmtoprovidequalityfoodproducts.Physicians,nursesandhealthcareadministratorsseektoprovidehealingfromsickness.McDonald’srestaurantsprovideburgers,friesandshakesthatpeoplewanttobuy.1-5OrganizationalPerformanceMeasureshowefficientlyandeffectivelymanagersuseresourcestosatisfycustomersandachievegoals.Efficiency:

Ameasureofhowwellresourcesareusedtoachieveagoal.Usually,managersmusttrytominimizetheinputofresourcestoattainthesamegoal.Effectiveness:

Ameasureoftheappropriatenessofthegoalschosen(arethesetherightgoals?),andthedegreetowhichtheyareachieved.Organizationsaremoreeffectivewhenmanagerschoosethecorrectgoalsandthenachievethem.1-6ManagerialFunctionsHenriFayolwasthefirsttodescribethefourmanagerialfunctionswhenhewastheCEOofalargeminingcompanyinthelater1800’s.

Fayolnotedmanagersatalllevels,operatinginaforprofitornotforprofitorganization,mustperformeachofthefunctionsof:Planning,

organizing,

leading,

controlling.1-7FourFunctionsofManagementFigure1.2PlanningChooseGoalsOrganizingWorkingtogetherLeading

CoordinateControllingMonitor&measure1-8PlanningPlanningistheprocessusedbymanagerstoidentifyandselectappropriategoalsandcoursesofactionforanorganization.

3stepstogoodplanning: 1.Whichgoalsshouldbepursued? 2.Howshouldthegoalbeattained? 3.Howshouldresourcesbeallocated?Theplanningfunctiondetermineshoweffectiveandefficienttheorganizationisanddeterminesthestrategyoftheorganization.1-9OrganizingInorganizing,managerscreatethestructureofworkingrelationshipsbetweenorganizationalmembersthatbestallowsthemtoworktogetherandachievegoals.Managerswillgrouppeopleintodepartmentsaccordingtothetasksperformed.Managerswillalsolayoutlinesofauthorityandresponsibilityformembers.Anorganizationalstructureistheoutcomeoforganizing.Thisstructurecoordinatesandmotivatesemployeessothattheyworktogethertoachievegoals.1-10LeadingInleading,managersdeterminedirection,stateaclearvisionforemployeestofollow,andhelpemployeesunderstandtheroletheyplayinattaininggoals.Leadershipinvolvesamanagerusingpower,influence,vision,persuasion,andcommunicationskills.Theoutcomeoftheleadingfunctionisahighlevelofmotivationandcommitmentfromemployeestotheorganization.1-11ControllingIncontrolling,managersevaluatehowwelltheorganizationisachievingitsgoalsandtakescorrectiveactiontoimproveperformance.Managerswillmonitorindividuals,departments,andtheorganizationtodetermineifdesiredperformancehasbeenreached.Managerswillalsotakeactiontoincreaseperformanceasrequired.Theoutcomeofthecontrollingfunctionistheaccuratemeasurementofperformanceandregulationofefficiencyandeffectiveness.1-12ManagementLevelsOrganizationsoftenhave3levelsofmanagers:First-lineManagers:

responsibleforday-to-dayoperation.Theysupervisethepeopleperformingtheactivitiesrequiredtomakethegoodorservice.MiddleManagers:

Supervisefirst-linemanagers.Theyarealsoresponsibletofindthebestwaytousedepartmentalresourcestoachievegoals.TopManagers:

Responsiblefortheperformanceofalldepartmentsandhavecross-departmentalresponsibility.Theyestablishorganizationalgoalsandmonitormiddlemanagers.1-13TopManagersMiddleManagersFirst-lineManagersNon-managementThreeLevelsofManagement1-14RestructuringTopManagementhavesoughtmethodstorestructuretheirorganizationsandsavecosts.Downsizing:

eliminatejobsatalllevelsofmanagement.Canleadtohigherefficiency.Oftenresultsinlowmoraleandcustomercomplaintsaboutservice.1-15ManagementTrendsEmpowerment:

expandthetasksandresponsibilitiesofworkers.Supervisorsmightbeempoweredtomakesomeresourceallocationdecisions.Self-managedteams:

giveagroupofemployeesresponsibilityforsupervisingtheirownactions.Theteamcanmonitoritsmembersandthequalityoftheworkperformed.1-16ManagerialRolesDescribedbyMintzberg.Aroleisasetofspecifictasksapersonperformsbecauseofthepositiontheyhold.Rolesaredirectedinsideaswellasoutsidetheorganization.Thereare3broadrolecategories:1.Interpersonal2.Informational3.Decisional1-17InterpersonalRolesRolesmanagersassumetocoordinateandinteractwithemployeesandprovidedirectiontotheorganization.Figureheadrole:

symbolizestheorganizationandwhatitistryingtoachieve.Leaderrole:

train,counsel,mentorandencouragehighemployeeperformance.Liaisonrole:

linkandcoordinatepeopleinsideandoutsidetheorganizationtohelpachievegoals.1-18InformationalRolesAssociatedwiththetasksneededtoobtainandtransmitinformationformanagementoftheorganization.Monitorrole:

analyzesinformationfromboththeinternalandexternalenvironment.Disseminatorrole:

managertransmitsinformationtoinfluenceattitudesandbehaviorofemployees.Spokespersonrole:

useofinformationtopositivelyinfluencethewaypeopleinandoutoftheorganizationrespondtoit.1-19DecisionalRolesAssociatedwiththemethodsmanagersusetoplanstrategyandutilizeresourcestoachievegoals.Entrepreneurrole:

decidinguponnewprojectsorprogramstoinitiateandinvest.Disturbancehandlerrole:

assumeresponsibilityforhandlinganunexpectedeventorcrisis.Resourceallocatorrole:assignresourcesbetweenfunctionsanddivisions,setbudgetsoflowermanagers.Negotiatorrole:

seekstonegotiatesolutionsbetweenothermanagers,unions,customers,orshareholders.1-20ManagerialSkillsTherearethreeskillsetsthatmanagersneedtoperformeffectively.1.Conceptualskills:

theabilitytoanalyzeanddiagnosea

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