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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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