managers elements.ppt
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Copyright 2005 by Houghton Mifflin Company. All rights reserved. 11
Management
A form of work that involves coordinating an organizationshuman, financial, physical and information resources
toward accomplishing organizational objectives.
Attainment of organizational goals in an effective andefficient manner through planning, organizing, leading and
controlling organizational resources.
NOTE THESE CHARACTERISTICS:Goal-driven
Activity is effective and efficient
Uses the four managerial functions
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What is Management?
A set of activitiesplanning and decision making, organizing, leading, and
controlling
directed at an organizations resources
human, financial, physical, and information
with the aim of achieving organizational goals
in an efficient and effective
manner.
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Efficiency
versus
Effectiveness
Efficiency:Operating in
such a way
that resources
are not wasted
Effectiveness:Doing the right
things in the
right way at
the right times
Successful
Management
Source: Adapted from Van Fleet, David D., Contemporary Management, Second Edition.
Copyright 1991 by Houghton Mifflin Company. Used with permission.
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What is a Manager?
Someone whose primary responsibility is tocarry out the management process.
Someone who plans and makes decisions,
organizes, leads, and controls
human, financial, physical,and information resources.
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Figure 1.1
Kinds of Managers by Level and Area
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Kinds of Managers by Level
Top ManagersThe relatively small group of executives who manage
the organizations overall goals, strategy, and
operating policies.
Middle ManagersLargest group of managers in organizations
Implement top managements policies and plans.
Supervise and coordinate lower-level managers activities.
First-Line ManagersManagers who supervise and coordinate the activities
of operating employees.
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Examples of Managers by Area
Marketing Managers
Work in areas related to getting consumers and clients to buy theorganizations products or services.
Financial Managers Deal primarily with an organizations financial resources.
Operations Managers Concerned with creating and managing the systems that create
organizations products and services
Human Resource Managers Involved in planning, recruiting and selection, training and
development, designing compensation and benefit systems,
formulating performance appraisal systems.
Administrative Managers Serve as generalists in functional areas and are not associated
with any particular management specialty.
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Management in Organizations
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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The Management Process
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The Functions of Management
PlanningSetting an organizations goals and selecting a course
of action to achieve them.
Organizing
Determining how activities and resources are grouped.
Leading
Getting organizational members to work together to
advance the interests of the organization.
Controlling
Monitoring organizational progress towards goals.
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Planning and Organizing Involve
Planning Environmental scanning and analysis
Developing a vision of the future
Setting long-term organizational objectives
Developing organizational and competitive strategies
Organizing
Defining tasks and duties
Grouping positions into effective structures (departments)
Clarifying authority, responsibility, and reporting relationshipsAllocating scarce resources (financial, human, physical)
Staffing positions with qualified personnel
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Leading and Controlling Involve
LeadingEffective communicationInspiring others to do their best
Motivation and rewards
Trust and assurance
ControllingClear standards
Monitoring progress and resultsKnowing when and how to intervene
Correcting deviations successfully
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Skills and the
Manager
FundamentalManagement
Skills
Technical Skills
Interpersonal Skills
Conceptual Skills
Diagnostic Skills
Communication Skills
Decision-Making Skills
Time-Management Skills
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Fundamental Management Skills
TechnicalSkills necessary to accomplish or understand the
specific kind of work being done in an organization.
Interpersonal
The ability to communicate with, understand, andmotivate both individuals and groups.
Conceptual
The managers ability to think in the abstract and to
see the big picture. To perceive how all the parts fit
together.
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3 Primary Managerial Skills (KATZ)
Technical skillsFOCUS IS ON WHAT IS DONE
Specialized knowledge and proficiency
Analytical ability
Works with things, tools and techniques
Interpersonalskills FOCUS IS ON HOW SOMETHING IS DONEWorks with and through people
Effective as a group/team member
Motivates, communicates, & resolves conflicts
Conceptual skills FOCUS IS ON WHY SOMETHING IS DONESees the big picture (how the parts fit together)
Understands the corporation as a whole
Future-orientedthinks strategically
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Fundamental Management Skills (contd)
Diagnostic The managers ability to visualize the most appropriate response
to a situation.
Communication The managers abilities both to convey ideas and information
effectively to others and to receive ideas and informationeffectively from others.
Decision-Making The managers ability to recognize and define problems and
opportunities correctly and then to select an appropriate courseof action to solve the problems and capitalize on opportunities.
Time-Management The managers ability to prioritize work, to work efficiently, and to
delegate appropriately.
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Management Skill Mixes at Different
Organizational Levels
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Managerial Success Factors
Personal FactorsAbilities and skillsMotivation
Personality
Situational FactorsNature of the work and environment
Relationships with subordinates and supervisors
Abilities of subordinates
Actions TakenAppropriate for the situation?
LuckBeing in the right place at the right time?
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Business Functions
Human Resources Sales and Marketing
Research and Development
Production/Operations
Customer Service
Finance and Accounts
Administration and IT
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Human Resources
Recruitment and retentionJob descriptions
Person Specifications
Dismissal Redundancy
Motivation
Professional development and training
Health and safety and conditionsat work
Liaison with trade unions
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Sales and Marketing
Market research Promotion strategies
Pricing strategies
Sales strategies
The sales team
Product advice on new product development,
product improvement, extension strategies,
target markets
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Research and Development
New product development Product improvements
Competitive advantage
Value added
Product testing
Efficiency gains
Cost savings
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Finance and Accounts
Cash flowMonitoring income/revenue
Monitoring expenditure
Preparing accounts
Raising finance
Shares
Loans
Links with all other functional areas
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Production/Operations
Acquiring resources
Planning output labour, capital, land
Monitoring costs
Projections on future output Production methods
Batch
Flow
JobCell
Efficiency
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Customer Service
Monitoring distributionAfter-sales service
Handling consumer enquiries
Offering advice to consumers
Dealing with customer complaints
Publicity and public relations
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Business Organisation
Organisation by type
Global businesses complex organisationstructures
National organisation possibly stretchesthroughout the country
Regional could be through a county or widerarea (North West, South East, etc.)
Local small organisations serving local areaor community
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Business Organisation
Authority the right to make decisions and carry out tasks
Span of control the number of people a superior
is responsible for
Chain of Command the relationship between different levels of
authority in the business
Hierarchy shows the line management
in the business and who has specific responsibilities
Delegation authority to carry out actions
passed from superior to subordinate
Empowerment giving responsibilities to people
at all levels of the business to make decisions
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Administration and IT
Managing estates cleaning, healthand safety, maintenance, security
Reception
Clerical work reporting, recording,record keeping, communication
Overview of quality control
Use of IT systems
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Organisation Charts
Hierarchical Structure
Managing Director
Sales DirectorMarketingDirector
Finance Director
A B C D MarketResearch
Strategy PurchasingManager
SalesManager
AccountsManager
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Organisation Charts
MD
MiddleManagement
Workers
Pyramidal Structure
SeniorManagement
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Organisation Charts
R&D
Marketing Sales
Production
Finance
MD
Centralised/Entrepreneurial
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Organisation Charts
Sales
Marketing
Production
Accounts
Collaborative
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Organisation Charts
Marketing Sales
ProductionFinance
R&D
Circular/Flat
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Organisation Charts
Changes to business structures
Linked to new thinking on leadership andmanagement
Less hierarchical
Emphasis on communicationand collaboration between sections
Global businesses more complex structures
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Why do Organizations Look andAct the Way They Do? Two
Identifying Characteristics
Hierarchical or FlatForm of Organizational Reporting and
Authority Relationships
Decentralized or Centralized
Location of Decision Rights (Power)
within Organization
Organizations and Their Management
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Organizations and Their Management
Organizational Hierarchy measured byNumber of Levels and Ranks of Authority-delegating and
Reporting Relationships
Extent of Integration of Functions and Outputs: IsOrganizations Form characterized by: Functional Silos: Finance, Marketing,
Production, etc., or by
Product Lines: Groceries, Clothing, etc.
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Organizations and their Management
Centralized or Decentralized?Relative Number, Length and Complexity of
Paths between Where Decisions are
Made and Where Decisions areImplemented
May be unrelated to Hierarchical Form
Decentralized decision-making may be more
democratic, but is it more efficient?
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Hierarchical versus Flat OrganizationsChief
Executive
ChiefExecutive
Tallhierarchy
Flat
hierarchy
Relatively wide
span of control
Relatively narrow
span of control
Tall Organization
Flat Organization