Why Study Management?

• The Value of Studying Management

– The universality of management
• Good management is needed in all organizations
– The reality of work
• Employees either manage or are managed
– Entrepreneurship
• The organized effort to pursue opportunities to create
value and grow through innovation and uniqueness

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 “Companies fail when they
become complacent and imagine
that they will always be
successful. So we are always
challenging ourselves. Even the
most successful companies must
constantly reinvent themselves.
--Bill Gates
Chairman and Chief Software Architect
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Microsoft
The Importance of
Management

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The Management World Today

• Technology
• Environment
Constant • Society
change! • Competition
• OrganizationDiversity

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 What is Management?
• The process of deciding how best to use
resources to produce good or provide
services

– Employees
– Equipment
– Money

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What is Management?
Eg: Auto industry managers

– Assembly line: schedule work shifts,

supervise assembly of vehicles

– Engineering: develop new product

features, enforce safety standards

– General: plan for the future

– All organizations need

managers!
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 Levels of Management
• Senior/Top management

– Establishes the goal/objectives of the

business
– Decides how to use the company’s resources
– Not involved in the day-to-day problems
– Set the direction the company will follow
– Chairperson of the company’s board of
directors, CEO, COO, senior vice presidents
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 Levels of Management
• Middle management

– Responsible for meeting the goals that senior

management sets
– Sets goals for specific areas of the business
– Decides which employees in each area must
do to meet goals
– Department heads, district sales managers

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Levels of Management
• Supervisory management

– Make sure the day-to-day

operations of the business
run smoothly

– Responsible for the people

who physically produce the
company's products or
services

– Forepersons, crew leaders,

store managers
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The Management Pyramid

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 The Management Process

• Tasks performed
• Planning, organizing, staffing,
leading, controlling
Three ways
to examine • Roles played (set of behaviors
associated with a particular job)
how • Interpersonal, information-based,
management decision-making
works:
• Skills needed
• Conceptual, human relations,
technical

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 What Do Managers Do?
• Functional Approach
– Planning
• Defining goals, establishing strategies to achieve
goals, developing plans to integrate and
coordinate activities
– Organizing
• Arranging work to accomplish organizational goals
– Leading
• Working with and through people to accomplish
goals
– Controlling
• Monitoring, comparing,
33 and correcting the work 12
 The Management Process
• Planning

– Decides company goals and the actions to meet

them

– CEO sets a goal eg. increasing sales by 10% in

the next year by developing a new software
program

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 The Management Process
• Organizing

– Groups related activities together and assigns

employees to perform them

– A manager sets up a team of employees to restock an

aisle in a supermarket

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 The Management Process
• Staffing

– Decides how many and what kind of people a

business needs to meet its goals and then
recruits, selects, and trains the right people

– A restaurant manager interviews and trains

servers

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 The Management Process
• Leading

– Provides guidance employees need to perform their

tasks

– Keeping the lines of communication open

• Holding regular staff meetings

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 The Management Process
• Controlling

– Measures how the business performs to ensure

that financial goals are being met

– Analyzing accounting records

– Make changes if financial standards not being

met

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Relative Amount of Emphasis
Placed on Each Function of
Management

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 Management Roles
• Managers have authority within
organizations

– Managers take on different roles to best use

their authority

• Interpersonal roles
• Information-related roles
• Decision-making roles
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 Management Roles
• Interpersonal roles

– A manager’s relationships with people

• Providing leadership with the company
• Interacting with others outside the organization
• Senior managers spend much of their time on
interpersonal roles
– Represent the company in its relations with people
outside the company, interacting with those people, and
providing guidance and leadership to the organization
– Determine a company’s culture
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 Management Roles
• Information-related roles

– Provide knowledge, news or advice to employees

• Holding meetings
• Finding ways of letting employees know about important
business activities

• Decision-making roles
– Makes changes in policies, resolves conflicts, decides
how to best use resources
• Middle and supervisory managers spend more time resolving
conflicts than senior managers
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 Management Skills

• Conceptual skills

– Skills that help managers understand how different

parts of a business relate to one another and to the
business as a whole

– Decision making, planning, and organizing

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 Management Skills

• Human relations skills

– Skills managers need to understand and work well

with people

– Interviewing job applicants, forming partnerships with

other businesses, resolving conflicts

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 Management Skills

• Technical skills

– The specific abilities that people use to perform their

jobs

– Operating a word processing program, designing a

brochure, training people to use a new budgeting
system

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 Management Skills

• All levels of management require a

combination of conceptual, human
relations, and technical skills
– Conceptual skills most important at senior
management level
– Technical skills most important at lower levels
– Human relations skills important at all levels

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Skills Needed at Different Management
Levels

Top
Conceptual
Managers Skills
Middle Human
Managers Skills
Technical
Lower-level
Managers Skills

Importance

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 Principles of Management

• A principle is a basic truth or law

• Managers often use certain rules when

deciding how to run their business

• Most management principles are

developed through observation and
deduction 33 29
 Principles of Management

• Deduction is the process of drawing a

general conclusion from specific examples
– Observe that employees in 15 companies
work more efficiently when their supervisors
threat them well
– Deduce/conclude that a pleasant work
environment contributes to productivity
– Conclusion becomes a management principle

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 Principles of Management
• Management principles are best viewed as
guides to action rather than rigid laws
• If a principle does not apply to a specific
situation, an experienced manager will not
use it
– Important to recognize when a principle
shouldn’t be followed
– Being able to change and adapt is an
important management skill
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Principles of Management
• Do all employees need to arrive at
work at the same time?

• Do people who work in offices need

to dress in a certain way?

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• Workers and managers must
be sensitive to challenges
presented by a multicultural
workplace

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