7. 8
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
Figure 1.1
8. 8
Basic Purpose of Management
EFFICIENTLY
Using resources wisely and
in a cost-effective way
EFFECTIVELY
Making the right decisions and
successfully implementing them
And
10. 10
The Management Process (cont’d)
• Planning and Decision Making
– Setting an organization’s goals and selecting a course of
action from a set of alternatives to achieve them.
• Organizing
– Determining how activities and resources are grouped.
• Leading
– The set of processes used to get organizational members
to work together to advance the interests of the
organization.
• Controlling
– Monitoring organizational progress towards goals.
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The Management Process
Organizing
Determining how
best to group
activities and
resources
Controlling
Monitoring
and correcting
ongoing activities
to facilitate goal
attainment
Planning and
Decision Making
Setting the organiza-
tion’s goals and
deciding how best
to achieve them
Leading
Motivating members
of the organization
to work in the best
interests of the
organization
Figure 1.3
12. 12
What is a Manager?
According to Ricky W. Griffin:
• Someone whose primary responsibility is to
carry out the management process.
• Someone who plans and makes decisions,
organizes, leads, and controls
human, financial, physical,
and information resources.
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Kinds of Managers by Level and Area
Middle managers
Areas of Management
Levels of Management
First-line managers
Top managers
Figure 1.4
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Kinds of Managers by Level
• Top Managers
– The relatively small group of executives who manage
the organization’s overall goals, strategy, and
operating policies.
• Middle Managers
– Largest group of managers in organizations who are
primarily responsible for implementing the policies
and plans of top managers. They supervise and
coordinate the activities of lower-level managers.
• First-Line Managers
– Managers who supervise and coordinate the
activities of operating employees.
15. 15
Kinds of Managers by Area
• Marketing Managers
– Work in areas related to getting consumers and clients
to buy the organization’s products or services.
• Financial Managers
– Deal primarily with an organization’s financial
resources.
• Operations Managers
– Concerned with creating and managing the systems
that create organization’s products and services.
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Kinds of Managers by Area (cont’d)
• Human Resource Managers
– Involved in human resource planning, recruiting
and selection, training and development,
designing compensation and benefit systems,
formulating performance appraisal systems.
• Administrative Managers
– Generalists who are familiar with all functional
areas of management and who are not associated
with any particular management specialty.
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• Represent the organization or department in legal, social,
ceremonial, or symbolic activities
• Generally considered a top management function
• However, leaders throughout the organization can perform
this role
• Includes:
– Signing official documents
– Entertaining clients and official visitors
– Speaking engagements (formal and informal)
– Presiding at meetings and ceremonies
Interpersonal: Figurehead Role
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• Pervades all managerial behavior
• Influences how leaders perform other roles
• Includes:
– Hiring and training
– Giving instructions and coaching
– Evaluating performance
Interpersonal: Leader Role
20. 20
• Interacting with people outside the
organizational unit
• Includes:
– Networking
– Developing relationships
– Gaining information and favors
– Serving on committees
– Attending professional meetings
– Keeping in touch with other people and
organizations
Interpersonal: Liaison Role
21. 21
• Gathers information
• Analyzes the information to discover
problems and opportunities
• Includes:
– Reading memos, reports, and publications
– Talking to others
– Attending meetings
– Observing competitors
Informational: Monitor Role
22. 22
• Sends information to others
• Information passed via:
– Oral means
– Telephone or voice mail
– One-on-one discussions
– Meetings
– Written media
– E-mail
– Printed documents
– Handwritten notes
Informational: Disseminator Role
23. 23
• Provides information to people outside the
organizational unit
• Examples:
– Meeting with the boss to discuss performance
– Meeting with the budget officer to discuss the
unit budget
– Answering letters
– Reporting information to the government
Informational: Spokesperson Role
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• Innovative
• Initiation of improvements
• Examples:
– Developing new or improved products and
services
– Developing new ways to process products and
services
– Purchasing new equipment
Decisional: Entrepreneur Role
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• Takes corrective action during crisis or conflict
situations
• Involves reactions to unexpected events
• Leaders typically give this role priority
• Examples:
– A union strike
– Equipment breakdown
– Needed material not arriving on time
– Tight schedules
Decisional: Disturbance-Handler Role
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• Involves scheduling, requesting
authorization, and performing budgeting
activities
• Examples:
– Deciding what is done now, later, or not at all
– Setting priorities and time management
– Allocating raises, overtime, and bonuses
– Scheduling employee, equipment, and material
use
Decisional: Resource-Allocator Role
27. 27
• Represents their organizational unit in
transactions without set boundaries
• Examples:
– Setting pay and benefits for a new professional
employee or manager
– Reaching agreement on a labor union contract
– Contracting with customers or suppliers
Decisional: Negotiator Role
30. 30
Fundamental Management Skills
• Technical
– Skills necessary to accomplish or understand the
specific kind of work being done in an organization.
• Interpersonal
– The ability to communicate with, understand, and
motivate both individuals and groups.
• Conceptual
– The manager’s ability to think in the abstract.
• Diagnostic
– The manager’s ability to visualize the most
appropriate response to a situation.
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Fundamental Management Skills
(cont’d)
• Communication
– The manager’s abilities both to convey ideas and
information effectively to others and to receive ideas
and information effectively from others.
• Decision-Making
– The manager’s ability to recognize and define
problems and opportunities correctly and then to
select an appropriate course of action to solve the
problems and capitalize on opportunities.
• Time-Management
– The manager’s ability to prioritize work, to work
efficiently, and to delegate appropriately.
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Management: Science or Art?
• The Science of Management
– Assumes that problems can be approached using
rational, logical, objective, and systematic ways.
– Requires technical, diagnostic, and decision-making
skills and techniques to solve problems.
• The Art of Management
– Decisions are made and problems solved using a
blend of intuition, experience, instinct, and personal
insights.
– Requires conceptual, communication, interpersonal,
and time-management skills to accomplish the tasks
associated with managerial activities.
