Introduction to Organizations and Management

1. Introduction to Organizations and Management Introduction to Organizations and Management

2. What is an Organization ? • “A deliberate arrangement of people to accomplish some specific purpose” • “A social entity that is a goal directed, deliberately structured activity system within an identifiable boundary” • “The planned coordination of the activities of a number of people for the achievement of some common, explicit purpose or goal, through division of labor and function, and through a hierarchy of authority and responsibility” Introduction to Organizations and Management

3. People Distinct Purpose Deliberate Structure Common Elements • People • Goals • Inside boundaries • Within an environment • Structured Introduction to Organizations and Management

4. Importance of Organizations • Why do we study organizations? • Organizations are essential to all human social functioning, so we want to... • ...explain their birth, growth, adaptation, and death • People are essential, but organizations exist independently of particular people • Organization = a legal person • Written records, memory • The social organization or informal organization • Elements of formal organization are present, but it is not rationally planned and coordinated Introduction to Organizations and Management

5. Who Owns the Organization? • For-profit organizations • Examples: Federal Express, Google, Joe’s Bait Shop • Not-for-profits • Government – the voters • Foundations, schools, hospitals, helping organizations - trustees Stakeholders Introduction to Organizations and Management

6. Ownership can vary: Single proprietor Partnership Private corporations Public corporations Why does it matter? Legalities Organization life and succession Stakeholders For-Profit Organizations Single Individual Numerous Shareholders Introduction to Organizations and Management

7. Efficiency vs. Effectiveness • Defined: • Efficiencyis making the best use of resources • Effectiveness is achieving the goal • Questions…. • Can you be efficient without being effective? • Can you be effective without being efficient? Introduction to Organizations and Management

8. Systems Theory and Organization Effectiveness • How well the organization manages the interaction between internal and external environments • Three basic principles: • Organizations must have inputs to survive (or face entropy) • One system’s output is another system’s input, and vice versa • Organizations must respond to feedback (remain open, not closed) Introduction to Organizations and Management

9. Systems Theory • 5 related components: • Input • Transformation process • Output • External environment • Feedback • Synergy • Equilibrium Introduction to Organizations and Management

10. Environment Feedback Systems Model Input Transformation Process Output Introduction to Organizations and Management

11. One view: Boundary spanning Production Maintenance Adaptation Management Another view Technical Structural Psychosocial Managerial Every System is Made up of Subsystems Introduction to Organizations and Management

12. Systems Theory and Organization Effectiveness • How well the organization manages the interaction between internal and external environments • Three basic principles: • Organizations must have inputs to survive (or face entropy) • One system’s output is another system’s input, and vice versa • Organizations must respond to feedback (remain open, not closed) Introduction to Organizations and Management

13. Contingency Theory • There is no “One Best Way” to manage organizations and people • Every situation has different requirements It Depends ! Introduction to Organizations and Management

14. What is Management? • A universal activity that uses resources to attain organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources • Getting work done through other people • A manager integrates and coordinates the work of other people • A manager: • “Decides the purpose and mission of the organization” • “Makes work productive“ • “Manages social impacts and responsibilities” Introduction to Organizations and Management

15. Perspectives on Management • Management is a process • Functions and activities performed by managers • Management is a discipline • An accumulated body of knowledge that can be learned • Management is a human activity • Performed by people • Management is a career • A progression of positions held by an individual Introduction to Organizations and Management

16. A Management Paradox • A manager oversees the work of others; she does not attend to the details herself • At the same time, the manager must be concerned with the details, to be sure they are covered. Introduction to Organizations and Management

17. Traditional Management Functions Planning Management Functions Controlling Organizing Leading Introduction to Organizations and Management

18. Planning Select goals and ways to attain them Controlling Monitor activities and make corrections Organizing Assign responsibility for task accomplishment Leading Use influence to motivate employees The Management Process Introduction to Organizations and Management

19. Who Are The Managers? • Department of Labor: 9.56% of workforce • First-line supervisors: 4.89% (avg. salary $43,090) • Managers: 4.68% (avg. salary $84,258) • Census Bureau: 34.14% of employed population in managerial, professional, and related occupations • Male: 49.68% • Female: 50.31% • Why ? • Lack of consistent definitions • People may have multiple duties Introduction to Organizations and Management

20. 2004’s Highest Paid CEOs Source: www.Forbes.com Introduction to Organizations and Management

21. Levels of Management Introduction to Organizations and Management

22. Top Managers Middle Managers First-line Managers Conceptual Human Technical Management Competencies Introduction to Organizations and Management

23. Typical Responsibilities: Top Management • Set organization goals • Define strategies • Monitor & interpret external environment • Make decisions that impact entire organization • Communicate a shared vision • Shape corporate culture • Nurture entrepreneurial spirit • Engage the unique skills and knowledge of employees Long-Term ? Introduction to Organizations and Management

24. Middle & First-Line Management • Middle managers: • Implement strategies and policies defined by top management • Monitor operations for short-term outcomes • Establish and maintain good relationships with peers • Encourage teamwork and resolve conflicts • First-line managers / supervisors • Apply rules and procedures to achieve efficient production on a day-to-day basis • Provide technical assistance to subordinates • Motivate subordinates Introduction to Organizations and Management

25. Management Functions by Level Introduction to Organizations and Management

26. Managers in Two Dimensions • Vertical • Management level • Horizontal • Function within the organization • Line vs. staff • Common to all: fast-paced, fragmented Introduction to Organizations and Management

27. Figurehead • Leader • Liaison Interpersonal Roles • Entrepreneur • Disturbance handler • Resource allocator • Negotiator • Monitor • Disseminator • Spokesperson Decisional Roles Informational Roles Mintzberg’s Management Roles Who is a Manager? Introduction to Organizations and Management