What is Management ? Chapter 1 Review

1. What is Management?Chapter 1 Review Mr. Sherpinsky Business Management Class Council Rock School District

2. The Business World Today • Constant change! • Technology • Society • Environment • Competition • Diversity

3. What is Management? • Management:The process of deciding how best to use a business’s resources to produce good or provide services… • Organization’s Resources: • Employees • Equipment • Money

4. Levels of Management • Senior 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 • Board of Directors, CEO, COO, senior vice presidents

5. 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

6. 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 • Also called “Line” managers

7. The Management Process 3 ways to examine how management works: • Tasks performed • Planning, organizing, staffing, leading, controlling • Roles played • Set of behaviors associated with a particular job • Interpersonal, information-based, decision-making • Skills needed • Conceptual, human relations, technical

8. Management Tasks • 5 Major Tasks Performed: • Planning • Organizing • Staffing • Leading • Controlling

9. The Management Process • Planning • Decides company goals and the actions to meet them • CEO sets a goal of increasing sales by 10% in the next year by developing a new software program

10. 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

11. 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

12. The Management Process • Leading • Provides guidance employees need to perform their tasks • Keeping the lines of communication open • Holding regular staff meetings • One of the most important tasks of supervisory or line managers

13. 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 • One of the most important tasks of supervisory or line managers

14. Relative Amount of Emphasis Placed on Each Function of Management Function

15. 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

16. Mintzberg’s Management Roles • Interpersonal roles • A manager’s relationships with people • Figurehead: Performs symbolic duties • Leader: Establishes work atmosphere and motivates subordinates • Liaison: Develops and maintains webs of contacts outside of the organization

17. Mintzberg’s Management Roles • Informational-related roles • Provide knowledge, news or advice to employees • Monitor: Collect all types of information relevant and useful to organization • Disseminator: Gives other people the information they need to make decisions • Spokesperson: Transmits information to the outside world

18. Mintzberg’s Management Roles • Decisional-making roles • Makes changes in policies, resolves conflicts, decides how to best use resources • Entrepreneur: Initiates controlled change in the organization to adapt to changing environment • Disturbance Handler: Deal with the unexpected changes • Resource Allocator: Makes decisions on the use of organizational resources • Negotiator: Deals with other organizations and individuals

19. Mintzberg’s Findings • Mintzberg found that most managers are often placed into situations beyond their control such as: • Constant interruptions • Jumping from subject to subject • Problem to Problem • Rarely giving undivided or uninterrupted attention to anything for any length of time

20. 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

21. Conceptual, Human Relations, and Technical Skills • Human Relation Skills • Need to work well together • Resolving conflicts • Forming partnerships Conceptual Skills • Decision making planning, and organizing • Understanding how different businesses relate • Technical Skills • Abilities used to perform their job • Training people to use a new system

22. 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

23. Management Skills • Human relations skills • Skills managers need to understand and work well with people while forming partnerships • Interviewing job applicants, forming partnerships with other businesses, resolving conflicts

24. Management Skills • Technical skills • The specific abilities that people use to perform their jobs • Operating various software applications • Overseeing things like: designing a brochure, training people to use a new budgeting system

25. History of Management • Knowledge is Power! • Even in life! • Where you’re going, where you’ve been! • Management is relatively a modern concept…

26. Causes of the Industrial Revolution • Many people left their farms to work in factories • Professional managers supervised their work • Changes in technology, communication, and transportation • Telegraph and cable lines extended across the U.S. after the Civil War • Railroad lines, canals, roads, steamships

27. The Break-Up of Trusts • The Sherman Act, 1890 • Made it illegal for companies to create monopolies • Intended to restore competition • Example • Standard Oil Company was broken into smaller companies so that other oil companies could compete with the former giant • John D. Rockefeller

28. Frederick W. Taylor and Scientific Management • Father of Scientific Management • Wanted to find ways to motivate workers to work harder • To increase efficiency, he tried to figure “one best way” to perform a particular task • Used a stopwatch to determine which work method was most efficient • These time and motion studies lead to scientific management principles

29. The Hawthorne Studies of Productivity • In the roaring 20s--Researchers began to look at the relationship between working conditions and productivity • Series of experiments at the Hawthorne plant of Western Electric in Cicero, IL • Lowered the lighting and expected to see productivity to fall • What happened? • Productivity increased…Why?

30. The Hawthorne Studies of Productivity • Researchers concluded that productivity rose because workers worked harder when they received attention • Hawthorne effect • Change of any kind increases productivity • Factors other than the physical environment affected worker productivity • Psychological and social conditions, effective supervision

31. The Hawthorne Studies of Productivity • Informal group pressures • Teaming tends to drive everyone not to let the others on the team down…. • Individual recognition • Highlighting a worker contribution tends to motivate them to work harder • Participation in decision-making • When workers are part of the process they work harder

32. Abraham H. Maslow and the Hierarchy of Needs • According to Maslow • All people have five basic types of needs • People fulfill lower-level needs before seeking to fulfill higher-level needs • One set of needs must be met before another is sought • “Hierarchy of needs” is his grouping and ordering of physical, security, social, status, and self-actualization needs

33. Maslow’s Hierarchy of Needs

34. Professional Management • The professional manager (started in the 1930’s) • Defined: Career person who does not necessarily have controlling interest in the business but is paid to perform management functions

35. Theory X • Assumes that people are basically lazy and will avoid working if they can • Managers impose strict rules and make sure that all important decision are make only by them

36. Theory Y • Assumes that people find satisfaction in their work • Managers believe that people will work productively if put in the right environment • People are creative & will come up with good ideas if encouraged to do so • Employees given more freedom and allowed to make mistakes

37. Theory Z • William Ouchi, management researcher • Integrates Japanese and American business practices • Japanese emphasis on collective decision making and concern for employees • American emphasis on individual responsibility • Companies commit to people

38. Japanese, American, and Theory Z Organizations

39. Centralization vs. Decentralization • Centralization • The concentration of power among a few key decision makers • Decentralization • Process by which decisions are made by managers at various levels within an organization

40. Women and Minoritiesin Management • In the last four decades, the number of women and minorities have joined the workforce has tripled • Commonplace to hold positions at all levels of management in companies of all sizes (Well represented at all levels of management) • Women and minorities serve as the CEOs of prestigious businesses • PepsiCo, Kraft, Archer Daniels, Avon, Harpo, eBay, Lucent, Dupont, IBM, XEROX, Yahoo

41. Women and Minoritiesin Management • Caucasian malesstill hold most senior management positions • Glass ceiling: the invisible barrier that prevents women and minorities from moving up in the world of business • Steadily becoming a window of opportunity! • Global Influences

42. What is an Entrepreneur? What do you think an Entrepreneur is???? • Defined: People who own, operate, and take the risk of a business venture are called entrepreneurs. • These people are engaged in entrepreneurship:which is the process of running a business of one’s own. • Difference between professional managers and entrepreneurs: Boss/No Boss

43. Employees vs. Entrepreneurs • Entrepreneurs assume RISK!!!! • Employees are different than entrepreneurs, employees are people who work for someone else. • Entrepreneurs are directly affected by the outcomes of their decisions.

44. Intrapreneurship • An Intrapreneur is an employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product, process, or service • 3M utilized intrapreneurship to create Post-It notes

45. Major Concept • Management Principles should be followed except when they don’t fit a particular situation