Chapter 1 Introduction to Management and Organizations Copyright © 2016 Pearson Canada Inc. 1-1.

Chapter 1

Introduction to Management and Organizations

Copyright © 2016 Pearson Canada Inc. 1-1

Learning Outcomes:

1. Explain why managers are important to an organization.

2. Tell who managers are and where they work.

3. Describe the characteristics of an organization.


Learning Outcomes:

4. Describe the factors that are reshaping and redefining the manager’s job.

5. Explain the value of studying management.


Why Are Managers Important?

Managers are important because:o organizations need their managerial skills and abilities

more than ever in uncertain, complex, and chaotic times.

o of the relationship between employees and their direct supervisors (managers)

o able to function in traditional and nontraditional environments in the twenty-first century


Who Is a Manager?

Managers:

Coordinate work activities to achieve organizational goals.

Actions are affected by both the internal culture of the organization and the constraints of the external environment – including the global environment.


Who Is a Manager?

Managers:

Deal with complicated ethical and social responsibility issues as they plan, organize, lead and control.


Who Is a Manager?

A manager is:

Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals.


Types of Managers

First-line Managers:

Managers at the lowest level manage the work of non-managerial employees directly or indirectly involved with the production or creation of the organization’s products.


Middle Managers:

Managers between the first-line level and the top level of the organization who manage the work of first-line managers.

Types of Managers


Top Managers:

Managers at or near the top level are responsible for making organization-wide decisions and establishing plans and goals affecting the entire organization.

Types of Managers


Exhibit 1-1 Managerial Levels


Management:

Coordinating work activities with and through other people so the activities are completed efficiently and effectively..

What Is Management and What DoManagers Do?


What Is Management and What DoManagers Do?

Managerial Concerns:

Efficiency & Effectiveness


Efficiency - “Doing things right” Getting the most output from the least

amount of inputs.

Effectiveness - “Doing the right things” Completing activities so that organizational

goals are achieved.

What Is Management and What Do Managers Do?


Exhibit 1-2 Efficiency and Effectiveness in Management


Management Functions?

Management functions:

Deal with complicated ethical and social responsibility issues as they plan, organize, lead and control.


Management Functions:

According to the Functions Approach:

Managers perform certain activities or duties as they efficiently and effectively coordinate the work of others.




• Henri Fayol first proposed that all managers perform five functions:

Planning

Organizing Commanding

Coordinating Controlling



Most management books now use a four function model:

Planning

Organizing Lead

Control


Exhibit 1-3 Management Functions


’

Management Roles Approach (Henry Mintzberg)

• Interpersonal rolesFigurehead, leader, liaison

• Informational rolesMonitor, disseminator, spokesperson

• Decisional rolesEntrepreneur, disturbance handler, resource

allocator, negotiator



• So which approach to describing what managers do is better—functions or roles?

Function vs. Roles


Management Skills Approach (Robert Katz)

• Technical skillsKnowledge and proficiency in a specific field

• Human skillsThe ability to work well with other people

• Conceptual skillsThe ability to think and conceptualize about abstract

and complex situations concerning the organization



Exhibit 1-5 Skills Needed at Different Management Levels


What Is an Organization?

An Organization Defined:

A deliberate arrangement of people who act together to accomplish some specific purpose.


Common Characteristics of Organizations:

Distinct purposeComposed of peopleDeliberate structure



Exhibit 1-6 Characteristics of Organizations



The Size of Organizations:

Managers and employees work in a variety of different sized organizations.

Large organizations represent only 2% of the organizations in Canada

Small business represent 98% of all Canadian companies



The Changing Organization:

Traditional

New Organization


Exhibit 1-7 The Changing Organization

Characteristics of the Traditional Organization

• Stable• Inflexible• Job-focused• Work is defined by job positions• Individual-oriented• Permanent jobs• Command-oriented



Characteristics of the Traditional Organization

• Managers make decisions• Rule-oriented• Homogeneous workforce• “9 to 5” hours• Hierarchical • Typical hours of operation



Characteristics of the New Organization

• Dynamic• Flexible• Skills-focused• Work is defined in terms of tasks to be done• Team-oriented• Temporary jobs• Involvement-oriented



Characteristics of the New Organization

• Employees participate in decision making• Customer-oriented• Diverse workforce• Workdays have no time boundaries• Lateral and networked relationships• Work anywhere, anytime

Copyright © 2016 Pearson Canada Inc.1-33

The Types of Organizations:The type of organization impacts the manager’s role:• Publicly held organizations• Privately held organizations• Not-for-profit sector• NGO• Public sector organizations• Civil servant• Crown Corporations


How Is the Manager’s Job Changing?

Managing is far more complicated today than it ever was.

Managers, must deal with multicultural challenges, technological challenges, and the demand for more accountability from customers and clients.



Managers everywhere are dealing with:• Corporate ethics scandals• Be more socially responsible• Diverse workforce • Globalization



Importance of Customers to the Manager’s Job

• You need customers. Without them, most organizations would cease to exist.

• The majority of employees in developed countries work in service jobs. For instance, almost 72 percent of the Canadian labour force is employed in service industries.

• High-quality customer service is essential for survival and success in today’s competitive environment.



Importance of Social Media to the Manager’s Job

• Managers need to understand and manage the power and peril of social media.

• More and more businesses are turning to social media as a way to manage their human resources and tap into their innovation and talent.



Importance of Innovation to the Manager’s Job

• “Nothing is more risky than not innovating.”• Innovative efforts can be found in all types of organizations. • Innovation is critical throughout all levels and parts of an

organization.



Importance of Adaptability to the Manager’s Job

• An adaptable organization creates a set of skills, processes, and a culture that enable it to continuously look for new problems and offer solutions before the clients even realize they have a need.



Importance of Sustainability to the Manager’s Job

• Managing in a sustainable way, which has had the effect of widening corporate responsibility not only to managing in an efficient and effective way, but also to responding strategically to a wide range of environmental and societal challenges.


Why Study Management?

• The Universality of Management.

• The Reality of Work.

• Self-Employment.


Why Study Management?


Summary and Implications

Explain why managers are important to an organization.

Managers are important to organizations for three reasons. First, organizations need their managerial skills and abilities in uncertain, complex, and chaotic times. Second, managers are critical to getting things done in organizations. Finally, managers contribute to employee productivity and loyalty; the way employees are managed can affect the organization’s financial performance; and managerial ability has been shown to be important in creating organizational value.



Tell who managers are and where they work.

Managers coordinate and oversee the work of other people so that organizational goals can be accomplished. In traditionally structured organizations, managers can be first-line, middle, or top. In other more loosely configured organizations, the managers may not be as readily identifiable, although someone must fulfill that role.


Describe the characteristics of an organization.

Managers work in a variety of organizations both large and small within various industries.

Organizations have three characteristics: a distinctive purpose, composed of people, and a deliberate structure.




Describe the factors that are reshaping and redefining the manager’s job . Some of the many challenges of managing include global economic and political uncertainties, changing workplaces, ethical issues, security threats, and changing technology.

The greatest managerial challenge is the crisis in ethical responsibility damaging today’s organizations.



Explain the value of studying management.

Understanding management helps us to improve organizations.


Chapter 1 Introduction to Management and Organizations Copyright © 2016 Pearson Canada Inc. 1-1.

Documents

Transcript of Chapter 1 Introduction to Management and Organizations Copyright © 2016 Pearson Canada Inc. 1-1.