UNIT I – Introduction to Management - Definition of Management - Efficiency and Effectiveness -...

Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 1

UNIT I – Introduction to Management - Definition of Management - Efficiency and Effectiveness - Management Functions - Types of Managers - Managerial RolesHistorical PerspectivesQuality Improvement

UNIT 2 – International Management and Diversity

UNIT 3 – Managerial Ethics andSocial Responsibility

UNIT 4 – Planning as aDecision-Making Activity

UNIT 5 – Domestic and International Issues in Planning

UNIT 6 – Organization – Design and Culture

UNIT 7 – Staffing

UNIT 8 – Communication

UNIT 9 – Direction - Teams and Group Processes

UNIT 10 – Motivation

UNIT 11 – Leadership

UNIT 12 – Control

UNIT 13 - POM/MIS/DSS

FOUNDATIONS OF MANAGEMENTUNIT I – Introduction to Management

FOUNDATIONS OF MANAGEMENTFall 2008

Reading Assignment

Jones and George, Chapter 1

Appendix A, pp. 32-38








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INTRODUCTION

• Instructor Introduction

• Class Roster

• Syllabus Presentation– World Wide Web Access– Texts and Subscriptions– Tests– Course Objectives– Course Format








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Course Format

• Lecture-Discussion

• Foundation Simulation Game– Simulation Game Weekly– Group Stockholder Meetings

• E-Mail Assignments

• You Are Subscribed to [email protected]

• Chapter One Lecture








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• Initial Foundations Assignment– Register/Pay at Capsim.com– Review Student Guide and the

Foundations Web Site resources– Download and save the

Foundations.xle file– Using the Foundations.xls file

complete at least four rounds of the Rehearsal process using the “Coach” feature








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• Foundations Team Setup Assignment– Gather as a team and Introduce

yourselves– Share Contact Information

• Address• Phone #’s• Email Addresses (SNC and/or Other)

– Designate Participants for Tutorial– Designate Team Meeting Time to Prepare

your first trial decision








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Topic of Management








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Definition of Management

– The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources

– The process of making decisions about the allocation of resources efficiently and effectively








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Effectiveness vs. Efficiency

• EFFECTIVENESS

– Accomplish desired goals and objectives

– Doing the right thing

• EFFICIENCY

– Ratio Concept– Output over

Inputs– Getting more for

less– Doing things

right








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Improving Efficiency

• The fewer the inputs required to produce a given output, the higher the efficiency of a production system.– A common measure of the organization’s efficiency

of turning all of the inputs into outputs is called total factor productivity:

Total Factor Productivity = Total Outputs/All Inputs

– A comparison measure of a single input (such as labor) to total output is called partial productivity:

Total Labor Productivity = Total Outputs/Direct Labor








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Management is…

EffectivenessEffectivenessEffectivenessEffectiveness

EfficiencyEfficiencyEfficiencyEfficiencyGetting workGetting workdone throughdone through

othersothers

Getting workGetting workdone throughdone through

othersothers

The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently (Jones & George)








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Four Functions of Management








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Planning

Process of identifying and selecting appropriate goals and courses of action








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Organizing

Process of establishing a structure of working relationships in a way that allows organizational members to interact and cooperate to achieve organizational goals








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Organizational Structure

A formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals








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Leading

Articulating a clear vision to follow, and energizing and enabling organizational members so they understand the part they play in attaining organizational goals








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Controlling

• Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance– The outcome of the control process

is the ability to measure performance accurately and regulate efficiency and effectiveness








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What is an Organization

• Collections of people who work together and coordinate their actions to achieve a wide variety of goals








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What is a Manager

• The people responsible for supervising the use of an organization’s resources to meet its goals

• Resources include people, skills, know-how, machinery, raw materials, computers and IT, and financial capital








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Types of Managers








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FOUNDATIONS OF MANAGEMENTUNIT I – Introduction to ManagementTime That Managers Spend on the Four Managerial Functions








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Managerial Roles and Skills

Managerial role - The set of specific tasks that a person is expected to perform because of the position he or she holds in the organization








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Managerial Roles and Skills

Mintzberg identified three categories of roles – Decisional, Informational, Interpersonal








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Decisional RolesRoles associated with methods managers use in

planning strategy and utilizing resources.– Entrepreneur—deciding which new

projects or programs to initiate and to invest resources in.

– Disturbance handler—managing an unexpected event or crisis.

– Resource allocator—assigning resources between functions and divisions, setting the budgets of lower managers.

– Negotiator—reaching agreements between other managers, unions, customers, or shareholders.








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Informational Roles

Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization.– Monitor—analyzing information from both

the internal and external environment.– Disseminator—transmitting information to

influence the attitudes and behavior of employees.

– Spokesperson—using information to positively influence the way people in and out of the organization respond to it.








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Interpersonal Roles

Roles that managers assume to provide direction and supervision to both employees and the organization as a whole.– Figurehead—symbolizing the

organization’s mission and what it is seeking to achieve.

– Leader—training, counseling, and mentoring high employee performance.

– Liaison—linking and coordinating the activities of people and groups both inside and outside the organization.








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Managerial Skills

• Conceptual skills– The ability to analyze and diagnose a

situation and distinguish between cause and effect.

• Human skills– The ability to understand, alter, lead, and

control the behavior of other individuals and groups.

• Technical skills– The specific knowledge and techniques

required to perform an organizational role.








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Building Blocks of Competitive Advantage








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Historical Perspectives








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• Emphasized a rational, scientific approach to study of management and sought to make organizations efficient operating machines

• Scientific Management

• Bureaucratic Organizations

• Administrative Principles.

Classical Perspective








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• Develop a standard method for performing each job

• Select appropriate workers• Train workers in standard method• Plan work and eliminate interruptions• Provide incentives for increased

output.• Early Practitioners

– Frederick W. Taylor– Henry Gantt– Frank & Lillian Gilbreth

Scientific Management








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• Max Weber

• Clearly defined authority and responsibility

• Formal record keeping

• Separation of management and ownership.

• “Rational” Management (impersonal)

Bureaucratic Organizations








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• Henri Fayol - POSDC

• Luther Gulick - POSDCORB

• Mary Parker Follett - Common Superordinate Goals

• Chester I. Barnard - Informal Organization

Administrative Principles








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• Emphasized satisfaction of employees’ basic needs as the key to increased worker productivity.

• Hawthorne Studies- Mayo, Rothlisberger, and

Dixon• Chester Barnard - “The Functions of

the Executive”• Assumed that Job Satisfaction led to

higher productivity

Human Relations Movement








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• Jobs should be designed to allow workers to use their full potential

• Abraham Maslow’s Hierarchy of Needs

• Douglas McGregor’s Theory X & Theory Y

The Human Resources Perspective








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• Anthropology• Economics• Psychology• Sociology

• Motivation• Communication• Leadership• Group processes

Applied Social Sciences








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• Forecasting• Inventory control• Linear and nonlinear programming• Queuing theory• Scheduling• Simulation• Break-even analysis• Management information systems

(MIS).

Management Science Perspective








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Transformation Process

- Physical

Land

Capital

Labor

Services

Goods

- Locational

- Temporal

- Exchange

Operations Management

The Transformation Process








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• Systems Theory– “Everything is Related to Everything”

• Contingency View– “It all Depends . . .”

• Supply Chain Linkages– Creating customer value– Relationships among suppliers,

manufactures, distributors, and customers

Contemporary Approaches








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Universalist: “One best way”

Case View: “Every situation is unique”

Contingency View: Organizational phenomena exist in logical patterns. Managers devise and apply similar responses to common types of problems

“IT ALL DEPENDS!”

Contingency View








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• Globalization• Japanese Management Practices

– Teamwork, trust, and empowerment

• Total Quality Management- Employee Involvement- Focus on Customer- Benchmarking- Continuous Improvement.

• Value/Supply Chain Management

Recent Trends








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• The processes that create customer value by governing the flow of material and other resources, money, and information across the several organizations involved in creating customer value in products and services

Supply Chain Management








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Definition of Value• Creating Customer Value

– meeting customer needs– reducing costs, setting attractive

prices– increasing responsiveness– increasing availability

• “What the customer wants, When the customer wants it, Where the customer wants it, at a Price the customer is willing to pay”








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CustomerSupplier

Customer

Customers

Firm AFirm B Firm C

Suppliers

FocalFirm

FocalFirm

Supplier

FocalFirm

Focal Firms in SCM








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Continuous Quality Improvement








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Creating a Quality Culture

CQI as CentralFocus of

Mission Statement

StakeholderLinkages

Passionate Commitment to

Continuous Improvement

Commitment toEducation/TrainingTeam Development

Bias TowardEvidence Based

DecisionMaking

CULTURE OFCONTINUOUS

QUALITYIMPROVEMENT








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Improving Quality

• The concept of quality applies to the products of both manufacturing and service firms– A firm that provides higher quality

than others at the same price is more responsive to customers.

– Higher quality can also lead to better efficiency through lower waste levels and operating costs.








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Total Quality Management

• Total Quality Management (TQM)– A management technique that

focuses all activities on improving the quality of a firm’s goods or services.

– TQM is a company-wide management philosophy developed by Deming, Juran, Feigenbaum and Crosby.

– The TQM philosophy is that the customer defines quality.








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TQM: Associated Terms

• Quality Circles– Groups of employees who meet regularly

to discuss ways to increase quality• Inventory

– The stock of raw materials, inputs, and component parts that an organization has on hand at a particular time.

• Just-in-Time (JIT) inventory systems– A system in which parts or supplies arrive

at an organization when they are needed and not before.








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• Incorporates Definition of Management and Approaches to the Study of Management

• MANAGEMENT: A Contingency Approach to Decision-Making about the allocation of resources for the Ongoing Improvement of the Efficiency and Effectiveness of the Organizational Value Chain Process

Title of My Book








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FOUNDATIONS OF MANAGEMENTFall 2008 - The End

Dr. Eliot S. Elfner

Professor of Business Administration

St. Norbert College

UNIT I – Introduction to Management - Definition of Management - Efficiency and Effectiveness -...

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