ES MGMT
Introduction to Management
McGraw-Hill/Irwin
Contemporary Management, 5/e
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
1. Describe what management is, why management is
important, what managers do, and how managers
utilize organizational resources efficiently and
effectively to achieve organizational goals
2. Distinguish among planning, organizing, leading,
and controlling (the four principal managerial tasks),
and explain how managers’ ability to handle each
one affects organizational performance
1-2
Learning Objectives
3. Differentiate among three levels of management, and
understand the tasks and responsibilities of managers
at different levels in the organizational hierarchy
4. Distinguish between three kinds of managerial skill,
and explain why managers are divided into different
departments to perform their tasks more efficiently and
effectively.
1-3
What is Management?
• All managers work in organizations
• Organizations – collections of people
who work together and coordinate their
actions to achieve a wide variety of goals
1-4
Question?
Who is responsible for administering the
use of an organization’s resources to
meet its goals?
A. Team leader
B. Manager
C. President
D. Rank-and-file employee
1-5
Managers
Managers –
– The people responsible for supervising the
use of an organization’s resources to meet
its goals
1-6
What is Management?
The planning, organizing, leading, and
controlling of human and other resources
to achieve organizational goals effectively
and efficiently
1-7
What is Management?
– Resources include people, skills, know-how
and experience, machinery, raw materials,
computers and IT, patents, financial capital,
and loyal customers and employees
1-8
Organizational Performance
A measure of how efficiently and effectively
managers use available resources to
satisfy customers and achieve
organizational goals
1-9
Figure 1.1
1-10
Organizational Performance
Efficiency
– A measure of how well or how productively
resources are used to achieve a goal
Effectiveness
– A measure of the appropriateness of the
goals an organization is pursuing and the
degree to which they are achieved.
1-11
Why study management?
1. The more efficient and effective use of
scarce resources that organizations
make of those resources, the greater
the relative well-being and prosperity of
people in that society
1-12
Why study management?
2. Helps people deal with their bosses
and coworkers
3. Opens a path to a well-paying job and
a satisfying
career
1-13
Managerial Tasks
• Managers at all levels in all organizations
perform each of the four essential
managerial tasks of planning, organizing,
leading, and controlling
1-14
Four Functions of Management
Figure 1.2 1-15
Organizational Structure
A formal system of task and reporting
relationships that coordinates and
motivates members so that they work
together to achieve organizational goals
1-16
Levels of Management
Figure 1.3
1-17
Areas of Managers
Department
– A group of managers and employees who
work together and possess
similar skills
or use the same
knowledge, tools,
or techniques
1-18
Levels of Management
• First line managers - Responsible for daily
supervision of the non-managerial employees who
perform many of the specific activities necessary to
produce goods and services
• Middle managers - Supervise first-line
managers. Responsible for finding the best way to
organize human and other resources to achieve
organizational goals
1-19
Levels of Management
• Top managers –
• Responsible for the performance of all departments
and have cross-departmental responsibility.
• Establish organizational goals and monitor middle
managers
• Decide how different departments should interact
• Ultimately responsible for the success or failure of
an organization
1-20
Levels of Management
• Chief executive officer (CEO) is
company’s most senior and important
manager
• Central concern is creation of a smoothly
functioning top-management team
– CEO, COO, Department heads
1-21
Relative Amount of Time That Managers Spend on
the Four Managerial Functions
Figure 1.4 1-22
Question?
What skill is the ability to understand, alter,
lead, and control the behavior of other
individuals and groups?
A. Conceptual
B. Human
C. Technical
D. Managerial
1-23
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
– Job-specific skills required to perform a particular
type of work or occupation at a high level.
1-24
Skill Types Needed
Figure 1.5 1-25
Core Competency
Specific set of departmental skills, abilities,
knowledge and experience that allows
one organization to outperform its
competitors
1-26
Restructuring
• Involves simplifying, shrinking, or
downsizing an organization’s operations
to lower operating costs
– Can reduce the morale of remaining
employees
1-27
Outsourcing
• Contracting with another company to perform
a work activity the company previously
performed itself
• Increases efficiency by lowering operating
costs, freeing up money and resources that
can now be used in more effective ways
1-28
