What is Management?

2. 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

3. The Management Pyramid 2% 5-8% • Middle Management • Department head • Sales manager • Top Management • Chairperson of the board • Chief executive officer (CEO) • Chief operating officer (COO) • Senior vice presidents • Supervisory Management • Foreperson • Crew leader • Store manager Organizational Pyramid 92% Supervisory Management

4. Management Tasks/Process • 5 Major Tasks Performed: • Planning • Organizing • Staffing • Leading • Controlling

5. 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

6. 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

7. 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

8. 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

9. 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

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

11. Roles & Management • Interpersonal • Being a friend • Inspire & motivate • Coach & mentor • Brokering problems • Lead by example

12. Roles & Management • Informational • Provide knowledge & expertise • Offering advice and counsel • Collect and share information • Investigate issues • Gauge intensity

13. Roles & Management • Decision Making • Weigh alternatives • Recognize and evaluate opportunities and related costs • Overcome unexpected changes • Choose options with logic • Deal with problems immediately

14. 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

15. Conceptual, Human Relations, and Technical Skills • Human Relation Skills • Need to work well together • Resolving conflicts • Forming relationships 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

16. Conceptual, Human Relations, and Technical Skills

17. 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

18. 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

19. 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

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

21. 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

22. Frederick W. Taylor and Scientific Management • Scientific management seeks to increase productivity and make work easier by carefully studying work procedures and determining the best methods for performing particular tasks

23. Frederick W. Taylor and Scientific Management Classical Management • Used experiments to improve • Employees need: • Clear directions • Close supervision • Productivity means using the least steps to make something, having the most efficient layouts for the work, and implementing fastest work procedures to complete tasks • Should be paid by piece rates • Employees paid for amount of production

24. Frederick W. Taylor and Scientific Management Henry Ford followed Taylor’s work • Created the assembly line • Mass production lowered costs • Could price car low enough to attract more customers • Every part was counted, production was timed • Paid a daily wage of $5 when the average was $2.50 • This allowed workers to become customers • Low morale & injuries resulted • Repetition caused boredom • High turnover

25. Maslow’s Hierarchy of Needs

27. Applying Maslow’s Theory • At the lowest level, workers are motivated by basic needs • Wages or salary, physical conditions • Safety or security needs • Providing insurance, retirement benefits, job security • Safe from physical, psychological, or financial harm

28. Applying Maslow’s Theory • At the lowest level, workers are motivated by basic needs • Wages or salary, physical conditions • Safety or security needs • Providing insurance, retirement benefits, job security • Safe from physical, psychological, or financial harm

29. Applying Maslow’s Theory • Social needs • Provide a work environment in which colleagues interact • Company lunch rooms, company retreats • Status needs • Provide workers with signs of recognition that are visible to others • Job titles, private offices, designated parking spaces, awards, promotions

30. Applying Maslow’s Theory • Socialneeds • Provide a work environment in which colleagues interact • Company lunch rooms, company retreats • Status needs • Provide workers with signs of recognition that are visible to others • Job titles, private offices, designated parking spaces, awards, promotions

31. Applying Maslow’s Theory to Management • Self-fulfillment needs • Provide employees with opportunities to be creative at work • Include employees in decision making • Example • ITT’s Ring of Quality Control: Gave awards to employees for ideas

32. Theory X • Assumes that people are basically lazy and will avoid working if they can • Very pessimistic about workers • Work is a burden • Managers impose strict rules and make sure that all important decision are make only by them • Employees must be coerced to work harder • Very similar to Taylorism and Scientific Management

33. Theory Y • Assumes that people find satisfaction in their work • View work as enjoyable and fun • 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

34. Theory Z • William Ouchi, management researcher • Integrates Japanese and American business practices • Employees want to build cooperative relationships with their employees, superiors, colleagues and juniors • People require support in the form of job security and facilities for developing multiple skills essential for improving performance. • People value their family life, culture, traditions and institutions as much as they value their material gains. • People have well developed sense of dedication, moral obligation and self discipline. • They can make good collective decisions through consensus. • Johnsonville Foods

35. 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 • Women and minorities serve as the CEOs and Top executives of prestigious businesses • Apple, PepsiCo, Kraft, Archer Daniels, Avon, Harpo, eBay, Lucent, Dupont, IBM, XEROX, Yahoo, Morgan Stanley

36. 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

37. Women and Minoritiesin Management • Workers and managers must be sensitive to challenges presented by a multicultural workplace • Religious holidays that are celebrated at different times throughout the year by Muslims, Christians, Jews and other religious groups • Cultural awareness

38. Communication Defined What is Communication? • Communicationis the act of exchanging information.It can be used to: • inform • assess • command • influence • instruct • persuade Important in all aspects of life

39. Communication as Management Skill Communicating in the Business World • Managers communicate every day and spend about three-quarters of the day in communication with others. • Absorb information, motivate employees and communicate effectively with customers and co-workers

40. Why is this important? • Managers spend most of their time communicating, so it is important that they develop effective communication skills.

41. Interpersonal Communication Defined: An interactive process between two people that involves sending and receiving messages, verbal and non-verbal • Conflicting or inappropriate assumptions • We make assumptions about what is being said and we need to be sure we understand and are understood

42. Interpersonal Communication • Semantics (Idioms) (Presuppositions) • Science or study of the meaning of words and symbols • One word might invite many interpretations • Technical language • Perception • Emotions • How we feel affects the way we send or receive messages Ever send an e-mail when you were angry or tired?

43. The Planning Process • Planning: the process of deciding which objectives or goals to pursue during a future time period and how to achieve those objectives. • Primary management function

44. Formal Planning • Defined: The systematic studying of an issue and the preparation of a written document to deal with the problem. • Formal Plan: Defined: a written, documented plan developed through an identifiable process • Levels of sophistication • Depends on the needs and organization

45. Types of Planning • Formal planning • Functional plans • Long range • Short range • Operational planning • Strategic planning • Contingency planning

46. Formal Planning • Functional Plans • Most frequently encountered types • Sales and marketing • Productions • Financial • Personnel

47. Formal Planning • Planning Horizons (Timeframes): • The planning horizon is the amount of time an organization will look into the future when preparing a strategic plan. • Many commercial companies use a five-year planning horizon, but other organizations have to use a much longer planning horizon to form effective plans. • Auto Industry (R&D)

48. Formal Planning • Planning Horizons: • Short-rangeplanscover up-to a one-year period of time • Intermediate planscover the time span between short-range and long-range • Usually one to three or one to fiveyears • Long-rangeplanscover at least a three-to-five year period of time and beyond

49. Operational Short-range planning Focuses on forming ideas for dealing with specific functions in the company Ex: production schedules and day-to-day operations Strategic Long-range planning Done by highest management levels President, vice-president, chief operating officer Affects many parts of the organization Operational vs. Strategic Plans

50. Strategic Planning • Long-term >3 years, Usually up to 5 years • More than 5 years is difficult to manage changes w/o adjustment • Begins with a SWOT Analysis • Exam of Internal Strengths and Weaknesses • Exam of External Opportunities and Threats