Learning Objectives. 1.1 Describe the management process and why it is important.

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2 Learning Objectives 1.1 Describe the management process and why it is important. 1.2 Identify and differentiate between the levels of management in an organization. 1.3 Describe the key principles of management and explain how they contribute to managerial success. 1.4 Identify the key characteristics and competencies that managers should possess. 1.5 Describe the criteria used to measure managerial performance. 1.6 Differentiate between internal and external factors that impact the work of managers. 1.7 Identify influential thought leaders and their contributions to the management profession.

3 What is Management?

4 Management is the process of obtaining, deploying and utilizing a variety of essential resources in support of an organization s objectives.

5 Manager or Supervisor What s the Difference? Manager An individual who plans, organizes, staffs, directs and controls the work of others in an organization. Supervisor A type of manager who is in charge of, and coordinates the activities of, a group of employees engaged in related activities within a unit of an organization. Supervisors typically manage non-managerial employees. Supervisors perform the same functions (planning, organizing, staffing, directing, and controlling), to a greater or lesser degree, as all other managers in an organization.

6 5 Skills of the Management Process 1) Planning setting goals and objectives and converting them into specific plans. 2) Organizing lining up available resources, designing the structure of the department, and dividing the work into jobs. 3) Staffing determining the number and kinds of employees needed, then interviewing, selecting, and training employee to fill needs. 4) Leading providing motivation, direction, and leadership. 5) Controlling measuring results and making adjustments when actual results vary from expected.

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8 How are Managerial Levels Different? Executives top level managers who establish broad plans, objectives, and strategies for the business. Middle Managers plan and implement programs to carry out the objectives set by executives by directing supervisory managers. Supervisory Managers plan and direct the work of nonmanagerial employees at the operational level of the organization. First-level managers typically have only nonmanagerial employees reporting to them. Second-level managers typically supervisors and nonmanagerial employees reporting to them.

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10 Managers become managers by thinking and acting like managers. They: Take a professional, disciplined approach to the work environment. Think in a systematic way. Approach work positively, rather than passively. Accept responsibility for improving operations. Make task assignments. Solve problems and make decisions. Understand their involvement in complex organizational activities.

11 Newly Appointed Manager Tips Accept relationships with co-workers will be different. Recognize that change can create problems, and that change should be introduced slowly and carefully. Don t play favorites among employees. Do your homework in order to provide a factual basis for decisions. Invite and encourage knowledgeable employees to take initiative. Communicate in all directions. Don t be afraid to ask for help. Take care of yourself mentally, emotionally and physically.

12 Management Principles Work should be divided so that each person performs a specialized portion. This is called division of work Managers have the right to give orders and instructions, but must accept responsibility for having the work done right. Managers are responsible for discipline and morale, but they must also offer something of value. An individual should have only one boss. This is called unity of command. There should be one master plan or set of overriding goals. This is called unity of direction.

13 Management Principles - continued All individuals, especially managers, must place their interests second to those of the organization. Pay and rewards should reflect a person s efforts and contributions to the organization. Instructions should flow down a chain of command from the higher manager to the lower one. Employees should be treated equally and fairly. This is called equity. Managers should encourage initiative among employees.

14 Managerial Job Roles Technical Skills job know-how; knowledge of the industry and its particular processes, equipment, and problems. Administrative Skills knowledge of the entire organization and how it is coordinated, knowledge of its information and records system, capacity to interact with key constituents (often called stakeholders), and ability to plan and control work. Interpersonal Skills knowledge of human behavior and the ability to work effectively with individuals and groups peers and superiors as well as subordinates.

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16 Where Do New Managers Come From? Three out of four managers are promoted from within: Long Service (have held many jobs). Much more education than those they supervise. The best and most experienced employees. Of the managers that are not promoted from within: Ten percent are hired from college or a technical school after completing company-sponsored training. Fifteen percent are hired from another company.

17 Most Sought After Qualities in Managers Job Related Technical Competence Career-related Competence Personal Characteristics Job knowledge Problem solving Integrity and credibility Grasp of financial information Decision making Tenacity, dedication, and perseverance Results orientation Communication Flexibility Leadership Rapid and willing learner Ability to adapt to change Capacity to build a cohesive team Demonstrated ability to get along with people Capacity to present oneself professionally in public Ethics and values Risk-taking propensity Willingness to take initiative Tolerance for stress Positive attitude Dependability and reliability Creativity Energy and good health

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19 How is Managerial Performance Judged? Management of Resources Facilities and Equipment Information Technology Human Resources Money Attainment of Results Quantity Quality and Workmanship Costs and Budget Control Management of Human Resources

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21 Today s Managerial Pressures Technology, existing and changing Legal Restrictions Organizational policies and procedures Pressures for meeting quality, quantity, cost control goals Employee expectations for work-life balance, job control Globalization Changes in the workforce Economic uncertainty

22 Influential Thought Leaders from the Past

23 Frederick W. Taylor ( ) The father of scientific management Recognized for: Analyzing work tasks to find one best way to perform and teaching people that way Developing the time and motion study as a metric for efficiency and productivity Impacting quality standards

24 Dale Carnegie ( ) Known for his famous courses which provide a common sense approach to self-improvement, salesmanship, and public speaking. Authored one of the most popular books in history, How to Win Friends and Influence People Taught millions how to achieve self-confidence and well-hones interpersonal skills. His simple, effective techniques have proven enduring and become part of the American culture.

25 Dale Carnegie ( ) Rules on how to win friends include: Show a genuine interest in other people Be happy and positive Remember that people love hearing the sound of their own name Listen to other people and develop good listening skills Talk about others interests rather than your own Give others a sincere sense of their importance.

26 Dale Carnegie ( ) Rules on how to influence people include: To get the best of a situation, avoid arguments. Always listen to others opinions and never tell anyone they are wrong. Admit if you are wrong. Show friendliness. Make statements that the other person can agree with. Let the other person talk more than you.

27 Dale Carnegie ( ) More of Carnegie s rules on how to influence people: Make the other person feel that an idea is their own. See the other person s point of view. Show empathy for others ideas and desires. Infuse some drama into your ideas. Appeal to the better nature of others. Finish with a challenge.

28 W. Edwards Deming ( ) Credited with improving production in the US by applying statistical methods to enhance product design, quality, testing and global sales. Often referred to as the father of quality. Recognized for: Defining quality: Quality = Results of work efforts/ Total costs The Deming System of Profound Knowledge Jump starting quality movement at Ford Motor Company

29 Peter F Drucker ( ) Invented management as a discipline worthy of study Gave management of large firms the essential tools to deal with enormity, complexity, and growing global reach. Often referred to as the father of management theory and organizational practice. Predicted many major developments of the 20 th century.

30 Peter F Drucker ( ) Recognized for: Popularizing the system of goal setting called Management by Objectives (MBO) Coining the term knowledge worker Viewing employees as assets or resources and not liabilities Believing that managers cannot motivate people because people motivate themselves

31 C.K. Prahalad ( ) Known globally and consulted by the top management of many of the world s foremost companies Researched corporate strategy and the role of top management in large, multinational corporations. Coined the term core competency. Promoted the role business can play in tackling world poverty.

32 Influential Thought Leaders from the Present

33 Ken Blanchard Know for the Hersey-Blanchard Situational Leadership Model: Leaders and managers should be flexible and adjust their leadership style according to the readiness of their followers and employees. Readiness: The extend to which a follower possesses the ability and willingness to complete a task. Employees with high readiness require a different leadership style than those with low readiness. Not strongly supported by scientific research.

34 Marcus Buckingham Worked to uncover the key drivers of great performance and the factors that differentiate high performing teams. Conceived the strengths-based approach to management. Noted Publications: First Break all the Rules (1999) Now Discover Your Strengths (2001) One Thing You Need to Know (2005) Go Put Your Strengths to Work (2007) The Truth About You (2008)

35 Jim C. Collins Researched how companies grow, how they attain superior performance, and what takes a company from good to great. Found that an average company can become great by focusing on its field of competence and implementing level 5 leadership. Level 5 leadership leadership by persons who possess humility and a fearless drive to succeed.

36 Stephen R. Covey Authored one of the most influential self-help books of the 20 th century, The Seven Habits of Highly Effective People. Identified Seven Habits shared by all truly effective people which can be learned and lead to personal success: Be proactive Begin with the end in mind Put first things first Seek to understand, then be understood Think win/win Synergize Sharpen the saw

37 John P. Kotter Explores the new rules of leadership and the importance of lifelong learning. Developed the Eight Step method for leading change: Establish a sense of urgency Create the guiding coalition Develop a vision and strategy Communicate the change vision Empower broad based action Generate short-term wins Consolidate change and produce more change Anchor new approaches to the culture

38 John Maxwell Committed to developing leaders of excellence and integrity. Leadership learning is a daily commitment to leading with integrity, discipline, vision, and experience. Guiding philosophy: everything rises and falls on leadership. The traits that are the raw material of leadership can be acquired. Maxwell s Five Levels of Leadership: Position Permission Production People Development Personhood

39 Henry Mintzberg Promotes educating managers with action learning and problem solving. His theory on Organization Forms describes the six parts of an organization: The strategic apex (top management) Middle line (middle management) Operating core (operations) Technostucture (systems and processes) Support staff Ideology (norms, values, and culture) A strong advocate against management as a science.

40 Tom J. Peters Led the way in preparing management for an era of staggering change, starting in the mid-1970s. Focuses on basic drivers of business success, rather than just the numbers. Advocates change and reinvention. Recognized for: The pursuit of excellence Passionate leadership Acquiring and developing the best talent

41 Peter Senge Popularized techniques for stimulating problem solving and creative thinking among managers. Recognized for: Developing the concept of a learning organization as a dynamic system in a constant state of adaptation and improvement. Adopting systems thinking as the cornerstone of the learning organization. Promoting shared vision as a framework for addressing problems and opportunities.

42 Jack Welch Former Chief Executive Officer (CEO) of General Electric Has been described as the greatest manager in modern times. Defines successful leaders as those who grow others and cautions leaders about the real purpose of their job to focus on employees, not themselves Recognized for his management philosophies: Managing less is better. Don t get bogged down in over managing Manage by creating a vision them make sure that employees run with that vision. Lead, don t manage, then get out of the way. Let employees do their jobs without interference Instill confidence. Treat employees with respect in order to build their confidence in your leadership.