1. © 2007 Thomson/South-Western. All rights reserved.© 2007 Thomson/South-Western. All rights reserved.
PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook
The University of West AlabamaThe University of West Alabama
ManagementManagement
and Managersand Managers
ChapterChapter
11
Part 1 Meeting the Challenges of the 21st CenturyPart 1 Meeting the Challenges of the 21st Century

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1.1. Define what management is.Define what management is.
2.2. Identify and explain the basic managerial functions.Identify and explain the basic managerial functions.
3.3. Understand the roles that managers play.Understand the roles that managers play.
4.4. Discuss the scope of responsibilities of functionalDiscuss the scope of responsibilities of functional
and general managers.and general managers.
5.5. Describe the three levels of managers in terms ofDescribe the three levels of managers in terms of
the skills they need and the activities in which theythe skills they need and the activities in which they
are involved.are involved.
6.6. Identify major changes in the 21st. century andIdentify major changes in the 21st. century and
explain how they will affect management ofexplain how they will affect management of
organizations.organizations.
LEARNING OBJECTIVESLEARNING OBJECTIVES
When you have finished studying this chapter, youWhen you have finished studying this chapter, you
should be able to:should be able to:

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LEARNING OBJECTIVESLEARNING OBJECTIVES (cont’d)(cont’d)
7.7. Explain the interactions between all of the majorExplain the interactions between all of the major
functions that managers perform; the interactionsfunctions that managers perform; the interactions
between planning, organizing, leading, andbetween planning, organizing, leading, and
controlling.controlling.
8.8. Explain why it is important to study management.Explain why it is important to study management.
When you have finished studying this chapter, youWhen you have finished studying this chapter, you
should be able to:should be able to:

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What is Management?What is Management?
• The Classic DefinitionThe Classic Definition
 The art of getting things done through people.The art of getting things done through people.
––Mary Parker FollettMary Parker Follett
• A Broader DefinitionA Broader Definition
 The process of administering and coordinatingThe process of administering and coordinating
resources effectively, efficiently, and in an effort toresources effectively, efficiently, and in an effort to
achieve the goals of the organization.achieve the goals of the organization.

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Effectiveness versus EfficiencyEffectiveness versus Efficiency
• EffectivenessEffectiveness
 Achieved when the organization pursues appropriateAchieved when the organization pursues appropriate
goals.goals.
 This means “doing the right things.”This means “doing the right things.”
• EfficiencyEfficiency
 Achieved by using the fewest inputs (e.g., people andAchieved by using the fewest inputs (e.g., people and
money) to generate a given output.money) to generate a given output.
 This means “doing things right.”This means “doing things right.”
• The end result of effective and efficientThe end result of effective and efficient
management ismanagement is organizational successorganizational success..

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Management TheoryManagement Theory
• It is critical for managers to be able to leadIt is critical for managers to be able to lead
people through the fast pace of change.people through the fast pace of change.
 Leadership is about coping with both complexity andLeadership is about coping with both complexity and
change.change.
 As change becomes more dynamic and rapid,As change becomes more dynamic and rapid,
managers at all levels must hone their leadershipmanagers at all levels must hone their leadership
skills.skills.
 Therefore, leaders are managers and managers areTherefore, leaders are managers and managers are
leaders.leaders.

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The OrganizationThe Organization
• An OrganizationAn Organization
 A group of individuals who work together towardA group of individuals who work together toward
common goals.common goals.
• What do all organizations have in common?What do all organizations have in common?
 They are composed of people whose efforts must beThey are composed of people whose efforts must be
coordinated if the organization is to accomplish itscoordinated if the organization is to accomplish its
goals.goals.

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Figure 1.Figure 1.11 The Management ProcessThe Management Process

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Planning And OrganizingPlanning And Organizing
• PlanningPlanning
 Setting goals and defining the actions necessary toSetting goals and defining the actions necessary to
achieve those goals.achieve those goals.
• OrganizingOrganizing
 The process of determining the tasks to be done, whoThe process of determining the tasks to be done, who
will do them, and how those tasks will be managedwill do them, and how those tasks will be managed
and coordinated.and coordinated.

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LeadingLeading
• LeadershipLeadership
 The capacity to direct and motivate the members ofThe capacity to direct and motivate the members of
work groups toward the accomplishment ofwork groups toward the accomplishment of
organizational goals.organizational goals.
• Leadership Skills:Leadership Skills:
 Understanding individual/group behavior dynamicsUnderstanding individual/group behavior dynamics
 Having the ability to motivate employeesHaving the ability to motivate employees
 Being an effective communicatorBeing an effective communicator
 Being able to envision future and share that visionBeing able to envision future and share that vision

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ControllingControlling
• Monitoring the performance of the organizationMonitoring the performance of the organization
and its progress in implementing strategic andand its progress in implementing strategic and
operational plans.operational plans.
 Identifying deviations between planned and actualIdentifying deviations between planned and actual
results.results.
 Taking corrective actionTaking corrective action
 Ensuring that the organization is moving toward theEnsuring that the organization is moving toward the
achievement of its goals.achievement of its goals.

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ManagersManagers
• Managers are the people who plan, organize, lead,Managers are the people who plan, organize, lead,
and control the activities of the organization so thatand control the activities of the organization so that
its goals can be achieved.its goals can be achieved.

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Figure 1.Figure 1.22 Mintzberg’s Managerial RolesMintzberg’s Managerial Roles

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Mintzberg’s Managerial RolesMintzberg’s Managerial Roles
• Interpersonal RolesInterpersonal Roles
 The manager’s responsibility for managingThe manager’s responsibility for managing
relationships with organizational members and otherrelationships with organizational members and other
constituents:constituents:
 FigureheadFigurehead
 LeaderLeader
 LiaisonLiaison

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Mintzberg’s Managerial RolesMintzberg’s Managerial Roles (cont’d)(cont’d)
• Informational RolesInformational Roles
 The manager’s responsibility for gathering andThe manager’s responsibility for gathering and
disseminating information to the stakeholders of thedisseminating information to the stakeholders of the
organization:organization:
 MonitorMonitor
 DisseminatorDisseminator
 SpokespersonSpokesperson

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Mintzberg’s Managerial RolesMintzberg’s Managerial Roles (cont’d)(cont’d)
• Decisional RolesDecisional Roles
 The manager’s responsibility for processingThe manager’s responsibility for processing
information and reaching conclusions:information and reaching conclusions:
 EntrepreneurEntrepreneur
 Disturbance handlerDisturbance handler
 Resource allocatorResource allocator
 NegotiatorNegotiator

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Chief ExecutiveChief Executive
General Parts Inc.General Parts Inc.
Plant
Manager
Service
Manager
Account
Manager
Payroll
Manager
A functional manager is
responsible for a work group
segmented by function.
A functional manager is
responsible for a work group
segmented by function.
VP ofVP of
ProductionProduction
VP of
Finance
Scope of Responsibility:Scope of Responsibility:
Functional and General ManagersFunctional and General Managers
A general manager is
responsible for several
functional work groups.
A general manager is
responsible for several
functional work groups.

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Types of ManagersTypes of Managers
• Functional ManagerFunctional Manager
 A manager who is responsible for managing a workA manager who is responsible for managing a work
unit that is grouped based on the function served.unit that is grouped based on the function served.
• General ManagerGeneral Manager
 A manager who is responsible for managing severalA manager who is responsible for managing several
different departments that are responsible for differentdifferent departments that are responsible for different
tasks.tasks.
• First-line managerFirst-line manager
 The manager who supervises the operationalThe manager who supervises the operational
employees.employees.

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Figure 1.Figure 1.33 Managerial LevelsManagerial Levels

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Figure 1.Figure 1.44 Skills Needed at Different Levels of ManagementSkills Needed at Different Levels of Management

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Management SkillsManagement Skills
• Technical SkillsTechnical Skills
 The ability to utilize the knowledge of tools,The ability to utilize the knowledge of tools,
techniques, and procedures that are specific to atechniques, and procedures that are specific to a
particular field.particular field.
• Human SkillsHuman Skills
 The ability to work effectively with one’s own workThe ability to work effectively with one’s own work
group as well as others within the organization.group as well as others within the organization.
• Conceptual SkillsConceptual Skills
 The ability to process information about theThe ability to process information about the
internal/external environment of the organization andinternal/external environment of the organization and
determine its implications.determine its implications.

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The New Manager/Leader ProfileThe New Manager/Leader Profile
• Managers who:Managers who:
 Are no longer “the boss,” rather they act as sponsors,Are no longer “the boss,” rather they act as sponsors,
team leaders, or internal consultants.team leaders, or internal consultants.
 No longer control from the top of the pyramid; nor tryNo longer control from the top of the pyramid; nor try
to control the action from the sidelines.to control the action from the sidelines.
 Empower individual employees to do what isEmpower individual employees to do what is
necessary to achieve goals.necessary to achieve goals.
 Make sure that employees have the resources to getMake sure that employees have the resources to get
the job done.the job done.

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Managing in the 21st CenturyManaging in the 21st Century
• What’s different?What’s different?
 The rate of change continues to increaseThe rate of change continues to increase
• What’s the same?What’s the same?
 The same basic business, economic, and managerialThe same basic business, economic, and managerial
principles still applyprinciples still apply
• Important change factors:Important change factors:
 The Internet and information technologyThe Internet and information technology
 Increasing globalizationIncreasing globalization
 Increasing diversityIncreasing diversity
 Intellectual capitalIntellectual capital
 Increased emphasis on ethics.Increased emphasis on ethics.

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The Internet And Information TechnologyThe Internet And Information Technology
• Electronic commerce is working.Electronic commerce is working.
 E-businesses are using basic managerial andE-businesses are using basic managerial and
business principles and are profitable.business principles and are profitable.
 Traditional, brick-and-mortar businesses use of theTraditional, brick-and-mortar businesses use of the
Internet as a complement their existing businesses.Internet as a complement their existing businesses.
• Benefits of Information TechnologyBenefits of Information Technology
 Instant feedback from the marketInstant feedback from the market
 More sharing of information internallyMore sharing of information internally
 Tighter links to suppliersTighter links to suppliers
 Increased globalization and global expansionIncreased globalization and global expansion

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Increasing Globalization of the MarketplaceIncreasing Globalization of the Marketplace
• GlobalizationGlobalization
 Various companies moving to multiple countries andVarious companies moving to multiple countries and
doing business in multiple countries.doing business in multiple countries.
• The international business environmentThe international business environment
 Involves most organizationsInvolves most organizations—e—even the smallestven the smallest
business can reach a global marketplace with relativebusiness can reach a global marketplace with relative
ease.ease.
 Presents unique managerial challenges in terms ofPresents unique managerial challenges in terms of
complexity and a broader set of environmental forces.complexity and a broader set of environmental forces.

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Increasing Diversity in the WorkplaceIncreasing Diversity in the Workplace
• DiversityDiversity
 The heterogeneity of the population and work forceThe heterogeneity of the population and work force
• The challenge of diversityThe challenge of diversity
 Developing the strong organizational culture andDeveloping the strong organizational culture and
group cohesiveness required for organizationalgroup cohesiveness required for organizational
success when the workplace includes people withsuccess when the workplace includes people with
different backgrounds, from different nations, or withdifferent backgrounds, from different nations, or with
different cultural frames of reference.different cultural frames of reference.

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The Growing Importance of IntellectualThe Growing Importance of Intellectual
CapitalCapital
• Intellectual capitalIntellectual capital
 The sum and synergy of an organization’s knowledge,The sum and synergy of an organization’s knowledge,
experience, relationships, processes, discoveries,experience, relationships, processes, discoveries,
innovations, market presence and communityinnovations, market presence and community
influence.influence.
• Major categories of intellectual capitalMajor categories of intellectual capital
 Structural capitalStructural capital
 Customer capitalCustomer capital
 Human capitalHuman capital

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Categories of Intellectual CapitalCategories of Intellectual Capital
• Structural capitalStructural capital
 The accumulated knowledge of the organizationThe accumulated knowledge of the organization
represented by its patents, trademarks andrepresented by its patents, trademarks and
copyrights, proprietary databases, and systems.copyrights, proprietary databases, and systems.
• Customer capitalCustomer capital
 The value of established relationships with customersThe value of established relationships with customers
and suppliers.and suppliers.
• Human capitalHuman capital
 The cumulative skills and knowledge of theThe cumulative skills and knowledge of the
organization.organization.

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EthicsEthics
• Ethical BehaviorEthical Behavior
 Behavior that is considered by most toBehavior that is considered by most to
be acceptable.be acceptable.
• Sarbanes–Oxley ActSarbanes–Oxley Act
 Requires businesses to use certainRequires businesses to use certain
accounting rules that would prohibit theaccounting rules that would prohibit the
many financial abuses by managersmany financial abuses by managers
that came to light in recent years.that came to light in recent years.

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An Overall Framework of ManagementAn Overall Framework of Management
• External environmentExternal environment
 The setting in which an organization operates; theThe setting in which an organization operates; the
markets and industry.markets and industry.
• CompetenciesCompetencies
 The things that an organization can do well; the skillsThe things that an organization can do well; the skills
and abilities.and abilities.
• The functions of management all interact withThe functions of management all interact with
each other, and together they lead to effectiveeach other, and together they lead to effective
and efficient achievement of an organization’sand efficient achievement of an organization’s
overall goals.overall goals.

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Figure 1Figure 1–5–5 An Overall Framework of ManagementAn Overall Framework of Management

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Why Study Management?Why Study Management?
• Universal applicabilityUniversal applicability
 The basic functions that managers perform, the rolesThe basic functions that managers perform, the roles
that managers play, and the skills that managers usethat managers play, and the skills that managers use
are universal.are universal.
• Organizational needOrganizational need
 The basic functions—planning, organizing, leading,The basic functions—planning, organizing, leading,
and controlling—are required in every organization.and controlling—are required in every organization.