MGMT 320

Management Process

Planning, Organizing, Leading, Controlling

Planning from Management Process

You set goals and decide how to achieve them.

Organizing from Management Process

You arrange tasks, people, and other resources to accomplish the work.

Leading from Management Process

You motivate, direct, and otherwise influence people to work hard to achieve the organization’s goals.

Controlling from Management Process

You monitor performance, compare it with goals,
and take corrective action as needed.

Levels of Management #1

Top Managers

Levels of Management #2

Middle Managers

Levels of Management #3

First-line Managers

Levels of Management #4

Team Leaders

Levels of Management #5

Non-managerial Employees

Top Managers #1

make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it.

Middle Managers #2

implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them

First-line Managers #3

make short-term operating decisions, directing the daily tasks of non-managerial personnel

Team Leaders #4

facilitate team members’ activities to help teams achieve their goals

Non-Managerial Employees #5

either work alone on tasks or with others on a variety of teams.

Technical Skills

consist of the job-specific knowledge needed to perform well in a special- ized field.

Conceptual Skills

consist of the ability to think analytically, to visualize an organization as a whole and understand how the parts work together.

Human Skills

consist of the ability to work well in cooperation with other people to get things done

Soft Skills

are interpersonal “people” skills needed for success at all levels.

Competitive advantage (Challenge #1)

is the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them.

the four areas that an organization must stay ahead in

(1) being responsive to customers, (2) innovation, (3) quality, and (4) efficiency.

Competitive advantage (Challenge #2)

Managing for Technological Advances—Dealing with the “New Normal”

Competitive advantage (Challenge #3)

Managing for Inclusion and Diversity—The Future Won’t Resemble the Past

Competitive advantage (Challenge #4)

Managing for Globalization—The Expanding Management Universe

Competitive advantage (Challenge #5)

Managing for Ethical Standards

Competitive advantage (Challenge #6)

Managing for Sustainable Development —The Business of Green

Competitive advantage (Challenge #7)

Managing for Happiness and Meaningfulness

Meaningfulness

the sense of “belonging to and serving something that you believe is bigger than the self.”

Multiplier effect

Your influence on the organization is multiplied far beyond the results that can be achieved by just one person acting alone.

First Management perspective (CH. 2)

Classical viewpoint

Second Management perspective (CH. 2)

Behavioral viewpoint

Third Management perspective (CH. 2)

Quantitative viewpoint

Fourth Management perspective (CH. 2)

Systems viewpoint

Fifth Management perspective (CH. 2)

Contingency viewpoint

Sixth Management perspective (CH. 2)

Contemporary Approaches

Classical viewpoint

emphasized finding ways to man- age work more efficiently, assumed that people are rational. It had two branches—scientific and administrative

Classical viewpoint branch “Scientific Management”

applied the scientific study of work methods to improving the productivity of individual workers. Concerned with jobs of the individuals.

Classical viewpoint branch “Scientific Management” Principle #1

Evaluate a task by scientifically studying each part of it (not by using old rule- of-thumb methods). This leads to the establishment of realistic performance goals for a job.

Classical viewpoint branch “Scientific Management” Principle #2

Carefully select workers with the right abilities for the task.

Classical viewpoint branch “Scientific Management” Principle #3

Give workers the training and incentives to do the task with the proper work methods.

Classical viewpoint branch “Scientific Management” Principle #4

Use scientific principles to plan the work methods and ease the way for workers to do their jobs.

Frederick Taylor

The father of scientific management

Classical viewpoint branch “Administrative Management”

concerned with managing the total organization.

problem with classical viewpoint

mechanistic: It tends to view humans as cogs within a machine, not taking into account the importance of human needs.

Elton Mayo

Created the “Hawthorne Effect”

Hawthorne Effect

that employees worked harder if they received added attention, if they thought that managers cared about their welfare, and that supervisors paid special attention to them.

Abraham Maslow

contributed to the Human Relations Movement

Human Relations Movement

proposed that better human relations could increase worker productivity

Theory X

represents a pessimistic, negative view of workers. In this view, workers are considered to be irresponsible, to be resistant to change, to lack ambition, to hate work, and to want to be led rather than to lead.

Theory Y

a human relations outlook—an optimistic, positive view of work- ers as capable of accepting responsibility, having self-direction and self-control, and being imaginative and creative.

A system

is a set of interrelated parts that operate together to achieve a common purpose.

systems viewpoint

regards the organization as a system of interrelated parts. By adopting this point of view, you can look at your organization both as (1) a collection of subsystems—parts making up the whole system—and (2) a part of the larger environ- ment.

First part of a system

Inputs

Second part of a system

Transformational processes

Third part of a system

Outputs

Fourth part of a system

Feedback

#1 Inputs

are the people, money, information, equipment, and materials required to produce an organization’s goods or services. Whatever goes into a system is an _____.

#2 Transformational Processes

are the organization’s capabilities in management, internal processes, and technology that are applied to converting inputs into out- puts. The main activity of the organization is to transform inputs into outputs.

#3 Outputs

are the products, services, profits, losses, employee satisfaction or dis- content, and the like that are produced by the organization. Whatever comes out of the system is an _____.

#4 Feedback

is information about the reaction of the environment to the outputs that affects the inputs. Are the customers buying or not buying the product? That information is ______.

closed system

has little interaction with its environment

open system

continually interacts with its environment

contingency viewpoint

emphasizes that a manager’s approach should vary according to—that is, be _________ on—the individual and the environmental situation.

learning organization

is an organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge.

First part of a learning organization

Creating and acquiring knowledge

Second part of a learning organization

Transferring knowledge

Third part of a learning organization

Modifying behavior

Peter Drucker

was the creator and inventor of modern management. Wrote more than 35 books and numerous other publications, received the U.S. Presidential Medal of Freedom, and achieved near rock-star status for his management ideas.

planning

is defined as setting goals and deciding how to achieve them

Strategic management

is a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals

figure 5.1 Planning and strategic management #1

Establish the mission and vision and values

figure 5.1 Planning and strategic management #2

Assess the current reality

figure 5.1 Planning and strategic management #3

Formulate the grand strategy & strategic, tactical, & operational plans

figure 5.1 Planning and strategic management #4

Implement the strategy

figure 5.1 Planning and strategic management #5

Maintain strategic control

an organization’s mission in action plans. #1 Mission statement :

“What is our reason for being?”

an organization’s mission in action plans. #2 Vision statement :

“What do we want to become?”

an organization’s mission in action plans. #3 Values statement:

“What values do we want to emphasize?”

an organization’s mission in action plans. #4 Strategic planning:

Done by top managers for the next

1–5 years

Goals

Action plans

an organization’s mission in action plans. #5 Tactical planning:

Done by middle managers
for the next 6–24 months

Goals

Action plans

an organization’s mission in action plans. #6 Operational planning:

Done by first- line managers for the next 1–52 weeks

Goals

Action plans

strategic goals

Long-term goals, They tend to span one to five years and focus on achieving the strategies identified in a company’s strategic plan

operational goals

Short-term goals, They generally span 12 months and are connected to strategic goals in a hierarchy known as a means-end chain.

means-end chain

shows how goals are connected or linked across an organization.

SMART

specific, measurable, attainable, results-oriented, and with target dates.

action plan

defines the course of action needed to achieve a stated goal.

operating plan

a plan that “breaks long-term output into short-term targets” or goals.

Cascading goals

is the process of ensuring that the strategic goals set at the top level align, or “cascade,” downward with more specific short-term goals at lower levels within an organization, including employees’ objectives and activities.

planning/control cycle

has two planning steps (1 and 2) and two control steps (3 and 4), as follows: (1) Make the plan. (2) Carry out the plan. (3) Control the direction by comparing results with the plan. (4) Control the direction by taking corrective action in two ways—namely, by (a) correcting deviations in the plan being carried out or (b) improving future plans.

Figure 5.5 first step ( #1 of Planning steps)

Make the plan

The Planning/Control cycle

Figure 5.5 second step ( #2 of Planning steps)

Carry out the plan

Figure 5.5 third step ( #1 of controlling steps)

Control the direction by comparing the results with the plan

Figure 5.5 fourth step ( #2 of controlling steps)

Control the direction in two ways:
(a) by correcting

deviations in the plan being carried out (return to
step 2), or

(b) by improving future plans (go to step 1 to start over)