Summary Intro to management chapter 1.pptx

MGT209 course

1. Introduction to Management Chapter 1

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Organizations: collections of people working together and coordinate their actions to achieve a variety of org goals Managers: people responsible for supervising the use of an organization’s resources to meet its goals Resources: include people, skills, know-how and experience, machinery, raw materials, computers and IT, patents, financial capital, and loyal customers and employees Organizational goals: customer satisfaction which leads to profit Organizational Performance: measure of how efficiently and effectively managers use resources to satisfy customers and achieve org goals Management: is planning, organizing, leading, and controlling of resources to achieve organizational goals effectively and efficiently Efficiently: minimizing the use of time or resources (it makes products more affordable) Example – McDonalds fryer minimizes the use of oil and saves time Example – ZU uses only online textbooks, has sensors that detect motion to turn on the lights, and sensors in toilets to save water Effectively: choosing the right goals & achieving them Example – McDonalds breakfast. They chose the tight goal & achieved it because 30% of their sales come from breakfast Example – UAE space program had a goal of sending a shuttle to mars & they achieved it Type of efficiency and effectiveness in organizations: Low efficiency & high effectiveness Manager wasted resources, but chose the right goal & achieved it This results in expensive product, but a product that people want Example – handmade products with exotic leathers like handbags from L ouis Vuitton 2) High efficiency & effectiveness Manager didn’t waste resources, c hose the right goal, & achieved it This results in affordable product that people want Example – a certain brand of makeup, Carrefour 3) Low efficiency & low effectiveness Manager wasted resources, & chose the wrong goal This results in expensive product that people don’t want Example – expensive café that people don’t want (we have a lot) 4) High efficiency & low effectiveness Manager didn’t waste resources, but chose wrong goals This results in affordable product that people don’t want Example – N okia phones Why do we study management? 1) To make more efficient & effective use of resources 2) Learn how to deal with people (coworkers & managers) 3) Allow people to get more satisfying & better paying jobs Managerial tasks: Managers at all levels in all organizations perform each of the four essential managerial tasks of planning, organizing, leading, and controlling Four Functions of Management: Planning: choosing appropriate organizational goals & deciding how to achieve them in three steps which are: 1. Deciding which goals the organization will pursue Example – dell decided to make & sell affordable computers 2. Deciding what courses of action to adopt to attain those goals Example – dell sold computers by taking phone orders without a store so they saved money on rent & utilities 3. Deciding how to allocate organizational resources Example – dell started with 5000$ and 3 employees which are the resources to create the product Planning is difficult because it is done under uncertainty Organizing: to create a structure of working relationships that allow employees to work together to achieve organizational goals 1. Divide people into departments according to their skills, education & job Example – Hiring new employees and placing them in departments 2. Assigning managers & their responsibilities Example – Assigning a new HR manager 3. Decide how to divide organizational resources Example – Deciding each department’s budget leading: creating a vision for the organization & motivating employees by showing the value of their work in achieving the organizational vision Controlling (taking control of the results): evaluating weather the organization is achieving its goals & making corrective actions to increase performance Managerial roles: Decisional roles: Roles associated with methods managers use in planning strategy and utilizing resources Entrepreneur: decides about new programs/projects/ branch Distribution holder: deciding how to deal with a crisis Resources allocator: deciding how to distribute resources Negotiator: reaches agreements with other managers or customers Interpersonal Roles: Roles that managers assume to provide direction and supervision to both employees and the organization as a whole. Figurehead: symbolizes the organization’s vision Leader: training & motivating Liaisons: links people inside & outside the organization Informational Roles : Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization. Monitor: analyzes information Disseminator: shares information with employees Spokesperson: shares information with the public (people we see on TV, or social media) Levels of management: First line managers: supervise the daily work of employees, motivate and train them. The task that they perform the most is leading Middle managers: supervise first line managers, and organize the use of humans & other resources