MGT 3200 Test Chapter 1 Invitation to Management 10 05 2014 Management process of achieving desired results through the efficient use of human material resources through the utilization of effectiveness efficiency 2 Key Concerns of Management o Effectiveness o Efficiency What is effectiveness efficiency concerned with Effectiveness is concerned with doing the right thing in the right time in the right way goal attainment Efficiency is concerned with reducing waste or minimizing resource costs since many resources are scarce Getting more bang for the buck How are effectiveness efficiency related More concerned with effectiveness as its harder to cut cost and maintain goals Effective companies are efficient Human Resources is an important resource to managers Intelligence incompetence jealously threat Is management an art science or both Both It is a science because we develop theories of managing then test them using scientific method w empirical data It is an art because its an extension of people s personalities it can not all be taught there are many different management styles Equifinality many different roads to success many management styles Why is management important and still used today Industrial Revolution changed how work was performed dividing up labor which caused a need for managers o Basic change in the Industrial Revolution Skilled craftsman use of machinery division of skilled o What happened to productivity supply prices demand as a result of the industrial revolution Production increased prices decreased demand labor increased Owners used to do all the managing Craftsman didn t need managers because they could manage themselves but machines needed coordination According to Drucker the most pivotal even of our time was Switch from owner manager to professional manager Why do most business fail Poor management First Line Manager ensures that the plans developed by top managers middle managers are implemented by laborers w minimum cost Foemen Supervisor Interpret and integrate plans Middle Level Manager taking plans from top level management put them into action Plant Manager Department Head Division Head Corporate Downsizing cutting cost firing efficiency oriented often done by firing middle management Staff management is farmed off to consulting firms everyone else that remains does more work Supervisor Syndrome workers become more stressed overworked think they are next to leave since their friend s were just fired productivity decreases Top Manager Plan and legitimize for the organization CEO CFO CIO chairman of board executive vice president Line Manager power over production have all the power exist at all levels of the production pyramid Staff Manager gives support guidance most often middle managers Administrator nonprofit companies Manger for profit companies 5 Functions of Management Planning setting goals steps to get there Organizing dividing up work making sure they work together Staffing recruiting selecting employees Leading motivate communicate resolve conflicts Controlling giving feedback o Planning first thing you must do gives directions to all other functions o 3 Aspects of Controlling Monitor Performance Measure actual results feedback results on performances Taking corrective action Siamese Twins of Management planning controlling Important functions of managers First Line Management staffing leading Middle Manager organizing Top planning Mintzberg identified 3 managerial roles Interpersonal develop maintain positive relationships w others Informational receive information than analyze it Decisional using information to solve problems or take advantage of opportunities Mintzberg o What gives rise to 3 managerial roles according to Managers authority to give rise to status What are 3 managerial skills identified by Katz Technical knowledge expertise method Human ability to work well w others communications leadership empathy self awareness Conceptual ability to problem solve see the big picture forecast o Skills apply to different managers Conceptual Top managers planning Technical First Line Managers most important Human equally important at all levels What skill is most difficult to develop Conceptual Skills because you need to be smart have experience it takes time to develop these skills According to Lutherans 1988 are effective managers successful managers in general No effective managers were not usually promoted rapidly through the organization the ones that networked were the ones who moved up What percent of effective managers are successful 10 percent Buckingham and Coffman s 4 Levels of Customer Service Accuracy customers expect their order to be correct and the price Availability customers expect the business to be open when they changed was the one agreed can use it and or have problems Partnership customers want the business to reach out to them be responsive to their needs and understand their perspective Advice Customers feel the closest bond to organizations that help them learn This is the highest level of customer service o The first 2 merely prevent customer dissatisfaction and the last 2 create customer satisfaction What activity do effective successful managers spend the majority of their time Effective manage down communication Successful networking Derailed Executives insensitive to people Chapter 2 Environment of Management 3 basic characteristics of an open system Input raw materials from suppliers Transformation production of goods Output finished goods services Cyclical Nature of the Transformation Process customers suppliers are most important Negative Entropy trying to prevent the company from dying Buffering the Technical Core stability in production Role Differentiation Specialization as an open systems grow develop organizations need more specialized departments Synergy teamwork whole better than sum of its parts 2 2 5 Equifinality many roads to success 5 subsets of an organization Production transform raw materials to goods services input output Boundary Spanning buying from suppliers selling to suppliers Adaptive research development Maintenance smooth operation unkeep organization Facility Managerial top and middle management plans legitimize is top services LSU middle organizers What are 2 major dependencies and threats in the external environment Dependencies Customers Suppliers Threats Competition Customers can cut into your profitability can demand lower prices better quality Organizations influence