Management 201 Exam 1 Study GuideCHAPTER 1: Innovative Management for a Changing World- Four Functions of Managemento Planning Identifying goals for future organizational performance and deciding on the tasks and use of resources needed to attain them Defines where the organization wants to be in the future and how to get thereo Organizing Involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organizationo Leading Use of influence to motivate employees to achieve organizational goals Creating a shared culture and values, communicating goals to people throughout the organization, and infusing employees with the desire to perform at a high levelo Controlling Monitoring employees’ activities, determining whether the organization is on target toward its goals, and making corrections as necessary- Effectiveness vs. Efficiencyo An organization is a social entity that is goal directed and deliberately structuredo Effectiveness The degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do Providing a product or service that customers valueo Efficiency Refers to the amount of resources used to achieve an organizational goal Based on how much raw material, money, and people are necessary for producing a given volume of output- Management Skillso Conceptual The cognitive ability to see the organization as a whole system and the relationships among its parts Involves knowing where one’s team fits into the total organization and how the organization fits into the industry, the community, and the broader business and social environment The ability to think strategically – to take the broad, long-term view – and to identify, evaluate, and solve complex problems Particularly important for managers at the top (decision making, resource allocation, and innovation)o Human Ability to work with and through other people and to work effectively as a group member Demonstrated in the way a manager relates to other people, including the ability to motivate, facilitate, coordinate, lead, communicate, and resolve conflictso Technical Understanding of and proficiency in the performance of specific tasks Includes mastery of the methods, techniques, and equipment involved in specific functions such as engineering, manufacturing, or finance Specialized knowledge, analytical ability, and the competent use of tools and techniques to solve problems in that specific discipline Particularly important at lower organizational levels Become less important than human and conceptual skills as managers move up the hierarchy- Mintzberg’s findings about what managers really doo Typical day for a manager is NOT neatly divided into the four functions (days are busy and fragmented)o Mintzberg’s study on managerial roles: Informational Describe the activities used to maintain and develop an information network General Managers spend about 75% of their time communicating with other people Roles: Monitor: Seek and receive information, scan periodicals and reports, maintain personal contacts Disseminator: Forward information to other organization members; send memos and reports, make phone calls Spokesperson: Transmit information to outsiders through speeches, reports, memos Interpersonal Pertain to relationships with others and are related to human skills Roles: Figurehead: Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents Leader: Direct and motivate subordinates; train, counsel, and communicate with subordinates Liaison: Maintain information links both inside and outside organization, use e-mail, phone calls, meetings Decisional Pertain to those events about which the manager must make a choice and take action Often require conceptual as well as human skills Roles: Entrepreneur: initiate improvement projects, identify new ideas, delegate idea responsibility to others Disturbance Handler: Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises Resource Allocator: Decide who gets resources; schedule, budget, set priorities Negotiator: Represent department during negotiation of union contracts, sales, purchases, budgets, represent departmental interests- Management Types (Vertical vs. Horizontal)o Vertical Differences: Differences across hierarchical levels Top Managers: top of the hierarchy are responsible for the entire organization (president, chairperson, executive director, CEO, executive vice president) Responsible for setting organizational goals, defining strategies for achieving them, monitoring and interpreting the external environment, and making decisions that affect the entire organization (long-term communication for a shared vision for the organization, shaping corporate culture, and nurturing an entrepreneurial spirit that can help the company innovative and keep pace with rapid change). Middle Managers: work at middle levels of the organization and are responsible for business units and major departments (department head, division head, manager of quality control, and director of the research lab) Responsible for implementing the overall strategies and policies defined by top managers. They are generally more concerned with the near future rather than with long-range planning. First-Line Managers: Directly responsible for the production of goods and services (supervisor, line manager, section chief, and office manager) Primary concern is the application of rules and procedures to achieve production, provide technical assistance, and motivate subordinates (day-to-day goals)o Horizontal Differences: Differences across the organization Functional Managers: Responsible for departments that perform a single functional task and have employees with similar training and skills (advertising, sales, finance, human resources, manufacturing, and accounting) Line Managers: responsible for the manufacturing and marketing departments that make or sell the product or service Staff Manager: in charge of departments such as finance and human resources that support line departments General Managers: Responsible for several departments that perform different functions (self-contained division) Project Managers: also have general management