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McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 1
The Management Process
Today
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What is Management?
Management
The planning, organizing, leading, and
controlling of human and other
resources to achieve organizational
goals effectively and efficiently
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What is Management?
Managers
The people responsible for supervising the
use of an organizations resources to meet its
goals
Resources include people, skills, know-how,
machinery, raw materials, computers and IT,
and financial capital
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Management
Manager
A person who plans, organizes, leads, and
controls the work of others so that the
organization achieves its goals.
Is responsible for contribution.
Gets things done through the efforts of other people.
Is skilled at the management process.
Management Process
Refers to the managers four basic functions of
planning, organizing, leading, and controlling.
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Management Functions
Management
Functions
Planning Organizing
Leading Controlling
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Planning
Planning
Process of identifying and selecting
appropriate goals and courses of action

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Organizing
Organizing
structuring working relationships in a way that
allows organizational members to interact and
cooperate to achieve organizational goals
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Leading
Leading
Articulating a clear vision and energizing and
enabling organizational members so they
understand the part they play in attaining
organizational goals
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Controlling
Controlling
Evaluating how well an organization is
achieving its goals and taking action to
maintain or improve performance

The outcome of the control process is the
ability to measure performance accurately
and regulate efficiency and effectiveness
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Management Process
ORGANIZATIONAL
GOALS
Planning
Leading
HUMAN
RESOURCES
INFORMATION
RESOURCES
PHYSICAL
RESOURCES
FINANCIAL
RESOURCES
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Organization
A group of people with formally assigned
roles who work together to achieve the
stated goals of the group.
Characteristics:
Common purpose/goals
Organizational structure
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Organizations as Systems

Outputs:
Products
Services
Inputs:
Material
Capital
Human
Structure
Task Technology
People
(Actors)
Organizational Boundary
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Organizational Performance
Efficiency
A measure of how well or productively
resources are used to achieve a goal.
Effectiveness
A measure of the appropriateness of the goals
an organization is pursuing and the degree to
which they are achieved.


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Levels of Management
First line managers
Responsible for the daily supervision of non-
managerial employees
Middle managers
Supervise first-line managers and is
responsible for finding the best way to use
resources to achieve organizational goals
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Levels of Management
Top managers
establish organizational goals, decide how
departments should interact, and monitor the
performance of middle managers
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Types of Managers
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Management Skills
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Managerial Skills
Conceptual skills
The ability to analyze and diagnose a situation
and distinguish between cause and effect.
Human skills
The ability to understand, alter, lead, and control
the behavior of other individuals and groups.
Technical skills
The specific knowledge and techniques required
to perform an organizational role.
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Technical Skills
Core competency
Specific set of skills, abilities, and experiences
that allows one organization to outperform its
competitors
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Recent Changes in
Management Practices
Restructuring
downsizing an organization by eliminating the
jobs of large numbers of top, middle, or first-
line managers and non-managerial
employees
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Recent Changes in
Management Practices
Outsourcing
contracting with another company, usually in
a low cost country abroad, to perform an
activity the company previously performed
itself
Promotes efficiency by reducing costs and
allowing an organization to make better
use of its remaining resources
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Empowerment and Self-
Managed Teams
Self-managed team
a group of employees with the responsibility
for organizing, controlling, and supervising
their own activities and for monitoring the
quality of the goods and services they provide
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Challenges for Management in
a Global Environment
Rise of Global Organizations.
Building a Competitive Advantage.
Maintaining Ethical and Socially.
Responsible Standards.
Managing a Diverse Workforce.
Practicing Global Crisis Management.
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Building Competitive
Advantage
Competitive advantage
Ability of one organization to outperform other
organizations because it produces desired
goods or services more efficiently and
effectively than they do
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Building a Competitive
Advantage
Increasing Efficiency
Increasing Quality
Increasing Speed, Flexibility, and
Innovation
Increasing Responsiveness to Customers
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Practicing Global Crisis
Management
Crisis management involves making
important choices about how to:
1. Create teams to facilitate rapid decision
making and communication
2. Establish the organizational chain of
command
3. Recruit and select the right people
4. Develop bargaining and negotiating
strategies to manage conflicts