1 2 Principles of Management Introduction to Management

1 -2 Principles of Management Introduction to Management and Organizations

1 -3 Management Key Concepts Organizations: People working together and coordinating their actions to achieve specific goals. Goal: A desired future condition that the organization seeks to achieve. Management: The process of using organizational resources to achieve the organization’s goals by. . . Planning, Organizing, Leading, and Controlling

1 -4 Additional Key Concepts v. Resources are organizational assets and include: Human Physical Financial, Information, v. Managers are the people responsible for supervising the use of an organization’s resources to meet its goals.

Organizational Performance • Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals. – – Efficiency: A measure of how well resources are used to achieve a goal. • Usually, managers must try to minimize the input of resources to attain the same goal. Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals? ), and the degree to which they are achieved. • Organizations are more effective when managers choose the correct goals and then achieve them.

What is management? • A set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organization’s resources (human, financial, physical, and information), with the aim of achieving organizational goals in an efficient and effective manner.

Classifying Managers ?

Classifying Managers • Levels of management Strategic Managers Tactical Managers Operational Managers

Strategic Managers l The firm’s senior executives with overall responsibility for the firm. Ø Ø Ø Developing the company’s goals Focus on long-term issues Emphasize the growth and overall effectiveness of the organization l Concerned primarily with the interaction between the organization and its external environment.

Tactical Managers l. Responsible for translating the general goals and plans developed by strategic managers into specific objectives and activities. Shorter time horizon Ø Coordination of resources Ø l. These are middle managers

Operational Managers l Lower-level managers who supervise the operations of the organization. l Directly involved with nonmanagement employees Ø Ø Ø Implementing the specific plans developed with tactical managers. This is a critical role to the organization. Operational managers are the link between management and nonmanagement staff

• At the upper levels of the organization are the top managers, who are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. These individuals typically have titles such as executive vice president, managing director, chief operating officer, or chief executive officer. • Middle managers manage the work of first-line managers and can be found between the lowest and top levels of the organization. They may have titles such as regional manager, project leader, plant manager, operations manage, store manager, or division manager. • At the lowest level of management, first-line managers manage the work of non managerial employees who typically are involved with producing the organization’s products or servicing the organization’s customers. First-line managers may be called supervisors or even shift managers, district managers, coordinator, or office managers.

Managerial Functions ?

1 -7 Managerial Functions • Henri Fayol was the first to describe the four managerial functions when he was the CEO of a large mining company in the later 1800’s. • Fayol noted managers at all levels, operating in a for profit or not for profit organization, must perform each of the functions of: q. Planning qorganizing qleading qcontrolling