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Chapter 1 Introduction to Management and  Organizations

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-1

LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter

• Who Are Managers? – Explain how managers differ from nonmanagerial  employees – Discuss how to classify managers in organizations. • What Is Management? – Define management – Explain why efficiency and effectiveness are  important to management Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-2

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter

•  What Do Managers Do? – Describe the four functions of management – Explain Mintzberg’s managerial roles – Describe Katz’s three essential managerial skills and  how the importance of these skills changes depending  on managerial level

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-3

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter

•  What Is an Organization? – Describe the characteristics of an organization – Explain how the concept of an organization is  changing •  The Challenges Managers Face – Describe the current trends and issues facing  managers Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-4

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter

• What Is Corporate Social Responsibility? – Contrast the classical and socio­economic views of  social responsibility – Discuss the role that stakeholders play in the four  approaches to social responsibility – The relationship between corporate social  responsibility and economic performance

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-5

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter

• Understanding workforce diversity – Accommodating diverse members in the organization

• Why Study Management? – Explain the universality of management concept – Discuss why an understanding of management is  important even if you don’t plan to be a manager

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-6

Who Are Managers? • Manager – Someone who works with and through other  people by coordinating their work activities in  order to accomplish organizational goals

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-7

Types of Managers • First­line Managers

– Are at the lowest level of management and manage the  work of nonmanagerial employees

• Middle Managers

– Manage the work of first­line managers

• Top Managers

– Are responsible for making organization­wide decisions  and establishing plans and goals that affect the entire  organization

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-8

Exhibit 1.1 Managerial Levels Top Managers Middle Managers First-Line Managers Nonmanagerial Employees Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-9

What Is Management? • Managerial Concerns – Efficiency • “Doing things right” – Getting the most output for the least input

– Effectiveness • “Doing the right things” – Attaining organizational goals

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-10

What Do Managers Do? • Functional Approach – Planning

• Defining goals, establishing strategies to achieve goals,  developing plans to integrate and coordinate activities

– Organizing

• Arranging work to accomplish organizational goals

– Leading

• Working with and through people to accomplish goals

– Controlling

• Monitoring, comparing, and correcting the work

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-11

Exhibit 1.2 Management Functions Planning

Organizing

Leading

Controlling Lead to

Defining goals, establishing strategy, and developing subplans to coordinate activities

Determining what needs to be done, how it will be done, and who is to do it

Directing and motivating all involved parties and resolving conflicts

Monitoring activities to ensure that they are accomplished as planned

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

Achieving the organization’s stated purpose

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What Do Managers Do? (cont’d • Mintzberg’s Management Roles Approach (Exhibit  1.3) – Interpersonal roles • Figurehead, leader, liaison

– Informational roles • Monitor, disseminator, spokesperson

– Decisional roles • Entrepreneur, disturbance handler, resource allocator,  negotiator Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-13

What Do Managers Do? (cont’d) • Skills Approach – Technical skills • Knowledge and proficiency in a specific field

– Human skills • The ability to work well with other people

– Conceptual skills • The ability to think and conceptualize about abstract and  complex situations concerning the organization Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-14

Exhibit 1.4 Skills Needed at Different Management Levels Top Managers

Conceptual Skills

Middle Managers

Human Skills Technical Skills

Lower-level Managers Importance

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-15

What Is An Organization? • An Organization Defined – A deliberate arrangement of people to  accomplish some specific purpose

• Common Characteristics of Organizations – Have a distinct purpose (goal) – Are composed of people – Have a deliberate structure Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-16

Exhibit 1.5 Characteristics of Organizations Distinct Purpose

Deliberate Structure People

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-17

Exhibit 1.6 The Changing Organization Traditional • • • • • • • • • • • • •

Stable Inflexible Job­focused Work is defined by job positions Individual­oriented Permanent jobs Command­oriented Managers always make decisions Rule­oriented Relatively homogeneous workforce Workdays defined as 9 to 5 Hierarchical relationships Work at organizational facility  during specific hours

New Organization • • • • • • • • • • • • •

Dynamic Flexible Skills­focused Work is defined in terms of tasks to  be done Team­oriented Temporary jobs Involvement­oriented Employees participate in decision  making Customer­oriented Diverse workforce Workdays have no time boundaries Lateral and networked  relationships Work anywhere, anytime 

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-18

Sizes and Types of Organizations • Managers and employees work in a variety of sizes of  organizations – Large organizations represent only 3% of the organizations in  Canada • Managers and employees work in a variety of organizations, and  the type of organization has an impact on what managers can do – Publicly held organizations – Privately held organizations – Public sector organizations – Crown Corporations – Subsidiaries of foreign organizations (e.g., Sears, Safeway,  General Motors, and Ford Motor Company) Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-19

Challenges Managers Face • Ethics

– Increased emphasis on ethics education in  university and college curriculums – Increased creation and use of codes of ethics by  businesses

• Corporate Social Responsibility

– Pursuing long­term goals that are good for  society

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-20

Corporate Social Responsibility • The Classical View – Maximize profits for the benefit of the  stockholders – Doing “social good” unjustifiably increases costs

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-21

What Is Social Responsibility? (cont’d) • The Socio­economic View

– Management should also protect and improve  society’s welfare – Corporations are responsible not only to  stockholders – Firms have a moral responsibility to larger  society “to do the right thing”

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-22

Exhibit 1.7 Approaches to Social Responsibility  

Obstructionist Approach

Defensive Approach

Accommodative Approach

Proactive Approach

Disregard for social responsibility

Minimal commitment to social responsibility

Moderate commitment to social responsibility

Strong commitment to social responsibility

No Social Responsibility

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

High Social Responsibility

1-23

Workforce Diversity • Workforce diversity – Refers to employees in organizations who are  heterogeneous in terms of gender, race, ethnicity,  or other characteristics • A global issue • Canada recognizes and celebrates differences • Managers must make organizations more accommodating

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-24

Why Study Management? • The Value of Studying Management – The universality of management • Good management is needed in all organizations

– The reality of work • Employees either manage or are managed

– Self­employment • Management is also important in running your own  business Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

1-25

Exhibit 1.8 Universal Need for Management All Sizes of Organizations Small

All Organizational Areas Manufacturing —Marketing Human Resources —Accounting Information Systems —etc.

Large

All Types of Organizations

Management Is Needed in...

Profit

Not-for-Profit

All Organization Levels Bottom

Top

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

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