marketing manager course - chapter 1 Management and Its Evolution

zPractice the four major functions of management zRecognize the interpersonal, informational, and decisional roles played by top level managers.. Successful organizations know how to ma

Chapter

Management and Its Evolution

Learning Objectives

After reading this chapter, you should be able to:

zUnderstand the roles played by individuals, teams,

and managers in carrying out company activities.

zPractice the four major functions of management

zRecognize the interpersonal, informational, and

decisional roles played by top level managers.

zApply the general skills needed to carry out

managerial responsibilities.

zIntegrate the major elements from the various

perspectives of management theory.

The performance of organizations depends to

a large extent on how their resources are allocated and their ability to adapt to changing conditions.

Successful organizations know how to manage people and resources efficiently to accomplish organizational goals and to keep those goals in tune with changes in the

external environment.

Management in the New Millennium

z A firm can be efficient by making the

best use of people, money, physical plant, and technology.

z It is ineffective if its goals do not provide

a sustained competitive advantage.

z A firm with excellent goals would fail if

it hired the wrong people, lost key contributors, relied on outdated technology, and made poor investment

Strategic Managers

Tactical Managers

Operational ManagersLevels of management

Strategic Managers

zThe firm’s senior executives with

overall responsibility for the firm.

¾ Developing the company’s goals

¾ Focus on long-term issues

¾ Emphasize the growth and overall

effectiveness of the organization

zConcerned primarily with the

interaction between the

organization and its external

environment.

Tactical Managers

zResponsible for translating the

general goals and plans

developed by strategic

managers into specific

objectives and activities.

¾Shorter time horizon

¾Coordination of resources

zThese are middle managers

Operational Managers

z Lower-level managers who supervise the

operations of the organization.

z Directly involved with non-management

employees

¾ Implementing the specific plans

developed with tactical managers.

¾ This is a critical role to the organization.

¾ Operational managers are the link

between management and management staff

non-Management Functions

zThe management function that

assesses the management

environment to set future objectives

and map out activities necessary to

achieve those objectives.

zTo be effective, the objectives of

individuals, teams, and

management should be coordinated

to support the firm’s mission.

zThe management function that

determines how the firm’s human,

financial, physical, informational,

and technical resources are

arranged and coordinated to

perform tasks to achieve desired

goals.

zThe deployment of resources to

achieve strategic goals.

zThe management function that

energizes people to contribute their

best individually and in cooperation

with other people.

zThis involves:

¾ Clearly communicating organizational goals

¾ Inspiring and motivating employees

¾ Providing an example for others to follow

¾ Guiding others

¾ Creating conditions that encourage management

of diversity

Management as a set of roles

zDay-to-day management activities are routine,

orderly, and rational.

zThese include:

¾Interpersonal roles - communication with superiors,

peers, subordinates, and people from outside the organization.

¾Information Roles - obtaining, interpreting, and giving

out information.

¾Decisional Roles - choosing among competing

Management as a set of skills

zThe four basic management functions require a set

of skills to be carried out properly.

zBecause most managerial tasks are unique,

ambiguous, and situation-specific, there is seldom

one best way to approach them.

Management as a set of skills

z Four major categories of skills will help you become a good

manager:

¾Strategic Skills - the ability to see “the big picture”, focus on

key objectives without getting mired in details, and having a sense what is happening inside and outside the company.

¾Task-Related Skills - the ability to define the best approach to

accomplish personal and organizational objectives They include consideration of all resources, including time, organizational

structure, financial resources, and people They also involve the ability to prioritize, remain flexible to make necessary changes, and ensure that value is being created

Management as a set of skills

¾People-Related Skills - getting work done through others and

with others Include the ability to delegate tasks, share information, resolve conflicts, be a team player, and work with people from very different backgrounds

¾Self-Awareness Skills - Being aware of your personal

characteristics can help you adapt to others and can help you understand why you react to them the way you do These skills can help you to avoid rushed judgments, appreciate the nuances of particular situations, size up opportunities, capitalize on your

personal strengths, and avoid situations in which you are likely to

Skills for Managerial Success

z Creating value

z Working through the organizational structure

z Allocating human resources

z Managing time efficiently

Skills for Managerial Success (continued)

z Understanding personal biases

z Internal locus of control

The Evolution of Management Thought

Early Management Thought

zEarly ideas about management strategy

¾ Sun Tzu, The Art of War

zEarly ideas about leadership

¾ Nicolò Machiavelli, The Prince

zEarly ideas about the design and organization of work

¾ Adam Smith, The Wealth of Nations

9 division of labor

The Operational Perspective

Taylor’s Four Principles of Scientific

Management

z Scientifically study each part of a task and develop the best

method of performing the task.

z Carefully select workers and train them to perform the task

by using the scientifically developed method.

z Cooperate fully with workers to ensure that they use the

proper method.

z Divide work and responsibility so that management is

responsible for planning work methods using scientific principles and workers are responsible for executing the

Key Characteristics of Weber’s Ideal

Fayol’s 14 Principles of Management

Behavioral Perspective

zThe behavioral perspective acknowledges that

psychological and social processes of human behavior

can result in improvements in productivity and work

satisfaction

¾The Hawthorne effect - when a manager shows concern for

employees, their motivation and productivity levels are likely

to improve.

¾Human Relations Approach - the relationship between

employees and a supervisor is a vital aspect of management.

9 Employee motivation

9 Leadership style

Hawthorne Effect

The discovery that paying special attention to employees motivates them to put greater effort into their jobs.

(from the Hawthorne management studies, performed from 1924 –

1932 at Western Electric Company’s plant near Chicago)

Physical Needs Need for Security Need for Social Relations Need for Self Esteem Self-Actualization

Maslow’s Hierarchy of

Needs

McGregor’s Theory X and Theory Y

zLeaders and managers who hold Theory X

assumptions believe that employees are inherently lazy and lack ambition

¾A negative perspective on human behavior

zLeaders and managers who hold Theory Y

assumptions believe that most employees do not

dislike work and want to make useful contributions to

the organization

Contemporary Management Perspectives

zSystems Theory

zContingency Theory

zThe Learning Organization Perspective

Systems Theory

zViews the organization as a system of interrelated

parts that function in a holistic way to achieve a

¾Situational characteristics (contingencies) differ

¾ Managers need to understand the key contingencies that

determine the most effective management practices in a given situation

The Learning Organization

zThe management approach based on an

organization anticipating change faster than its

counterparts to have an advantage in the market

over its competitors.

zThere are two ways organizations can learn:

¾ Experimental learning

¾ External learning