MGT 3200 Chapter : INTRODUCTION TO MANAGEMENT OUTLINE Mat
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INVITATION TO MANAGEMENT (CHAPTER 1)
MGT 3200
I. WHAT IS MANAGEMENT?
A. A DEFINITION – management is the process of achieving desired
results through the efficient utilization of human and material
resources
B. TWO KEY CONCERNS – effectiveness and efficiency
• Effectiveness refers to doing the right things at the right time
• Efficiency refers to minimizing waste or reducing resources
costs
o If your efficient are you still doing the right thing
necessarily? NO
• Organizations who are efficient tend to be effective but it is
NOT a guarantee
• How are these 2 key concerns related?
• Which of these Scenarios is Better? 1) A company that is
effective but inefficient or 2) A company that is ineffective but
efficient
o Number one is better but eventually you will go down
• To determine effectiveness you look at market share
• To determine efficiency you look at cost
• On average if your efficient your effective
C. A MANAGER’S MOST IMPORTANT RESOURCE
• What’s the manager’s most important resource? 1) Material
resources, 2) Informational resources, 3) Human resources, 4)
Financial resources
• Reward and Respect Talent
• Injellitance (Northcote Parkison) = equal parts of incompetence
+ jealousy
o They don’t hire the best people because they’re afraid
they might take over their job
o Surround themselves with stupid people
• Managers need to DELEGATE!
• Whatever time you give the project it will fill it - Northcote
D. ART OR SCIENCE?
• Is there one style that will be successful? No
• Equifinality – many different roads to success
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o Autocratic – one person is making all decisions
o Democratic – manager and employees together
o Laissez faire – hands off
• Both art as practice and science as an academic
II. HOW DID MANAGEMENT BECOME IMPORTANT AND WHY
IS STILL SIGNIFICANT TODAY?
A. THE INDUSTRIAL REVOLUTION: FOREVER CHANGING
HOW WORK WAS PERFORMED
• Divide up labor, the same people are doing one task over and
over and over again (this increases your expertise in this task
making you more efficient)
• Productivity goes up and demand stays the same so prices drop
which makes consumption/demand GO UP!! CAPITALISM!
B. THE ECONOMIC EFFECTS OF THE INDUSTRIAL
REVOLUTION LEADING TO THE NEED FOR
PROFESSIONAL MANAGEMENT
• Basic chain in industrial revolution – skills of the craftsmen are
transferred to the machine which results in unskilled labors who
need to be managed
• Pivotal – owner manager to professional manager
• Economic effects
• What happens in the industrial revolution with skill levels
III. THE MANAGEMENT PYRAMID
A. FIRST-LINE MANAGERS – make sure the plans developed by
top and middle management are carried out efficiently by operative
employees (goal is EFFICIENCY)
• Caught between labor and management
B. MIDDLE MANAGERS – (plant, regional manager, department
chair, department head)
• Two “I’s” – Interpret and Integrate
o Take top management plans and interpret them for
first line and vise versa (COMMUNICATION
CHANNEL)
o Integrate means to bring together (they supervise first
line so there job is to get them all going in the right
direction)
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o First-line groups often has different goals so different
directions – so middle deals with the conflict
• Middle management has been apple cored which means that
a lot of people have been eliminated because of corporate
downsizing
• Four things that happen in corporate downsizing:
o Management levels are eliminated
o The managers who remain are asked to do more work
o The company implements new computer/information
technology
o Staff management functions are farmed out to
consulting firms
• Research on downsizing says it doesn’t and it gets too lean
and stretch employees to thin and they become burnt-out
• Survivor’s Syndrome – people who survive downsizing go
through certain emotions: feel lucky
C. TOP MANAGERS – set STRATEGY for the entire organization
• EFFECTIVENESS
• “Overall cost leadership” – good quality at a good price (ex.
Wal Mart)
• “Differentiation” – making your product different and better
so you can charge a higher price; keep volume low and have
exclusivity (keeping products to a small amount)
• Develop the overall goal and strategy
• They legitimize the organization to society
D. Each level has a different function and focus
The Job Banks caused the Big 3 to be less efficient.
The Job Banks caused the Big 3 to have more difficulty achieving
effectiveness.
Which of the following is not true concerning the Industrial Revolution?
1. There was an enormous increase in productivity.
2. The skills of the craftsmen were transferred to the machines.
3. The increase in demand required the switch from owner/manager to
professional manager.
4. Prices for goods increased as a result.
Which of the following is true concerning effectiveness and efficiency?
1. Efficiency is concerned with doing the right thing at the right time.
Document Summary
No: organizations who are efficient tend to be effective but it is. 1) material resources, 2) informational resources, 3) human resources, 4) Financial resources: reward and respect talent, injellitance (northcote parkison) = equal parts of incompetence. No: equifinality many different roads to success. Page 2 of 12: autocratic one person is making all decisions, democratic manager and employees together, laissez faire hands off, both art as practice and science as an academic. Is still significant today: the industrial revolution: forever changing. Capitalism: the economic effects of the industrial. Channel: integrate means to bring together (they supervise first line so there job is to get them all going in the right direction) The job banks caused the big 3 to be less efficient. The job banks caused the big 3 to have more difficulty achieving effectiveness. Which of the following is true concerning effectiveness and efficiency: efficiency is concerned with doing the right thing at the right time.
