MGT 3200 : Exam One Outline MGT 3200 Sauley
Invitation to Management – Chapter 1
What is management?
Management = the process of achieving desired results through the efficient utilization of human &
material resources
• Two key concerns: effectiveness & efficiency
o Effectiveness = goal attainment, ends
o Efficiency = reducing waste, means
o More bang for your buck
o Related because its easy to do one & not the other
o Most important = effectiveness
• Human resources are most important → only get things accomplished through people
• Management = science → bc we develop & test theories
o But not pure science → many ways to be successful, not a formula
How Did Management Become Significant and why is it still Important Today?
• Industrial revolution → revolutionized work
o Skills transferred from craftsmen to machines → factories common → unskilled
laborers used machines → skill level of laborers decreased → laborers needed to be
supervised = management
o Machines → increased productivity → prices drop → demand grows → factories
become too large for owner to manage alone → had to hire people to manage =
management
• Managers are still important today because they are the key to efficient accomplishment of
organizational/societal objectives
Management Period = levels of management
• First line managers
o Supervisor/foreman
o Largest number of managers
o Generally entry level
o 1st contact with labor
o only ones that don’t manage other managers
o short term focus, efficiency focus
• Middle managers
o Plant manager/division head
o Manage other managers
o Testing ground for top positions
o Communication between 1st line and top
o Many eliminated when downsizing → jobs in jeopardy
• Top managers
o CEO, chairman of the board, executive VP, etc.
o Set strategy for organization, lead
o Long term focus, effectiveness focus
Other Types of Managers
• Three distinctions:
• Line vs. staff
o Line = directly responsible for work activities that produce goods/services, in the line
of authority that spans from top to bottom,
▪ (ex. Guy in charge of tire molding @ Goodyear, marketing, finance, operations)
o Staff = use expertise to support line managers, middle level,
▪ (ex. legal counsel, psychologists, physicists, research & development, accounting,
human resources)
• Functional vs. general
o Functional = responsible for single area of activity, most managers (ex. Accounting,
human resources, production, finance)
o General = responsible for more complex organizational subunits
• Administrators vs. managers
o Administrators = managers in public or non-profit organizations
Functions of Management & Their Relative Importance at Different Levels of the Management
Pyramid
Five functions of management by Henri Fayol, 1916:
1. Planning
a. Establishing goals & planning how to attain them
b. Most important bc it guides all other functions
2. Organizing
a. Designing organizations structure, what/who/how tasks are done
3. Staffing & Human Resource Management
a. Hiring, training, developing, paying employees
4. Leading & Interpersonal Influence
a. Getting people to go along with you → motivating employees, communicating, resolving
conflicts
5. Controlling
a. Assuring efficient accomplishment of objectives → 3 parts
i. Monitoring performance
ii. Comparing actual performance with desired performance
iii. Taking corrective action if performance falls short
Notes:
• Siamese twins of management = planning & controlling, need both to improve performance
• 1st line = staffing & leading most important bc dealing with operative employees
• middle = organizing bc integrate work groups
• top = planning bc they determine overall goals
Managerial Roles – Mintzburg
• three different roles
• Interpersonal = interacting with others, goal is to have positive relationships
o Sub roles = figurehead, leader, & liaison
• Informational = information processing
o Sub roles = monitor, disseminator, spokesperson
• Decisional = using info to solve problems & take advantages of opportunities
o Sub roles = entrepreneur, disturbance handler, resource allocator, negotiator)
Managerial Skills—Kantz
• Technical = use special expertise to perform a task (ex. Engineering, accounting, finance)
• Human = ability to work well with others (ex. Motivate people, leadership, communication)
• Conceptual = ability to problem solve, intuition
• The higher in the pyramid you go the less technical skills you need & more conceptual,
always need human
Are Effective Managers Successful Managers?
• Luthans studied managers & asked this → answer no networking was the most important
skill
• Successful managers engaged in 4 activities → traditional management, communication,
human resource management, & networking
• Research shows to get ahead you need social & political skills → not what you know, who
you know
• Important → you must depend on other people to get where you are going
Environment of Management Chapters 3 & 8
The Organization as an Open System
• Organizations are open systems→must interact with environment to survive
• System = set of interrelated elements that acquire inputs from the environment, transforms
them, & discharges as outputs to the external environment
• System characteristics = input, transformation, & output
o Cyclical nature of the transformation process
▪ Transformation → outputs → new inputs
o Negative entropy
▪ Entropy = tendency of systems to decay over time
▪ Negative entropy = systems bring in new energy to delay decaying
▪ Import more energy than export
o Buffering the technical core
▪ Control threatening external forces
▪ maintain stability
o Role differentiation and specialization
▪ Specialization of roles to deal with challenging parts of the environment
o Synergy
▪ The ability of the whole to equal more than the sum of its parts, 2+2=5;
teamwork makes organization more effective & efficient
o Equifinality
▪ Systems can reach the same end by many different means
The Internal Environment: Organizational Subsystem
• Production subsystem
o Produces product/service
o Where primary transformation takes place
o Ex. Production dept. in manufacturing firm, teachers in university, medical activities
in a hospital
• Boundary-spanning subsystems
o responsible for exchanges with the environment
Document Summary
Other types of managers: three distinctions, line vs. staff, line = directly responsible for work activities that produce goods/services, in the line of authority that spans from top to bottom, (ex. Accounting, human resources, production, finance: general = responsible for more complex organizational subunits, administrators vs. managers, administrators = managers in public or non-profit organizations. Functions of management & their relative importance at different levels of the management. Interpersonal = interacting with others, goal is to have positive relationships: sub roles = figurehead, leader, & liaison. Informational = information processing: sub roles = monitor, disseminator, spokesperson, decisional = using info to solve problems & take advantages of opportunities, sub roles = entrepreneur, disturbance handler, resource allocator, negotiator) Managerial skills kantz: technical = use special expertise to perform a task (ex. Engineering, accounting, finance: human = ability to work well with others (ex.
