Fundamentals Of Management Chapter Who are Managers and Where Do They ?Work   Managers work in organizations Therefore, before we identify who managers are and what they do, we must clarify what we mean by the term organization An organization is systematic arrangement of people brought together to accomplish some specific purpose Your college or university is an organization and the LG corporations What Three Common Characteristics Do All Organizations Have Share?    First: Every organization has a purpose and is made up of people who are grouped in some fashion Second: no purpose or goal can be achieved without a decisions maker Third: all organizations develop a systematic structure that defines and limits the behavior of its members How Are Managers Different From ?Operative Employees   Managers works in an organizations, but not every one who works in an organization is a manager Organizational members can be divided into two categories: operatives and managers   Operatives: are people who work directly on a job or task and have no responsibility for overseeing the work of others Managers: individuals in an organization who direct the activities of others What Titles Do Managers Have in Organizations?    Management position come with a variety of titles: First line managers: Supervisors responsible for directly the day-to-day activities of operative employee Middle managers: Individuals at levels of managements between the first-line manager and top management.( project leader, unit chief)  Top Managers: Individuals who are responsible for making decision about the direction of the organization and establishing policies that affect all organizational members Top managers typically have titles such as vice president ,president or chairperson of the board (exhibit 1-2) Top Managers Middle managers First-line managers Operatives ?How we define management    Management : The process of getting things done, effectively and efficiently, through and with other people Efficiency : Means doing the task correctly and refers to the relationship between inputs and outputs and seeks to minimize resource costs Effectiveness: Means doing the right tasks which in an organization translates in to goal attainment (exhibit 1-3) What are the management process?     Management process : is planning , organizing, leading and controlling Planning: Includes defining goals , establishing strategy, and developing plans to coordinate activities Organizing: Includes determining what tasks are to be done , who is to them , how the tasks are to be grouped , who report to whom and where decisions are to be made Leading : Includes motivating employees , directing the activities of others , selecting the most effective communication channel, and resolving conflict ?What are the management process   Controlling: The process of monitoring performance, comparing with goals and correcting any significant deviation.( exhibit 1-4) Managers must be able to perform all four activities simultaneously and realize that each has an effect on the others; that is these processes are interrelated and interdependent Basic Organization Design Chapter Organization Design  A process in which managers develop or change their organization’s structure The basic concepts of organization design were formulated in the early 1900s by management writers who offered a set of principles for managers to follow The Elements of Structure  There are six basic elements of structure: Work specialization Unity of command Span of control Authority and responsibility Centralization versus decentralization departmentalization Work Specialization   A component of organization structure that involves having each discrete step of a job done by a different individual rather than having one individual the whole job What is work specialization? Work specialization has been around for centuries in industrialized countries In fact, back in the 1700s when economist adam smith published wealth of nations   he advocated that jobs should be divided in to smaller parts In work specialization a job is broken down in to a number of steps, and each step is completed by a separate individual Chain of command: The continuous line of authority that extends from the highest levels in an organization to the lowest levels and clarifies who reports to whom  An employee who has to report to tow or more bosses might have to cope with conflicting demands or priorities Unity of command: The management principle that no person should report to more than one boss The unity of command was logical when organizations were comparatively simple :Span of control  The number of subordinates a manager can direct efficiently and effectively Early writers came to no consensus on specific number most favored small spanstypically no more than six workers-in order to maintain close control Authority and responsibility: Authority: The rights inherent in a managerial position to give orders and expect them to be obeyed :Responsibility  An obligation to perform assigned activities When managers delegate authority , they must allocate commensurate responsibility That is when employees are given rights, they also assume a corresponding obligation to perform The early management writers distinguished between two forms of authority : Line authority and Staff authority Line authority: The authority that entitles a manager to direct the work of an employee Staff authority: Positions that have some authority but that are created to support, assist, and advise the holders of line authority Power:  An individual’s capacity to influence decisions Centralization versus decentralization: Centralization : A function of how much decision making authority is pushed down to lower levels in an organization; the more centralized an organization, the higher the level at which decisions are made :Decentralization   The pushing down of decision making authority to the lowest levels of the organization Departmentalization: There are five ways to departmentalize: Functional Departmentalization: The grouping of activities by function Product Departmentalization: The grouping of activities by product produce Customer Departmentalization: The grouping of activities by common customers Geographic Departmentalization: The grouping of activities by territory Process Departmentalization: The grouping of activities by process Functional :Groups employees based on work performed(e.g., engineering, accounting, information system, human resources) Product: Groups employees based on major product areas in the corporation(e.g., women’s footwear, men’s footwear, and apparel and accessories) Customer: Groups employees based on Customers' problem and needs (e.g., wholesale, retail, government) Geographic: Groups employees based on location served (e.g., North, South, Midwest, East) Process: Groups employees based on basis of work or customer flow (e.g., testing, payment)