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Summary Chapter 1 - Introduction to Management
My Chapter 1 Notes - Introduction to Management
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Chapter 1 Introduction to ManagementThe Definition of Management
“Management is the attainment of organizational goals in an effective and efficient
manner through planning, organizing, leading and controlling organizational resources.”
The definition includes two important ideas:
1. The four functions are planning, organizing, leading and controlling
2. The attainment of organizational goals in an effective and efficient manner.
The Four Management Functions
Planning
Planning means identifying goals for future organizational performance and deciding on the
tasks and use of resources needed to attain them. In other words, managerial planning
defines where the organization wants to be in the future and how to get there.
Example
A good example of planning comes from General Electric (GE), where managers have sold
divisions such as plastics, insurance, and media to focus company resources on four key
business areas: energy, aircraft engines, healthcare and financial services. GE used to
relocate senior executives every few years to different divisions so that they developed
broad, general expertise. In line with the strategic refocusing, the company now will keep
people in their business units longer so they gain a deeper understanding of products and
customers within each of the four core business.
Organizing
Organizing typically follows planning and reflects how the organization tries to accomplish
the plan. Organizing involves assigning tasks, grouping tasks into departments, delegating
authority and allocating resources across the organization.
Example
In recent years, organizations as diverse as IBM, the Catholic Church, Estee Lauder and the
Federal Bureau of Investigation (FBI) have undergone a structural reorganization to
accommodate their changing plans. Organizing is a key task for Oprah Winfrey as she
strives to turn around her struggling start-up cable network, OWN. She took over as CEO of
the company, repositioned some executives and hired new ones, and cut jobs to reduce
costs and streamline the company. She is hoping the structural changes will bring a lean,
entrepreneurial approach that will get OWN on solid ground.
Leading
Leading is the use of influence to motivate employees to achieve organizational goals.
Leading means creating a shared culture and values, communicating goals to people
throughout the organizations and infusing employees with the desire to perform at a high
level.
Example
As CEO of Chrysler Group, Sergio Marchionne spends about 2 weeks a month in Michigan
meeting with executive teams from sales, marketing, and industrial operations to talk about
his plans and motivate people to accomplish ambitious goals. Marchionne, who spends half
his time in Italy running Fiat, rejected the 15th-floor executive suite at Chrysler headquarters
so he could provide more hands-on leadership from an office close to the engineering
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