chapter 1 - introduction to organ is at ions and management

8/8/2019 Chapter 1 - Introduction to Organ is at Ions and Management

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Strategic Management

Chapter One

Introduction to Organisations and Management

What is an organisation?

y Deliberate arrangement of people to accomplish some specific purpose Characteristics of Organisations

Have a distinct purpose Expressed in terms of a goal or a set of goals

Are composed of people Have some deliberate structure

Enables people to do their work Ensures members work relationships are clarified

o Open and flexible: no clear and precise jobduties

o Traditional: clearly defined rules, regulationsand job descriptions

y Organisations are changing because the world around them is changing Some contemporary organisations are structured in a flatter

network structure

Less hierarchical Open communication systems Flexible work arrangements Employee work teams Supplier alliances

The changing world Quest for more sustainable organisational practices Increased dependence e-business models and approaches Spread of technology Increased globalisation Changing employee expectations

Who are managers?

y Managers coordinate and oversee the work of other people so thatorganisational goals can be accomplished

Not about personal achievement Help others to do work and achieve

y Non-managerial employees: work directly on a job and have no onereporting to them

y Traditionally structured organisation


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Top Managers Managers at or near the top level of the organisation Responsible for making organisation-wide decisions Establish goals and plans that affect the entire organisation

Middle Managers Managers between the fist-line ad top level of the

organisation Manage the work of first-line managers Aka regional supervisor, dean, department head

First-line Managers Managers at the lowest level of the organisation Manage the work of non-managerial employees who are

directly involved in the production or creation of the

organisations products

Aka supervisorsWhat is management?

y Coordinating and overseeing the work activities of others so that theiractivities are completed efficiently and effectively

Efficiency: getting the most output from the least amount of input,doing things right (not wasting resources)

Managers are concerned with the efficient use of resources(money, time, people)

Effectively: doing those work activities that help the organisationto reach its goals; doing the right things

Concerned with the attainment of organisational goals (theend result)

What do managers do?

y Functions (POLC) Functions method is a way of conceptualising the managers role Provides a way of classifying the many acitivites carried out by a

manager

Henri Fayol proposed that managers perform 5 functions:planning, organising, commanding, coordinating and controlling

These have now been condensed to 4: Planning: defining goals, establishing strategies and

developing plans

Necessary to know where the company is going andthe plan as to how it is going to get there

Organising: arranging and structuring work How the organisations goals will be achieved Structural arrangements What tasks need to be done, who is going to do the,

how the tasks are grouped, who reports to who


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Leading: working with and through people Motivate subordinates Train and hire employees Resolve group work conflicts Select the most effective communication channel Deal with employee behaviour

Controlling: evaluating whether things are going asplanned

Actual performance must be compared withpreviously set goals

y Roles (IID) Henry Mintzberg what managers do can be grouped into 10

unrelated roles

Which are then grouped into 3 categories: Interpersonal

Managerial roles that involve people and otherduties that are ceremonial and symbolic in nature

oFigurehead: dean handing out diplomas atgraduations

o Leader: hiring, training, motivating,disciplining employees

o Liaison: contacting external sources thatprovide the manager with information

Informational Involves receiving, collecting and disseminating

information

o Monitor: getting information from outside theorganisation by reading and talking with

others

Learn of changes in consumer wantand what competitors might be

planning etc.

o Disseminator: acting as a channel ofinformation to organisational members

o Spokesperson: representing the organisationto outsiders

Decisional: entrepreneur, disturbance handler, resourceallocator, negotiator

Revolve around making decisionso Entrepreneurs: initiate and oversee new

projects that will improve their

organisations performance

o DisturbanceHandlers: take corrective actionin response to unforeseen problems

o Resource allocators: responsible forallocating human, physical and monetary

resources

o Negotiators: discuss and bargain with groupsto gain advantages for their own unit


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y ****ANEVALUATION***** Managers regardless of the type of organisation or level in the

organisation usually perform similar roles

The emphasis managers give to various roles changes withtheir organisational level

Higher level: disseminator, figurehead, negotiator,liaison, and spokesperson

Leader is more important for lower level manager Functions vs. Roles

Functions method is more useful for conceptualisingmanagers job

Many of the roles align with the functions Resource allocation is part of planning Interpersonal roles are part of leading

o Not all roles fit into functions As all managers do some work that is

not purely managerial

ySkills (T

HC)

Robert Katz managers needed 3 competencies Technical

Knowledge and proficiency in a specialised fieldo Job specific knowledge and techniques

needed to perform specific tasks

First-line and middle-managerso Employees with excellent technical skills

often get promoted to first-line managers

Human The ability to work well with other people

individually and in a group

Important at all levelso Be aware of own attitudes, assumptions and

beliefs

o Be sensitive to subordinates perceptions,needs and motivations

Get the best out of people through ability to:o Communicateo Motivateo Leado Inspire enthusiasmo Inspire trust

Conceptual The ability to think and conceptualize about abstract

and complex situations

o Helicopter perspective see theorganisation as a whole

o Understand relationship between differentsub-units

o Visualise how the organisation fits into itsbroader environment


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More i ort tathi her levelsy **the i ortance ofthese s ills differs depending on managerial levely **** AN E AL ATION****

mustbe willing to upgrade s ills constantly

Is th

n

s Job Univ

s l

y Organisational Level All managers plan, organise, lead and control

The time they give to each function depends on theirorganisational level

The differences are of degree and emphasis notof functiony Organisational Type

Althoughthere are distinctions between the managementof profitand non-profitorganisations

There are many similar tas sthatmanagershave to do inbothtypes of organisations

Bothhave to be effective and efficient More difficultto measure the performance of a non-profit

organisation

y Organisational Si e: Small business = an independently owned and operated, profit-

seeking enterprise with fewer than 20 employees Perform essentially the same activities However, there are some differencesin degree and emphasis on

roles and functions

The managers role ofspokesperson in a small businessisthe mostimportantrole

Entrepreneurial role is leastimportantfor largeorganisations

Less formal role in small than in large


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y Cross-national Transferability There are some major differencesin managerial practicesin

differentcountries

In this area the managers job is lessuniversal However, withincreased globalisation these differences are

likely to diminish gradually in the near future

How is th n s job h n in

y Changesimpacting managers job Changing technology Increased security threats Increased emphasis on ethics Increased competitiveness Increased environmental concern

y Importance of customers Delivering consistenthigh-quality service is essential to success


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Must create customer-responsive organisation where employeesare friendly and courteous, accessible, knowledgeable and prompt.

Employee attitudes and behaviour play a huge role in customersatisfaction

y Importance of innovation Doing things differently, exploring new territory and taking risks Create an environment in which employees felt free to innovate

y Importance of sustainability Eco-efficiency: the concept of creating more goods and services

while using fewer resources and creating less waste and pollution

Eco-effectiveness: a strategy for business growth and prosperitythat generates ecological, social and economic value

Corporate sustainability: widening corporate responsibility torespond strategically to a wide range of environmental and

societal challenges

Integrating economic, environmental and socialopportunities into its business strategy

Associated with financial and marketplace success

What

alue does the market place put on managers?

y Good managerial skills are a scarce commodity and salary packages are onemeasure of the value that organisations place on them

y Management salaries reflect the market forces of supply and demandy Increased shareholder pressure is putting pressure on what has been seen

by some as excessively generous remuneration packages

Why Study Management?

y Universality of management there is a universal need for management The reality that management is needed in al types and sizes of

organisations, at all organisational levels, in all organisational

areas and in organisations in all countries around the globe.

y Reality of work either manage or be managed Insight into the way boss behaves and internal workings of

organisations

y Managing yourself take greater control of yourself Changes in organisational life are placing increased emphasis on

individual control and responsibility Working from home, self managed teams

y Challenges and rewards of being a manager Have to deal with a variety pf personalities and make do with

limited resources

Your success depends on others work performance Opportunity to think creatively and use your imagination Help others find meaning and fulfilment in work Receiving recognition and status in organisation and community


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chapter 1 - introduction to organ is at ions and management

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