Who Are Managers?
• Manager
– Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.
Classifying Managers
• First-line Managers – Are at the lowest level of management and
manage the work of non-managerial employees.
• Middle Managers – Manage the work of first-line managers.
• Top Managers – Are responsible for making organization-wide
decisions and establishing plans and goals that affect the entire organization.
What Is Management?
• Managerial Concerns
– Efficiency
• “Doing things right” – Getting the most output for the least inputs
– Effectiveness
• “Doing the right things” – Attaining organizational goals
What Do Managers Do?
• Functional Approach – Planning
• Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.
– Organizing • Arranging work to accomplish organizational goals.
– Leading • Working with and through people to accomplish goals.
– Controlling • Monitoring, comparing, and correcting the work.
What Do Managers Do? (cont’d)
• Management Roles Approach
– Interpersonal roles
• Figurehead, leader, liaison
– Informational roles
• Monitor, disseminator, spokesperson
– Decisional roles
• Disturbance handler, resource allocator, negotiator
What Do Managers Do? (cont’d)
• Skills Approach
– Technical skills
• Knowledge and proficiency in a specific field
– Human skills
• The ability to work well with other people
– Conceptual skills
• The ability to think and conceptualize about abstract and complex situations concerning the organization
Conceptual Skills
• Using information to solve business problems
• Identifying of opportunities for innovation
• Recognizing problem areas and implementing solutions
• Selecting critical information from masses of data
• Understanding of business uses of technology
• Understanding of organization’s business model
Communication Skills
• Ability to transform ideas into words and actions
• Credibility among colleagues, peers, and subordinates
• Listening and asking questions
• Presentation skills; spoken format
• Presentation skills; written and/or graphic formats
Effectiveness Skills
• Contributing to corporate mission/departmental objectives
• Customer focus
• Multitasking: working at multiple tasks in parallel
• Negotiating skills
• Project management
• Reviewing operations and implementing improvements
Effectiveness Skills (cont’d)
• Setting and maintaining performance standards internally and externally
• Setting priorities for attention and activity
• Time management
Interpersonal Skills
• Coaching and mentoring skills
• Diversity skills: working with diverse people and cultures
• Networking within the organization
• Networking outside the organization
• Working in teams; cooperation and commitment
How The Manager’s Job Is Changing
• The Increasing Importance of Customers – Customers: the reason that organizations exist
• Managing customer relationships is the responsibility of all managers and employees.
• Consistent high quality customer service is essential for survival.
• Innovation – Doing things differently, exploring new territory, and
taking risks • Managers should encourage employees to be aware of and
act on opportunities for innovation.
What Is An Organization?
• An Organization Defined
– A deliberate arrangement of people to accomplish some specific purpose
• Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Composed of people
– Have a deliberate structure
Planning
• Identifying and selecting appropriate goals and courses of action for an organization. – The planning function determines how effective
and efficient the organization is and determines the strategy of the organization.
• Three Steps in the Planning Process: – Deciding which goals to pursue.
– Deciding what courses of action to adopt.
– Deciding how to allocate resources.
Management Key Concepts
• Organization – People working together and coordinating their
actions to achieve specific goals.
• Goal/objective – A desired future condition that the organization seeks
to achieve.
• Strategy – A cluster of decisions about what goals to pursue,
what actions to take, and how to use resources to achieve goals.
Organizing
• Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals.
• Organizational Structure – A formal system of task and reporting relationships
that coordinates and motivates organizational members.
– Creating organizational structure: • Grouping employees into departments according to the
tasks performed. • Laying out lines of authority and responsibility for
organizational members.
Leading
• Articulating a clear vision to follow, and energizing and enabling organizational members so they understand the part they play in attaining organizational goals.
– Leadership involves using power, influence, vision, persuasion, and communication skills.
– The outcome of leadership is highly motivated and committed organizational members.
Controlling
• Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance. – Monitoring individuals, departments, and the
organization to determine if desired performance standards have been reached.
– Taking action to increase performance as required.
– The outcome of control is the ability to measure performance accurately and to regulate the organization for efficiency and effectiveness.
Managerial Skills
• Conceptual Skills – The ability to analyze and diagnose a situation and
distinguish between cause and effect.
• Human Skills – The ability to understand, alter, lead, and control
the behavior of other individuals and groups.
• Technical Skills – The specific knowledge and techniques required
to perform an organizational role.
What should be the right thing?
How can we do better?
Challenges for Management in a Global Environment
• Increasing Number of Global Organizations.
• Building a Competitive Advantage.
• Maintaining Ethical Standards.
• Managing a Diverse Workforce.
• Utilizing IT and E-commerce.
Building a Competitive Advantage
• Increasing Efficiency – Reducing the quantity of resources used to produce
goods and services.
• Increasing Quality – Introducing Total Quality Management (TQM) to
improve quality.
• Increasing Speed, Flexibility, and Innovation – Adapting to bring new products to market faster.
• Increasing Responsiveness to Customers – Empowering employees to deal with customers.
Maintaining Ethical Standards • Factors Influencing Behaviors:
– External pressures from stockholders/stakeholders for increased organizational financial performance.
– Internal pressures from top management to lower-level managers to increase the organization’s competitive performance and profitability.
– Societal, cultural, and environment demands on the organization.
Hurt somebody unintendedly vs. illegally
MANAGEMENT FUNCTIONS
• Planning • Predetermining a course of action
• Organizing
• Arranging the relationships among work units
• Staffing
• Selecting and training people for positions
• Leading
• Create an atmosphere that will motivate people
• Controlling
• Measuring/evaluating performance toward planned objectives
Universality of Management
• The concept and activities of MANAGEMENT applies to
– all levels of management,
– as well as to all type of organizations.
• It is needed wherever
– People work together
– Strive to achieve a goal
Types of Organizations
• For-Profit-Organizations
• Not-For-Profit-Organizations
• Governmental Organizations
– Non-Governmental Organizations
PROFIT=REVENUE-COST
Why do we need Organizations/Management?
• PRODUCTIVITY
▫ Output/Input
• EFFICIENCY
▫ To get the most output from the least amount of input
▫ Scarce resources -> efficient use -> eliminate waste
▫ DOING THINGS RIGHT
• EFFECTIVENESS
▫ To get/reach aimed goals
▫ DOING RIGHT THINGS
Managerial Skills
• Technical Skills Knowledge and proficiency in a specific field
• Human Skills
The ability to work well with other people
• Conceptual & Design Skills
The ability to think and conceptualize about abstract and complex situations concerning the organization
Managerial Roles
– Roles are specific actions or behaviors expected of a manager.
– Mintzberg identified 10 roles grouped around interpersonal relationships, the transfer of information, and decision making.
Managerial Roles
• Interpersonal Roles • Figurehead
The manager performs ceremonial and symbolic duties as the head of the organization, greetings visitors or signing papers.
• Leader
fosters a proper work atmosphere, directs and motivates subordinates, train, advice, influence.
• Liaison
develops and maintains a network of external contacts to gather information, such as business correspondences, participation in meetings with representatives of other divisions or organizations.
Managerial Roles
• Informational Roles • Monitor
gathers internal and external information relevant to the organization; scan periodicals, news, reports, attend seminars.
• Disseminator
communicates factual and value based information to subordinates; sends memos and reports, inform staff
• Spokesperson
represents the unit to outsiders, communicates to the outside world on performance and policies, transmit information to outsiders through speeches, reports, memos, participates in conferences/meetings and report progress
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Managerial Roles
• Decisional Roles • Entrepreneur
designs and initiates change in the organization, identify areas of business development.
• Disturbance handler
deals with unexpected events and operational breakdowns, takes corrective action, resolves conflicts among subordinates
• Resource allocator
controls and authorizes the use of organizational resources, decides who gets resources, scheduling, budgeting, setting priorities
• Negotiator
participates in negotiation activities with other organizations and individuals, represents the unit during negotiation of union contracts, sales, purchases, budgets
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What is it Like to Be a Manager?
The manager’s job is diverse
Managerial tasks can be characterized into characteristics and roles
Most managers enjoy activities such as leading others, networking and leading innovation
Managers dislike controlling subordinates, handling paperwork and managing time pressure
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The Transition to a New Workplace
Today’s best managers give up their command-and-control mind-set to focus on coaching and providing guidance, creating organizations that are fast, flexible, innovative, and relationship-
oriented.
The Open-Systems View
• Open System – A system that takes resources for its external
environment and converts them into goods and services that are then sent back to that environment for purchase by customers.
– Inputs: the acquisition of external resources.
– Conversion: the processing of inputs into goods and services.
– Output: the release of finished goods into the environment.
Other System Considerations
• Closed system
– A system that is self-contained and thus not affected by changes occurring in its external environment.
– Often undergoes entropy and loses its ability to control itself, and fails.
• Synergy
– Performance that results when individuals and departments coordinate their actions
• Performance gains of the whole surpass the sum of the performance of the individual components.