Management

Session 1

Management in Turbulent Management in Turbulent TimesTimes

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Learning Objectives

• What is management? Organization?

• What are the skills managers need?

• What roles do managers perform?

• What management competencies are needed today?

• How is leadership viewed today?

• What current and historical forces shaping management today?

• Describe the general and task environments and the dimensions of each.

• Explain the strategies managers use to help organizations adapt to an uncertain or turbulent environment.

• Define corporate culture and give organizational examples.

• Explain organizational symbols, stories, heroes, slogans, and ceremonies and their relationship to corporate culture.

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Definition of Management

• The attainment of organizational goals in an effective and efficient manner through

• Four functions– planning,

– organizing,

– leading, and

– controlling organizational resources.

Managers use a multitude of skills to perform functions

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Organizational Performance

Attainment of organizational goals in an efficient and effective manner

The Process of Management

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• Organization - social entity that is goal directed and deliberately structured

• Effectiveness - degree to which organization achieves a stated goal

• Efficiency - use of minimal resources (raw materials, money, and people) to produce the desired volume of output

• Performance – organization’s ability to attain its goals by using resources in an efficient and effective manner

Organizational Performance

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Managerial Levels in the Organizational Hierarchy

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Management Skills

Exhibit 1.2

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Management Skills

• Conceptual Skills – Cognitive ability to see the organization as a whole and the relationships among its parts

• Human Skills – ability to work with and through other people and to work effectively as a group member

• Technical Skills – understanding of and proficiency in the performance of specific tasks

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Functions of Management

Planning

Leading

Controlling Organizing

Use influence to motivate employees

Select goals and ways to attain

them

Assign responsibility for task

accomplishment

Monitor activities and make corrections

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Planning Function

• Defines goals for future organizational performance

• Decides tasks and use of resources needed

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Organizing Function

• Follows planning

• Reflects how organization accomplish plan

• Involves assignment of: – tasks into departments– authority and allocation of resources across

organization

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Leading Function

The use of influence to motivate employees to achieve the organization’s goals.

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Controlling Function

• Monitoring employees’ activities

• Determining whether the organization is on target toward its goals

• Making corrections as necessary

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Controlling Function - Trends

• Empowerment and trust of employees = training employees to monitor and correct themselves

• New information technology provides control without strict top-down constraints

• Lack of control can lead to organizational failure

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The Leap From Individual Performer to Manager

Exhibit 1.4

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What is it like to be a Manager?

• Manager Activities– Adventures in Multitasking– Life on Speed Dial

• Manager’s Role– Set of expectations for one’s behavior – Diverse activities --10 roles

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Ten Manager Roles

Category Role

Informational Monitor

Disseminator

Spokesperson

Interpersonal Figurehead

Leader

Liaison

Decisional Entrepreneur

Disturbance handler

Resource allocator

Negotiator

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Management and the New Workplace

• Forces on organizations– Technology– Outsourcing– Diversity

• New Management Competencies– Dispersed leadership– Empowering others– Collaborative relationships– Team-building skills– Learning organization

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Managing During Turbulent Times

• Stay Calm

• Be Visible

• Put People Before Business

• Tell the Truth

• Know When to Get Back to Business

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Managing the Technology-Driven Workplace

• E-business• E-commerce

– Business-to-consumer (B2C)– Business-to-business (B2B)– Consumer-to-consumer (C2C)

• Innovation in the Workplace– Enterprise resource

planning (ERP)– Customer Relationship

Management (CRM)– Knowledge Management

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Influential Forces

• Social Forces

• Political Forces

• Economic Forces

How do these forces

influence organizations

and management?

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Historical Context

Classical Perspective • Scientific Management• Efficiency is Everything• Administrative Principle

Human Resource Perspective

• Worker Participation• Considerate Leadership

Behavioral Sciences Approach

• Humanistic Management• Understand Employee Behavior

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Organizational Environment

• All elements existing outside the boundary of the organization that have the potential to affect the organization

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Organizational Environments

Exhibit 2.1

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International Dimension

Portion of the external environment that represents events originating in

foreign countries as well as opportunities for Home companies in

other countries.

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Technological Dimension

• Scientific and technological advances– Specific industries– Society at large

• Impact• Competition• Relationship with Customers• Medical advances• Nanotechnology advances

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Socio-Cultural Dimension

• Demographic characteristics of the general population– Norms– Customs– Values

• Examples:– Increased globalization/diversity– Longer stay in workforce– Growing number of single-father households– Number of married households decreased

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Economic Dimension

• Economic health• Consumer purchasing power• Unemployment rate• Interest rates

• Recent Trends• Frequency of mergers and acquisitions• Small business sector vitality

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Legal-Political Dimension

Dimension of the general environment that includes federal, state, and local

government regulations and political activities designed to influence company

behavior.

Pressure Groups – interest group that works within the legal-political framework to influence companies to behave

in socially responsible ways.

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Task Environment

Sectors that have a direct working relationship with the organization

Customers Competitors Suppliers Labor Market

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Labor Market Forces

• Labor Market Forces Affecting Organizations today

Growing need for computer literate information technology workers

Necessity for ongoing investment in human resources – recruitment, education, training

Effects of international trading blocks, automation, outsourcing, shifting facility locations upon labor dislocations

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External Environment and Uncertainty

Exhibit 2.3

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Culture

The set of key values, beliefs, understandings, and norms that members of an organization share.

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Levels of Corporate Culture

Visible1. Artifacts, such as dress, office

layout, symbols, slogans, ceremonies

2. Expressed values

3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted”

Invisible

Culture that can be seen at the surface level

Deeper values and shared

understandings held by

organization members

Exhibit 2.5

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Visible Manifestations

• Symbols

• Stories

• Heroes

• Slogans

• Ceremonies

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Environment and Culture

• A big influence on internal corporate culture is the external environment

• Cultures can vary widely across organizations

• Organizations within same industry reveal similar cultural characteristics

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Features of Contemporary Management Culture

Strategic Planning

Bench-Marking

Market OrientationInvolvement

Culture

Re-Engineering

Creative

DestructionTQM

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High-Performance Culture

• Based on a solid organizational mission or purpose

• Embodies shared adaptive values that guide decisions and business practices

• Encourages individual employee ownership of both bottom-line results and the organization’s cultural backbone

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Combining Culture and Performance

Exhibit 2.6

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Cultural Leadership

• Articulates a vision that employees can believe in Communicates values Values are tied to a clear and

compelling mission, or core purpose

• Heeds the day-to-day activities that reinforce the cultural vision Work procedures and reward systems

match and reinforce the values