Introduction to Management

Chapter 1. Innovative
management for turbulent times
Text book : Richard Daft (2008)

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 Learning Objectives
• Describe the four management functions
• Explain the difference between efficiency and
effectiveness and their importance for organizational
performance.
• Describe management types and the horizontal and
vertical differences between them.
• Describe conceptual, human, and technical skills and
their relevance for managers and employees.
• Define 10 roles that managers perform in organization.
• Understand the personal challenges involved in
becoming a new manager in an organization in today’s
world.
• Discuss the management competencies needed to deal
with today’s turbulent environment, including issues such
as diversity, globalization, and rapid changes.
• Explain the leadership skills needed for effective crisis
management.
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 What do managers do?
• They get things done through their organizations.
• Managers create the systems, conditions, and
environment that enable organizations to survive and
thrive beyond the tenure of any specific supervisor or
manager.
• A key aspect of managing is recognizing the role and
importance of other people.
• Early twentieth-century management scholar Mary
Parker Follett defined management as “the art of getting
things done through people.
• More recently, noted management theorist Peter Drucker
stated that the job of managers is to give direction to
their organizations, provide leadership, and decide how
to use organizational resources to accomplish goals 3
 1.Definition of Management
• The attainment of organizational goals in an
effective and efficient manner through
• Four functions
– planning,
– organizing,
– leading, and
– controlling organizational resources.
This definition holds two important ideas:
(1) the four functions
(2) the attainment of organizational goals in an
effective and efficient manner.
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 2. The Process of Management

Planning

Select goals and

ways to attain
them
Performance
Resources
•Human •Attain goals
Controlling Organizing •Products
•Financial
•Raw Materials Monitor activities •Services
Assign responsibility
and make
•Technological for task •Efficiency
corrections
accomplishment
•Information •Effectiveness

Leading
Use influence to
motivate employees

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 the four management functions
1. Planning means defining goals for future
organizational performance and deciding
on the tasks and use of resources
needed to attain them.
 A lack of planning—or poor planning—
can hurt an organization’s
performance.
2. Organizing involves assigning tasks,
grouping tasks into departments,
delegating authority, and allocating
resources across the organization.
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3. Leading
– The use of influence to motivate employees to
achieve the organization’s goals.
– Leading means creating a shared culture and values,
communicating goals to employees throughout the
organization, and infusing employees with the desire
to perform at a high level.
– Leading involves motivating entire departments and
divisions as well as those individuals working
immediately with the manager.
4. Controlling means monitoring employees’
activities, determining whether the organization
is on target toward its goals, and making
corrections as necessary. Managers must
ensure that the organization is moving toward its
goals. 7
 New Trends in Controlling
• Empowerment and trust of employees =
training employees to monitor and correct
themselves
• New information technology provides
control without strict top-down constraints
• Organization failure can result when
managers are not serious about control or
lack control information.
• Particularly in turbulent times, managers
need effective control systems to help
them make fast, difficult decisions. 8
 3.Organizational Performance
• The other part of our definition of management is
the attainment of organizational goals in an efficient
and effective manner.
• Management is so important because organizations
are so important.
• Organization - social entity that is goal directed and
deliberately structured.
– Social entity means being made up of two or more
people.
– Goal directed means designed to achieve some outcome,
such as make a profit
– Deliberately structured means that tasks are divided and
responsibility for their performance is assigned to
organization members. 9
 Cont.…d
• 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
• Efficiency and effectiveness can both be high in
the same organization
• Sometimes, however, managers’ efforts to
improve efficiency can hurt organizational
effectiveness, especially in relation to severe cost
cutting. 10
 4. Management Skills
The managerial skills necessary for managing an
organization could be categorize in to three:
• Conceptual Skills is the cognitive ability to see the
organization as a whole and the relationships among its
parts.
– involves the manager’s thinking, information processing,
and planning abilities.
– involves knowing where one’s department fits into the
total organization and how the organization fits into the
industry, the community, and the broader business and
social environment.
– It means the ability to think strategically—to take the
broad, long-term view.
– Conceptual skills are needed by all managers but are especially
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important for managers at the top.
 Human Skills
• is the manager’s ability to work with and through
other people and to work effectively as a group
member.
– This skill is demonstrated in the way a manager relates to
other people, including the ability to motivate, facilitate,
coordinate, lead, communicate, and resolve conflicts.
• A manager with human skills allows subordinates to
express themselves without fear of ridicule and
encourages participation.
– A manager with human skills likes other people and is
liked by them.
– As globalization, workforce diversity, uncertainty, and
societal turbulence increase, human skills become even
more crucial 12
 Technical skill
• is the understanding of and proficiency in the
performance of specific tasks.
– includes mastery of the methods, techniques, and
equipment involved in specific functions such as
engineering, manufacturing, or finance.
– Also includes specialized knowledge, analytical ability,
and the competent use of tools and techniques to solve
problems in that specific discipline.
– Are particularly important at lower organizational levels.
Many managers get promoted to their first management
jobs by having excellent technical skills.
• However, technical skills become less important
than human and conceptual skills as managers
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move up the hierarchy.
Relationship of Conceptual, Human, and Technical
Skills to Management

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 5. Management Types - Vertical
• Management levels in organizational
hierarchy could be classified as
– Top managers are those who are responsible
for the entire organization
– Middle managers who are responsible for
major departments or division of the
organization. ( note that the term project
managers could correspond to this level)
– First- line managers are those who are
directly responsible for the production of goods
and services of the organization
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 5. Management Types - Horizontal
• Functional Managers
– Responsible for a department that performs a
single functional task and
– Have employees with similar training and
skills
( Example: Advertising, Sales ,Finance, Human
Resources, Manufacturing, Accounting)
• General Managers
– Responsible for several departments that
perform different functions
( Example: Self-contained division in an organization ,
Project managers )
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 6.What is it like to be a Manager?
• Do you really want to be a manager? ( Read P.18 in your
text book)
• Many people who are promoted into a manager position
have little idea what the job actually entails and receive little
training about how to handle their new role.
• It’s no wonder that, among managers, the first-line
supervisors tend to experience the most job burnout and
attrition.
• Organizations often promote the star performers—those
who demonstrate individual expertise in their area of
responsibility and have an ability to work well with others—
both to reward the individual and to build new talent into the
managerial ranks.
• But making the shift from individual contributor to manager is
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often tricky.
Making the Leap From Individual Performer to
Manager

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 Manager Activities
• Most new managers are unprepared for the variety of
activities managers routinely perform.
– One of the most interesting findings about managerial
activities is how busy managers are and how hectic the
average workday can be.
• Managerial activity is characterized by variety,
fragmentation, and brevity.
• The widespread and voluminous nature of a manager’s
involvements leaves little time for quiet reflection. The
average time spent on any one activity is less than nine
minutes.
– Managers shift gears quickly. Significant crises are
interspersed with trivial events in no predictable
sequence.
– Life on Speed Dial The manager performs a great deal20of
work at an unrelenting pace.
 Manager Roles
• Mintzberg’s observations and subsequent
research indicate that diverse manager
activities can be organized into 10 roles.
• A role is a set of expectations for a
manager’s behavior. Exhibit 1.5 provides
examples of each of the roles.
• These roles are divided into three
conceptual categories: informational
(managing by information); interpersonal
(managing through people); and decisional
(managing through action). 21
 Cont.…d
• Each role represents activities that managers
undertake to ultimately accomplish the functions of
planning, organizing, leading, and controlling.
• Although it is necessary to separate the
components of the manager’s job to understand the
different roles and activities of a manager, it is
important to remember that the real job of
management cannot be practiced as a set of
independent parts; all the roles interact in the real
world of management.
• As Mintzberg says, “The manager who only
communicates or only conceives never gets
anything done, while the manager who only ‘does’
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ends up doing it all alone.
e x h i b i t 1.5 Ten Manager Roles

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 7. Managing in Small Businesses and
Nonprofit Organizations
• Role Differences

• Source of Financial Resources

• Unconventional Bottom line

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8. Management and the New Workplace

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 9. New Management Competencies

 Dispersed leadership
 Empowering others
 Collaborative relationships
 Team-building skills
 Learning organization

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 10.Managing During Turbulent Times
• Crisis management suggests the
importance of the following five leadership
skills:
– Stay Calm
– Be Visible
– Put People Before Business
– Tell the Truth
– Know When to Get Back to Business

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 Assignment
• Discuss in groups the questions
in the Management by Practice
section of chapter one ( p.32) in
your text book
• Make a self-assessment of your
study of chapter one using the
learning objectives set on p.4 of
your text ( Daft ,2008)

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