Ch01 Daft Nem Aise

New Era of ManagementNew Era of ManagementR I C H A R D L . D A F TR I C H A R D L . D A F T

Managing in Turbulent TimesManaging in Turbulent Times

CHAPTER 1CHAPTER 1

3 Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Learning ObjectivesLearning Objectives

Describe the four management functions and the type of management activity associated with each.

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.


Learning Objectives (contd.)Learning Objectives (contd.)

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.


The Nature of ManagementThe Nature of Management

Managers have to cope with diverse and far-reaching challenges

1. To keep pace with ever-advancing technology

2. To find ways to incorporate the Internet and e-business into their strategies and business model

3. Strive to remain competitive in a dynamic and far reaching world


What Do Managers Have in Common?What Do Managers Have in Common?

They get things done through their organization.

They create the systems, conditions and environment that enable organizations to survive and thrive beyond the tenure of any specific supervisor or manager.


Definition of ManagementDefinition 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


Functions of ManagementFunctions 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


The Process of ManagementThe Process of Management

Planning

Leading

Resources

Controlling Organizing

Performance

•Human

•Financial

•Raw Materials

•Technological

•Information

•Attain goals

•Products

•Services

•Efficiency

•Effectiveness

Use influence to motivate employees

Select goals and ways to attain

them

Assign responsibility for task

accomplishment

Monitor activities and make

corrections

Exhibit 1.1


Planning FunctionPlanning Function

Definition– Defines goals for future organizational

performance– Decides tasks and use of resources needed

Corporate Examples– Planning – AOL Time Warner – The Lord of

the Rings – Lack of planning – Merry-Go-Round


Organizing Function Organizing Function

Definition– Follows planning– Reflects how organization tries to accomplish plan– Involves assignment of

tasks into departments authority and allocation of resources across organization

Corporate Examples - Structural reorganizations– IBM, the Catholic Church, Microsoft, Motorola, the FBI


Leading Function Leading Function

Definition– The use of influence to motivate

employees to achieve the organization’s goals.

Corporate Examples – Michael Dell, Meg Whitman of eBay, Cara Kakuda of Nextel


Controlling Function Controlling Function

Definition

● Monitoring employees’ activities

● Determining whether the organization is on target toward its goals

● Making corrections as necessary


Controlling Function Controlling Function

New 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 Information can lead to Organizational Failure


Organizational PerformanceOrganizational Performance

Attainment of organizational goals in an efficient and effective manner

2nd half of definition of management

The Process of Management


Organizational PerformanceOrganizational Performance

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


Management SkillsManagement Skills

Exhibit 1.2


Management SkillsManagement 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

When skills Fail

Experiential Exercise: Management Aptitude Questionnaire


Management Types - VerticalManagement Types - Vertical

Managerial Levels in the Organizational Hierarchy

Managerial Levels in the Organizational Hierarchy

Exhibit 1.3


Management Types - HorizontalManagement Types - Horizontal

Functional Managers – Responsible for a department that performs

a single functional task and – Has employees with similar training and

skills

General Managers– Responsible for several departments that

perform different functions


Managerial Types - HorizontalManagerial Types - Horizontal

Functional Managers– Advertising– Sales– Finance– Human Resources– Manufacturing– Accounting

General Managers– Self-contained division

such as a Macy’s department store

– Project managers have general management responsibility as they coordinate people across several departments


What is it like to be a Manager?What is it like to be a Manager?

Manager Activities– Multitasking Fragmentation, Variety, Brevity

– Life on Speed Dial

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


Making the Leap From Individual Performer to Manager

Exhibit 1.4


Ten Manager RolesTen Manager Roles

Category Role

Informational Monitor

Disseminator

Spokesperson

Interpersonal Figurehead

Leader

Liaison

Decisional Entrepreneur

Disturbance handler

Resource allocator

negotiator


Hierarchical LevelsHierarchical Levels

Exhibit 1.6


Managing in Small Businesses and Nonprofit Organizations

Managing in Small Businesses and Nonprofit Organizations

Role Differences

Source of Financial Resources

Unconventional Bottomline


Management and the New WorkplaceManagement and the New Workplace

Exhibit 1.7


Management and the New WorkplaceManagement and the New Workplace

Forces on organizations New Management Competencies

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


Managing During Turbulent TimesManaging 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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