What Managers DoManagerial ActivitiesMake decisionsAllocate resourcesDirect activities of others to attain goals
Managers (or administrators)Individuals who achieve goals through other people.
Where Managers WorkOrganizationA consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.
Management Functions (contd)PlanningA process that includes defining goals, establishing strategy, and developing different ways to coordinate activities.
Management Functions (contd)OrganizingDetermining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.
Management Functions (contd)LeadingA function that includes giving vision, motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.
Management Functions (contd)ControllingMonitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
What Is Planning?PlanningA primary functional managerial activity that involves:Defining the organizations goalsEstablishing an overall strategy for achieving those goalsDeveloping a comprehensive set of plans to integrate and coordinate organizational work.Types of planningInformal: not written down, short-term focus; specific to an organizational unit.Formal: written, specific, and long-term focus, involves shared goals for the organization.
Why Do Managers Plan?Purposes of PlanningProvides directionReduces uncertaintyMinimizes waste and redundancySets the standards for controlling
Planning and PerformanceThe Relationship Between Planning And PerformanceFormal planning is associated with:Higher profits and returns of assets.Positive financial results.The quality of planning and implementation affects performance more than the extent of planning.The external environment can reduce the impact of planning on performance,Formal planning must be used for several years before planning begins to affect performance.
How Do Managers Plan?Elements of PlanningGoals (also Objectives)Desired outcomes for individuals, groups, or entire organizationsProvide direction and evaluation performance criteriaPlansDocuments that outline how goals are to be accomplishedDescribe how resources are to be allocated and establish activity schedules
Types of GoalsFinancial GoalsAre related to the expected internal financial performance of the organization.Strategic GoalsAre related to the performance of the firm relative to factors in its external environment (e.g., competitors).Stated Goals versus Real GoalsBroadly-worded official statements of the organization (intended for public consumption) that may be irrelevant to its real goals (what actually goes on in the organization).
Types of Plans
Traditional Objective Setting
Planning in the Hierarchy of Organizations
Managers Versus LeadersManagersAre appointed to their position.Can influence people only to the extent of the formal authority of their position.Do not necessarily have the skills and capabilities to be leaders.
LeadersAre appointed or emerge from within a work group.Can influence other people and have managerial authority.Do not necessarily have the skills and capabilities to be managers.
Leadership is the process of influencing a group toward the achievement of goals.
The Managerial GridManagerial GridAppraises leadership styles using two dimensions:Concern for peopleConcern for productionPlaces managerial styles in five categories:Impoverished managementTask managementMiddle-of-the-road managementCountry club managementTeam management
The Managerial GridSource: Reprinted by permission of Harvard Business Review. An exhibit from Breakthrough in Organization Development by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, NovemberDecember 1964, p. 136. Copyright 1964 by the President and Fellows of Harvard College. All rights reserved.
Cutting-Edge Approaches to LeadershipTransactional LeadershipLeaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.Transformational LeadershipLeaders who inspire followers to transcend their own self-interests for the good of the organization by clarifying role and task requirements.Leaders who also are capable of having a profound and extraordinary effect on their followers.
Cutting Edge Approaches to Leadership (contd)Charismatic LeadershipAn enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways.Characteristics of charismatic leaders:Have a vision.Are able to articulate the vision.Are willing to take risks to achieve the vision.Are sensitive to the environment and follower needs.Exhibit behaviors that are out of the ordinary.
Cutting Edge Approaches to Leadership (contd)Visionary LeadershipA leader who creates and articulates a realistic, credible, and attractive vision of the future that improves upon the present situation.Visionary leaders have the ability to:Explain the vision to others.Express the vision not just verbally but through behavior.Extend or apply the vision to different leadership contexts.
Cutting Edge Approaches to Leadership (contd)Team Leadership CharacteristicsHaving patience to share informationBeing able to trust others and to give up authorityUnderstanding when to interveneTeam Leaders JobManaging the teams external boundaryFacilitating the team processCoaching, facilitating, handling disciplinary problems, reviewing team and individual performance, training, and communication
Cutting Edge Approaches to Leadership (contd)Team Leadership RolesLiaison with external constituenciesTroubleshooterConflict managerCoach
Specific Team Leadership Roles
Beyond Charismatic Leadership Level 5 LeadersPossess a fifth dimensiona paradoxical blend of personal humility and professional willin addition to the four basic leadership qualities of individual capability, team skills, managerial competence, and the ability to stimulate others to high performance.Channel their ego needs away from themselves and into the goal of building a great company.
Contemporary Planning TechniquesScenarioA consistent view of what the future is likely to be.Scenario PlanningAn attempt not try to predict the future but to reduce uncertainty by playing out potential situations under different specified conditions.Contingency PlanningDeveloping scenarios that allow managers determine in advance what their actions should be should a considered event actually occur.
ORGANIZINGOrganizingThe process of arranging people and other resources to work together to accomplish a goal.Organization structureThe system of tasks, workflows, reporting relationships, and communication channels that link together diverse individuals and groups.
Organizing viewed in relationship with the other management functions.
What are the major types of organization structures?Functional structuresPeople with similar skills and performing similar tasks are grouped together into formal work units.Members work in their functional areas of expertise.Are not limited to businesses.Work well for small organizations producing few products or services.
What are the new developments in organization structures?Network structuresA central core that is linked through networks of relationships with outside contractors and suppliers of essential services.Own only core components and use strategic alliances or outsourcing to provide other components.
What are the major types of organization structures?Divisional structuresGroup together people who work on the same product or process, serve similar customers, and/or are located in the same area or geographical region.Common in complex organizations.Avoid problems associated with functional structures.
The boundary less organization eliminates internal and external barriers.
What organizing trends are changing the workplace?Contemporary organizing trends include:Shorter chains of command.Less unity of command.Wider spans of control.More delegation and empowerment.Decentralization with centralization.Reduced use of staff.
What organizing trends are changing the workplace?Shorter chains of commandThe line of authority that vertically links all persons with successively higher levels of management.Organizing trend:Organizations are being streamlined by cutting unnecessary levels of management.Flatter structures are viewed as a competitive advantage.
What organizing trends are changing the workplace?Less unity of commandEach person in an organization should report to one and only one supervisor.Organizing trend:Organizations are using more cross-functional teams, task forces, and horizontal structures.Organizations are becoming more customer conscious.Employees often find themselves working for more than one boss.
What organizing trends are changing the workplace?Wider spans of controlThe number of persons directly reporting to a manager.Organizing trend:Many organizations are shifting to wider spans of control as levels of management are eliminated.Managers have responsibility for a larger number of subordinates who operate