The New Manager

Learning Objectives

• Understand the relationship between management and the organization

• Appreciate the evolution of management thought

• Understand various management functions and roles

• Prepare for the IPMA Fellowship

Management & The Organization

Learning Objectives

• Understand the role of the New Manager in light of various drivers for change

• Appreciate the associated competencies and styles required by The New Manager

What is an Organization?

• “a collection of interacting and interdependent individuals who work towards common goals and whose relationships are determined according to a certain structure”

(Duncan, 1981)

What is Management?

• “a process which exists to get results by making the best use of the human, financial and material resources available to the organization and to individual managers”

(Armstrong, 1990)

Key Organizational Concepts

The Organization

Division of LaborDivision of Labor Span of ControlSpan of Control

ConfigurationConfigurationOrganizational

Chart

OrganizationalChart

AdministrativeHierarchy

AdministrativeHierarchy

Division of Labor

• How activities within the organization are allocated into different jobs or tasks performed by different individuals

Division of Labor - Advantages

• Most Efficient Utilization of Labor

• Increased Standardization

• Uniformity of Output

• Reduction in Training Costs

• Heightened Expertise

Administrative Hierarchy

• Reporting Relationships from the lowest level to the highest in the organization

• An administrative hierarchy is inversely related to the Span of Control– organizations with a large span of control have a

small amount of managers in the hierarchy– organizations with a small span of control have a

large administrative hierarchy

The Organizational Chart

• A representation detailing all individuals, positions, reporting relationships, and formal lines of communication within the organization

The Organizational Chart

• An organizational chart illustrates– Division of Work– Managers & Subordinates– Type of Work– Business Functions– Levels of Management

Dimensions of Organizational Structure

• Specialization– How Tasks and Roles are Allocated

• Standardization– How an organization adopts procedures

• Formalization– The degree to which rules and procedures

are documented

• Centralization– The degree to which authority and decision

making are located at the top of the organization

• Configuration– The shape of the organization’s role structure

• Traditionalism– The way procedures are understood or ‘the way

we do things around here’

Dimensions of Organizational Structure

Four Underlying Dimensions

Structuring of Activities

Concentration ofAuthority

Line Control of theWorkforce

Supportive Component

Source: Pugh et al., 1969

Structuring of Activities

• The extent to which there are defined regulation of employee behavior

• Processes supported– Specialization– Formalization– Standardization

Line Control of the Workforce

• The extent by which control of the work is under the control of line management rather than through other interpersonal and detached procedures

Supportive Component

• The comparative size of the administrative and other personnel outside that of the core workflow personnel

Evolution of Management Thought

Evolution of Management Thought

Organizational BehaviorOrganizational Behavior

Human RelationsHuman Relations

Hawthorne StudiesHawthorne Studies

Scientific ManagementScientific Management1900’s

1940’s

1970’s

Classical Organization TheoryClassical Organization Theory

Scientific Management - Key Features

• Scientific or systematic compilation of information regarding the work tasks to be performed

• Breakdown of tasks into smallest unit

• Task simplification where appropriate

Scientific Management - Key Features

• Introduction of time and motion studies to obtain the ‘one best way’ of working

• Link pay-to-performance

• Removal of employees’ discretion or control over their own activities– Planning– Organizing– Controlling

Job Simplification

• Mechanical Pacing– Automated assembly lines to monitor and effectively deliver

products

• Part Product Concentration– Product broken down into parts and line staff allocated to

produce only parts of the overall product

• Repetitive Work Processes– Replication of tasks by employees

Job Simplification

• Limited Social Interaction– Employees are not encouraged to interact

• Low Skill Requirements– Minimal training required as a result of the

decomposition of the task into constituent parts and divided amongst staff

• Pre-set Tools & Techniques– Precise allocation of tools and techniques to the

accomplishment of the task

Scientific Management - Advantages

• Highlighted the need for concentration on employee performance and production

• Introduction of standardized procedures

• Job Specialization and Mass Production

Organizational Behavior

Systems PerspectiveSystems Perspective

Contingency PerspectiveContingency Perspective

The Systems Perspective

InputsInputs OutputsOutputsTransformationTransformation

Feedback

Environment

Management Functions & Roles

Traditional Functions of Management

Planning Organizing

Controlling Leading

Planning

• Deciding in advance what is going to be done in the organization

• Determining goals and ways to achieve these goals

• Not a static but an ongoing process

Planning - Core Skills

• Forecasting

• Scheduling

• Budgeting

• Setting Objectives

Organizing

• Effectively using resources to meet the organizational goals

• Design of systems and structures to achieve this end

Organizing - Core Skills

• Hiring

• Coordinating

• Delegating

• Resource Allocation

Directing

• Motivating and assisting employees to achieve the organizational objectives

• Using motivating

Directing - Core Skills

• Hiring

• Coordination

• Delegation

• Resource Allocation

Controlling

• Ensuring that work activities are performed in line with the organization’s stated goals

• Monitoring the actual performance and taking the necessary steps required to improve performance

• Keeping the organization on a prescribed course of action

Controlling

• Coordinating

• Coaching/Mentoring

• Resource Allocation

• Conflict Management/Problem Solving

• Objective Setting

Managerial Roles

InformationalDecisional

Interpersonal

The New Manager

Drivers for Change

• Economic, Social & Political

• Globalization

• Technological Advancements

Economic, Social & Political

• Market Economy

• Worker Mobility

• Diverse Workforce

Globalization

• Search for Excellence

• Focus on Quality

• Supply Chain Management

• Customer Expectations & Satisfaction

Technological Advancements

• Product Life Cycles

• Informational Flows

• Data Management

• Communication Technologies

20th V’s 21st Century Organizations

• 20th Century– Bureaucratic– Multi-levelled– Organised with

expectation that senior management will manage

– Policies and procedures that create many interdependencies

• 21st Century– Non-bureaucratic

– Fewer levels

– Expectation that senior management leads; lower level employees manage

– Policy and procedures with minimal interdependencies

An Extended Perspective

Traditional Role• Planning• Organizing• Leading• Controlling

Extended Role• Strategist• Organizational

Ambassador• Change Leader• Team Player• Problem Solver

Boyatzis Management Competencies

Goal & Action Management Cluster

The Leadership Cluster

The Human Resource Management Cluster

The Focus On Others Cluster

The Directing Others Cluster

Source: Boyatzis, 1982

Goal & Action Management Cluster

• Concern with Impact– Concerned about status and reputation– Concerned with symbols of power to have an

impact on others

• Diagnostic Use of Concepts– Recognizing patterns from an assortment of

information– Bringing a concept to a situation and being able to

interpret events through that concept

Autocratic with Group’s Review & Feedback

• The leader defines the problem, diagnoses, generates and chooses solution from alternatives

• The leader then presents the solution plan to the group for feedback and review

High Performance Competencies

Cognitive

Motivation

Directional

Achievement