Download What is management?

Chapter 1
What is management?
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
1-1
Learning objectives
After studying the chapter, you should be able to:
• Describe what management is, why management is
important, what managers do and how managers
utilise organisational resources efficiently and
effectively to achieve organisational goals
• Distinguish among planning, organising, leading and
controlling (the four managerial functions), and
explain how managers’ ability to handle each one
can affect organisational performance
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Learning objectives (cont.)
• Differentiate among three levels of management,
and understand the responsibilities of managers at
different levels in the organisational hierarchy
• Identify the roles managers perform, the skills they
need to execute these roles effectively and the way
new information technology is affecting these roles
and skills
• Discuss the principal challenges managers face in
today’s increasingly competitive global environment
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Janine Allis – Boost Juice
How does Janine
Allis pursue
high-performance
management at
Boost Juice?
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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What is management?
• The planning, organising, leading and controlling of
human and other resources to achieve
organisational goals effectively and efficiently
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Managers
• Managers are the people responsible for supervising
the use of an organisation’s resources to meet its
goals
• Resources include people, skills, knowledge,
machinery, computers and IT,
and financial capital
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
1-7
Organisational performance
• A measure of how efficiently and effectively
managers are using organisational resources to
satisfy customers and achieve goals
• Efficiency
– A measure of how well or productively resources are
used to achieve a goal
• Effectiveness
– A measure of the appropriateness of the goals an
organisation is pursuing and the degree to which they are
achieved
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Why study management?
• Understanding what managers do and how they do
it is of central importance to understanding how a
society works and how it creates wealth
• Helps people deal with their bosses and coworkers
• Opens a path to a well-paying job and a satisfying
career
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
1-9
Managerial functions
• Managers at all levels in all organisations perform
each of the functions of planning, organising,
leading and controlling
• Henri Fayol outlined the four managerial functions in
his book General Industrial Management (New York:
IEEE Press, 1984)
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
1-10
Four functions of management
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Planning
• Process of identifying and selecting appropriate
goals and courses of action
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Steps in the planning process
• Deciding which goals to pursue
• Deciding what courses of action to adopt
• Deciding how to allocate resources
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Organising
• Process of establishing a structure of working
relationships in a way that allows organisational
members to work together to achieve organisational
goals
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Organisational structure
• A formal system of task and reporting relationships
that coordinates and motivates organisational
members
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Leading
• Articulating a clear vision to follow, and energising
and enabling organisational members so they
understand the part they play in attaining
organisational goals
• Leadership involves using power, influence, vision,
persuasion and communication skills
• Outcome of leadership is highly motivated and
committed organisational members
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Controlling
• Evaluating how well an organisation is achieving its
goals and taking action to maintain or improve
performance
– The outcome of the control process is the ability to
measure performance accurately and regulate efficiency
and effectiveness
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Types of managers
• First-line managers
– Responsible for day-to-day operations. Supervise people
performing activities required to make the good or service
• Middle managers
– Supervise first-line managers. Responsible for finding the
best way to use departmental resources to achieve goals
• Top managers
– Responsible for the performance of all departments and
have cross-departmental responsibility. Establish
organisational goals and monitor middle managers
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Levels of management
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Relative amount of time that managers spend
on the four managerial functions
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PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Management functional areas
• Department
– A group of people who work together and possess
similar skills
or use the same
knowledge, tools,
or techniques
– Can include Finance,
Marketing, Human
Resources, Production,
Warehousing, Maintenance,
Sales etc., each of which
have managers
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Restructuring
• Often involves the use of information technology (IT)
to downsize an organisation by eliminating the jobs
of large numbers of top, middle, or first-line
managers and non-managerial employees
• Restructuring can have negative effects if changes
are not managed properly, e.g. morale loss, excess
workload for remaining employees
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Outsourcing
• Contracting with another company, at times in a low
labour/infrastructure cost country abroad, to perform
an activity the company previously performed itself
• Promotes efficiency by reducing costs and allowing
an organisation to make better use of its remaining
resources
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Empowerment
• Expanding employees’ knowledge, tasks and
responsibilities by involving them to various degrees
in decision making; seeking their input as to how
things may be done; delegating tasks and giving
employees responsibility
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PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Self-managed teams
• Groups of employees with the responsibility for
supervising their own actions such that the team can
monitor its members and the quality of the work
performed
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Managerial roles and skills
• Managerial role: the set of specific tasks that a
person is expected to perform because of the
position he or she holds in the organisation
• Mintzberg identified three categories of roles
– Decisional
– Informational
– Interpersonal
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Decisional roles
• Roles associated with methods managers use in
planning strategy and utilising resources
– Entrepreneur: deciding which new projects or programs
to initiate and to invest resources in
– Disturbance handler: managing an unexpected event or
crisis
– Resource allocator: assigning resources between
functions and divisions, setting the budgets/salaries of
lower managers
– Negotiator: reaching agreements between other
managers, unions, customers or shareholders
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Informational roles
• Roles associated with the tasks needed to obtain
and transmit information in the process of managing
the organisation
– Monitor: analysing information from both the internal and
external environment
– Disseminator: transmitting information to influence the
attitudes and behaviour of employees, colleagues and
other stakeholders outside the organisation
– Spokesperson: representing the organisation and using
information to positively influence the way people in and
out of the organisation respond to it
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Interpersonal roles
• Roles that managers assume to provide direction
and supervision to both employees and the
organisation as a whole.
– Figurehead: symbolising the organisation’s mission,
values and what it is seeking to achieve
– Leader: training, counselling, mentoring, setting goals
and expectations, initiating change, role modelling,
decision making
– Liaison: linking and coordinating the activities of people
and groups both inside and outside the organisation
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Being a manager
High variety
Fragmentation
Managerial
problems
Brevity
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Managerial skills
• Conceptual skills: the ability to analyse and
diagnose a situation and distinguish between cause
and effect
• Human skills: the ability to understand, alter, lead
and control the behaviour of other individuals and
groups
• Technical skills: the job-specific knowledge and
techniques required to perform a functional
organisational role, e.g. accounting, marketing,
information technology (IT), human resources,
welding
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Skill types needed
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PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Competencies
• Specific set of skills, abilities and experiences that
gives one manager the ability to perform at a higher
level than another manager in a particular
organisational setting
• The manager knows what has to be done and can
do it to the required standard within an appropriate
timeframe
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Challenges for management in
a global environment
• Emergence and growth of global organisations
• Building and maintaining competitive advantage
• Building and maintaining ethical and socially
responsible standards
• Managing a diverse workforce
• Staying abreast of and deploying IT and new
business models growing out of it and developments
in e-commerce
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Building and maintaining
competitive advantage
•
•
•
•
•
Increasing efficiency
Increasing effectiveness
Increasing quality
Increasing speed, flexibility and innovation
Increasing responsiveness to customers
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
1-35
Building blocks of competitive
advantage
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Work–life balance challenge
• Increase in working hours
• Increase in emotional commitment
• Impact on personal life
• Workaholism
• Disturbing trajectory of work behaviours
• Steps to redress working life trends
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Summary 1: Role of managers
• Managers are responsible for supervising the
organisation’s resources for achieving organisational
goals
• Organisations are collections of people working
together to achieve mutual goals
• Planning, organising, leading and controlling helps
an organisation reach its goals efficiently and
effectively
• Organisations create goods and services that
customers want
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Summary 2: Management functions
•
•
•
•
Planning
Organising
Leading
Controlling
Carried out efficiently
and effectively
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Summary 3: Levels of managers
• Typically, three levels
– first line
– middle
– senior
• Roles differ in emphasis in the range of activities
carried out
• Managerial hierarchies have been altered by restructuring, employee empowerment, self-managing
teams and IT in yet further attempts to achieve
efficiencies and increased effectiveness
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Summary 4: Manager roles
• According to Mintzberg, ten roles
– Figurehead
– Spokesperson
– Leader
– Entrepreneur
– Liaison
– Disturbance handler
– Monitor
– Resource allocator
– Disseminator
– Negotiator
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
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Summary 5: Management challenges
• Building competitive advantage through
efficiency, quality, speed, flexibility,
innovation, responsiveness
• Ethical behaviour
• Managing diversity
• Utilising new technologies and systems
• Work–life balance
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
1-42