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The Nature of Managerial Work 2-1 After studying this chapter, you should be able to understand: The different roles and activities commonly required for managers. How managerial roles and activities are affected by aspects of the situation. How managers cope with demands, constraints, and choices confronting them. 2-2 The importance of external activities and networking for managers. How managers solve problems and make decisions. How managers can make effective use of their time. 2-3 To advance the objectives of the organization through the effective use of available resources Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 4 Superiors Peers Colleagues Regulators Stakeholders Customers Vendors Subordinates Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 5 Hectic work pace – Continuous requests for information, assistance, direction, and authorization Varied and fragmented work content – Interruptions occur frequently, conversations are disjointed, important activities are interspersed with trivial ones 2-6 Many reactive activities – - Problems occur in a mostly random order; - Managers choose to react to some problems when they become aware of them, others are postponed or ignored; - There are more problems that a manager can handle at any given time; - Managers are more likely to respond to a problem when there is immediate pressure for action due to a crisis, deadline, or the demands of the boss. Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 7 Peer and outsider interaction (Ivory Tower Syndrome) - Managers typically spend considerable time with persons other than their subordinates or their bosses - Managers spend considerable time with outsiders such as customers, clients, suppliers, subcontractors, government officials, civic leaders and other business leaders. These elements frequently lead to: Disorderly and political decision processes Informal and adaptive planning Involving emotions and intuition Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 8 Emotions and intuition are often involved Frequently characterized by confusion and emotions rather than by rationality Information is often distorted or suppressed to serve preconceptions and biases about the best course(s) of action BEWARE: Group Think Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 9 Groupthink is a psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome. Group members try to minimize conflict and reach a consensus decision without critical evaluation of alternative viewpoints by actively suppressing dissenting viewpoints, and by isolating themselves from outside influences. Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 10 Avoids discussing controversial issues or alternative solutions; Produces the illusion of invulnerability Concurrence-seeking becomes so dominant in a cohesive in-group that it tends to override realistic appraisal of alternative courses of action. When five people are in agreement without critical thinking, four of them become unnecessary Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 11 Important decisions are disorderly and political Different people involved in making a decision often disagree about the true nature of a problem or the best course of action for the solution. E.G.: Hire more people vs. pay for overtime Sales vs. production Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 12 The Problem: Sales of your primary source of revenue are falling badly. How would the following people view this problem: Sales Production Human Resources Suppliers Engineering Marketing Finance Customers Shareholders R&D Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 13 Pearl Harbor (1941) Bay of Pigs Invasion (1961) Vietnam (1964) Challenger explosion (1986) US Presidential Election (2016) Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 14 Routine decisions Solving operational problems Short term goals Work schedules Work assignments Allocation of resources There is usually are ready-made and low risk decisions Therefore, they can possibly be delegated or digitized Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 15 Most planning is informal and adaptive Short-term planning (1-30 days) are usually quite specific and detailed Long term (1-10 years) are generally vague, incomplete and loosely connected. Much of the important strategies decisions were made outside of the formal process in an incremental, flexible and intuitive manner. Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 16 Please make a list of roles that a manager must be able to play in order to be effective: 1 2 3 4 5 6 Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 17 Born: 2 September 1939 Professor of Management Studies at McGill University, Montreal, “Companies are communities. There's a spirit of working together. Communities are not a place where a few people allow themselves to be singled out as solely responsible for success.” Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 18 Leader Spokesperson Liaison Entrepreneur Figurehead Disturbance Handler Monitor Resource Allocator Disseminator Negotiator 2-19 Coding the content of activities observed in a study of executives: Expected Rolls of a Manager Leader – responsible for making their organizational sub-unit function as an integrated whole in the pursuit of its basic purpose; Liaison – Intended to establish and maintain a web of relationships with individuals and groups outside of a manager’s organizational unit Copyright© 2013 Pearson Education, Inc. publishing as Prentice Hall Leadership in Organizations 20 Figurehead – Leaders are expected to perform symbolic duties of a legal and social nature Monitor – Managers continually seek information from a variety of sources to keep up to date on the changing nature of the business – and to perform SWOT analyses from time to time; Disseminator – Leaders have special access to information not available to subordinates Copyright© 2013 Pearson Education, Inc. publishing as Prentice Hall Leadership in Organizations 21 Spokesperson – Leaders are expected to transmit information and express value statements to people outside of their organization Entrepreneur – The leader acts as an initiator or designer of controlled change to exploit opportunities for improving the existing situation Disturbance Handler – The leader deals with student crises that cannot be ignored Copyright© 2013 Pearson Education, Inc. publishing as Prentice Hall Leadership in Organizations 22 Resource Allocator – Leaders exercise their authority to allocate resources such as money, personnel, material, equipment, facilities, and services Negotiator – Leaders have the authority to impact negotiations requiring a substantial commitment of resources Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 23 • Emotions and intuition are often involved • Important decisions are disorderly and political • Routine decisions often involve problems for which ready made and low risk solutions are available • Most planning is informal and adaptive 2-24 Contrary to images of an orderly rational process, decision-making is often characterized by: Disorderly processes Incomplete or biased information Incomplete analyses Reliance on past solutions Difficulty reaching agreement 2-25 Demands and constraints and choices define the job of a manager and strongly influence the behavior of the manager Demands – the required duties, activities and responsibilities Constraints – Characteristics of the organization and the external environment, e.g. rules, policies, regulations, laws, availability of resources, physical locations, etc. Choices – e.g. Required vs. optional Establishing priorities Proper delegation of responsibilities Demands and constraints are situational influences on the leader and affect the scope of the leader’s choice of actions 2-26 Management level – Executive, senior, mid, 1st line supervisors Strategy related High level managers have more responsibility for making important decisions, establishing objectives, & planning strategies Tactical or operations related Lower level managers have less discretion and freedom of action and must operate within the constraints imposed by formalized rules and policy decisions 2-27 Organizational unit size – Span of control, multi-site, conglomerate, global, etc. As span of control increases upper-level managers make more autocratic decisions, but use more delegation As the size of a work unit increases, so does the administrative workload Managers of large work units have less opportunity for interacting with individual subordinates and maintaining interpersonal relationships with them,. Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 28 External dependencies Other units must do their job before we can do our job As interdependence increases with other sub-units, coordination with them becomes more important and there is more need for mutual adjustments in plans, schedules and activities Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 29 Crisis situations Terrorist attack, natural disasters, extreme weather, labor strife, bankruptcy of principle supplier In many crisis situations, officers were more directive, autocratic, and goal-oriented Copyright© 2013 Pearson Education, Inc. publishing as Prentice-Hall Leadership In Organizations 30 Understand the reasons for demands and constraints Expand the range of choices – Plan A, Plan B, Plan C, etc. Determine what you want to accomplish Plan your time smartly Prioritize your must-do, should-do, & want to-do lists Limit unnecessary activities 31 Identify important problems that can be or must be solved Look for connections among problems Experiment with innovative solutions – (If five managers agree on a business solution, four of them are unnecessary) Take decisive action to deal with crises 32 Homework Assignment a. Re-read Chapter 2 b. Read and be prepared to discuss Chapter 3 c. During class 5, team 1 will lead the discussion on the material covered in Chapter 2. d. Team 2 will analyze the Case Study that is printed at the end of Chapter 2. 33