This document provides an overview of management concepts including definitions of management, organizations, and managers. It discusses the key functions of management as planning, organizing, leading, and controlling. It also outlines the essential roles and skills of managers, as well as challenges they may face in a global environment like building competitive advantage and managing diverse workforces. The ultimate goal of management is to use resources efficiently and effectively to achieve organizational goals.
2. Learning Outcomes
• Explain the meaning of management
• Understand organization and its performance
• Explain the Managers and their types
• Summarize the essential roles of managers
• Describe the essential skills for managers
• Describe the process of management
• Discuss some major changes in management
• Discuss the principal challenges managers face
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3. What is Management?
• Management is the process of working with people
and resources to accomplish organizational goals.
• Management is the attainment of organizational
goals in an effective and efficient manner through
planning, organizing, leading and controlling
organizational resources. (Daft,2012)
• Organizational resources include men(human
beings), money, machines and materials.
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4. What is Management? Cont…
• Management is the art of getting things done through other people.
Mary Parker Follet (1868-1933)
• Management is the art of getting things done through and with people in
formally organized group. (Koontz)
• Management is the process of planning, organizing, commanding,
coordinating and controlling. (Fayol,1930)
• Management is the process of planning, organizing, leading and
controlling, the efforts of organization members and of using all other
organizational resources to achieve organizational goals.
(Stoner and Freeman,2009)
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5. Management?
• Hence, Management can be broadly defined
as a process of planning, organizing, leading
and controlling the limited resources
efficiently and effectively to achieve
predetermined goals and objectives in an ever
changing business environment.
• The ultimate aim of management is to
enhance the organizational productivity and
performance.
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6. Characteristics of Management
• Management is a distinct process.
• Management is an organized activity
• Management aims at the accomplishment of
predetermined objectives.
• Management is both a science and an art.
• Management is a group activity
• Management principles are universal in nature
• Management integrates human and other
resources.
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7. Why Study Management?
1. To maximize the utilization of scarce resources
2. To face the increasing competition for inputs and
outputs
3. To enhance the quality of the products and services
4. To adopt/plan for the changes in the business
environment
5. Helps people deal with their bosses and coworkers
6. Opens a path to a well-paying job and a satisfying
career
7. Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
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8. What is an Organization?
• A group of people who work together in a
structured way for a shared purpose
(Cambridge Advanced Learners Dictionary)
• An organization is a two or more people who
work together in a structured way to achieve
a specific goal or set of goals.
(Stoner and Freeman,2009)
• An organization is a deliberate arrangement of
people to accomplish some specific purpose.
(Robbins and Coulter, 2007)
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9. Contemporary Management 9
What is an Organization? Cont..
• An Organization is
– An arrangement of people and resources to accomplish
some specific purpose
• An organization can be any structured body such as
department, business, company in private or public
sector or nonprofit association.
• Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Composed of people
– Have a deliberate structure
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11. Organizational Performance
• A measure of how efficiently and effectively
managers use available resources to satisfy
customers and achieve organizational goals
• Efficiency
– A measure of how well or how productively
resources are used to achieve a goal
• Effectiveness
– A measure of the appropriateness of the goals an
organization is pursuing and the degree to which
they are achieved.
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14. 1-14
Who is responsible for supervising the use of
an organization’s resources to meet its goals?
A. Team leader
B. Manager
C. President
D. Resource allocator
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15. Manager/s
• Managers
– The people responsible
for supervising the use
of an organization’s
resources to meet its
goals.
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16. Manager/s
• The people responsible for directing the
efforts aimed at helping organizations achieve
their goals. (Stoner, Freeman and Gilbert, 2008)
• Someone who coordinates and oversees the
work of other people so that organizational
goals can be accomplished. (Robbins and Coulter, 2012)
• Someone whose primary responsibility is to
carry out the management process. (Griffin,2012)
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17. Types of Managers
• The Level of Authority (Levels of Managers)
1) First line managers
2) Middle managers
3) Top managers
• Scope of the Activities
1) Functional managers
2) General managers
• Responsibility of the Activities
1) Line managers
2) Staff managers
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21. Manager’s Roles
• Mintzberg
1) Interpersonal role
2) Informational role
3) Decisional role
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22. Decisional Roles
• Roles associated with methods managers use in
planning strategy and utilizing resources
1) Entrepreneur—deciding which new projects or programs
to initiate and to invest resources in.
2) Disturbance handler—managing an unexpected event or
crisis.
3) Resource allocator—assigning resources between
functions and divisions, setting the budgets of lower
managers.
4) Negotiator—reaching agreements between other
managers, unions, customers, or shareholders.
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23. Interpersonal Roles
• Roles that managers assume to provide direction and
supervision to both employees and the organization
as a whole
1) Figurehead—symbolizing the organization’s mission and
what it is seeking to achieve.
2) Leader—training, counseling, and mentoring high
employee performance.
3) Liaison—linking and coordinating the activities of people
and groups both inside and outside the organization.
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24. Informational Roles
• Roles associated with the tasks needed to obtain and
transmit information in the process of managing the
organization.
1) Monitor—analyzing information from both the internal
and external environment.
2) Disseminator—transmitting information to influence the
attitudes and behavior of employees.
3) Spokesperson—using information to positively influence
the way people in and out of the organization respond to
it.
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26. Discussion
• Try to view some real-life situations from the
management perspectives – what are the
relevant management issues /problems you
faced? Who is playing the manager’s role?
How is he/she perform? What would be your
suggestions/solutions?
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28. Technical Skills
• A persons’ knowledge and ability to make effective use of any
process or technique constitutes his technical skills.
• Example: Engineer, Accountant, Data entry operator, Lawyer,
Doctor etc.
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29. Human Skills
• An individuals’ ability to cooperate with other members of
the organization and work effectively in teams.
• Example: Interpersonal relationships, solving people’s
problem and acceptance of other employees.
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30. Conceptual Skills
“Ability of an
individual to analyze
complex situations
and to rationally
process and interpret
available
information”.
Example: Idea generation and analytical
process of information.
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31. Contemporary Management 31
What Makes a Good/Not-so-good Manager?
Technical Skills
• Professional,
• Goodwill, willing to share
his knowledge
Human Skills
• Good coordinator
• Gain People’s support
• Charming
• Friendly
• Nice
Conceptual Skills
• Ability to think
• Logical
• Fast mover
• Chance/ Risk Taker
• Lack of Knowledge
• Not Organized
• Difficult to find, always not in
the office
• Talking but not working
• Highly paid
• Not presentable
• Careless
• Not communicate with Team
members
• Not care about group
members
Good Manager Not-so-good Manager
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33. Mistakes Managers Make
6 Adapted from Exhibit 1.5
McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983
1. Insensitive to others1. Insensitive to others
2. Arrogant (over confidence)2. Arrogant (over confidence)
3. Betrayal (disloyalty) of trust3. Betrayal (disloyalty) of trust
4. Overly (excessively) ambitions4. Overly (excessively) ambitions
5. Specific performance problems with the business5. Specific performance problems with the business
6. Overmanaging: unable to delegate or build a team6. Overmanaging: unable to delegate or build a team
7. Unable to staff effectively7. Unable to staff effectively
8. Unable to think strategically8. Unable to think strategically
9. Unable to adapt to boss with different style9. Unable to adapt to boss with different style
10. Overdependent on advocate or mentor10. Overdependent on advocate or mentor
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34. What make managers successful?
• Hard work
• Smart work
• Patience
• Out of box thinking
• Reading and acquiring knowledge
• Ethical consciousness (awareness)
• Collaborative relationship
• Perseverance (firmness)
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36. Contemporary Management 1–36
How the Manager’s Job is Changing?
• The increasing importance of Customers
– Customers: the reason that organizations exist
• Managing customer relationships is the responsibility
of all managers and employees.
• Consistent high quality customer service is essential for
survival.
• Innovation
– Doing things differently, exploring new territory, and
taking risks
• Managers should encourage employees to be aware of
and act on opportunities for innovation.
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38. Functions or Process of Management
1-38
Figure 1.212/26/14 Contemporary Management
39. Planning
• Process of identifying and selecting
appropriate organizational goals and courses
of action.
• Planning is determining the objectives and
formulating the methods to achieve them. It is
more simply said than done. A job well
planned is half done.
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40. • During planning one needs to ask oneself the
following:
• What am I trying to accomplish i.e. what is my
objective?
• What resources do I have and do I need to
accomplish the same?
• What are the methods and means to achieve the
objectives?
• Is this the optimal path?
Planning cont…
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41. 1-41
Steps in the Planning Process
• Deciding which goals the organization will
pursue
• Deciding what courses of action to adopt
to attain those goals
• Deciding how to allocate organizational
resources
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42. 1-42
Planning cont..
• Complex, difficult activity
• Strategy to adopt is not always immediately
clear
• Done under
uncertainty
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43. 1-43
Organizing
Organizing is assembling and coordinating the
human, financial, physical, informational,
and other resources needed to achieve
goals
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44. 1-44
Organizing cont…
• Involves grouping people into departments
according to the kinds of job-specific tasks
they perform
• Managers lay out lines of authority and
responsibility
• Decide how to coordinate organizational
resources
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45. 1-45
Leading
• Leading is stimulating people to be high
performers. It is directing, motivating and
communicating with employees.
• Articulating a clear organizational vision for
its members to accomplish, and energize and
enable employees so that everyone
understands the part they play in achieving
organizational goals
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46. • Provides positive and dynamic leadership
• Provides maximum opportunities
• Provides proper motivation of personnel
• Ability to command people
Directing/Leading
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47. Controlling
• Controlling is the management function of
monitoring progress and making changes.
• Steps in the Control Process
1) Establish Standards of Performance
2) Measure Actual Performance
3) Compare Performance to Standards:
4) Take Corrective Action
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48. 1-48
Discussion Question
• What are the biggest challenge for
management in a Global Environment?
A. Building a Competitive Advantage
B. Maintaining Ethical Standards
C. Managing a Diverse Workforce
D. Global Crisis Management
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49. 1-49
Challenges for Management in
a Global Environment
• Rise of Global Organizations.
• Building a Competitive Advantage
• Maintaining Ethical Standards
• Managing a Diverse Workforce
• Utilizing Information Technology and
Technologies
• Global Crisis Management
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50. 1-50
Building Competitive Advantage
• Competitive Advantage – ability of one
organization to outperform other
organizations because it produces desired
goods or services more efficiently and
effectively than its competitors
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52. 1-52
Building Competitive Advantage
• Increasing efficiency
– Reduce the quantity of resources used to
produce goods or services
• Increasing Quality
– Improve the skills and abilities of the workforce
– Introduce total quality management
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53. 1-53
Building Competitive Advantage
• Increasing speed, flexibility, and innovation
– How fast a firm can bring new products to
market
– How easily a firm can change or alter the way
they perform their activities
• Innovation
– Process of creating new or improved goods and
services that customers want
– Developing better ways to produce or provide
goods and services
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54. 1-54
Maintaining Ethical and Socially
Responsible Standards
• Managers are under considerable pressure
to make the best use of resources
• Too much pressure may induce managers to
behave unethically, and even illegally
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55. 1-55
Managing a Diverse Workforce
• To create a highly trained and motivated
workforce managers must establish HRM
procedures that are legal, fair and do not
discriminate against organizational
members
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56. 1-56
Global Crisis Management
May be the result of:
• Natural causes
• Manmade causes
• International terrorism
• Geopolitical conflicts
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57. 1-57
Some Management Aspects
• Core Competency: Specific set of departmental skills,
abilities, knowledge and experience that allows one
organization to outperform its competitors
• Restructuring: Involves simplifying, shrinking, or
downsizing an organization’s operations to lower operating
costs
• Outsourcing: Contracting with another company, to
perform a work activity the company previously performed
itself
• Empowerment: Involves giving employees more authority
and responsibility over the way they perform their work
activities
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Exhibit 1.5 lists the top 10 mistakes managers make.
These mistakes make the difference between “arrivers” and “derailers.” Both groups were very similar and had enjoyed past success. The biggest difference between the two were how they managed people. Arrivers were much more effective in their interpersonal skills than were derailers.
Use this fact to reinforce the importance of being able to manage people rather than just processes, when it comes to management effectiveness.
There is no one correct answer. It will depend on the firm and it’s industry. Some firms need to spend more time with ethics, others with building a competitive advantage, etc. Students should be prepared to discuss based on an industry they are familiar with.
Increasing efficiency
Reduce the quantity of resources used to produce goods or services
Increasing Quality
Improve the skills and abilities of the workforce
Introduce total quality management
Increasing speed, flexibility, and innovation
How fast a firm can bring new products to market
How easily a firm can change or alter the way they perform their activities
Innovation
Process of creating new or improved goods and services that customers want
Developing better ways to produce or provide goods and services