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Chapter 1

Introduction to organisations and managers

Learning outline
Define an organisation, managers, management. Describe what a manager does: skills functions, and roles. Discuss the managers job: universal? changing? Learn why students should study management.
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

What is an organisation?
A deliberate arrangement of people to accomplish some specific purpose

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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Who are managers?


Someone who coordinates and oversees the work of other people so that organisational goals can be accomplished.
first-line managers The lowest level of management, and manage the work of non-managerial employees middle managers All levels of management between the first-line level/top level of the organisation
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Who are managers?


Top managers
responsible for making organisation-wide decisions and establishing the goals and plans that affect the entire organisation.
Top level managers Middle level managers Front line managers
Employee Employee

Employee

Manager
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

What is management?
Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively.
efficiency is doing things right, or getting the most output from the least amount of inputs. effectiveness is doing the right things that is, doing those work activities that will help the organisation reach its goals. efficiency and effectiveness are related. 6
Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

What do managers do?


Functions of management (Fayol)
planning - define goals, establish strategies for achieving those goals, and develop plans to integrate and coordinate activities. organising - arranging and structuring work to accomplish the organisations goals. leading - working with and through people to accomplish organisational goals. controlling - monitoring actual performance, comparing actual to standard, and taking action if necessary. 7
Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

What do managers do?


Management roles (Mintzberg)
interpersonal
Roles that involve people and other duties that are ceremonial and symbolic in nature. Figurehead, leader, liaison.

informational
Roles that involve receiving, collecting and disseminating information. Monitor, disseminator, spokesperson.
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

What do managers do?


Management roles (Mintzberg)
decisional
Roles that revolve around making decisions Entrepreneur, disturbance handler, resource allocator, negotiator

the emphasis that managers give to the various roles seems to change with their organisational level
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

What do managers do?


Management skills (Katz)
technical skills
Knowledge of and proficiency in a certain specialised field.

human skills
The ability to work well with other people individually and in a group.

conceptual skills
The ability to think and to conceptualise about abstract and complex situations.
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

What do managers do?


Management functions versus management roles
the functions approach still represents the most useful way of conceptualising the managers job.

Management skills
skills (conceptual, communication, effectiveness and interpersonal) will continue to be an important way of describing what a manager does. 11
Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Is the managers job universal?


Generic issues
organisational level
Differences are of degree and emphasis, not of function.

organisational type
Commonalities to all managerial jobs Management of profit and not-for-profit organisations
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Is the managers job universal?


Generic issues
organisational size
Managers in both small and large organisations perform essentially the same activities, but how they go about them and the proportion of time they spend on each one are different.

cross-national transferability
Research on managerial practices between countries have not generally supported the universality of management concepts.

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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

How is the managers job changing?


Three changes having a significant impact on managers jobs:
1. the increasing importance of customers
Consistent high-quality service is essential and employees are an important part of the equation.

2. innovation
Establishing an innovative culture within organisations is an important driver of innovation. 14
Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

How is the managers job changing?


Three changes having a significant impact on managers jobs:
3. sustainability
Meeting the needs of people today without compromising the ability of future generations to meet their own needs. A companys ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental and social opportunities into its business strategies.
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Why study management?


The universality of management The reality of work The way we manage our own lives The challenges and rewards of being a manager
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Why study management?

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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Why study management?


Reality of work
consider this:
You will either manage or be managed. Studying management gives you an insight into the way your boss behaves, and the internal workings of organisations.
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Why study management?


Managing yourself
plan, organise, lead and control your own life increased emphasis on individual control and responsibility working from home, self-managed work groups or teams, empowerment, quality circles
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Why study management?


Challenges and rewards of being a manager
some challenges
Have to make do with limited resources Success depends on others work performance

some rewards
Help others find meaning at work Play a role in influencing organisational outcomes
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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Critical thinking question:


Is management out of date? Like the combustion engine, [management is] a technology that has largely stopped evolving, and that's not good, says management guru Gary Hamel.

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Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

Robbins, Bergman, Stagg, Coulter Foundations of Management 3e 2009 Pearson Education Australia

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