MANAGEMENT

R I C H AR D L. D AF T

Managing in Turbulent Times

CHAPTER 1

Learning Objectives

Describe the four management functions and the type of

management activity associated with each.
Explain the difference between efficiency and
effectiveness and their importance for organizational
performance.
Describe management types and the horizontal and
vertical differences between them.
Describe conceptual, human, and technical skills and
their relevance for managers and employees.
Define 10 roles that managers perform in organization.

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Learning Objectives (contd.)

Understand the personal challenges involved in

becoming a new manager in an organization in todays
world.
Discuss the management competencies needed to deal
with todays turbulent environment, including issues such
as diversity, globalization, and rapid changes.
Explain the leadership skills needed for effective crisis
management.

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

The Nature of Management

1.
2.

3.

Managers have to cope with diverse

and far-reaching challenges
To keep pace with ever-advancing
technology
To find ways to incorporate the Internet
and e-business into their strategies and
business model
Strive to remain competitive in a
dynamic and far reaching world
Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

What Do Managers Have in Common?

They

get things done through their

organization.
They create the systems, conditions and
environment that enable organizations to
survive and thrive beyond the tenure of
any specific supervisor or manager.

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Definition of Management
The

attainment of organizational goals in

an effective and efficient manner through
Four functions

planning,
organizing,
leading, and
controlling organizational resources.

Managers use a multitude of skills to

perform functions
7

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Functions of Management
Planning
Select goals and
ways to attain
them

Organizing

Controlling
Monitor activities
and make
corrections

Assign responsibility
for task
accomplishment

Leading
Use influence to
motivate employees

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

The Process of Management

Planning
Select goals and
ways to attain
them
Resources
Human
Financial
Raw Materials
Technological

Performance
Attain goals
Organizing

Controlling
Monitor activities
and make
corrections

Assign responsibility
for task
accomplishment

Information

Products
Services
Efficiency
Effectiveness

Leading
Use influence to
motivate employees

Exhibit 1.1

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Planning Function
Definition

Defines goals for future organizational

performance
Decides tasks and use of resources needed

Corporate

10

Examples

Planning AOL Time Warner The Lord of

the Rings
Lack of planning Merry-Go-Round

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Organizing Function

Definition

Follows planning
Reflects how organization tries to accomplish plan
Involves assignment of
tasks

into departments
authority and allocation of resources across organization

Corporate Examples - Structural reorganizations

11

IBM, the Catholic Church, Microsoft, Motorola, the FBI

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Leading Function

Definition

The use of influence to motivate

employees to achieve the organizations
goals.
Corporate Examples Michael Dell, Meg
Whitman of eBay, Cara Kakuda of Nextel

12

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Controlling Function
Definition

13

Monitoring employees activities

Determining whether the

organization is on target toward its
goals

Making corrections as necessary

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Controlling Function
New Trends
Empowerment

and trust of employees =

training employees to monitor and correct
themselves
New information technology provides control
without strict top-down constraints
Lack of Control Information can lead to
Organizational Failure
14

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Organizational Performance
Attainment of organizational goals in
an efficient and effective manner
The Process of Management

15

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

2nd half of
definition of
management

Organizational Performance

16

Organization - social entity that is goal directed and

deliberately structured

Effectiveness - degree to which organization achieves a

stated goal

Efficiency - use of minimal resources (raw materials,

money, and people) to produce the desired volume of
output

Performance organizations ability to attain its goals by

using resources in an efficient and effective manner

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Management Skills

Exhibit 1.2

17

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Management Skills
Conceptual Skills Cognitive ability to see the
organization as a whole and the relationships among
its parts
Human Skills ability to work with and through
other people and to work effectively as a group
member
Technical Skills understanding of and
proficiency in the performance of specific tasks
When skills Fail

Experiential Exercise: Management Aptitude Questionnaire

18

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Management Types - Vertical

Managerial Levels in the Organizational Hierarchy
Managerial Levels in the Organizational Hierarchy

Exhibit 1.3

19

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Management Types - Horizontal

Functional

Responsible for a department that performs

a single functional task and
Has employees with similar training and
skills

General

20

Managers

Managers

Responsible for several departments that

perform different functions

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Managerial Types - Horizontal

Functional Managers

21

Advertising
Sales
Finance
Human Resources
Manufacturing
Accounting

General Managers

Self-contained division
such as a Macys
department store

Project managers have

general management
responsibility as they
coordinate people across
several departments

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

What is it like to be a Manager?

Manager

Activities

Multitasking

Life on Speed Dial

Managers

22

Fragmentation, Variety, Brevity

Role

Set of expectations for ones behavior

Diverse activities --10 roles

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Making the Leap From Individual Performer to

Manager

Exhibit 1.4

23

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Ten Manager Roles

Category

Role

Informational

Monitor
Disseminator
Spokesperson

Interpersonal

Figurehead
Leader
Liaison

Decisional

Entrepreneur
Disturbance handler
Resource allocator
negotiator

24

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Hierarchical Levels

Exhibit 1.6

25

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Managing in Small Businesses and Nonprofit

Organizations

Role

Differences

Source

of Financial Resources

Unconventional

26

Bottomline

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Management and the New Workplace

Exhibit 1.7

27

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Management and the New Workplace

Forces

on organizations
New Management Competencies

28

Dispersed leadership
Empowering others
Collaborative relationships
Team-building skills
Learning organization

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Managing During Turbulent Times

Stay

Calm
Be Visible
Put People Before Business
Tell the Truth
Know When to Get Back to Business

29

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.