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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
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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.

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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

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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

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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

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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

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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

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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

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Controlling Function
Definition

13

Monitoring employees activities

Determining whether the


organization is on target toward its
goals

Making corrections as necessary

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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

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

15

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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

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Management Skills

Exhibit 1.2

17

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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

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Management Types - Vertical


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

Exhibit 1.3

19

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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

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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

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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

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Making the Leap From Individual Performer to


Manager

Exhibit 1.4

23

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Ten Manager Roles


Category

Role

Informational

Monitor
Disseminator
Spokesperson

Interpersonal

Figurehead
Leader
Liaison

Decisional

Entrepreneur
Disturbance handler
Resource allocator
negotiator

24

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Hierarchical Levels

Exhibit 1.6

25

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Managing in Small Businesses and Nonprofit


Organizations

Role

Differences

Source

of Financial Resources

Unconventional

26

Bottomline

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Management and the New Workplace

Exhibit 1.7

27

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Management and the New Workplace


Forces

on organizations
New Management Competencies

28

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

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Managing During Turbulent Times

Stay

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

29

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