Chapter 1 What is management?

Organizations and Behavior Unit 3

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Objectives
Term: Organization Need for management of people and activities Roles of managers Managerial authority Authority, power, and responsibility Leadership activities Delegation of authority.

Important notes
Gender issue Must choose one but can be either he or she I choose he Do not think that means that only men can be managers or labor because it does not mean that at all English does not have a neuter third-person singular pronoun which can be used for people We live within our limitations.

What is an organization?
How can we do something that we cannot do alone Move a large stone A system of cooperative human activities Definition: Social arrangements for the controlled performance of collective goals. What do you think? What examples of organizations can you think of? Ex: Family, UNICEF, Chelsea, etc.
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Social arrangements
Why join an organization? Ability to achieve greater goals Ability to develop specialized expertise Need for relationships with other people Formal organizations Companies, charities, etc. Does not change with a change in membership Informal organizations People who lunch together, cliques.
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Activity
Jason, Mark, Gary, and Robbie setup in business to repair musical instruments (mainly guitars and drums). They know they must worry most about Taking orders Doing the repairs Checking quality of work before delivery Suggest ways in which they could structure their business.

Collective goals
Ideological goals
Beliefs and values, mission Ex: Google: Dont be evil! LG: Lifes good!

Formal goals
Set by leadership Members attain these goals so they can also attain their own

Shared personal goals

When members agree what they want from the organization Discussion group Academics deciding to pursue research

What do you think? [Activity 2]

In what areas would a business organization want to set goals?
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Mission statements
Read For Discussion: Case Examples on page 7 Whose goals are these? Who will benefit Inside the organization? Outside the organization? Who are some stakeholders? ( a person or company that is involved in a particular organization, project, system, etc. especially because they have invested money in it)
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Controlled performance
Organizations must have reliable, systematic ways to ensure: Its collective goals are known and understood by all members The necessary resources (including members time and effort) are utilized so that goals will be reached without undue risk, disruption, or waste They can tell whether, or to what extent, they have reached their goals and if not, why not and what can be done This is control, as in controlled performance.
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Purpose of management
Why do we need management? Who sets and communicates goals? Who ensures the goals are met? Who will harmonize the organizations and members goals? Who will ensure members pull together without waste? Who will ensure resources are used to best effort? Who will ensure uncertainty and risk are reduced? Who will create and maintain the corporate identity?
Necessary when dealing with employees and other stakeholders

Who will look after the interests of the stakeholders, especially shareholders (they cannot participate in day-to-day operations)?

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Management functions
Planning Looking into the future, setting goals and strategies Organizing Work scheduling: What will be done, when Work allocation: Who will do what Commanding Instructing and motivating subordinates Coordinating Harmonizing activities of individuals and groups Controlling Monitoring, ensuring performance is up to plan Identify and correct deviations.

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Activity
Review Activity 3 on page 10 Under which of the five headings does each activity fall?

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Managing tasks
Planning allows managers to identify The objectives they for which they are responsible What actions will serve towards achieving those objectives How successful they are in achieving those objectives Uncertainty Plans give direction and predictability, form of risk management Need for coordination, ensuring that Sub units know what they need to achieve Work flows from one process or department to another easily Resources are available when and where required Required work is being done by someone Products/services with required quality available to the customer at the right place, right price, and right time What happens if these are not carried out?

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Managing tasks (cont.)

Need for objectives
People need to have goals and a purpose If management does not set them, they will set their own Chaos will ensue

Planning involves decisions about

What to do in the future How to do it When to do it Who should do it (also part of organizing)

Levels of activity
Strategic what overall objectives should be Tactical what products should be produced, how to organize Operational what needs done from day to day.

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Types of plan
Objectives end goals: to earn a profit or provide x service Strategies long term plans: to be first in customers minds Policies guidelines for decision making: 5 year guarantees Procedures sequences of actions, common at lower levels
Efficiency the most efficient way to do something Routine remove the need for decisions Standardization making output more consistent

Rules prescribes a specific, definite action in a situation

Does not allow discretion (a policy does) Employees may not use company phones for personal calls

Programs groups of plans: computerization or expansion Budgets formal statement of expected results, in numbers.

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Activity
Read activity 4 on page 13 What sort of plans are described?

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Control cycle

Making a plan Carrying out plan Monitoring and measuring actual results Comparing actual to target results Evaluating decide if further action is necessary Implementing corrective action where necessary.

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Managing people
Managers are also leaders
Team members are more effective when committed to objectives

Managers are communicators

Leaders inspire, influence, persuade, and resolve conflict

Managers are human resource mobilizers

Hiring, retaining, developing, allocating, and firing staff

Managers have superiors, peers, and colleagues

Maintain relationships to get resources to achieve objectives

Managers represent the organization

To others inside and outside the organization.
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Activity
Brainstorm some alternative terms to replace or add to the term commanding to describe managements people function.

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Managing performance
Peter Dracker argued that business managers should always be measures first and foremost by the economic results they produce. Jobs within the overarching function:
Managing a business: creating customers, innovation Managing mangers: creating a sound culture and structure of management, setting objectives, developing future managers Managing the workers that work.

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Managerial roles
Interpersonal
Figurehead being a representative of the organization Leader selecting, training, and uniting team members Liaison communicating with people outside department

Informational
Monitor Receiving information formally and informally Disseminator giving information to subordinates Spokesman giving information to interested outside parties

Decisional
Entrepreneur seize opportunities Disturbance-handler coping with unexpected, fixing mistakes Resource allocator distributing limited resources Negotiator for resources and influence.

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Activity
Read activity 6 on page 17 This manager takes on which role(s)?

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Nature of managerial authority

Authority: The right to do something, or to get others to do it Responsibility: The liability of a person called to account for the way he exercised authority given to him, an obligation Authority is normally passed down the organization structure Can be given from below in case of an elected team leader Delegation: The process whereby a superior gives a subordinate some of his authority (authority sharing) Accountability: The duty of the individual to report to his superior on how he has used his delegated authority.

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Delegation
Reasons to delegate to those below you There are physical and mental limits to what you can do Routine, less important decisions can be given to subordinates Employees want to be involved in decisions Continuity of management Reasons to be cautious about delegating Low trust in subordinates Accountability remains with you Desire to stay in touch with the team Unwillingness to admit subordinates can do part of your job Poor control systems Lack of understanding about delegation Avoiding doing anything risky or different.

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Activity
Suggest four ways in which senior management can encourage managers to delegate more.

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Power
Power: Ability to do something or get someone else to do it Physical power military Personal power charisma Position power Access to information Access to other powerful people Control over rules and procedures Resource power labor Expert power knowledge needed by others.

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Kinds of authority
Line authority: a superior passes authority to a subordinate Staff authority: personnel manager having more authority over a salesman than does the sales manager by nature of the specific training and experience in HR issues Functional authority: formal responsibility for one area across organization; e.g., disciplinary actions for HR manager.
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Activity
Read activity on page 20 Line authority: a superior passes authority to a subordinate Staff authority: personnel manager having more authority over a salesman than does the sales manager by nature of the specific training and experience in HR issues Functional authority: formal responsibility for one area across organization; e.g., disciplinary actions for HR What kind of authority do these managers have A) The chief accountant B) The production director C) The personnel director.

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Conflict
Happy family view Organizations are basically harmonious They are cooperative structures with common objectives Management power is legitimate Conflicts are exceptional caused by misunderstandings, clashes Conflict view Sees conflict amongst competing subgroups and unavoidable Constant internal struggle for control Individual and organizational interests do not always coincide Management must create structure for collaboration, factoring in objectives of all stakeholders.

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Conflict (cont.)
Conflict can be managed by Avoidance One party sees conflict exists but withdraws or suppresses it Smoothing Emphasize areas of agreement, gloss over areas of disagreement Compromise Agreeing, in part, with others point of view. No winner, no loser. Confrontation/collaboration Working together to find true source of problem and solutions Forcing Using ones power to force other to submit.

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Activity
Read activity 9 on page 22 Which conflict handling style is most appropriate in each case?

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Kinds of power
Unilateral power Rewards and punishments Examples: structural, formal, authority, rules and regulations Pluralistic power Right to make decisions is divided among different specialists Individual power based on influence, not domination Power not equally distributed Benefits: resources are scattered throughout society Some resources are available to nearly everyone No one is all-powerful, strong in one area but weak in another.
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Types of leadership
Transactional Leadership Clarify goals and objectives, focus on short term Focus on control mechanisms Transformational Leadership Establish long-term vision Create a climate of trust

Solving problems
Maintain status quo or improve current situation Plan, organize, and control Guard and defend existing culture Positional power exercised

Make people solve own problems through empowerment

Change current situation. Every threat is seen as an opportunity. Train, coach, counsel, and mentor Change culture Power comes from relationships and influencing people. Pressure exerted is more subtle, done with more finesse.

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Leadership maturity
Opportunist Strong reliance on authoritarian, unilateral power; self-interest Diplomat Strong reliance on pluralistic power, seeking consent Expert Believes in the right way to do things, want to learn and grow Achiever Applies strategies, plans, and actions and seek most direct route through problems. Seek to clarify and simplify. Strategist Sees big picture, can reframe circumstances, everyone given opportunity to self-maximize Magician Focus is to transform society, organization, and self.

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Managing change
Change deals with small steps In the environment In the products produced In technology or working methods In management and working relationships In organization structure and size Transformation includes major changes In structure In patterns and working relationships In employee consciousness Requires minimum Strategist level of maturity.

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End of Chapter 1

Questions?

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