1.Managing in a dynamic environment

Managing in aManaging in a
DynamicDynamic
EnvironmentEnvironment

BooksBooks
 1. Essentials of Management by Harold1. Essentials of Management by Harold
Koontz & Heinz Weihrich (McGrawHill)Koontz & Heinz Weihrich (McGrawHill)
 2. Management by Stephen P. Robbins,2. Management by Stephen P. Robbins,
Mary Coulter & Neharika Vohra (Pearson)Mary Coulter & Neharika Vohra (Pearson)
 3. Management A Competency-Based3. Management A Competency-Based
Approach by Hellriegel, Jackson & SlocumApproach by Hellriegel, Jackson & Slocum
(South-Western Cengage Learning(South-Western Cengage Learning

Learning ObjectivesLearning Objectives
 Define Organization, Managers AndDefine Organization, Managers And
Management.Management.
 Explain the functions, roles, and skills ofExplain the functions, roles, and skills of
managers & how manager’s job ismanagers & how manager’s job is
changingchanging
 What Competencies needed forWhat Competencies needed for
Managerial WorkManagerial Work

StoryStory
ofof
Dhirubhai AmbaniDhirubhai Ambani

A Unique PersonalityA Unique Personality
 Capacity to Dream BigCapacity to Dream Big
 Desire to AchieveDesire to Achieve
 Dedication to convert Dreams into RealityDedication to convert Dreams into Reality

Message......Message......
 Pedigree no longer significantPedigree no longer significant
 Perform and Success will followPerform and Success will follow
 Meeting deadlines vs. Beating deadlinesMeeting deadlines vs. Beating deadlines
 Convert adversities into opportunitiesConvert adversities into opportunities
 Pursue your goals even in face of difficultiesPursue your goals even in face of difficulties
 Don’t accept defeat – Challenge NegativeDon’t accept defeat – Challenge Negative
Forces – Never Give upForces – Never Give up
 Courage with Conviction – Hope is your mostCourage with Conviction – Hope is your most
powerful weaponpowerful weapon

7 MANTRAS OF7 MANTRAS OF
SUCCESSSUCCESS
AN IT PIONEERAN IT PIONEER
Narayana MurthyNarayana Murthy

1.1. Every obstacle is an OpportunityEvery obstacle is an Opportunity
2.2. Never Give – up.Never Give – up.
3.3. Respect Your Competitors.Respect Your Competitors.
4.4. VisionaryVisionary
5.5. TrustTrust
6.6. Believe in your Idea.Believe in your Idea.
7.7. HumblenessHumbleness

M. S. DhoniM. S. Dhoni
7 Rules of Success7 Rules of Success

1.1. Be Simple & FocusedBe Simple & Focused
2.2. Proud YourselfProud Yourself
3.3. Effective Time ManagementEffective Time Management
4.4. Don’t take PressureDon’t take Pressure
5.5. Be Fearless & CalmBe Fearless & Calm
6.6. Take ResponsibilityTake Responsibility
7.7. Don’t blame others, Improve yourselfDon’t blame others, Improve yourself
•

What is Management?What is Management?
 Is the process of designing and maintaining anIs the process of designing and maintaining an
environment in which individuals, working togetherenvironment in which individuals, working together
in groups, efficiently accomplish selected goals;in groups, efficiently accomplish selected goals;
 Managers carry out managerial functionsManagers carry out managerial functions
 Management applies to all kinds of organizationsManagement applies to all kinds of organizations
 Aim of all managers is to create a SURPLUSAim of all managers is to create a SURPLUS
 Managing concerned with PRODUCTIVITYManaging concerned with PRODUCTIVITY
which implies;which implies;
 EFFECTIVENESS AND EFFICIENCYEFFECTIVENESS AND EFFICIENCY
Goals:Goals: Purpose that an organization strives to achieve; organizationsPurpose that an organization strives to achieve; organizations
often have more than one goals, goals are fundamental elements ofoften have more than one goals, goals are fundamental elements of
organization.organization.

What is an Organization?What is an Organization?
 Group of peopleGroup of people working togetherworking together to create ato create a
surplus. Surplus may be;surplus. Surplus may be;
 profit in business organizationsprofit in business organizations
 Satisfaction of needs in non profit organizationsSatisfaction of needs in non profit organizations
 Universities create a surplus through Generation &Universities create a surplus through Generation &
dissemination of knowledge and providing servicedissemination of knowledge and providing service
to societyto society
 Goals cannot be achieved by individuals actingGoals cannot be achieved by individuals acting
alonealone
 An organization has a structure with relationshipsAn organization has a structure with relationships

Is management essential?Is management essential?
 Yes, essential to all organizations;Yes, essential to all organizations;
 Small or largeSmall or large
 Profit or non profit enterprises – business, Govt,Profit or non profit enterprises – business, Govt,
hospital, university, etchospital, university, etc
 Manufacturing or service industryManufacturing or service industry
 Managers’ responsibility to enable individualsManagers’ responsibility to enable individuals
to make their best contributions to groupto make their best contributions to group
objectivesobjectives
 Effective management is concern of allEffective management is concern of all
organizationsorganizations

Universal Need for ManagementUniversal Need for Management

Goals of all Managers & OrganizationsGoals of all Managers & Organizations
 Aim of all managers should be a surplus.Aim of all managers should be a surplus.
 Managers must create environment where peopleManagers must create environment where people
can;can;
 accomplish group goals with least amount ofaccomplish group goals with least amount of
time, money, materials and personaltime, money, materials and personal
dissatisfaction Ordissatisfaction Or
 Achieve as much as possible of a desired goalAchieve as much as possible of a desired goal
with available resourceswith available resources
 In a non-business organization, managers mustIn a non-business organization, managers must
strive to accomplish goals with minimum resourcesstrive to accomplish goals with minimum resources
or as much as possible with available resourcesor as much as possible with available resources

Characteristics of Excellent CompaniesCharacteristics of Excellent Companies
Authors of ‘In Search of Excellence’ – Thomas Peters &Authors of ‘In Search of Excellence’ – Thomas Peters &
Robert Waterman identified following traits in 43 excellentRobert Waterman identified following traits in 43 excellent
enterprises;enterprises;
 Were oriented towards actionWere oriented towards action
 Learned about needs of their customersLearned about needs of their customers
 Promoted managerial autonomy & entrepreneurshipPromoted managerial autonomy & entrepreneurship
 Paid close attention to needs of their peoplePaid close attention to needs of their people
 Driven by philosophy based on values of their leadersDriven by philosophy based on values of their leaders
 Focused on business they knew bestFocused on business they knew best
 Simple organization structure & lean staffSimple organization structure & lean staff
 Centralized as well as decentralized, depending onCentralized as well as decentralized, depending on
appropriatenessappropriateness
Success is transitory, demands continuing hard work to adaptSuccess is transitory, demands continuing hard work to adapt
to changes in the environmentto changes in the environment

Measure of Excellence:Measure of Excellence:
Productivity, Effectiveness & EfficiencyProductivity, Effectiveness & Efficiency
 Productivity: The output-input-ratio within a timeProductivity: The output-input-ratio within a time
period with due consideration for quality.period with due consideration for quality.
 Can be improved by;Can be improved by;
 Increasing outputs with same inputsIncreasing outputs with same inputs
 Decreasing inputs, maintaining same outputs orDecreasing inputs, maintaining same outputs or
 Increasing outputs, decreasing inputsIncreasing outputs, decreasing inputs
 Implies effectiveness & efficiency in individual &Implies effectiveness & efficiency in individual &
organizational performanceorganizational performance
 Effectiveness and Efficiency:Effectiveness and Efficiency:
 Effectiveness is the achievement of objectives.Effectiveness is the achievement of objectives.
 Efficiency is achievement of the ends with the leastEfficiency is achievement of the ends with the least
amount of resources.amount of resources.
“The greatest opportunity for increasing productivity is surely to be found in
Knowledge work itself, and especially in management.” – Peter F. Drucker

Effectiveness and Efficiency in ManagementEffectiveness and Efficiency in Management

Managing: Science or Art?Managing: Science or Art?
 Managing like all practices (medicine, musicManaging like all practices (medicine, music
composition, engineering, or baseball) – is an art.composition, engineering, or baseball) – is an art.
 It is know-how: doing things in light of realities of aIt is know-how: doing things in light of realities of a
situation.situation.
 Managers can work better using the organized knowledgeManagers can work better using the organized knowledge
about managementabout management
 Organized knowledge underlying the practice isOrganized knowledge underlying the practice is
science;science;
 Therefore science and art are not mutually exclusive; theyTherefore science and art are not mutually exclusive; they
are complementaryare complementary
 Attempting to manage without management science mustAttempting to manage without management science must
trust luck, intuition or do what they did in the past.trust luck, intuition or do what they did in the past.

Question:Question:
what equips managers towhat equips managers to
manage?manage?

What Are Managerial Competencies?
 Competency – a combination of knowledge,
skills, behaviors, and attitudes that contribute to
personal effectiveness
 Managerial Competencies – sets of knowledge,
skill, behaviors, and attitudes that a person
needs to be effective in a wide range of positions
(management) in various types of organizations

Why are Managerial Competencies
Important?
 You need to use your strengths to do your best
 You need to know your weaknesses
 You need developmental experiences at work to become
successful leaders and address your weakness
 You probably like to be challenged with new learning
opportunities
 Organizations do not want to waste human resources
 Globalization, deregulation, restructuring, and new
competitors add to the complexity of running a business

A Model of ManagerialA Model of Managerial
CompetenciesCompetencies
(adapted from Figure 1.1)(adapted from Figure 1.1)
Teamwork
Competency
Teamwork
Competency
Global
Awareness
Competency
Global
Awareness
Competency
Strategic
Action
Competency
Strategic
Action
Competency
Planning and
Administration
Competency
Planning and
Administration
Competency
Self-Management
Competency
Self-Management
Competency
Communication
Competency
Communication
Competency

A Model of ManagerialA Model of Managerial
CompetenciesCompetencies
Teamwork
Competency
Teamwork
Competency
Global
Awareness
Competency
Global
Awareness
Competency
Strategic
Action
Competency
Strategic
Action
Competency
Planning and
Administration
Competency
Planning and
Administration
Competency
Self-Management
Competency
Self-Management
Competency
Communication
Competency
Communication
Competency
Managerial
Effectiveness
Managerial
Effectiveness

- People responsible for- People responsible for
directing the efforts aimeddirecting the efforts aimed
at helping organizationsat helping organizations
achieve their goals.achieve their goals.
- A person who plans,- A person who plans,
organizes, directs andorganizes, directs and
controls the allocation ofcontrols the allocation of
human, material, financial,human, material, financial,
and information resourcesand information resources
in pursuit of thein pursuit of the
organization’s goals.organization’s goals.

ManagementManagement
 ManagementManagement refers to the tasks and activitiesrefers to the tasks and activities
involved in directing an organization or one ofinvolved in directing an organization or one of
its units: planning, organizing, leading, andits units: planning, organizing, leading, and
controlling.controlling.
 The process of reaching organizational goals byThe process of reaching organizational goals by
working with and through people and otherworking with and through people and other
organizational resources.organizational resources.

 Functional Managers: A manager responsible for
just one organizational activity such as accounting,
human resources, sales, finance, marketing, or
production
 Focus on technical (domain) areas of
expertise
 Use communication, planning and
administration, teamwork and self-
management competencies to get work
done
Function: A classification referring to a group of
similar activities in an organization like marketing,marketing,
finance or operations.finance or operations.

 General Managers: responsible for the operations
of more complex units—for example, a company or
division
 Oversee work of functional managers
 Responsible for all the activities of the unit
 Need to acquire strategic and multicultural
competencies to guide organization
(cont’d)
 Many Other types of managers

What Managers Do?What Managers Do?
 Three Approaches to Defining WhatThree Approaches to Defining What
Managers Do.Managers Do.
 Functions they perform.Functions they perform.
 Roles they play.Roles they play.
 Skills they need.Skills they need.

Basic Managerial FunctionsBasic Managerial Functions
OrganizingOrganizing
PlanningPlanning
ControllingControlling
LeadingLeading

Management FunctionsManagement Functions

Management and OrganizationalManagement and Organizational
ResourcesResources

Planning
 Determining organizational goals and
means to reach them
 Managers plan for three reasons
1. Establish an overall direction for the
organization’s future
2. Identify and commit resources to achieving goals
3. Decide which and how tasks must be done to
reach those goals & when

Organizing
 Process of deciding where decisions will be made, who
will perform what jobs and tasks, and who will report
to whom in the company
 Includes creating departments and job descriptions

Leading
 Manager’s job is to work with &
through people to accomplish goals
 Getting others to perform the
necessary tasks by guiding and
motivating them to achieve the
organization’s goals
 Crucial element in all functions

1.1. Gather informationGather information that measures recent performancethat measures recent performance
2.2. CompareCompare present performance to pre-established standardspresent performance to pre-established standards
3.3. Determine modificationsDetermine modifications to meet pre-established standardsto meet pre-established standards
“Process by which a person, group, or organization
consciously monitors performance and takes corrective
action”

What Managers Do?What Managers Do?
 Roles Manager’s PlayRoles Manager’s Play
 Roles are specific actions or behaviors
expected of a manager.
 Mintzberg identified 10 roles grouped around
interpersonal relationships, the transfer of
information, and decision making.

 Interpersonal Roles
• Figurehead
• Leader
• Liaison
 Informational Roles
• Monitor
• Disseminator
• Spokesperson
 Decisional Roles
• Entrepreneur
• Disturbance handler
• Resource allocator
• Negotiator
Mintzberg’s Managerial Roles
Adapted from Mintzberg, Henry,
The Nature of Managerial Work,
1st Edition, © 1980, pp. 93–94..

What Managers Do (Mintzberg)What Managers Do (Mintzberg)
 ActionsActions (to play(to play
different roles)different roles)
 thoughtful thinkingthoughtful thinking
 practical doingpractical doing

How The Manager’s Job Is ChangingHow The Manager’s Job Is Changing
 The Increasing Importance of CustomersThe Increasing Importance of Customers
 Customers: the reason that organizations existCustomers: the reason that organizations exist
 Managing customer relationships is the responsibilityManaging customer relationships is the responsibility
of all managers and employees.of all managers and employees.
 Consistent high quality customer service is essentialConsistent high quality customer service is essential
for survival.for survival.
 InnovationInnovation
 Doing things differently, exploring new territory,Doing things differently, exploring new territory,
and taking risksand taking risks
 Managers should encourage employees to be awareManagers should encourage employees to be aware
of and act on opportunities for innovation.of and act on opportunities for innovation.

Copyright © 2010Copyright © 2010
Pearson Education, Inc.Pearson Education, Inc.
Publishing as PrenticePublishing as Prentice
HallHall
1–1–4141
Exhibit 1–8Exhibit 1–8
ChangesChanges
Affecting aAffecting a
Manager’s JobManager’s Job

Skills Managers NeedSkills Managers Need
 Skills Managers NeedSkills Managers Need
 Technical skillsTechnical skills
 Knowledge and proficiency in a specific fieldKnowledge and proficiency in a specific field
 Human skillsHuman skills
 The ability to work well with other peopleThe ability to work well with other people
 Conceptual skillsConceptual skills
 The ability to think and conceptualize aboutThe ability to think and conceptualize about
abstract and complex situations concerningabstract and complex situations concerning
the organizationthe organization

Management Level and SkillsManagement Level and Skills

1.Managing in a dynamic environment

Levels of ManagementLevels of Management
 First-line Managers:First-line Managers: have direct responsibility forhave direct responsibility for
producing goods or servicesproducing goods or services Foreman, supervisors, officeForeman, supervisors, office
supervisors, executives, etcsupervisors, executives, etc
 Middle Managers:Middle Managers:
 Coordinate employee activitiesCoordinate employee activities
 Determine which goods or services to provideDetermine which goods or services to provide
 Decide how to market goods or services to customersDecide how to market goods or services to customers
Assistant Manager, HOD, Plant Manager, ManagerAssistant Manager, HOD, Plant Manager, Manager
(Section Head)(Section Head)
 Top Managers:Top Managers: provide the overall direction to an
organization Chief Executive Officer, President, Vice
President

First-line Managers
 Directly responsible for production of goods or services
 Employees who report to first-line managers do the
organization’s work (workers/operators)
 Spend little time with top managers in large organizations
 Technical expertise is important
 Rely on planning and administration, self-management,
teamwork, and communication competencies to get work
done

Middle Managers
 Responsible for setting objectives that are consistent with
top management’s goals and translating them into specific
goals and plans for first-line managers to implement
 Responsible for coordinating activities of first-line
managers
 Establish target dates for products/services to be delivered
 Need to coordinate with others for resources
 Ability to develop others is important
 Rely on communication, teamwork, and planning and
administration competencies to achieve goals

Top Managers
 Responsible for providing the overall direction of an
organization
 Develop goals and strategies for entire organization
 Spend most of their time planning and leading
 Communicate with key stakeholders—stockholders,
unions, governmental agencies, etc., company
policies
 Use of multicultural and strategic action
competencies to lead firm is crucial

Six Core Managerial Competencies:
What It Takes to Be a Great Manager
 Communication Competency
 Planning and Administration Competency
 Teamwork Competency
 Strategic Action Competency
 Multicultural Competency
 Self-Management Competency

1. Communication Competency
 Ability to effectively transfer and exchange information
that leads to understanding between yourself and others
 Informal Communication
 Used to build social networks and good
interpersonal relations
 Formal Communication
 Used to announce major events/decisions/
activities and keep individuals up to date (
within & outside organization
 Negotiation
 Used to settle disputes, obtain resources,
and exercise influence (goal setting, etc)

 Deciding what tasks need to be done, determining
how they can be done, allocating resources to enable
them to be done, and then monitoring progress to
ensure that they are done
 Information gathering, analysis, and problem solving
from employees and customers
 Planning and organizing projects with agreed
upon completion dates
 Time management
 Budgeting and financial management

 Accomplishing tasks through small groups of
people who are collectively responsible and
whose job requires coordination
 Designing teams properly involves having
people participate in setting goals
 Creating a supportive team environment gets
people committed to the team’s goals thru
empowerment
 Managing team dynamics involves settling
conflicts, sharing team success, and assign tasks
that use team members’ strengths (To improve
quality, productivity & customer service).

Strategic Action Competency
 Understanding the overall mission and values of
the organization and ensuring that employees’
actions match with them – includes
Understanding industry, understanding Co,
taking strategic actions
 Understanding how departments or divisions of
the organization are interrelated
 Taking key strategic actions to position the firm
for success, especially in relation to concern of
stakeholders
 Leapfrogging competitors

Snapshot
“Sony must sell off businesses that don’t fit
its core strategy of fusing gadgets with films,
music, and game software. That means
selling off its businesses in its Sony Financial
Holdings, which are very profitable.”
Howard Stringer, CEO, Sony

 Understanding, appreciating and responding to
diverse political, cultural, ethinic, and economic
issues across and within nations
 Cultural knowledge and understanding of the
happenings in at least a few other cultures
 Cultural openness and sensitivity to how others
think, act, and feel
 Respectful of social etiquette variations
 Accepting of language differences
Multicultural(Global) CompetencyMulticultural(Global) Competency
 carrying out co’s managerial work drawing resources
from multiple countries & serving markets spanning
multiple cultures

Self-Management Competency
 Developing yourself and taking responsibility
 Integrity and ethical conduct
 Personal drive and resilience
 Balancing work and life issues
 Self-awareness and personal development
activities

Snapshot
“My strengths and weaknesses haven’t
changed a lot in 51 years. The important
thing is to recognize the things you don’t do
well and build a team that reflects what you
know the company needs.”
Anne Mulcahy, CEO, Xerox
Self-Management Competency

Why Managers Derail?Why Managers Derail?
 Has reached position of managerialHas reached position of managerial
responsibility but has little chance of futureresponsibility but has little chance of future
advancement, major reasons being;advancement, major reasons being;
1.1. Problems with IPR & inability to lead a teamProblems with IPR & inability to lead a team
( weak in team work competency)( weak in team work competency)
2.2. Inability to learn, develop & adapt ( weak inInability to learn, develop & adapt ( weak in
self development competency)self development competency)
3.3. Performance problems (weak planning &Performance problems (weak planning &
administration competency)administration competency)

Why Managers Derail?Why Managers Derail?
4. Having a narrow functional perspective4. Having a narrow functional perspective
( lacking strong strategic action & global( lacking strong strategic action & global
awareness competenciesawareness competencies

Thanks……….Thanks……….

1.Managing in a dynamic environment

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