Chapter 1 management and manager
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Middle managers work in the middle levels of organizations and are responsible for departments and business units. They implement strategies defined by top managers and focus on near-term goals rather than long-range planning. Examples include department heads and directors. Middle managers' roles have changed as organizations flatten hierarchies to speed information flow and decision-making.
Chapter 1 management and manager
- 1. MANAGEMENT AND MANAGER By Muhammad Kashif Din
- 2. MANAGEMENT Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.
- 3. TWO IMPORTANT IDEAS ABOUT UNDERSTANDING MANAGEMENT: 1. The four functions of planning, organizing, leading, and controlling, and 2. The attainment of organizational goals in an effective and efficient manner.
- 4. IMPORTANT TO NOTE • As a new manager, remember that management means getting things done through other people. You can’t do it all yourself. As a manager, your job is to create the environment and conditions that engage other people in goal accomplishment.
- 6. FOUR MANAGEMENT FUNCTIONS 1. Planning: Planning means defining goals for future organizational performance and deciding on the tasks and use of resources needed to attain them. 2. Organizing: Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. 3. Leading: Leading is the use of influence to motivate employees to achieve organizational goals. Leading means creating a shared culture and values, communicating goals to employees throughout the organization, and infusing employees with the desire to perform at a high level. 4. Controlling: Controlling means monitoring employees’ activities, determining whether the organization is on target toward its goals, and making corrections as necessary.
- 7. ORGANIZATIONAL PERFORMANCE • The other part of our definition of management is the attainment of organizational goals in an efficient and effective manner. Management is so important because organizations are so important. In an industrialized society where complex technologies dominate, organizations bring together knowledge, people, and raw materials to perform tasks no individual could do alone. Without organizations, how could technology be provided that enables us to share information around the world in an instant; electricity be produced from huge dams and nuclear power plants; and thousands of videogames, compact discs, and DVDs be made available for our entertainment? Organizations pervade our society.
- 8. DEFINITION OF AN ORGANIZATION • Our formal definition of an organization is a social entity that is goal directed and deliberately structured. • Social entity means being made up of two or more people. • Goal directed means designed to achieve some outcome, such as make a profit(Old Navy, Starbucks), win pay increases for members (AFL-CIO), meet spiritual needs (United Methodist Church), or provide social satisfaction (college sorority). • Deliberately structured means that tasks are divided and responsibility for their performance is assigned to organization members. • This definition applies to all organizations, including both profit and nonprofit. Small, offbeat, and nonprofit organizations are more numerous than large, visible corporations—and just as important to society.
- 9. MANAGER’S RESPONSIBILITY • Based on our definition of management, the manager’s responsibility is to coordinate resources in an effective and efficient manner to accomplish the organization’s goals.
- 10. ORGANIZATIONAL EFFECTIVENESS AND EFFICIENCY • Organizational effectiveness is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do. Organizational effectiveness means providing a product or service that customers value. • Organizational efficiency refers to the amount of resources used to achieve an organizational goal. It is based on how much raw materials, money, and people are necessary for producing a given volume of output. Efficiency can be calculated as the amount of resources used to produce a product or service. • The ultimate responsibility of managers is to achieve high performance, which is the attainment of organizational goals by using resources in an efficient and effective manner.
- 11. MANAGEMENT SKILLS • Conceptual Skills: Conceptual skill is the cognitive ability to see the organization as a whole and the relationships among its parts. Conceptual skill involves the manager’s thinking, information processing, and planning abilities. It involves knowing where one’s department fits into the total organization and how the organization fits into the industry, the community, and the broader business and social environment. It means the ability to think strategically—to take the broad, long-term view. • Human Skills: Human skill is the manager’s ability to work with and through other people and to work effectively as a group member. This skill is demonstrated in the way a manager relates to other people, including the ability to motivate, facilitate, coordinate, lead, communicate, and resolve conflicts. A manager with human skills allows subordinates to express themselves without fear of ridicule and encourages participation. • Technical Skills: Technical skill is the understanding of and proficiency in the performance of specific tasks. Technical skill includes mastery of the methods, techniques, and equipment involved in specific functions such as engineering, manufacturing, or finance. Technical skill also includes specialized knowledge, analytical ability, and the competent use of tools and techniques to solve problems in that specific discipline.
- 12. RELATIONSHIP OF CONCEPTUAL, HUMAN, AND TECHNICAL SKILLS TO MANAGEMENT
- 13. MANAGEMENT MISSTEPS (WHEN SKILLS FAIL) During turbulent times, managers really have to stay on their toes and use all their skills and competencies to benefit the organization and its stakeholders—employees, customers, investors, the community, and so forth. Above skills • when managers fail to effectively and ethically apply their skills to meet the demands of an uncertain, rapidly changing world. • Managers fail to listen to customers, misinterpret signals from the marketplace, or can’t build a cohesive team and execute a strategic plan. • Managers’ failure to comprehend and adapt to the rapid pace of change in the world around them. • A related problem is top managers who create a climate of fear in the organization, so that people are afraid to tell the truth. Thus, bad news gets hidden and important signals from the marketplace are missed. • Other critical management missteps include poor communication skills and failure to listen; treating people only as instruments to be used; suppressing dissenting viewpoints; and the inability to build a management team characterized by mutual trust and respect.
- 14. MANAGEMENT LEVELS • Managers use conceptual, human, and technical skills to perform the four management functions of planning, organizing, leading, and controlling in all organizations—large and small, manufacturing and service, profit and nonprofit, traditional and Internet- based. But not all managers’ jobs are the same. Managers are responsible for different departments, work at different levels in the hierarchy, and meet different requirements for achieving high performance. • Vertical Types of Managers • Top Level Managers • Middle Level Managers • First Line Managers • Horizontal Types of Managers • Functional Managers • General Managers (Operational Managers)
- 15. MANAGEMENT LEVEL IN ORGANIZATIONAL HIERARCHY
- 16. VERTICAL DIFFERENCES FOR MANAGER’S JOB An important determinant of the manager’s job is hierarchical level. • Top managers are at the top of the hierarchy and are responsible for the entire organization. They have such titles as president, chairperson, executive director, chief executive officer (CEO), and executive vice president. • Middle managers work at middle levels of the organization and are responsible for business units and major departments. Examples of middle managers are department head, division head, manager of quality control, and director of the research lab. Middle managers typically have two or more management levels beneath them. • First-line managers are directly responsible for the production of goods and services. They are the first or second level of management and have such titles as supervisor, line manager, section chief, and office manager.
- 17. TOP MANAGERS Top managers are at the top of the hierarchy and are responsible for the entire organization. They have such titles as president, chairperson, executive director, chief executive officer (CEO), and executive vice president. Top managers are responsible for setting organizational goals, defining strategies for achieving them, monitoring and interpreting the external environment, and making decisions that affect the entire organization. They look to the long-term future and concern themselves with general environmental trends and the organization’s overall success. Among the most important responsibilities for top managers are communicating a shared vision for the organization, shaping corporate culture, and nurturing an entrepreneurial spirit that can help the company innovate and keep pace with rapid change. Today more than ever before, top managersmust engage the unique knowledge, skills, and capabilities of each employee.
- 18. MIDDLE MANAGERS • Middle managers work at middle levels of the organization and are responsible for business units and major departments. Examples of middle managers are department head, division head, manager of quality control, and director of the research lab. Middle managers typically have two or more management levels beneath them. They are responsible for implementing the overall strategies and policies defined by top managers. Middle managers generally are concerned with the near future rather than with long-range planning. The middle manager’s job has changed dramatically over the past two decades. Many organizations improved efficiency by laying off middle managers and slashing middle management levels. Traditional pyramidal organization charts were flattened to allow information to flow quickly from top to bottom and decisions to be made with greater speed. • Even as middle management levels have been reduced, however, the middle manager’s job in many organizations has become much more vital. Rather than managing the flow of information up and down the hierarchy, middle managers create horizontal networks that can help the organization act quickly. Research shows, for example, that middle managers play a critical role in driving innovation and enabling organizations to respond to rapid shifts in the environment.32 As Ralph Stayer, CEO of Johnsonville Sausage said, “Leaders can design wonderful strategies, but the success of the organization resides in the execution of those strategies. The people in the middle are the ones who make it work.”33 People who succeed as middle managers in today’s world are those who are constructively critical of the status quo, have a high degree of personal power based on good relationships throughout the organization, are versatile and adaptable, and possess solid interpersonal skills, including the ability to empathize with others and help others grow and excel.
- 19. PROJECT MANAGERS Middle managers’ status has also escalated because of the growing use of teams and projects in today’s organizations. Strong project managers are in hot demand. A project manager is responsible for a temporary work project that involves the participation of people from various functions and levels of the organization, and perhaps from outside the company as well.
- 20. INTERIM MANAGERS Another trend is using interim managers, which means hiring temporary management professionals who work on a specific project or provide expertise in a specific area. This approach enables a company to benefit from specialist skills without making a long-term commitment, and it provides flexibility for managers who like the challenge, variety, and learning that comes from working in a wide range of organizations. Even though interim managers are used at all levels, they can be particularly valuable for middle management activities.
- 21. FIRST LINE MANAGERS First-line managers are directly responsible for the production of goods and services. They are the first or second level of management and have such titles as supervisor, line manager, section chief, and office manager. They are responsible for groups of non- management employees. Their primary concern is the application of rules and procedures to achieve efficient production, provide technical assistance, and motivate subordinates. The time horizon at this level is short, with the emphasis on accomplishing day-to-day goals. For example, Alistair Boot manages the menswear department for a John Lewis department store in Cheadle, England.38 Boot’s duties include monitoring and supervising shop floor employees to make sure sales procedures, safety rules, and customer service policies are followed. This type of managerial job might also involve motivating and guiding young, often inexperienced workers, providing assistance as needed, and ensuring adherence to company policies.
- 22. HORIZONTAL DIFFERENCES IN MANAGERS • Functional Managers: Functional managers are responsible for departments that perform a single functional task and have employees with similar training and skills. Functional departments include advertising, sales, finance, human resources, manufacturing, and accounting. Line managers are responsible for the manufacturing and marketing departments that make or sell the product or service. Staff managers are in charge of departments such as finance and human resources that support line departments. • General Mangers: General managers are responsible for several departments that perform different functions. A general manager is responsible for a self-contained division, such as a Macy’s department store or a General Motors assembly plant, and for all the functional departments within it. Project managers also have general management responsibility, because they coordinate people across several departments to accomplish a specific project.
- 23. MANAGER’ ROLE AND REALITY
- 24. MANAGER’S ROLES • Mintzberg’s observations and subsequent research indicate that diverse manager activities can be organized into 10 roles . • A role is a set of expectations for a manager’s behavior. • These roles are divided into 3 conceptual categories: 1. Informational - managing by information 2. Interpersonal - managing through people 3. decisional - managing through action • Each role represents activities that managers undertake to ultimately accomplish the functions of planning, organizing, leading, and controlling. Although it is necessary to separate the components of the manager’s job to understand the different roles and activities of a manager, it is important to remember that the real job of management cannot be practiced as a set of independent parts; all the roles interact in the real world of management. As Mintzberg says, • “The manager who only communicates or only conceives never gets anything done, while the manager who only ‘does’ ends up doing it all alone.”
- 25. INFORMATIONAL ROLES • Informational roles describe the activities used to maintain and develop an information network. General managers spend about 75 percent of their time talking to other people. 1. Monitor - Seek and receive information, scan periodicals and reports, maintain personal contacts. 2. Disseminator - Forward information to other organization members; send memos and reports, make phone calls. 3. Spokesperson - Transmit information to outsiders through speeches, reports, memos. • The monitor role involves seeking current information from many sources. The manager acquires information from others and scans written materials to stay well informed. The disseminator and spokesperson roles are just the opposite: The manager transmits current information to others, both inside and outside the organization, who can use it.
- 26. INTERPERSONAL ROLES • Interpersonal roles pertain to relationships with others and are related to the human skills described earlier. 1. Figurehead - Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents. 2. Leader - Direct and motivate subordinates; train, counsel, and communicate with subordinates. 3. Liaison - Maintain information links both inside and outside organization; use e-mail, phone calls, meetings. • The figurehead role involves handling ceremonial and symbolic activities for the department or organization. The manager represents the organization in his or her formal managerial capacity as the head of the unit. The presentation of employee awards by a division manager at Taco Bell is an example of the figurehead role. The leader role encompasses relationships with subordinates, including motivation, communication, and influence. The liaison role pertains to the development of information sources both inside and outside the organization.
- 27. DECISIONAL ROLES • Decisional roles pertain to those events about which the manager must make a choice and take action. These roles often require conceptual as well as human skills. 1. Entrepreneur - Initiate improvement projects; identify new ideas, delegate idea responsibility to others. 2. Disturbance handler - Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises. 3. Resource allocator - Decide who gets resources; schedule, budget, set priorities. 4. Negotiator - Represent department during negotiation of union contracts, sales, purchases, budgets; represent departmental interests. • The entrepreneur role involves the initiation of change. Managers are constantly thinking about the future and how to get there. Managers become aware of problems and search for innovations that will correct them. The disturbance handler role involves resolving conflicts among subordinates or between the manager’s department and other departments. The resource allocator role pertains to decisions about how to allocate people, time, equipment, budget, and other resources to attain desired outcomes. The manager must decide which projects receive budget allocations, which of several customer complaints receive priority, and even how to spend his or her own time. The negotiator role involves formal negotiations and bargaining to attain outcomes for the manager’s unit of responsibility. The manager meets and formally negotiates with others—a supplier about a late delivery, the controller about the need for additional budget resources, or the union about a worker grievance.
- 28. ROLES PLAYED FACTORS: • The relative emphasis a manager puts on these ten roles depends on a number of factors, such as the • manager’s position in the hierarchy, • natural skills and abilities, • type of organization, or departmental goals to be achieved • changing environmental conditions • A marketing manager may focus on interpersonal roles because of the importance of personal contacts in the marketing process, whereas a financial manager may be more likely to emphasize decisional roles such as resource allocator and negotiator. Despite these differences, all managers carry out informational, interpersonal, and decisional roles to meet the needs of the organization. Managers stay alert to needs both within and outside the organization to determine what roles are most critical at various times.
- 29. MANAGING IN SMALL BUSINESSES • Challenges for Small Business: • Globalization, advances in technology, shifting government regulations, and increasing customer demands. • Small companies sometimes have difficulty developing the managerial dexterity needed to survive in a turbulent environment. • Challenges need to be met with Solid Management Practices. • Small Business major emphasize following roles for a manager: • Spokesperson • Entrepreneur • Small Business gives little importance to following roles: • Leader • Information Processing
- 30. MANAGER’S ROLE IN MANAGING NON- PROFIT BUSINESS • Nonprofit organizations also represent a major application of management talent. The functions of planning, organizing, leading, and controlling apply to nonprofits just as they do to business organizations, and managers in nonprofit organizations use similar skills and perform similar activities. • The primary difference is that managers in businesses direct their activities toward earning money for the company, while managers in nonprofits direct their efforts toward generating some kind of social impact. The unique characteristics and needs of nonprofit organizations created by this distinction present unique challenges for managers. • In businesses, managers focus on improving the organization’s products and services to increase sales revenues. In nonprofits, however, services are typically provided to nonpaying clients, and a major problem for many organizations is securing a steady stream of funds to continue operating.
- 31. MANAGER’S ROLE IN MANAGING NON- PROFIT ORGANIZATIONS (2) • Nonprofit managers, committed to serving clients with limited resources, must focus on keeping organizational costs as low as possible.61 Donors generally want their money to go directly to helping clients rather than for overhead costs. If nonprofit managers can’t demonstrate a highly efficient use of resources, they might have a hard time securing additional donations or government appropriations. • Because nonprofit organizations do not have a conventional bottom line, managers often struggle with the question of what constitutes results and effectiveness. Whereas it is easy to measure dollars and cents, the metrics of success in nonprofits are much more ambiguous. Managers have to measure intangibles such as “improve public health,” “make a difference in the lives of the disenfranchised,” or “increase appreciation for the arts.” This intangible nature also makes it more difficult to gauge the performance of employees and managers. • An added complication is that managers often depend on volunteers and donors, who cannot be supervised and controlled in the same way a business manager deals with employees.
- 32. MINTZBERG’S MANGER ROLES IN NON- PROFIT BUSINESS • We might expect managers in nonprofit organizations to place more emphasis on the roles of • Spokesperson (to “sell” the organization to donors and the public) • Leader (to build a mission driven community of employees and volunteers), and • Resource allocator (to distribute government resources or grant funds that are often assigned top-down)
- 33. MANAGER ROLES IN ALL ORGANIZATIONS • Managers in all organizations—large corporations, small businesses, and nonprofit organizations—carefully : • Integrate and adjust the management functions and roles to meet challenges within their own circumstances and • Keep their organizations healthy. • One way in which many organizations are meeting new challenges is through increased use of the Internet. • Some government agencies are using the Web to cut bureaucracy, improve efficiency, and save money.
- 34. MANAGEMENT AND THE NEW WORKPLACE SUMMARIZED
- 35. MANAGEMENT AND NEW WORK PLACE • Over the past decade or so, the central theme being discussed in the field of management has been the pervasiveness of dramatic change. Rapid environmental shifts are causing fundamental transformations that have a dramatic impact on the manager’s job. • The primary characteristic of the new workplace is that it is centered around bits rather than atoms—information and ideas rather than machines and physical assets. • Low-cost computing power means that ideas, documents, movies, music, and all sorts of other data can be zapped around the world at the speed of light. The digitization of business has radically altered: • The nature of work, • Employees, and • The workplace itself.
- 36. NATURE OF WORK IN NEW ENVIRONMENT • The old workplace is characterized by routine, specialized tasks, and standardized control procedures. Employees typically perform their jobs in one specific company facility, such as an automobile factory located in Detroit or an insurance agency located in Des Moines. The organization is coordinated and controlled through the vertical hierarchy, with decision making authority residing with upper-level managers. • In the new workplace, by contrast, work is free-flowing and flexible. The shift is most obvious in e-commerce and high-tech organizations, which have to respond to changing markets and competition at a second’s notice. • The workplace is organized around networks rather than rigid hierarchies, and work is often virtual, with managers having to supervise and coordinate people who never actually “come to work”.
- 37. EMPLOYEES IN NEW ENVIRONMENT • Empowered employees are expected to seize opportunities and solve problems as they emerge. Structures are flatter, and lower-level employees make decisions based on widespread information and guided by the organization’s mission and values. • Knowledge is widely shared rather than hoarded by managers, and people throughout the company keep in touch with a broader range of colleagues via advanced technology. • Thanks to modern information and communications technology, employees can perform their jobs from home or another remote location, at any time of the day or night.
- 38. THE NEW WORK PLACE CHARACTERISTICS • Flexible hours, telecommuting, and virtual teams are increasingly popular ways of working that require new skills from managers. Using virtual teams allows organizations to use the best people for a particular job, no matter where they are located, thus enabling a fast, innovative response to competitive pressures. • Teams may also include outside contractors, suppliers, customers, competitors, and interim managers who are not affiliated with a specific organization but work on a project-by-project basis. • The valued worker is one who learns quickly, shares knowledge, and is comfortable with risk, change, and ambiguity.
- 39. NEW FORCES ON ORGANIZATIONS • Most striking change that is affecting management and organization is technology. • Computing power is doubling every 18 months. • Internet has changed the world the business is done by: • Digital networking instead of old business organization • Outsourcing, joint ventures instead of keeping core functions within business organization • Companies are becoming interconnected and managers needs to learn • how to coordinate effectively • how to influence people who can’t be managed and coordinated in traditional way • Globalization challenges: • New Threats – New Opportunities • Raise New Risks – Accelerate Complexity and competitiveness • Previously Outsourcing was done to manufacturing to cut costs – High level knowledge work is also outsourced • Diversity of Work force is also increasing that is challenging traditional organization
- 40. THE INNOVATIVE RESPONSE • New Transformations – • Organizations are learning to Value Change, innovation and speed over stability and efficiency. • Old Fundamental Paradigm was STABILITY against new Paradigm recognizes change and chaos as the nature of things. Turbulence, Unpredictability, Small and large crisis occurring on more frequent basis. • Solution is Innovation – • Renew emphasis on innovation in products and services • Keep pace with new technologies and innovate management practices
- 41. NEW MANAGEMENT COMPETENCIES • Managers must rethink their approach to employees' : • Organizing • Directing • Motivation • Today’s Manager must give up old thinking of Command and Control and give emphasis on: • Focus on coaching and providing guidance to employees • Creating Organization that are: Fast, Flexible, Innovative, Relationship Oriented • Success in new workplace depends on Strength and Quality of Collaborative Relationship • Rather than Profit focus – Staying Connected to Employees and Customers • Collaborative Relationship across Functions and Hierarchical Levels • Team Building rather than controlling Employees • Building a learning Organization: • By Creating an Environment that: • Values experimentation and risk taking in applying Current technology • Tolerates Mistakes and Failures • Rewards nontraditional thinking and sharing of knowledge • Everyone Participates in : • Identifying and solving problems to continuously experiment, improve and increase its capability • The Role of Manager is not to make decisions but to create learning capability where everyone is free to experiment and learn what works best.
- 42. TURBULENT TIMES: MANAGING CRISES AND UNEXPECTED EVENTS • OLD TIMES - STABILITY OF ENVIRONMENT – OLD MANAGEMENT PRACTICES • MODERN TIMES – TURBULANCE, DISORDER OF ENVIRONMENT – NEW MANAGEMENT • Modern Times Events: Enron, 9/11, Bursting of dot Com Bubble, Hurricane Katrina, Etc. • Crisis Management is a critical skill of Modern Management for Every Manager. • Recent Thinking on Crisis Management has demanded 5 new Leadership Skills: 1. Stay Calm 2. Be Visible 3. Put People before Business 4. Tell the Truth 5. Know when to get back to Business
- 43. CRISIS MANAGEMENT LEADERSHIP SKILLS 1. Stay Calm • In Times of Crisis, a Leader’s emotions are contagious, so Leaders has to stay calm, focused and optimistic about the future. Absorb other People’s fears and uncertainties. 2. Be Visible • When People’s world become ambiguous and frightening, they need to feel that someone is in control. Crisis is a time when leadership cannot be delegated. 3. Put People Before Business • The Companies that weather the crisis best are the ones that put People and human feelings their top priority. 4. Tell The Truth • Managers should get as much information from as many diverse sources as they can, do their best to determine the facts, and then be open and straight about what is going on. 5. Know When To Get Back To Business • Managers should deal with Physical and Emotional Needs of People but they also need to get back to business as soon as possible. Company has to keep going and this is human nature to move forward. The Rejuvenation of Business is a sign of hope and an inspiration to employees.