Managers and Managing

Topic 1. Managers and Managing.

 

1. Management is a process of using organizational resources to achieve organizational goals effectively and efficiently through planning, organizing, leading, and controlling.

A manager is a person responsible for supervising the use of an organization’s resources to meet its goals.

Efficiency is a measure of how well or productively resources are used to achieve a goal.

Effectiveness is a measure of the appropriateness of the goals an organization is pursuing and of the degree to which the organization achieves those goals.

2. Planning is a process that managers use to identify and select appropriate goals and course of action.

Organizing is a process that managers use to establish a structure of working relationships that allow organizational members to interact and cooperate to achieve organizational goals.

Motivation is a psychological force that determines the direction of person’s behavior in an organization; a person’s level of effort, and a person’s level of persistence.

Controlling – an evaluation of how well an organization is achieving its goals and taking action to maintain or improve performance.

3. First-line manager is a manager who responsible for the daily supervision of nonmanagerial employees.

Middle manager is a manager who supervises first-line managers and responsible for finding the best way to use resources to achieve organizational goals.

Top manager is a manager who establishes organizational goals, decides how departments should interact, and monitors the performance of middle managers.

Technical skills are job-specific knowledge and techniques that are required to perform an organizational role.

Human skills are the ability to understand, alter, lead, and control the behavior of other individuals and groups.

Conceptual skills are the ability to analyze and diagnose a situation and to distinguish between cause and effect.

 

 

Topic 2. The Evolution of Management Theory

 

1. The evolution of modern management began in the closing decades of the 19 century, after the industrial revolution had swept through Europe and America. 

 

 

 

 

 

 

 

 

 

 

 

Scientific management theory is the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency.

F.W. Taylor (1856-1915) is the “father” of the scientific management.

Taylor’s principles:

• Study the way workers perform their tasks, gather all the informal job knowledge that workers possess, and experiment with ways of improving how tasks are performed
• Codify the new methods of performing tasks into written rules and standard operating procedures
• Carefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures
• Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level

The Gilbreths.

Their aims were:

1. break up and analyze every individual action necessary to perform a particular task into each of its component actions
2. find better ways to perform each component action
3. reorganize each of the component actions so that the action as a whole could be performed more efficiently – at less cost of time and effort

2. Administrative management theory is the study of how to create an organizational structure that leads to high efficiency and effectiveness.

Henry Fayol (1841-1925)

Fayol’s 14 principles of management:

1. division of labor
2. authority and responsibility
3. unity of command
4. line of authority
5. centralization
6. unity of direction
7. equity
8. order
9. initiative
10. discipline
11. remuneration of personnel
12. stability of tenure of personnel
13. subordination of individual interests to the common interest
14. esprit de corps

Max Weber (1864-1920) – theory of bureaucracy (a formal system of organization and administration designed to ensure efficiency and effectiveness).

Weber’s principles:

• a manager’s formal authority derived from the position he holds in the organization
• people should occupy positions because of their performance, not because of their social standing or personal contacts
• the extent of each position’s formal authority and task responsibilities, and its relationship to other positions in an organization, should be clearly specified
• authority can be exercised effectively in an organization when positions are arranged hierarchically, so employees know whom to report to and who reports to them
• managers must create a well-defined system of rules, standard operating procedures, and norms so that they can effectively control behavior within an organization

3. Behavioral management theory is the study of how managers should behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals.

Mary Parker Follett (1868-1933)

 

 

 

Elton Mayo

 

4.

Management science theory is an approach to management that uses rigorous quantitative techniques to help managers make maximum use of organizational resources.

Systems theory

Open system is a system that takes in resources from its external environment and converts them into goods and services that are then sent back to that environment foe purchase by customers

 

 

Closed system is a system that is self-contained and thus not affected by changes occurred in its external environment.

Synergy is a performance gains that result when individuals and departments coordinate their actions.

Contingency theory is the idea that the organizational structures and control systems managers choose depend on – are contingent on – characteristics of the external environment in which the organization operates.

         

 

Topic 3. Managing the Organizational Environment

 

1. Organizational environment is the set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources.

 

 

 

 

 

 

 

 

 

 

 

 

 

Task  environment is the set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect organization’s ability to obtain inputs and dispose of its outputs because they influence managers on a daily basis.

General environment is the wide-ranging economic, technological, sociocultural, demographic, political and legal, and global forces that affect an organization and its task environment.

Suppliers – individuals and organizations that provide an organization with the input resources that it needs to produce goods and services.

Distributors – organizations that help other organizations sell their goods or services to customers.

Customers – individuals and groups that buy the goods or services that an organization produces.

Competitors – organizations that produce goods or services that are similar to a particular organization’s goods or services.

Economic forces - interest rates, inflation, unemployment, economic growth, and other factors that affect the general health and well-being of a nation or the regional economy of an organization.

Technological forces – outcomes of changes in the technology that managers use to design, produce or distribute goods or services.

Sociocultural forces – pressures emanating from the social structure of a country or society or from the national culture.

Demographic forces – outcomes of changes in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class.

Political and legal forces – outcomes of changes in laws and regulations, such as the deregulation of industries, the privatization of organizations, and increased emphasis on environment protection.

Global forces - outcomes of changes in international relationships; changes in nations’ economic, political, and legal systems and other.

2. Social responsibility is a manager’s duty or obligation to make decisions that promote the welfare and well-being of stakeholders and society as a whole.

Form of socially responsible behavior:

• Provide severance payments to help laid-off workers make ends meet until they can find other jobs
• Provide workers with opportunities to enhance their skills and acquire additional education so they can remain productive and do not become obsolete because of changes in technology
• Allow employees to take time off when they need to and provide health care and pension benefits for employees
• Contribute to charities or support various civic-minded activities in the cities and towns in which they are located
• Decide to keep open a factory whose closure would devastate the local community
• Decide to keep a company’s operations in a country to protect the jobs of national workers rather than move abroad
• Decide to spend money to improve a new factory so that it will not pollute the environment

3. Ethics – moral principles or beliefs about what is right or wrong.

Societal Ethics – standards that govern how members of a society are to deal with each other on issues such as fairness, justice, poverty, and the rights of the individuals.

Professional Ethics - standards that govern how members of a profession are to make decisions when the way they should behave is not clear-cut.

Individual Ethics – personal standards that govern how individuals are to interact with other people.

Organizational culture – the set of values, norms, standards for behavior, and shared expectations that influence the ways in which individuals, groups and teams interact with each other and cooperate to achieve organizational goals.

 

 

Topic 4. Communication.

1. Communication is the sharing of information between two or more individuals or groups to reach a common understanding.

Three types of Communication:

• Communications between the organization and its environment
• Communications across departments and groups of organization (vertical and horizontal communications)
• Informal Communications (grapevine)

2.

 

 

 

 

 

The Communication Process consists of two phases. In the transmission phase, information is shared between two or more individuals or groups. In the feedback phase, a common understanding is assured.

 

Four Elements of the Communication Process:

• Sender is the person or group whishing to share information
• Message is the information that a sender wants to share
• Medium is the pathway (a phone call, a letter, a memo, or face-to-face communication) through which an encoded messages are transmitted to a receiver
• Receiver is the person or group for which a message is intended

Three stages of the Communication Process:

• Encoding – translating a message into understandable symbols or language. The encoding message into words, written or spoken, is verbal communications. We also encode messages without using written or spoken language. Nonverbal communications shares information by means of facial expressions (smiling, raising an eyebrow, frowning), body language (posture, gestures, nods and shrugs), and even style of dress (casual, formal, conservative, trendy).
• Transmission
• Decoding – interpreting and trying to make sense of a message

3.

Communication networks is the pathways along which information flows in groups and teams and throughout the organization 

Wheel network:

 

 

 

 

 

Chain network:

 

 

 

 

Circle network:

 

 

 

 

 

All-channel network:

 

 

 

 

 

4.

Communication Skills for Managers as Senders:

• Send messages that are clear and complete
• Encode messages in symbols that the receiver understands
• Select a medium that is appropriate for the message
• Select a medium that the receiver monitors
• Avoid filtering and information distortion
• Ensure that a feedback mechanism is built into messages
• Provide accurate information to ensure that misleading rumors are not spread

Communication Skills for Managers as receivers:

• Pay attention
• Be a good listener
• Be empathetic

 

 

Topic 5. The Manager as a Decision Maker

 

1. Decision making is the process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals and courses of action.

Programmed decision making is a routine, virtually automatic decision making that follows established rules or guidelines.

Nonprogrammed decision making is a nonroutine decision making that occurs in response to unusual, unpredictable opportunities and threats.

Classical decision making model is a prescriptive approach to decision making based on the assumption that the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action.

Administrative model is an approach to decision making that explains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions.

Risk is the degree of probability that the possible outcomes of a particular course of action will occur

Uncertainty – unpredictability.

2.

Steps in the Decision Making Process:

• Recognize the need for a decision
• Generate alternatives
• Assess alternatives
• Choose among alternatives
• Implement the chosen alternatives
• Learn from feedback

3.

Organizational learning is the process through which managers seek to improve employees’ desire and ability to understand and manage the organization and its task environment.

Creativity is a decision maker’s ability to discover original and novel ideas that lead to feasible alternative courses of action.

Brainstorming is a group problem solving technique in which managers meet face-to-face to generate and debate a wide variety of alternatives from which to make a decision.

Nominal group technique a decision making technique in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.

Delphi technique is a decision making technique in which group members do not meet face-to-face but respond in writing to questions posed by the group leader.

 

 

Topic 6. The Manager as a Planner and Strategist

 

1. Planning is identifying and selecting appropriate goals and courses of action.

Strategy is a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.

Steps in Planning:

• Determining the organization’s mission and goals
• Formulating strategy
• Implementing strategy

Levels of Planning:

• Corporate-level plan
• Business-level plan
• Functional-level plan

Corporate-level strategy is a plan that indicates in which industries and national markets an organization intends to compete.

Business-level strategy is a plan that indicates how a division intends to compete against its rivals in an industry.

Functional-level strategy is a plan that indicates how a function intends to achieve its goals.

Scenario planning is the generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions; also called contingency planning.

2.

Mission statement is a broad declaration of an organization’s purpose that identifies the organization’s products and customers and distinguishes the organization from its competitors.

SWOT analysis is a planning exercise in which managers identify organizational strengths (S), weaknesses (W), environmental opportunities (O), and threats (T).

3.

Corporate-level strategies:

• Concentration

 

• Diversification – expanding operations into a new business or industry and producing new goods or services
• International expansion

 

• Vertical integration

 

 

4.

Business-level strategies:

• Low-cost strategy - driving the organizations costs down below the costs of its rivals

 

• Differentiation strategy – distinguishing an organization’s products from the products of competitors in dimensions such as product design, quality, or after-sales services
• “stuck in the middle”

 

 

 

 

 

 

 

 

 

 

Topic 7. Managing Organizational Structure.

 

1. Organizational structure is a formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals.

Organizational design is the process by which managers make specific organizing choices that result in a particular kind of organizational structure.

Functional structure is an organizational structure composed of all the departments that an organization requires to produce its goods or services.

 

 

 

Divisional structure is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer.

Product structure is an organizational structure in which each product line or business is handled by a self-contained division.

 

 

 

Market structure is an organizational structure in which each kind of customer is served by a self-contained division; also called customer structure.

 

 

 

 

 

 

 

 

Geographic structure is an organizational structure in which each region of a country or area of the world is served by a self-contained division.

 

 

 

 

 

 

Matrix structure is an organizational structure that simultaneously groups people and resources by function and by product.

 

 

 

Product team structure is an organizational structure in which employees are permanently assigned to a cross-functional team and report only to the product team manager or to one of his or her direct subordinates.

 

 

Hybrid structure is the structure of a large organization that has many divisions and simultaneously uses many different organizational structures.