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Chapter 1 - Managing and Manager in a Dynamic Environment


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This topic will obtain a broad understanding of management (including traditional and emerging views), and the areas of knowledge and skills required to carry out the major functions of management.

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Chapter 1 - Managing and Manager in a Dynamic Environment

  1. 1. AMA Computer Learning Center Guadalupe Campus Management Principle PART1 INTRODUCTION TO MANAGEMENT Chapter 1 Managing and Managers Basically the term "management" refers to the activities (and often the group of people) involved in the four general functions: planning, organizing, leading and coordinating of resources. Note that the four functions recur throughout the organization and are highly integrated. Emerging trends in management include assertions that leading is different than managing, and that the nature of how the four functions are carried out must change to accommodate a "new paradigm" in management. This topic will obtain a broad understanding of management (including traditional and emerging views), and the areas of knowledge and skills required to carry out the major functions of management. Objectives: After completing this chapter student should be able to: 1. Explain the concept of management and why managers are needed. 2. Describe the key attributes of managerial responsibility. 3. Define the difference between “efficiency” and “effectiveness” as aspects of managerial performance. 4. Identify what is meant by top, middle, and first-line managers, and functional and general managers, and explain the difference of work activities. 5. List and explain the four basic functions of managers according to the common model of the management process. 6. Describe Mintzberg’s additional roles and responsibilities of managers. 7. Describe what management education can and cannot do for you and explain why you must be involved in continually learning to become an effective manager. DEFINING MANAGEMENT Management is the process of planning, organizing, leading, and controlling the work of organization members and of using all available resources to reach stated organizational goal. The Four typical managerial activities: 1. Planning – implies that managers think through their goals and actions in advance. Their actions are usually based on some methods, plans, or logic, rather than hunch. 2. Organizing – means the managers coordinate the human and material resources of the organization. The effectiveness of an organization depends on its ability to marshal its resources to attain its goal. 3. Leading – describes how managers direct and influence subordinates, getting others to perform essential tasks. By establishing the proper atmosphere, they help their subordinate to do their best. 4. Controlling – means that managers attempt to assure that the organization is moving toward its goals. Of some part of their organization is on the working track—if it is not working toward stated goals or is not doing effectively—managers try to find out why and set things right. WHY ORGANIZATIONS AND EFFECTIVE MANAGERS ARE NEEDED Organizations Serves Society Organization is important because they are social institutions and must be managed within the confines of certain culturally accepted values and needs. Many organizations—and the other people who manage them—have been responsible for 1|Page/Management/Janine L. Moneda-2010
  2. 2. AMA Computer Learning Center Guadalupe Campus Management Principle achievements ranging from the conquest of outer space to the invention of computers because managers have been responsive to the social needs served by these achievement. Organizations Accomplish Objectives By coordinating the efforts of different individuals, they enable us to reach goals that would otherwise be much more difficult or even impossible to achieve. Organization Preserve Knowledge Organizations (such as universities, museums, and corporation) are essential because they store and protect of the important knowledge that our civilizations has gathered and recorded. In addition, organizations themselves, add to our knowledge by developing new and more efficient ways to doing things. Organization Provides Careers Organizations are also important because they provide their employees with a source of livelihood, depending on the style of effectiveness of their managers, perhaps even personal satisfaction and self-fulfillment. Many of us tend to associate career opportunities with business operations, but in fact a variety of other organizations such as churches, government agencies, schools and hospitals, also offer managerial guidance toward rewarding career. THE KEY ATTRIBUTES OF MANAGERIAL RESPONSIBILITY The Key Attributes of a Manager 1. Managers work with and through other people – the term people includes not only subordinates and supervisors but also managers in the organization. People also includes individuals outside the organization—customers, clients, suppliers, union representative and many more. Thus, managers act as channels of communication within the organization. 2. Managers are responsible and accountable – are in-charge of seeing that specific tasks are done successfully. They are usually evaluated on how well they arrange for these tasks to be accomplished. Managers are responsible also for the actions of their subordinates. Managers, however, are held responsible, or accountable, not only for their own work but also for the work of others. 3. Managers balance competing goals and sets priorities – every manager faces a number or organizational goals, problems, and needs—all of which compete for the manager’s time and resources (both human and materials). 4. Managers must think analytically and conceptually – to be an analytical thinker, a manager must be able to break a problem down into its components, analyze those components then come up with feasible solution. But most importantly, a manager must be a conceptual thinker, must be able to view the entire task in the abstract and relate it into other tasks. 5. Managers as mediator – disputes within a unit or organization can lower morale and productivity, and become unpleasant and disruptive that the competent employees decide to leave the organization. Such occurrences, hinders work toward the goals of the unit or organization: therefore, managers must at times take on the role of mediator and resolve disputes as they occur. Settling quarrels requires skill and tact: managers who are careless in handling of disputes may be dismayed to find that they have only made matter worst. 6. Managers are politicians – managers must build relationships and use persuasion and compromise to promote organizational goals, just as politicians do to move their program forward. Managers draw upon this relationship to win support for proposals or decisions or to gain cooperation in carrying out various activities. 2|Page/Management/Janine L. Moneda-2010
  3. 3. AMA Computer Learning Center Guadalupe Campus Management Principle 7. Managers are diplomats – they may serve as official representative of their work units at organizational meetings. They may represent the entire organization as well as particular unit in dealing with clients, customers, contractors, government officials, and personnel of other organizations. 8. Managers are symbols – they personify, both organizational members and for outside observers, and organization’s successes and failures. 9. Managers make a difficult decision – no organization runs smoothly all the time. There is almost limit to the number and types of problems that may occur: financial difficulties, problems with employees, difference of opinion occurring organization policy, to name a few. MANAGERIAL AND ORGANIZATIONAL PERFORMANCE Success of an organization is by achieving its objectives, satisfy social responsibilities or both, depends on how organizations’ managers doing their jobs. The performance of its organizations is a key factor in the performance of a society or nation. According to Peter Drucker, manager’s performance can be measured in terms of two concepts: efficiency and effectiveness. Managerial Performance 1. Efficiency – is the ability to get things done correctly. Managers who are able to minimize the cost of the resources they use to attain their goals are acting efficiently. 2. Effectiveness – is the ability to choose appropriate objectives: An effective manager is one who selects the right things to get done. No amount of efficiency can compensate for lack of efficiency. A manager’s responsibilities require performance that is both efficient and effective, but although efficiency is important, effectiveness is critical. The pertinent question is not how to do things right, but how to find the right things to do, and to concentrate resources and efforts to them. TYPE OF MANAGERS Managers can be classified in two ways: by their level in the organization—so called first-line, middle and top managers—and by the rang of the organizational activities for which they are responsible—and by the range of the organizational activities for which they are responsible—so called functional and general managers. Management Levels 1. First-Line Managers – the lowest level in an organization at which individuals are responsible for the work of others is called first-line or first-level management. First-line managers direct operating employees only; they do not supervise other managers. 2. Middle Managers – the term middle manage can include to more than on level organization. Middle managers direct the activities of lower-level managers and sometimes also those of operating employees. 3. Top Managers – composed of a comparatively small group of executives, top management is responsible of the overall management of the organization. It establishes operating policies and guides the organization’s interactions with its environment. Functional and General Managers The other major classification of managers depends on the scope of the activities they manage. 3|Page/Management/Janine L. Moneda-2010
  4. 4. AMA Computer Learning Center Guadalupe Campus Management Principle 1. Functional Managers – is responsible for only one organizational activity, such as production, marketing, sales, or finance. The people and activities headed by a functional manager are engaged in a common set of objectives. 2. General Managers – oversees a complex unit, such as company, subsidiary, or an independent operating division. He or she is responsible for all the activities of that unit, such as production, marketing, sales, and finance. THE MANAGEMENT PROCESS It is easier to understand something as complex as management when it is described as a series of separate parts, or functions, often classified as planning, organizing, leading/directing and controlling/monitoring. Basic Functions of Management 1. Planning – deciding or selecting what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.), and generating plans for action. 2. Organizing – once managers have established objectives and developed plans or programs to reach them, they must design and staff an organization able to carry out those programs successfully. 3. Leading – after plans have been made, the structure of the organization has been determined, and the staff has been recruited and trained, the next step is to arrange the movement toward the organization’s defined objectives. 4. Controlling – finally, the manager must ensure that the actions of the organization’s members do in fact move the organization toward its stated goals. This is the controlling function of management, and it involves four main elements: a. Establishing standards of performance b. Measuring current performance and comparing it against the established standards. c. Detecting deviations from standard goals in order to make corrections before a sequence of activities is completed. d. Taking action to correct performance that does not meet those standards. MANAGEMENT LEVEL AND SKILLS The three basic kinds of skills identified by Robert L. Katz, that every manager needs to possess, the technical, human and conceptual. Three Basic Skills of the Managers 1. Technical skill – ability to use the procedures, techniques, and knowledge of specialized field. Technical skill is most important in the lower levels. 2. Human skills – is the ability to work with, understand, and motivate other people, as individual or in group. Human skill is important for managers at every level. 3. Conceptual skill – is the ability to coordinate and integrate all of an organization as a whole, to understand how its part depends on one another, and to anticipate how a change in any of its parts will affect the whole. Conceptual increases as one rises through the ranks of a management system based on hierarchical principles of authority and responsibility. FIRST-LINE MANAGEMENT MIDDLE MANAGEMENT TOP MANAGEMENT Figure 1 – RELATIVE SKILLS NEEDED FOR EFFECTIVE PERFORMANCE AT DIFFERENT LEVEL OF MANAGEMENT CONCEPTUAL CONCEPTUAL CONCEPTUAL HUMAN HUMAN HUMAN TECHNICAL 4 | P a gTECHNICAL a g e m e n t / J a n i n e L . M o n e d a - 2 0 1 0 e/Man TECHNICAL
  5. 5. AMA Computer Learning Center Guadalupe Campus Management Principle MANAGERIAL ROLES In a broad sense, a “role” consists of behavior patterns expected of an individual within a social unit. A role is thus, behavioral pattern expected of someone within functional unit. According to Mintzberg, managers perform basically 10 roles that can be grouped according to three main functions. Thus, all managers play a series of interpersonal, informational and decision-making roles. Mintzberg’s 10 Managerial Roles The ten roles explored in this theory have extensive explanations which are briefly developed here: 1. Interpersonal Roles a. Figurehead: All social, inspiration, legal and ceremonial obligations. In this light, the manager is seen as a symbol of status and authority. b. Leader: Duties are at the heart of the manager-subordinate relationship and include structuring and motivating subordinates, overseeing their progress, promoting and encouraging their development, and balancing effectiveness. c. Liaison: Describes the information and communication obligations of a manager. One must network and engage in information exchange to gain access to knowledge bases. 2. Informational Role d. Monitor: Duties include assessing internal operations, a department's success and the problems and opportunities which may arise. All the information gained in this capacity must be stored and maintained. e. Disseminator: Highlights factual or value based external views into the organisation and to subordinates. This requires both filtering and delegation skills. f. Spokesman: Serves in a PR capacity by informing and lobbying others to keep key stakeholders updated about the operations of the organisation. 3. Decision-Making Role g. Entrepreneur: Roles encourage managers to create improvement projects and work to delegate, empower and supervise teams in the development process. h. Disturbance handler: A generalist role that takes charge when an organisation is unexpectedly upset or transformed and requires calming and support. i. Resource Allocator: Describes the responsibility of allocating and overseeing financial, material and personnel resources. j. Negotiator: Is a specific task which is integral for the spokesman, figurehead and resource allocator roles. ETHICS IN MANAGEMENT As applied to the study of management, ethics refers to the concept of interactive responsibility: of who is—and should be— benefited or harmed by any action. It is also study of who does—and who should—have rights of any kind. 5|Page/Management/Janine L. Moneda-2010
  6. 6. AMA Computer Learning Center Guadalupe Campus Management Principle Reasons to behave ethically From the point of view of internal customer: • improves the atmosphere at work and helps motivating the employees • ethic behaviour of management sets a good example to the employees • evokes a sense of pride for the company and improves its image in the eyes of the employees From the point of view of external customer: • improves the public image of the company adds to the overall development of ethical behaviour in the society 6|Page/Management/Janine L. Moneda-2010
  7. 7. AMA Computer Learning Center Guadalupe Campus Management Principle The four levels of organizational ethics • Social disregard: the company shows carelessness for the consequences of its actions • Social obligation: the company does not wish to extend its activity any further than just meeting its legal responsibilities • Social responsiveness: the company adjusts its policies according to the social conditions, demands and pressures • Social Responsibility :the company decides to concentrate on its long - term goals for the benefit of society in general Ethical decision - making • When making a decision in management the following criteria of ethical decision - making should be considered: • Legality - will the decision somehow affect the legal status? • Fairness - how will the decision affect those involved in it? • Self - respect - does the decision - maker feel good about the decision and its consequences? • Long - term effects" - how do the predicted long - term effects relate to the above parameters? REFERENCES: Textbook : Management, 4th Edition, James A. F. Stoner/R/ Edward Freeman, Prentice Hall, Englewood Cliffs, New Jersey 07632, Internet : 7|Page/Management/Janine L. Moneda-2010