2. Objectives
• Term: Organization
• Need for management of people and activities
• Roles of managers
• Managerial authority
• Authority, power, and responsibility
• Leadership activities
• Delegation of authority.
2
3. 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.
3
4. 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?
4
5. 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.
5
6. 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.
6
7. Collective goals
• Ideological goals
• Beliefs and values, mission
• 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?
7
8. 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?
8
9. 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.’
9
10. Purpose of management
• Why do we need management?
• Who sets and communicates goals?
• Who ensures the goals are met?
• Who will harmonize the organization’s 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 10
in day-to-day operations)?
11. 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
11
• Identify and correct deviations.
13. 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? 13
14. 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. 14
15. 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
15
• Budgets – formal statement of expected results, in numbers.
17. 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. 17
18. 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.
18
19. Activity
• Brainstorm some alternative terms to replace or add to the
term ‘commanding’ to describe management’s ‘people’
function.
19
20. Managing performance
• Peter Drucker 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.
20
21. 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. 21
23. 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.
23
24. 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 24
• Avoiding doing anything risky or different.
25. Activity
• Suggest four ways in which senior management can
encourage managers to delegate more.
25
26. 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.
26
27. 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.
27
28. 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.
28
29. 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.
29
30. 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 other’s point of view. No winner, no loser.
• Confrontation/collaboration
• Working together to find true source of problem and solutions
• Forcing
• Using one’s power to force other to submit.
30
31. Activity
• Read activity 9 on page 22
• Which conflict handling style is most appropriate in each
case?
31
32. 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.
32
33. Types of leadership
Transactional Leadership Transformational Leadership
Clarify goals and objectives, focus on Establish long-term vision
short term
Focus on control mechanisms Create a climate of trust
Solving problems Make people solve own problems
through empowerment
Maintain status quo or improve Change current situation. Every threat
current situation is seen as an opportunity.
Plan, organize, and control Train, coach, counsel, and mentor
Guard and defend existing culture Change culture
Positional power exercised Power comes from relationships and
influencing people. Pressure exerted is
more subtle, done with more finesse. 33
34. 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 34
• Focus is to transform society, organization, and self.
35. 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.
35
Strategy to exploit the ‘art movie’ market segmentProgram for build up of the distribution4 pound charge is a tactic or policy, The ‘no-tips’ plan is a rule or regulation
Avoidance and smoothing perpetuate status quo; forcing =“all who agree say ‘eye’, all opposed say ‘I quit’
Strategist = hostage in Beirut; Magician = Ghandi
Transformation – intel open floor plan in HCMC; google work on own projects and feeding open source initiatives; crowdsourcing
