What Managers Do

Managers (or administrators)

Individuals who achieve goals through other
people.
Managerial
ManagerialActivities
Activities
Make
Makedecisions
decisions
Allocate
Allocateresources
resources
Direct
Directactivities
activitiesof
ofothers
others
to
toattain
attaingoals
goals

Where Managers Work

Organization
A consciously coordinated social
unit, composed of two or more
people, that functions on a
relatively continuous basis to
achieve a common goal or set of
goals.

Management Functions
Planning
Planning

Organizing
Organizing

Management
Management
Functions
Functions
Controlling
Controlling

Leading
Leading

Management Functions (contd)

Planning
A process that includes defining
goals, establishing strategy, and
developing different ways to
coordinate activities.

Management Functions (contd)

Organizing
Determining what tasks are to be
done, who is to do them, how the
tasks are to be grouped, who reports
to whom, and where decisions are to
be made.

Management Functions (contd)

Leading
A function that includes giving vision,
motivating employees, directing
others, selecting the most effective
communication channels, and
resolving conflicts.

Management Functions (contd)

Controlling
Monitoring activities to ensure they are
being accomplished as planned and
correcting any significant deviations.

What Is Planning?

Planning

A primary functional managerial activity that

involves:
Defining the organizations goals
Establishing an overall strategy for achieving those
goals
Developing a comprehensive set of plans to
integrate and coordinate organizational work.

Types of planning
Informal: not written down, short-term focus;
specific to an organizational unit.
Formal: written, specific, and long-term focus,
involves shared goals for the organization.

Why Do Managers Plan?

Purposes of Planning
Provides direction
Reduces uncertainty
Minimizes waste and redundancy
Sets the standards for controlling

Planning and Performance

The Relationship Between Planning And
Performance
Formal planning is associated with:
Higher profits and returns of assets.
Positive financial results.
The quality of planning and implementation affects
performance more than the extent of planning.
The external environment can reduce the impact of
planning on performance,
Formal planning must be used for several years before
planning begins to affect performance.

How Do Managers Plan?

Elements of Planning
Goals (also Objectives)
Desired outcomes for individuals, groups, or entire
organizations
Provide direction and evaluation performance
criteria

Plans
Documents that outline how goals are to be
accomplished
Describe how resources are to be allocated and
establish activity schedules

Types of Goals
Financial Goals
Are related to the expected internal financial
performance of the organization.

Strategic Goals
Are related to the performance of the firm relative to
factors in its external environment (e.g.,
competitors).

Stated Goals versus Real Goals

Broadly-worded official statements of the
organization (intended for public consumption) that
may be irrelevant to its real goals (what actually
goes on in the organization).

Types of Plans

Exhibit 1.1

Traditional Objective Setting

Exhibit 7.4

Planning in the Hierarchy of

Organizations

Exhibit 7.7

Managers Versus Leaders

Managers

Leaders

Are appointed to their

position.

Are appointed or emerge

from within a work group.

Can influence people only

to the extent of the formal
authority of their position.

Can influence other

people and have
managerial authority.

Do not necessarily have

the skills and capabilities
to be leaders.

Do not necessarily have

the skills and capabilities
to be managers.

Leadership is the process of influencing a

group toward the achievement of goals.

The Managerial Grid

Managerial Grid
Appraises leadership styles using two dimensions:
Concern for people
Concern for production

Places managerial styles in five categories:

Impoverished management
Task management
Middle-of-the-road management
Country club management
Team management

The
Managerial
Grid
Source: Reprinted by permission of
Harvard Business Review. An exhibit
from Breakthrough in Organization
Development by Robert R. Blake,
Jane S. Mouton, Louis B. Barnes, and
Larry E. Greiner, November
December 1964, p. 136. Copyright
1964 by the President and Fellows of
Harvard College. All rights reserved.

Exhibit 17.3

Cutting-Edge Approaches to Leadership

Transactional Leadership
Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and
task requirements.

Transformational Leadership
Leaders who inspire followers to transcend their own
self-interests for the good of the organization by
clarifying role and task requirements.
Leaders who also are capable of having a profound
and extraordinary effect on their followers.

Cutting Edge Approaches to Leadership

(contd)
Charismatic Leadership
An enthusiastic, self-confident leader whose
personality and actions influence people to behave in
certain ways.
Characteristics of charismatic leaders:
Have a vision.
Are able to articulate the vision.
Are willing to take risks to achieve the vision.
Are sensitive to the environment and follower
needs.
Exhibit behaviors that are out of the ordinary.

Cutting Edge Approaches to Leadership

(contd)
Visionary Leadership
A leader who creates and articulates a realistic,
credible, and attractive vision of the future that
improves upon the present situation.
Visionary leaders have the ability to:
Explain the vision to others.
Express the vision not just verbally but through
behavior.
Extend or apply the vision to different leadership
contexts.

Cutting Edge Approaches to Leadership

(contd)
Team Leadership Characteristics
Having patience to share information
Being able to trust others and to give up authority
Understanding when to intervene

Team Leaders Job

Managing the teams external boundary
Facilitating the team process
Coaching, facilitating, handling disciplinary
problems, reviewing team and individual
performance, training, and communication

Cutting Edge Approaches to Leadership

(contd)
Team Leadership Roles
Liaison with external constituencies
Troubleshooter
Conflict manager
Coach

Specific Team Leadership Roles

Exhibit 1.2

Beyond Charismatic Leadership

Level 5 Leaders
Possess a fifth dimensiona paradoxical blend of
personal humility and professional willin addition to
the four basic leadership qualities of individual
capability, team skills, managerial competence, and the
ability to stimulate others to high performance.
Channel their ego needs away from themselves and into
the goal of building a great company.

Contemporary Planning Techniques

Scenario
A consistent view of what the future is likely to be.

Scenario Planning
An attempt not try to predict the future but to reduce
uncertainty by playing out potential situations under
different specified conditions.

Contingency Planning
Developing scenarios that allow managers determine
in advance what their actions should be should a
considered event actually occur.

ORGANIZING
Organizing
The process of arranging people and other

resources to work together to accomplish a goal.

Organization structure
The system of tasks, workflows, reporting
relationships, and communication channels that
link together diverse individuals and groups.

Organizing viewed in relationship with the

other management functions.

What are the major types of

organization structures?
Functional structures
People with similar skills and performing
similar tasks are grouped together into formal
work units.
Members work in their functional areas of
expertise.
Are not limited to businesses.
Work well for small organizations producing
few products or services.

What are the new developments in

organization structures?
Network structures
A central core that is linked through networks
of relationships with outside contractors and
suppliers of essential services.
Own only core components and use strategic
alliances or outsourcing to provide other
components.

What are the major types of

organization structures?
Divisional structures
Group together people who work on the same
product or process, serve similar customers,
and/or are located in the same area or
geographical region.
Common in complex organizations.
Avoid problems associated with functional
structures.

The boundary less organization eliminates

internal and external barriers.

What organizing trends are changing the

workplace?
Contemporary organizing trends include:
Shorter chains of command.
Less unity of command.
Wider spans of control.
More delegation and empowerment.
Decentralization with centralization.
Reduced use of staff.

What organizing trends are

changing the workplace?
Shorter chains of command
The line of authority that vertically links all
persons with successively higher levels of
management.
Organizing trend:
Organizations are being streamlined by cutting
unnecessary levels of management.
Flatter structures are viewed as a competitive
advantage.

What organizing trends are

changing the workplace?
Less unity of command
Each person in an organization should report
to one and only one supervisor.
Organizing trend:
Organizations are using more cross-functional
teams, task forces, and horizontal structures.
Organizations are becoming more customer
conscious.
Employees often find themselves working for more
than one boss.

What organizing trends are

changing the workplace?
Wider spans of control
The number of persons directly reporting to a
manager.
Organizing trend:
Many organizations are shifting to wider spans of
control as levels of management are eliminated.
Managers have responsibility for a larger number
of subordinates who operate with less direct
supervision.

Spans of control in flat versus

tall structures.

What organizing trends are

changing the workplace?
More delegation and empowerment
Delegation is the process of entrusting work
to others by giving them the right to make
decisions and take action.
The manager assigns responsibility, grants
authority to act, and creates accountability.
Authority should be commensurate with
responsibility.

What organizing trends are

changing the workplace?
Guidelines for effective delegation:

Carefully choose the person to whom you delegate.

Define the responsibility; make the assignment clear.
Agree on performance objectives and standards.
Agree on a performance timetable.
Give authority; allow the other person to act independently.
Show trust in the other person.
Provide performance support.
Give performance feedback
Recognize and reinforce progress.
Help when things go wrong.
Dont forget your accountability for performance results.

What organizing trends are

changing the workplace?
More delegation and empowerment (cont.)
A common management failure is
unwillingness to delegate.
Delegation leads to empowerment.
Organizing trend:
Managers are delegating more and finding more
ways to empower people at all levels.

What organizing trends are

changing the workplace?
Reduced use of staff
Specialized staff
People who perform a technical service or provide
special problem-solving expertise to other parts of
the organization.

Personal staff
People working in assistant-to positions that
provide special support to higher-level managers.

Recruitment
Process of locating,
identifying, and attracting
capable candidates
Can be for current or future
needs
Critical activity for some
corporations.
What sources do we use for
recruitment

Job Performance, Selection Criteria, and

Predictors

Big Five Personality Characteristics

Types of Selection Interviews

What Is Control?
Control
The process of monitoring activities to ensure
that they are being accomplished as planned
and of correcting any significant deviations.

The Purpose of Control

To ensure that activities are completed in
ways that lead to accomplishment of
organizational goals.

Why Is Control Important?

As the final link in management functions:
Planning
Controls let managers know whether their goals
and plans are on target and what future actions to
take.

Empowering employees
Control systems provide managers with
information and feedback on employee
performance.

Protecting the workplace

Controls enhance physical security and help
minimize workplace disruptions.

The PlanningControlling Link

Exhibit 1.3

The Control Process

The Process of Control
1. Measuring actual
performance.
2. Comparing actual
performance against a
standard.
3. Taking action to correct
deviations or
inadequate standards.

The Control Process

Exhibit 1.4

Taking Managerial Action

Courses of Action
Doing nothing
Only if deviation is judged to be insignificant.

Correcting actual (current) performance

Immediate corrective action to correct the problem at
once.
Basic corrective action to locate and to correct the source
of the deviation.
Corrective Actions
Change strategy, structure, compensation scheme, or training
programs; redesign jobs; or fire employees

Taking Managerial Action (contd)

Courses of Action (contd)
Revising the standard
Examining the standard to ascertain whether or not
the standard is realistic, fair, and achievable.
Upholding the validity of the standard.
Resetting goals that were initially set too low or too high.

Controlling for Organizational

Performance
What Is Performance?
The end result of an activity

What Is Organizational
Performance?
The accumulated end results of all of the
organizations work processes and activities
Designing strategies, work processes, and work
activities.
Coordinating the work of employees

Understanding Groups
Group
Two or more interacting and interdependent individuals
who come together to achieve particular goals.

Formal groups
Work groups defined by the organizations structure
that have designated work assignments and tasks.
Appropriate behaviors are defined by and directed toward
organizational goals.

Informal groups
Groups that are independently formed to meet the
social needs of their members.

Stages in Group Development

Forming
Members join and begin the
process of defining the groups
purpose, structure, and
leadership.

Storming
Intragroup conflict occurs as
individuals resist control by
the group and disagree over
leadership.

Norming
Close relationships develop as
the group becomes cohesive
and establishes its norms for
acceptable behavior.

Performing
A fully functional group
structure allows the
group to focus on
performing the task at
hand.

Adjourning
The group prepares to
disband and is no longer
concerned with high levels
of performance.

Stages of Group Development

Exhibit 1.5

Group Structure: Group Size

Small groups
Complete tasks faster than
larger groups.
Make more effective use of
facts.

Large groups
Solve problems better than
small groups.
Are good for getting diverse
input.
Are more effective in factfinding.

Social Loafing
The tendency for individuals
to expend less effort when
working collectively than
when work individually.

Group Structure (contd)

Group Cohesiveness
The degree to which members are attracted
to a group and share the groups goals.
Highly cohesive groups are more effective and
productive than less cohesive groups when their
goals aligned with organizational goals.

The Relationship Between

Cohesiveness and Productivity

Exhibit 1.6

Techniques for Making More

Creative Group
Decisions

Exhibit 1.7

Advantages of Using Teams

Teams outperform individuals.
Teams provide a way to better use employee
talents.
Teams are more flexible and responsive.
Teams can be quickly
assembled, deployed,
refocused, and disbanded.

What Is a Team?
Work Team
A group whose members work intensely on a specific
common goal using their positive synergy, individual
and mutual accountability, and complementary skills.

Types of Teams
Problem-solving teams
Self-managed work teams
Cross-functional teams
Virtual teams

Types of Teams
Problem-solving Teams
Employees from the same department and
functional area who are involved in efforts to
improve work activities or to solve specific
problems

Self-managed Work Teams

A formal group of employees who operate
without a manager and responsible for a
complete work process or segment.

Types of Teams (contd)

Cross-functional Teams
A hybrid grouping of individuals who are
experts in various specialties and who work
together on various tasks.

Virtual Teams
Teams that use computer technology to link
physically dispersed members in order to
achieve a common goal.

Examples of Formal Groups

Command Groups
Groups that are determined by the organization chart
and composed of individuals who report directly to a
given manager.

Task Groups
Groups composed of individuals brought together to
complete a specific job task; their existence is often
temporary because once the task is completed, the
group disbands.

Examples of Formal Groups (contd)

Cross-functional Teams
Groups that bring together the knowledge and skills of
individuals from various work areas or groups whose
members have been trained to do each others jobs.

Self-managed Teams
Groups that are essentially independent and in
addition to their own tasks, take on traditional
responsibilities such as hiring, planning and
scheduling, and performance evaluations.

Characteristics of Effective Teams

Exhibit 1.8

Characteristics of Effective Teams

Have a clear
understanding of their
goals.
Have competent
members with relevant
technical and
interpersonal skills.
Exhibit high mutual trust
in the character and
integrity of their
members.

Are unified in their

commitment to team goals.
Have good communication
systems.
Possess effective
negotiating skills
Have appropriate leadership
Have both internally and
externally supportive
environments

Job satisfaction
A general attitude
toward ones job, the
difference between the
amount of reward
workers receive and
the amount they
believe they should
receive.