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Lesson 3 provides an overview of the challenging field of management. It explores the critical concepts
and processes utilized by managers to operate an organization. Managers get things done through
people, and general managerial functions include planning, organizing, leading, and controlling. In todays
fast-paced environment, managers must not only effectively employ these four functions, but also keep up
in a dynamically changing and innovative global environment. The manager must be skilled in change
strategy as well as interpersonal skills. In this lesson, you will examine the nature of management and
build a tool box of critical knowledge and skills to face the challenges ahead. Finally, this lesson focuses
on researching career information related to management and the opportunities available.
Learning Objectives
Upon completion of Lesson 3, you should be able to:
Explain the four functions of management (planning, organizing, leading, and controlling).
Define conflict and describe the conflict management styles available to managers.
What To Do Next
Lecture and Research Update
Click on the Lecture and Research Update link above to access your lesson lecture notes.
Vocabulary List
Click on the Vocabulary List link above to view vocabulary terms that are found in the Lecture and
Research Update for this lesson. Study and learn the meaning of each term and how to apply the
term to the content area and the real world.
Final Exam
After you have completed the readings in this lesson and feel comfortable with the material
presented, go to the Exams & Quizzes tool on the left navigation panel underneath the QUICK
LINKS section and complete the Final Exam 3_04.
Grading Criteria
Congratulations!
Once you have completed these items, you have completed this course! We at Ashworth College
hope you have enjoyed this course and feel a sense of accomplishment, as you get closer to
earning your masters degree.
Management seeks to ensure the best use of available resources in a specific, operational and strategic
context. Leadership seeks to identify the best operational and strategic context for the use of available
resources. For this purpose, the leader seeks to add to the organizational "machine" as much
organizational human content, transforming it into what it should be in reality: a community acting in
unison in order to achieve some common goals. (Dumitrascu, 2014)
1. Where are we going? This step defines the mission (organizations purpose) and outlines the
organizations strengths, weaknesses, opportunities, and threats (SWOT analysis).
2. Where do we want to go? This step examines future trends, and sets long-term strategic goals for
the organization.
3. How will we get there? This step addresses the specific activities required to accomplish the
strategic goals.
4. Who will do the driving? This step identifies the organizational functions and personnel that will
accomplish the activities and tasks.
5. How much will it cost? This is the financial analysis of the strategic plan as well as the budgeting
process.
Organizing
Organizing means creating the structure needed to accomplish the organizations mission. Jafari & Maleki
(2013) say, Organizational structure determines the communications between various organization levels
to develop discipline in corporations and people implement the commands and decisions based on
appointed communications. (p. 252). Elements of organizational structure and design are the chain of
command, project teams, and span of control. Organizational structure can take on different forms. The
military would be an example of a bureaucratic structure. IBM is an example of a fluid structure, using
project teams organized to meet a clients needs.
Another element of organizing is the design of jobs, such as functional specialist or generalist. An
organization may group job responsibilities by function, such as marketing, finance, and human
resources. They may group job responsibilities by product, such as SUV, sedan, or truck. They may group
job responsibilities by customer or customer groups, for example, manufacturing, retail, and health
care. Finally, they may group job responsibilities by location, such as Middle East, Canada, and
Southwest. The design of the structure, jobs, and reporting relationships focuses on how the organization
can best serve their customers.
Leading
Leadership is the interpersonal influence that gets an individual or team to do what the leader wants
done, such as carrying out the strategic plan. Eisenhower suggested that leadership is the art of getting
someone else to do something you want done because the other person wants to do it. Leadership is the
process of guiding others, and the guidance may come from the formal leader (designated by the
organization, e.g., unit manager) and/or an informal leader who influences through special skills or
resources that meet the needs of the others.
Ideally, a manager is also a leader. Typically, leadership is a process of guiding others toward goal
accomplishment. Management is a rational assessment of a situation, the development of goals and
strategies, and the design, organization, direction, and control of activities required to attain the
goals. According to Garson (2004) there are several differences between leaders and managers as
shown in Table 3-1.
Also, according to Mastrangelo, A., R. Eddy, & Lorenzet (2014), Professional and personal leadership
are positively related to employee intentions to cooperate, personal leadership mediates the effect of
professional leadership on employee intentions to cooperate, and employees in the high-performing
organization rated all study variables higher than employees in the low-performing organization.(p. 604)
Control
The fourth management function is control, whereby the manager ensures that everything is going
according to plan. More specifically, control uses measurements to obtain feedback that performance is
within acceptable limits and that the organization is moving towards its goals. A properly designed control
system (e.g., performance standards, production reports) helps the manager anticipate, monitor, and
respond to changing circumstances (Griffin, 2006). Earlier in this Lecture and Research Update, we used
the pyramid to describe the levels of management. We can use the same analogy for the control
process. Top-level managers monitor the strategic plan, middle managers monitor the complexity of the
organizational structure, and the first-level managers scrutinize the financial and operational activities
(Griffin, 2006).
Ten Skill Sets for the Successful Manager
Managers today face many challenges as they guide the fortunes of their companies. A few of the
challenges managers face include an erratic economy, diversity, globalization, new technology, and
greater demands from customers. In addition to the skills required in executing the four functions of
management, excellence is required in other arenas. Effectively managing people requires ten specific
skill sets: ethical decision making, managing social responsibility issues, managing in a global
environment, interpersonal communication, managing conflict, negotiation skills, motivation, developing
high performance teams, time management, and change management.
Ethical Decision Making
The Institute for Global Ethics explains that:
An organization formed without ethics is like a cabin built without nails: no matter how solid it may appear,
it will slowly crumble. A culture of ethics is what links people to those above, below, and beside them,
connections which, although invisible, make the whole organization immeasurably stronger.
And in this day and age of eroded public trust, ethics are more important than ever. After the mortgage-
loan debacle, after Enron, after decades of botched recalls and profit-driven decisions and environmental
tragedies, people often assume organizations don't care about them. Trust is no longer given freely. Once
an organization has earned the public's trust, however, that connection becomes its most valuable asset.
Ethical organizations are popular, and that translates to unwavering, long-term consumer loyalty.
2. Competition: Sometimes during intense competition, managers feel threatened regarding the
survival of a product, for example, and make some choices that are not acceptable business
practices. Examples include corporate espionage to steal ideas, focusing cigarette advertising on
children, etc.
3. Legal: Laws regulating business conduct ensure that society is protected. For example, the
Sherman Antitrust Act prohibits monopolies; the Environmental Protection Act protects the
environment from toxic waste in the air and water, and the Equal Pay Act prohibits discrimination
in pay based on sex.
Although it may seem that no one would oppose social responsibility, there are those who feel it is not the
organizations role to be responsible. Arguments for and against social responsibility appear in Table 3-2.
Managing Conflict
Conflict is a situation in which two or more people disagree over issues of organizational substance
and/or experience some emotional antagonism with each other. Conflict is an unavoidable part of
management. Typically, conflict develops when one is competing with others for labor, resources,
equipment, facilities, or money. In addition, conflicts often arise out of differing priorities, a
misunderstanding of roles and responsibilities, technical opinions, and personality clashes. Sometimes
conflicts can produce beneficial results; however, more often they can be detrimental to you and your
organization's success if not planned for and properly resolved. How well you handle conflicts and
negotiate an equitable solution for both parties has a direct bearing on your success as a manager.
Guiding principles in resolving conflict include listening, preserving self-respect and dignity, stating ones
case, and expecting to change ones behavior. Table 3-5 lists some dos and suggestions for resolving
conflict.
1. It is a process in which at least one person tries to persuade another to change his or her ideas or
behavior.
2. Parties may belong to different cultures (different organizations, countries, etc.) and may not
share the same thinking, feeling, and behaving.
3. Global negotiations contain all of the complexity of domestic negotiations, with the added
dimension of cultural diversity.
4. Negotiating effectively across cultures is one of the single most important global business skills.
When planning for negotiation, it is advisable for the manager to take proactive steps to ensure success
and avoid some too-common mistakes shown in Table 3-6.
Table 3-6: Planning for Negotiation: The Steps to Take and Mistakes to Avoid
Reaching a satisfying, optimal agreement using an efficient process that strengthens relationships usually
characterizes ongoing relationships where both parties try for a win-win agreement. A successful
negotiator uses not only the plan for negotiation listed in Table 3-6 but also the dos and suggestions for
resolving conflict listed in Table 3-5. Additionally, a successful negotiator plans his or her strategy ahead
of time.
Motivation
Motivation is an internal process that energizes, directs, and sustains behavior. These forces or drives
cause us to behave in a particular way. The key assumption underlying motivation is that employees start
a job motivated. Research indicates that in the first three months of employment, employees make a
turnover decision; that is, they decide if they like the job and/or the company and want to stay. To achieve
motivation and high performance, the managers role starts with clear goals for the new
employee. Employees want to know what a good job looks like. Good performance is a journey not a
destination. When managers create a supportive, problem-solving work environment, provide necessary
resources to perform tasks, and reward and encourage high performance consistent with objectives,
employees are usually motivated.
Motivation works best when based on self-governance, when employees are treated fairly, given timely
and honest feedback, and when rewards are salient to the individual. Peter Drucker said that a manager
must manage under the assumption that he/she needs the employees more than they need the
manager. Managing a diverse workforce suggests that applying motivation principles vary for different
people, i.e., different strokes for different folks. Managers may tend to give feedback, rewards, etc.,
based upon their own needs and/or experiences. When we supervise others in a diverse culture, it is
important to observe/learn about individual differences. For example, it would not be motivational to give
Asians the Employee of the Month award in front of the entire department. Asians are from a collectivist
culture and would probably be very embarrassed; they may feel that the team deserved the award, not
the individual.
Developing High-Performing Teams
As organizations become more decentralized and customer focused, the manager must have the skills to
bring together a group of experts and build high-performing teams. High-performing teams share common
goals; members may be from various backgrounds, and they may face ambiguous situations in which
values may conflict. They must also choose from among various ways to achieve the same goals,
perform complex tasks requiring high degrees of interdependence and cooperation among the team
members, and need the highest level of performance for the team to achieve its stated goals. The
challenge for the manager is to take a group of individuals and create an environment in which the
members will work together in a collaborative and synergistic manner to achieve their team goals. To do
this, the manager must make the goals of the team clear and understandable to all members, and the
manager must get each member to buy-in to the goals.
In order for the manager to facilitate the teams movement from getting acquainted (norming), through the
various stages of development, he or she must be aware of the characteristics of each stage. The four
stages of team development are identified in Table 3-7.
1. Define Your Mission: The mission is the purpose of your job. What is the reason for your
existence? How does your job help to carry out the organizations mission and strategic plan?
2. Establish Your Goals: What are the key result areas (high priorities) for your job? Set specific and
measurable goals for the priorities.
3. Make a Daily To-Do List: For each goal, identify the tasks that have to be accomplished to get the
job done. Assign priorities to each task and devise a daily plan. Consolidate your time by using
large units of uninterrupted time (when possible); put discretionary time into the largest possible
units, and be a once-handler.
5. Establish Controls: Identify performance indicators for yourself and for the delegated assignments
along with deadlines. Manage your time by cutting back on unproductive demands, prune,
consolidate, learn to say no, and let go of treasured habits that may not be efficient and
effective.
6. Follow Up: Set up feedback mechanisms to ensure that the work is being executed in a timely
fashion as well as achieving quality standards.
Change Management
To pass through the gateway to power, a leader in todays economy must be able to facilitate change and
build business units that operate through decentralized business teams. The rapidly changing conditions
in the global marketplace of the new millennium have made unprecedented demands on organizational
leaders. The new marketplace requires far-reaching visions of the future, radical rethinking of purpose,
and a dramatic ability to effectively respond to change. Competitive supremacy will require organizations
to be more innovative, constantly learning, responding quickly and efficiently, and redesigning its
infrastructure to meet the demands of consumers. Organizational change programs require a shift in
thinking and frequently lead to changes in the way the organization is managed. Often the management
team is the change agent as well as the target of change. Managers may have to change their behavior
and how they work if there is to be effective change at the operational level. Organizations dont change
people do.
Career Opportunities in Management
The opportunities for employment in management are numerous and diverse. Where you decide to
concentrate your efforts and abilities is totally based on your desires and personal needs. Current
opportunities in management include business teachers and business operations research analysts.
According to the Occupational Information Network (O*NET), the U.S. Department of Labor projects both
fields to grow by up to 22% between 2012 and 2022. These are just two of the many exciting
opportunities where your graduate degree can take you places you never expected. O*NET provides a
wealth of information regarding the knowledge, skills, and abilities required to perform the opportunities
listed.
O*NET
One place to look for possible career opportunities is O*NET, the Occupational Information Network
(http://www.onetonline.org/). O*NET is an online database that provides information about the types of
jobs available in a particular field or industry, the average salaries paid in those positions (to include data
by state), and projected growth rates. This site, sponsored by the U.S. Department of Labor, provides
statistical data used by millions of employers, workers, and students around the globe to make informed
decisions about career choices, training and education, and employment. O*NET provides a wealth of
information that can assist you in performing a wide range of tasks that you may encounter.
You may be curious about the number and types of jobs available to you upon completion of your
graduate degree. A simple inquiry on O*NETs quick search feature using the Find Occupations link
reveals a list of jobs categories from which to choose. For example, Figure 3-1 shows the Find
Occupations page (http://www.onetonline.org/) where you can perform a quick search using Business
Teachers as your search topic. The search results are illustrated in Figure 3-2. To further explore and
gather other related job-specific data, click the link for the job title in which you are interested. For
illustration purposes, we will use the business teacher occupation.
Vocabulary List
You will find the following vocabulary terms in the Lecture and Research Update for this lesson. Study
and learn the meaning of each term and how to apply the term to the content area and the real world.
Coercive Power Expert Power Organizing
Conflict Interpersonal Communication Organizational Culture
Control Leadership Planning
Culture Legitimate Power Referent Power
Decision Making Management Reward Power
Delegate Motivation Social Responsibility
Ethics Negotiation Values