New Era of Management

RICHARD L. DAFT

Managing in Turbulent Times

CHAPTER 1

Learning Objectives

Describe the four management functions and the type of management activity associated with each. Explain the difference between efficiency and effectiveness and their importance for organizational performance. Describe management types and the horizontal and vertical differences between them. Describe conceptual, human, and technical skills and their relevance for managers and employees. Define 10 roles that managers perform in organization.

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Learning Objectives (contd.)

Understand the personal challenges involved in becoming a new manager in an organization in todays world. Discuss the management competencies needed to deal with todays turbulent environment, including issues such as diversity, globalization, and rapid changes. Explain the leadership skills needed for effective crisis management.

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The Nature of Management

Managers have to cope with diverse and far-reaching challenges To keep pace with ever-advancing technology To find ways to incorporate the Internet and e-business into their strategies and business model Strive to remain competitive in a dynamic and far reaching world

1.

2.

3.

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What Do Managers Have in Common?

They get things done through their organization. They create the systems, conditions and environment that enable organizations to survive and thrive beyond the tenure of any specific supervisor or manager.

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Definition of Management

The attainment of organizational goals in an effective and efficient manner through Four functions

planning, organizing, leading, and controlling organizational resources.

Managers use a multitude of skills to perform functions

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Functions of Management
Planning
Select goals and ways to attain them

Controlling Monitor activities and make corrections

Organizing Assign responsibility for task accomplishment

Leading Use influence to motivate employees

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The Process of Management

Planning Select goals and ways to attain them Resources Human Financial Raw Materials Technological Information Leading Use influence to motivate employees Controlling Monitor activities and make corrections Organizing Assign responsibility for task accomplishment

Performance Attain goals Products Services Efficiency

Effectiveness

Exhibit 1.1

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Planning Function

Definition

Defines goals for future organizational performance Decides tasks and use of resources needed Planning AOL Time Warner The Lord of the Rings Lack of planning Merry-Go-Round

Corporate Examples

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Organizing Function

Definition

Follows planning Reflects how organization tries to accomplish plan Involves assignment of

tasks into departments authority and allocation of resources across organization

Corporate Examples - Structural reorganizations

IBM, the Catholic Church, Microsoft, Motorola, the FBI

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11

Leading Function

Definition The use of influence to motivate employees to achieve the organizations goals. Corporate Examples Michael Dell, Meg Whitman of eBay, Cara Kakuda of Nextel

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Controlling Function
Definition

Monitoring employees activities Determining whether the organization is on target toward its goals Making corrections as necessary

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Controlling Function
New Trends

Empowerment and trust of employees = training employees to monitor and correct themselves New information technology provides control without strict top-down constraints Lack of Control Information can lead to Organizational Failure
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Organizational Performance
Attainment of organizational goals in an efficient and effective manner
The Process of Management

2nd half of definition of management

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Organizational Performance

Organization - social entity that is goal directed and deliberately structured Effectiveness - degree to which organization achieves a stated goal Efficiency - use of minimal resources (raw materials, money, and people) to produce the desired volume of output

Performance organizations ability to attain its goals by using resources in an efficient and effective manner

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Management Skills

Exhibit 1.2

17

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Management Skills

Conceptual Skills Cognitive ability to see the

organization as a whole and the relationships among its parts

Human Skills ability to work with and through

other people and to work effectively as a group member

Technical Skills understanding of and

proficiency in the performance of specific tasks

When skills Fail

Experiential Exercise: Management Aptitude Questionnaire

18

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Management Types - Vertical

Managerial Levels in the Organizational Hierarchy
Managerial Levels in the Organizational Hierarchy

Exhibit 1.3
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Management Types - Horizontal

Functional Managers

Responsible for a department that performs a single functional task and Has employees with similar training and skills

General Managers

Responsible for several departments that perform different functions

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Managerial Types - Horizontal

Functional Managers

Advertising Sales Finance Human Resources Manufacturing Accounting

General Managers

Self-contained division such as a Macys department store Project managers have general management responsibility as they coordinate people across several departments

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What is it like to be a Manager?

Manager Activities

Multitasking

Fragmentation, Variety, Brevity

Life on Speed Dial

Managers Role

Set of expectations for ones behavior Diverse activities --10 roles

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Making the Leap From Individual Performer to Manager

Exhibit 1.4

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Ten Manager Roles

Category
Informational

Role
Monitor Disseminator Spokesperson

Interpersonal

Figurehead
Leader Liaison

Decisional

Entrepreneur Disturbance handler Resource allocator negotiator

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Hierarchical Levels

Exhibit 1.6
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Managing in Small Businesses and Nonprofit Organizations

Role Differences

Source of Financial Resources

Unconventional Bottomline

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Management and the New Workplace

Exhibit 1.7
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Management and the New Workplace

Forces on organizations New Management Competencies

Dispersed leadership Empowering others Collaborative relationships Team-building skills Learning organization

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Managing During Turbulent Times

Stay Calm Be Visible Put People Before Business Tell the Truth Know When to Get Back to Business

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