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New Era of Management R I C HARD L. DAFT


Managing in Turbulent Times CHAPTER 1


Learning Objectives  

  

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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.) 

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Understand the personal challenges involved in becoming a new manager in an organization in today’s world. Discuss the management competencies needed to deal with today’s 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

1. 2.

3.

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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

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What Do Managers Have in Common?  

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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 7

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Functions of Management Planning Select goals and ways to attain them

Organizing

Controlling Monitor activities and make corrections

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

Performance •Attain goals Organizing

Controlling Monitor activities and make corrections

Assign responsibility for task accomplishment

•Information

•Products •Services •Efficiency •Effectiveness

Leading Use influence to motivate employees

Exhibit 1.1

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Planning Function 

Definition – –

Corporate Examples – –

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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

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Organizing Function 

Definition – – –

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

Corporate Examples - Structural reorganizations –

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tasks into departments authority and allocation of resources across organization

IBM, the Catholic Church, Microsoft, Motorola, the FBI Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.


Leading Function

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

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Controlling Function Definition

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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 

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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 Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.


Organizational Performance Attainment of organizational goals in an efficient and effective manner The Process of Management

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2nd half of definition of management


Organizational Performance

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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 – organization’s 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 – –

General Managers –

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

Responsible for several departments that perform different functions

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Managerial Types - Horizontal 

Functional Managers – – – – – –

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Advertising Sales Finance Human Resources Manufacturing Accounting

General Managers –

Self-contained division such as a Macy’s 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

Life on Speed Dial

Manager’s Role – –

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Fragmentation, Variety, Brevity

Set of expectations for one’s 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

Role

Informational

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

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Role Differences

Source of Financial Resources

Unconventional Bottomline

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Management and the New Workplace

Exhibit 1.7

27

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Management and the New Workplace  

Forces on organizations New Management Competencies – – – – –

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

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Managing During Turbulent Times

    

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

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