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Learning Objectives
• What is management? Organization?
• What are the skills managers need?
• What roles do managers perform?
• What management competencies are needed today?
• How is leadership viewed today?
• What current and historical forces shaping management today?
• Describe the general and task environments and the dimensions of
each.
• Explain the strategies managers use to help organizations adapt to
an uncertain or turbulent environment.
• Define corporate culture and give organizational examples.
• Explain organizational symbols, stories, heroes, slogans, and
ceremonies and their relationship to corporate culture.
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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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• 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
Organizational Performance
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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
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Functions of Management
Planning
Leading
Controlling Organizing
Use influence to
motivate employees
Select goals and
ways to attain
them
Assign responsibility
for task
accomplishment
Monitor activities
and make
corrections
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Planning Function
• Defines goals for future organizational
performance
• Decides tasks and use of resources needed
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Organizing Function
• Follows planning
• Reflects how organization accomplish plan
• Involves assignment of:
– tasks into departments
– authority and allocation of resources across
organization
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Controlling Function
• Monitoring employees’ activities
• Determining whether the organization is
on target toward its goals
• Making corrections as necessary
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Controlling Function - 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 can lead to
organizational failure
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What is it like to be a Manager?
• Manager Activities
– Adventures in Multitasking
– Life on Speed Dial
• Manager’s Role
– Set of expectations for one’s behavior
– Diverse activities --10 roles
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Management and the New Workplace
• Forces on organizations
– Technology
– Outsourcing
– Diversity
• 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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International Dimension
Portion of the external environment
that represents events originating in
foreign countries as well as
opportunities for Home companies in
other countries.
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Technological Dimension
• Scientific and technological advances
– Specific industries
– Society at large
• Impact
• Competition
• Relationship with Customers
• Medical advances
• Nanotechnology advances
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Socio-Cultural Dimension
• Demographic characteristics of the
general population
– Norms
– Customs
– Values
• Examples:
– Increased globalization/diversity
– Longer stay in workforce
– Growing number of single-father households
– Number of married households decreased
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Economic Dimension
• Economic health
• Consumer purchasing power
• Unemployment rate
• Interest rates
• Recent Trends
• Frequency of mergers and acquisitions
• Small business sector vitality
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Legal-Political Dimension
Dimension of the general environment that
includes federal, state, and local
government regulations and political
activities designed to influence company
behavior.
Pressure Groups – interest group that works within the
legal-political framework to influence companies to behave
in socially responsible ways.
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Task Environment
Sectors that have a direct working
relationship with the organization
⇒ Customers
⇒ Competitors
⇒ Suppliers
⇒ Labor Market
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Labor Market Forces
• Labor Market Forces Affecting
Organizations today
⇒ Growing need for computer literate
information technology workers
⇒ Necessity for ongoing investment in human
resources – recruitment, education, training
⇒ Effects of international trading blocks,
automation, outsourcing, shifting facility
locations upon labor dislocations
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Culture
The set of key values,
beliefs, understandings,
and norms that members
of an organization share.
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Levels of Corporate Culture
Visible
1. Artifacts, such as dress, office
layout, symbols, slogans,
ceremonies
2. Expressed values
3. Underlying assumptions and deep
beliefs, such as “people are lazy
and can’t be trusted”
Invisible
Culture that can
be seen at the
surface level
Deeper values
and shared
understandings
held by
organization
members
Exhibit 2.5
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Environment and Culture
• A big influence on internal corporate
culture is the external environment
• Cultures can vary widely across
organizations
• Organizations within same industry reveal
similar cultural characteristics
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Features of Contemporary
Management Culture
Strategic
Planning
Bench-
Marking
Market
OrientationInvolvement
Culture
Re-
Engineering
Creative
Destruction
TQM
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High-Performance Culture
• Based on a solid organizational mission or
purpose
• Embodies shared adaptive values that guide
decisions and business practices
• Encourages individual employee ownership
of both bottom-line results and the
organization’s cultural backbone
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Cultural Leadership
• Articulates a vision that employees
can believe in
⇒ Communicates values
⇒ Values are tied to a clear and
compelling mission, or core purpose
• Heeds the day-to-day activities that
reinforce the cultural vision
⇒ Work procedures and reward
systems match and reinforce the
values
