Chapter 1 What is management? Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Learning objectives After studying the chapter, you should be able to: Describe what management is, why management is important, what managers do and how managers utilise organisational resources efficiently and effectively to achieve organisational goals Distinguish among planning, organising, leading and controlling (the four managerial functions), and explain how managers’ ability to handle each one can affect organisational performance Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Learning objectives (cont.) Differentiate among three levels of management, and understand the responsibilities of managers at different levels in the organisational hierarchy Identify the roles managers perform, the skills they need to execute these roles effectively and the way new information technology is affecting these roles and skills Discuss the principal challenges managers face in today’s increasingly competitive global environment Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Janine Allis – Boost Juice How does Janine Allis pursue high-performance management at Boost Juice? Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

What is management? The planning, organising, leading and controlling of human and other resources to achieve organisational goals effectively and efficiently Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Managers Managers are the people responsible for supervising the use of an organisation’s resources to meet its goals Resources include people, skills, knowledge, machinery, computers and IT, and financial capital Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Organisational performance A measure of how efficiently and effectively managers are using organisational resources to satisfy customers and achieve goals Efficiency A measure of how well or productively resources are used to achieve a goal Effectiveness A measure of the appropriateness of the goals an organisation is pursuing and the degree to which they are achieved Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Why study management? Understanding what managers do and how they do it is of central importance to understanding how a society works and how it creates wealth Helps people deal with their bosses and coworkers Opens a path to a well-paying job and a satisfying career Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Managerial functions Managers at all levels in all organisations perform each of the functions of planning, organising, leading and controlling Henri Fayol outlined the four managerial functions in his book General Industrial Management (New York: IEEE Press, 1984) Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Four functions of management Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Planning Process of identifying and selecting appropriate goals and courses of action Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Steps in the planning process Deciding which goals to pursue Deciding what courses of action to adopt Deciding how to allocate resources Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Organising Process of establishing a structure of working relationships in a way that allows organisational members to work together to achieve organisational goals Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Organisational structure A formal system of task and reporting relationships that coordinates and motivates organisational members Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Leading Articulating a clear vision to follow, and energising and enabling organisational members so they understand the part they play in attaining organisational goals Leadership involves using power, influence, vision, persuasion and communication skills Outcome of leadership is highly motivated and committed organisational members Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Controlling Evaluating how well an organisation is achieving its goals and taking action to maintain or improve performance The outcome of the control process is the ability to measure performance accurately and regulate efficiency and effectiveness Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Types of managers First-line managers Middle managers Top managers Responsible for day-to-day operations. Supervise people performing activities required to make the good or service Middle managers Supervise first-line managers. Responsible for finding the best way to use departmental resources to achieve goals Top managers Responsible for the performance of all departments and have cross-departmental responsibility. Establish organisational goals and monitor middle managers Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Levels of management Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Relative amount of time that managers spend on the four managerial functions Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Management functional areas Department A group of people who work together and possess similar skills or use the same knowledge, tools, or techniques Can include Finance, Marketing, Human Resources, Production, Warehousing, Maintenance, Sales etc., each of which have managers Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Restructuring Often involves the use of information technology (IT) to downsize an organisation by eliminating the jobs of large numbers of top, middle, or first-line managers and non-managerial employees Restructuring can have negative effects if changes are not managed properly, e.g. morale loss, excess workload for remaining employees Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Outsourcing Contracting with another company, at times in a low labour/infrastructure cost country abroad, to perform an activity the company previously performed itself Promotes efficiency by reducing costs and allowing an organisation to make better use of its remaining resources Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Empowerment Expanding employees’ knowledge, tasks and responsibilities by involving them to various degrees in decision making; seeking their input as to how things may be done; delegating tasks and giving employees responsibility Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Self-managed teams Groups of employees with the responsibility for supervising their own actions such that the team can monitor its members and the quality of the work performed Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Managerial roles and skills Managerial role: the set of specific tasks that a person is expected to perform because of the position he or she holds in the organisation Mintzberg identified three categories of roles Decisional Informational Interpersonal Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Decisional roles Roles associated with methods managers use in planning strategy and utilising resources Entrepreneur: deciding which new projects or programs to initiate and to invest resources in Disturbance handler: managing an unexpected event or crisis Resource allocator: assigning resources between functions and divisions, setting the budgets/salaries of lower managers Negotiator: reaching agreements between other managers, unions, customers or shareholders Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Informational roles Roles associated with the tasks needed to obtain and transmit information in the process of managing the organisation Monitor: analysing information from both the internal and external environment Disseminator: transmitting information to influence the attitudes and behaviour of employees, colleagues and other stakeholders outside the organisation Spokesperson: representing the organisation and using information to positively influence the way people in and out of the organisation respond to it Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Interpersonal roles Roles that managers assume to provide direction and supervision to both employees and the organisation as a whole. Figurehead: symbolising the organisation’s mission, values and what it is seeking to achieve Leader: training, counselling, mentoring, setting goals and expectations, initiating change, role modelling, decision making Liaison: linking and coordinating the activities of people and groups both inside and outside the organisation Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Being a manager High variety Fragmentation Managerial problems Brevity Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Managerial skills Conceptual skills: the ability to analyse and diagnose a situation and distinguish between cause and effect Human skills: the ability to understand, alter, lead and control the behaviour of other individuals and groups Technical skills: the job-specific knowledge and techniques required to perform a functional organisational role, e.g. accounting, marketing, information technology (IT), human resources, welding Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Skill types needed Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Competencies Specific set of skills, abilities and experiences that gives one manager the ability to perform at a higher level than another manager in a particular organisational setting The manager knows what has to be done and can do it to the required standard within an appropriate timeframe Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Challenges for management in a global environment Emergence and growth of global organisations Building and maintaining competitive advantage Building and maintaining ethical and socially responsible standards Managing a diverse workforce Staying abreast of and deploying IT and new business models growing out of it and developments in e-commerce Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Building and maintaining competitive advantage Increasing efficiency Increasing effectiveness Increasing quality Increasing speed, flexibility and innovation Increasing responsiveness to customers Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Building blocks of competitive advantage Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Work–life balance challenge Increase in working hours Increase in emotional commitment Impact on personal life Workaholism Disturbing trajectory of work behaviours Steps to redress working life trends Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Summary 1: Role of managers Managers are responsible for supervising the organisation’s resources for achieving organisational goals Organisations are collections of people working together to achieve mutual goals Planning, organising, leading and controlling helps an organisation reach its goals efficiently and effectively Organisations create goods and services that customers want Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Summary 2: Management functions Planning Organising Leading Controlling Carried out efficiently and effectively Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Summary 3: Levels of managers Typically, three levels first line middle senior Roles differ in emphasis in the range of activities carried out Managerial hierarchies have been altered by re-structuring, employee empowerment, self-managing teams and IT in yet further attempts to achieve efficiencies and increased effectiveness Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Summary 4: Manager roles According to Mintzberg, ten roles Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance handler Resource allocator Negotiator Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas

Summary 5: Management challenges Building competitive advantage through efficiency, quality, speed, flexibility, innovation, responsiveness Ethical behaviour Managing diversity Utilising new technologies and systems Work–life balance Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas