Managers and Their Environments By Julius Nursyamsi

Environment Organization Internal environment External environment

The Organization Organization vary in purpose and in technology Organization with differing goals and needs But they and any other organization have one element in common : managers

The Organization (cont’d) It is manager who must coordinate the activities of the entire system (organization) or one of the many subsystem (departments) within the organization

The Organization Environment as a System Human and Nonhuman resources InputProsesOutput Product Service ideas Internal environment External environment

The system concept emphasizes 1. The ultimate survival of the organization depends upon its ability to adapt to the demands of the environment 2. In meeting these demands, the total input-process-output cycle must be the focus of managerial attention

The Internal Environment This section examines the environment inside the organization in which a manager must function It includes discussions of the setting where managers work, the day-to-day activities that utilize much of their time, and some generalized skills necessary to cope with the internal environment

Three Management Levels The operations level The managerial level The strategic level

The Operations Level Any organization that produces products or services has an operations function In the case of a physical product, there is the flow of materials and the supervision of the operations Operations function is at the core of every organization The managerial task here is to develop the best allocation of resources that will produce the desired output

The Managerial Level As an organization increases in size someone must coordinate the activities at the operations level, as well as decide which product or services to produce There problems are the focus of the managerial level

The Managerial Level (cont’d) The managerial task - Managing the operations function - Serving as a liasion between those who produce the product or service and those who use the output A manager must make sure it has the correct materials and also must se that output gets sold or used

The Strategic Level Every organization operates in a broad social The strategic level must make sure the managerial level operates within the bounds of society The strategic level determines the long-range objectives and direction for the organization How organization will interact with its environment

The Strategic Level (cont’d) The organization also may seek to influence its environment througth lobbying efforts, advertising efforts or educational programs aimed at members of society

The level of management The operations level The managerial level The strategic level The environment (internal and external)

Type of Managers and Levels of Management Top management Middle management First-level management Operating employees

Managers and the level of management Top management Middle management First-level management Operating employees The strategic level The managerial level The operations level

The Skiils of Managers Technical skiil Is the ability to use the tools, procedures or techniques of a specialized field Human skiil Is the ability to work with and understand people. To manage people effectively must partcipate effectively with others Conceptual skiil Is the ability to comprehed all avtivities and interests of the organization

Figure The Skills of Managers Conceptual Human Technical Top Management Middle ManagementFirst-level Management

The Roles of Managers Interpersonal roles Informational roles Decisional roles

Interpersonal roles There roles focus on interpersonal relationships The there roles of figurehead, leader and liaison are a result of the manager’s formal authority Manager is able to move into the informational roles which, in turn, lead directly to the decisional roles

Interpersonal roles (cont’d) Figurehead All managerial jobs require some duties that are symbolic or ceremonial in nature Leader The managers involves directing and coordinating the activities of subordinate Liaison The managers involved in interpersonal relationship outside of their area of command

Informational Roles The set of roles establishes the manager as the central focus for receiving and sending non routine information The manager builds a network of interpersonal contacts The contacts aid the manager in gathering and receiving information in the monitor role and transmitting that information in the disseminator role and spokesperson role

Informational Roles (cont’d) Monitor Involves examining the environment in order to gather information, changes, opportunities and problems Disseminator Involves providing important or privileged information to subordinates that they might not ordinarily know about or be able to obtain Spokesperson The managers represents the unit to other people

Decisional roles While developing interpersonal relationships and gathering information are important They serve as the basic inputs to the process of decision making In fact, some people believe these roles are a manager’s most important duties

Decisional roles (cont’d) Entrepreneur The purpose of the entrepreneur role is to bring about changes for the better in the unit Disturbance-handle Managers make decisions or take corrective action in response to pressure that is beyond their control

Decisional roles (cont’d) Resource-allocator Place a managers in the position of deciding who will get what resources, there resource include money, people, time, and equipment Negotiator A managers must bargain with other units and individuals to obtain advantages for his or her unit. The negotiations may be over work, performance, objectives, resources, or other thing influencing the unit

The Roles Of Managers Interpersonal roles Figurehead Leader Liaison Decisional roles Entrepreneur Disturbance Resource allocator Negotiator Informational roles Manitor Disseminator Spokesperson

The External Environment No organization is self-sufficient External environment into two categories : - Direct action components - Indirect action components

Direct Action Components The major direct-action components of a manager’s external environment are the organization’s client whom it must satisfy, its competitors, and the organization and individuals that supply resources.

Direct Action Components Clients For a business organization, customers are critical, and manager contantly must be aware of the present needs and emerging needs of clients. - Customers - Stundents - Patients - Citizens

Direct Action Components Competitors The action of competitors have a direct impact on managers. Most managers must be concerned with two basic types of competitions - Intratype competitor Occurs between institutions engaged in the same basic activity - Intertype competitor Occurs between different types of organizations

Direct Action Components Suppliers Every organization requires input from the environment in the form of raw materials, services, energy, equipment, labor and funds. They use these inputs to produce outputs

Figure Direct Action of the External Environment The managers And the organization Clients -Customers -Students -Patients -Citizens Competitors -Intratype -Intertype Suppliers -Raw materials -Funds -Energy -People

Indirect Action Components The indirect action components of the external environment can effect managers in at leat two ways 1. Outside organizations can have s direct influence on a organization or an indirect influence 2. Certain indirect action component can influence the climate in which the organization must function

Indirect Action Components Technology Economic Political, legal and regulatory Cultural and social International

Direct action and indirect action components of the external environment The manager And the organization Indirect action Direct action

The End