1. Corporate Management: Introduction Dr. Fred Mugambi Mwirigi JKUAT 9/19/20151

2. Introduction Organizations and their environments are increasingly becoming complex Organizations and their environments are increasingly becoming complex The variables that characterize management are rapidly increasing in number The variables that characterize management are rapidly increasing in number These variables are also becoming more complex by the day These variables are also becoming more complex by the day 9/19/20152

3. Introduction Management can be defined as the process of getting things done through other people Management can be defined as the process of getting things done through other people It is the process of realizing organizational objectives through people and other resources It is the process of realizing organizational objectives through people and other resources Managers engage in getting people together to accomplish desired goals and objectives. Managers engage in getting people together to accomplish desired goals and objectives. 9/19/20153

4. The Grand Change We are witnessing a period of corporate transformation characterized by: We are witnessing a period of corporate transformation characterized by: Technological evolution Technological evolution Fluidity of human resource capacity Fluidity of human resource capacity Globalized competition Globalized competition Unbundling of corporate processes Unbundling of corporate processes Redefinition of business products Redefinition of business products Changes in markets and market perceptions Changes in markets and market perceptions 9/19/20154

5. Functions of Management Planning: Planning: Organizing Organizing Commanding Commanding Coordinating Coordinating Motivating Motivating Controlling Controlling 9/19/20155

6. Basic Managerial Functions Organizing Planning ControllingLeading 9/19/20156

7. Some key terms Organization People working together and coordinating their actions to achieve specific goals. Goal/objective A desired future condition that the organization seeks to achieve. Strategy A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals. 9/19/20157

8. Evolution of management thought The scientific management stage The scientific management stage The organizational stage The organizational stage The management process stage The management process stage The general management theory stage The general management theory stage The Information age The Information age 9/19/20158

9. Scientific Management stage : Concerned with : Concerned with : setting work standard setting work standard planning work planning work Experimenting Experimenting maintaining the standards maintaining the standards Management research Management research Co-operation between managers & workers Co-operation between managers & workers 1920’s 9/19/20159

10. Organizational Stage : {1930’s} Concerned with : Concerned with : Organization as a structure Organization as a structure Administration- Fayol’s principles Administration- Fayol’s principles Management’s main task hence, was to ensure proper work performance within the organization structure 9/19/201510

11. Management process stage {1940’s} Setting objectives & goals Setting objectives & goals Formulating policies as guidelines Formulating policies as guidelines Organizing & staffing Organizing & staffing Directing & motivating Directing & motivating 9/19/201511

12. General management theory stage Based on a framework created by previous management concepts Based on a framework created by previous management concepts Affected by : communications & information technology Affected by : communications & information technology 9/19/201512

13. The information age Management characterized by rapid flow of information Management characterized by rapid flow of information Rapid changes in technology Rapid changes in technology Globalized firms Globalized firms Inter-firm dependences Inter-firm dependences 9/19/201513

14. Managing Resources Managers achieve by managing and relating people and other resources Managers achieve by managing and relating people and other resources The main organizational resources are: The main organizational resources are: 1. People 2. Skills 3. Knowledge 4. Information 5. Machinery 6. Financial capital 9/19/201514

15. Levels of Management Figure 1.3 9/19/201515

16. Efficiency Vs Effectiveness Efficiency Efficiency A measure of how well or productively resources are used to achieve a goal. A measure of how well or productively resources are used to achieve a goal. Effectiveness Effectiveness A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved. A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved. Managers seek to achieve both 9/19/201516

17. A Model of Managerial Competencies Teamwork Competency Global Awareness Competency Strategic Action Competency Planning and Administration Competency Self-Management Competency Communication Competency Managerial Effectiveness 9/19/201517

18. Planning Identifying and selecting appropriate goals and courses of action for an organization. Identifying and selecting appropriate goals and courses of action for an organization. The planning function determines how effective and efficient the organization is and determines the strategy of the organization. The planning function determines how effective and efficient the organization is and determines the strategy of the organization. Three Steps in the Planning Process: Three Steps in the Planning Process: Deciding which goals to pursue. Deciding which goals to pursue. Deciding what courses of action to adopt. Deciding what courses of action to adopt. Deciding how to allocate resources. Deciding how to allocate resources. 9/19/201518

19. Levels of Planning 9/19/201519

20. Organizing Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals. Structuring working relationships in a way that allows organizational members to work together to achieve organizational goals. Organizational Structure Organizational Structure A formal system of task and reporting relationships that coordinates and motivates organizational members. A formal system of task and reporting relationships that coordinates and motivates organizational members. Creating organizational structure: Creating organizational structure: Grouping employees into departments according to the tasks performed. Grouping employees into departments according to the tasks performed. Laying out lines of authority and responsibility for organizational members. Laying out lines of authority and responsibility for organizational members. 9/19/201520

21. Leading Articulating a clear vision to follow, and energizing and enabling organizational members so they understand the part they play in attaining organizational goals. Articulating a clear vision to follow, and energizing and enabling organizational members so they understand the part they play in attaining organizational goals. Leadership involves using power, influence, vision, persuasion, and communication skills. Leadership involves using power, influence, vision, persuasion, and communication skills. The outcome of leadership is highly motivated and committed organizational members. The outcome of leadership is highly motivated and committed organizational members. 9/19/201521

22. Controlling Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance. Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance. Monitoring individuals, departments, and the organization to determine if desired performance standards have been reached. Monitoring individuals, departments, and the organization to determine if desired performance standards have been reached. Taking action to increase performance as required. Taking action to increase performance as required. The outcome of control is the ability to measure performance accurately and to regulate the organization for efficiency and effectiveness. The outcome of control is the ability to measure performance accurately and to regulate the organization for efficiency and effectiveness. 9/19/201522

23. Decision Making The process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results. The process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results. Programmed decision involves simple, common problems with predetermined solutions. Programmed decision involves simple, common problems with predetermined solutions. Non-programmed decision involves a complex, unique problem or opportunity with important consequences for the organization. Non-programmed decision involves a complex, unique problem or opportunity with important consequences for the organization. 9/19/201523

24. Decision Making Roles 9/19/201524

25. Decision Making Process 9/19/201525

26. Decisional Roles of Managers Roles associated with methods managers use in planning strategy and utilizing resources: Roles associated with methods managers use in planning strategy and utilizing resources: Entrepreneur—deciding which new projects or programs to initiate and to invest resources in. Entrepreneur—deciding which new projects or programs to initiate and to invest resources in. Disturbance handler—managing an unexpected event or crisis. Disturbance handler—managing an unexpected event or crisis. Resource allocator—assigning resources between functions and divisions, setting the budgets of lower managers. Resource allocator—assigning resources between functions and divisions, setting the budgets of lower managers. Negotiator—reaching agreements between other managers, unions, customers, or shareholders. Negotiator—reaching agreements between other managers, unions, customers, or shareholders. 9/19/201526

27. Informational Roles of Managers Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization: Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization: Monitor—analyzing information from both the internal and external environment. Monitor—analyzing information from both the internal and external environment. Disseminator—transmitting information to influence the attitudes and behavior of employees. Disseminator—transmitting information to influence the attitudes and behavior of employees. Spokesperson—using information to positively influence the way people in and out of the organization respond to it. Spokesperson—using information to positively influence the way people in and out of the organization respond to it. 9/19/201527

28. Interpersonal Roles Roles that managers assume to provide direction and supervision to both employees and the organization as a whole: Roles that managers assume to provide direction and supervision to both employees and the organization as a whole: Figurehead—symbolizing the organization’s mission and what it is seeking to achieve. Figurehead—symbolizing the organization’s mission and what it is seeking to achieve. Leader—training, counseling, and mentoring high employee performance. Leader—training, counseling, and mentoring high employee performance. Liaison—linking and coordinating the activities of people and groups both inside and outside the organization/department. Liaison—linking and coordinating the activities of people and groups both inside and outside the organization/department. 9/19/201528

29. Managerial Skills Conceptual Skills Conceptual Skills The ability to analyze and diagnose a situation and distinguish between cause and effect. The ability to analyze and diagnose a situation and distinguish between cause and effect. Human Skills Human Skills The ability to understand, alter, lead, and control the behavior of other individuals and groups. The ability to understand, alter, lead, and control the behavior of other individuals and groups. Technical Skills Technical Skills The specific knowledge and techniques required to perform an organizational role. The specific knowledge and techniques required to perform an organizational role. 9/19/201529

30. Skill Types Needed by Managerial Level 9/19/201530

31. Management Theories (own reading) Weber: Bureaucratic Model of Management: Chain of Command Weber: Bureaucratic Model of Management: Chain of Command Taylor: Scientific management: time and motion Taylor: Scientific management: time and motion Mayo: Norms powerful control over workers Mayo: Norms powerful control over workers Maslow: Needs Hierarchy Maslow: Needs Hierarchy McGregor: Theory X and Theory Y McGregor: Theory X and Theory Y Hertzberg: Hygiene or Motivation theories Hertzberg: Hygiene or Motivation theories Likert: Human behavior/motivation and leadership style associations. Likert: Human behavior/motivation and leadership style associations. 9/19/201531

32. Thank you 9/19/201532