1. Management In Organisations

2. Module Summary TheOrganisationChangeEthicsCulture LegalisationEconomyInternationalIssues

3. Segment Aim To enable the manager to understand The purpose of organisations and The role of the manager within them

4. Segment Learning Outcomes : Upon completion of this segment Learners will be able to : State the purpose of organisations Achieve organisational objectives Fulfil stakeholder needs Identify various organisational structures Identify levels of managerial responsibility

5. Learning Outcomes cont: Identify Key management roles Explain different management styles Recognise the difference between management and leadership

6. “An organisation is a social arrangement for achieving controlled performance in the pursuit of collective goals.” Huczynski A, Buchanan D – Organizational Behaviour

7. The Nature Of Organisations Functional Achieve objectives Provide satisfaction for stakeholders

8. Organisation Types Formal Organisation Informal Organisation

9. Characteristics Of a Formal Organisation Deliberately planned and created Co-ordinates activities Hierarchically structured Stated objectives Specified tasks Defined authority & responsibility

10. Characteristics Of an Informal Organisation Flexible, loose structure Relationships are not defined Membership is spontaneous

11. Common Organisational Factors Interactions & Efforts of PEOPLE In order to achieve OBJECTIVES Co-coordinated through STRUCTURE Directed & Guided via MANAGEMENT FormalOrganisationsRequire InformalOrganisationsRequire

12. Organisational Purpose Why do We exist? How will We look In the Future? How Will we Behave? PURPOSE VISION VALUES VISION VALUES

13. The Statement Of Purpose should: State who were are State who were are Who our customers are Who our customers are What we do for them What we do for them

14. The statement Of Purpose needs to be : Inspirational but not unrealistic Have a broad account of all activities Focused on customer benefits not practicalities

15. Mission Statements Need to be based on strategic intent Need to be based on nature Need to be based on value Need to be believed

16. Think Strategically: How will expectations develop over the next five to ten years? How will our organisation evolve? How will the customer base develop? What benefits will we be able to offer?

17. “Stakeholders are those individuals or groups who depend on the organisation to fulfil their own goals and on whom in turn, the organisation depends.” G Johnson & K Scholes – Exploring Corporate Strategy Fifth Edition

18. Influence On Organisational Purpose Who should The organisation Serve? Which purposes Should be Prioritised? OrganisationalPurposes Whom does The organisation Serve? WhichPurposes Are priority WHY? Corporate Governance Business Ethics Stakeholders Cultural Context

19. Whom does the Organisation serve? What are their objectives? How much power do they have ? How much interest do they have?

20. Identifying Stakeholders How interested are your stakeholders in impressing their objectives onto the organisation? Do they have the means to do this ?

21. Stakeholder Mapping Level Of Interest Power Low High Low High A Minimal effort B Keep informed CKeepSatisfied D Key Players

22. Stakeholder Mapping can be an aid to: Matching stakeholder objectives to the organisations purpose? Outline where stakeholders need to be repositioned Who to educate Who to persuade Who to assist & encourage

23. “To the manager his organisation is unique ;but only by comparing the experience of other organisations can he learn much about it.” Perrow C, Organisational Analysis A sociological view

24. Why do organisations need a structure? Need to organise resource Clarify activities Facilitate decision making Process information Central Control Standardise & specialise

25. Organisation Charts Outline the organisational structure Division of work Activity groups Authority levels Formal relationships

26. Functional Organisation Chart

27. Matrix Structure Is a combination of : Functional departments with a stable base for specialised activities Units that integrate various activities of different departments on a project,programme basis.

28. An Example Matrix Structure ProjectManager ProjectManager Research&Development Purchasing Production ManagingDirector

29. The Managers Role within a functional structure Based on a management team approach Control Of a specific function Co-ordination of a specific function Report to the top tier of management

30. Advantages Of a Functional Structure Less managers are required Effective use of personnel Jobs are clearly defined Groups have similar interests The natural flow of information is vertical Communication lines are short

31. Limitations Of A Functional Structure The structure may inhibit change Unable to diversify Senior managers do not see the bigger picture Vertical lines of authority restrict Become out of date quickly

32. The Managers Role in a Matrix Structure Will be varied Will offer greater role flexibility Can provide the basis for development of new skills More issues with co-ordination

33. Limitations Of A Matrix Organisation Chart Duplication It can take longer to make decisions Levels of responsibility may be unclear Lack of clarity Poor motivation

34. Advantages Of a Matrix Structure The overall health of the company is intact Information flows laterally Managing is more informally based Mangers participate more

35. Matrix Uses Manage Change Facilitating the use of bank resource New Project Implementation Sharing & proposing between departments

36. “ Management is mental (thinking,intuiting,feeling) work performed by other people in an organisational context.” Kast F.E and Rosenzweig J.E 1985 Organisation & Management.McGraw -Hill

37. What is Management Theory? An attempt to look at issues related to: The organisation Structure People

38. Why is the Theory Important ? What the leading writers have to say is important Establish Theory/Practice Link An understanding of current thinking Knowledge of managerial history can help explain some of the practice Many earlier ideas are still important

39. Theorists Viewpoints ClassicalHumanRelations SystemsContingency Focus On Purpose Formal structure Technical Requirements Common Principles FredrickTaylor Social Factors Leadership Informal Organisation Behaviour IntegratedApproachSocio-technicalsystem No One best Fit Success of the Organisation due To situational Variables EltonMayo Trist Porter Burns & Stalker

40. Managerial Attributes Technical Competence Social Skills Human Skills Conceptual Ability

41. Technical Competence Application of specific knowledge Skills led More of use at an operational level

42. Social/Human Skills Interpersonal relationships The exercise of judgement Secure effective use of human resource Flexibility Provides direction Co-coordinated effort

43. Conceptual Ability Required to understand a complex system Environmental influences Involves decision making Relate to the organisations aims

44. The Managers Role Is Influenced by: The nature of the organisation The structure Activities & Tasks Technology People The level the manager is at

45. Managerial Roles Based around : Formal Authority & status Interpersonal roles Informational roles Decisional roles

46. The Managers Role FormalAuthorityStatus MonitorSpokespersonDisseminator FigureheadLiaisonLeader EntrepreneurDisturbanceHandler Resource Allocator Negotiator

47. Organisational Relationships SeniorManager MiddleManager Staff

48. Formal Relationships Formal Relationships Depend on the pattern of responsibility Line relationship Functional relationship Staff relationship

49. Informal Relationships Lateral Relationships After work groupings Shared interest Common ground Maintain co-ordination

50. Planning Examine the future What needs to be achieved Develop a plan of action

51. Organising Provide the resource Material Human Build the structure Carry out the activity

52. Motivating Maintain Activity Encourage Innovate

53. Co-coordinating Unify Harmonise effort Harmonise activities

54. Control Verify Ensure that all occurs in line with plan Establish principles

55. “ Management style can be as important as management competence.The movement towards flatter organisational structures,flexible working places greater emphasis on integrating rather than controlling.” Mullins L – Management & Organisational behaviour

56. Managers Responsibility Achieve results through people Involves effective use of human resource Style of management is likely to be pre- disposed in reference to : People Human nature Work

57. Theory X Assumptions Average person is lazy Does not like work People must be coerced,controlled,directed Threatened with punishment

58. The Theory X Principle Direction and control through a centralised principle of organisation and the exercise of authority

59. Theory Y Assumptions Work is natural People exercise self direction,self control The average worker will accept & seek responsibility People have the capacity for creativity Motivation occurs with affiliation

60. Principles Of Theory Y The integration of individual and organisational aims and objectives

61. Other Managerial Styles Japanese Theory Z management The Managerial Grid

62. Japanese Theory Z Long term employment Implicit informal control mechanisms Explicit formal measures Participative decision making Collative decision making Individual ultimate responsibility Broad concern for welfare

63. The Managerial Grid Based upon : Concern for production Concern for people

64. The Use Of Managerial Style Mangers switch from one style to another dependant on the situation Managers tend to have a dominant style Also have a back-up style when one does not work

65. All Managerial Styles Should be based on: Consideration Respect Trust Recognition Involvement Fair & Equitable treatment

66. Influences On Managerial Style Organisation Values Personal History Chance

67. Leadership & Management Not all managers are leaders Leadership is more generic Can be interrelated

68. Managers Tend to be passive Co-ordinate & balance in order to compromise Low level of emotional involvement Regulators

69. Leaders Tend to be personal about aims Active attitude Create excitement Have empathy Leaders work in but do not belong to Search out opportunities to change

70. Why Is Leadership Important ? Motivation Interpersonal behaviour Communication Effective delegate's Influences organisational performance

71. Leadership & Management Move away from hierarchy has increased the need for effective leadership Style Staff Skills Shared aims

72. Management Sum-up The world of work is changing Management in practice will also have to change Effective leadership is becoming a sought after asset All stakeholders must be given consideration The purpose should be believed.