1. CHAPTER 1 THE CHALLENGE OF MANAGEMENT
These notes and slides accompany the Fifth Edition (2008) of Bartol, Tien, Matthews and Sharma’s text on Management: A Pacific Rim Focus.
Previous editions of the text can still be useful, as can the abridged version “Management Foundations” now in its second edition. However, it is advisable for students to check with their lecturer, and to obtain the version and edition of the text which is prescribed for their unit of study.
The fifth edition is considerably revised and expanded (at 19 chapters) and it contains more recent case studies and examples.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

2. Lecture outline Overview of management What managers actually do
Managerial knowledge, skills, performance
Managerial job types
Managing in the 21st century
This chapter outline (with slightly more detail) appears on Page 2.
Page 3 has the chapter learning objectives. Students should note that the learning objectives provide useful study revision questions to check their understanding. They are also often used as models for questions in tests and examinations.
Chapter 1 begins with a useful case study (Pages 4-6) on Alan Joyce, CEO of Jetstar Airways, reprinted from CEO Forum Magazine. These kinds of interviews and profiles appear regularly throughout the text. Not only do they provide “real world” examples, they can be useful as examples in assignments or in examination answers.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

3. Management: An overview
Management defined:
“Management is the process of achieving organisational goals through the major functions of planning, organising, leading and controlling.”
Page 7
This definition shows the practice of management to be a continuous activity for the purpose of attaining the goals of the organisation.
The functions of Planning, Organising, Leading and Controlling are those functions necessary for the process of realising organisational goals.
Further discussion can be found on pages 7 and 8.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

4. Organisations Management takes place in organisations:
“Two or more persons engaged in a systematic effort to produce goods or services”
Can be private sector, public sector, charitable and religious sector, or the community sector – all need management.
Page 7.
Students often equate “organisations” with firms, companies or businesses.
They should note that the definition is much broader – it covers small and large entities, and applies to private sector (for profit), public sector (government owned or controlled), not-for-profit (charity, aid, church) organisations and other community groups.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

5. Management Functions Planning Organising Leading Controlling
The process of setting goals and deciding how best to achieve them.
Organising
The process of allocating human and non-human resources so that plans can be carried out successfully.
Leading
The process of influencing others to engage in the work behaviours necessary to reach organisational goals.
Controlling
The process of regulating organisational activities so that actual performance conforms to expected organisational standards and goals.
Pages 7-8. A graphic representation of this appears on Page 8 (Figure 1.1) and in the next slide.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

6. Management Overview Achievement of organisational goals via:
1. Planning
2. Organising
3. Leading
This is a modified version of Figure 1.1 on Page 8, which sets the functions within the external environment and notes that performance of the functions should lead to efficiency and effectiveness of the outputs produced by the organisation.
4. Controlling
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

7. The Management Process
To be successful, the functions of planning,
leading, organising and controlling need to be
linked to:
work agenda…
work methods and roles…
relying upon an organisational pool of
knowledge and management skills, which leads to:
organisational performance.
The contents of this slide are shown graphically in Slide 1-8 which follows.
There are key elements necessary to the successful performance of the four managerial functions. These are the creation and content of a Work Agenda, and Work Methods and Roles. These, along with a Knowledge Base and Key Managerial Skills, allow the manager to achieve organisational goals. These major issues are dealt with separately in the next few slides.
Further discussion can be found on Page 8 and following.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

8. The Management Process
Knowledge Base
& Key
Management Skills
Management
Functions:
Planning
Organising
Leading
Controlling
Work
Agenda
Work
Methods &
Roles
Performance
(goal achievement)
This is Figure 1.2 on Page 9.
It shows the relationships between the main elements to be dealt with in more detail further into the lecture.
When looking at “Performance”, we will look in more detail at the crucial concepts of efficiency and effectiveness.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

9. What managers actually do… work methods
Henry Mintzberg’s study of managers
concluded:
They perform great quantity of work at unrelenting pace.
Work is typically varied, fragmented, brief.
Prefer to deal with current, specific, ad hoc issues.
Professor Henry Mintzberg (now of McGill University in Canada) studied a small number (5) of American CEOs, observing their daily activities. Although the paper referred to in the text was published in 1980, the original research took place about ten years earlier, and was a real breakthrough in management thinking.
Mintzberg’s study showed that the reality of management activity is very different from the popular image of high level managers spending quiet time in their office reading formal reports. The reality appears to be much more unplanned and disjointed. Nevertheless, the four functions of management are still being attended to.
The textbook gives specific examples to back up Mintzberg’s main findings summarised above.
Further discussion can be found on Pages 9 and 10.
Students might do a Google search for “Henry Mintzberg” to see his more recent work – he remains a most significant modern “management guru”.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

10. What managers actually do:
Effective managers are at the centre of a network of contacts.
Prefer verbal communication—especially via phone.
Control of own activities—good information essential for this control.
See Pages 9 and 10 for more detail.
“Networking” is increasingly important to managers in building influence and operating effectively.
Pages 10 and 11 have an interesting text box : “How to build networks”, which students should read.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

11. Mintzberg’s Managerial Roles
Interpersonal
Informational
Decisional
Rather than seeing managers performing a set range of functions, such as we have discussed previously, Mintzberg thought that managers were able to take up various roles, as necessitated by the circumstances.
Mintzberg categorised managers’ various activities into three general kinds of roles (as above) and further sub-divided these into 10 specific roles (dealt with in the next few slides).
These provide insight into what managers actually do during the day, but also give an indication of the kind of skills managers need to carry out their work effectively.
Further discussion can be found on pages 7-9.
Note: in saying that what managers did would depend on the circumstances, Mintzberg is in line with contingency theories of management to be discussed later in the unit.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

12. Interpersonal roles
Figurehead: Symbolic duties - projecting a set of values, communicating an image.
Leader: Builds relationships, communicates, coaches, motivates. Leadership skills commonly lacking in managers.
Liaison role: Maintains a network of contacts outside the work unit
A role is a set of behaviours associated with a particular office or position.
The Interpersonal role grows directly from managerial position authority and involves developing and maintaining positive relationships with significant others.
In the figurehead role, a manager might be responsible for signing legal documents, meeting visiting dignitaries, making a speech when a long-serving employee leaves, etc.
Further discussion can be found on Pages – in particular, the ten roles are set out in Table 1.1 on Page 11.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

13. Informational roles
Monitor: Sifting, sorting, selecting information (to help set the agenda)—phone, meetings, memos, social functions, mail, public gatherings.
Disseminator: Transmitting relevant information to subordinates or others inside the organisation.
Spokesperson: Transmitting information outside the organisation - has to be able to express it, have solid verbal skills—right message at right time.
The Informational role relates to receiving and sending information so that managers can act as their organisational unit’s nerve centre.
Further discussion can be found on pages 6-9.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

14. Decisional roles
Entrepreneur: Ability to identify opportunities and threats—able to do this in diverse situations—work or leisure. Initiator and encourager.
Disturbance handler: Takes corrective action when necessary.
Resource allocator: Distributes staff, time, money, equipment within the organisation according to relative priorities.
The Decisional role involves making major organisational decisions.
Further discussion can be found on Page 11.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

15. Decisional roles (cont’d)
Negotiator: Represents the organisation in major contract and agreement negotiations.
Uses networking skills in this.
Usually has assistants, secretaries, subordinates to help.
Page 11.
On Page 12, the text points out that Mintzberg’s study does not explain WHY managers take on various roles.
Management functions can still provide a guide to what managers SHOULD do to move towards meeting organisational goals.
Kotter’s 1982 study of 15 managers (covered in the next slide) helps in linking managerial roles with managerial functions.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

16. Managerial work agendas
Kotter’s study of managers suggested that managers focus their efforts through work agendas:
“A loosely connected set of tentative goals and tasks that a manager is attempting to accomplish”.
Agendas address immediate and long-term job responsibilities supported by formal organisational plans.
Influenced by
Job demands (MUST do)
Job constraints (CAN do)
Job choices (MIGHT or might not do)
Managerial work agendas are used by managers to organise their activities and direct their efforts. In order to set up these work agendas, managers establish and utilise the extensive networks that Mintzberg identified. This allows managers to accomplish their objectives while engaging in short, seemingly disjointed conversations and activities (an example is given on Page 12).
Further discussion can be found on Pages 12 and 13.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

17. Managerial Knowledge, Skills and Performance
Knowledge base
Managers need a relevant, fairly extensive knowledge base for their particular managerial job. This may be in several areas e.g.:
Knowledge of industry
Knowledge of product or service
Knowledge of market
Knowledge of technology
Knowledge of organisation (policies, personalities)
Managers need a sound knowledge base and key management skills to develop work agendas, act out roles and engage in planning, organising, leading and controlling.
A knowledge base must relate to a particular job and industry to be relevant and allows them to attach appropriate meaning to small bits of information.
Kotter (1982) found that managers could achieve a lot in very limited time, because their actions could be based on very small fragments of information, but supported by their detailed industry knowledge which allowed them to interpret the fragments appropriately.
Further discussion can be found on Pages 13 and 14.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

18. Managerial Knowledge, Skills and Performance
Skills base
Managers also need particular skills in order to function effectively in achieving their objectives. Key skills include:
Technical skills
Human skills
Conceptual skills
A skills base is necessary in order to fulfill various management functions. A skill is the ability to engage in a set of functionally-related behaviours at the desired performance levels.
Technical skills relate to the job or industry itself – skill in accounting, in computer science, in manufacturing, etc.
Human skills (also called “People” or “Soft” skills) relate to working well with and understanding others.
Conceptual skills are intellectual or thinking skills such as being able to “see the big picture” – to see links, relationships, new opportunities.
Further discussion can be found on page 14.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

19. Managerial Knowledge, Skills and Performance
Performance goals
Managers must also be able to function in two key ways:
Effectively
an ability to choose and achieve appropriate goals
Efficiently
an ability to make the best use of resources
Efficiency and effectiveness are two key concepts for management students to grasp.
Students (and managers) frequently do not see that an organisation might be extremely efficient (low waste, prudent with finance, good use of resources) but not be at all effective (not reaching its desired goals).
To grasp this, students need to consider the difference between organisational outputs (which can help in measuring efficiency) and organisational outcomes (which can be harder to measure, but might show effectiveness).
In essence, organisations must be both effective (doing the right things) and efficient (doing things right) to perform well. Managers must be able to distinguish between these forms of performance and carry them out.
N.B. the text uses the term ‘effectiveness’ from here on to refer to both efficiency and effectiveness.
Further discussion can be found on Pages 14 and 15.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

20. Managerial job types: the vertical dimension
Top managers—planning, conceptual skills
Middle managers—mixed skill needs
First line managers/supervisors—leading, technical skills
This is a modified version of Figure 1.3 on Page 15. It takes in some of the information set out in Figure 1.5 on Page 17.
Managerial jobs vary on two important dimensions—vertical and horizontal. The vertical dimension focuses on different hierarchical organisation levels.
Along the vertical dimension, jobs fall into three important categories: first line, middle and top management. Although the same managerial process applies at all levels, the emphasis is different.
Figure 1.4 on Page 17 also relates the different hierarchical levels to the four functions of management. This shows that top managers are more involved in planning, but perhaps surprisingly, are less involved in leading than are front-line or first-line managers (often called supervisors or team leaders)
Further discussion can be found on pages
Operational level staff
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

21. Promoting innovation: The entrepreneur role
Innovation involves a new idea to initiate or improve a process, product or service
Intrapreneurs
Idea champions
Sponsors
Orchestrators
See Pages
Intrapreneurs work within existing organisations, finding and exploiting new opportunities. The textbook distinguishes them from entrepreneurs who often innovate by creating new organisations.
Idea champions can generate or support new ideas but may be low in the organisational hierarchy.
Sponsors are generally middle managers who help ideas get the necessary support.
Orchestrators are usually high level managers who explain the need for innovation and provides the necessary funding and incentives.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

22. Horizontal dimension: Responsibility areas
Functional managers
Specific, technical focus
General managers
Broad, whole of organisation/unit responsibilities
Project managers
Integrative, team focus
Managerial jobs vary on two important dimensions—vertical and horizontal. On the horizontal dimension managerial jobs differ according to the nature of the responsibility area involved. These can be identified as: functional, general and project types.
Functional: a specific organisational area (or function) eg. Accounting, HRM, manufacturing.
General: responsible for a whole organisation or several functional units (Group Manager, Divisional Manager, President).
Project: coordinates specific projects – need good communication and interpersonal skills (discussed further in Lecture 12).
Further discussion can be found on Page 20.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

23. Managing in the twenty-first century
Change and innovation/technology
Diversity: markets, products and staff
Developing a global perspective
Quality (TQM) and reengineering (BPR)
Chapter 8 is devoted to change in more detail.
Here, we note the rapid, sweeping and sometimes unpredictable change process that managers have to deal with.
Diversity is particularly relevant to the composition of the workforce – developing and protecting their human resources is important for organisations, and valuing and encouraging diversity is part of this.
Globalisation will involve more global competition, more international operations, and more integration and involvement in operations even though spread over many countries. This is dealt with in more detail in Chapter18 on International Management.
Total Quality Management (TQM) is based on a philosophy of continuous improvement and reducing variations – this is dealt with in detail in Chapter 16 (the supplement) on Control.
Business Process Reengineering (BPR) involves (usually) radical change based on analysis of business processes (not existing departments or functions). It tries to achieve dramatic improvements in cost, quality. Service or speed, and often involves organisational downsizing.
Further details on Pages 23 and 24.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

24. Managing in the twenty-first century (continued)
Internet applications
Knowledge management
Learning organisations
See Pages 24 and 25.
Internet technology has revolutionised a lot of supply-chain management and procurement. It has also often resulted in lower production costs, and had allowed many organisations (such as manufacturers) to deal with customers direct.
Knowledge management (KM) is about using existing knowledge to create new knowledge. Many organisation have initiated structured KM programs to ensure people are connected and knowledge is shared.
Peter Senge (1990) popularised “The Learning Organisation” during the 1990s as a reaction against bureaucratic organisations. The five disciplines of the learning organisation are personal mastery, mental models, shared vision, team learning and systems thinking. Learning organisations are said to develop a capacity to learn, adapt and change continuously.
Further details on Page 24.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)

25. LECTURE SUMMARY Overview of management
Management functions (PLOC)
What managers actually do (Mintzberg)
Roles: interpersonal, decisional, informational
Work agendas and methods (Kotter)
Efficiency v Effectiveness
Managerial knowledge, skills and performance
Skills: Technical, Human, Conceptual
Management job types
Vertical and horizontal differences in management roles
Managing in the 21st century
Change, innovation, diversity, globalisation, technology, quality and knowledge management.
A more detailed summary of Chapter 1 contents is given on Page 27.
There are two interesting case studies at the end of Chapter 1 which students could use for discussion. Page 25 (and 26) looks at Fremantle Ports and its CEO Kerry Sanderson. The End Of Chapter Case (Page 34) looks briefly at “Cyber city” with Taiwan becoming the worlds biggest wireless internet zone.
Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)