Session 1 Management in Turbulent Times

Learning Objectives
What is management? Organization? What are the skills managers need? What roles do managers perform? What management competencies are needed today? How is leadership viewed today? Describe the general and task environments and the dimensions of each. Explain the strategies managers use to help organizations adapt to an uncertain or turbulent environment. Define corporate culture and give organizational examples.

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Definition of Management
The attainment of organizational goals in an effective and efficient manner through Four functions
planning, organizing, leading, and controlling organizational resources.
Managers use a multitude of skills to perform functions 6/26/2011
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Organizational Performance
Organization - social entity that is goal directed and deliberately structured Effectiveness - degree to which organization achieves a stated goal Efficiency - use of minimal resources (raw materials, money, and people) to produce the desired volume of output Performance organizations ability to attain its goals by using resources in an efficient and effective manner 6/26/2011 4

Organizational Performance
Attainment of organizational goals in an efficient and effective manner

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The Process of Management

Managerial Levels in the Organizational Hierarchy

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Management Skills
Conceptual Skills
Cognitive ability to see the organization as a whole and the relationships among its parts

Human Skills

ability to work with and through other people and to work effectively as a group member

Technical Skills understanding of and proficiency

in the performance of specific tasks

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Management Skills

Exhibit 1.2

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Functions of Management
Planning Select goals and ways to attain them

Controlling Monitor activities and make corrections

Organizing Assign responsibility for task accomplishment

Leading Use influence to motivate employees

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Planning Function
Defines goals for future organizational performance Decides tasks and use of resources needed

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Organizing Function
Follows planning Reflects how organization accomplish plan Involves assignment of:
tasks into departments authority and allocation of resources across organization

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Leading Function

The use of influence to motivate employees to achieve the organizations goals.

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Controlling Function

Monitoring employees activities Determining whether the organization is on target toward its goals Making corrections as necessary

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Controlling Function - Trends

Empowerment and trust of employees = training employees to monitor and correct themselves New information technology provides control without strict top-down constraints Lack of control can lead to organizational failure
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The Leap From Individual Performer to Manager

Exhibit 1.4

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What is it like to be a Manager?

Manager Activities
Adventures in Multitasking Life on Speed Dial

Managers Role
Set of expectations for ones behavior Diverse activities --10 roles
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Ten Manager Roles

Category
Informational

Role
Monitor Disseminator Spokesperson

Interpersonal

Figurehead Leader Liaison

Decisional

Entrepreneur Disturbance handler Resource allocator Negotiator

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Management and the New Workplace

Forces on organizations
Technology Outsourcing Diversity

New Management Competencies

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Dispersed leadership Empowering others Collaborative relationships Team-building skills Learning organization
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Managing During Turbulent Times

Stay Calm Be Visible Put People Before Business Tell the Truth Know When to Get Back to Business

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Organizational Environment
All elements existing outside the boundary of the organization that have the potential to affect the organization

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Organizational Environments

Exhibit 2.1 6/26/2011 21

International Dimension

Portion of the external environment that represents events originating in foreign countries as well as opportunities for Home companies in other countries.

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Technological Dimension
Scientific and technological advances
Specific industries Society at large

Impact
Competition Relationship with Customers Medical advances Nanotechnology advances

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Socio-Cultural Dimension
Demographic characteristics of the general population
Norms Customs Values

Examples:

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Increased globalization/diversity Longer stay in workforce Growing number of single-father households Number of married households decreased
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Economic Dimension

Economic health
Consumer purchasing power Unemployment rate Interest rates

Recent Trends
Frequency of mergers and acquisitions Small business sector vitality

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Legal-Political Dimension
Dimension of the general environment that includes federal, state, and local government regulations and political activities designed to influence company behavior.
Pressure Groups interest group that works within the legal-political framework to influence companies to behave in socially responsible ways.
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Task Environment
Sectors that have a direct working relationship with the organization
Customers Competitors Suppliers Labor Market

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Labor Market Forces

Labor Market Forces Affecting Organizations today
Growing need for computer literate information technology workers Necessity for ongoing investment in human resources recruitment, education, training Effects of international trading blocks, automation, outsourcing, shifting facility locations upon labor dislocations
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External Environment and Uncertainty

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Exhibit 2.3

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Culture

The set of key values, beliefs, understandings, and norms that members of an organization share.

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Levels of Corporate Culture

Culture that can be seen at the surface level

Visible
1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies

Invisible
2. Expressed values 3. Underlying assumptions and deep beliefs, such as people are lazy and cant be trusted
Deeper values and shared understandings held by organization members

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Exhibit 2.5

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Visible Manifestations

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Symbols Stories Heroes Slogans Ceremonies

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Environment and Culture

A big influence on internal corporate culture is the external environment Cultures can vary widely across organizations Organizations within same industry reveal similar cultural characteristics

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Features of Contemporary Management Culture

Strategic Planning

ReEngineering

BenchMarking

Creative Destruction

TQM Involvement Culture

Market Orientation

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High-Performance Culture
Based on a solid organizational mission or purpose Embodies shared adaptive values that guide decisions and business practices Encourages individual employee ownership of both bottom-line results and the organizations cultural backbone
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Combining Culture and Performance

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Exhibit 2.6

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Cultural Leadership
Articulates a vision that employees can believe in
Communicates values Values are tied to a clear and compelling mission, or core purpose

Heeds the day-to-day activities that reinforce the cultural vision

Work procedures and reward systems match and reinforce the values
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