Corporate Management: Corporate Management: Introduction Introduction

Dr. Fred Mugambi MwirigiDr. Fred Mugambi Mwirigi

JKUATJKUAT

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IntroductionIntroduction Organizations and their Organizations and their

environments are increasingly environments are increasingly becoming complex becoming complex

The variables that characterize The variables that characterize management are rapidly increasing management are rapidly increasing in numberin number

These variables are also becoming These variables are also becoming more complex by the daymore complex by the day

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Introduction Introduction

Management can be defined as the Management can be defined as the process of getting things done through process of getting things done through other people other people

It is the process of realizing It is the process of realizing organizational objectives through people organizational objectives through people and other resourcesand other resources

Managers engage in getting people Managers engage in getting people together to accomplish desired goals and together to accomplish desired goals and objectives.objectives.

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The Grand ChangeThe Grand Change We are witnessing a period of corporate We are witnessing a period of corporate

transformation characterized by:transformation characterized by: Technological evolutionTechnological evolution Fluidity of human resource capacityFluidity 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 Changes in markets and market

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Functions of Management Functions of Management

Planning: Planning: Organizing Organizing CommandingCommanding Coordinating Coordinating MotivatingMotivating ControllingControlling

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Basic Managerial FunctionsBasic Managerial Functions

OrganizingOrganizing

PlanningPlanning

ControllingControlling

LeadingLeading

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Some key terms Some key terms

OrganizationPeople working together and coordinating their actions to achieve specific goals.

Goal/objectiveA desired future condition that the organization seeks to achieve.

StrategyA cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.

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Evolution of management Evolution of management thought thought The scientific management stageThe scientific management stage The organizational stageThe organizational stage The management process stageThe management process stage The general management theory The general management theory

stage stage The Information age The Information age

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Scientific Management Scientific Management stage :stage :

Concerned with : Concerned with : setting work standardsetting work standard planning work planning work ExperimentingExperimenting maintaining the standardsmaintaining the standards Management researchManagement research Co-operation between managers & Co-operation between managers &

workersworkers

1920’s

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Organizational Stage : Organizational Stage : {1930’s}{1930’s}

Concerned with :Concerned with : Organization as a structureOrganization as a structure Administration- Fayol’s principles Administration- Fayol’s principles

Management’s main task hence, Management’s main task hence, was to ensure proper work was to ensure proper work performance within the performance within the organization structure organization structure

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Management process stage Management process stage {1940’s}{1940’s}

Setting objectives & goals Setting objectives & goals Formulating policies as guidelines Formulating policies as guidelines Organizing & staffing Organizing & staffing Directing & motivating Directing & motivating

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General management theory General management theory stage stage

Based on a framework created by Based on a framework created by previous management concepts previous management concepts

Affected by : communications & Affected by : communications & information technology information technology

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The information age The information age

Management characterized by rapid Management characterized by rapid flow of information flow of information

Rapid changes in technologyRapid changes in technology Globalized firms Globalized firms Inter-firm dependences Inter-firm dependences

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Managing Resources Managing Resources

Managers achieve by managing and Managers achieve by managing and relating people and other resources relating people and other resources

The main organizational resources are: The main organizational resources are: 1.1. PeoplePeople2.2. SkillsSkills3.3. KnowledgeKnowledge4.4. InformationInformation5.5. MachineryMachinery6.6. Financial capitalFinancial capital

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Levels of ManagementLevels of Management

Figure 1.304/19/2304/19/23 1515

Efficiency Vs EffectivenessEfficiency Vs Effectiveness

Efficiency Efficiency A measure of how well or productively A measure of how well or productively

resources are used to achieve a goal.resources are used to achieve a goal. EffectivenessEffectiveness

A measure of the appropriateness of the A measure of the appropriateness of the goals an organization is pursuing and goals an organization is pursuing and the degree to which they are achieved.the degree to which they are achieved.

Managers seek to achieve bothManagers seek to achieve both

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A Model of Managerial A Model of Managerial CompetenciesCompetencies

TeamworkCompetencyTeamwork

Competency

GlobalAwareness

Competency

GlobalAwareness

Competency

StrategicAction

Competency

StrategicAction

Competency

Planning andAdministrationCompetency

Planning andAdministrationCompetency

Self-ManagementCompetency

Self-ManagementCompetency

CommunicationCompetency

CommunicationCompetency

ManagerialEffectivenessManagerial

Effectiveness

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Planning Planning

Identifying and selecting appropriate Identifying and selecting appropriate goalsgoals and courses of action for an and courses of action for an organizationorganization.. The planning function determines how The planning function determines how

effective and efficient the organization is and effective and efficient the organization is and determines the determines the strategystrategy of the organization. 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.

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Levels of Planning Levels of Planning

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Organizing Organizing

Structuring Structuring working relationshipsworking relationships in in a way that allows organizational a way that allows organizational members to work together to achieve members to work together to achieve organizational goals.organizational goals.

Organizational StructureOrganizational Structure A A formalformal system of task and reporting system of task and reporting

relationships that coordinates and relationships that coordinates and motivates organizational members.motivates organizational members.

Creating organizational structure:Creating organizational structure: Grouping employees into Grouping employees into departmentsdepartments

according to the tasks performed.according to the tasks performed. Laying out lines of Laying out lines of authorityauthority and and

responsibilityresponsibility for organizational members. for organizational members.

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Leading Leading

Articulating a clear Articulating a clear visionvision to follow, and to follow, and energizingenergizing and enabling organizational and enabling organizational members so they understand the part members so they understand the part they play in attaining organizational goals.they play in attaining organizational goals. Leadership involves using power, influence, Leadership involves using power, influence,

vision, persuasion, and communication skills.vision, persuasion, and communication skills. The outcome of leadership is highly motivated The outcome of leadership is highly motivated

and committed organizational members.and committed organizational members.

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Controlling Controlling

Evaluating how well an organization is Evaluating how well an organization is achieving its goals and taking action to achieving its goals and taking action to maintain or improve performance.maintain or improve performance. MonitoringMonitoring individuals, departments, and individuals, departments, and

the organization to determine if desired the organization to determine if desired performance standards have been reached.performance standards have been reached.

Taking action to increase performance as Taking action to increase performance as required.required.

The outcome of control is the ability to The outcome of control is the ability to measure performance accurately and to measure performance accurately and to regulate the organization for efficiency and regulate the organization for efficiency and effectiveness.effectiveness.

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Decision Making Decision Making

• The process of recognizing a problem or The process of recognizing a problem or opportunity, evaluating alternative opportunity, evaluating alternative solutions, selecting and implementing an solutions, selecting and implementing an alternative, and assessing the results.alternative, and assessing the results.

• Programmed decisionProgrammed decision involves simple, involves simple, common problems with predetermined common problems with predetermined solutions.solutions.

• Non-programmed decisionNon-programmed decision involves a involves a complex, unique problem or opportunity complex, unique problem or opportunity with important consequences for the with important consequences for the organization.organization.

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Decision Making Roles Decision Making Roles

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Decision Making ProcessDecision Making Process

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Decisional Roles of Decisional Roles of Managers Managers

Roles associated with methods managers use Roles associated with methods managers use in planning strategy and utilizing resources:in planning strategy and utilizing resources: EntrepreneurEntrepreneur—deciding which new projects or —deciding which new projects or

programs to initiate and to invest resources in. programs to initiate and to invest resources in. Disturbance handlerDisturbance handler—managing an unexpected —managing an unexpected

event or crisis.event or crisis. Resource allocatorResource allocator—assigning resources —assigning resources

between functions and divisions, setting the between functions and divisions, setting the budgets of lower managers.budgets of lower managers.

NegotiatorNegotiator—reaching agreements between —reaching agreements between other managers, unions, customers, or other managers, unions, customers, or shareholders.shareholders.

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Informational Roles of Informational Roles of ManagersManagers

Roles associated with the tasks needed to Roles associated with the tasks needed to obtain and transmit information in the obtain and transmit information in the process of managing the organization:process of managing the organization: MonitorMonitor—analyzing information from both the —analyzing information from both the

internal and external environment.internal and external environment. DisseminatorDisseminator—transmitting information to —transmitting information to

influence the attitudes and behavior of influence the attitudes and behavior of employees.employees.

SpokespersonSpokesperson—using information to —using information to positively influence the way people in and out positively influence the way people in and out of the organization respond to it.of the organization respond to it.

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Interpersonal RolesInterpersonal Roles

Roles that managers assume to provide Roles that managers assume to provide direction and supervision to both direction and supervision to both employees and the organization as a employees and the organization as a whole:whole: FigureheadFigurehead—symbolizing the organization’s —symbolizing the organization’s

mission and what it is seeking to achieve.mission and what it is seeking to achieve. LeaderLeader—training, counseling, and mentoring —training, counseling, and mentoring

high employee performance.high employee performance. LiaisonLiaison—linking and coordinating the activities —linking and coordinating the activities

of people and groups both inside and outside of people and groups both inside and outside the organization/department.the organization/department.

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Managerial SkillsManagerial Skills Conceptual SkillsConceptual Skills

The ability to analyze and diagnose a The ability to analyze and diagnose a situation and distinguish between cause situation and distinguish between cause and effect.and effect.

Human SkillsHuman Skills The ability to understand, alter, lead, and The ability to understand, alter, lead, and

control the behavior of other individuals control the behavior of other individuals and groups.and groups.

Technical SkillsTechnical Skills The specific knowledge and techniques The specific knowledge and techniques

required to perform an organizational role.required to perform an organizational role.

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Skill Types Needed by Managerial Skill Types Needed by Managerial LevelLevel

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Management Theories (own Management Theories (own reading)reading) Weber: Bureaucratic Model of Management: Weber: Bureaucratic Model of Management:

Chain of CommandChain of Command Taylor: Scientific management: time and Taylor: Scientific management: time and

motionmotion Mayo: Norms powerful control over workersMayo: Norms powerful control over workers Maslow: Needs Hierarchy Maslow: Needs Hierarchy McGregor: Theory X and Theory YMcGregor: Theory X and Theory Y Hertzberg: Hygiene or Motivation theoriesHertzberg: Hygiene or Motivation theories Likert: Human behavior/motivation and Likert: Human behavior/motivation and

leadership style associations. leadership style associations.

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Thank you Thank you

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