New Era of ManagementR I C H A R D L . D A F T
Managing in Turbulent TimesCHAPTER 1
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Learning Objectives
Describe the four management functions and the type of management activity associated with each.
Explain the difference between efficiency and effectiveness and their importance for organizational performance.
Describe management types and the horizontal and vertical differences between them.
Describe conceptual, human, and technical skills and their relevance for managers and employees.
Define 10 roles that managers perform in organization.
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Learning Objectives (contd.)
Understand the personal challenges involved in becoming a new manager in an organization in today’s world.
Discuss the management competencies needed to deal with today’s turbulent environment, including issues such as diversity, globalization, and rapid changes.
Explain the leadership skills needed for effective crisis management.
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The Nature of Management
Managers have to cope with diverse and far-reaching challenges
1. To keep pace with ever-advancing technology
2. To find ways to incorporate the Internet and e-business into their strategies and business model
3. Strive to remain competitive in a dynamic and far reaching world
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What Do Managers Have in Common?
They get things done through their organization.
They create the systems, conditions and environment that enable organizations to survive and thrive beyond the tenure of any specific supervisor or manager.
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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
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Functions of Management
Planning
Leading
Controlling Organizing
Use influence to motivate employees
Select goals and ways to attain
them
Assign responsibility for task
accomplishment
Monitor activities and make corrections
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The Process of Management
Planning
Leading
Resources
Controlling Organizing
Performance
•Human
•Financial
•Raw Materials
•Technological
•Information
•Attain goals
•Products
•Services
•Efficiency
•Effectiveness
Use influence to motivate employees
Select goals and ways to attain
them
Assign responsibility for task
accomplishment
Monitor activities and make
corrections
Exhibit 1.1
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Planning Function
Definition– Defines goals for future organizational
performance– Decides tasks and use of resources needed
Corporate Examples– Planning – AOL Time Warner – The Lord of
the Rings – Lack of planning – Merry-Go-Round
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Organizing Function
Definition– Follows planning– Reflects how organization tries to accomplish plan– Involves assignment of
tasks into departments authority and allocation of resources across organization
Corporate Examples - Structural reorganizations– IBM, the Catholic Church, Microsoft, Motorola, the FBI
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Leading Function
Definition– The use of influence to motivate
employees to achieve the organization’s goals.
Corporate Examples – Michael Dell, Meg Whitman of eBay, Cara Kakuda of Nextel
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Controlling Function
Definition● Monitoring employees’ activities
● Determining whether the organization is on target toward its goals
● Making corrections as necessary
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Controlling Function
New 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 Information can lead to Organizational Failure
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Organizational Performance
Attainment of organizational goals in an efficient and effective manner
2nd half of definition of managementThe Process of Management
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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 – organization’s ability to attain its goals by using resources in an efficient and effective manner
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Management Skills
Exhibit 1.2
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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
When skills Fail
Experiential Exercise: Management Aptitude Questionnaire
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Management Types - Vertical
Managerial Levels in the Organizational Hierarchy
Managerial Levels in the Organizational Hierarchy
Exhibit 1.3
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Management Types - Horizontal
Functional Managers – Responsible for a department that performs
a single functional task and – Has employees with similar training and
skills
General Managers– Responsible for several departments that
perform different functions
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Managerial Types - Horizontal
Functional Managers– Advertising– Sales– Finance– Human Resources– Manufacturing– Accounting
General Managers– Self-contained division
such as a Macy’s department store
– Project managers have general management responsibility as they coordinate people across several departments
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What is it like to be a Manager?
Manager Activities– Multitasking Fragmentation, Variety, Brevity
– Life on Speed Dial
Manager’s Role– Set of expectations for one’s behavior – Diverse activities --10 roles
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Making the Leap From Individual Performer to Manager
Exhibit 1.4
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Ten Manager Roles
Category Role
Informational Monitor
Disseminator
Spokesperson
Interpersonal Figurehead
Leader
Liaison
Decisional Entrepreneur
Disturbance handler
Resource allocator
negotiator
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Hierarchical Levels
Exhibit 1.6
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Managing in Small Businesses and Nonprofit Organizations
Role Differences
Source of Financial Resources
Unconventional Bottomline
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Management and the New Workplace
Exhibit 1.7
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Management and the New Workplace
Forces on organizations New Management Competencies
– 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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