1. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-1 Chapter 1 What is management?

2. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-2 Learning objectives After studying the chapter, you should be able to: –describe what management is, why management is important, what managers do and how managers utilise organisational resources efficiently and effectively to achieve organisational goals –distinguish between planning, organising, leading and controlling (the four principal managerial functions), and explain how a manager’s ability to handle each one can affect organisational performance –differentiate between three levels of managerial skill, and explain why managers are divided into different departments to perform their tasks more efficiently and effectively

3. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-3 Learning objectives (cont.) –discuss some major changes in management practices today that have occurred as a result of globalisation and the use of advanced information technologies (IT) –discuss the principal challenges managers face in today’s increasingly competitive global environment.

4. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-4 The management challenge ‘Diana Williams and Fernwood Women’s Health Clubs’: How does Diana Williams sustain high-performance management at Fernwood Women’s Health Clubs?

5. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-5 What is management? Management is the planning, organising, leading and controlling of human and other resources to achieve organisational goals effectively and efficiently. Henri Fayol outlined the four managerial functions in his book General Industrial Management (New York: IEEE Press, 1984)

6. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-6 Planning Planning is the process of identifying and selecting appropriate goals and courses of action.

7. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-7 Steps in the planning process 1.Decide which goals to pursue. 2.Decide what courses of action to adopt. 3.Decide how to allocate resources.

8. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-8 Organising Organising is the process of establishing a structure of working relationships in a way that allows organisational members to work together to achieve organisational goals.

9. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-9 Organisational structure Organisational structure is a formal system of task and reporting relationships that coordinates and motivates organisational members.

10. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-10 Leading Leading is articulating a clear vision to follow, and energising and enabling organisational members so they understand the part they play in attaining organisational goals. Leadership involves using power, influence, vision, persuasion and communication skills. The outcome of effective leadership is highly motivated and committed organisational members.

11. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-11 Controlling Controlling is evaluating how well an organisation is achieving its goals and taking action to maintain or improve performance. –The outcome of the control process is the ability to measure performance accurately and regulate efficiency and effectiveness. Case Study: ‘Microsoft has problems controlling and evaluating its employees’

12. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-12 Managers Managers are the people responsible for supervising the use of an organisation’s resources to meet its goals. Resources include people, skills, knowledge, machinery, computers and IT, and financial capital.

13. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-13 Competencies Competencies are specific sets of skills, abilities and experiences that give one manager the ability to perform at a higher level than another manager in a particular organisational setting. A manager needs to know what has to be done and to do it to the required standard within an appropriate timeframe.

14. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-14 Organisational performance Organisational performance is a measure of how efficiently and effectively managers use organisational resources to satisfy customers and achieve goals. Efficiency –A measure of how well or productively resources are used to achieve a goal Effectiveness –A measure of the appropriateness of the goals an organisation is pursuing and the degree to which they are achieved

15. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-15

16. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-16 Building and maintaining competitive advantage Increase efficiency Increase effectiveness Increase quality Increase speed, flexibility and innovation Increase responsiveness to customers

17. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-17

18. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-18 Why study management? Understanding what managers do and how they do it is of central importance to understanding how a society works and how it creates wealth. Studying management helps people deal with their bosses and co-workers. It also opens a path to a well-paying job and a satisfying career.

19. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-19 Management functional areas A department is a group of people who work together and possess similar skills or use the same knowledge, tools or techniques. Examples of departments are: finance marketing human resources production warehousing maintenance sales (each of which have managers)

20. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-20 Types of managers First-line managers –are responsible for day-to-day operations. They supervise people performing activities required to make the good or service. Middle managers –supervise first-line managers. They are responsible for finding the best way to use departmental resources to achieve goals. Top managers –are responsible for the performance of all departments and have cross-departmental responsibility. They establish organisational goals and monitor middle managers.

21. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-21 Levels of management

22. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-22

23. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-23 Managerial functions Managers at all levels in all organisations perform each of the functions of planning, organising, leading and controlling.

24. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-24

25. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-25 Managerial skills Conceptual skills: the ability to analyse and diagnose a situation and distinguish between cause and effect Human skills: the ability to understand, alter, lead and control the behaviour of other individuals and groups Technical skills: the job-specific knowledge and techniques required to perform a functional organisational role; e.g. accounting, marketing, information communication technology (ICT), human resources, welding

26. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-26

27. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-27 Managerial roles and skills Managerial role: the set of specific tasks that a person is expected to perform because of the position he or she holds in the organisation Mintzberg identified three categories of roles: –decisional –informational –interpersonal

28. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-28 Decisional roles Roles associated with methods managers use in planning strategy and utilising resources: –Entrepreneur: deciding which new projects or programs to initiate and to invest resources in –Disturbance handler: managing an unexpected event or crisis –Resource allocator: assigning resources between functions and divisions, setting the budgets/salaries of lower managers –Negotiator: reaching agreements between other managers, unions, customers or shareholders

29. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-29 Informational roles Roles associated with the tasks needed to obtain and transmit information in the process of managing the organisation: –Monitor: analysing information from both the internal and external environment –Disseminator: transmitting information to influence the attitudes and behaviour of employees, colleagues and other stakeholders outside the organisation –Spokesperson: representing the organisation and using information to positively influence the way people, in and out of the organisation, respond to it

30. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-30 Interpersonal roles Roles that managers assume to provide direction and supervision to both employees and the organisation as a whole: –Figurehead: symbolising the organisation’s mission, values and what it is seeking to achieve –Leader: training, counselling, mentoring, setting goals and expectations, initiating change, role modelling, decision making –Liaison: linking and coordinating the activities of people and groups both inside and outside the organisation

31. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-31 Restructuring Restructuring often involves the use of information technology (IT) to downsize an organisation by eliminating the jobs of large numbers of top, middle, or first-line managers and non-managerial employees. Restructuring can have negative effects if changes are not managed properly, e.g. morale loss or excess workload for remaining employees.

32. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-32 Outsourcing Outsourcing is contracting with another company, at times in a low- labour/infrastructure-cost country abroad, to perform an activity the company previously performed itself. It promotes efficiency by reducing costs and allowing an organisation to make better use of its remaining resources.

33. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-33 Empowerment Empowerment is expanding employees’ knowledge, tasks and responsibilities by involving them to various degrees in decision making; seeking their input as to how things may be done; delegating tasks and giving employees responsibility.

34. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-34 Challenges in a global environment –Emergence and growth of global organisations –Building and maintaining competitive advantage –Building and maintaining ethical and socially responsible standards –Staying abreast of and deploying IT, new business models growing out of it and developments in e-commerce

35. . Information and communications technology (ICT) Case Study: ‘CSC Australia: using new technology to improve’ CSC utilises new technology (video conferencing) to improve performance. PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-35

36. . Managing a diverse workforce Case Study: ‘Wheel of misfortune’ (about the management of the Southern Star Observation Wheel, Melbourne, Australia) Case Study: ‘IBM receives award, commended by Sir Bob Geldof’ PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-36

37. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-37 Work–life balance challenge Issues affecting work–life balance: –Increase in working hours –Increase in emotional commitment –Impact on personal life –Workaholism –Disturbing trajectory of work behaviours –Steps to redress working-life trends

38. . Case for discussion: ‘Practising global crisis management’ PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd Management in the media 1-38

39. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-39 Summary 1: Role of managers Managers are responsible for supervising the organisation’s resources for achieving organisational goals. Organisations are collections of people working together to achieve mutual goals. Planning, organising, leading and controlling helps an organisation reach its goals efficiently and effectively. Organisations create goods and services that customers want.

40. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-40 Summary 2: Management functions Planning Organising Leading Controlling...carried out efficiently and effectively.

41. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-41 Summary 3: Levels of managers Typically, there are three levels of managers: –First line –Middle –Senior Roles differ in emphasis and terminology in the range of activities carried out. Managerial hierarchies have been altered by re-structuring, employee empowerment, self- managing teams and IT, in yet further attempts to achieve efficiencies and increased effectiveness.

42. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-42 Summary 4: Manager roles –Figurehead –Leader –Liaison –Monitor –Disseminator –Spokesperson –Entrepreneur –Disturbance handler –Resource allocator –Negotiator According to Mintzberg there are ten managerial roles:

43. . PPTs to accompany Contemporary Management 2e by Waddell, Jones & George © 2011 McGraw-Hill Australia Pty Ltd 1-43 Summary 5: Management challenges –Building competitive advantage through efficiency, quality, speed, flexibility, innovation and responsiveness –Ethical behaviour –Managing diversity –Utilising new technologies and systems –Work–life balance