CHAPTER 1 THE CHALLENGE OF MANAGEMENT Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

LECTURE OUTLINE Overview of management What managers actually do Managerial qualities Management job roles 21st century management Page 2 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

OVERVIEW OF MANAGEMENT ‘Management is achievement of organisational goals through the major functions of planning, organising, leading and controlling.’ Page 5 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 & Controlling are those functions necessary for the process of realising organisational goals. Further discussion can be found on pages 5-6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

OVERVIEW OF MANAGEMENT Planning 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 5-6 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

OVERVIEW OF MANAGEMENT Achievement of organisational goals via: 1. Planning 2. Organising 3. Leading Pages 5-6 4. Controlling Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

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. With reliance upon an organisational pool of knowledge and management skills, which leads to: organisational performance. 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. Further discussion can be found on page 6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

THE MANAGEMENT PROCESS Knowledge Base & Key Management Skills Management Functions: Planning Organising Leading Controlling Work Agenda Work Methods & Roles Performance (goal achievement) Page 6 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

WHAT MANAGERS ACTUALLY DO 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. 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. Further discussion can be found on pages 6-7. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

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. Pages 6-7 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

MANAGERIAL ROLES Interpersonal Informational Decisional Mintzberg categorised manager’s various activities into ten roles which can be organised into three general roles. 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. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

INTERPERSONAL ROLE Figureheads: Projecting a set of values, communicating an image. Leader role: Needs to be informed, as well as informing. Leadership skills commonly lacking in managers. Liaison role: Developing channels of communication, especially informal channels with other corporate directors, political connections, media, public figures. The Interpersonal role grows directly from managerial position authority and involves developing and maintaining positive relationships with significant others. Further discussion can be found on pages 6-9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

INFORMATIONAL ROLE Monitor: Sifting, sorting, selecting information (to help set the agenda)—phone, meetings, memos, social functions, mail, public gatherings. Disseminator: The passing of relevant information to subordinates. Spokesperson: 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  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

DECISIONAL ROLE Entrepreneurial: Ability to identify opportunities and threats—able to do this in diverse situations—work or leisure. Disturbance handler: More information available, more likely correct decision is made. Resource allocator: To divisions or departments; managers need to have an understanding of what resources are needed for effective functioning (e.g. budget gamesmanship). The Decisional role involves making major organisational decisions. Further discussion can be found on pages 6-9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

DECISIONAL ROLE Negotiator: Managers need precise and relevant information to facilitate this role. Therefore, the best managers: Place themselves at the centre of a vast network of contacts that are social, political, occupational, organisational, international. Can sift, sort, and select valuable information. Have secretaries who network, who filter and edit information to avoid overload. Pages 7-9 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

MANAGERIAL WORK AGENDAS Kotter’s study of managers suggested that managers focus their efforts through work agendas, i.e.: A loosely connected set of tentative goals and tasks that a manager is attempting to accomplish. Such agendas address immediate and long-term job responsibilities supported by formal organisational plans. 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. Further discussion can be found on pages 9-10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

MANAGERIAL KNOWLEDGE, SKILLS & 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 Knowledge of market Knowledge of technology 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. Further discussion can be found on pages 10-11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

MANAGERIAL KNOWLEDGE, SKILLS & PERFORMANCE Skills base Managers also need particular skills in order to function effectively in achieving their objectives. Key skills include: Technical skills Human relations 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. Further discussion can be found on page 11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

MANAGERIAL KNOWLEDGE, SKILLS & 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 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 page 11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

VERTICAL DIFFERENCES IN MANAGEMENT ROLES Top managers—planning, conceptual skills Middle managers—mixed skill needs First line managers/supervisors—leading, technical skills 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. Further discussion can be found on pages 12-16. Operational level staff Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

HORIZONTAL DIFFERENCES IN MANAGEMENT ROLES 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. Further discussion can be found on page 17. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

MANAGING IN THE 21st CENTURY Change & innovation/technology Diversity: markets, products & staff Globalisation Quality & organisational development Pages 19-22 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

LECTURE SUMMARY Overview of management What managers actually do Management function (PLOC) What managers actually do Roles: interpersonal, decisional, informational, negotiator Work agenda & methods Managerial knowledge, skills & performance Management job types Vertical & horizontal differences in management roles Managing in the 21st century Change, innovation, diversity, globalisation, quality & organisational development Page 25 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin