CHAPTER 1 INTRODUCTION TO MANAGEMENT BOH4M CHAPTER 1 INTRODUCTION TO MANAGEMENT Lajipe Faleyimu

Chapter Overview What are the challenges of working in the new economy What are Organizations like In the New Workplace Organizational Environment – the Makeup and the link Who are managers and what do they do? What is the management process Lajipe Faleyimu

Working Today Organizations are fast changing as well as the nature of work itself Challenges of Working in The New Economy Talent Diversity Globalization Technology Ethics Careers The dynamics of ever-present change extend into the workplace and raise a host of new career challenges. Smart people commit their energies and intellect to continuous learning and personal development. Companies with a future are committed to people. Companies with a future offer inspirational leadership, reward and respect people, and provide supportive work environments. High performing companies gain extraordinary results from people. Lajipe Faleyimu

Organizations In The New Workplace ORGANIZATION – A collection of people working together to achieve a common purpose OPEN SYSTEM – Transforms resource inputs from the environment into product outputs ORGANIZATIONAL PERFORMANCE Productivity Performance effectiveness Performance Efficiency Critical skills for success in the new workplace Mastery Networking Entrepreneurship Love of technology Marketing Passion for renewal Lajipe Faleyimu

Figure 1.1 Organizations as open systems. Lajipe Faleyimu

Organizations In The New Workplace CHANGING NATURE OF ORGANIZATIONS Renewed belief in human capital Demise of command and control Emphasis on teamwork Pre-eminence of Technology Embrace of Networking New workforce expectations Concern for work-life balance Focus on Speed Lajipe Faleyimu

Organizational Environment General Environment – e.g Starbucks Lajipe Faleyimu

Organizational Environment STAKEHOLDERS – persons, groups and institutions directly affected by an organization SPECIFIC ENVIRONMENT – (Task Environment) The people and groups with whom an organization interacts VALUE CREATION - The creation of value for and satisfying needs of stakeholders. Lajipe Faleyimu

Figure 1.4 Multiple stakeholders in the environment of an organization. Lajipe Faleyimu

Organizational Environment COMPETITIVE ADVANTAGE – a core competency that clearly sets an organization apart from competitors and gives it an advantage over them in the marketplace. ENVIRONMETAL UNCERTAINTY- lack of complete information about the environment (fig 1.5) ORGANIZATIONAL EFFECTIVENESS - Sustainable high performance in using resources to accomplish a mission Companies may achieve competitive advantage in many ways, including: Cost efficiency Higher quality Better delivery Greater flexibility Two dimensions of environmental uncertainty: Degree of complexity Rate of change Lajipe Faleyimu

Managers In The New Workplace MANAGER- person who supports, activates and is responsible for the work of others. LEVELS OF MANAGERS (fig 1.6) Top Managers Middle Managers Team Leaders Lajipe Faleyimu

Managers In The New Workplace Types of managers Line managers are responsible for work activities that directly affect organization’s outputs. Staff managers use technical expertise to advise and support the efforts of line workers. Functional managers are responsible for a single area of activity. General managers are responsible for more complex units that include many functional areas. Administrators work in public and nonprofit organizations. Lajipe Faleyimu

Managers In The New Workplace MANAGERIAL PERFORMANCE Accountability – requirement to show performance results to a supervisor Effective Manager – helps others achieve a high performance and satisfaction at work Quality of work life – overall quality of human experiences in the workplace QWL indicators: Fair pay Safe working conditions Opportunities to learn and use new skills Room to grow and progress in a career Protection of individual rights Pride in work itself and in the organization Lajipe Faleyimu

Management Process MANAGEMENT – Process of planning, organizing, leading and controlling the use of resources to accomplish performance goals Planning The process of setting objectives and determining what actions should be taken to accomplish them. Organizing The process of assigning tasks, allocating resources, and arranging the coordinated activities of individuals and groups to implement plans. Leading The process of arousing people’s enthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives. Controlling The process of measuring work performance, comparing results to objectives, and taking corrective action as needed. Lajipe Faleyimu

Figure 1.9 Mintzberg’s 10 Managerial Roles. Lajipe Faleyimu

Management Process Managerial Activities Work long hours Intense pace Fragmented and varied tasks Many communication media Accomplish their work largely through interpersonal relationship Lajipe Faleyimu

Management Process AGENDA SETTING NETWORKING SOCIAL CAPITAL Development of action priorities for one’s job. Include goals and plans that span long and short time frames. Networking Process of building and maintaining positive relationships with people whose help may be needed to implement one’s work agendas. Lajipe Faleyimu

Management Process Essential Managerial Skills LEARNING SKILL Technical Human – Emotional Intelligence Conceptual Learning The change in a behaviour that results from experience Lifelong learning The process of continuously learning from daily experiences and opportunities. Career success depends on real commitment to learning. Not just formal classroom learning. Lajipe Faleyimu

Management Process MANAGERIAL COMPETENCY – skill based capacity for high performance in a management job Communication Teamwork Self-Management Leadership Critical Thinking Professionalism Lajipe Faleyimu

Review: Introduction to Management How is Globalization creating career challenges for today’s graduates Is it acceptable to sacrifice performance efficiency for performance effectiveness If interests of a firm’s owners conflict with that of the community. Who gets preference In what ways could we expect the work of a top manager to differ from that of a team leader Among the various skills and competencies for managerial success, which do you consider the most difficult to develop and why? Lajipe Faleyimu