Organizations and Management

What is an Organization? A collection of people working together to achieve a common purpose. What is an advantage of an organization? Provides goods or services Value must be returned to society, customers need to be satisfied.

Organizations as Systems Organizations are made up of parts that work together to a common goal. Open Systems interact with their environment to transform resources into product outputs. The external environment is an important piece of the “open-systems” view of organization.

Open System Model Customer and client feedback

Organizational Performance Organizations make profit by adding value to inputs. Whatever comes in has to leave more valuable. This allows them to sell the product for more than it cost them. How do we measure performance then?

Organizational Performance Customers provide feedback. -Customer satisfaction/loyalty measurements -Market Share So do employees. -Retention -Career Development -Job satisfaction -Task performance

Organizational Performance Productivity -The quantity and quality of work performance, with resource use considered. Performance Effectiveness and Performance Efficiency are ways of looking at productivity.

Effective and efficient -Goals Achieved -No resources wasted -High productivity Effective but not efficient -Goals achieved -Resources Wasted High Goal Attainment Low Not Effective or efficient -Goals not achieved -Resources Wasted Effective but not efficient -No resources wasted -Goals not achieved Poor Resource Utilization Good

Changing Nature of Organizations Business has changed AND is always changing. These themes are things that are important to keep in mind.

Changing Nature of Organizations Belief in Human Capital - People are everything. Knowledge/experience valued. Demise of “Command and Control” – “Do as I say” is no longer the main way of running businesses. Emphasis on Teamwork – Horizontal focus, not vertical Pre-eminence of Technology – New tech leads to new opportunities

Changing Nature of Organizations Embrace of Networking – With everyone involved in the business. New Workforce expectations – New generation of workers have different attitudes/demands Concern for work-life balance – Keeping work and personal affairs separate Focus on speed – Production and other areas

Changing Nature of Organizations Google Cardboard We are going to be talking again and again, about Total Quality Management (TQM). This is when an organization is committed on every level to meeting customer needs. Everything from manufacturing, customer service, sales, shipping, even human resources.

Study Question 3: Who are managers and what do they do? A manager is a person in an organization who supports and is responsible for the work of others. The people who managers help are the ones whose tasks represent the real work of the organization. Management Fundamentals - Chapter 1 14 14

Study Question 3: Who are managers and what do they do? Levels of management: Top managers — responsible for performance of an organization as a whole or for one of its larger parts. Middle managers — in charge of relatively large departments or divisions. Project managers __ coordinate complex projects with task deadlines. Team leaders or supervisors — in charge of a small work group of non-managerial workers. Management Fundamentals - Chapter 1 15 15

Study Question 3: Who are managers and what do they do? Importance of human resources and managers … “Toxic workplaces” treat employees as costs. High performing organizations treat people as valuable strategic assets. Managers must ensure that people are treated as strategic assets. Management Fundamentals - Chapter 1 16 16

Study Question 3: Who are managers and what do they do? Responsibilities of team leaders: Plan meetings and work schedules. Clarify goals and tasks, and gather ideas for improvement. Appraise performance and counsel team members. Recommend pay raises and new assignments. Recruit, develop, and train team members. Management Fundamentals - Chapter 1 17 17

Study Question 3: Who are managers and what do they do? Responsibilities of team leaders (cont.): Encourage high performance and teamwork. Inform team members about organizational goals and expectations. Inform higher levels of work unit needs and accomplishments. Coordinate with others teams and support the rest of the organization. Management Fundamentals - Chapter 1 18 18

Study Question 3: Who are managers and what do they do? 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. Management Fundamentals - Chapter 1 19 19

Study Question 3: Who are managers and what do they do? Managerial performance and accountability Accountability is the requirement of one person to answer to a higher authority for relevant performance results. Effective managers fulfill performance accountability by helping others to achieve high performance outcomes and experience satisfaction in their work. Management Fundamentals - Chapter 1 20 20

Study Question 3: Who are managers and what do they do? Quality of work life (QWL) An indicator of the 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 Management Fundamentals - Chapter 1 21 21

Study Question 3: Who are managers and what do they do? High performing managers … Build working relationships with others. Help others develop their skills and performance competencies. Foster teamwork. Create a work environment that is performance-driven and provides satisfaction for workers. Management Fundamentals - Chapter 1 22 22

Study Question 3: Who are managers and what do they do? The organization as an upside-down pyramid … Each individual is a value-added worker. A manager’s job is to support workers’ efforts. The best managers are known for helping and supporting. Management Fundamentals - Chapter 1 23 23

Figure 1.3 The organization viewed as an upside-down pyramid. Management Fundamentals - Chapter 1 24

Study Question 4: What is the management process? Management is the process of planning, organizing, leading, and controlling the use of resources to accomplish performance goals. All managers are responsible for the four functions. The functions are carried on continually. Management Fundamentals - Chapter 1 25 25

Figure 1.4 Four functions of management. Management Fundamentals - Chapter 1 26

Study Question 4: What is the management process? Functions of management … 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. Management Fundamentals - Chapter 1 27 27

Study Question 4: What is the management process? Functions of management … 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. Management Fundamentals - Chapter 1 28 28

Study Question 4: What is the management process? Managerial activities and roles … Interpersonal roles Involve interactions with persons inside and outside the work unit. Informational roles Involve giving, receiving, and analyzing of information. Decisional roles Involve using information to make decisions in order to solve problems or address opportunities. Management Fundamentals - Chapter 1 29 29

Figure 1.5 Mintzberg’s 10 managerial roles. Management Fundamentals - Chapter 1 30

Study Question 4: What is the management process? Characteristics of managerial work … Managers work long hours. Managers work at an intense pace. Managers work at fragmented and varied tasks. Managers work with many communication media. Managers work largely through interpersonal relationships. Management Fundamentals - Chapter 1 31 31

Study Question 4: What is the management process? Managerial agendas and networks … Agenda setting 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. Management Fundamentals - Chapter 1 32 32

Management Fundamentals - Chapter 1 Study Question 5: How do you learn the essential managerial skills and competencies? What is a skill? Essential managerial skills Skill — the ability to translate knowledge into action that results in desired performance. Technical skill — the ability to apply a special proficiency or expertise to perform particular tasks. Human skill — the ability to work well in cooperation with others. Conceptual skill — the ability to think critically and analytically to solve complex problems. Management Fundamentals - Chapter 1 33 33

Figure 1.6 Katz’s essential managerial skills. Management Fundamentals - Chapter 1 34

Management Fundamentals - Chapter 1 Study Question 5: How do you learn the essential managerial skills and competencies? Managerial competency … A skill-based capability that contributes to high performance in a management job. Managerial competencies are implicit in: Planning, organizing, leading, and controlling. Informational, interpersonal, and decisional roles. Agenda setting and networking. Management Fundamentals - Chapter 1 35 35

Management Fundamentals - Chapter 1 Study Question 5: How do you learn the essential managerial skills and competencies? Competencies for managerial success: Communication Teamwork Self-management Leadership Critical thinking Professionalism Management Fundamentals - Chapter 1 36 36

Figure 1.7 Understanding Management from Theory to Practice. Management Fundamentals - Chapter 1 37