2. Articulate how the practice of management has evolved
Differentiate among the three pillars of management: strategic positioning, organizational design, and individual leadership
Describe the complementary components of management and leadership and the relative importance of technical, interpersonal, and conceptual, skills at various managerial levels in the organization
Articulate how the practice of management has evolved
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3. Explain the changing perspectives on the purpose of business and how the relationship between the firm and its business environment has changed over time
Describe the stakeholder theory of management and how various stakeholder relationships are managed to enhance overall firm performance
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4. The Challenge of Leadership
Harnessing technological advances
Managing and leading diverse workforces
Responding to change and uncertainty
Competing on a global scale
Operating in a socially responsible manner
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5. Figure 1.1 - The Pillars of Management
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6. Strategy of an Organization
Depends on:
Nature and context of competitive and environmental landscape
Skills and capabilities of the management team
Understanding of contextual landscape depends on firm’s ability to:
Recognize threats and opportunities
Lead and organize resources to effectively compete in the marketplace
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7. Management and Leadership
Working with and through a group of
people to accomplish a desired goal or objective
in an efficient and effective manner
Management
Ability to drive change and innovation through inspiration and motivation
Leadership
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8. Figure 1.3 - The Roles of Leaders versus Managers
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9. Leadership Skills
Differ according to person’s level and responsibilities in the organization
Technical skills are important early in career
More strategic abilities are required as an individual advances in an organization
Managers focus financial reporting, planning, recruiting of talent, and team development
Middle-level managers focus on interpersonal skills ,developing teams, and using conceptual skills
Senior executives set the vision and agenda for the organization as well as oversee strategic execution
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10. Figure 1.4 - Importance and Relevance of Skills by Managerial Level
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11. Different Styles of Leadership
Leaders are:
Extroverted / introverted
Quick and impulsive / cautious
Vain / humble
An effective leader is not someone who uses specific leadership style
But is someone whose style enables him or her to obtain results
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12. Skills and Capabilities
Managers have:
Strategic abilities to recognize a situation
Social skills to know what to do in the situation
Behavioral skills to act
Effective management requires:
Development of broad set of skills
Capabilities needed to act in a variety of situations
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13. Figure 1.5 - From Big Picture Strategy to Individual Action
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14. Changing Perspectives of Management
Bureaucratic organization structure
Proposed by Max Weber
A clear differentiation of tasks and responsibilities
Coordination through strict hierarchy of authority and decision rights
Standardization of rules and procedures
Vertical separation of planning and execution
Plans are made in the upper ranks of an organization and executed in the lower ranks
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15. Theories of Management
A focus on how jobs, work, and incentive schemes could be designed to improve productivity using industrial engineering methods
Scientific management
The belief that organizations must be understood as systems of interdependent human beings who share a common interest in the survival and effective functioning of the firm
Human relations movement
A view of the firm where effective organizational structure is based on fit or alignment between the organization and various aspects in its environment
Contingent view
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16. Figure 1.6 - Major Historical Events in the Study of Organizations
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17. Changing Perspectives on the Purpose of Business
Business environment: The combination of all contextual forces and elements in the external and internal environment of a firm
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18. Figure 1.7 - Changing Perceptions of the Business Environment
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19. Changing Perspectives on the Purpose of Business
A business framework where the firm is seen as a mechanism for converting raw materials into products to sell to customers
Managerial view
A business framework where the job of top managers is to produce the highest possible stock market valuation of the firm’s assets
Shareholder view
A business framework that attempts to organize and analyze multiple groups that interact with the firm
Stakeholder view
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20. Figure 1.8 - Stakeholder View of the Firm
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21. Figure 1.9 - Stakeholder Mapping Process
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22. Example of Stakeholder Mapping Process
Environmental Protection Agency (EPA)
Government
Reducing carbon emissions
Health of all affected individuals
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23. Stakeholder Management Processes
Senior leaders of a corporation meet with business unit managers to review progress toward specific goals
Strategic review process
A tool that managers use to scan the business horizon for key events and trends that will affect the business in the future
Environmental scanning
Forecasting the likely result that might occur when several events and stakeholders are linked together
Scenario building
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24. Predicting Stakeholder Responses and Activities
The systematic assessment of the external environment
to prepare for a possible range of alternative futures
for the organization
Contingency planning
A tool where key variables are monitored and modeled to help predict a change that might occur in environment
Trend analysis
The ability to understand the impact of environmental factors on a firm and the ability to understand how to influence those same factors
Contextual intelligence
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25. Figure 1.10 - Building Contextual Intelligence
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26. Figure 1.11 - How Contextual Forces Impact Uncertainty
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27. KEY TERMS
Bureaucratic organization structure Business environment Contextual intelligence Contingency planning Contingent view Environmental scanning Human relations movement Leadership
Management Managerial view Scenario building Scientific management Shareholder view Stakeholder view Strategic review process Trend analysis
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