1. Chapter 1: Leading Edge Management Understanding Management,12e Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. Icebreaker "Management is doing things right; leadership is doing the right things." — Peter F. Drucker, acclaimed management consultant Reflect on the above statement, either individually or pairing up with another student. Then think through the following questions: Are good managers good leaders? Are good leaders good managers? Think about a situation in which you were a good manager or leader. (Share this story with your student partner.)

3. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (1 of 2) By the end of this chapter, you should be able to: 1.1 Explain five management competencies and the trend toward bosslessness in today’s world. 1.2 Define the four management functions and the type of management activity associated with each. 1.3 Explain the unique characteristics of the manager’s role in nonprofit organizations. 1.4 Describe managers’ appropriate use of power and influence. 1.5 Summarize the historical struggle between managing the “things of production” and the “humanity of production.”

4. Management Competencies for Today’s World 1-1 Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5. Management Competencies for Today’s World (LO 1) Management: Attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources Today’s effective manager is an enabler who helps people do and be their best. Today’s best managers are “future-facing.” Managers employ an empowering leadership style.

6. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Rapid Environmental Shifts (LO 1) Technology (e.g., social media & mobile apps) Move to knowledge/information-based economy Rise of artificial intelligence Global market forces Growing threat of cybercrime Shifting expectations

7. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.1 Management Competencies for Today’s World (LO 1)

8. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Trend Toward Bosslessness (LO 1) Organization design turns management authority and responsibility over to employees. Team spirit and autonomy (the ability of the person to make his or her own decisions) are often leading goals. How and where work gets done has shifted. New technology enables employees to work from locations outside a regular office. Provides greater flexibility as well as increased employee initiative and commitment.

9. The Basic Functions of Management 1-2 Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10. 1.2 The Process of Management (LO 2)

11. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Polling Activity 1 If organizational performance indicates how well a manager is doing their job, is it more important for a manager to focus on efficiency or effectiveness? a.Efficiency is more important. b.Effectiveness is more important. c.Importance of efficiency and effectiveness depends on the manager’s role and goals. d.Efficiency and effectiveness are equally important.

12. What Is a Manager’s Job Really Like? 1-3 Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13. Manager Activities (LO 5) Adventures in multitasking Activity characterized by variety, fragmentation (broken up into different parts), and brevity (concise & shortness) Less than nine minutes on most activities Managers shift gears quickly Life on speed dial Work at unrelenting pace Interrupted constantly Ad hoc meetings (Meetings to address something out of the ordinary that requires immediate attention)

14. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Life on Speed Dial (LO 5) Time management: Using techniques that enable you to get more done in less time and with better results, be more relaxed, and have more time to enjoy your work and your life Learning to manage time effectively is one of the greatest challenges new managers face.

15. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Manager Roles (LO 5) Role: Set of expectations for a manager’s behavior 3 categories of management roles Informational (providing information) Interpersonal (relating to relationships or communication between people) Decisional (Having the power or authority to make decisions) Management roles accomplish 4 functions: Planning Organizing Leading Controlling

16. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.7 Ten Manager Roles (LO 5)

17. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Knowledge Check 1 Which of the following sets of manager roles would be considered decisional roles? a.Spokesperson, leader, and entrepreneur b.Negotiator, figurehead, and liaison c.Disseminator, monitor, and leader d.Disturbance handler, entrepreneur, and resource allocator

18. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Knowledge Check 1: Answer Which of the following sets of manager roles would be considered decisional roles? d.Disturbance handler, entrepreneur, and resource allocator

19. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.8 Leader and Liaison Roles (LO 5) Liaison: communication or cooperation which facilitates a close working relationship between people or organizations

20. Manager and Leader 1-4 Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

21. WHAT IS THE DIFFERENCE BETWEEN LEADING AND MANAGING? Table 14.1 Characteristics of Managers and Leaders. Sources: Adapted from the following sources: P. Lorenzi, “Managing for the Common Good: Prosocial Leadership,” Organizational Dynamics, Vol. 33, No. 3 (2004), p. 286; J. P. Kotter, ”What Leaders Really Do,” Harvard Business Review, December 2001, pp. 85–96; the role of leadership within organizational change is discussed in J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996); managing in the world of complexity is discussed in G. Sargut and R. G. McGrath, “Learning to Live with Complexity,” Harvard Business Review, September 2011, pp. 68–76; M. J. Mauboussin, “Embracing Complexity,” Harvard Business Review, September 2011, pp. 88–92. BEING A MANAGER MEANS...BEING A LEADER MEANS… Planning, organizing, directing, controllingBeing visionary (berwawasan) Executing plans and delivering goods and servicesBeing inspiring, setting the tone, and articulating (pronounce (something) clearly and distinctly) the vision Managing resourcesManaging people Being conscientious (teliti)Being inspirational (charismatic) Acting responsiblyActing decisively Putting customers first—responding to and acting for customersPutting people first—responding to and acting for followers Mistakes can happen when managers don’t appreciate people are the key resource, underlead by treating people like other resources, or fail to be held accountable Mistakes can happen when leaders choose the wrong goal, direction, or inspiration; overlead; or fail to implement the vision Coping with complexity (difficulties) —complex organizations are chaotic without good management Coping with change—organizations need leadership to direct the constant change necessary for survival in today’s dynamic business landscape

22. MANAGERIAL LEADERSHIP: CAN YOU BE BOTH A MANAGER AND A LEADER? Managerial leadership includes: Influencing followers to internalize, Committing to a set of shared goals, and facilitating the group and individual work that is needed to accomplish those goals. Managerial leadership may be demonstrated by managers and also by those who exercise leadership on a daily basis.

23. The Evolution of Management Thinking 1-5 Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

24. Management and Organization (LO 7) Studying management history helps you understand the impact of social forces on organizations. Certain factors affect management practices and perspectives: Social forces Political forces Economic forces

25. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.9 Management Perspectives over Time (LO 7)

26. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.10 Tension Between Historical Forces (LO 7)

27. Classical Perspective 1-9 Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

28. Classical Perspective (LO 8) Emerged during the 19 th and early 20 th centuries during rise of the factory system. Large, complex organizations required new approaches to coordination and control. 4 subfields: Scientific management Bureaucratic organizations Administrative principles Management science

29. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Scientific Management (LO 8) Improve efficiency and labor productivity through scientific methods. Frederick Winslow Taylor proposed that workers “could be retooled like machines.” Management decisions would be based on precise procedures based on study. Henry Gantt developed the Gantt chart, a bar graph that measures planned and completed work. The Gilbreths pioneered time and motion studies to promote efficiency. Frederick Winslow Taylor

30. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.11 Characteristics of Scientific Management (LO 8)

31. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Discussion Activity 3 Do you believe that scientific management characteristics will ever cease to be a part of organizational life, since they are now about 100 years old? Consider: how economic factors influence the use of scientific management practices how political factors influence the use of scientific management practices how social factors influence the use of scientific management practices

32. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Discussion Activity 3 Debrief Do you believe that scientific management characteristics will ever cease to be a part of organizational life, since they are now about 100 years old? Economic factors: Consider the state of the economy, the availability of workers, and the organization’s financial health. Political factors: Consider the levels of regulation and taxation and how they influence organization and management goals. Social factors: Consider the culture and how workers’ rights and needs are currently viewed. This approach to management was powerful and gave companies fundamental new skills for establishing high productivity and effective treatment of employees. Indeed, these management techniques, and other countries, especially Japan, borrowed heavily from American ideas.

33. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bureaucratic Organizations (LO 8) Organization depends on rules and records. Max Weber, a German theorist, introduced the concepts. Manage organizations on impersonal (having no personal reference or connection), rational basis. Managers use power instead of personality to delegate. Although important productivity gains come from this approach, bureaucracy has taken on a negative tone. German theorist

34. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.12 Characteristics of Weberian Bureaucracy (LO 8)

35. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Administrative Principles (LO 8) Focused on the entire organization. Henri Fayol, a major contributor, listed 14 general principles of management: Many still used today: unity of command; division of work; unity of direction; and scalar chain. Identified five functions of management: planning, organizing, commanding, coordinating, and controlling. Charles Clinton Spaulding, another a major contributor, outlined 8 fundamental necessities, including Authority and responsibility; division of labor; adequate manpower; and cooperation and work Henri Fayol Charles Clinton Spaulding

36. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management Science (1 of 2) (LO 8) Also referred to as quantitative perspective Applies mathematics, statistics, and other quantitative techniques to management decision making and problem solving Developed for the military during World War II Enhanced by development of the computer Widely used today

37. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management Science (2 of 2) (LO 8) Subsets of management science Operations research: mathematics model building Operations management: management field specializing in physical production of goods Information technology (IT): focuses on technology and software to aid managers Digital organization: organization that uses technology as primary competitive tool Quants: financial managers who base decisions on complex quantitative analysis

38. Humanistic Perspective 1-10 Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

39. Early Advocates (LO 8) Understand human behaviors, needs, and attitudes in the workplace Contrast to scientific management—importance of people rather than engineering techniques Mary Parker Follett and Chester Barnard Empowerment: facilitating instead of controlling employees Informal organization: cliques (group), informal networks, and social groupings Acceptance theory of authority: people can choose to follow management orders Mary Parker Follett Chester Barnard

40. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Human Relations Movement (LO 8) Effective control comes from within the employee. Hawthorne studies were key contributor. Human relations played key variable in increasing performance. Employees perform better when managers treat them positively. Shaped management practice and research.

41. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Knowledge Check 2 The Hawthorne effect is most likely to be a factor in which of the following examples? a.A study uses more than one experimental group, all of which show different outcomes. b.A study uses more than one control group that exhibit similar outcomes. c.A study involves numerous experimental and control groups, none of which shows consistent data. d.A study involves one experimental group and one control group, but only the control group knows they are being observed.

42. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Knowledge Check 2: Answer The Hawthorne effect is most likely to be a factor in which of the following examples? d.A study involves one experimental group and one control group, but only the control group knows they are being observed.

43. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Human Resources Perspective (LO 8) Satisfied workers produce more work. Allows workers to use their full potential Shifted emphasis to workers’ daily tasks Combined job design and motivation Maslow created a hierarchy of needs. McGregor formulated Theory X and Theory Y about workers’ motivation. Maslow

44. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.13 Theory X and Theory Y (LO 8)

45. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

46. Polling Activity 3 You have an employee who is not performing up to the potential you believe the person showed initially after being hired. As a proponent of Theory Y management, which of the following approaches would you take? a.Wait until the employee’s performance review to discuss the situation in the event it is due to a personal, rather than organizational, matter. b.Call in the employee in to review progress toward previously stated performance goals. c.Indicate to the employee that he/she has been put on probation (tempoh percubaan), according to company policy.

47. Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Behavioral Sciences Approach (LO 8) Scientific methods + sociology, psychology, anthropology, economics, and others to develop theories about human behavior and interaction in an organizational setting. Organization development (OD): set of management techniques that uses behavioral sciences to improve organization’s health and effectiveness. Other strategies based on behavioral sciences include matrix organizations, self-managed teams, corporate culture, and management by wandering around.