Week 01

Week 1

Introduction to organisations and management

Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

LEARNING OUTLINE Who are managers?

● •

Explain how manager differ from non-managerial employees.

•

Discuss how to classify managers in organisations.

What is management?

● •

Define management.

•

Contrast efficiency and effectiveness.

•

Explain why efficiency and effectiveness are important to management.

2

L E A R N I N G O U T L I N E (cont’d) ●

What do managers do? •

Describe the four functions of management.

•

Explain Mintzberg’s managerial roles.

•

Describe Katz’s three essential managerial skills and how the importance of these skills changes depending on managerial level.

•

How the manager’s job changing

3

0

Learning Outline (cont’d) The environment

● •

Describe the four components of an organisation’s specific environment.

•

Describe the six factors in an organisation’s general environment.

•

Discuss the two dimensions of environmental uncertainty.

•

Identify the most common organisational stakeholders.

•

Explain the four steps of managing external stakeholder relationships.

4

An organisation...

●

Has a Distinct Purpose

●

●

Is Composed of People

Has a Deliberate Structure

5

Who are managers?

●

People who work with and through other people by coordinating and integrating their work activities in order to accomplish organisational goals

6

Classifying managers ●

First-line Managers: Are at the lowest level of management and manage the work of non-managerial employees.

●

Middle Managers: Manage the work of first-line managers.

●

Top Managers: Are responsible for making organisation-wide decisions and establishing plans and goals that affect the entire organisation.

7

Organisational levels

Figure 1.2

8

What is management? The process of coordinating work activities so that they are completed efficiently with and through other people ●

Efficiency “Doing things right” Getting the most output for the least inputs

●

Effectiveness “Doing the right things” Attaining organisational goals

9

Efficiency and effectiveness in management

Figure 1.3

10

What do managers do? Functional Approach ●

Planning Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.

●

Organising Arranging work to accomplish organisational goals.

●

Leading Working with and through people to accomplish goals.

●

Controlling Monitoring, comparing, and correcting the work. 11

Management functions

Figure 1.4

12

Mintzberg’s management roles Interpersonal Interpersonal roles roles Figurehead Figurehead

Leader Leader

Liaison Liaison

Informational Informational roles roles Monitor Monitor

Disseminator Disseminator

Spokesperson Spokesperson

Decisional Decisional roles roles Entrepreneur

Handler Handler

Allocator Allocator

Negotiator Negotiator Table 1.2

13

Skills needed at different management levels

© Copyright 2003 Pearson Education Australia

Figure 1.5

14

14

Conceptual skills ● ● ● ● ● ●

Using information to solve business problems Identifying of opportunities for innovation Recognising problem areas and implementing solutions Selecting critical information from masses of data Understanding of business uses of technology Understanding of organisation’s business model

Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

Table 1.3

15

Communication skills ● ● ● ● ●

Ability to transform ideas into words and actions Credibility among colleagues, peers, and subordinates Listening and asking questions Presentation skills; spoken format Presentation skills; written and/or graphic formats

Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

Table 1.3

16

Effectiveness skills ● ● ● ● ● ● ● ● ●

Contributing to corporate mission/departmental objectives Customer focus Multitasking: working at multiple tasks in parallel Negotiating skills Project management Reviewing operations and implementing improvements Setting and maintaining performance standards internally and externally Setting priorities for attention and activity Time management

Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

Table 1.3

17

Interpersonal skills ● ● ● ● ●

Coaching and mentoring skills Diversity skills: working with diverse people and cultures Networking within the organisation Networking outside the organisation Working in teams; cooperation and commitment

Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

Table 1.3

18

Organisational type Profit or non-profit, all have: ● ● ●

political considerations business constraints motivational issues

19

Importance of managerial roles Small firms Spokesperson

Entrepreneur Figurehead Leader

Disseminator

Hig h

Moderat e

Lo w

Large firms Resource allocator Liaison Monitor Disturbance handler Negotiator

Entrepreneu r Figure 1.8

20

How The Manager’s Job Is Changing Importance of Customers ● ● ●

Customers: the reason that organisations exist Managing customer relationships is the responsibility of all managers and employees. Consistent high quality customer service is essential for survival.

Innovation ● ●

Doing things differently, exploring new territory, and taking risks Managers should encourage employees to be aware of and act on opportunities for innovation.

21

Section 2

Organisations and Management Environment

Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

0

The environment ●

External environment: ❍ Outside institutions or forces that potentially affect an organisation’s performance

●

The external environment is made up of 2 elements:

 Specific environment  General environment

23

The specific environment of the business organisation

The Specific Environment of the Business organisation

0

Suppliers Customers Competitors Pressure Groups

24

The general environment of the business organisation

0

Economic

The General Environment of the Business Organisation

Political/Legal Sociocultural Global Demographic Technological 25

0

The external environment General Environment Suppliers

Customers

The organisation Pressure Groups

Competitors

Specific Environment © Copyright 2003 Pearson Education Australia

Figure 3.2

26

26

0

Defining the external environment ●

External environment ❍

●

The forces and institutions outside the organisation that potentially can affect the organisation’s performance.

Components of the external environment ❍

Specific environment: external forces that have a direct and immediate impact on the organisation.

❍

General environment: broad economic, socio-cultural, political/legal, demographic, technological, and global conditions that may affect the organisation.

27

How the environment affects managers ●

0

Environmental uncertainty ❍

The extent to which managers have knowledge of and are able to predict change their organisation’s external environment is affected by: ■

Complexity of the environment: the number of components in an organisation’s external environment.

■

Degree of change in environmental components: how dynamic or stable the external environment is.

28

0

The environment Environmental uncertainty is the degree of change and complexity in an organisation's environment Two dimensions: 1. Change - dynamic vs. stable environments 

Refers to the degree of change that is unpredictable

2. Complexity - simple vs. complex 

Refers to the number of components in an organisation’s environment and knowledge about these components

29

0

Environmental uncertainty matrix

Degree of complexity Complex Simple

Degree of change Stable

Dynamic

Stable and predictable environment with few components and minimal need for knowledge

Dynamic and unpredictable environment with few components and minimal need for knowledge

Stable and predictable environment with many components and high need for knowledge

Dynamic and unpredictable environment with many components and high need for knowledge

Figure 3.3

30

0

The environment, stakeholders ●

Who are stakeholders? ❍ Any constituencies in the organisation’s external environment that are affected by the organisation’s decisions, actions and policies ● ●

●

include internal and external groups can influence the organisation

Why is stakeholder relationship management important? ●

●

it can affect organisational outcomes, such as improved predictability of changes, more successful innovations, greater trust and flexibility, organisational performance It’s the ‘right’ thing to do

© Copyright 2003 Pearson Education Australia

31

31

0

Stakeholder relationships ●

Stakeholders ❍

●

Any constituencies in the organisation’s external environment that are affected by the organisation’s decisions and actions

Why manage stakeholder relationships? ❍

It can lead to improved organisational performance.

❍

It’s the “right” thing to do given the interdependence of the organisation and its external stakeholders.

32

Managing stakeholder relationships ● ● ● ●

0

Identify the organisation’s external stakeholders. Determine the particular interests and concerns of the external stakeholders. Decide how critical each external stakeholder is to the organisation. Determine how to manage each individual external stakeholder relationship.

33

0

Organisational stakeholders

Figure 3.4

34