Chapter 1 - cchristopherlee

By C. Christopher Lee, Ph.D.
4 major functions in management (Daft, 2013):
 Planning
 Organizing
 Leading
 Controlling
Planning = setting a goal(s); formulating strategies to
accomplish the goal(s)
Organizing = getting resources (people, money,
equipment, etc.), allocating the resources to
accomplish the goal(s)
Leading = leadership; motivating, engaging, inspiring
people to work hard, become more productive
Controlling = performance evaluation; improving the
whole organization
Effectiveness: achieving goal; goal-oriented
Efficiency: productivity; output/input
Profitability: bottom-line
Efficiency is closer to the profitability than
effectiveness; that’s why biz org cares about
efficiency more than effectiveness.
Non-profit org (= charity, university, high school,
Red Cross, etc.) may value effectiveness more
than efficiency.
Most time, efficiency and effectiveness go
along, but not always. Some organization may
be effective but not efficient, vice versa.
Performing the four functions (planning,
organizing, leading, controlling) effectively
and efficiently
 Exam:
Part 1: Textbook review
True/false, multiple choice
Randomly selected from the test bank
Part 2: Class discussion
Short essay questions from lecture, handouts
Why Innovative Management Matters
• Innovation is the new imperative.
• Organizations cannot survive long-term without
• Companies like Facebook are always investing in
new ideas.
• Innovation should be part of products, processes,
people, and values.
• Case in point: IBM – changing from HW/SW to
The Definition of Management
Management is the attainment of organizational
goals in an effective and efficient manner through
planning, organizing, leading, and controlling
organizational resources:
 Managers get things done through the organization.
 Managers create right systems and environment.
 Organizations need good managers.
• Identifying goals for future organizational
• Deciding on the tasks and use of resources
needed to be in the future  Action Plan
• Setting a goal  Measurable goal
• Formulating strategies to achieve the goal
• DQ: What is the strategy?
– Plan/way to create an opportunity to gain the
competitive advantage, in order to achieve the goal
• Typically follows planning.
• Reflects how the organization tries to accomplish
the plan
• Assign tasks
• Group tasks into departments
• Delegate authority
• Allocate resources across the organization
• Hiring right people to right task, & terminating
Leading - Leadership
• Use of influence to motivate employees to
achieve organizational goals
• Create a shared culture and values
• Communicate goals to people throughout the
• Infuse employees with the desire to perform at a
high level  Inspiring employees
• Monitor employees’ activities
• Determine whether the organization is on target
toward its goals
• Make corrections as necessary
• Evaluate the performance
• Help improve the performance  Good
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.
What Do Managers Do? (Murray, 2010)
The Process of Management
Organizational Performance
• An organization = a social entity that is goal directed
and deliberately structured
• Organizational effectiveness – providing a product or
service that customers value  achieving an goal
• Organizational efficiency refers to the amount of
resources used to achieve an organizational goal;
≈ Productivity = Output / Input
• High Performance – The ability to attain its goals by
using resources efficiently & effectively
Efficiency & Profitability
Management Skills
• Three categories of skills: (1) conceptual, (2)
human, (3) technical
• The degree of the skills may vary, but all
managers must possess the skills
• The application of management skills change as
managers move up the hierarchy
Relationship of Skills to Management
3 Kinds of Managers
1. Supervisor (first line manager,
operational manager)
2. Manager (middle manager, Director)
3. Executive (top management, VP,
President, CEO)
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.
When Skills Fail
• Missteps and unethical behavior have been in the
• During turbulent times, managers must apply their
• Common management failures:
Not listening to customers
Misinterpreting signals from marketplace
Not building teams
Inability to execute strategies
Failure to comprehend and adapt to change
Poor communication (#1 reason), and interpersonal
Top Causes of Manager Failure
(Logenecker, Neubert & Fink, 2007)
Management Types: Vertical Differences
• Top managers are responsible for the entire
organization – CEO, President; executives
• Middle managers are responsible for business
units; directors
• Project managers: Responsible for
misinterpreting signals
• First-line managers (supervisors) are
responsible for production of goods and services
Management Types: Horizontal Differences
• Functional Managers are responsible for
departments that perform specific tasks
• General Managers are responsible for several
Management Levels (Bonoma & Lawler, 1988)
Making The Leap: Becoming
A New Manager
• Organizations often promote star performers to
• Becoming a manager is a transformation
– Move from being a doer to a coordinator
• Many new managers expect more freedom to
make changes  Not happens all the time.
• Successful managers build teams and networks
• Many make the transformation “trial by fire”
• DQ: Why doesn’t a star QB always become a
great coach?
From Individual Performer to Manager
(Hill, 2002)
Do You Really Want to Be A Manager?
 The increased workload
 The challenge of supervising former peers
 The headache of responsibility for other people
 Being caught in the middle
  Make more money
  Creating opportunity to make change/difference
  Respect, honor
Manager Activities
Adventures in multitasking
– Activity characterized by variety, fragmentation, and
– Less than nine minutes on most activities
– Managers shift gears quickly
– Truly Professional!
Life on speed dial
– Work at unrelenting pace
– Interrupted by disturbances
– Always working (catching up)
Manager Roles
• A role is a set of expectations for a manager’s
• Every role undertaken by a manager accomplishes
the 4 functions of: Planning, Organizing, Leading,
• Manager roles are important to understand, but
they are not discrete activities.
• Management can’t be practiced as independent
• Managers need time to plan and think
Ten Manager Roles
 Monitor
 Disseminator
 Spokesperson
 Entrepreneur
 Disturbance
 Figurehead
 Resource
 Leader
 Negotiator
 Liaison
Hierarchical Levels and Importance of Roles
[Krout, Pedigo, McKenna, & Dunnette, 1989]
Managing in Small Business and
Nonprofit Organizations
Small businesses are growing
– Inadequate management skills is a threat.
– The roles for small business managers differ.
– Entrepreneurs must promote the business.
Nonprofits need management talent
– Apply the four functions of management to make
social impact.
– More focus on costs.
– Need to measure intangibles like “improving
public health.”
Innovative Management for
the New Workplace
• Rapid environmental shifts:
– Technology
– Globalization
– Shifting social values
• In the new workplace, work is free-flowing and flexible
at flatter structures.
• Success depends on innovation and continuous
Transition to a New Workplace
State-of-the-Art MGMT Competencies for Today’s World
New Management Competencies
• Collaboration across functions, levels,
customers, and companies
• Experimentation and learning are key values
• Knowledge and information sharing
More challenges and changes are on the horizon!
This is an exciting time in management.