IIUI Lecture -1 International Islamic University Islamabad Introduction to Management Introduction to Organizations and Management Contributed By: Muhammad Adnan Khan E.mail: adnan_comsats@yahoo.com Contact: 0300-9568964 Introduction to Management IIU 1 IIUI Lecture -1 Lecture Out line Introduction Who Are Managers? What Is Management? What Do Managers Do? Management Functions and Processes Management Roles Interpersonal Roles Informational Roles Decisional Roles Management Skills Technical Skills Human Skills Conceptual Skills Managing Systems Managing in Different and Changing Situations What Is an Organization? Why Study Management? The Universality of Management The Reality of Work Rewards and Challenges of Being a Manager Introduction to Management IIU 2 IIUI 1. Lecture -1 INTRODUCTION. The concept of management and managers is introduced in this chapter. Five questions are addressed: A. Who are managers? B. What is management? C. What do managers do? D. What is an organization, and how is the concept of an organization changing? E. Why study management? 2. WHO ARE MANAGERS? A. The changing nature of organizations and work has blurred the clear lines of distinction between managers and nonmanagerial employees. Many workers’ jobs now include managerial activities. Definitions used in the past no longer work. B. How do we define a manager? A manager is an organizational member who works with and through other people by coordinating their work activities in order to accomplish organizational goals. However, keep in mind that managers may have other work duties not related to integrating the work of others. C. Managers can be classified by their level in the organization, particularly for traditionally structured organizations (those shaped like a pyramid). 1. 2. 3. 3. First-line managers are the lowest level of management. They’re often called supervisors. Middle managers include all levels of management between the first-line level and the top level of the organization. Top managers include managers at or near the top of the organization who are responsible for making organizationwide decisions and establishing the plans and goals that affect the entire organization. WHAT IS MANAGEMENT? A. Management refers to the process of coordinating and integrating work activities so that they’re completed efficiently and effectively with and through other people. 1. 2. 3. The process refers to the ongoing functions or primary activities engaged in by managers. Coordinating others’ work activities is what distinguishes a manager’s job from a nonmanagerial one. Efficiency is getting the most output from the least amount of inputs, the goal of which is to minimize resource costs. Introduction to Management IIU 3 IIUI Lecture -1 4. Effectiveness is completing activities so that organizational goals are attained; often described as “doing the right things.” 5. Optimization of resources is alos called management. 4. WHAT DO MANAGERS DO? No two managers’ jobs are alike. But management writers and researchers have developed some specific categorization schemes to describe what managers do. We’re going to look at five categorization schemes: functions and processes, roles, skills, managing systems, and situational analysis. A. Management Functions and Processes. Henri Fayol, a French industrialist from the early part of the 1900s, proposed that managers perform five management functions: POCCC (plan, organize, command, coordinate, control). 1. These functions still provide the basis around which popular management textbooks are organized, but the functions have been condensed to four. a. b. c. d. 2. 3. B. Planning involves the process of defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities. Organizing is the process of determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. Leading includes motivating subordinates, influencing individuals or teams as they work, selecting the most effective communication channel, or dealing in any way with employee behavior issues. Controlling is monitoring activities to ensure that they are being accomplished, comparing performance with previously set goals, and correcting any significant deviations. The reality of managing isn’t quite as simplistic as these descriptions imply. It’s more realistic to describe managers’ functions from the perspective of a process. The management process is the set of ongoing decisions and work activities in which managers engage as they plan, organize, lead, and control. Management Roles. In the late 1960s, Henry Mintzberg conducted a precise study of managers at work. He concluded that managers perform 10 different, but highly interrelated roles. 1. Management roles refer to specific categories of managerial behavior. a. b. c. Introduction to Management IIU Interpersonal roles included figurehead, leadership, and liaison activities. Informational roles included monitoring, disseminating, and spokesperson activities. Decisional roles included those of entrepreneur, disturbance handler, resource allocator, and negotiator. 4 IIUI Lecture -1 2. 3. C. Follow-up studies of Mintzberg’s role categories in different types of organizations and at different managerial levels within organizations have generally supported the notion that managers perform similar roles. However, the more traditional functions have not been invalidated. In fact, the functional approach still represents the most useful way of classifying the manager’s job. Management Skills. Managers need certain skills to perform the varied duties and activities associated with being a manager. 1. Robert L. Katz found through his research in the early 1970s that managers need three essential skills or competencies. a. Technical skills are skills that include knowledge of and proficiency in a certain specialized field. b. Human skills include the ability to work well with other people both individually and in a group. c. Conceptual skills include the ability to think and to conceptualize about abstract and complex situations, to see the organization as a whole, and to understand the relationships among the various subunits, and to visualize how the organization fits into its broader environment. 2. There are 23 skill-building modules found at the back of the textbook. These skills reflect a broad cross section of the management functions. D. Managing Systems. We can also describe what managers do from the perspective of managing systems. 1. A system is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. 2. The two basic types of systems are open and closed. A closed system is one that is not influenced by and does not interact with its environment. An open system is one that dynamically interacts with its environment. 3. Organizations are, by their very nature, open systems. 4. The systems perspective adds to our understanding of what managers do because managers are to ensure that all the interdependent parts of the organization are working together so that the organization’s goals can be achieved. 5. Regardless of the level the manager is on, he or she must ensure that the work activities in the part of the organizational system he or she is responsible for are coordinated and integrated. 6. In addition, the systems view reflects the fact that decisions and actions taken in one organizational area will affect others and vice versa. 7. An important part of a manager’s job is recognizing and understanding the impact of the various external factors. E. Managing in Different and Changing Situations. The final way that we’re going to describe what it is that managers do is from the contingency perspective. Introduction to Management IIU 5 IIUI Lecture -1 1. 2. 3. 4. 5. The contingency perspective, sometimes called the situational approach, is a view that the organization recognizes and responds to situational variables as they arise. Using this perspective, we recognize that managers must “read” and attempt to interpret the situational contingencies facing them before deciding the best way to work with and through others as they coordinate work activities. Some popular contingency variables are shown in the book. The primary value of the contingency approach is that it stress that there are no simplistic or universal rules for managers to follow doing their jobs. WHAT IS AN ORGANIZATION? Organizations need managers. An organization is a deliberate arrangement of people to accomplish some specific purpose. A. Organizations share three common characteristics: (1) each has a distinct purpose; (2) each is composed of people; and (3) each develops some deliberate structure so members can do their work. 6. B. Although these three characteristics are important to defining what an organization is, the concept of an organization is changing. Exhibit 1.10 lists some of the important differences between the traditional organization and the new organization. Some of these differences include: stable (traditional) vs. dynamic (new); inflexible (traditional) vs. flexible (new); job-focused (traditional) vs. skills-focused (new); and work at organizational facility during specific hours (traditional) vs. work anywhere, anytime (new). C. Organizations are changing because the world around them has changed and is continuing to change. These societal, economic, global, and technological changes have created an environment in which successful organizations must embrace new ways of getting their work done. WHY STUDY MANAGEMENT? Management is important in our society today. The importance of studying management can be explained by looking at the universality of management, the reality of work, and the rewards and challenges or being a manager. A. The Universality of Management—the certainty that management is needed in all types and sizes of organizations, at all organizational levels, and in all organizational work areas, regardless of where they’re located. 1. We interact with organizations every day of our lives. Every product we use and every action we take is provided or affected by organizations. These organizations require managers. 2. By studying management, students will be able to recognize good management and encourage it, as well as to recognize poor management and work to get it corrected. Introduction to Management IIU 6 IIUI Lecture -1 B. The Reality of Work—after graduating, you will either manage or be managed. A course in management provides insights into the way your boss behaves and the internal working of organizations. C. Rewards and Challenges of Being a Manager 1. Challenges a. Managers may find it difficult to effectively blend the knowledge, skills, ambitions, and experiences of a diverse group of employees. b. A manager’s success typically is dependent on others’ work performance. 2. Rewards a. Managers get to create a work environment in which organizational members can do their work to the best of their ability and help the organization achieve its goals. b. Receiving recognition and status in the organization in the organization and the community, playing a role in influencing organizational outcomes, and receiving appropriate compensation. c. Satisfaction from knowing that efforts, skills, and abilities are needed by the organization. Some Important Short Questions? 1. How are managers different from nonmanagerial employees? A manager is an organizational member who integrates and coordinates the work of others. Nonmanagerial employees do not integrate and coordinate the work of others. 2. Explain why it isn’t always easy to determine exactly who the managers are in an organization. It’s not always easy to determine exactly who managers are because the changing nature of organizations and work has, in many organizations, blurred the clear lines of distinction between managers and nonmanagerial employees. Many traditional workers’ jobs now include managerial activities, especially on teams. 3. Contrast the three different levels of management. The three different levels of management are first-line managers (the lowest level, often called supervisors), middle managers (all levels between first-line and top level), and top managers (responsible for making organizationwide decisions and establishing policies and strategies that affect the entire organization). 4. How is management a process? Management refers to the process of coordinating and integrating work activities so they’re completed efficiently and effectively with and through other people. The process represents the ongoing functions of planning, organizing, leading, and controlling. 5. Define efficiency and effectiveness. Efficiency refers to the relationship between inputs and outputs and is often referred to as “doing things right.” Effectiveness refers to completing activities so that organizational goals are attained, and is often described as “doing the right things.” Introduction to Management IIU 7 IIUI Lecture -1 6. Explain why efficiency and effectiveness are important to management. Management is concerned with getting activities completed and meeting organizational goals (effectiveness) and also with doing so as efficiently as possible. Successful organizations are both efficient and effective. Poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. 7. Briefly describe the four functions all managers perform. All managers perform the four functions of planning, organizing, leading, and controlling. Planning is the process of defining goals, establishing a strategy for achieving them, and developing plans to integrate and coordinate activities. Organizing means designing an organization’s structure. Leading means integrating and coordinating the work of the organization’s people. Controlling is monitoring, comparing, and correcting the actual work performance. 8. What is the management process, and how does it reflect what managers do? The management process is the set of ongoing decisions and work activities in which managers engage as they plan, organize, lead, and control. As managers perform the management functions, their work activities are done in an ongoing and continuous manner as a process. 9. Describe Mintzberg’s 10 management roles and how they are used to explain what managers do. Mintzberg concluded that managers perform 10 different but highly interrelated roles. These are interpersonal (figurehead, leader, liaison), informational (monitor, disseminator, spokesperson), and decisional (entrepreneur, disturbance handler, resource allocator, negotiator). They explain what managers do by describing specific categories of managerial behavior. 10. Describe the three skills that Katz felt were essential to managers. How does the importance of the three management skills change depending on management level? Robert Katz felt that managers needed three essential skills—technical, human, and conceptual. Technical skills include knowledge of or proficiency in a certain specialized field; human skills are the ability to work well with other people both individually and in a group; and conceptual skills include the ability to think and conceptualize about abstract situations. The importance of the three skills varies with management level in that top managers need more conceptual skills and lower-level managers need more technical skills. Human skills are important at all levels of management. 11. Are skills important to today’s managers? Explain. Invaluable employees in today’s workplace are those who are willing to constantly upgrade their skills and take on extra work outside their own specific job area. 12. Describe an organization using the systems perspective. A system is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. An organization is an open system because it constantly interacts with its environment. From an open systems perspective, a business organization uses a transformation process to turn inputs such as raw materials and human resources into finished products or services through employees’ work activities, management activities, and Introduction to Management IIU 8 IIUI Lecture -1 technology and operations methods. Outputs include products and services, financial results, and levels of job satisfaction and productivity. 13. Explain how the systems perspective is used to describe what managers do. The systems view of a manager’s job can be used to describe what managers do because the job of a manager is to ensure that all the interdependent and interrelated parts of the organization are working together so that the organization’s goals can be achieved. It also implies that decisions and actions in one organizational area will affect others and vice versa. 14. What is the contingency perspective, and how is it used to describe what managers do? The contingency perspective emphasizes the fact that organizations are different, face different circumstances or contingencies, and thus may require different ways of managing. 15. What are the three characteristics of organizations? An organization is a deliberate arrangement of people to accomplish some specific purpose. Its three characteristics are a distinct purpose, people, and a deliberate structure. 16. Why are managers important to an organization’s success? Even though the concept of organizations may be changing, managers and management are important contributors to an organization’s success. 17. How are organizations changing, and why are they changing? Organizations are becoming more open, flexible, and responsive to changes. They are changing because the world around them has changed. 18. What does the concept of universality of management mean? The universality of management means that management is needed in all types and sizes of organizations, at all organizational levels, and in all organizational work areas, regardless of what country they’re located in. 19. Why is an understanding of management important even if you don’t plan to be a manager? An understanding of management is important even if you don’t plan to be a manager because the reality is that upon graduating, you will either manage or be managed. A course in management provides insights into the way your boss behaves and the internal workings of organizations. 20. Describe the challenges and rewards of being a manager. The challenges of being a manager are that it’s hard work; you have to deal with a variety of personalities; you often have to make do with limited resources, you must motivate workers in chaotic and uncertain situations; managers may find it difficult to effectively blend the Introduction to Management IIU 9 IIUI Lecture -1 knowledge, skills, ambitions, and experiences of a diverse group of employees; and a manager’s success typically is dependent upon others’ work performance. Introduction to Management IIU 10