– Principles of General Management

1. – Principles of General Management Dr Jannie Lourens

2. – Principles of General Management Study Objectives • Distinguish between the different management functions. • Understand each function’s objectives and mechanisms. • Apply the functions in your work environment. • Understand how the functions interrelate. • Understand how leadership as a function has changed • Understand Self-Managing-Work-Teams (SMWT) and its significance in contemporary organisations. • Notice the differences between the application of Planning, Organising, Leading and Control and how they are applied in the new types of work organisation such as SMWT’s. • Note how general management principles are applied in other chapters of this course

3. INTERNAL ENVIRONMENT Systems Culture Strategies Procedures MANAGEMENT PROCESS INPUTS Planning & OUTCOMES Decision making environment Finance LEADING Human resources Organising Implementation Products Technology & Execution Services Information Changes Physical assets Profit Control Growth The Management Process Changes in the external Competitive forces PERFORMANCE

4. The Roles Managers Play Interpersonal Roles 1. Figurehead 2. Leader 3. Liaison Informational Roles 1. Monitor 2. Disseminator 3. Spokesperson Decisional Roles 1. Entrepreneur 2. Disturbance handler 3. Resource allocator 4. Negotiator MINTZBERG - 1975

5. The Planning Function • Planning is the managerial function whereby the organisation determines how it will achieve its objectives. During the planning process the what, when, where, who, how, and why certain things need to be done to achieve the organisation’s objectives, are determined. • “He who fails to plan - plans to fail”

6. The Planning Process Search and identify opportunities or solutions Plan for Formulate objectives Implementation Decide on Identify best alternatives Alternatives Compare alternatives against objectives, standards and assumptions

7. The Organising Function • Organising is the management function of creating structures, defining roles, rules and responsibilities for the organisation or organisational unit, that will enable its people to work together effectively towards achieving its objectives, through the best utilisation of available resources. • The objective of organising is to establish stable structures within the organisation's internal and external environment. Then the members of the organisation can interact effectively internally as well as with the external environment, to achieve the objectives planned by the organisation. • The organisation structure is an established pattern of relationships among the different components, or units of the organisation. In an organisation, the structure is formed by the design of the subsystems of the business system and by the formation of relationships among these subsystems.

8. Organisation can be defined in terms of: • The pattern of formal relationships, evidenced by organisation charts, job descriptions, positions and lines of authority. This pattern is referred to as the hierarchy or organisational form. • The manner in which roles, responsibilities and activities are assigned to different units or people. This is referred to as differentiation of work. • The relationships between power, status and positions within the organisation. This is referred to as the distribution of formal authority. • The policies, procedures, guidelines and control mechanisms that regulate activities and relationships in the organisation. Also, referred to as the business systems. • The way work is co-ordinated

9. Co-ordination of work Co-ordination in organisations can be achieved through various means: • The design of the organisation structure. • Rules and procedures standardise work processes. Work is done in a predictable way and can be planned on a routine basis. • The use of staff departments to assist with research, liaison, special knowledge, planning, or problem solving. • The use of interdepartmental committees, task forces, or project teams can achieve co-ordination for special problems or opportunities. • Standardisation of skills and knowledge through training, etc. • The appointment of project leaders. • Informal communication between the relevant groups or people assigned to achieve a specific objective.

10. Forms of Organisation • The Functional organisation • Product organisation • Project organisation • Customer organisation • The matrix organisation • Team structures • Virtual organisations

11. Authority, Responsibility and Accountability. • Authority is the right to summon compliance by subordinates based on formal position and control over rewards and sanctions. Authority is impersonal and conforms to the position rather than the individual. Authority is the means for integrating the activities of subordinates towards objectives and provides the basis for direction and control. • Responsibility is the assigned obligation of a subordinate to carry out a delegated task or activity. Although authority can be delegated to a subordinate, responsibility cannot. Responsibility can be assigned to a subordinate. • The superior is still ultimately responsible for ensuring that the job is done properly. Since the superior retains the ultimate responsibility for the performance of the job, delegation of authority always entails the creation of Accountability. Thus, subordinates automatically become accountable to their superior for the performance of the tasks assigned to them.

12. Control Function • It is the managerial function that measures actual performance, compares it against pre-set standards or goals, and where there are deviations from the pre-set standards or goals, these are communicated as areas for review and correction. • The causes for the deviations (+/-) are analysed in order to define the correct corrective steps. • The corrective actions are planned for the relevant causes and implemented to rectify negative performance deviations. • Alternatively, one can build, learn and grow upon positive deviations from goals or standards.

13. CONTROL PROCESS 1 Actual Performance 2 7 Implement Measurement corrective actions of Actual Performance 6 Plan 3 corrective actions Comparison of 5 Actual against Analyse causes set standards or targets of deviations 4 Identify Deviations

14. Leadership • Leadership is the ability to inspire people, a group, a team or an organisation to work together toward the achievement of worthwhile goals. It involves influencing, motivation and directing of individuals or teams in such a way that they willingly pursue the goals and objectives of the group, team or organisation. • “Leadership is an influence relationship among leaders and followers who intend real changes that reflect their mutual purposes.”

15. Leaders Managers Innovates Administers An original A copy Develops Maintains Focuses on people Inspires trust Relies on control Long-range perspective Short-range view Asks what and why Asks how and when Eye on the future Eye on the bottom line Originates Imitates Challenges the status quo Accepts the status quo Own person Classic good soldier Does the right thing Does things right Characteristics of Managers vs Leaders Focuses on systems and structure

16. Personality traits of most effective leaders. • Vision. It is the capacity to picture the future. • Focus. The ability to concentrate or focus on issues that are key to the attainment of desired objectives • Energy. The capacity to act vigorously and decisively, and the drive to achieve. • Creativity. The ability to generate ideas, to find creative solutions to problems and generally promote innovative approaches. • Empathy - Emotional Intelligence. • Influence. The ability to communicate and persuade. • Endurance. The capacity to sustain effort over long periods and attention fixed on essential issues without becoming distracted. • Stability. The capacity for emotional and mental stability and resilience. It reflects the capacity for coping with stress, pressure, criticism and adversity. • Dealing with Change and Risk. The capacity to accept change, adapt to it, and often have to be prepared to take risky decisions when confronted with uncertainty regarding the future.

17. HERSEY & BLANCHARD - SITUATIONAL LEADERSHIP (HIGH) S3 S2 PARTICIPATING SELLING RELATIONSHIP BEHAVIOUR S4 S1 DELEGATING TELLING (LOW) (LOW) TASK BEHAVIOUR (HIGH) Directive behaviour Able & Able But Unable but Unable & Willing or Unwilling or Willing or Unwilling or HIGH LOW Confident Insecure Confident Insecure R 4 R 3 R 2 R 1 LEADER DIRECTED FOLLOWER DIRECTED FOLLOWER READINESS

18. EMPOWERMENT Empowerment is a function of four important variables: Authority, Resources, Information, and Accountability. To feel empowered, people need formal authority and all the necessary resources (like budgets, equipment, time, skills and training) necessary to do something with the delegated authority. They also need timely, accurate information to make good decisions. They need a personal sense of accountability for the work. The definition of empowerment : Empowerment = f (Authority, Resources, Information, Accountability) Empowerment = 0 if Authority, Resources, Information or Accountability = 0

19. Self-directed work teams Traditional organisations Customer – driven Management-driven Multi-skilled work force Work force of isolated specialists Few job descriptions Many job descriptions Information shared widely Information limited Few levels of management Many levels of management Whole business focus Function/department focus Shared goals Segregated goals Seemingly chaotic Seemingly organised Purpose achievement emphasis Problem solving emphasis High worker commitment High management commitment Continuous improvements Incremental improvements Self-controlled Management controlled Values & Principles based. Policy/procedure based SDWT’s vs Traditional Organisations

20. SDWT Leader’s Roles • Leader • Living Example • Coach • Business Analyser • Barrier Buster • Facilitator • Customer Advocate

21. SWDT Leader Roles • Leader • Living Example • Coach • Business Analyser • Barrier Buster • Facilitator • Customer Advocate • SWDT team member roles • Problem Solver • Trainer • Customer Advocate • Decision-Maker • Team Player • Resource provider • Skilled Worker