Management

1. Management Revision

2. Today’s lecture Revision on everything!

3. Management Chapters 1, 1a

4. Universality of Management Universality of Management The reality that management is needed • in all types and sizes of organizations • at all organizational levels • in all organizational areas • in all organizations, regardless of location

5. What is a manager? “Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished.” (Robbins, 2011)

6. Where do managers work? In organisations of different shapes and sizes with only 3 common characteristics.

7. Where do managers work? In different layers of the organisation, particularly in hierarchical organisations.

8. Functions of a manager • Planning - Defining goals, establishing strategies to achieve goals, and developing plans to integrate and coordinate activities. • Organizing - Arranging and structuring work to accomplish organizational goals. • Leading - Working with and through people to accomplish goals. • Controlling - Monitoring, comparing, and correcting work.

9. Factors shaping managers’ roles There are many factors which change and shape a manager’s role. Four of these are: • Customers • Innovation • Sustainability • Changes

10. Summary of Approaches

11. Planning Chapters 7, 8, 9

12. What is strategic leadership? • Strategic leadership - the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organisation to initiate changes that will create a viable and valuable future for the organisation.

13. Effective strategic leadership (8 factors)

14. eBusiness strategies For any business, to help lower costs. Cost Leadership • On-line activities: bidding, order processing, inventory control, recruitment and hiring Differentiation • Internet-based knowledge systems, online ordering and customer support Focus • Chat rooms and discussion boards, targeted Web sites

15. Customer service strategies • Giving the customers what they want • Communicating effectively with them • Providing employees with customer service training

16. Innovation strategies Possible Events • Radical breakthroughs in products • Application of existing technology to new uses Strategic Decisions about Innovation • Basic research • Product development • Process innovation First Mover - an organisation that brings a product innovation to the market or uses new process innovations.

17. Summary of making a decision • Identifying a problem and decision criteria and allocating weights to the criteria • Developing, analysing, and selecting an alternative that can resolve the problem • Implementing the selected alternative • Evaluating the decision’s effectiveness

18. 8 steps process for decision making Look at this diagram on p179 – do you understand all the steps? Do you have an example?

19. Rational decision making • Rational Decision-Making - describes choices that are logical, in the best interests of the company and consistent. Perfect decision making! • Bounded Rationality - decision making that’s rational, but limited (bounded) by an individual’s ability to process information. • Satisfice - accepting solutions that are “good enough.”

20. Intuitive decision making • Intuitive decision- making • Making decisions on the basis of • experience • Feelings • accumulated judgment • Works alongside rational decision making • Works best if person understands their emotions and has experience

21. Decision making styles • Linear Thinking Style - a person’s tendency to use external data/facts; the habit of processing information through rational, logical thinking. • Nonlinear Thinking Style - a person’s preference for internal sources of information; a method of processing this information with internal insights, feelings, and hunches.

23. What is planning? Planning - a managerial function that involves: • Defining the organisation’s goals • Establishing an overall strategy for achieving those goals • Developing plans for organisational work activities

24. Types of plans

25. Types of plans Strategic Plans • Establish the organisation’s overall goals • Seek to position the organisation in terms of its environment • Cover extended periods of time Operational Plans • Specify the details of how the overall goals are to be achieved • Cover a short time period

26. Short and long term Long-Term Plans • Time frames extending beyond three years. Short-Term Plans • Time frames of one year or less.

27. Specific and directional Specific Plans • Plans that are clearly defined and leave no room for interpretation. Directional Plans • Flexible plans that set out general guidelines and provide focus, yet allow discretion in implementation.

28. Single-use and standing Single-Use Plan • A one-time plan specifically designed to meet the need of a unique situation. Standing Plans • Ongoing plans that provide guidance for activities performed repeatedly.

29. Management by Objectives (MBO) • Specific performance goals are jointly determined by employees and managers. • Progress toward accomplishing goals is periodically reviewed. • Rewards are allocated on the basis of progress towards the goals.

30. Management by Objectives (MBO) Key elements of MBO: • goal specificity • participative decision making • an explicit performance/evaluation period • feedback

31. Does MBO work? Reason for MBO Success • Top management commitment and involvement Potential problems with MBO • Are less effective in dynamic environments that require constant resetting of goals • Overemphasis on individual accomplishment may create problems with teamwork • Allowing the MBO to become an annual paperwork shuffle

32. SMART goals Peter Drucker, 1954, SMART goals: • S (specific) • M (measurable) • A (attainable) • R (relevant) • T (time bound)

33. What is strategic management? • Strategic management - what managers do to develop the organisation’s strategies. • Strategies - the plans for how the organisation will do what it’s in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals. • Business model - how a company is going to make money.

34. Strategic management process

35. SWOT • Strengths - any activities the organisation does well or any unique resources that it has. • Weaknesses - activities the organisation does not execute well or needed resources it does not possess. • Opportunities – chances to change, improve, do well. • Threats – factors that could cause failure, lack of profit, be negative for the organisation.

36. Types of organisational strategies

37. Organisations Chapters 2, 10, 11, 13

39. Establishing and maintaining culture

40. Where does culture begin? • Stems from the actions of the founders: • Founders hire and keep only employees who think and feel the same way they do. • Founders indoctrinate and socialise these employees to their way of thinking and feeling. • The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalise their beliefs, values, and assumptions.

41. The socialisation process Pre-arrival • The period of learning prior to a new employee joining the organisation Encounter • When the new employee sees what the organisation is really like and confronts the possibility that expectations and reality may diverge Metamorphosis • When the new employee changes and adjusts to the work, work group, and organisation

42. Managerial decisions affected by culture

43. Negative aspects of organisational culture • Institutionalisation • Barriers to change • Barriers to diversity • Barriers to acquisitions and mergers

44. What is an organisation? • “A consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals.” • (Robbins, 2011)

45. Organisational design There are six key elements: • Work specialisation (sub-dividing jobs) • Departmentalisation (grouping jobs) • Chain of command (who reports to who) • Span of control (how many people you manage) • Centralisation and decentralisation (where does decision making power lie) • Formalisation (the level of rules and regulations)

46. Mechanistic or organic structures?

47. Contemporary organisation designs The environment in which organisations exist has changed rapidly in the past 20 years. New organisation structures include: • Team • Matrix • Project • Boundaryless • Virtual • Network • Learning

48. Flexible working • As the structures of organisations change, the need for traditional full-time, permanent roles has changed. • Types of flexible working include: • Telecommuting • Compressed workweek • Flexi-time • Flexi hours • Job sharing

49. What is a group? Group - two or more interacting and interdependent individuals who come together to achieve specific goals. Groups tend to come together for a specific purpose but members work independently. A group may have a leader, but the roles and functions of the other group members are not well defined.

50. Types of groups Formal groups • Work groups defined by the organisation’s structure that have designated work assignments and tasks Informal groups • Groups that are independently formed to meet the social needs of their members