Manager is someone who coordinates and oversees the work of other people so that

organizational goals can be accomplished.

Classifying managers:

• First-line Managers - Individuals who manage the work of non-managerial

employees.
• Middle Managers - Individuals who manage the work of first-line managers.
• Top Managers - Individuals who are responsible for making organization-wide
decisions and establishing plans and goals that affect the entire organization.
• Non-managerial employees

Management involves coordinating and overseeing the work activities of others so that
their activities are completed efficiently and effectively.

The different of effectiveness and efficiency

EFFECIENCY EFFECTIVENESS
Doing things right Doing the right things
Getting the most output Attaining organizational
for the least inputs goals

Management functions

• 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.

Management roles

• Interpersonal roles : Figurehead, leader, liaison

• Informational roles : Monitor, disseminator, spokesperson

• Decisional roles : Entrepreneur, disturbance handler, resource

allocator, negotiator
Manager Skill

• Technical skills : Knowledge and proficiency in a specific field

• Human skills : The ability to work well with other people

• Conceptual skills : The ability to think and conceptualize about abstract

and complex situations concerning the organization

Important managerial skills

Decision making

• Decision - making a choice from two or more alternatives.

• Problem - an obstacle that makes it difficult to achieve a desired goal or purpose.

Decision making process

1. Identifying a Problem
Characteristics of Problems
a. A problem becomes a problem when a manager becomes aware of it.
b. There is pressure to solve the problem.
c. The manager must have the authority, information, or resources needed to
solve the problem.

2. Identifying decision criteria

Decision criteria are factors that are important (relevant) to resolving the problem,
such as:
a. Costs that will be incurred (investments required)
b. Risks likely to be encountered (chance of failure)
c. Outcomes that are desired (growth of the firm)
3. Allocating weights to the criteria
Decision criteria are not of equal importance: Assigning a weight to each item places
the items in the correct priority order of their importance in the decision-making
process.

4. Developing Alternatives
Identifying viable alternatives : alternatives are listed(without evaluation) that can
resolve the problem
5. Analyzing Alternatives
Appraising each alternative’s strengths and weaknesses : An alternative’s appraisal is
based on its ability to resolve the issues related to the criteria and criteria weight.

6. Selecting an Alternative
Choosing the best alternative : The alternative with the highest total weight is chosen.

7. Implementing the Alternative

Putting the chosen alternative into action : Conveying the decision to and gaining
commitment from those who will carry out the alternative

8. Evaluating decision effectiveness

The soundness of the decision is judged by its outcomes.

 How effectively was the problem resolved by outcomes resulting from the chosen
alternatives?

 If the problem was not resolved, what went wrong?

Rational Decision-Making - describes choices that are logical and consistent while maximizing value.

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.”

Intuitive decision- making : Making decisions on the basis of experience, feelings, and
accumulated judgment.

Programmed Decision : a repetitive decision that can be handled by a routine approach.

Non-programmed Decision : unique and nonrecurring decisions that require a custom-made

solution.

Type of Programmed Decisions

• Procedure - a series of interrelated steps that a manager can use to apply a policy in
response to a structured problem.

• Rule - an explicit statement that limits what a manager or employee can or cannot do.

• Policy - a general guideline for making a decision about a structured problem.

Decision making situations

• Certainty - a situation in which a manager can make an accurate decision because the
outcome of every alternative choice is known.

• Risk - a situation in which the manager is able to estimate the likelihood (probability) of
outcomes that result from the choice of particular alternatives.

Type of problems

• Structured Problems - straightforward, familiar, and easily defined problems.

• Unstructured Problems - problems that are new or unusual and for which information is
ambiguous or incomplete.
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.

Decision Making Biases and Errors

• Heuristics - using “rules of thumb” to simplify decision making.

• Overconfidence Bias - holding unrealistically positive views of oneself and one’s

performance.

• Immediate Gratification Bias - choosing alternatives that offer immediate rewards and avoid
immediate costs.

• Anchoring Effect - fixating on initial information and ignoring subsequent information.

• Selective Perception Bias - selecting, organizing and interpreting events based on the
decision maker’s biased perceptions.

• Confirmation Bias - seeking out information that reaffirms past choices while discounting
contradictory information.

• Framing Bias - selecting and highlighting certain aspects of a situation while ignoring other
aspects.

• Availability Bias - losing decision-making objectivity by focusing on the most recent events.

• Representation Bias - drawing analogies and seeing identical situations when none exist.

• Randomness Bias - creating unfounded meaning out of random events.

• Sunk Costs Errors - forgetting that current actions cannot influence past events and relate
only to future consequences.

• Self-Serving Bias - taking quick credit for successes and blaming outside factors for failures.

• Hindsight Bias - mistakenly believing that an event could have been predicted once the
actual outcome is known (after-the-fact).
 • Group - two or more interacting and interdependent individuals who come together
to achieve specific goals.
– Formal groups
• Work groups defined by the organization’s structure that have
designated work assignments and tasks
– Informal groups
• Groups that are independently formed to meet the social needs of
their members
The example of formal group

Group development

• Forming stage - the first stage of group development in which people join the group and
then define the group’s purpose, structure, and leadership

• Storming stage - the second stage of group development, characterized by intragroup

conflict

• Norming stage - the third stage of group development, characterized by close relationships
and cohesiveness.

• Performing stage - the fourth stage of group development when the group is fully functional
and works on group task.

• Adjourning - the final stage of group development for temporary groups during which group
members are concerned with wrapping up activities rather than task performance.

Group structure

• Role - behavior patterns expected of someone occupying a given position in a social unit.

• Norms - standards or expectations that are accepted and shared by a group’s members.

• Groupthink - when a group exerts extensive pressure on an individual to align his or her
opinion with that of others.
Work teams - groups whose members work intensely on a specific, common goal using their positive
synergy, individual and mutual accountability, and complementary skills.

Type of work team

• Problem-solving team - a team from the same department or functional area that’s involved
in efforts to improve work activities or to solve specific problems.

• Self-managed work team - a type of work team that operates without a manager and is
responsible for a complete work process or segment.

• Cross-functional team - a work team composed of individuals from various functional

specialties.

• Virtual team - a type of work team that uses technology to link physically dispersed
members in order to achieve a common goal.

Advantages using work team

• Teams outperform individuals.

• Teams provide a way to better use employee talents.

• Teams are more flexible and responsive.

• Teams can be quickly assembled, deployed,

refocused, and disbanded.

WORK TEAM VS WORK GROUP

Characteristics of Effective Teams

• Have a clear understanding of their goals

• Have competent members with relevant technical and interpersonal skills

• Exhibit high mutual trust in the character and integrity of their members

• Are unified in their commitment to team goals

• Have good communication systems

• Possess effective negotiating skills

• Have appropriate leadership

• Have both internally and externally supportive environments

Communication - the transfer and understanding of meaning.

• Transfer means the message was received in a form that can be interpreted
by the receiver.

• Understanding the message is not the same as the receiver agreeing with
the message.

• Interpersonal Communication - communication between two or more people.

• Organizational Communication - all the patterns, networks, and systems of communications

within an organization.

Functions of communication

• Control - Formal and informal communications act to control individuals’ behaviors in

organizations.

• Motivation - Communications clarify for employees what is to be done, how well they have
done it, and what can be done to improve performance.

• Emotional Expression - Social interaction in the form of work group communications

provides a way for employees to express themselves.

• Information - Individuals and work groups need information to make decisions or to do their
work.

The interpersonal communication

• Communication process - the seven elements involved in transferring meaning from one
person to another.

• Noise - any disturbances that interfere with the transmission, receipt, or feedback of a
message.

• Message - a purpose to be conveyed.

• Encoding - converting a message into symbols.

• Channel - the medium a message travels along.

• Decoding - retranslating a sender’s message.

Barriers to communication

• Filtering - the deliberate manipulation of information to make it appear more favorable to

the receiver.

• Information overload - occurs when information exceeds our processing capacity.

• Jargon - specialized terminology or technical language that members of a group use to

communicate among themselves.

Formal communication versus informal communication

• Formal communication - communication that takes place within prescribed organizational

work arrangements.

• Informal communication - communication that is not defined by the organization’s

structural hierarchy.

Direction of communication

• Downward communication - communication that flows downward from a manager to

employees.

• Upward communication - communication that flows upward from employees to managers.

• Lateral communication - communication that takes place among any employees on the
same organizational level.

• Diagonal communication - communication that cuts across work areas and organizational
levels.

Organizational network

• Communication Networks - the variety of patterns of vertical and horizontal flows of

organizational communication.

• Grapevine - the informal organizational communication network.

Leadership

• Leader - Someone who can influence others and who has managerial authority.

• Leadership - What leaders do; the process of influencing a group to achieve goals.

Ideally, all managers should be leaders.

Contemporary Views of Leadership

• Transactional Leadership - Leaders who guide or motivate their followers in the direction of
established goals by clarifying role and task requirements.

• Transformational Leadership - Leaders who inspire followers to transcend their own self-
interests for the good of the organization by clarifying role and task requirements.

• Charismatic Leadership

 An enthusiastic, self-confident leader whose personality and actions influence

people to behave in certain ways.
 Characteristics of charismatic leaders:
– Have a vision

– Are able to articulate the vision

– Are willing to take risks to achieve the vision

– Are sensitive to the environment and follower needs

– Exhibit behaviors that are out of the ordinary

• Visionary Leadership

– A leader who creates and articulates a realistic, credible, and attractive vision of the
future that improves upon the present situation.

• Visionary leaders have the ability to:

• Explain the vision to others

• Express the vision not just verbally but through behavior

• Extend or apply the vision to different leadership contexts

• Team Leadership Characteristics:

– Having patience to share information

– Being able to trust others and to give up authority

– Understanding when to intervene

 • Team Leader’s Job

– Managing the team’s external boundary

– Facilitating the team process

– Includes coaching, facilitating, handling disciplinary problems, reviewing team and

individual performance, training, and communication

ORGANINZATIONAL

• Organizing - arranging and structuring work to accomplish an organization’s goals.

• Organizational Structure - the formal arrangement of jobs within an organization.

• Organizational Design - a process involving decisions about six key elements:

• Work specialization

• Departmentalization

• Chain of command

• Span of control

• Centralization and decentralization

• Formalization

Purposes of organizing
Organizational structures

• Work Specialization

– The degree to which tasks in the organization are divided into separate jobs with
each step completed by a different person.

– Overspecialization can result in human diseconomies such as boredom, fatigue,

stress, poor quality, increased absenteeism, and higher turnover.

• Chain of Command - the continuous line of authority that extends from upper levels of an
organization to the lowest levels of the organization—clarifies who reports to whom.

• Authority - the rights inherent in a managerial position to tell people what to do and to
expect them to do it.

• Responsibility - the obligation or expectation to perform.

• Unity of Command - the concept that a person should have one boss and should report only
to that person.