MANAGEMENT

R I C HAR D L. DAFT
Managing in Turbulent Times
CHAPTER 1
 Learning Objectives

⚫ Describe the four management functions and the type of

management activity associated with each.
⚫ Explain the difference between efficiency and
effectiveness and their importance for organizational
performance.
⚫ Describe management types and the horizontal and
vertical differences between them.
⚫ Describe conceptual, human, and technical skills and
their relevance for managers and employees.
⚫ Define 10 roles that managers perform in organization.

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 Learning Objectives (contd.)

⚫ Understand the personal challenges involved in

becoming a new manager in an organization in today’s
world.
⚫ Discuss the management competencies needed to deal
with today’s turbulent environment, including issues such
as diversity, globalization, and rapid changes.
⚫ Explain the leadership skills needed for effective crisis
management.

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 The Nature of Management

Managers have to cope with diverse

and far-reaching challenges
1. To keep pace with ever-advancing
technology
2. To find ways to incorporate the Internet
and e-business into their strategies and
business model
3. Strive to remain competitive in a
dynamic and far reaching world

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 What Do Managers Have in Common?

⚫ They get things done through their

organization.
⚫ They create the systems, conditions and
environment that enable organizations to
survive and thrive beyond the tenure of
any specific supervisor or manager.

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 Definition of Management

⚫ The attainment of organizational goals in

an effective and efficient manner through
⚫ Four functions
– planning,
– organizing,
– leading, and
– controlling organizational resources.
Managers use a multitude of skills to
perform functions

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 Functions of Management

Planning

Select goals and

ways to attain
them

Controlling Organizing

Monitor activities and

Assign responsibility
make corrections
for task
accomplishment

Leading

Use influence to
motivate employees

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 The Process of Management

Planning

Select goals and

ways to attain
them
Resources Performance
•Human •Attain goals
Controlling Organizing •Products
•Financial
•Raw Materials Monitor activities •Services
Assign responsibility
and make
•Technological for task •Efficiency
corrections
accomplishment
•Information •Effectiveness

Leading
Use influence to
motivate employees
Exhibit 1.1

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 Planning Function

⚫ Definition
– Defines goals for future organizational
performance
– Decides tasks and use of resources needed
⚫ Corporate Examples
– Planning – AOL Time Warner – The Lord of
the Rings
– Lack of planning – Merry-Go-Round

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 Organizing Function

⚫ Definition
– Follows planning
– Reflects how organization tries to accomplish
plan
– Involves assignment of
⚫ tasks into departments
⚫ authority and allocation of resources across
organization
⚫ Corporate Examples - Structural
reorganizations
– IBM, the Catholic Church, Microsoft, Motorola,
the FBI
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 Leading Function

⚫ Definition
– The use of influence to motivate
employees to achieve the organization’s
goals.
⚫ Corporate Examples – Michael Dell, Meg
Whitman of eBay, Cara Kakuda of Nextel

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 Controlling Function

Definition
● Monitoring employees’ activities
● Determining whether the
organization is on target toward its
goals
● Making corrections as necessary

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 Controlling Function

New Trends
⚫ Empowerment and trust of employees =
training employees to monitor and correct
themselves
⚫ New information technology provides control
without strict top-down constraints
⚫ Lack of Control Information can lead to
Organizational Failure

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 Organizational Performance

Attainment of organizational
goals in an efficient and 2nd half of
effective manner definition of
The Process of Management
management

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 Organizational Performance

⚫ Organization - social entity that is goal directed and

deliberately structured

⚫ Effectiveness - degree to which organization achieves a

stated goal

⚫ Efficiency - use of minimal resources (raw materials,

money, and people) to produce the desired volume of
output

⚫ Performance – organization’s ability to attain its goals by

using resources in an efficient and effective manner

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 Management Skills

Exhibit 1.2

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 Management Skills

⚫ Conceptual Skills – Cognitive ability to see the

organization as a whole and the relationships among
its parts
⚫ Human Skills – ability to work with and through
other people and to work effectively as a group
member
⚫ Technical Skills – understanding of and
proficiency in the performance of specific tasks
⚫ When skills Fail

Experiential Exercise: Management Aptitude Questionnaire

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 Management Types - Vertical
Managerial Levels in the Organizational Hierarchy

Managerial Levels in the Organizational Hierarchy

Exhibit 1.3

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 Management Types - Horizontal

⚫ Functional Managers
– Responsible for a department that performs
a single functional task and
– Has employees with similar training and
skills

⚫ General Managers
– Responsible for several departments that
perform different functions

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 Managerial Types - Horizontal

⚫ Functional Managers
– Advertising ⚫ General Managers
– Sales – Self-contained division
– Finance such as a Macy’s
– Human Resources department store
– Manufacturing
– Accounting – Project managers have
general management
responsibility as they
coordinate people across
several departments

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 What is it like to be a Manager?

⚫ Manager Activities
– Multitasking Fragmentation, Variety, Brevity

– Life on Speed Dial

⚫ Manager’s Role
– Set of expectations for one’s behavior
– Diverse activities --10 roles

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 Making the Leap From Individual Performer to
Manager

Exhibit 1.4

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 Ten Manager Roles

Category Role
Informational Monitor
Disseminator
Spokesperson
Interpersonal Figurehead
Leader
Liaison
Decisional Entrepreneur
Disturbance handler
Resource allocator
negotiator

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 Hierarchical Levels

Exhibit 1.6

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 Managing in Small Businesses and Nonprofit
Organizations

⚫ Role Differences

⚫ Source of Financial Resources

⚫ Unconventional Bottomline

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 Management and the New Workplace

Exhibit 1.7

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 Management and the New Workplace

⚫ Forces on organizations
⚫ New Management Competencies
– Dispersed leadership
– Empowering others
– Collaborative relationships
– Team-building skills
– Learning organization

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 Managing During Turbulent Times

⚫ Stay Calm
⚫ Be Visible
⚫ Put People Before Business
⚫ Tell the Truth
⚫ Know When to Get Back to Business

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