BU8601

LECTURE 1
MANAGEMENT AND MANAGERS

Dr. Vijayan P Munusamy

3 Segment

1. Knowledge Acquisition
• Management Process: PLOC; Performance - Efficiency vs
Effectiveness
• Management Roles & Skills
• Efficiency & Effectiveness of Organisational Performance

2. Application: Example Zappos

3. Reflection & Connecting the Dots

Why?

Organisations cannot
Innovation is the
survive long term
new imperative
without innovation

Companies like Innovation should be

Facebook are always a part of products, processes,
investing in new ideas people, and values
What?

MANAGEMENT is the
attainment of organisational goals in
aneffective and efficient
manner through planning,
organising, leading,
and controlling
organisational resources.
 How?

Managers get
Create right Organisations
things done
systems and need good
through the
environment managers
organisation

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The management process

Decision-making
The management process
The management process
The management process
The management process

Decision-making
• Planning = selecting goals and the tasks & resources needed
-> a plan for what the organization will do to achieve the
goals
• Organizing = assigning tasks & allocating resources
-> a structure that defines how to carry out the plan
• Controlling = monitoring activities and correcting, if needed
-> a mechanism that defines how to keep the organization on
track toward its goals
• Leading = using influence to motivate employees
-> an organizational climate in which individuals and entire
departments and divisions work towards the goals.
Organisational Performance

Org
Effe anisat Org
an
ctiv ion Effi isatio
ene cien n
ss cy

What are the indicators of a well-managed company?

v Organizational performance can be measured by:
v How well the organizational goals are met… but there’s actually
two parts to this:
v Organizational effectiveness = meeting the stated org. goals to
the highest standard possible ( “doing the right things”)
v Organizational efficiency = using resources as well as possible in
meeting the goals (“doing things right”)

so that the ratio of….

outputs (goods, services produced) to inputs (resources used) is
as high as possible.
Elements of Quality Management

Employee Focus on the Benchmarking Continuous

Involvement Customer Improvement
State-of-the-Art Management Competencies for Today’s World

Management From Traditional To New

Principle Approach Competencies

Overseeing Work Controller Enabler

Accomplishing Tasks Supervising Leading teams
individuals
Managing Relationships Conflict and Conversation
competition and collaboration
Leading Autocratic Dispersed and empowering

Designing Maintaining Mobilising for change

stability
State-of-the-Art Management Competencies for Today’s World
State-of-the-Art Management Competencies for Today’s World
State-of-the-Art Management Competencies for Today’s World

1
SET OBJECTIVES

5 2
DEVELOP PEOPLE ORGANISE

3
4 MOTIVATE AND
MEASURE COMMUNICATE
Management Skills

• Degree of the skills may

vary but all managers must
possess the skills
Conceptual
• Application of
Human Technical management skills change as
managers move up the
hierarchy
Relationship of Technical, Human, and Conceptual Skills to Management

Conceptual Skills
Non-managers
Individual Human Skills
Contributors
Technical Skills

Conceptual Skills
Middle
Human Skills
Managers
Technical Skills
 ’s Rules: Eight Good Behaviours for Managers

To know how to build better managers, executives studied

performance reviews, feedback surveys, and award nominations to
see what qualities made a good manager. Here are the “Eight Good
Behaviours” they found, in order of importance:
1. Be a good coach
2. Empower your team
3. Express interest
4. Be productive & result-oriented
5. Good communicator
6. Help your employees
7. Clear vision and strategy
8. Key technical skills

SOURCE: “Google Quest to Build a Better Boss”, by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of Google, Inc.
 ’s Rules: Eight Good Behaviours for Managers

1 Be a good coach

SOURCE: “Google Quest to Build a Better Boss”, by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of Google, Inc.
 ’s Rules: Eight Good Behaviours for Managers

2 Empower your team

SOURCE: “Google Quest to Build a Better Boss”, by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of Google, Inc.
 ’s Rules: Eight Good Behaviours for Managers

3 Express Interest

SOURCE: “Google Quest to Build a Better Boss”, by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of Google, Inc.
 ’s Rules: Eight Good Behaviours for Managers

4 Be productive and results-oriented

SOURCE: “Google Quest to Build a Better Boss”, by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of Google, Inc.
 ’s Rules: Eight Good Behaviours for Managers

5 Good communicator

SOURCE: “Google Quest to Build a Better Boss”, by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of Google, Inc.
 ’s Rules: Eight Good Behaviours for Managers

6 Help your employees

SOURCE: “Google Quest to Build a Better Boss”, by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of Google, Inc.
 ’s Rules: Eight Good Behaviours for Managers

7 Clear vision and strategy

SOURCE: “Google Quest to Build a Better Boss”, by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of Google, Inc.
 ’s Rules: Eight Good Behaviours for Managers

8 Key technical skills

SOURCE: “Google Quest to Build a Better Boss”, by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of Google, Inc.
When Skills Fail
When Skills Fail

During turbulent times, managers must apply their skills.

Common management failures:

Not listening to customers Misinterpreting signals Not building teams

from marketplace

Inability to execute strategies Failure to comprehend Poor communication

and adapt to change and interpersonal skills
Top Causes of Manager Failure
Top Causes of Manager Failure

1 Ineffective communication skills and practices 81%

2 Poor work relationships/interpersonal skills 78%

3 Person mis-match 69%
4 Failure to clarify direction or performance expectations 64%
5 Failure to adapt and break old habits 57%
6 Breakdown of delegation and empowerment 56%
7 Lack of personal integrity and trustworthiness 52%
8 Inability to develop cooperation and teamwork 50%
9 Inability to lead/motivate others 47%

10 Poor planning practices/reactionary behaviour 45%

0% 50% 90%
SOURCE: Adapted from Clinton O. Longenecker, Mitchel J. Neubert, and Laurence S. Fink, “Causes and Consequences of Managerial Failure in Rapidly Changing Organizations”,
Business Horizons 50 (2007): 145-155, Table 1.
Making the Leap from Individual Performer to Manager

From From
Individual Manager
Identity Identity

SOURCE: Based on Exhibit 1.1, “Transformation of Identity”, in Linda A. Hill, Becoming a Manager: Mastery of a New Identity, 2nd ed.
(Boston, MA: Harvard Business School Press, 2003), p.6.
Making the Leap from Individual Performer to Manager

From From
Individual Manager
Identity Identity

Specialist; performs specific tasks Generalist; coordinates diverse tasks

Gets things done through own efforts Gets things done through others

An individual actor A network builder

Work relatively independently Works in highly interdependent manner

SOURCE: Based on Exhibit 1.1, “Transformation of Identity”, in Linda A. Hill, Becoming a Manager: Mastery of a New Identity, 2nd ed.
(Boston, MA: Harvard Business School Press, 2003), p.6.
BREAK…….(10 minutes)
Manager Activities

Life on speed dial

– Work at
Adventures in unrelenting pace
– Interrupted by
multitasking
disturbances
– Activity characterised by
– Always working
variety, fragmentation,
(catching up)
and brevity
– Less than nine minutes
on most activities
– Managers shift gears
quickly
Manager Roles

Role: Set expectations for a manager’s behaviour

Planning Organising Controlling Leading

Manager Roles

Manager roles are important to understand but they are

not discrete activities

Management cannot be practiced as independent parts

Managers need time to plan and think

Ten Manager Roles

INFORMATIONAL INTERPERSONAL

DECISIONAL

SOURCE: Adapted from Henry Mintzberg,

The Nature of Managerial Work (New York; Harper & Row, 1973, p92-93;
and Henry Mintzberg, “Managerial Work: Analysis from Observation”,
Management Science 18 (1971), B97-B110.
Managing in Small Business and Non-profit Organisations

Small businesses are growing

– Inadequate management skills
is a threat
– Roles for small business
managers differ
– Entrepreneurs must promote
the business
Managing in Small Business and Non-profit Organisations

Non-profits need management talent

– Apply the four functions of
management to make social
impact
– More focus on keeping costs low
– Need to measure intangibles like
“improving public health”
Management Perspectives Over Time

Open (Collaborative) Innovation

Technology-Driven Workplace

Total Quality Management

Contingency View

System Thinking

Management Science Perspective

Humanistic Perspective
Classical
Perspective

1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Classical Perspective

Three subfields:

Scientific Bureaucratic Administrative

Management Organisations Principles
Scientific Management

Management
decisions would be
based on precise
procedures based
on study
Frederick Winslow Henry Gantt
Taylor proposed developed the
that workers “could Gantt chart to
be re-tooled like measure and plan
machines” work

Improve The Gilbreths

efficiency and pioneered time
labour productivity and motion studies
through scientific Scientific to promote
methods efficiency
Management
Characteristics of Weberian Bureaucracy

Division of labour, Positions

with clear organised in a
definitions of hierarchy of
authority and authority
responsibility

Personnel Managers
selected and subject to rules and
promoted based on procedures that
will ensure reliable,
technical
qualifications
The Ideal predictable
Bureaucracy behaviour

Administrative Management
acts and decisions separate from the
recorded in ownership of the
writing organisation
Administrative Principles

Identified five functions of management:

Planning Organising Commanding Coordinating Controlling

Humanistic Perspective: Human Relations Movement

From worker participation and considerate leadership to

managing work performance

Combine motivation with job design

Maslow and McGregor extended and challenged current

theories
- Maslow’s Hierarchy
- Theory X and Theory Y
Theory X and Theory Y

Assumptions of Theory X

Inherent dislike of work People must be coerced, controlled,

and will avoid if possible directed, or threatened with
punishment to get them to put in effort
toward the achievement of
organisational objectives
Prefers to be directed, wishes
to avoid responsibility, has
relatively little ambition, and
want security above all
Theory X and Theory Y

Assumptions of Theory Y

Physical and mental effort in work

is as natural as pay or rest. Capacity to exercise
A person will exercise self- a relatively high degree of imagination,
ingenuity, and creativity in the solution of
direction and self-control in the
organisational problems is widely, not
service of objectives to which he narrowly, distributed in the population
or she is committed.

Human being learns, Intellectual

under proper conditions, potentialities of the
not only to accept but to average human being are
seek responsibility only partially utilised
Humanistic Perspective: Behavioural Sciences Approach

Matrix Corporate
organisations culture

Other strategies
Based on
behavioural
science:

Self-managed Management
teams by wandering
around
Recent Trends: Systems Thinking

The ability to see the distinct elements of

a situation as well as the complexities

System – set of interrelated parts that

function as a whole to achieve a common
purpose

Subsystems – are parts of the system that

are all interconnected
Managers must understand
Synergy – the whole is greater than the subsystem interdependence
sum of its parts and synergy
Innovative Management: Thinking for a Changing World

Management ideas trace their roots to

historical perspectives

New ideas continue to emerge to meet

the changing needs and difficult times

The shelf life of trends is getting shorter

and new ideas peak in fewer than three
years
Innovative Management Thinking

Focus on creating benefits from limited resources

(Hindi word: Jugaad, U.S. “Frugal Engineering.”)

Management changing but history matters

Broadens way Discover patterns Learn from others’

of thinking that recur over time mistakes and successes
 BU8601 – Application: Zappos
American online shoe and clothing PAGE 56

retailer
Founded in 1999 by Nick Swinmurn, Tony Hsieh &
Alfred Lin
Revenue growth – 1999 à $1.6 mil to 2008 à $1 bil
Indicators of a well-managed Zappos
• Emphasis on Culture fit à Cultural fit interview carries 50% weightage on talent selection.
• New employees are offered $2000 to quit after the first week of training if they decide the job is
not for them.
• Budget for team building and culture promotion.
• Culture fit promotes culture and happy employees, which ultimately leads to happy customers.
 BU8601 – Application: Zappos
American online shoe and clothing PAGE 57

retailer
Founded in 1999 by Nick Swinmurn, Tony Hsieh &
Alfred Lin
Revenue growth – 1999 à $1.6 mil to 2008 à $1 bil
Indicators of a well-managed Zappos
• Emphasis on Culture fit à Cultural fit interview carries 50% weightage on talent selection.
• New employees are offered $2000 to quit after the first week of training if they decide the job is
not for them.
• Budget for team building and culture promotion.
• Culture fit promotes culture and happy employees, which ultimately leads to happy customers.
 BU8601 – Application: Zappos
American online shoe and clothing PAGE 58

retailer
Founded in 1999 by Nick Swinmurn, Tony Hsieh &
Alfred Lin
Revenue growth – 1999 à $1.6 mil to 2008 à $1 bil
Indicators of a well-managed Zappos
• Emphasis on Culture fit à Cultural fit interview carries 50% weightage on talent selection.
• New employees are offered $2000 to quit after the first week of training if they decide the job is
not for them.
• Budget for team building and culture promotion.
• Culture fit promotes culture and happy employees, which ultimately leads to happy customers.

What has it got to do with management?

BU8601 – Application: Zappos
Culture drives Strategy

Zappos’ Strategy à Service Differentiation

• Approach: Build it from the Inside Out

• Build a culture via bringing the right people
together that embrace the same cultural
values.
• Their ‘marketing dollars’ are right people,
training and customer service.

• Long-term financial growth strategy is Culture fit

promotes culture and happy employees, which
ultimately leads to happy customers.
BU8601 – Application: Zappos
Strategy shapes Structure

Zappos’ Strategy à Service Differentiation

• Approach: Build it from the Inside Out

• Build a culture via bringing the right people together
that embrace the same cultural values.
• Their ‘marketing dollars’ are right people, training and
customer service.

• Long-term financial growth strategy is Culture fit promotes

culture and happy employees, which ultimately leads to happy
customers.
BU8601 – Application: Zappos
Strategy shapes Structure

Zappos’ Strategy à Service Differentiation

• Approach: Build it from the Inside Out

• Build a culture via bringing the right people together
that embrace the same cultural values.
• Their ‘marketing dollars’ are right people, training and
customer service.

• Long-term financial growth strategy is Culture fit promotes

culture and happy employees, which ultimately leads to happy
customers.
BU8601 – Application: Zappos
Strategy shapes Structure

Zappos’ Strategy à Service Differentiation

• Approach: Build it from the Inside Out

• Build a culture via bringing the right people together
that embrace the same cultural values.
• Their ‘marketing dollars’ are right people, training and
customer service.

• Long-term financial growth strategy is Culture fit promotes

culture and happy employees, which ultimately leads to happy
customers.
BU8601 – Application: Zappos
Strategy shapes Structure

Zappos’ Strategy à Service Differentiation

• Approach: Build it from the Inside Out

• Build a culture via bringing the right people together
that embrace the same cultural values.
• Their ‘marketing dollars’ are right people, training and
customer service.

• Long-term financial growth strategy is Culture fit promotes

culture and happy employees, which ultimately leads to happy
customers.
BU8601 – Application: Zappos
Strategy shapes Structure

Zappos’ Strategy à Service Differentiation

• Approach: Build it from the Inside Out

• Build a culture via bringing the right people together
that embrace the same cultural values.
• Their ‘marketing dollars’ are right people, training and
customer service.

• Long-term financial growth strategy is Culture fit promotes

culture and happy employees, which ultimately leads to happy
customers.
Reflection (Internalisation)
 Reflection: Internalisation

What kind of manager you want to be?

What kind of environment you want to create for your team?

What are the traits/competencies you want to develop to be a great manager?

What are the challenges for a manager for the future?

BU8601 Assessment - is based on:
a) Understanding fundamental concepts/principles
b) Applying the principles to case scenarios & real settings

n Individual Quizzes 20%

n Reflection Journals 20%

n Tutorial Participation 15%

n Peer Evaluation 5%

n Group Project (written) 40%

(4-5 members/team)

For more info., please read the Course Outline & Group Project
instructions
v To learn some fundamentals of management…

v Why?

v Because…
vYou will probably report to a manager
at some stage in your career

vYou might become a manager at some stage!

 Why do BU8601?
v Start with the end in mind:
vWhat do I want to get from this course?

vA certain grade?

vCertain knowledge?

vCertain skills?

v Write down your goals (we’ll spend some time on them next
week)
 BU8601
PAGE 70

See you next week!