CHAPTER 1

THE CHALLENGE OF MANAGEMENT

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Lecture outline
• Overview of management
• What managers actually do
• Managerial qualities
• Management job roles
• 21st century management

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 Learning Objectives
1. Explain four management functions and their
interrelationships
2. Identify three common managerial work methods that
influence what managers do and provide practical examples
of how these apply
3. Describe the 10 major roles that managers need to engage in
4. Identify the main factors influencing work agendas and how
agendas can channel manager’s efforts.

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Learning Objectives cont.
5. Delineate three major managerial skills type
6. Distinguish between effectiveness and efficiency in
regard to organisational performance
7. Explain how manager’s job differ between
hierarchical levels and how managers can foster
innovation through entrepreneurial role
8. Identify significant twenty-first century management
trends

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Overview of management
‘Management is the achievement of
organisational goals by engaging in the four
major functions of planning, organising,
leading and controlling.’

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Overview of management
• Planning
The process of setting goals and deciding how best to
achieve them.
• Organising
The process of allocating human and non-human resources
so that plans can be carried out successfully.
• Leading
The process of influencing others to engage in the work
behaviours necessary to reach organisational goals.
• Controlling
The process of regulating organisational activities so that
actual performance conforms to expected organisational
standards and goals.
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 Overview of management
Achievement of organisational goals via:

1. Planning

2. Organising

3. Leading

4. Controlling

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The management process
To be successful, the functions of planning,
leading, organising and controlling need to be
linked to:
• Work agenda.
• Work methods and roles.
With reliance upon an organisational pool of
knowledge and management skills, which leads to:
• Organisational performance.

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 What managers actually do
Henry Mintzberg’s study of managers
concluded:
• They perform great quantity of work at
unrelenting pace.
• Work typically varied, fragmented, brief.
• Prefer to deal with current, specific, ad hoc
issues.

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What managers actually do
• Effective managers at the centre of a network
of contacts.
• Prefer verbal communication—especially via
phone.
• Control of own activities—good information
essential for this control.

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Managerial roles
• Interpersonal
• Informational
• Decisional
• Negotiator

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Interpersonal role
• Figureheads: Projecting a set of values,
communicating an image.
• Leader role: Needs to be informed, as well
as informing. Leadership skills commonly
lacking in managers.
• Liaison role: Developing channels of
communication, especially informal channels
with other corporate directors, political
connections, media, public figures.
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Informational role
• Monitor: Sifting, sorting, selecting information
(to help set the agenda)—phone, meetings,
memos, social functions, mail, public
gatherings.
• Disseminator: The passing of relevant
information to subordinates.
• Spokesperson: Has to be able to express it,
have solid verbal skills—right message at
right time.

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Decisional
• Entrepreneurial: Ability to identify
opportunities and threats — able to do this in
diverse situations—work or leisure.
• Disturbance handler: More information
available, likely correct decision made.
• Resource allocator: To divisions or
departments, managers need to have an
understanding of what resources are needed
for effective functioning (e.g. budget
gamesmanship).
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Negotiator
Managers need precise and relevant
information to facilitate this role. Therefore, the
best managers:
• Place themselves at the centre of a vast
network of contacts that are social, political,
occupational, organisational, international.
• Can sift, sort, select valuable information.
• Have secretaries who network, who filter and
edit information to avoid overload.
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Managerial knowledge,
performance & skills
• Knowledge base
Knowledge of industry, product, market, technology
etc.
• Key management skills
Technical, human & conceptual.
• Performance goals
Effectiveness & efficiency.

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 Vertical differences in
management roles
Top managers —planning, conceptual skills

Middle managers —mixed skill needs

First line managers/supervisors —leading, technical skills

Operational level staff

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Horizontal differences in
management roles
• Entrepreneurial managers
Growth focus
• Functional managers
Specific, technical focus
• General managers
Broad, whole of organisation/unit responsibilities
• Project managers
Integrative, team focus

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Promoting innovation: the entrepreneurial skills
• Innovation
– A new idea of involving/improving a
process/product/service
• Idea champion
– Generates new idea/believe and support it
• Sponsor
– Middle manager, gets it funded
• Orchestrator
– High level manager shows the need for innovation, funds
innovation

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21st century management
• Change & innovation
• Markets & technology
• Diversity: markets, products & staff
• Globalisation
• Total quality management and business process re-
engineering
• Internet application in business processes
• Knowledge management and learning organisation

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Lecture summary
• Overview of management
– Management function (PLOC).
• What managers actually do
– Roles: interpersonal, decisional, informational, negotiator.
– Work agenda & methods.
• Managerial knowledge, skills & performance
– Management job types.
– Vertical & horizontal differences in management roles.
• 21st century management
– Change, innovation, diversity, globalisation, quality &
organisational development.
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Managing Creative People

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