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Leadership and Management Module - W01
Leadership and Management Module - W01
Lecturer
Andrea Dezi (MD, MBA)
University of Macerata
Director of the Internationalization Strategies Office
INTRODUCTION
week 01/10
ISBA International School of Banking Academy of Vietnam
Introduction
Introduction
Introduction
Good managers create value. The reason is that in being a manager you have a
multiplier effect: Your influence on the organization is multiplied far beyond the
results that can be achieved by just one person acting alone. Thus, while a solo
operator such as a salesperson might accomplish many things and incidentally
make a very good living, his or her boss could accomplish a great deal more and
could well earn two to seven times the income.
ISBA International School of Banking Academy of Vietnam
Defining management
Defining management
Defining management
Defining management
Pyramid Power:
Levels and
Areas of Management
Defining management
Pyramid Power: Levels and Areas of Management
Top managers make long-term decisions about the overall direction of the
organization and establish the objectives, policies, and strategies for it. Attention
to the environment outside the organization, being alert for long-run
opportunities and problems and devising strategies for dealing with them.
Middle managers implement the policies and plans of the top managers above
them and supervise and coordinate the activities of the first-line managers
below them. Titles might include plant manager, district manager, and regional
manager, among others. In the nonprofit world, middle managers may have
titles such as clinic director, dean of student services, and the like
ISBA International School of Banking Academy of Vietnam
Defining management
Pyramid Power: Levels and Areas of Management
First-line managers make short term operating decisions, directing the daily
tasks of non managerial personnel, who are of course, all those people who
work directly at their jobs but don’t oversee the work of others.
Defining management
Areas of Management: Functional Managers versus General Managers
Whatever the names of the departments, the organization is run by two types
of managers—functional and general. (These are line managers, with authority
to direct employees. Staff managers mainly assist line managers.)
ISBA International School of Banking Academy of Vietnam
Defining management
Areas of Management: Functional Managers versus General Managers
Functional Managers: Responsible for One Activity If your title is Vice President
of Production, Director of Finance, or Administrator for Human Resources, you
are a functional manager. A functional manager is responsible for just one
organizational activity.
Defining management
Areas of Management: Functional Managers versus General Managers
Defining management
Managers for Three Types of Organizations: Profit, Non profit, Mutual-Benefit
2. Non profit Organizations: For Offering Services Managers in nonprofit organizations are often known
as administrators. Nonprofit organizations may be either in the public sector or in the private sector,
such as Stanford University. Either way, their purpose is to offer services to some clients, not to make a
profit. Examples of such organizations are hospitals, colleges, and social-welfare agencies (the Salvation
Army, the Red Cross).
One particular type of nonprofit organization is called the commonweal organization. Unlike nonprofit
service organizations, which offer services to some clients, commonweal organizations offer services to
all clients within their jurisdictions. Examples are the military services, the Vn Postal Service, and your
local fire and police departments.
ISBA International School of Banking Academy of Vietnam
Defining management
Managers for Three Types of Organizations: for Profit, Non profit, Mutual-Benefit
The single biggest difference, however, is that in a for-profit organization, the measure of
its success is how much profit (or loss) it generates. In the other two types of
organizations, although income and expenditures are very important concerns, the
measure of success is usually the effectiveness of the services delivered—how many
students were graduated, if you’re a college administrator, or how many crimes were
prevented or solved, if you’re a police chief.
ISBA International School of Banking Academy of Vietnam
Defining management
The Manager’s Roles: Mintzberg’s Useful Findings
Henry Mintzberg in the late 1960s, shadowed five chief executives for a week
and recorded their working lives. And what he found is valuable to know, since it
applies not only to top managers but also to managers on all levels.
Here are three of Mintzberg’s findings, important for any prospective manager:
1. A Manager Relies More on Verbal than on Written Communication
Writing letters, memos, and reports takes time. Most managers in Mintzberg’s
research tended to get and transmit information through telephone
conversations and meetings. No doubt this is still true, although the
technologies of e-mail, texting, and Twitter now make it possible to
communicate almost as rapidly in writing as with the spoken word.
ISBA International School of Banking Academy of Vietnam
Defining management
The Manager’s Roles: Mintzberg’s Useful Findings
Long hours at work are standard, he found, with 50 hours being typical and up
to 90 hours not unheard of. More recently, decades following the Mintzberg
research, another study found that many professionals worked a whopping 72
hours a week, including weekend work.
ISBA International School of Banking Academy of Vietnam
Defining management
The Manager’s Roles: Mintzberg’s Useful Findings
The practice of mindfulness can help overcome these tendencies (How Good
Are You at Focusing Your Thoughts, Controlling Your Impulses, and Avoiding
Distractions?”).
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Subordinate Worker
Except senior managers, other Some managers spend time
managers have to be doing the work in organizations.
subordinates for their Head of a department in a
superiors. university might be a teacher
So, they have to advice, assist sometimes.
and influence their boss.
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Pratical action
So what is mindfulness?
Mindfulness is “the awareness that emerges through paying attention on purpose, in the present
moment, and nonjudgmentally to the unfolding of experience moment by moment.”
In case you are thinking this sounds like an impractical trait for a busy manager to cultivate, consider that
learning how to focus just on the task or conversation at hand is actually an invaluable way to get more
done. Meditation is called a practice because it’s a skill that you improve over time.
If you’re new to it, try repeating this simple method for five minutes a day:
Sit still in a quiet place, inhale while counting to seven, hold your breath for seven counts, and exhale
for seven counts. Clear your mind, thinking of nothing but your breathing, and if you find other
thoughts intruding, don’t be discouraged. Put them gently aside and try again. If you find it helpful,
place a neutral object in front of you on which to focus, like a candle or a small object that has religious
or spiritual meaning for you, or close your eyes.
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Roles of managers
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ISBA International School of Banking Academy of Vietnam
Defining management
Three Types of
Managerial
Roles:
Interpersonal
Informational
Decisional
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4. Roles of managers
Mintzberg (1973)
Informational
• Monitor
• Disseminator
• Spokesperson
Interpersonal
• Figurehead
• Leader
• Liaison
Decisional
• Entrepreneur
• Disturbance handler
• Resource allocator
• Negotiator
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Information roles
Information roles refer to activities collecting data, distributing data and official state
information
Interpersonal roles
Derive from manager’s formal authority and status, and shape relations with people within and
beyond the organization
Defining management
Three Types of Managerial Roles: Interpersonal, Informational, and Decisional
Decisional roles
week 01/10
ISBA International School of Banking Academy of Vietnam
In the mid-1970s, researcher Robert Katz found that through education and
experience managers acquire three principal skills—technical, conceptual, and
human
ISBA International School of Banking Academy of Vietnam
Among the chief skills companies seek in top managers are the following:
■ The ability to motivate and engage others.
■ The ability to communicate.
■ Work experience outside the United States.
■ High energy levels to meet the demands of global travel and a 24/7 world.
ISBA International School of Banking Academy of Vietnam
Management competences
Companies want to hire career-ready college graduates. In this section
we describe a model of career readiness and offer tips for building
your readiness
Recent surveys of college graduates and recruiters reveal a big gap in the
degree of readiness each group perceives in students.
ISBA International School of Banking Academy of Vietnam
Management competences
Closing the gaps for three reasons:
1. To get a job and earn more money. Today’s jobs require greater interpersonal
or soft skills, and employers are willing to pay higher salaries to those possessing
them.
2. To impress employers with your self-awareness. Companies prefer to hire
people with realistic perceptions of their own strengths and weaknesses. This
underscores the need to obtain information about your strengths and
weaknesses throughout your career.
3. To create your own motivation to learn. Studies of human behavior reveal
that people won’t spend time on personal development unless they feel the
need. Overinflated perceptions of career readiness will not motivate you to
develop the attributes that enhance that readiness. You need to motivate
yourself to learn and develop.
ISBA International School of Banking Academy of Vietnam
Management competences
KSAO
Four key categories of competency fuel career readiness: knowledge, soft skills,
attitudes, and other characteristics (KSAOs for short)
2. Soft Skills (S) We defined soft skills above as interpersonal or “people” skills
needed for success at work. These are not knowledge or technical skills.
Soft skills are becoming increasingly important as companies outsource and
automate routine tasks.
ISBA International School of Banking Academy of Vietnam
Pratical action
Willingness is at
the center of
developing your
career readiness.
This reinforces the
point that it’s up to
you to shape and
direct your future.
ISBA International School of Banking Academy of Vietnam
Theories of management
Classical theorists, including Administrative (Fayol) and Scientific
(Taylor).
week 01/10
ISBA International School of Banking Academy of Vietnam
Theories of management
Two Overarching Perspectives about Management:
Historical and Contemporary
Theories of management
ISBA International School of Banking Academy of Vietnam
Theories of management
ISBA International School of Banking Academy of Vietnam
Theories of management
The classical viewpoint, which emphasized ways to manage work more efficiently, had two
approaches:
Scientific management, pioneered by Frederick W. Taylor and Frank and Lillian Gilbreth,
emphasized the scientific study of work methods to improve the productivity of individual
workers.
Administrative management, pioneered by Charles Spaulding, Henri Fayol, and Max
Weber, was concerned with managing the total organization.
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Behavioral approach
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Quantitative viewpoint
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ISBA International School of Banking Academy of Vietnam
Quantitative viewpoint
Three contemporary management perspectives are (1) the systems, (2) the contingency, and
(3) the quality management viewpoints.
1. The systems viewpoint sees organizations as a system, either open or closed, with
inputs, outputs, transformation processes, and feedback. The systems viewpoint has led
to the development of complexity theory, the study of how order and pattern arise
from very complicated, apparently chaotic systems.
2. The contingency viewpoint emphasizes that a manager’s approach should vary
according to the individual and environmental situation. It is a forerunner to
evidence-based management.
3. The quality management viewpoint has two traditional approaches: quality control, the
strategy for minimizing errors by managing each stage of production, and quality
assurance, which focuses on the performance of workers, urging employees to strive for
zero defects. A third quality approach is the movement of total quality management 48
ISBA International School of Banking Academy of Vietnam
Three contemporary management perspectives are (1) the systems, (2) the contingency, and
(3) the quality management viewpoints.
1. The systems viewpoint sees organizations as a system, either open or closed, with
inputs, outputs, transformation processes, and feedback. The systems viewpoint has led
to the development of complexity theory, the study of how order and pattern arise
from very complicated, apparently chaotic systems.
2. The contingency viewpoint emphasizes that a manager’s approach should vary
according to the individual and environmental situation. It is a forerunner to
evidence-based management.
3. The quality management viewpoint has two traditional approaches: quality control, the
strategy for minimizing errors by managing each stage of production, and quality
assurance, which focuses on the performance of workers, urging employees to strive for
zero defects. A third quality approach is the movement of total quality management 49
ISBA International School of Banking Academy of Vietnam
Theories of management:
management Contemporary Perspective
ISBA International School of Banking Academy of Vietnam
Contingency theories
Global
environment
Macro
environment
Micro-environ
ment/
industry
environment
Internal
environment
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Contingency theories
There is no best way to manage.
There is no one best way of managing that is effective in some situations may not
be successful in others.
The optimal management style is contingent upon various internal and external
constraints.
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Contingency theories
1. There is no universal or one best way to manage
2. Wide range of external and internal factors must be considered,
and the focus should be on the action that best fits the given
situation.
3. Effective organizations not only have a proper 'fit' with the
environment but also between its subsystems
4. The needs of an organization are better satisfied when it is
properly designed, and the management style is appropriate
both to the tasks undertaken and the nature of the work group.
5. Each managers situation must be viewed separately.
6. Managers need to be developed in skills that are most useful in
identifying the important situational factors.
ISBA International School of Banking Academy of Vietnam
Theories of management
For example, we can illustrate how the division of labour and clear authority can improve
the efficiency and productivity of an organization; in a manufacturing company, the
division of labour can allow each employee to specialize in specialized tasks, thus
ISBA International School of Banking Academy of Vietnam
Theories of management
For example, we can show how a manufacturing company implemented time and
motion studies to identify inefficiencies in manufacturing processes and make
improvements. For example, a detailed analysis of worker movements can optimize
line layout and reduce wasted time.
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Theories of management
Theories of management
Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book
'The Practice of Management'. In the 90s, Peter Drucker himself decreased the
significance of this organization management method, when he said: "It's just another
tool. It is not the great cure for management inefficiency... Management by Objectives 57
works if you know the objectives, 90% of the time you don't."
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According to Drucker managers should "avoid the activity trap", getting so involved in
their day to day activities that they forget their main purpose or objective.
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ISBA International School of Banking Academy of Vietnam
The MBO style is appropriate for knowledge-based enterprises when your staff is
competent. It is appropriate in situations where you wish to build employees'
management and self-leadership skills and tap their creativity, tacit knowledge and
initiative.
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Management by objectives
Set
Reward
organizational
Achievers
objectives
Progress
monitor
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Why are managers important?
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No Activities Role
1 Find information
2 Make decisions
3 Go to ceremony
4 Calculate the resources needed
5 Deal the price with the suppliers
6 Contact with government officers
7 Email the customer feedbacks for related departments
8 Motivate the subordinates
9 Report to the upper level management
10 Build the plan to deal with Covid 19
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