Introduction

The World of Innovative Management

 Learning Outcomes
◉ After studying this chapter, you should be able to:
1. Define the four management functions and the type of management activity associated with
each.
2. Explain the difference between efficiency and effectiveness and their importance for
organizational performance.
3. Describe technical, human, and conceptual skills and their relevance for managers.
4. Describe management types and the horizontal and vertical differences between them.
5. Define ten roles that managers perform in organizations.

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◉ the more unpredictable the environment, the greater the

opportunity—if [managers] have the . . . skills to
capitalize on it.

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Why study Management?

◉ Universality of Management
◉ The reality of work
◉ Rewards and challenges of being a manager

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Why Study Management ?

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 Why managers are important to
organizations
◉ Organizations need their managerial skills and abilities more
than ever in uncertain ,complex, and chaotic times
◉ They’re critical to getting things done.
◉ Managers contribute to employee productivity and loyalty

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Defining Management

“The art of getting things done through people” Mary Parker

“Give direction to their organizations, provide leadership, and decide how to

use organizational resources to accomplish goals” Peter Drucker

Management is the attainment of organizational goals in an effective

and efficient manner through planning, organizing, leading and
controlling

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 Organizational Performance

An organization is a social entity that is goal-directed and

deliberately structured.

◉ The ultimate responsibility of managers is to achieve high performance, which is the attainment
of organizational goals by using resources in an efficient and effective manner

◉ Organizational effectiveness is the degree to which the organization achieves a stated goal
◉ Organizational efficiency is the use of minimal resources to produced desired output

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“Good management is the art of

making problems so interesting and
their solutions so constructive that
everyone wants to get to work and
deal with them.”

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The Basic Functions of Management

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 The Four Management Functions

◉ Planning. identifying goals for future organizational performance and

deciding on the tasks and use of resources needed to attain them.
◉ Organizing involves assigning tasks, delegating authority and allocating
resources across the organization.
◉ Leading is the use of influence to motivate employees to achieve
organizational goals.
◉ Controlling means monitoring employees’ activities, determining whether the
organization is moving toward its goals, and making corrections as necessary

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The Process of Management

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 Management Skills

◉ Technical skills --- the understanding and proficiency in the

performance of specific tasks
◉ Human skills ---- the manager’s ability to work with and
through other people and to work effectively as a group
member
◉ Conceptual skills---cognitive abilities to see the organization
as a whole system and the relationships among its parts.
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 Technical Skills

◉ The ability to use procedure, techniques expertise and

knowledge of a specialized field
◉ First line managers and middle level managers are heavily
involved in technical aspects of the organization’s operation
◉ Become less important as manager moves into higher levels
of management

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 Human skills

◉ Managers with good human skills get the best out of their
people.
◉ People want managers who listen to them, build positive
relationships, and show an interest in their lives and careers
◉ They know how to communicate, motivate, lead, and inspire
enthusiasm and trust.
◉ These skills are equally important to all levels of management
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 Conceptual Skills

◉ The ability to think and to conceptualize about abstract

and complex situations
◉ Essential to effective decision making
◉ Become more important as manager move into top
management position

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Relationship of Technical, Human, and Conceptual
Skills to Management

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 Which skill is needed?

1. Writing Monthly report

2. Negotiating with union
3. Counselling
4. Interview staff
5. Creating new company policy
6. Conducting training for staff

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 Management Types
Managers are responsible for different departments, work at different levels in the
hierarchy, and meet different requirements for achieving high performance.
Vertical Differences
_ Top Managers
_ Middle Managers
_ First Line Managers
Horizontal Differences
_ Functional Managers
_ General Managers

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 Management Types (Vertical Differences)

Top Managers
Make decisions about the direction of the organization, setting goals and designing strategies
Examples : president, executive vice president, managing director, chief operating officer, or chief
executive officer.
Middle Managers
They are responsible for implementing the overall strategies and policies defined by top managers
Examples: Regional manager, project leader, store manager, or division manager
First- line Managers
Responsible for the production of goods and services
Examples: supervisors, shift managers, district managers, department managers, or office managers

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 Management Types (Horizontal Differences)
1. Functional managers
Responsible for departments that perform a single functional task and have employees with
similar training and skills.
Functional departments include advertising, sales, finance, human resources,
manufacturing, and accounting
a) Line managers are responsible for the manufacturing and marketing departments that
make or sell the product or service.
b) Staff managers are in charge of departments, such as finance and human resources,
that support line departments.
2. General managers
Responsible for several departments that perform different functions 22
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 Mintzberg’s Manager Roles
◉ A role is a set of expectations for a manager’s behavior
1.Informational (managing by information)
_ Monitor, disseminator, spokesperson
2. Interpersonal (managing through people)
_ Figurehead, leader, liaison
3. Decisional (managing through action)
_ Entrepreneur, disturbance handler, resource allocator, negotiator

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 Manager Roles

◉ Informational roles describe the activities used to maintain and

develop an information network
◉ Interpersonal roles pertain to relationships with others
◉ Decisional roles pertain to those events about which the manager
must make a choice and take action.

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 Interpersonal role

◉ Figurehead: A source of inspiration. Projecting

confidence and security
◉ Leader: To lead them towards a specific goal
◉ Liaison: To liaise with variety of people internal and
external to organization

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 Informational Roles

◉ Monitor: Constantly monitor and track changes in the

corresponding industry
◉ Disseminator: Getting important information out quickly
and effectively to the rest of the team
◉ Spokesperson :Being the representative of team when it
comes to meeting and announcements

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 Decisional Roles

◉ Entrepreneur: Thinking like entrepreneur in terms of quickly

solving problems and thinking of new ideas
◉ Disturbance Handler: Getting back on track after a problem
◉ Resource Allocator: Utilizing resources efficiently
◉ Negotiator: Represent team or department’s interests; represent
department during negotiation of budgets, union contracts,
purchases
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 Contemporary Challenges for
Management
◉ Our modern world has turned into the world of constant changes,
adjustments, and contradictions, depending on ever changing
demands of the market economy system
◉ The changes impacting managers’ jobs include global economic
and political uncertainties, changing workplaces, ethical issues,
security threats, and changing technology

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 Contemporary Challenges

1. Managing for Competitive Advantage— Staying Ahead of Rivals

2. Managing for Information Technology— Dealing with the “New
Normal”
3. Managing for Diversity— The Future Won’t Resemble the Past
4. Managing for Globalization—The Expanding Management
Universe
5. Managing for Ethical Standards
6. Managing for Sustainability—The Business of Green
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 Let’s review some concepts
◉ Managers coordinate and oversee the
work of other people so that
organizational goals can be
accomplished
◉ Managerial roles refers to specific
actions or behaviors expected of
and exhibited by a manager
◉ The four functions of management include planning (defining
goals, establishing strategies, and developing plans), organizing
(arranging and structuring work), leading (working with and
through people), and controlling (monitoring, comparing, and
correcting work performance).
Managers need three critical skills
in managing: technical, human,
and conceptual
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