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Introduction to Management

Arnhem Business school 2005 IFA

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Manager and Management

The basic concepts of managementOrganizations and managementManagers, what kind of people are they

Defining ManagementCharacteristics of managersOrganizations and organizing

The nature of today’s management

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Definitions

Organization - A group of people with formally assigned roles who work together to achieve the stated goals of the group.

Manager - A person who plans, organizes, leads, and controls the work of others so that the organization achieves its goals.

Management - The managers of an organization; or the study of what manager do.

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levels of management and types of Managers

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Management Functions

Planning

Leading

Resources

Controlling Organizing

Performance

•Human

•Financial

•Raw Materials

•Technological

•Information

•Attain goals

•Products

•Services

•Efficiency

•Effectiveness

Use influence to motivate employees

Select goals and ways to attain

them

Assign responsibility for task accomplishment

Monitor activities and make corrections

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Definition of Management

The attainment of organizational goals in an effective and efficient manner through:

PlanningOrganizingLeadingControlling organizational resources

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Management SkillsManagement Level

Top Managers

Middle Managers

First-Line Managers

Non-managers (Personnel)

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Planning

The process of setting goals and courses of action, developing rules and procedures, and forecasting future outcomes.

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PLANNING

Setting goalsDeciding on courses of actionDeveloping rules & proceduresDeveloping plans (for organization

and individuals)Forecasting

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ORGANIZING

Identifying jobs to be doneHiring people to do themEstablishing departmentsDelegatingEstablishing a chain of commandCoordination of work

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LEADING

Influencing people to get the job done

Maintaining moraleMolding company cultureManaging conflictsManaging communication

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CONTROLLING

Setting standards (i.e. sales quotas)

Comparing performance with standards

Taking corrective action as required

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Managers: born or made?

Manager or leader

Management capabilities; knowledge. Skills and attitude

The competence of a good manager

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Do You Want to be a Manager?

Personality & InterestsSocial orientationEnterprising orientation

CompetenciesCareer anchorManagerial competence

Achievements

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Today’s organization and challenges

TechnologyNew business modelsStrive to remain competitive in the global arenaDeal with uncertain environmentsCutbacksMassive worldwide economic, political, and social

shifts

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Future

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The New Leader

Ask to do more with lessTo engage whole employeesTo see change rather than

stability as the nature of thingsCreate vision and cultural values

promoting a collaborative workplace

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Definition - Organizing

Arranging

the activities of the enterprise

in such a way that they

systematically

contribute

to the enterprise's goals.

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Creating Departments 1 Around functions - Grouping activities around basic functions like

marketing, finance, and human resources.

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Creating Departments 2

Around products - Organization is centred around the company’s products or services, or for each family of products.

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Matrix Organization

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Flat Versus Tall Organizations

Flat organizations - Have fewer levels, and each manager is responsible for a relatively large number of subordinates.

Tall organizations - Have more levels, and each manager has only a few subordinates reporting directly to him/her.

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Management theoriesThe first management theories

Scientific management theoryHuman relation theoryManagement process theory

The modern schools of management theoryStructure theory, Revisionism, Decision-making theory

etc.Organizational democracy

The roll of the EU and the EU-legislationThe German and Dutch system

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Management Perspectives over Time

1930Humanistic Perspective

19901890

Classical 1940

1950

2000Systems Theory

2000

2010The Technology-Driven Workplace

1990

2010The Learning Organization

1970Contingency Views

2000

1980Total Quality Management

2000

1940Management Science Perspective

1990

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The rise of ‘scientific management’

F.W. Taylor. (1856-1915) efficiency central issue opportunities to raise productivity levels division of work between management

and workmen process planning and work preparation

separated money as stimulus

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The rise of ‘human relations theory’

Mayo (1880-1949)

based on research in the Hawthorne factories from 1924 to 1932

morale of the workers could be affected by the management style

satisfaction in the work place strictly depends on the informal social group pattern

managers need to acquire social skills

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The rise of management process theory

Henri Fayol (1841-1925)

first systematic analysis of the elements of management behaviour in governing a business

Planning, organizing, leading, coordinating and controlling

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The modern schools of management

Structure theory Revisionism Decision-making theory Communication and information theory Systems theory Strategy theory Environment theory Theory of the growth and development of

organizations Contingency theory.

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Three Contemporary Trends

Systems theoryContingency viewTotal quality

management (TQM)

Managers need certain core skills and basic understanding of management and leadership if they plan to operate within a

TQM System.

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Contingency View

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Organisations and the environment

external influencesexternal and internal adoption and matchingexternal stakeholdersenvironmental factors (demographic,

economic, societal, technological etc.)relevant trends in the environmentCultural differences

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Stakeholders

The Business

StockholdersEmployees

Community

CustomersSuppliers

Managers

Organizational Environment

Management

Employees Culture

Internal Environment

Suppliers

Com

petitors

Customers

Labo

r Mar

ket

Legal / PoliticalEconomic

Technological

Socio-culturalIn

tern

atio

nal

General Environment

Task Environment

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How Companies Go Abroad?

Exporting - Selling goods through foreign sales agents and distributors.

Licensing - A situation where a firm grants a foreign firm the right to use intangible (or intellectual) property, such as patents.

Franchising - Granting of a right by a parent company to another firm to do business in a prescribed manner (McDonalds).

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Why Companies Go Abroad?

Foreign Direct Investment - Operations in one country controlled by entities in a foreign country.

Joint Ventures - Participation of two or more companies where contribution and risk are shared.

Wholly Owned Subsidiaries - A firm that is 100% owned by a foreign firm.

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The International Manager Economic Environment

Economic System Economic Development Exchange Rates Economic Integration & Free Trade

Political & Legal Environment Trade Barriers Political Risks Legal Systems

Sociocultural Environment Cross-Cultural Challenges Values Language

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Process of International Management

Planning Issues - Process of setting goals and courses of action.

Organizing Issues - How the business will be organized to handle international portions of the business.

International Leadership - How are managers supposed to act in other countries?

Controlling Issues - Comparing standards to actual performance in many locations

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Organizational Culture

What is it? – A characteristic set of values and ways of behaving that employees in an organization share.

Cultural Artefacts – Signs and symbols of corporate culture.

Patterns of Behaviour – Ceremonial events, written and spoken comments, and actual behaviour that contribute to corporate culture.

Values & Beliefs – Guiding standards that state what should be practiced.

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The Manager’s Influence

Clarify expectations.

Use signs & symbols.

Use stories.

Use rites & ceremonies.

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Decision making and creativity

The nature of decision makingThe decision-making processThe creative and learning organization

Individual behaviourGroup behaviourMotivation theories

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Understanding Decision Making

Decision - A choice made between available alternatives.

Decision-making - The process of developing and analyzing alternatives and choosing from among them.

Problem - A discrepancy between a desirable and actual situation.

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Types of Decisions

Programmed - Tend to be repetitive and can be solved through procedures laid out in advance.

Nonprogrammed - Tend to be unpredictable and require more intuition and creativity.

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Levels & Decision-Making

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Rational Decision-Making Process Define the problem - Make sure to define (frame) the problem

correctly, not just the symptoms. Identify & weight the criteria - Achieve several objectives or satisfy

many criteria. Decide which is most important, easily solved, and cost effective.

Develop alternatives - Decide on options to meet goals. Analyze the alternatives - Examine the consequences of each

action. Make a choice - After examining pros and cons, choose an option. Implement the decision - Actually act on the choice that is made,

i.e., allocate resources to accomplish the task. Evaluate the decision - Collect information on the decision and the

process, and learn from the good and bad decisions.

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The Meaning of Ethics

Ethics - The study of standards of conduct and moral judgment; also, the standards of right conduct.

Normative Judgment - A comparative evaluation stating or implying that something is good or bad, right or wrong, better or worse.

Morality - A society’s accepted norms of behaviour.

1. Something may be legal but not right.2. Individuals, many times, decide what is morally right

and wrong.3. The organization has the ability to shape decision

making.

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How Managers Make Decisions

Perception - Prior experiences and position in a company can affect how an individual perceives and reacts to a problem.

Systematic vs. Intuitive - Individuals differ in how they approach problems from the logical to the trial-and-error approach.

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Group Decision-MakingPros

More ideas from more people, fosters acceptance, groups work harder to implement decisions.

Cons

Pressure for consensus, potential dominance by an individual, time consuming, pressure to win an argument.

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Improving Group Decision-Making

Brainstorming - Throw around ideas even if some of them are not well thought out.

Devil’s -Advocate Approach - Having a routine set up to examine the pros and cons of any idea.

Delphi Technique - A round-based approach using experts in a field. Use of one round’s written opinions form the basis for the next round.

Stepladder Technique - Group members are added one-by-one so that new members are untainted by previous discussions and points of view.

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Introduction to HRM

The new context for Human talent development and human resource management

HRM – management of personnel and instruments

The added value of HRM and HRD

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HR Management as a Strategic Partner

Formulating strategy - Supply competitive information, including incentive plans and legislation.

Executing strategy - Implementing incentive plans and collecting and disseminating information from the grievance process.

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Personnel Planning & Recruiting

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Employee Recruiting

Current employeesAdvertisingEmployment agenciesTemporary help agenciesExecutive recruitersReferrals and walk-insCollege recruiting

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Selecting Employees

Application formsTesting for Employee SelectionInterviews

Plan the interview.Establish rapport.Ask questions.Close the interview.Review the interview.

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Orientation and Training

Orienting employees - Means providing new employees with basic information on things like work rules and vacation policies.

Training techniques:On-the-job trainingTeletraining

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Other Topics in HR Management

Employee appraisals

Compensation

Grievances and discipline