2–1. recap on last week lesson management not an exact science – some say it is an art acquired...
TRANSCRIPT
2–1
Recap on last week lessonRecap on last week lesson
• Management not an exact science – some say Management not an exact science – some say it is an art it is an art acquired over time and with acquired over time and with experienceexperience
• There is not necessarily a “right” or “wrong” There is not necessarily a “right” or “wrong” way – different peopleway – different people
• - different circumstances- different circumstances• - different organisations- different organisations• - different countries- different countries
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Recap (cont’d)Recap (cont’d)
What is a Manager?What is a Manager?
Robbins, Bergman, Stagg & Coulter (2009), a Robbins, Bergman, Stagg & Coulter (2009), a manager is someone who coordinates and manager is someone who coordinates and oversees the work of others so that the oversees the work of others so that the organisational goals can be accomplishedorganisational goals can be accomplished..
What makes a “good” Manager?What makes a “good” Manager?
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RecapRecap• Why study management?Why study management?• It is universal, you will either manage or be It is universal, you will either manage or be
managed.managed.• Understanding of the management process will Understanding of the management process will
help you to build your skills, help you to build your skills, enhancing enhancing (raise to a (raise to a higher level )your personal and professional higher level )your personal and professional development.development.
• The universal need is that it isThe universal need is that it is:-:-• In all organisations small to largeIn all organisations small to large• All types of organisations profit & not-for-profitAll types of organisations profit & not-for-profit• All areas from manufacturing to marketing etcAll areas from manufacturing to marketing etc• Across levels bottom to topAcross levels bottom to top
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cont’dcont’d• What are the rewards and challenges being a What are the rewards and challenges being a
manager in today’s work place?manager in today’s work place?
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Exhibit 1–12Exhibit 1–12 Rewards and Challenges of Being A ManagerRewards and Challenges of Being A Manager
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Management Management HistoryHistory
ChapterChapter
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Management
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Learning OutcomesLearning OutcomesFollow this Learning Outline as you read and study Follow this Learning Outline as you read and study this chapter.this chapter.
2.1 Historical Background Of Management.
• Explain why studying management history is important.Explain why studying management history is important.
• Describe some early evidences of management practice.Describe some early evidences of management practice.
• Describe two important historical events that are significant to Describe two important historical events that are significant to the study of management.the study of management.
2.2 Classical Approach.Classical Approach.
• Describe the important contributions made by Frederick W. Describe the important contributions made by Frederick W. Taylor and Frank and Lillian Gilbreth.Taylor and Frank and Lillian Gilbreth.
• Discuss Fayol’s and Weber’s contributions to management Discuss Fayol’s and Weber’s contributions to management theory.theory.
• Explain how today’s managers use scientific management and Explain how today’s managers use scientific management and general administrative theory.general administrative theory.
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Learning OutcomesLearning Outcomes2.3 Quantitative Approach.
• Explain what the quantitative approach has Explain what the quantitative approach has contributed to the field of management.contributed to the field of management.
• Describe total quality management.
• Discuss how today’s managers use the quantitative Discuss how today’s managers use the quantitative approachapproach..
2.4 Behavioral approach. • Describe the contributions of the early advocates of
OB.• Explain the contributions of the Hawthorne Studies to
the field of management.• Discuss how today’s managers use the behavioral
approach.
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Learning OutcomesLearning Outcomes
2.5 Contemporary Approach
• Describe an organization using the systems approach.Describe an organization using the systems approach.
• Discuss how the systems approach helps us Discuss how the systems approach helps us understand management.understand management.
• Explain how the contingency approach is appropriate Explain how the contingency approach is appropriate for studying managementfor studying management.
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Historical Background of Historical Background of ManagementManagement
• Ancient Management (1400s)Ancient Management (1400s) Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall) Venetians (floating warship assembly lines)Venetians (floating warship assembly lines)
• Adam SmithAdam Smith Published Published The Wealth of Nations The Wealth of Nations in 1776in 1776
Advocated the division of labor (job specialization) to increase Advocated the division of labor (job specialization) to increase the productivity of workersthe productivity of workers
Breakdown of jobs into narrow and repetitive tasks.Breakdown of jobs into narrow and repetitive tasks.
• Industrial RevolutionIndustrial Revolution Substituted machine power for human laborSubstituted machine power for human labor Created large organizations in need of managementCreated large organizations in need of management
HISTORY OF MANAGEMENTHISTORY OF MANAGEMENT
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• Management has existed for thousands of years Management has existed for thousands of years • Early civilizations – massive projects (e.g. Early civilizations – massive projects (e.g.
pyramids in Egypt)pyramids in Egypt)
Can you think of any other major projects or events that Can you think of any other major projects or events that would have required effective and efficient management would have required effective and efficient management skills?skills?
• These examples from the past demonstrate that These examples from the past demonstrate that organizations have been around for thousands organizations have been around for thousands of years and that manage has been practiced. of years and that manage has been practiced.
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IN MORE MODERN TIMES …IN MORE MODERN TIMES …
• 1776: Adam Smith wrote “The Wealth of 1776: Adam Smith wrote “The Wealth of Nations”, outlining economic advantages of:Nations”, outlining economic advantages of: Division of labourDivision of labour Job specialisationJob specialisation
• 1818thth Century, the Industrial Revolution saw shift Century, the Industrial Revolution saw shift from human power to machine power – a shift from human power to machine power – a shift from from craft craft to to productionproduction
• Allowed large scale production but needed more Allowed large scale production but needed more effective management to be economicaleffective management to be economical
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Class discussionClass discussion• Explain why division of labour and the industrial Explain why division of labour and the industrial
revolution are important to the study of revolution are important to the study of managementmanagement
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Exhibit 2–1 Major Approaches to ManagementExhibit 2–1 Major Approaches to Management
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Major Approaches to Major Approaches to ManagementManagement
• ClassicalClassical• QuantitativeQuantitative• BehavioralBehavioral• ContemporaryContemporary
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Scientific ManagementScientific Management• Fredrick Winslow TaylorFredrick Winslow Taylor
The “father” of scientific managementThe “father” of scientific management
Published Published Principles of Scientific ManagementPrinciples of Scientific Management (1911) (1911) The theory of scientific managementThe theory of scientific management
– Using scientific methods to define the “one best way” for a Using scientific methods to define the “one best way” for a job to be done:job to be done:
• Putting the right person on the job with the correct tools Putting the right person on the job with the correct tools and equipment.and equipment.
• Having a standardized method of doing the job.Having a standardized method of doing the job.
• Providing an economic incentive to the worker.Providing an economic incentive to the worker.
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Exhibit 2–2 Taylor’s Scientific Management PrinciplesExhibit 2–2 Taylor’s Scientific Management Principles
1. Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the worker.
3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed.
4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.
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Scientific Management (cont’d)Scientific Management (cont’d)• Frank and Lillian GilbrethFrank and Lillian Gilbreth
Focused on increasing worker productivity through Focused on increasing worker productivity through the reduction of wasted motionthe reduction of wasted motion
Developed the microchronometer to time worker Developed the microchronometer to time worker motions and optimize work performancemotions and optimize work performance
• How Do Today’s Managers Use Scientific How Do Today’s Managers Use Scientific Management?Management? Use time and motion studies to increase productivityUse time and motion studies to increase productivity Hire the best qualified employeesHire the best qualified employees Design incentive systems based on outputDesign incentive systems based on output
GENERAL ADMINISTRATIVE GENERAL ADMINISTRATIVE THEORISTSTHEORISTS• Scientific management focused on tasks Scientific management focused on tasks
performed by workers and designing better performed by workers and designing better practices – supervision by first-line managers practices – supervision by first-line managers (supervisors)(supervisors)
• General administration focused on what managers General administration focused on what managers at all levels do – provided a set of general at all levels do – provided a set of general principles for managers to followprinciples for managers to follow
• Henri Fayol – Management Functions (Planning, Henri Fayol – Management Functions (Planning, Organising, Leading, Controlling)Organising, Leading, Controlling)
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Exhibit 2–3 Fayol’s Principles of Exhibit 2–3 Fayol’s Principles of Management Management
1.1. Division of workDivision of work
2.2. AuthorityAuthority
3.3. DisciplineDiscipline
4.4. Unity of commandUnity of command
5.5. Unity of directionUnity of direction
7.7. RemunerationRemuneration
8.8. CentralizationCentralization
9.9. OrderOrder
10.10. EquityEquity
11.11. Stability of tenure Stability of tenure of personnelof personnel
12.12. InitiativeInitiative
WEBER’S IDEAL BUREAUCWEBER’S IDEAL BUREAUCRACYRACY
• Weber, early 1900s: structural design of Weber, early 1900s: structural design of organisations organisations
• BureaucracyBureaucracy ideal form for large organisation ideal form for large organisation Division of labourDivision of labour Clearly defined hierarchyClearly defined hierarchy Detailed rules and regulationsDetailed rules and regulations Impersonal relationshipsImpersonal relationships
• Similar to Fayol’s principles but some differences? Similar to Fayol’s principles but some differences? What are these?What are these?
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Exhibit 2–4Exhibit 2–4 Weber’s BureaucracyWeber’s Bureaucracy
ORGANISATIONAL BEHAVIOURORGANISATIONAL BEHAVIOUR• Hawthorne studiesHawthorne studies• Focus on the Focus on the actionsactions and and behaviourbehaviour of people in of people in
organisations, not just on how they do a task, organisations, not just on how they do a task, e.g. e.g. MotivationMotivation Leadership (and ‘followership’)Leadership (and ‘followership’) TeamworkTeamwork Conflict managementConflict management TrustTrust Organisational commitmentOrganisational commitment
• Influenced by application of Influenced by application of psychologypsychology to to behaviour in organisationsbehaviour in organisations
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ORGANISATIONAL BEHAVIOURORGANISATIONAL BEHAVIOUR• Organisations as Organisations as socialsocial systems – people- systems – people-
oriented not impersonal and just about taskoriented not impersonal and just about task
• Managers’ job to influence, motivate and Managers’ job to influence, motivate and communicate not just commandcommunicate not just command
• Organisations contain both individuals and Organisations contain both individuals and groups – need to study group dynamicsgroups – need to study group dynamics
• Recognition of individual differences, e.g. Recognition of individual differences, e.g. skills, learning, motivations, etc. skills, learning, motivations, etc.
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Quantitative Approach to Quantitative Approach to ManagementManagement
• Quantitative ApproachQuantitative Approach Also called Also called operations researchoperations research or or management management
sciencescience Evolved from mathematical and statistical methods Evolved from mathematical and statistical methods
developed to solve WWII military logistics and quality developed to solve WWII military logistics and quality control problemscontrol problems
Focuses on Focuses on improving managerial decision making improving managerial decision making by by applying:applying: Statistics, optimization models, information models, and Statistics, optimization models, information models, and
computer simulationscomputer simulations
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Exhibit 2–5 What Is Quality Management? Exhibit 2–5 What Is Quality Management?
Intense focus on the customer
Concern for continual improvement
Process-focused
Improvement in the quality of everything
Accurate measurement
Empowerment of employees
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The Contingency ApproachThe Contingency Approach• Contingency Approach DefinedContingency Approach Defined
Also sometimes called the Also sometimes called the situational approach.situational approach.
There is no one There is no one universally applicable set of universally applicable set of management principles (rules) management principles (rules) by which to manage by which to manage organizations.organizations.
Organizations are Organizations are individually different, face different individually different, face different situations (contingency variables), and require situations (contingency variables), and require different ways of managing.different ways of managing.
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Exhibit 2–8Exhibit 2–8 Popular Contingency VariablesPopular Contingency Variables
• Organization size• As size increases, so do the problems of coordination.
• Routineness of task technology• Routine technologies require organizational structures,
leadership styles, and control systems that differ from those required by customized or non-routine
technologies.
• Environmental uncertainty• What works best in a stable and predictable environment
may be totally inappropriate in a rapidly changing and unpredictable environment.
• Individual differences• Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations.
SUMMARYSUMMARY• Classical/scientific managementClassical/scientific management
Focus on production, task, organizational structuresFocus on production, task, organizational structures Employees as Employees as doers doers (‘workers’)(‘workers’)
• Human relationsHuman relations Focus on people: what motivates employees to work, Focus on people: what motivates employees to work,
psychology and behaviour, keeping employees happypsychology and behaviour, keeping employees happy Employees as Employees as feelersfeelers
• Human resourcesHuman resources People and task: empowerment, employees as valuable People and task: empowerment, employees as valuable
resources and sources of innovationresources and sources of innovation Employees as Employees as thinkers thinkers
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TRADITIONAL TO MODERN: TRADITIONAL TO MODERN: CHANGESCHANGES
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© 2007 Prentice Hall, Inc. All rights reserved.
Organizational Organizational Culture and Culture and Environment:Environment:The ConstraintsThe Constraints
ChapterChapter
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© 2007 Prentice Hall, Inc. All rights reserved. 3–36
L E A R N I N G O U T L I N E L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.
•The EnvironmentThe Environment
• Describe the components of the specific and general Describe the components of the specific and general environments.environments.
• Identify the most common organizational stakeholders.Identify the most common organizational stakeholders.
• Explain the four steps in managing external stakeholder Explain the four steps in managing external stakeholder relationships.relationships.
© 2007 Prentice Hall, Inc. All rights reserved. 3–37
L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.
•The Organization’s CultureThe Organization’s Culture
• Describe the seven dimensions of organizational culture.Describe the seven dimensions of organizational culture.
• Discuss the impact of a strong culture on organizations Discuss the impact of a strong culture on organizations and managers.and managers.
• Explain the source of an organization’s culture.Explain the source of an organization’s culture.
• Describe how culture affects managers.Describe how culture affects managers.
© 2007 Prentice Hall, Inc. All rights reserved. 3–38
Exhibit 3–1Exhibit 3–1 Parameters of Managerial DiscretionParameters of Managerial Discretion
© 2007 Prentice Hall, Inc. All rights reserved. 3–39
Defining the External Defining the External EnvironmentEnvironment• External EnvironmentExternal Environment
Those factors and forces outside the organization that Those factors and forces outside the organization that affect the organization’s performance. affect the organization’s performance.
• Components of the External EnvironmentComponents of the External Environment Specific environment:Specific environment: external forces that have a external forces that have a
direct and immediate impact on the organization.direct and immediate impact on the organization.
General environment:General environment: broad economic, socio- broad economic, socio-cultural, political/legal, demographic, technological, cultural, political/legal, demographic, technological, and global conditions that and global conditions that maymay affect the organization. affect the organization.
© 2007 Prentice Hall, Inc. All rights reserved. 3–40
Exhibit 3–9Exhibit 3–9 The External Environment FactorsThe External Environment Factors
© 2007 Prentice Hall, Inc. All rights reserved. 3–41
How the Environment Affects How the Environment Affects ManagersManagers• Environmental UncertaintyEnvironmental Uncertainty
The extent to which managers have knowledge of The extent to which managers have knowledge of and are able to predict change their organization’s and are able to predict change their organization’s external environment is affected by:external environment is affected by: Complexity of the environment:Complexity of the environment: the number of components the number of components
in an organization’s external environment.in an organization’s external environment.
Degree of change in environmental components:Degree of change in environmental components: how how dynamic or stable the external environment is.dynamic or stable the external environment is.
© 2007 Prentice Hall, Inc. All rights reserved. 3–42
Stakeholder RelationshipsStakeholder Relationships• StakeholdersStakeholders
Any constituencies in the organization’s environment Any constituencies in the organization’s environment that are affected by the organization’s decisions and that are affected by the organization’s decisions and actionsactions
• Why Manage Stakeholder Relationships?Why Manage Stakeholder Relationships?
It can lead to improved organizational performance.It can lead to improved organizational performance.
It’s the “right” thing to do given the interdependence It’s the “right” thing to do given the interdependence of the organization and its external stakeholders.of the organization and its external stakeholders.
© 2007 Prentice Hall, Inc. All rights reserved. 3–43
Managing Stakeholder Managing Stakeholder RelationshipsRelationships1.1. Identify the organization’s external Identify the organization’s external
stakeholders.stakeholders.
2.2. Determine the particular interests and Determine the particular interests and concerns of the external stakeholders.concerns of the external stakeholders.
3.3. Decide how critical each external stakeholder Decide how critical each external stakeholder is to the organization.is to the organization.
4.4. Determine how to manage each individual Determine how to manage each individual external stakeholder relationship.external stakeholder relationship.
© 2007 Prentice Hall, Inc. All rights reserved. 3–44
Exhibit 3–12Exhibit 3–12 Organizational StakeholdersOrganizational Stakeholders
© 2007 Prentice Hall, Inc. All rights reserved. 3–45
The Organization’s CultureThe Organization’s Culture• Organizational CultureOrganizational Culture
A system of shared meanings and common beliefs A system of shared meanings and common beliefs held by organizational members that determines, in a held by organizational members that determines, in a large degree, how they act towards each other.large degree, how they act towards each other.
““The way we do things around here.”The way we do things around here.” Values, symbols, rituals, myths, and practicesValues, symbols, rituals, myths, and practices
Implications:Implications: Culture is a perception.Culture is a perception.
Culture is shared.Culture is shared.
Culture is descriptive.Culture is descriptive.
© 2007 Prentice Hall, Inc. All rights reserved. 3–46
Exhibit 3–2Exhibit 3–2 Dimensions of Organizational CultureDimensions of Organizational Culture
© 2007 Prentice Hall, Inc. All rights reserved. 3–47
How Culture Affects ManagersHow Culture Affects Managers• Cultural Constraints on ManagersCultural Constraints on Managers
Whatever managerial actions the organization Whatever managerial actions the organization recognizes as proper or improper on its behalfrecognizes as proper or improper on its behalf
Whatever organizational activities the organization Whatever organizational activities the organization values and encouragesvalues and encourages
The overall strength or weakness of the The overall strength or weakness of the organizational cultureorganizational culture
Simple rule for getting ahead in an organization:Simple rule for getting ahead in an organization:
Find out what the organization rewards and do those things.Find out what the organization rewards and do those things.
Introduction – the reportIntroduction – the report
• In 1991 the Australian government In 1991 the Australian government commissioned a report on leadership and commissioned a report on leadership and management skills in Australia. management skills in Australia.
• In 1995 the report was delivered and was In 1995 the report was delivered and was named; Enterprising Nation: named; Enterprising Nation:
• Renewing Australias Managers to meet the Renewing Australias Managers to meet the challenges of the Asia-Pacific Century: Report challenges of the Asia-Pacific Century: Report of the Industry Task force on Management & of the Industry Task force on Management & Leadership skills –now widely known as the Leadership skills –now widely known as the ‘Karpin Report’.‘Karpin Report’.
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Karpin report – Key findingsKarpin report – Key findings
• Attracting and developing quality staffAttracting and developing quality staff• Executive managementExecutive management• HR practitioners are key implementersHR practitioners are key implementers• 95% of organisations claim a relationship between 95% of organisations claim a relationship between
mgt dev & org performancemgt dev & org performance• 87% of organisations use performance mgt 87% of organisations use performance mgt
systemssystems• ResourcingResourcing
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• Informal v formal learningInformal v formal learning• Coaching & mentoringCoaching & mentoring• Evaluation is criticalEvaluation is critical• Commitment to management developmentCommitment to management development
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Karpin Report – recommendations Karpin Report – recommendations
• 28 recommendations in (1995) some listed below:-28 recommendations in (1995) some listed below:-• Development of organisational cultureDevelopment of organisational culture• Leadership initiativeLeadership initiative• Management for diversityManagement for diversity• Frontline manager programFrontline manager program• Australian Council for Management DevelopmentAustralian Council for Management Development
As a result of the Karpin Report a significant shift in focus As a result of the Karpin Report a significant shift in focus on management skills began – now all on management skills began – now all technical/vocational courses as well as HE have technical/vocational courses as well as HE have significant elements of management trainingsignificant elements of management training
Managers play key role in organisations Managers play key role in organisations successfully doing what they do!successfully doing what they do!
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Future issues/opportunities:Future issues/opportunities:
• Professor Danny Samson prepared a report Professor Danny Samson prepared a report with Innovation & Business Skills Australia Ltd, with Innovation & Business Skills Australia Ltd, where funding was provided by the where funding was provided by the Commonwealth Government through the Commonwealth Government through the Department of Education, Employment and Department of Education, Employment and Workplace Relations (DEEWR), this report Workplace Relations (DEEWR), this report named:-named:-
• Karpin Report Revisited:Karpin Report Revisited:• Leadership and Management Challenges in Leadership and Management Challenges in
Australia, (March, 2011)Australia, (March, 2011)
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Future = now to 2030Future = now to 2030
• 9 themes have been identified from the report 9 themes have been identified from the report as challenges and opportunities facing as challenges and opportunities facing managers and their organisations today and managers and their organisations today and into the future:-into the future:-
• LeadershipLeadership• Sustainable developmentSustainable development• Innovation, entrepreneurshipInnovation, entrepreneurship• Management educationManagement education
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cont’dcont’d
• DiversityDiversity
• Global influences and international business Global influences and international business
opportunitiesopportunities
• People managementPeople management
• Risk & volatilityRisk & volatility
• Australian demographic and cultureAustralian demographic and culture
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Further challenges exist :-Further challenges exist :-
Further challenges' that exist for business Further challenges' that exist for business management include:-management include:-•the recent GFC (global financial crisis) which still the recent GFC (global financial crisis) which still has reverberationshas reverberations•Acts of terrorismActs of terrorism•Technological disruptionsTechnological disruptions•Extreme weather eventsExtreme weather events•Unpredictable price fluctuations on important Unpredictable price fluctuations on important products and services (eg oil)products and services (eg oil)
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OrganisationsOrganisations
• Without organisations – no Managers!Without organisations – no Managers!• Organisation – Organisation – ““deliberate arrangement of deliberate arrangement of
people to accomplish some specific purpose” people to accomplish some specific purpose” (Text page 7)(Text page 7)
• Range from large corporate companies to Range from large corporate companies to small sole-trader businesses, government small sole-trader businesses, government departments, charities, clubsdepartments, charities, clubs
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OrganisationsOrganisations
• 3 Core 3 Core Elements/Characteristics of Elements/Characteristics of an organisation:an organisation:
Distinct Distinct PurposePurpose – goals and – goals and objectivesobjectives
PeoplePeople – usually more than 1 – usually more than 1 person requiredperson required
Deliberate Deliberate StructureStructure – many – many different types – open, different types – open, flexible, rigidflexible, rigid
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Purpose
PeopleStructure
OrganisationsOrganisations
• Change and evolve over timeChange and evolve over time
• Different structures & Different structures & approaches neededapproaches needed
• Successful managers evolve Successful managers evolve and adapt with the changes and adapt with the changes in the organisationin the organisation
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Purpose
People Structure
• Key issues Key issues directly directly impacting upon impacting upon organisational organisational performanceperformance
Attracting and retaining Attracting and retaining talenttalent
• Developing leadership skillsDeveloping leadership skills
• Emphasis on individual Emphasis on individual development needs and development needs and individual effectivenessindividual effectiveness
• Using performance Using performance management initiativesmanagement initiatives
FUTURE ISSUESFUTURE ISSUES
Organisations are ChangingOrganisations are Changing
• WhyWhy are they changing? are they changing?The world is changing!: The world is changing!: Social, Technological, Social, Technological,
Economical, GlobalEconomical, Global – – to get the job done (being to get the job done (being successful) organisations must change and successful) organisations must change and adaptadapt
• What do these changes mean?What do these changes mean?For Staff ……?For Staff ……?For Managers …..?For Managers …..?
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Old StructureOld Structure
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Customer
New StructureNew Structure
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Layers of management
reducing.Top Manager
“Closer”to Customer
Layers of management
reducing.Top Manager
“Closer”to Customer
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Establishing Reporting Establishing Reporting Relationships:Relationships:
Tall versus Flat OrganizationsTall versus Flat Organizations Tall Organizations
◦ Are more expensive because of the number of managers involved.
◦ Foster more communication problems because of the number of people through whom information must pass.
Flat Organizations◦ Lead to higher levels of
employee morale and productivity.
◦ Create more administrative responsibility for the relatively few managers.
◦ Create more supervisory responsibility for managers due to wider spans of control.
Things have changedThings have changed
• The guest is up the top of the pyramidThe guest is up the top of the pyramid• The GM is on the bottomThe GM is on the bottom• Higher labour costsHigher labour costs• Fewer associates do the same amount of workFewer associates do the same amount of work• Organisations are more flexible in their desire to Organisations are more flexible in their desire to
delight the guestdelight the guest• Some hotels have rapid response team who Some hotels have rapid response team who
respond to urgent guest needsrespond to urgent guest needs
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GUESTS
FRONTLINE ASSOCIATES
FIRST LEVEL MANAGERS
MIDDLE MANAGERS
GM/TOPMANAGERS
PRESIDENT
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• Current trends in organisational Current trends in organisational structuresstructures
• In most T&H organisations there are evidence of a In most T&H organisations there are evidence of a reduction in middle managementreduction in middle management. .
• The layer of management has been reduced from The layer of management has been reduced from an average of an average of seven (7)seven (7) to just to just four (4)four (4). .
• Most assistant managers positions have Most assistant managers positions have disappeared disappeared
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