eme3056 lecture slide 1

Chapter 1: Introducing Management

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Acknowledgment

Most of the materials, including graphs tables

and formulas used in the development of this

course are mostly taking from

Schermerhorn, “Management, 9th edition", John

Wiley.

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Planning Ahead — Chapter 1 Study Questions

1. What are the challenges of working in the

new economy?

2. What are organizations like in the new

workplace?

3. Who are the managers and what do they do?

4. What is management process?

5. How do you learn the essential managerial

skills and competencies?

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Overview of the New Workplace

� A highly competitive global economy has created unparalleled opportunities and unprecedented uncertainties.

� Smart people and smart organizations create their own futures.

� Companies with a future are committed to people.

� Companies with a future have high performance expectations and provide supportive work environments.

� High performing companies gain extraordinary results from people.

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Study Question 1: What are the challenges of working in the new economy?

� Intellectual capital …

� Globalization …

� Technology …

� Diversity …

� Ethics …

� Corporate governance …

� Careers …

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� People are the ultimate foundations of organizational performance.

� Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value.

� A knowledge worker adds to the intellectual capital of an organization.

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� National boundaries of world

business have largely disappeared.

� Globalization is the worldwide

interdependence of resource flows,

product markets, and business

competition that characterize the

new economy.

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� Technology …

� Continuing transformation of the modern workplace through:

� The Internet

� World Wide Web

� Computer networking

� Information technology

� Telecommuting/virtual teaming

� Increasing demand for knowledge workers with the skills to fully use technology.

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� Diversity …

� Workforce diversity reflects differences with respect to gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness.

� A diverse and multiculturalworkforce both challenges and offers opportunities to employers.

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� Diversity …

• How diversity bias can occur in the

workplace:

� Prejudice

� Discrimination

� Glass ceiling effect

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� Ethics� Code of moral principles that set

standards of conduct.

� Ethical expectations for modern businesses:

� Integrity and ethical leadership

� Natural environment

� Consumer protection

� Human rights

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� Corporate governance

� Active oversight of management decisions and company actions by board of directors.

� More emphasis today on restoring strength of corporate governance:

� Boards to hold management more accountable for ethical and socially responsible behavior

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� Careers …

� Core workers, contract workers, and part-time workers.

� People must be prepared to be any one of these types of workers.

� People must make sure that their skillsare portable and of current value in employment markets.

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� Critical skills for success in the new workplace …� Mastery - skills

� Contacts - people

� Entrepreneurship - business

� Love of technology - IT

� Marketing – product

� Passion for renewal - improvement


Before we go to next question lets look at this first:

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� Organization

� Organization as an open systems

� Organizational performance� Productivity

� Performance effectiveness

� Performance efficiency

� Workplace changes

Study Question 2: What are organizations like in the new workplace?

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� Organization

� A collection of people working

together to achieve a common

purpose.

� Organizations provide useful goods

and/or services that return value to

society and satisfy customer needs.

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� Organizations are open systems

� Composed of interrelated parts that function together to achieve a common purpose.

� Interact with their environments.

� Transform resource inputs into product outputs (goods and services).

� Environmental feedback tells organization how well it is meeting the needs of customers and society.

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Figure 1.1 Organizations as open systems.

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� Organizational performance

� “Value creation” is a very important notion for organizations.

� Value is created when an organization’s operations adds value to the original cost of resource inputs.

� When value creation occurs:

� Businesses earn a profit.

� Nonprofit organizations add wealth to society.

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� An overall measure of the quantity and quality of work performance with resource utilization taken into account.


� An output measure of task or goal accomplishment.


� An input measure of the resource costs associated with goal accomplishment.

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Figure 1.2 Productivity and the dimensions of

organizational performance.

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Figure 1.2 Productivity and the dimensions of

organizational performance.

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� Workplace changes that provide a context for studying management …� Belief in human capital

� Demise of “command-and-control”

� Emphasis on teamwork

� Preeminence of technology

� Embrace of networking

� New workforce expectations

� Concern for work-life balance

� Focus on speed

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� Importance of human resources and

managers …

� People are not ‘costs to be controlled.’

� High performing organizations treat

people as valuable strategic assets.

� Managers must ensure that people are

treated as strategic assets.

Before we go to next question lets look at this first:


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Study Question 3: Who are managers and what do they do?

� Who is a manager

� Levels of management

� Responsibilities of team leaders

� Types of managers

� Managerial performance and accountability

� Quality of work life (QWL)

� High performing managers

� The organization that values people

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� A manager is a person in an

organization who directly supports and

activates the work efforts and

performance accomplishments of others.

� The people who managers facilitate are

the ones whose tasks represent the real

work of the organization.

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� Top managers — responsible for

performance of an organization as a

whole or for one of its larger parts.

� Middle managers — in charge of

relatively large departments or divisions.

� Team leaders or supervisors — in charge

of a small work group of non-managerial

workers.

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� Responsibilities of team leaders (1):

� Plan meetings and work schedules.

� Clarify goals and tasks, and gather ideas for improvement.

� Appraise performance and counsel team members.

� Recommend pay raises and new assignments.

� Recruit, develop, and train team members.

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� Responsibilities of team leaders (2-cont.):

� Encourage high performance and teamwork.

� Inform team members about organizational goals and expectations.

� Inform higher levels of work unit needs and accomplishments.

� Coordinate with others teams and support the rest of the organization.

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� Types of managers� Line managers are responsible for work

activities that directly affect organization’s outputs.

� Staff managers use technical expertise to advise and support the efforts of line workers.

� Functional managers are responsible for a single area of activity.

� General managers are responsible for more complex units that include many functional areas.

� Administrators work in public and nonprofit organizations.

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� Managerial performance and

accountability

� Accountability is the requirement of one

person to answer to a higher authority

for relevant performance results.

� Effective managers fulfill performance

accountability by facilitating others to

achieve high performance outcomes and

experience satisfaction in their work.

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� An indicator of the overall quality of human experiences in the workplace.

� QWL indicators:

� Fair pay

� Safe working conditions

� Opportunities to learn and use new skills

� Room to grow and progress in a career

� Protection of individual rights

� Pride in work itself and in the organization

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� High performing managers …

� Are well informed of their team’s needs.

� Work alongside those they supervise.

� Provide advice and develop support for

their team.

� Facilitate their people to perform to the

best of their abilities.

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� The organization as an upside-down

pyramid …

� Each individual is a value-added worker.

� A manager’s job is to support workers’

efforts.

� The best managers are known for

facilitating and supporting.

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Figure 1.3 The organization viewed as an

upside-down pyramid.

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Study Question 4: What is the management process?

� Four functions of management

� Managerial activities and roles• Interpersonal Role

• Informational Role

• Decisional Role

� Characteristics of managerial work

� Managerial agendas and networks

� Lifelong learning

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� Management is the process of

planning, organizing, leading, and

controlling the use of resources to

accomplish performance goals.

� All managers are responsible for the

four functions.

� The functions are carried on

continually.

Four functions of management

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Figure 1.4 Four functions of management.

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� Functions of management …

� Planning

� The process of setting objectives and

determining what actions should be taken

to accomplish them.

� Organizing

� The process of assigning tasks, allocating

resources, and arranging the coordinated

activities of individuals and groups to

implement plans.

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� Functions of management …

� Leading

� The process of arousing people’senthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives.

� Controlling

� The process of measuring workperformance, comparing results to objectives, and taking corrective action as needed.


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� Managerial activities and roles …

� Interpersonal roles

� Involve interactions with persons inside and outside the work unit.

� Informational roles

� Involve giving, receiving, and analyzing of information.

� Decisional roles

� Involve using information to make decisions in order to solve problems or address opportunities.


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Figure 1.5 Mintzberg’s 10 Managerial Roles.

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• Figurehead

• Leader

• Liaison

Interpersonal

• Monitor

• Disseminator

• Spokesperson

Informational

• Entrepreneur

• Disturbance Handler

• Resource Allocator

• Negotiator

Decisional

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� Interpersonal Role:

� Figurehead: the manager represents the organization in all matters of formality

� Leader: defines the relationshipsbetween the manager and employees

� Liaison: the manager interacts with peers and people outside the organization

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� Informational Role:

� Monitor: manager receives and collectsinformation

� Disseminator: the manager transmitsspecial information into the organization

� Spokesperson: The manager disseminates the organization's information into its environment

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� Decisional Role:

� Entrepreneur: the manager initiateschange

� Disturbance handler: the manager dealswith threats to the organization

� Resource allocator: the manager chooses where the organization will expend its efforts

� Negotiator: the manager negotiates on behalf of the organization

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� Managers work long hours.

� Managers work at an intense pace.

� Managers work at fragmented and varied tasks.

� Managers work with many communication media.

� Managers work largely through interpersonal relationships.


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� Agenda setting

� Development of action priorities for one’s job.

� Include goals and plans that span long and short time frames.

� Networking

� Process of building and maintaining positive relationships with people whose help may be needed to implement one’s work agendas.


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� The process of continuously learning from daily experiences and opportunities.

� Career success depends on real commitment to learning.

� Not just formal classroom learning.


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Study Question 5: How do you learn the essential managerial skills and competencies?

� Essential managerial skills� Katz’s Essential Managerial Skills

� Managerial competency

� Competencies for managerial success

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� Essential managerial skills

Skill — the ability to translate knowledge into action

that results in desired performance.

� Technical skill — the ability to apply a special

proficiency or expertise to perform particular

tasks.

� Human skill — the ability to work well in

cooperation with others.

� Conceptual skill — the ability to think critically

and analytically to solve complex problems.

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Figure 1.6 Katz’s Essential Managerial Skills.

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� Managerial competency …

� A skill-based capability that contributes to high

performance in a management job.

� Managerial competencies are implicit in:

� Planning, organizing, leading, and controlling.

� Informational, interpersonal, and decisional

roles.

� Agenda setting and networking.

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� Competencies for managerial success:

� Communication

� Teamwork

� Self-management

� Leadership

� Critical thinking

� Professionalism

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MEN VS MACHINE COST BENEFIT

5.0%5.0%SALARY INCREMENT PER YEAR

RM200,000TOTAL MACHINE COST/ YEARRM52,200SALARY + BENEFITS PER YEARRM146,160SALARY + BENEFITS PER YEAR

RM50,000MAINTENANCE COST 10%/YRRM4,350SALARY + BENEFITS/MONTHRM12,180SALARY + BENEFITS/MONTH

5.0%MAINTENANCE COST RM1,350BENEFIT (45% OF SALARY)RM3,780BENEFIT (45% OF SALARY)

RM150,000BANK PAYMENT PER YEARRM3,000SALARY FOR 3 WORKERSRM8,400SALARY FOR 9 WORKERS

10 YEARSASSUME BANK PAYMENTRM1,000SALARY PER WORKER/MONTHRM700SALARY PER WORKER/MONTH

5.0%INTEREST RATE3NO OF WORKERS PER DAY =12NO OF WORKERS PER DAY =

RM1,000,000COST OF MACHINE1NO OF WORKERS PER SHIFT =4NO OF WORKERS PER SHIFT =

MACHINE OPERATION COST1 MAN PER SHIFT4 MEN PER SHIFT

INSTALLING A MACHINE

1 MAN PER SHIFT

NO MACHINE

4 MEN PER SHIFT

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MEN VS MACHINE COST BENEFIT

BREAK EVEN ANALYSIS

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

YEAR

COST

Machine &

maintenance

1 man

Machine,

maintenance

+ 1 man

4 men

No

machine

Breakeven point

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SMI – Small and Medium Industries in the Country

� SMIs accounted for 96.5% of total manufacturing establishments.

� The largest contributors to SMIs total output were Food Products & Beverages (32.3%), Chemical & Chemical Products (16.5%), Rubber & Plastics Products (10.2%) and Furniture (4.1%).

� Industries registering higher productivity growth: Chemical & Chemical Products, Petroleum Products, Office Accounting & Computing Machinery, Wood & Wood Products, Basic Metals, and Radio, Television & Communication Equipment.

MPC PRODUCTIVITY REPORT 2007

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� Technology …

� Diversity …

� Ethics …

� Corporate governance …

� Careers …

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� Organization

� Organization as an open systems




� Workplace changes

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� Who is a manager


� Responsibilities of team leaders

� Types of managers

� Managerial performance and accountability


� High performing managers


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� Four functions of management

� Managerial activities and roles• Interpersonal Role

• Informational Role

• Decisional Role




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� Essential managerial skills� Katz’s Essential Managerial Skills

� Managerial competency

� Competencies for managerial success

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