Management in Turbulent

Times
 Learning Objectives
• What is management? Organization?
• What are the skills managers need?
• What roles do managers perform?
• What management competencies are needed today?
• How is leadership viewed today?
• Describe the general and task environments and the dimensions of
each.
• Explain the strategies managers use to help organizations adapt to
an uncertain or turbulent environment.
• Define corporate culture and give organizational examples.

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 Definition of Management

• The attainment of organizational

goals in an effective and efficient
manner through
• Four functions
– planning,
– organizing,
– leading, and
– controlling organizational resources.

Managers
10/8/2016 use a multitude of skills to perform functions 3
 Management Terms

Organizations Are collections of people who work together &

coordinate their actions to achieve their goals.
A Goal Is a desired future outcome that an organization
strives to achieve.
Management Is the planning, organizing, leading, & controlling of
resources to achieve organizational goals
effectively & efficiently.
Resources Are assets such as people, machinery, raw
materials, information, skills, and financial capital.
Managers Are the people responsible for supervising the use
of an organization's resources to achieve its goals
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 History of Management

• 3 Major Schools or movements emerged:

1. Classical Management Movement:
2. Behavioral Management Movement
3. ContemporaryManagement Movement

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 Classical Management Movement

• Frederick Taylor (1856-1915)

– Centered on Employees as Individuals and their tasks to
improve productivity.
– Its main concern was to maximize individual outputs.
• Henri Fayol (1841- 1915):
– Centered on the Structure of Organization.
– Fayol identified 5 basic functions for a Manager:
1. Planning 3. Organizing
3. Commanding 4. Coordinating
5. Controlling

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 Behavioral Management Movement

• By 1920s and 1930s, it was evident that

Scientific Management was inadequate.
• The “Behavioral Management Movement” set
more concerns on:
– Human Psychology,
– Human Relations.
– Motivation
– Leadership.

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Behavioral Management Movement

Human Relations Movement:

The concept recognizes that people have
their own unique needs and motives that
they bring to the workplace with them.

Abraham Maslow (1943) was the pioneer in

that respect

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Maslow’s Hierarchy of Needs
 Efficiency

• Is a measure of how well or how productively

resources are used to achieve a goal.
• Organizations are efficient when managers
minimize the amount of input resources.

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 Effectiveness

• Is a measure of the appropriateness of the

goals that managers have selected for the
organization to pursue, & of the degree to
which the organization achieves those
goals.

• Organizations are effective when

managers choose appropriate goals &
then achieve them.
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 Organizational Performance

• Organization - social entity that is goal

directed and deliberately structured
• Effectiveness - degree to which organization
achieves a stated goal
• Efficiency - use of minimal resources (raw
materials, money, and people) to produce the
desired volume of output
• Performance – organization’s ability to attain
its goals by using resources in an efficient and
effective manner
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 Organizational Performance

Is a measure of how efficiently & effectively

managers use resources to achieve
organizational goals & customer’s
satisfaction.

Organizational Performance  Efficiency + Effectiveness

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 Efficiency, Effectiveness, & Performance in an
Organization
Efficiency

Low High
Effectiveness

Low Efficiency / High Effectiveness High Efficiency / High Effectiveness

Result: Result:

High Service wanted by customer but Service wanted by customer with

expensive good price and high quality

Low Efficiency / Low Effectiveness High Efficiency / Low Effectiveness

Result: Result:

Low Low quality service that customer High quality service that customer
don’t want don’t want

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 Organizational Performance

Attainment of organizational goals in

an efficient and effective manner

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 Managerial Levels in the
Organizational Hierarchy

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 Levels of Management

1. First Line Managers

2. Middle Managers

3. Top Managers

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 First Line Managers

• At the base of the managerial

hierarchy
• Often called supervisors
• Responsible for daily supervision
of non-managerial employees

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 Middle Managers

• Supervising the First-Line Managers.

• Responsible for organizing resources to

achieve organizational goals.

• Use their skills & know-how in their

departments to make the operations
more efficient & effective.

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 Top Managers

• Are responsible for performance

of all departments
• Have cross-departmental
responsibility
• Decide the interaction between
departments
• Are responsible for success or
failure of an organization

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 Management Skills

• Conceptual Skills – Cognitive ability to see the

organization as a whole and the relationships among its
parts

• Human Skills – ability to work with and through

other people and to work effectively as a group member

• Technical Skills – understanding of and proficiency

in the performance of specific tasks

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 Management Skills

Exhibit 1.2

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 Functions of Management

Planning

Select goals and

ways to attain
them

Controlling Organizing

Monitor activities and

Assign responsibility
make corrections
for task
accomplishment

Leading

Use influence to
motivate employees

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 Planning Function

• Defines goals for future organizational

performance

• Decides tasks and use of resources needed

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 Organizing Function

• Follows planning
• Reflects how organization accomplish plan
• Involves assignment of:
– tasks into departments
– authority and allocation of resources across
organization

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 Leading Function

The use of influence to motivate

employees to achieve the
organization’s goals.

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 Controlling Function

• Monitoring employees’ activities

• Determining whether the organization is
on target toward its goals
• Making corrections as necessary

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 The Leap From Individual
Performer to Manager

Exhibit 1.4

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 Ten Manager Roles

Category Role
Informational Monitor
Disseminator
Spokesperson
Interpersonal Figurehead
Leader
Liaison
Decisional Entrepreneur
Disturbance handler
Resource allocator
Negotiator

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 Organizational Environment

• All elements existing outside the

boundary of the organization that have
the potential to affect the organization

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 Organizational Environments

Exhibit 2.1

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 Internal Environment

1. Management
2. Employees
3. Organization
Culture

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 1. Management Systems

• Marketing Mng.
• HR Mng.
• Sales Mng.
• Financial Mng.
• Etc.

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 2. Employees

• Qualifications
• Motivation
• Skills
• Performance
• Loyalty

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 Culture

The set of key values,

beliefs, understandings,
and norms that members
of an organization share.

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 Levels of Corporate Culture

Culture that can

be seen at the Visible
surface level Dress, office layout, symbols,
slogans, ceremonies

Invisible
Underlying assumptions and deep Deeper values
beliefs, such as “people are lazy and shared
and can’t be trusted” understandings
held by
organization
members

10/8/2016 Exhibit 2.5 36

 Visible Manifestations

• Symbols
• Stories
• Heroes
• Slogans
• Ceremonies

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 High-Performance Culture

• Based on a solid organizational mission or

purpose

• Embodies shared adaptive values that guide

decisions and business practices

• Encourages individual employee ownership

of both bottom-line results and the
organization’s cultural backbone
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 Environment and Culture

• A big influence on internal corporate

culture is the external environment
• Cultures can vary widely across
organizations
• Organizations within same industry reveal
similar cultural characteristics

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 Combining Culture
and Performance

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Exhibit 2.6
 Task Environment

Sectors that have a direct working

relationship with the organization
 Customers
 Competitors
 Suppliers
 Labor Market

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 Labor Market Forces

• Labor Market Forces Affecting

Organizations today
 Growing need for computer literate
information technology workers
 Necessity for ongoing investment in human
resources – recruitment, education, training
 Effects of international trading blocks,
automation, outsourcing, shifting facility
locations upon labor dislocations

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 International Dimension

Portion of the external environment

that represents events originating in
foreign countries as well as
opportunities for Home companies in
other countries.

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 Technological Dimension

• Scientific and technological advances

– Specific industries
– Society at large

• Impact
• Competition
• Relationship with Customers
• Medical advances
• Nanotechnology advances
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 Socio-Cultural Dimension

• Demographic characteristics of the

general population
– Norms
– Customs
– Values
• Examples:
– Increased globalization/diversity
– Longer stay in workforce
– Growing number of single-father households
– Number of married households decreased
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 Economic Dimension

• Economic health
• Consumer purchasing power
• Unemployment rate
• Interest rates
• Recent Trends
• Frequency of mergers and acquisitions
• Small business sector vitality

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 Legal-Political Dimension

Dimension of the general environment that

includes federal, state, and local
government regulations and political
activities designed to influence company
behavior.

Pressure Groups – interest group that works within the

legal-political framework to influence companies to behave
in socially responsible ways.
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 External Environment
and Uncertainty

10/8/2016 Exhibit 2.3 48