CHAPTER 1

MANAGEMENT AND MANAGERS:

YESTERDAY, TODAY AND TOMORROW

PREPARED BY : SYED AHMAD MAHDHAR

BIN SYED SALIM
 Learning Objectives slide 1 of 2

1. Describe the terms management and leadership,

as well as the relationship between the two
concepts.
2. Define the concept of management within an
organizational context and as a process.
3. Identify the roles played by managers.
4. Discuss the scope of responsibilities of
functional and general managers.
5. Describe the three levels of managers in
terms of the skills they need and the
activities in which they are involved.
 Learning Objectives slide 2 of 2

6. Describe the underlying forces of the new

economy.
7. Describe the environmental trends that are
affecting the way organizations operate and the
way managers do their jobs.
8. Identify and discuss the organizational
changes that are affecting managers’ jobs.
9. Describe the manager of tomorrow in terms of
the managerial style, leadership capabilities, and
skills sets that will be necessary for success.
Management: The Classic Definition

The art of getting things done

through people.
– Mary Parker Follet
Management: A Broader Definition

The process of administering and

coordinating resources effectively,
efficiently, and in an effort to achieve
the goals of the organization.
 Effectiveness vs. Efficiency

 Effectiveness
 Effectiveness is achieved when the organization
pursues appropriate goals. This means “doing the
right thing.”
 Efficiency
 Efficiency is achieved by using the fewest inputs (e.g.,
people and money) to generate a given output. This
means “doing things right.”
 The end result of effective and efficient
management is organizational success.
 Management Theory

 It is critical for managers to be able to lead

people through the fast pace of change
 Leadership is about:
 Coping with complexity and, more importantly,
 Coping with change
 As change becomes more dynamic and
rapid – so managers at all levels must hone
their leadership skills.
 Therefore, leaders are managers… and
managers are leaders.
 What Is An Organization?

An organization is a group of
individuals who work together
toward common goals.
 What Do All
Organizations Have in Common?
 They are made up of people, and

 The efforts of these people must be coordinated if the

organization is to accomplish its goals.
 The Four
Functions of Management slide 1 of 4
 Planning And Organizing

 Planning
 Setting goals and defining the actions necessary to
achieve those goals.
 Organizing
 The process of determining the tasks to be done, who
will do them, and how those tasks will be managed
and coordinated.
 Leading

 The capacity to lead the members of

work groups toward the accomplishment
of organizational goals.
 Requires a number of skill sets including:
 Understanding individual/group behavior dynamics
 The ability to motivate employees
 Be effective communicators
 Able to envision future and share that vision
 3C’s Leadership Model
 Controlling

 Monitoring the performance of the

organization and the progress in implementing
strategic and operational plans.
 Identifying deviations between planned and
actual results.
 Taking corrective action
 Ensuring that the organization is moving
toward the achievement of its goals.
 Managers

 Managers are the people who plan, organize,

lead, and control the activities of the
organization so that its goals can be achieved.
Mintzberg’s Managerial Roles slide 1 of 3

 Interpersonal Roles
 The manager’s responsibility for
managing relationships with
organizational members and other
constituents:

Figurehead

Leader

Liaison
Mintzberg’s Managerial Roles slide 2 of 3

 Informational Roles
 The manager’s responsibility for
gathering and disseminating
information to the stakeholders of the
organization:

Monitor

Disseminator

Spokesperson
Mintzberg’s Managerial Roles slide 3 of 3

 Decisional Roles
 The manager’s responsibility for
processing information and reaching
conclusions:
Entrepreneur

Disturbance handler
Resource allocator
Negotiator
 Scope of Responsibility

 Functional Managers
 Managers who are responsible for managing a work unit that is
grouped based on the function served.
 General Managers
 Managers who are responsible for managing several different
departments that are responsible for different tasks.
 Functional Manager

Chief Executive
General Parts Inc.

VP of VP of
Production Finance

Plant Service Account Payroll

Manager Manager Manager Manager

A functional manager is a manager responsible

for a work group segmented by function.
 General Manager

General Manager
Supermarket, Inc.

Produce Grocery Bakery

Manager Manager Manager

A general manager is a manager

responsible for several different work
groups segmented by task.
Levels of Management

Top-level Managers

Middle Managers

First-line Managers

Operational Employees
 Management Skills
 Technical Skills
 The ability to utilize the knowledge of tools,
techniques, and procedures that are specific to a
particular field.
 Human Skills
 The ability to work effectively with one’s own
work group as well as others within the
organization.
 Conceptual Skills
 The ability to process a tremendous amount of
information about the internal/external
environment of the organization and determine
implications of that information.
 Skills Needed at
Different Levels of Management
First-line Middle Top-Level
Management Management Management

Conceptual Conceptual
Conceptual
Human
Human
Human
Technical
Technical
Technical
 Hyperchange

 A condition of rapid, dramatic, complex, and

unpredictable changes that has a significant
effect on the ways in which organizations are
managed.
 The New Economy: What Is It?

 The convergence of “New Economy” forces

challenges conventional wisdom and
traditional methods of managing
organizations
 The expansion of individual opportunity
 The disruptive energy that comes from
ceaseless innovation
 The transformative power of information and
communication
 As a result, new methods for crafting
strategy, launching products, serving
customers and organizations to support
creativity and productivity are emerging.
Environmental Trends

 Advances in
information technology
 Globalization of
the marketplace
 Increasing predominance of
entrepreneurial firms
 The growing importance of
intellectual capital
 Advances in Information Technology

 Today, there are three central themes of change

in information technology.
 The Internet and other forms of globally connected networks
 Electronic commerce
 Mobile computing
 Globalization of the Marketplace

 Most organizations today are involved, in some

way, in the international business environment
 Even the smallest business can reach a global
marketplace with relative ease
 The international business arena holds unique
managerial challenges in terms of complexity
and a broader set of environmental forces.
 Increasing
Predominance of Entrepreneurial Firms

 Entrepreneurial firms are responsible for a

disproportionate number of new products,
services, and process.
 Entrepreneurial activities place pressure on
large, bureaucratic firms to be made innovative
and proactive.
 Entrepreneurship provides opportunities for
minorities and others who may face barriers in
traditional corporate environments.
 The Growing
Importance of Intellectual Capital
 Intellectual capital encompasses the sum and
synergy of an organization’s knowledge,
experience, relationships, processes,
discoveries, innovations, market presence and
community influence.
 The three major categories of intellectual
capital are:
 Structural Capital
 Customer Capital
 Human Capital
 Organizational Changes

 A new model of leadership

 From hierarchy to collaborative
work relationships

• Increasing diversity in the workplace

• A new organizational model
 A New Model of Leadership

 The 3C’s Model of Leadership

 The 3C’s Model of Leadership

 Competence
 Refers to having the requisite business acumen and
skills to be effective as a leader.
 Character
 Refers to the leadership values and behaviors that
elicit trust, commitment and followership.
 Community
 Refers to the need to be aware of things beyond
oneself and even beyond one’s team and organization.
 From Hierarchy to
Collaborative Work Relationships
 Cross-functional Teams
 Teams comprised of individuals from different
functional areas of the organization

 Self Managed Teams

 Groups of employees who work together toward the
development of strategy for their work unit and the
achievement of established goals and objectives.
Increasing Diversity in the Workplace

 Diversity is the heterogeneity of the

population and work force.
 The challenge of diversity for today’s
business and managers
 Organizational success requires a strong
organizational culture and group cohesiveness
 Achieving this may be more difficult when the
workplace includes people with different
backgrounds, from different nations, or with different
cultural frames of reference.
 A New Organizational Model

 Many organizations are moving from the

traditional thinking that “bigger is
better” to a new model that is “lean and
flexible.”
 These organizations go by many names:

 The Modular Corporation

 The Virtual Corporation
 The Network Corporation
 The New Manager/Leader Profile

 Managers will no longer think of themselves

as “the boss,” but will view themselves as
sponsors, team leaders, or internal
consultants.
 Today’s leaders can no longer wield control
from the top of the pyramid; nor can they
control the action from the sidelines.
 Leaders must empower individual
employees to do whatever is necessary to
achieve goals… and make sure that
employees have the resources to get the job
done.
Competencies of Tomorrow’s Managers

 The great communicator

 The individual coach
 The team player
 The technology master
 The problem solver
 The foreign ambassador
 The change agent
 The lifelong learner
Implications for Future Leaders slide 1 of 2

 Keep abreast of changing conditions that

affect the organization.
 Develop and understanding of the major
environmental trends that are affecting
organizations across the globe.
 Be flexible and adaptable to
organizational changes, as well as
proactive in initiating change when
appropriate.
 Understand the changing role of the
manager within the corporate structure.
Implications for Future Leaders slide 2 of 2

 Make the most of your education and

develop the skills and competencies
necessary for managerial success.
 Focus on excellence and quality in
everything you do.
 Take every opportunity to enhance your
leadership skills.