CHAPTER 1
Innovative Management for Turbulent Times
The definition of Management:
“Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources”.
4 Management functions
1) Planning: It means defining goals for the future organizational performance and deciding on the tasks and the use of resources needed to attain them.
2) Organizing: Follows planning and reflects how an organization tries to accomplish the plan. Involves assigning task / group tasks in departments and allocating resources across organization.
3) Leading: Use of influence to motivate employees and to achieve organizational goals.
4) Controlling: Means monitoring employees, activities, determining whether the organization is towards its goals.
Organizational Performance
Organizational Effectiveness is the degree to which the organization achieves its stated goal, providing products to customers that value or the resources required in achieving the goal.
Management Skills
Managers must have skills in each of these areas to perform effectively -
1) Conceptual Skills: Is to see the organization as a whole and involves a managers thinking, info processing and planning abilities .Basically to have a broad, long term view
2) Human Skills: Managers ability to work and through other people and to work effectively as a group member. A good manager can -
a. Motivate
b. Facilitate
c. Co-ordinate
d. Lead
e. Communicate ad resolve conflicts
3) Technical Skills: Understanding and proficiency in performance of specific tasks
Management Types
1) Top managers
a. These are at the top of the hierarchy and are responsible for the entire organisation
b. Ex – Chairperson, Chief Executive
2) Middle Managers
a. Work at the middle level of organisation and are responsible for business units and major departments
3) First –line managers
a. Responsible for production of goods and services
Becoming a New Manager
| From Individual Identity | To Manager Identity |
| Specialist, perform specific tasks | Generalist, coordinates diverse tasks |
| Gets things done through own efforts | Gets things done through others |
| An individual actor | A network builder |
| Works relatively independently | Works in highly interdependent manner |
Manager Activities / Roles
A role is a set of expectations for a manager’s behavior
1) Interpersonal roles grow directly out of the authority of a manager’s position and involve developing and maintaining positive relationships with significant others.
a. The figurehead performs symbolic legal or social duties
b. The Leader builds relationships with employees and communicates with, motivates & coaches them
c. The liaison maintains a network of contacts outside the work unit to obtain information
2) Informational roles pertain to receiving and transmitting information so that managers can serve as the nerve centers of their organizational units
a. The monitor seeks internal and external information about issues that can affect the organization
b. The disseminator transmits information internally that is obtained from either internal or external sources
c. The spokesperson transmits information about the organization to outsiders
3) Decisional roles involve making significant decisions that affect the organization
a. The entrepreneur acts as an initiator, designer & encourager of change and innovation
b. The disturbance handler takes corrective action when the organization faces important, unexpected difficulties
c. The resource allocator distributes resources of all types including time, funding, equipment & human resources
d. The negotiator represents the organization in major negotiations affecting the manager’s areas of responsibility
4) The 4 major functions of management—planning, organizing, leading, and controlling provide the purpose for managers taking the roles they do.
Forces on Organizations
1) Main Force is Technology
2) Internet has transformed the way business is done
3) Outsourcing, Joint ventures and other complex alliances have redefined the way business is done today
4) Internet and other new technologies have played a major role in the era of globalization
5) Diversity of work force is another very important fact of life for many organizations
Innovative Response
1) The new paradigm of 21st century is that change is the only constant thing
2) Growing competition has forced companies to innovate and provide more value to their customers
3) The intense competition has also made companies look and device new business strategies
4) Many leaders like Jeff Immelt have started laying greater stress on new technological advancements rather than going in for mergers and acquisitions for growth
New Management Competencies
1) Success in work place depends on strength and quality of collaborative relationships
2) Importance of staying connected to customers and employees
3) Building an organization that values risk taking, applies current technology, tolerates mistakes and failures and rewards nontraditional thinking and sharing of knowledge
Managing crises and unexpected events
Crises and unexpected events can be best managed by
1) Staying calm
2) Being visible
3) Putting people before business
4) Telling the truth
5) Knowing when to get back to business
Manager’s Solution
High Performance requires the efficient and effective use of organizational resources through the four management functions of planning, organizing, leading & controlling. To perform the four functions manager’s needs 3 skills: conceptual, human & technical
1) Conceptual skills more important at the Top of the hierarchy
2) Human Skills at all levels
3) Technical skills more important for first line managers.
Managerial work has 2 characteristics -
1) It involves variety, fragmentation and brevity
2) Perform a great deal of work at unrelenting pace
Managers are expected to perform different roles at different instances in their careers:
1) Informational roles of monitor
2) Disseminator
3) Spokesperson
4) Interpersonal roles of figurehead
5) Liaison
6) The decisional roles of entrepreneur
7) Disturbance handler
8) Resource allocator
9) Negotiator
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