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Principles of Management

Textbook: Schermerhorn (2006) Management, 8thedition, John Wiley & Sons Inc. (Chapters 1, 2, 4, 8, 10,

13, 14, 15, 16, and 17)


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Management Fundamentals - Chapter 1 2

Planning Ahead Chapter 1 Study Questions

What are the challenges of working in thenew economy?

What are organizations like in the new

workplace?Who are managers and what do they do?

What is the management process?

How do you learn the essential managerialskills and competencies?


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Chapter 1: The dynamic new workplacesOverview of the 21st century workplace

Organizations must adapt to rapidlychanging society.

Economy is global and driven by

innovation and technology.High performing companies gain

extraordinary results from people working

for them. Interdependent, knowledge based


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

Intellectual capital

People are the ultimate foundations oforganizational performance.

Intellectual capital is the collective brainpoweror shared knowledge of a workforce that can beused to create value.

A knowledge worker adds to the intellectualcapital of an organization.


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Globalization

National boundaries of world business have

largely disappeared.Globalization is the worldwide

interdependence of resource flows, product

markets, and business competition thatcharacterize the new economy.


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Technology

Continuing transformation of the modernworkplace through:

The Internet

World Wide Web

Computers

Information technologyIncreasing demand for knowledge workers

with the skills to fully utilize technology.


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Diversity Workforce diversity reflects differences

with respect to gender, age, race,

ethnicity, religion, sexual orientation,and able-bodiness.

A diverse and multicultural workforce

both challenges and offers opportunitiesto employers.


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Ethics

Code of moral principles.

Society requires businesses to operateaccording to high moral standards.

Emphasis today on restoring the

strength of corporate governance


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Careers

Career of 21stcentury wont be

uniformly full-time and limited to a singlelarge employer

Skills must be portable and always ofcurrent value


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Study Question 2: What are organizations like in the newworkplace?

Critical skills for success in the newworkplace Mastery

ContactsEntrepreneurship

Love of technology

Marketing

Passion for renewal


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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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Figure 1.1 Organizations as open systems.


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Organizational performance

Value is created when an organizations

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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Organizational performanceProductivityAn overall measure of the quantity and quality of

work performance with resource utilization takeninto account.

Performance effectivenessAn output measure of task or goal

accomplishment.Performance efficiencyAn input measure of the resource costs

associated with goal accomplishment.


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Figure 1.2 Productivity and the dimensions oforganizational performance.


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Workplace changes that provide a context forstudying 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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Study Question 3: Who are managers and what do theydo?

Importance of human resources and

managers

Toxic workplaces treat employees as costs.High performing organizations treat people as

valuable strategic assets.

Managers must ensure that people aretreated as strategic assets.


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A manager is a person in an

organization who supports and is

responsible for the work of others.The people who managers help are the

ones whose tasks represent the real

work of the organization.


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Levels of management:

Top managers responsible for performance of an

organization as a whole or for one of its larger parts.

Middle managers in charge of relatively largedepartments or divisions.

Project managers __coordinate complex projects

with task deadlines.

Team leaders or supervisors in charge of a small

work group of non-managerial workers.


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Responsibilities of team leaders (cont.):

Encourage high performance and teamwork.

Inform team members about organizational

goals and expectations.

Inform higher levels of work unit needs andaccomplishments.

Coordinate with others teams and support therest of the organization.


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Types of managersLine managers are responsible for work activities

that directly affect organizations outputs.

Staff managers use technical expertise to advise andsupport the efforts of line workers.

Functional managers are responsible for a singlearea of activity.

General managers are responsible for more complexunits that include many functional areas.

Administrators work in public and nonprofitorganizations.


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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 helping others to achieve highperformance outcomes and experience

satisfaction in their work.


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Quality of work life (QWL)

An indicator of the overall quality of human experiencesin 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

Build working relationships with others.

Help others develop their skills andperformance competencies.

Foster teamwork.

Create a work environment that is performance-driven and provides satisfaction for workers.


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The organization as an upside-down

pyramid

Each individual is a value-added worker.A managers job is to support workers efforts.

The best managers are known for helping 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 themanagement process?

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.


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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 individualsand groups to implement plans.


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Functions of management

Leading

The process of arousing peoples enthusiasm to work

hard and direct their efforts to fulfill plans andaccomplish objectives.

Controlling

The process of measuring work performance,

comparing results to objectives, and taking correctiveaction as needed.


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Managerial activities and rolesInterpersonal rolesInvolve interactions with persons inside and

outside the work unit.

Informational rolesInvolve giving, receiving, and analyzing of

information.

Decisional rolesInvolve using information to make decisions in

order to solve problems or address opportunities.


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Figure 1.5 Mintzbergs 10 managerial roles.


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Characteristics of managerial work

Managers work long hours.

Managers work at an intense pace.

Managers work at fragmented and variedtasks.

Managers work with many communication

media.Managers work largely through interpersonal

relationships.


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Managerial agendas and networks

Agenda setting

Development of action priorities for ones job.

Include goals and plans that span long and shorttime frames.

Networking

Process of building and maintaining positive

relationships with people whose help may beneeded to implement ones work agendas.


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

Essential managerial skills

Skill the ability to translate knowledge into action that

results in desired performance.

Technical skill the ability to apply a specialproficiency or expertise to perform particular tasks.

Human skill the ability to work well in cooperation

with others.

Conceptual skill the ability to think critically andanalytically to solve complex problems.


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Figure 1.6 Katzs 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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Figure 1.7 Understanding Management fromTheory to Practice.


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Case for critical thinking

Case 1: Apple Computer, Inc.: People andDesign Create Apples Future

pp. w-113 w-115


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COPYRIGHTCopyright 2007 John Wiley & Sons Canada, Ltd. All rightsreserved. Reproduction or translation of this work beyond thatpermitted by Access Copyright (The Canadian Copyright LicensingAgency) is unlawful. Requests for further information should beaddressed to the Permissions Department, John Wiley & SonsCanada, Ltd. The purchaser may make back-up copies for his orher own use only and not for distribution or resale. The author andthe publisher assume no responsibility for errors, omissions, ordamages caused by the use of these programs or from the use ofthe information contained herein.

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