Ch 01 Introduction to Management and Organizations

8/3/2019 Ch 01 Introduction to Management and Organizations

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01 Introduction to Management andOrganizations

PMGT- 402:

Project Leadership


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Page 2PMGT- 402: Project Leadership 2009 Bob Xourafas, P.Eng, PMP, Proprietary01 Introduction to Management and Organizations

Learning Objectives

Who Are Managers?

What Is Management?

What Do Managers Do?

What Is an Organization?

The Challenges Managers Face

What Is Corporate Social Responsibility?

Understanding workforce diversity

Why Study Management?


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Who Are Managers?

The changing nature of organizations and work has blurred theclear lines of distinction between managers and non managerialemployees. Many workers jobs now include managerialactivities. Definitions used in the past no longer work.

How do we define a manager?

Manager

Is an organizational member who works with and through other peopleby coordinating their work activities in order to accomplishorganizational goals.

However, keep in mind that managers may have other work duties notrelated to integrating the work of others.


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Types of Managers

Managers can be classified by their level in the

organization, particularly for traditionallystructured organizations (those shaped like apyramid)

First-line Managers

Are at the lowest level of management andmanage the work of nonmanagerial employees.Theyre often called supervisors.

Middle Managers

Manage the work of first-line managers

Top Managers

Are responsible for making organization-widedecisions and establishing plans and goals thataffect the entire organization

TopManagers

Middle Managers

First-Line Managers

Nonmanagerial Employees


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What Is Management?

Management refers to the process of coordinating and integrating

work activities so that theyre completed efficiently and effectivelywith and through other people.

Coordinating others work activities is what distinguishes a managers jobfrom a non managerial one

Efficiency Efficiency is getting the most output from the least amount of input,

the goal of which is to minimize resource costs.

Doing things right

Effectiveness Effectiveness is completing activities so that organizational goals are

attained

Doing the right things


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No two managers jobs are alike. But management writers andresearchers have developed some specific categorizationschemes to describe what managers do.

Were going to look at three categorization schemes: functions,roles, and skills.


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Management Functions

Planning

Defining goals,establishingstrategy, anddevelopingsubplans tocoordinate

activities

Lead to

Organizing

Determiningwhat needsto be done,how it willbe done, andwho is to do it

Leading

Directing andmotivating allinvolved partiesand resolvingconflicts

Controlling

Monitoringactivitiesto ensurethat they areaccomplishedas planned

Achieving theorganizations

statedpurpose

Henri Fayol, a French industrialist from the early part of the 1900s,proposed that managers perform five management functions:

POCCC (plan, organize, command, coordinate, control). These functions still provide the basis around which popular

management textbooks are organized, but the functions have beencondensed to four



Management Functions

Planning

Defining goals,establishingstrategy, anddevelopingsubplans tocoordinateactivities

Lead to

Organizing

Determiningwhat needsto be done,how it willbe done, andwho is to do it

Leading

Directing andmotivating allinvolved partiesand resolvingconflicts

Controlling

Monitoringactivitiesto ensurethat they areaccomplishedas planned

Achieving theorganizations

statedpurpose

Functional Approach

Planning: Defining goals, establishing strategies to achieve goals,

developing plans to integrate and coordinate activities Organizing: Arranging work to accomplish organizational goals

Leading: Working with and through people to accomplish goals

Controlling: Monitoring, comparing, and correcting the work




Mintzbergs Management Roles Approach

In the late 1960s, Henry Mintzberg conducted a precise study of managers atwork. He concluded that managers perform 10 different, but highly interrelated,management roles

Interpersonal roles

Figurehead, leader, liaison

Informational roles Monitor, disseminator, spokesperson activities

Decisional roles

Entrepreneur, disturbance handler, resource allocator, negotiator

Follow-up studies of Mintzbergs role categories in different types of organizationsand at different managerial levels within organizations have generally supported thenotion that managers perform similar roles.

However, the more traditional functions have not been invalidated. In fact, thefunctional approach still represents the most useful way of classifying the managers

job.




Managers need certain skills to perform the varied duties and

activities associated with being a manager. Robert L. Katz found through his research in the early 1970s that

managers need three essential skills or competencies (skillsapproach)

Technical skills Knowledge and proficiency in a specific field

Human skills

The ability to work well with other people

Conceptual skills

The ability to think and conceptualize about abstract andcomplex situations concerning the organization

Skill N d d t Diff t



Skills Needed at DifferentManagement Levels

TopManagers

MiddleManagers

Lower-levelManagers

Importance

ConceptualSkills

HumanSkills

TechnicalSkills



What Is An Organization?

Organizations need managers.

Organization

A deliberate arrangement of people to accomplish some specific purpose

Organizations share three common characteristics:

Have a distinct purpose (goal) Are composed of people

Have a deliberate structure

Organizations are changing because the world around them has

changed and is continuing to change. Societal, economic, global, and technological changes have created

an environment in which successful organizations must embrace newways of getting their work done.



The Changing Organization

Traditional

Stable Inflexible

Job-focused

Work is defined by job positions

Individual-oriented

Permanent jobs Command-oriented

Managers always make decisions

Rule-oriented

Relatively homogeneous workforce

Workdays defined as 9 to 5

Hierarchical relationships

Work at organizational facility during specifichours

New Organization

Dynamic Flexible

Skills-focused

Work is defined in terms of tasks to be done

Team-oriented

Temporary jobs Involvement-oriented

Employees participate in decision making

Customer-oriented

Diverse workforce

Workdays have no time boundaries Lateral and networked relationships

Work anywhere, anytime



Sizes and Types of Organizations

Facts about the Canadian workplace:

Size

Large organizations represent only 3% of the organizations in Canada

Nearly 95% of organizations employ fewer than 50 people.

Big businesses employ just over 40% of all employees in Canada, while smallbusinesses employ about 34% of all employees.

Most Canadians (around 76%) work in the service sector of the economy.



Sizes and Types of Organizations

Type

Large organizations are often publicly held, with managers reporting to a Boardof Directors who are responsible to shareholders.

There are also numerous privately held organizations, meaning shares are notavailable on the stock exchange. These organizations can be individuallyowned, family-owned, or owned by some other group of individuals.

Many managers work in the public sector as civil servants, for the provincial,federal, and local governments.

Some managers and employees work for Crown Corporations and others workfor subsidiaries of American parent organizations (e.g., Sears, Safeway,General Motors, and Ford Motor Company).



Challenges Managers Face

Ethics

Cases of corporate lying, misrepresentations, and financialmanipulations have been widespread in recent years.

Managers of firms such as Nortel, Enron, ImClone, Global Crossing,and Tyco International put their self-interest ahead of others who

might be affected by their decisions.

While most managers continue to behave in a highly ethical manner,the abuses suggest a need to upgrade ethical standards.

Ethics education is being widely emphasized in college and university

curriculums.

Organizations are taking a more active role in creating and usingcodes of ethics, ethics training programs, and hiring ethics officers.



Challenges Managers Face

Corporate Social Responsibility

Corporate responsibility is a businesss obligation, beyond thatrequired by law and economics, to pursue long-term goals that aregood for society.

This definition assumes that a business obeys laws and pursues

economic interests. But also note that this definition views business asa moral agent.

That is, in its effort to do good for society, it must differentiate betweenright and wrong. The more obvious examples include: employee

relations, philanthropy, pricing, resource conservation, product quality,and doing business in countries that violate human rights.

There are two views of social responsibility, the classical and socio-economic view.


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PMGT- 402: Project Leadership 2009 Bob Xourafas, P.Eng, PMP, Proprietary01 Introduction to Management and Organizations

Corporate Social Responsibility

The Classical View

The classical view is the view that managements only social responsibility is tomaximize profits.

Milton Friedman is the most outspoken advocate of this view.

He argues that managers primary responsibility is to operate the business in

the best interests of the stockholdersthe true owners of the organization.

The Socio-economic View

The socio-economic view is the view that managements social responsibilitygoes beyond the making of profits to include protecting and improving societys

welfare. The argument behind this view is that corporations are not independent entities

responsible only to stockholders.

Also, modern organizations are no longer just economic institutions. Societyexpects businesses to become involved in social, political, and legal issues.


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Approaches to Social Responsibility

DefensiveApproach

Minimalcommitment

to socialresponsibility

AccommodativeApproach

Moderatecommitment


ProactiveApproach

Strongcommitment


ObstructionistApproach

Disregardfor social

responsibility

No Social Responsibility High Social Responsibility

Obstructionist approach: avoids social responsibility. Obstructionist managers engagein unethical and illegal behaviour, and try to hide their behaviour from organizationalstakeholders and society at large.

Defensive approach: minimal socially responsible position. These organizations have a

commitment to ethical behaviour, making sure that employees behave legally and noharm is done to others. The claims and interests of shareholders come first with thisapproach, and little attention is paid to other stakeholders.


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Approaches to Social Responsibility

DefensiveApproach

Minimalcommitment


AccommodativeApproach

Moderatecommitment


ProactiveApproach

Strongcommitment


ObstructionistApproach

Disregardfor social

responsibility

No Social Responsibility High Social Responsibility

Accommodative approach: going beyond legal requirements, choosing to supportsocial responsibility in a balanced fashion. Accommodative managers try to balance theinterests of shareholders with those of other stakeholders by making choices that appearreasonable to all members of society.

Proactive approach: finds out about and meets the needs of different stakeholder

groups. Promotes the interests of stockholders, shareholders, and stakeholders, usingorganizational resources to do so. These managers feel a responsibility to society as awhole.

The defensive approach is consistent with the classical view, while the accommodativeand proactive approaches are consistent with the socio-economic view.


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Workforce Diversity

Workforce diversity

Refers to employees in organizations who are heterogeneous in termsof gender, race, ethnicity, or other characteristics

A global issue

Canada recognizes and celebrates differences Managers must make organizations more accommodating


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Why Study Management?

The Value of Studying Management

The universality of management: the certainty that management isneeded in all types and sizes of organizations, at all organizationallevels, and in all organizational work areas, regardless of where theyrelocated

The reality of work: after graduating, students will either manage or bemanaged. A course in management provides insights into the waymanagers behave and into the internal working of organizations.Students dont have to aspire to be a manager to gain somethingvaluable from a course in management.

Self-employment: students may want to become self-employed.


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Universal Need for Management

All Sizes of Organizations

Small Large

All Types of Organizations

Profit Not-for-Profit

All Organization Levels

Bottom Top

Management

Is Neededin...

All Organizational Areas

ManufacturingMarketing

Human Resources AccountingInformation Systems etc.


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PMGT- 402: Project Leadership 2009 Bob Xourafas P Eng PMP Proprietary

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Ch 01 Introduction to Management and Organizations