Management

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CHAPTER 1
THE CHALLENGE OF
MANAGEMENT

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Lecture outline
• Overview of management
• What managers actually do
• Managerial qualities
• Management job roles
• 21st century management

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Overview of management
‘Management is the achievement of
organisational goals by engaging in the four
major functions of planning, organising,
leading and controlling.’

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Overview of management
• Planning
The process of setting goals and deciding how best to
achieve them.
• Organising
The process of allocating human and non-human resources
so that plans can be carried out successfully.
• Leading
The process of influencing others to engage in the work
behaviours necessary to reach organisational goals.
• Controlling
The process of regulating organisational activities so that
actual performance conforms to expected organisational
standards and goals.

5. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint 5
Overview of management
1. Planning1. Planning
4. Controlling4. Controlling
3. Leading3. Leading
2. Organising2. Organising
Achievement of organisational goals via:Achievement of organisational goals via:

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The management process
To be successful, the functions of planning,
leading, organising and controlling need to be
linked to:
• Work agenda.
• Work methods and roles.
With reliance upon an organisational pool of
knowledge and management skills, which leads to:
• Organisational performance.

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What managers actually do
Henry Mintzberg’s study of managers
concluded:
• They perform great quantity of work at
unrelenting pace.
• Work typically varied, fragmented, brief.
• Prefer to deal with current, specific, ad hoc
issues.

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What managers actually do
• Effective managers at the centre of a network
of contacts.
• Prefer verbal communication—especially via
phone.
• Control of own activities—good information
essential for this control.

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Managerial roles
• Interpersonal
• Informational
• Decisional
• Negotiator

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Interpersonal role
• Figureheads: Projecting a set of values,
communicating an image.
• Leader role: Needs to be informed, as well
as informing. Leadership skills commonly
lacking in managers.
• Liaison role: Developing channels of
communication, especially informal channels
with other corporate directors, political
connections, media, public figures.

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Informational role
• Monitor: Sifting, sorting, selecting
information (to help set the agenda)—phone,
meetings, memos, social functions, mail,
public gatherings.
• Disseminator: The passing of relevant
information to subordinates.
• Spokesperson: Has to be able to express it,
have solid verbal skills—right message at
right time.

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Decisional
• Entrepreneurial: Ability to identify
opportunities and threats — able to do this in
diverse situations—work or leisure.
• Disturbance handler: More information
available, likely correct decision made.
• Resource allocator: To divisions or
departments, managers need to have an
understanding of what resources are needed
for effective functioning (e.g. budget
gamesmanship).

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Negotiator
Managers need precise and relevant
information to facilitate this role. Therefore, the
best managers:
• Place themselves at the centre of a vast
network of contacts that are social, political,
occupational, organisational, international.
• Can sift, sort, select valuable information.
• Have secretaries who network, who filter and
edit information to avoid overload.

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Managerial knowledge,
performance & skills
• Knowledge base
Knowledge of industry, product, market, technology
etc.
• Skills base
Technical, human & conceptual.
• Performance goals
Effectiveness & efficiency.

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Vertical differences in
management roles
Top managers —planning, conceptual skills
Middle managers —mixed skill needs
First line managers/supervisors —leading, technical skills
Operational level staff

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Horizontal differences in
management roles
• Entrepreneurial managers
Growth focus
• Functional managers
Specific, technical focus
• General managers
Broad, whole of organisation/unit responsibilities
• Project managers
Integrative, team focus

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21st century management
• Change & innovation
• Markets & technology
• Diversity: markets, products & staff
• Globalisation
• Quality & organisational development

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Lecture summary
• Overview of management
– Management function (PLOC).
• What managers actually do
– Roles: interpersonal, decisional, informational, negotiator.
– Work agenda & methods.
• Managerial knowledge, skills & performance
– Management job types.
– Vertical & horizontal differences in management roles.
• 21st century management
– Change, innovation, diversity, globalisation, quality &
organisational development.