1. THE CHANGING
PARADIGM OF
MANAGEMENT
Reporter:
Leilani Mariana G. Castelo

2. Definition of Management
Management
• is the attainment of organizational goals
in an effective and efficient manner
• through planning, organizing, leading,
and controlling organizational resources.
1-2

3. Definition of Management
Resources include
– people (loyal customers and employees)
– skills, know-how and experience,
– machinery, technology
– raw materials
– financial capital
1-3

4. Management Functions
1-4

5. Management Functions
• Planning – means defining goals for
future organizational performance and
deciding on the tasks and use of
resources needed to attain them.
1-5

6. Management Functions
• Organizing – involves the assignment of
tasks, the grouping of tasks into department,
and the allocation of resources to
departments.
1-6

7. Management Functions
• Leading – is the use of
influence to motivate employees
to achieve organizational goals.
It also means creating a shared
culture and values, communicating
goals throughout the organization,
and infusing employees with the
desire to perform at a high level. It involves motivating
entire departments and division as well as those
individuals working immediately with the manager.
1-7

8. Management Functions
• Controlling – means monitoring employees’
activities,
determining
whether
the
organization is on target toward its goals, and
making corrections as necessary.
1-8

9. Organizational Performance
Organization is defined as:
• a social entity - being made up of two or more people
• goal directed - designed to achieve some outcome
• deliberately structured - tasks are divided and
responsibility for their performance is assigned to its
members.
1-9

10. Organizational Performance
Performance
the ability of an organization to
• attain its goals
• by using resources in an efficient and
effective manner
1-10

11. Organizational Performance
Organizational effectiveness
 the degree to which the organization
achieves a stated goal. It means that the
organization succeeds in accomplishing
what it tries to do. Organizational
effectiveness means providing a product
or service that customers value.
1-11

12. Organizational Performance
Organizational efficiency
 amount of resources used to achieve an
organizational goal. It is based on how
much raw materials, money, and people
are necessary for producing a given
volume of output. Efficiency can be
calculated as the amount of resources
used to produce a product or service.
1-12

13. Figure 1.1
1-13

14. Management Skills
A manager’s job is complex and
multidimensional and requires a
range of skills. The necessary skills
for managing an organization can be
summarized in three categories:
1-14

15. Management Skills
• Conceptual skill is the cognitive ability to see
the organization as a whole and the relationship
among its parts. Conceptual skill involves the
manager’s thinking, information processing,
and planning abilities. It involves knowing
where one’s department fits into the total
organization and how the organization fits into
the industry, the community, and the broader
business and social environment. It means the
ability to “think strategically” – to take the
broad, long-term view.
1-15

16. Management Skills
• Human skill is the ability to work with and
through other people and to work effectively
as a group member. This skill is demonstrated
in the way a manager relates to other people,
including the ability to motivate, facilitate,
coordinate, lead, communicate, and resolve
conflicts. A manager with human skills allows
subordinates to express themselves without
fear of ridicule and encourages participation.
1-16

17. Management Skills
• Technical skill is the understanding of and
proficiency in the performance of specific tasks.
Technical skill includes mastery of the methods,
techniques, and equipment involved in specific
functions. Technical skill also includes specialized
knowledge, analytical ability, and the competent use of
tools and techniques to solve problems in that specific
discipline. Technical skills are particularly important at
lower organizational levels. Many managers get
promoted to their first management job by having
excellent technical skills. However, technical skills
become less important than human and conceptual
skills as managers move up the hierarchy.
1-17

18. Management Types
Vertical Differences
An important determinant of the
manager’s job is hierarchical level.
1-18

19. Management Types
1-19

20. Management Types
Top managers
are responsible for the entire organization
(president, chairperson, executive director,
chief executive officer).
• setting organizational goals,
• defining strategies for achieving them,
• monitoring and interpreting the external
environment, and
• making decisions that affect the entire
1-20
organization.

21. Management Types
Middle managers are responsible for business
units and major departments. They typically
have two or more management levels beneath
them. They are responsible for:
• implementing the overall strategies and policies
defined
• concerned with the near future and are
expected to establish good relationships with
peers around the organization, encourage
teamwork, and resolve conflicts
• responsible for creating a horizontal network
1-21

22. Management Types
First-line managers
are directly responsible for the production of
goods and services (supervisor, line manager,
section chief). They are responsible for groups
of non-management employees. Their primary
concern is
• the application of rules and procedures to
achieve efficient production,
• provide technical assistance, and
• motivate subordinates.
1-22

23. Management Types
Horizontal Differences
The other major difference in management
jobs occurs horizontally across the
organization
1-23

24. Management Types
• Functional managers are responsible for
departments that perform a single function task
and have employees with similar training and
skills. Functional departments include finance,
human resources, accounting, production. Line
managers are responsible for the production
departments that make or sell the product or
service. Staff managers are in charge of
departments such as finance and human
resources that support line department.
1-24

25. Management Types
• General managers are responsible for
several departments that perform different
functions. A general manager is
responsible for a self-contained division.
Project managers also have general
management responsibility, because they
coordinate
people
across
several
departments to accomplish a specific
project.
1-25

26. Relative Amount of Time That Managers Spend
on the Four Managerial Functions
1-26

27. Skill Types Needed
1-27

28. Manager Roles
A role is a set of expectations for a manager’s
behaviour.
Roles are directed inside as well as outside of the
organization.
These roles are divided into three conceptual
categories:
1-28

29. Informational Roles
Roles associated with the tasks needed to obtain and
transmit information in the process of managing the
organization.
– Monitor—analyzing information from both the
internal and external environment.
– Disseminator—transmitting information to influence
the attitudes and behavior of employees.
– Spokesperson—using information to positively
influence the way people in and out of the
organization respond to it.
1-29

30. Interpersonal Roles
Roles that managers assume to provide direction and
supervision to both employees and the organization as
a whole.
– Figurehead—symbolizing
the
organization’s
mission and what it is seeking to achieve.
– Leader—training, counseling, and mentoring high
employee performance.
– Liaison—linking and coordinating the activities of
people and groups both inside and outside the
organization.
1-30

31. Decisional Roles
Roles associated with methods managers use in planning
strategy and utilizing resources.
– Entrepreneur—deciding which new projects or
programs to initiate and to invest resources in.
– Disturbance handler—managing an unexpected
event or crisis.
– Resource allocator—assigning resources between
functions and divisions, setting the budgets of lower
managers.
– Negotiator—reaching agreements between other
managers, unions, customers, or shareholders.
1-31

32. The Changing Paradigm of
Management
.
A paradigm is a shared mind-set that
represents a fundamental way of thinking
about, perceiving, and understanding the
world. Shifts in ways of thinking are
occurring in our society, and these in turn
impact organizations, causing shifts in
management thinking and behaviour.
The primary shift is from the traditional
vertical organization to something called
the learning organization.
1-32

33. The Changing Paradigm of
Management
Old Paradigm – Vertical Organization
• one in which activities are grouped by common
function from the bottom to the top of the organization.
The whole organization is coordinated and controlled
through the vertical hierarchy, with decision-making
authority residing with upper-level managers.
• characterized by routine, specialized jobs and
standardized control procedures.
• very effective in stable times. However, they often do
not work well in fast-changing environments. In
response, many companies are shifting to a new
paradigm and becoming organizations.
1-33

34. The Changing Paradigm of
Management
New Paradigm - Learning Organization
• the primary responsibility of the managers is not to
make decisions, but to create learning capability
throughout the organization. Employees on the front
lines routinely make decisions rather than passing
them up the hierarchy for approval.
• there is no single model of the learning organization; it
is a philosophy or attitude about what an organization
is and the role of employees.
• everyone in the organizations participates in identifying
and solving problems, enabling the organization to
continuously experiment, improve, and increase its
capability.
1-34

35. The Changing Paradigm of
Management
• top managers are leaders who create a
vision for the future that is widely
understood and imprinted throughout the
organization.
• employees are empowered to identify
and solve problems because they
understand the vision and long-term
goals of the organization.
1-35

36. The Changing Paradigm of
Management
The traditional top-down hierarchy is giving way
to flatter organizations to built around selfdirected teams collaborating across levels and
departments. Lower-level managers serve as
team leaders, coaches and facilitators.
1-36

37. Forces on Organizations
1)
The most striking change now affecting
organization
and
management
is
globalization. Globalization brings a need
for relentless innovation, greater concern for
quality,
rapid
response,
enhanced
productivity, and new levels of customer
service.
1-37

38. Forces on Organizations
2) Diversity of the workforce has
become a fact of life for all
organizations, even those that do
not operate globally.
1-38

39. Forces on Organizations
3) Another significant shift is that technology is
electronic rather than mechanical, as the
world is gradually shifting from a workforce
that produces material things to one that
primarily manages information.
1-39

40. Forces on Organizations
4)
In the face of these rapid
transformations, organizations are
learning to value change over
stability.
1-40

41. New Management
Competencies
Managers rely on varied skills and perform
different activities depending on hierarchical
level and job responsibilities. For all
managers, however, human skills are
becoming increasingly important. Critical skills
for top-level managers in today’s world include
the ability to create an exciting and demanding
work environment and to inspire confidence in
and support for the organization and its
leadership.
1-41

42. New Management Competencies
Middle managers have to learn to build
relationships, empower others, promote
cooperation, and manage conflict. First-line
supervisors need the ability to motivate
workers on a day-to-day basis and sustain
employee energy toward he completion of
organizational
goals.
Thus,
although
managers at different levels play different roles
and rely on different skills, there are some
manager competencies that are important to
all managers in the new world of
organizations.
1-42

43. New Management Competencies
Rather than a single-minded focus on profits,
today’s managers recognize the importance of
staying connected to clients and employees on
a daily basis. They remain flexible and
adaptable, able to respond quickly to client
and employee needs. Rather than simply
issuing orders, managers finding ways to
benefit from employees’ insights giving them
the freedom to make decisions and solve
problems.
1-43

44. New Management Competencies
Leadership is dispersed throughout the
organization, and managers share rather than
hoard power. The model of managers
controlling workers no longer applies in a
world of rapidly changing technology, diversity,
and global competition. Instead, managers act
as coaches and facilitators, getting everyone
involved and committed. Everyone is given a
chance to be a leader.
1-44

45. Six Core Managerial Competencies
 Communication Competency
 Planning and Administration Competency
 Teamwork Competency
 Strategic Action Competency
 Multicultural Competency
 Self-Management Competency

46. Communication Competency
Ability to effectively transfer and exchange information that
leads to understanding between yourself and others
 Informal Communication
 Used to build social networks and good
interpersonal relations
 Formal Communication
 Used to announce major events/decisions/
activities and keep individuals up to date
 Negotiation
 Used to settle disputes, obtain resources, and
exercise influence

47.  Deciding what tasks need to be done, determining
how they can be done, allocating resources to
enable them to be done, and then monitoring
progress to ensure that they are done
 Information gathering, analysis, and problem solving
from employees and customers
 Planning and organizing projects with agreed
upon completion dates
 Time management
 Budgeting and financial management

48.  Accomplishing tasks through small groups of
people who are collectively responsible and
whose job requires coordination
 Designing teams properly involves
people participate in setting goals
having
 Creating a supportive team environment gets
people committed to the team’s goals
 Managing team dynamics involves settling
conflicts, sharing team success, and assign tasks
that use team members’ strengths

49. Strategic Action Competency
 Understanding the overall mission and values of
the organization and ensuring that employees’
actions match with them
 Understanding how departments or divisions of
the organization are interrelated
 Taking key strategic actions to position the firm
for success, especially in relation to concern of
stakeholders

50. Multicultural Competency
 Understanding, appreciating and responding to
diverse political, cultural, and economic issues
across and within regions
 Cultural knowledge and understanding of the
events in at least a few other cultures
 Cultural openness and sensitivity to how others
think, act, and feel
 Respectful of social etiquette variations
 Accepting of language differences

51. Self-Management Competency
 Developing yourself and taking responsibility
 Integrity and ethical conduct
 Personal drive and resilience
 Balancing work and life issues
 Self-awareness and personal development
activities