Understanding Management

First Canadian Edition

Slides prepared by Janice Edwards College of the Rockies

Copyright 2009 Nelson Education Ltd.

Chapter 1

The Changing Nature of Management & Foundations of Learning Organizations

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Learning Objectives
1. 2. 3.

4.

5.

Explain the differences between efficiency and effectiveness and their importance for organizational performance. Define 10 roles that managers perform in organizations. Discuss the management competencies needed to deal with todays turbulent environment, including issues such as diversity, globalization, rapid changes, and the skills needed for crisis management. Describe the learning organization and the changes in structure, empowerment, and information sharing managers make to support it. Understand how historical forces influence the practice of management
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Learning Objectives (contd.)

Identify and explain major developments in the history of management thought. 7. Discuss the scientific management perspective and its current uses in organizations. 8. Describe the major components of the classical and humanistic management perspectives. 9. Define the role contingency plays in organizations. 10. Explain the major components of total quality management.
6.
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Definition of Management
The attainment of organizational goals effectively and efficiently through: Planning, Organizing, Leading, and Controlling organizational resources.

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The Process of Management

Ex. 1.1
Planning Select goals and ways to attain them Resources Human Financial Raw Materials Technological Information Controlling Monitor activities and make corrections Organizing Assign responsibility for task accomplishment Performance Attain goals Products Services Efficiency Effectiveness

Leading
Use influence to motivate employees

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Organization
An organization is a goal directed and deliberately structured social

entity.

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Effectiveness and Efficiency

Organizational effectiveness: The degree to which the organization achieves a stated goal. Organizational efficiency: The amount of resources used to achieve an organizational goal.

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Ex. 1.2

Relationship of Conceptual, Human, and Technical Skills to Management Level

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Ex. 1.3

Ten Manager Roles

Interpersonal Figurehead Leader Decisional Entrepreneur Disturbance handler

Informational Monitor Disseminator

Spokesperson

Liaison

Resource allocator
Negotiator

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Management and the New Workplace

Centred around information and ideas.

Work is free-flowing and flexible.

Organized around networks, work is often virtual.

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New Management Competencies

Embrace ambiguity Create organizations that are:

fast flexible adaptable relationship oriented dispersion of leadership staying connected to employees and customers team building developing a learning organization
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Focus on:

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Crisis Management
Crisis Management Skills: Stay calm Be visible Put people before business Tell the truth Know when to get back to business

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Ex. 1.5

Elements of a Learning Organization

Team-Based Structure

Learning Organization

Empowered Employees
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Open Information
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Management & Organization

Social Forces are values, needs, and standards of behaviour. Political Forces influence of political and legal institutions on people & organizations. Economic Forces affect the availability, production, & distribution of resources in a society.

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Ex. 1.6

Management Perspectives Over Time

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Classical Perspective

Emphasized a rational, scientific approach to the study of management. Sought to make organizations efficient. Managers role is to maintain stability and efficiency.
Theories of Scientific Management, administrative principles, and bureaucratic organizations.

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Humanistic Perspective
Emphasized understanding human behaviour.
Dealt with needs & attitudes in the workplace. Truly effective control comes from within the individual

worker rather than authoritarian control. Hawthorne Studies brought Humanistic Perspective to forefront.

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Theory X & Y

Theory X

Theory Y

People are lazy. People lack ambition. Dislike responsibility. People are self-centered. People dont like change.

People are energetic. People want to make contributions. People do have ambition. People will seek responsibility.
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The Contingency Approach

One thing depends on other things, and for organizations to be effective, there must be a goodness of fit between their structure and the conditions in their external environment.

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