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01 Introduction to Management andOrganizations
PMGT- 402:
Project Leadership
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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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What Do Managers Do?
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
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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
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What Do Managers Do?
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.
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What Do Managers Do?
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
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Skills Needed at DifferentManagement Levels
TopManagers
MiddleManagers
Lower-levelManagers
Importance
ConceptualSkills
HumanSkills
TechnicalSkills
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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.
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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
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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.
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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).
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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.
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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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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
to socialresponsibility
ProactiveApproach
Strongcommitment
to socialresponsibility
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
to socialresponsibility
AccommodativeApproach
Moderatecommitment
to socialresponsibility
ProactiveApproach
Strongcommitment
to socialresponsibility
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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Question and Answers