Introducing

Modern
Management

Chapter 1
FALL 2016
Chris Newman MSc
Room 1.04
Christian.newman@webster.ac.at

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 IMPORTANCE OF MANAGEMENT

• Managers influence all phases of modern

organizations
• Our society could not exist as it does today
without the work of managers to guide its
organizations
• Peter Drucker:
– “Effective management is probably the main
resource of developed countries and the most
needed resource of developing ones”
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Peter Drucker

Drucker thought more a appropriate

ratio 25-to-1 (as suggested in 1977
article) or 20-to-1 (expressed in 1984
essay and thereafter).

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 A MANAGER’S TASK

• The Role of Management

– Guide organizations toward goal accomplishment
– Combine and use organizational resources to ensure
organizations achieve their purpose
– Encourage individual activities are focused on reaching
organizational goals
– Focus on activities or other factors that may get in the way
of goal achievement
Essentially, managers never take their minds off
goal accomplishment

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 DEFINING MANAGEMENT
• A process/series of related activities
• Focused on reaching organizational goals
• Working with and through people and other organizational
resources

A process of reaching organizational goals by working with and through

people and other organizational resources

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 THE MANAGEMENT PROCESS:
Managerial Functions
The Management Process is composed of 4 basic functions (Sub Processes):
Organizational Goal

Planning Organizing Influencing Controlling

• Setting • Determining • Working with • Monitoring &

organization tasks and people within measuring org.
al goals groupings of org. performance
work
• Identifying • Guiding activities • Determining if org.
actions to • Assigning of org. members Needs to change to
achieve tasks to in appropriate meet pre-
goals individuals directions established
standards/
• Motivate, lead,
benchmarks
direct

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Mistakes Managers Make in Carrying
Out the Managerial Functions

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 MANAGEMENT PROCESS AND
ORGANIZATIONAL RESOURCES
So what are the key • Organizational Resources
– Human
ingredients to the
– Monetary
Managment Process? – Raw Materials
– Capital
• Managerial Effectiveness
– When resources are used
to achieve goals, managers
are effective
• Managerial Efficiency
– When resources contribute
to productivity, managers
are efficient

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MANAGEMENT PROCESS AND
ORGANIZATIONAL RESOURCES

Market Information Feedback loop

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Combining Effectiveness & Efficiency

Various combinations of managerial effectiveness & Efficiency

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 UNIVERSALITY OF MANAGEMENT
 Principles of management are universal Management principles and
functions are universally applicable
 Functions of management are universal
to all organizations
Theory of Characteristics
Henri Fayol (1841 – 1925) – All
managers should possess certain
characteristics:
• Physical (health, vigor, and B. C. Forbes (1880 –
address) 1954) – Emphasized
• Mental (ability to understand and importance of personal
learn, judgement, mental vigor, qualities for successful
and capability) managers. These are:
• Moral (energy, firmness, initiative, enthusiasm, earnestness
loyalty, tact, and dignity)
of purpose, confidence
• Education (general acquaintance)
• Technical (peculiar to the function and faith in own
being performed) worthiness
• Experience (arising form the work).

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 MANAGEMENT SKILL
THE KEY TO MANAGEMENT SUCCESS
Defining Management Skill
• Ability to carry out process of reaching organizational goals by working
with and through people and other organizational resources
• Companies focus on developing managerial skills to enhance the
manager’s and organization's abilities to achieve goals

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 MANAGEMENT SKILL:
A Classical View
Ability to apply specialized knowledge and expertise to work-related
Technical procedures (e.g. engineering, IT, accounting, finance, etc.).
Human Building cooperation w/team being led (work w/attitudes, communicate)
Ability to see the organization as a whole (understand various functions of
Conceptual organization and how they are linked & effect of changing one element on
others)

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 MANAGEMENT SKILL:
A Contemporary View
People-Related
Task-Related Efforts aimed at
managing people in the Change-Related
Efforts aimed at organization Efforts aimed at
carrying out critical
modifying
management-
organizational
related duties
components

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MANAGEMENT SKILL:
A Contemporary View

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 Planning Your Career Path

Career:
sequence of work-
related positions
occupied by a person
over the course of a
lifetime

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 Special Career Issues

• Women
– Growth in proportion of men to women in management
ranks seems to have changed very little in 10 years
• Dual-Career Couples
– Equal work and shared responsibilities of spouses
– Whose career takes precedence?
• Changing Work-Patterns
– Project based employment/ Self Employed
– Home office/ Home Commuting
– Virtual/ International Teams

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