Introduction to management

–
Lecture 2.

Dr. Piroska Hoffmann

Fall 2023
 Agenda
• Characteristics of the modern business environment
Lecture 1 • Definition of organization and management
• Main functions of management
• Planning
• Leading
• Organizing
Seminar 1 -2
• Controlling
• Management roles
• Management skills
Lecture 2. • Managers in different areas
• Manager vs. Leader
• Contemporary Management challenges and issues
 The functions of management
Planning &
Organizing
decision making Determinig how best to
Setting the organizational group activities and
goals and deciding how resources
best to achieve them

Controlling Leading
Motivating members to
Monitoring and correcting
the organization to work
ongoing activities to
in the best interest of the
facilitate goal achivement
organization
 Managerial Roles
Mintzberg

Monitor
Information distributor
Informational Spokesperson

Entrepreneur
Figurehead Disturbance handler
Leader
Interpersonal Decisional Resource allocator
Liaison (link) Negotiator
Managerial skills
 Skills of Managers (1)

Technical skills

Human skills

Conceptual skills

(Katz, 1974)
 Technical skills:
• the ability to use specific knowledge, techniques, and resources
in work.
• understand the specific kind of work done in an organization.
• Technical skills are especially important for first-line managers.
• These managers spend much of their time training their subordinates
and answering questions about work-related problems.
• they must know how to perform the tasks assigned to those they
supervise.

• Technical skills = hard skills

 Human skills:
• the ability to work with, communicate with subordinates, and
understand others,
• motivate both individuals and groups.
• Interacting with people both inside and outside the organization
• Insigth:
• must be able to get along with subordinates, peers, and those at higher levels
of the organization.
• Outsigth:
• A manager must also be able to work with suppliers, customers, investors,
and others outside the organization.
• Human skills = soft skills
 Conceptual skills
• Depend on the manager’s ability to think in the abstract.
• Understand the overall workings of the organization and its
environment,
• To grasp how all the parts of the organization fit together, and
to view the organization in a holistic manner.
• This ability allows them to think strategically, to see the “big
picture,” to make broad-based decisions that serve the overall
organization.
• The ability to understand the effect of a change
Levels of management and required skills

Technical
HUMAN SKILLS CONCEPTUAL SKILLS

TECHNICAL CONCEPTUAL
SKILLS HUMAN SKILLS SKILLS

HUMAN
TECHNICAL SKILLS SKILLS
 Skills of Managers (2)

Cultural awareness

Diagnostic skills

Communicational skills

Decision-making skills

Time management skills

(Griffin, 2011)
 Skills of Managers (2)
• Cultural awareness: awareness of how to deal with diversity.
• Diagnostic skills: the ability to visualize the most appropriate
response to the situation.
• Communication skills: the ability both to convey ideas and
information to others and effectively receive ideas and information
from others.
• Decision-making skills: the ability to correctly recognize and define
problems and opportunities, to then select an appropriate course of
action to solve problems and capitalize on opportunities.
• Time management skills: the ability to prioritize work, to work
efficiently, and to delegate appropriately.
How can management skills be
developed?
Managers in different
areas
 Managers in different areas:
• Managers use a mix of resources—human, financial, physical, and
information—to promote efficiency and effectiveness. Organizations
need managers at multiple levels.
• The most common classifications by level are top, middle, and first-
line managers. Large organizations usually have multiple levels
within each of these broad categories.
• Organizations also need managers within different areas, such as
marketing, finance, operations, human resources, sales, and other
areas.
• While it may seem like common sense, you should always have an
understanding of the level and area of both your current job and the
next job you aspire to have.
 Marketing Managers
• Marketing managers work in areas related to the marketing
function— getting consumers and clients to buy the
organization’s products or services
• Manage marketing mix
• New-product development,
• Promotion,
• Distribution.
 Financial managers
• Financial managers deal primarily with an organization’s
financial resources.
• They are responsible for such activities as
• accounting,
• cash management,
• investments.
In some businesses, such as banking and insurance, financial
managers are found in especially large numbers.
 Operation managers
• An operations manager is responsible for implementing and
maintaining the processes that an organization uses.
• primary objective is to ensure that the company's operations
• run smoothly and efficiently,
• while also achieving strategic goals and
• meeting customer expectations.
• This includes software and other programs that the
organization uses to function every day
 Sales managers
• A sales manager leads and supervises sales teams and
oversees the day-to-day sales operations of a business.
• This person has a robust set of responsibilities, including
• developing the company's sales strategy,
• setting sales goals,
• and tracking sales performance analytics
 Human resources managers
• Human resources managers are responsible for hiring and
developing employees.
• They are typically involved in human resource planning,
recruiting and selecting employees, training and development,
• designing compensation and benefit systems,
• formulating performance appraisal systems, and discharging
low-performing and problem employees.
 Specialized managers
• Public relations managers deal with the public and media for firms.
• Research & Developmen managers coordinate the activities of
scientists and engineers working on scientific projects in
organizations.
• Project managers plan, organize and execute projects while working
within restraints like budgets and schedules.
• Internal consultants are used in organizations provide specialized
expert advice to operating managers.
• Legal consultants responsible for keeping that company's operations
compliant with all the relevant laws and regulations.
Manager vs Leader

J.P.Kotter (1991): What leaders realy do? Harvard Business Review, December 1991.
Leadership and Management are related,
but they are not the same
LEADER
• People who can influence the
behaviors of others without
having to rely on force
• People whom others accept as
leaders
• Formal or informal
• Focuses on energizing people to
overcome hurdles to reach
goals.
A person can be a manager, a leader, or both (or neither).
MANAGER
• A manager is someone whose
primary responsibility is to carry
out the management process
within an organization.
• Allocate the resources of the
organization
• Focuses on monitoring results,
comparing them with goals and
correct deviation
 LEADER MANAGER
Develops a vision & sets
the direction

Develops the plan &

budget

Creates & stuffs the

organizational structure

Alings people to the vision

&direction

Motivates and inspire Controls the work and

people to keep going solves problems

How managers and leaders can work together (adapted from Kotter, 2001)
Organizations need both management and
leadership if they are to be effective.
LEADER coping with change to
create and fulfil new goal
Establishing Direction
• Developing a vision of the future,
• Developin strategies to achieve that vision.
Aligning People
• Communicating the direction
• influence the creation of teams and coalitions
• Help to understand the visions and strategies
and accept their validity.
MANAGER coping with compexity
to achieve orderly results
Planning and Budgeting.
• Establishing detailed steps and timetables for
achieving needed results
• Allocating the resources necessary to make those
needed results happen.
Organizing
• Establishing some structure for accomplishing plan
• staffing that structure with individuals,
• delegating responsibility and authority
• providing policies and processes
• creating methods or systems to monitor
implementation
Organizations need both management and
leadership if they are to be effective.
LEADER create change
Motivating and Inspiring
• Energizing people to overcome major barriers
• by satisfying very basic, but often unfulfilled,
human needs
Produces change
• often to a dramatic degree, for example, new
• products that customers want,
• new approaches to labor relations that help
make a firm more competitive.
MANAGER achieve orderly results
Controlling and Problem Solving
• Monitoring results versus planning
• Identifying deviations, and then planning and
organizing to solve these problems
• Produces a degree of predictability
• produce consistently major results expected
by various stakeholders (for example, for
customers, always being on time; for
stockholders, being on budget)
 Managers... Do things right
• Focus on things
• Look inward
• Execute plans
• Improve the present
• See the trees
• Control subordinates
• Direct & coordinate
• Manage change
• Serve superordinates
• Use authority
(J. P. Kotter)
• Avoid conflict
• Act responsibly
• Cope with complexity
• Work with the status quo
• Ask what
• Plan short term
• Organise people
• Administrate and control
• Focus on systems and structures
• Follow the vision
• Work in the present
 Leaders... Do the right things
(J. P. Kotter)
• Focus on people • Act decisively
• Look outward • Cope with change
• Articulate a vision • Challenge the status quo
• Create the future
• Ask why
• See the forest
• Plan long term
• Empower Colleagues
• Trust & develop • Align people
• Create change • Motivate and inspire
• Serve subordinates • Focus on people
• Use influence • Communicate and deliver the
• Use conflict vision
• Look into the future
14 Peaks: Nothing Is Impossible
Contemporary
Management
challeges & issues
 Contemporary Management challenges
Characteristics of the new workplace that is emerging in
organizations today.:
• The new workplace is characterized by workforce expansion and
reduction.
 Contemporary Management challenges
• Characteristics of the new workplace that is emerging in
organizations today.:
• The new workplace is characterized by workforce expansion and
reduction.
• Diversity is also a central component, as is the new worker.
 Contemporary Management challenges
• Characteristics of the new workplace that is emerging in
organizations today.:
• The new workplace is characterized by workforce expansion and
reduction.
• Diversity is also a central component, as is the new worker.
• Organization change is also more common, as are the effects of
information technology and new ways of organizing.
 Contemporary
Management Issues
• Sluggish economy that limits growth.
• Acute labour shortages in high-technology job sectors and an oversupply of less skilled
labour
• An increasingly diverse and globalized workforce
• The need to create challenging, motivating, and flexible work environments
• The effects of information technology on how people work
• The complex array of new ways of structuring organizations
• Increasing globalization of product and service markets
• The renewed importance of ethics and social responsibility
• The use of quality as the basis for competition
• The shift to a predominately service-based economy
• The consequences of the coronavirus pandemic
 Business ethics
• A company’s actions are guided by a set of moral standards.
• Ethics is an individual’s personal beliefs about whether a behavior,
action, or decision is right or wrong.
• Ethics are associated with individuals and their decisions and
behaviors.
• It leads interactions with the government and other enterprises,
• its treatment of employees, and
• its relationships with customers.

• Ethical behavior: behavior that conforms to generally accepted

social norms (its opposite is: unethical behavior)
• Managerial ethics consists of the standards of behavior that guide
individual managers in their work.
 Business ethics
• Numerous ethical issues stem from how employees treat the
• individuals in organization. It includes, hiring and firing, wages
and working conditions, and employee privacy and respect.
• the organization, especially in regard to conflicts of interest,
secrecy and confidentiality, and honesty.

• Business ethics affects both the internal organization and

the external perception of the company.
• Internally, having solid ethics can mean having guiding values,
fostering a culture of compliance and enforcing a code of
conduct.
• Externally, the ethics of the organization can influence the
reputation of the company and the public perception. It is an
opportunity to build trust with customers and avoid costly legal
action.
https://www.stryker.com/us/en/about/gov
ernance/code-of-conduct.html
 Dilemmas of Social responsibilities
Social responsibility is the set of obligations an organization has to protect and enhance the societal
context in which it functions.

1. The purpose of business is to

generate profit for owners.
 Social responsibility as competitive
advantage

Strategy and Society: The Link Between

Competitive Advantage and Corporate
Social Responsibility by Michael E. Porter
and Mark R. Kramer, HBR, Dec. 2006.
 Social responsibility as competitive
advantage

Strategy and Society: The Link Between

Competitive Advantage and Corporate
Social Responsibility by Michael E. Porter
and Mark R. Kramer, HBR, Dec. 2006.
Good citizenship
Value chane social impact
mitigate harm
 Value chane social impact
Transfrom value chane
• Reducing carbon foot-print
Social dimention of competitive context
 Sustainability, ethics and social
responsibility
• Sustainability is usually divided into environmental, social and
economic (ESE) dimensions.
• Increasing attention on pollution and business’s obligation to help
clean up our environment, the issue of climate change, business
contributions to social causes, and so forth.
• Actions taken towards
• greater protection of the natural environment,
• greater consideration of the social aspects inside and outside the company
itself (including the welfare of workers and impacts on communities and
wider society),
• sustainability and ethics that guide business practises and processes in the
broadest sense.
 Sustainability as competitive advantage

Walsh, Dodds (2017): Measuring the Choice of

Environmental Sustainability Strategies in Creating
a Competitive Advantage,Business Strategy and
the Environment Bus. Strat. Env. 2017 Published
online in Wiley Online Library
Summary
 Key Points
• Discussed the nature of management, define management and
managers, and characterize their importance to contemporary
organizations.
• Identified and briefly explained the four basic management functions
in organizations: planning, organizing, leading and controlling.
• Described the kinds of managers found at different levels and in
different areas of the organization.
• Identifed the basic managerial roles (interpersonal, decision-
making)that managers play and the skills (technical, human and
conceptual and others) they need to be successful.
• Characterized the new workplace that is emerging in organizations
today.
• Discussed the contemporary management challenges and issues.
 Questions for Review
1. What are the four main challenges faced by modern business managers? Briefly explain these.
2. List the managerial skills, explain each of them briefly.
3. Provide the definition and detail the characteristics of organizations.
4. Define management.
5. Name the management functions, illustrate the process of management with a figure, and
explain it as well as the relationships between the functions.
6. Describe each management function and their content in detail along the related
subfunctions.
7. Compare and explain the features of leaders and managers according to Kotter’s
approach. Detail at least five differences.
8. Present and briefly explain the levels of management. Write an example for each.
9. Name the groups of managerial roles defined by Mintzberg. Present (name and explain) each
of the roles (examples could also be included)