Managerial Challenges and Opportunities

• Respond to Economic Pressures

• Respond to Globalization
• Increased Foreign Assignments
• Overseeing Movement of Jobs to Countries with Low-Cost Labor
• Working with People from Different Cultures
• Managing Diversity
• Create a Positive Work Environment
• Create a Positive Work Environment
• Improve Ethical Behavior
• Improve People Skills
• Work in Networked Organizations
• Stimulate Innovation and Change
• Improve Customer Service
• Help Employees Balance ‘Work–Life Conflicts’
How Managers Achieve Effectiveness
Exhibit Levels of Organizational Strategy
Exhibit Managerial Levels

1–4
Exhibit Skills Needed at Different Management Levels

1–5
Management Functions: What do Managers
perform
Organizing(2)

Analysis (SWOT) Allocating resources

Goals Who will do what
Strategy Planning(1) Directing
Investments
Leading (3) Team &
Outcomes motivation
Timeline Review and monitoring
evaluating progress

Controlling(4)

Managers coordinate and oversee the work of other people so

that organizational goals can be accomplished. 6
 Managers: Achieving Effectiveness
• Planning Effective Performance
• The planning function includes defining the ends to be achieved and
determining appropriate means to achieve defined ends. This function
follows from the nature of organizations as purposive (end-seeking) entities.

• Organizing Effective Performance

• The organizing function includes all managerial activities that translate
required planned activities into a structure of tasks and authority.
• involves (1) designing the responsibility and authority of each individual job and
(2) determining which of these jobs will be grouped in specific departments.

• Many different individuals and groups and activities -> Senior Management’s
responsibility is to devise integrating methods and processes
 Managers: Achieving Effectiveness
• Planning and Organizing provide guidelines and
directives in the form of:
• Strategic, Annual & Operational Plans, Strategies, Actions
• Job Descriptions
• Organization charts
• Policies, guidelines and procedures

• People have unique needs, ambitions, personalities, and

attitudes.
 Managers: Achieving Effectiveness
• Leading Effective Performance
• Leading involves day-to-day interactions between
managers and their subordinates. Leading is the most
human oriented. Thus, it requires Strong Interpersonal
Skills / Effective Emotional Intelligence Skills

• Effective leaders use words and symbols to express the

organization’s abstract ideals and what it stands for.
- Effective Interpersonal & Emotional Intelligence Skills
 Managers: Achieving Effectiveness
• Controlling Effective Performance
• Managers undertake control to determine whether intended
results are achieved and if they aren’t, why not.
 Controlling function involves explicit consideration of effectiveness at all
three levels: Individual, Group, and Organizational.

• Activities that managers undertake to ensure that ‘actual outcomes’

are consistent with ‘planned outcomes’. include employee selection
and placement, materials inspection, performance evaluation,
financial statement analysis, and other well-recognized managerial
techniques.
 Why managers are important to
organizations
Managers are important to organizations for three reasons.
• Organizations need their managerial skills and abilities in uncertain,
complex, and chaotic times.
• Managers are critical to getting things done in organizations.
• Finally, managers contribute to employee productivity and loyalty; the
way employees are managed can affect the organization’s financial
performance; and managerial ability has been shown to be important in
creating organizational value.
 Functions, Roles, and Skills of
Managers
• Mintzberg’s managerial roles include
• Interpersonal, which involve people and other ceremonial/symbolic duties
(figurehead, leader, and liaison);
• Informational, which involve collecting, receiving, and disseminating information
(monitor, disseminator, and spokesperson); and
• Decisional, which involve making choices (entrepreneur, disturbance handler,
resource allocator, and negotiator).

• Mintzberg’s newest description of what managers do proposes that managing is

about influencing action, which managers do in three ways: by managing actions
directly, by managing people who take action, and by managing information that
impels people to take action.
 Katz’s Managerial skills
• Technical (job-specific knowledge and techniques),
• Human (ability to work well with people), and
• Conceptual (ability to think and express ideas).
• Technical skills are most important for lower-level managers while conceptual
skills are most important for top managers. Human skills are equally
important for all managers.

• Some other managerial skills also identified include managing human capital
(Refers to: Knowledge (know what), Advanced skills (know how), System
understanding and creativity (know why), Motivation to deliver high-quality
products and services (care why)), inspiring commitment, managing change,
using purposeful networking, and so forth.
Benchmarking
Exhibit 18–7 Managerial Decisions in the Control Process

18–16
Exhibit Steps in Benchmarking

Source: Based on Y.K. Shetty, “Aiming High: Competitive Benchmarking for Superior Performance,”
Long Range Planning. February 1993, p. 42.
 Interaction of
Individual, Teams, Organizational Effectiveness

At every level, Managers have the primary responsibility for

attaining effective performance
 Three(3) Levels of Performance Outcomes
• Outcomes are the key variables that you want to explain
or predict, and that are affected by some other variables.

1.Individual-level Outcomes like attitudes and satisfaction, task

performance (i.e., core duties and responsibilities), citizenship behavior
(Performance beyond Expectations), and withdrawal behavior

2.Group-level Outcomes like cohesion and functioning

3.Organizational-level Outcomes like overall profitability and survival.

LEADERSHIP
 Define Leadership and contrast
Leadership and Management

• Leadership is the ability to influence a team/group toward the

achievement of a vision or set of goals.
Strong Leadership and Strong Management are needed for
‘Optimal Effectiveness’

• Leaders are needed today to challenge the status quo, create visions of the
future, and inspire organizational members to want to achieve the visions.

• Managers formulate detailed plans, create efficient organizational

structures, and oversee day-to-day operations. 12-22
• Studying Leadership
Leadership Framework

• Various traits, behavioral

styles, and situational
variables found in the
leadership literature.
1-23
 Traits‫خصوصیت امتیازیوصف‬
‫۔‬ Associated with
Leadership Effectiveness

• Early stages of leadership Research focuses on personality, social,

physical, or intellectual attributes that differentiate leaders from non-
leaders.

• Traits around the Big Five personality framework

1-24
 Trait Theories of Leadership
• This theory attempts to identify (and focus on) specific
characteristics (physical, mental, personality) associated with
leadership success.
Nelson Mandela, Apple co-founder Steve Jobs etc. are recognized as
charismatic, enthusiastic, and courageous leaders.

• Relates various traits to certain success criteria.

Productivity, Job satisfaction, Turnover, absenteeism, and
grievance, Costs and Employee & managerial motivation.
12-25
 Situational Theories of Leadership:

According to this theory, Leaders should (i) understand their

own behavior, (ii) their subordinates’ behaviors, and
(iii) the situation before utilizing a particular leadership style.

Situational theories of leadership suggest that

Leadership Effectiveness depends on the fit between
personality, task, power, attitudes, and perceptions.
1-26
 Compare and contrast
Charismatic and Transformational Leadership
• Creativity, theirs and others.
• Decentralization of responsibility.
• Propensity to take risks.
• Compensation is geared toward long-term outcomes/results.
• Greater agreement among top managers about organization’s goals.
• Increase follower self-efficacy, giving the group a “can do” spirit.

12-27
 Fundamentals of

ORGANIZATION
CULTURE
 Organizational Culture
The pattern of shared values, beliefs and assumptions considered
to be the appropriate way to think and act within an organization.

Characteristics of
Organizational Culture

Organizational Culture varies from

organization to organization
 Exhibit 10-2 Comparing/Contrasting Organization Cultures
Organization A Organization B

• Managers must fully document all •Management encourages and rewards risk-taking
decisions. and change.
• Creative decisions, change, and risks are not •Employees are encouraged to run with ideas,
encouraged. and failures are treated as learning experiences.
• Extensive rules and regulations exist for all •Employees have few rules & regulations to
employees. follow.
• Productivity is valued over employee •Productivity is balanced with treating its people
morale. right.
• Employees are encouraged to stay within •Team members are encouraged to interact with
their own department. people at all levels and functions.
• Individual effort is encouraged. •Many rewards are team-based.
 Foundations of

ORGANIZATION
STRUCTURE
 Organization Structure and Performance
(Work Attitudes/Behaviors)

• An organization’s internal structure contributes to

explaining and predicting behavior (in addition to
individual and group factors).

• It shapes their attitudes, facilitates and motivates

them to higher levels of performance.
Choosing
appropriate
Organizationa
l Design
 Organizational Structure/Design should
align/match with Organizational Strategy
• Because structure is a means to achieve objectives, and
objectives derive from the organization’s overall strategy,

• Organizational Strategy has three (3) dimensions:

1. Innovation
2. Cost Minimization, and
3. Imitation ‫قلید‬
///‫ ت‬/‫یروی‬
‫ ۔‬///‫— پ‬
(and the structural design that works best with each).
 Organizational Strategy
1.Innovation Strategy: A strategy that emphasizes the introduction
of major new concepts, processes, products, and services.

2.Cost-minimization Strategy: A strategy that emphasizes tight

cost controls, avoidance of unnecessary innovation or marketing
expenses, and price cutting.

3.Imitation Strategy: A strategy that seeks to move into new

products or new markets only after their viability has already been
proven.
 Organizational Strategy and
Organizational Structure Alignment
 Organizational Environments and
Organizational Design

When determining an appropriate organizational design,

managers will need to consider scarcity, dynamism, and
complexity of the environment and
 Accordingly Balance the Organic and Mechanistic
elements appropriate to their organization’s
environment.
 Organization Environment – 3 Dimensions:
(Capacity, Volatility, and Complexity)
1.Capacity refers to the degree to which the environment can support
growth. Rich and growing environments generate excess resources, which
help them in times of relative scarcity.

2.Volatility describes the degree of instability in the environment. A

dynamic environment with a high degree of unpredictable change makes it
difficult or management to make accurate predictions.

3.Complexity An organization is affected by forces that can affect its

performance e.g., suppliers, customers, competitors, government
regulatory agencies, and public pressure groups.