Slide 10.

FACULTY OF BUSINESS, ACCOUNTING & MANAGEMENT

MANAGING ORGANISATION
MGT3553

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Chapter 10
Understanding management

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Management as making
things happen
Management can be regarded as:
• taking place within a structured organisational
setting and with prescribed roles;
• directed towards the attainment of aims and
objectives;
• achieved through the efforts of other people;
• using systems and procedures.

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A basic framework of study

Figure 10.1 A basic framework of study

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Thinking about management

‘Management is of pivotal importance for
modern society. It is for this reason that, no
matter what, thinking about management,
certainly at university level, is of great
relevance to management practice. So apart
from the question of whether management’s
claim that it is indispensable is really valid or
not, the fact that practically everyone believes it
is, is what counts.’
Foppen
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The process of management

• Management is essentially an integrating
activity.
• Management is not homogeneous.
• It takes place in different ways and at
different levels of the organisation.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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The process of management

(Continued)

Figure 10.3 The central focus of management

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Common activities
of management: Fayol
Fayol identified the main elements of
managements as:
– Planning
– Organising
– Command
– Co-ordination
– Control

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
Slide 10.9

Principles of management: Fayol

Fayol also suggested 14 principles of management:
• Division of work • Centralisation
• Authority and • Scalar chain
responsibility • Order
• Discipline • Equity
• Unity of command • Stability of tenure of
• Unity of direction personnel
• Subordination of • Initiative
individual to general • Esprit de corps
interest
• Remuneration of
personnel
Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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The practice of management: Hamel

• Setting and programming objectives
• Motivating and aligning effort
• Co-ordinating and controlling activities
• Developing and assigning talent
• Accumulating and applying knowledge
• Amassing and allocating resources
• Building and nurturing relationships
• Balancing and meeting stakeholder demands

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
Slide 10.11

Responsibility for the work of others:

Drucker

• Three tasks:
– Fulfilling the purpose and mission of the institution
– Making work productive
– Managing social impacts and responsibilities

‘Who is a manager can be defined only by that

person’s function and by the contribution he or she is
expected to make… The one contribution a manager
is uniquely expected to make is to give others vision
and ability to perform. It is vision and moral
responsibility that, in the last analysis, define the
manager’.
Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Summary of essential nature

of managerial work

Figure 10.4 Summary of essential nature of managerial work

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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The efforts of other people

‘(a manager’s job is) … deciding what should be
done and then getting other people to do it. A
longer definition would be concerned with how
these tasks are to be accomplished. The first
task comprises setting objectives, planning and
setting up formal organisation. The second
consists of motivation, communication, control
and the development of people.
The two tasks are separated for convenient
analysis, but in practice they may often overlap’.

Stewart
Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Management in private enterprise and

public sector organisations

Despite significant differences, both private and

public sector organisations have to address the
same general problems of management. This
involves:
– the clarification of aims and objectives;
– the design of a suitable structure;
– carrying out essential administrative functions;
– the efficiency and effectiveness of their
operations.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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The work of a manager

Factors influencing a manager’s work include:
– the nature of the organisation, its philosophy,
objectives and size;
– the type of structure;
– activities and tasks involved;
– technology and methods of performing work;
– the nature of people employed;
– the level in the organisation at which the manager is
working.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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The environmental setting

Figure 10.5 The work of a manager: the environmental setting

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Managerial roles: Mintzberg

• Interpersonal roles • Decisional roles
– Figurehead role – Entrepreneurial role
– Leader role – Disturbance handler
– Liaison role role
• Informational roles – Resource allocator
– Monitor role role
– Negotiator role
– Disseminator role
– Spokesperson role

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Why organisations need

managers
Mintzberg identified six purposes of the manager:
– to ensure the organisation serves its basic purpose;
– to design and maintain the stability of operations;
– to take charge of strategy-making and adaptation to
changing environment;
– to ensure the organisation serves the ends of those who
control it;
– to be the key informational link between the organisation
and the environment;
– as formal authority to operate the organisation’s status
system.

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Agenda-setting and network-building:

Kotter

Despite working in different jobs and

organisations, most managers undertake two
common activities:
– Agenda-setting involves aims, objectives, plans,
strategies, ideas, decisions and priority actions
to achieve desired end results.
– Network-building involves interacting with others
and establishing co-operative relations outside
the formal structure to assist the achievement of
agendas.
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Demands, constraints and choices:

Stewart

The three main categories of managerial work

involve:
• Demands – what anyone in the job must do
to meet minimum performance criteria.
• Constraints – internal or external factors
which limit what the manager can do.
• Choices – the activities which a manager is
free to do or not do.

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Theory X and Theory Y management:

McGregor

Theory X management assumes that:

– the average person is lazy and has an inherent
dislike of work;
– most people must be coerced, controlled, directed
and threatened with punishments if the organisation
is to achieve its objectives;
– the average person avoids responsibility, preferring
to be directed;
– motivation occurs only at the physiological and
security levels.

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Theory X and Theory Y management

(Continued)

Theory Y management assumes that:

– for most people work is as natural as play or rest;
– people will exercise self-direction and self-control;
– commitment to objectives is a function of rewards
associated with their achievement;
– given the right conditions, the average worker can
accept and seek responsibility;
– the capacity for creativity in solving organisational
problems is distributed widely;
– the intellectual potential of the average person is only
partially utilised;
– motivation occurs at the affiliation, esteem and self-
actualisation levels.

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Demands of the situation

• Theory X and Y represent extremes of the
natural inclination of managers towards a
particular style of behaviour.
• In practice, the actual management style
adopted is influenced by the demands of
the given situation.

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Slide 10.24

The Managerial/Leadership
Grid®
• The grid is developed by Blake and Mouton.
• It provides the basis for a description and
comparison of managerial styles.
• It involves two key dimensions:
– Concern for production (horizontal axis)
– Concern for people (vertical axis).

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Management systems: Likert

Four organisational management systems
– System 1: Exploitive authoritative
• Decisions are imposed on staff and motivation is based on threats.
– System 2: Benevolent authoritative
• Condescending form of leadership with motivation based on system of
rewards.
– System 3: Consultative
• Some trust in staff, motivation based on rewards and also some
involvement.
– System 4: Participative
• Involves trust and confidence in staff with motivation based on rewards
for achievement of agreed goals.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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Supportive relationships
Likert suggests three fundamental concepts of
System 4 Management:
– the principle of supportive relationships,
particularly between supervisor and subordinate;
– group decision-making and models of
organisation and supervision;
– high-performance aspirations throughout the
organisation.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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The effective management of people

Figure 10.8 The effective management of people

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Managing with and through people

Underlying philosophies for the successful
management of people might include:
• Consideration, respect and trust
• Recognition and credit
• Involvement and availability
• Fair and equitable treatment
• Positive action on an individual basis
• Emphasis on end results
• Staff and customer satisfaction

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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What makes a good manager?

• They understand how to model leadership
behaviours, inspire a shared vision and enable
and support others to act.
• They champion learning and development for
themselves and their teams and create an
environment where the giving and receiving of
feedback is the norm.
• They know and listen to their team and encourage
open discussion and constructive challenge.
GOV.UK
Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016
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The future of management:

Owen
‘The job of the manager is changing out of all
recognition. Managers are still the glue that holds
the organisation together. But it is no longer
about connecting the top and bottom of the
organisation. It is about connecting a network of
power and influence to make things happen
through other people… The job has changed
from instructing to enabling. This makes the
manager’s job harder but more rewarding’.

Mullins, Management and Organisational Behaviour, 11e © Pearson Education Limited 2016