Module 2 Foundation of Management • Topic learning Outcomes: • Describe the characteristics of an organisation. • Explain why managers are important to an organisation • Classify managers and non-managerial employees. • Describe the functions, roles and skills of managers • Discuss whether the manager’s job is universal. • Outline the factors that are reshaping and redefining the manager’s job. • Explain the value of studying management • Define the terms: efficiency and effectiveness. Online preparation review Organisation Purpose • In groups, select 3 examples of organisations you know very well. Ones you have been involved with (As a member, employee, customer, fan…). They can be of any kind, size, nationality… • Explain what is the purpose of each organization Why are organisations changing? • Organisations change because the world around us is changing. Societal, economic, global and technological changes have created an environment in which successful organisations must embrace new ways of achieving their goals. Who are Managers? How About? What do Managers do? Form into small groups and discuss what you think are some general key functions performed by managers. The functions should not be specific to any particular job, but could exist in any managers daily activities. What do Managers do? • Based on the 1916 work of Henri Fayol, there are four main functions all managers undertake to achieve the purpose of the organization Who are Managers? Top Managers – responsible for making organisation-wide decisions and establishing the goals and plans that affect the entire organisation. Middle Managers – responsible for making department-wide decisions regarding the goals and plans that affect the department. Front Line Managers – manage the work of non-managerial employees who are directly involved with the production or creation of products or services. Management Levels Manager’s Job Universal? Organisational Level - All managers regardless of level make decisions. They plan, organise, lead and control. Top managers are likely to be concerned with designing the overall organisation, whereas lower level managers are more likely to focus on designing the jobs of individuals and work groups. In general when managers move up within the organisation they do more planning and less direct supervising. What do Managers do? Management Roles – refers to specific categories of managerial behaviour. They are the expectations and responsibilities associated with being a manager. They can be divided into Interpersonal, Informational, and Decisional Roles. Interpersonal Roles – duties that involve people. Figurehead – symbolic head; obliged to perform a number of routine duties of a legal or social nature. Leader – responsible for the motivation of subordinates; responsible for staffing, training and associated duties. Liaison – Maintains self-developed network of outside contacts. What do Managers do? Informational Roles – receiving, collecting, and disseminating. Monitor – seeks and receives wide variety of internal and external information to develop greater understanding. Disseminator – transmits information through the organisation. Spokesperson – transmits information outside the organisation. What do Managers do? Decisional Roles – revolve around making decisions. Entrepreneur – searches for opportunities. Disturbance Handler – corrective action during disturbances. Resource Allocator – making or approving decisions. Negotiator – represent the organisation at negotiations. What do Managers Need? Managers need three essential skills or competencies. Technical Skills – Knowledge of and proficiency in a certain specialised field. Job specific and usually associated with Front Line Managers. Human Skills – The ability to work well with other people and in a group. Important to all levels of management required to communicate, motivate, lead, and inspire enthusiasm and trust. Conceptual Skills – Must be able to view the organisation as a whole, and understand the relationships between its parts, as well as where the organisation fits in the broader environment. Essential to effective decision making. Is a Managers Job Universal? Organisational Area – The mixture of roles of a particular manager will depend on the functional area of the organisation. Manufacturing and production managers perform more decisional roles, marketing/sales managers perform more interpersonal roles, and accounting managers perform more informational roles. All managers are still required to coordinate the activities of others through the functions of planning, organising, leading, and controlling. Is a Managers Job Universal? Organisational Size – Is the managers job any different in a small organisation than a large one? Small Business - an independently owned and operated, profit seeking business with fewer than 20 employees. Small – More outwardly directed management activities. Large – More internally directed management activities. Managers in both small and large organisations perform essentially the same activities but how they go about them and the proportion of time they spend on each one are different. Efficiency & Effectiveness
ACTIVITY: Is it possible to be effective but not efficient?
Or efficient but not effective? Discuss with those around you and give examples of how this may occur?