Management Fundamentals Chapter 1
Learning Goals • I will be able to explain the challenges facing 21st Century managers • I will be able to describe the characteristics and performance of a successful organization. • I will be able to define what is a manager and what are the levels of management • I will be able characteristics and skills a successful manager needs. • I will be able to explain the four functions of management.
The 21st Century Workplace • Today’s workplace is one in which: • Organizations must adapt to change • Economy is global • Innovation and technology drive the economy • Economy is knowledge based • Best employers value people!
What do you think are some challenges of working in the 21st Century workplace?
6 Challenges of Working in the New Economy • Intellectual Capital • Globalization • Technology • Diversity • Ethics • Careers
1. Intellectual Capital • People • What they know, what they learn, what they do with it are the foundation of the organization • Intellectual Capital • Shared knowledge/collective brainpower of the organization • Knowledge Worker • Someone whose mind is a critical asset; someone who adds to collective brainpower
2. Globalization • National boundaries of business world have virtually disappeared • People and countries are increasingly interconnected • Globalization • The worldwide interdependence of resources, markets, and competition of the new economy
3. Technology • Transformation of the workplace through: • Internet • Computers • Information technology • Automation • Increasing demand for knowledge workers • Skills need to be continually updated and mastered
4. Diversity • Workforce Diversity • Differences in age, gender, race, religion, sexual orientation and able-bodiedness • Diverse workforces provide both challenges and opportunities for organizations • Organizations can tap rich talent pool and help everyone to their full potential by valuing diversity • Businesses are improving but inequalities still exist
4. Diversity • Prejudice • Preconceived opinion or attitude not based on reason or experience • Becomes discrimination when minority members are treated unfairly or denied full benefits of membership • Glass Ceiling Effect • Subtle form of discrimination • Prevents women and minorities from rising above a certain level in organizations
5. Ethics • Moral principles that determine “good” or “bad” behaviour • Law requires corporations to have board of directors to look out for interests of shareholders • Corporate Governance • Board of directors actively looking at the activities of corporation to hold management socially responsible • Ethics has become important in today’s business world
6. Careers • Shift from previous generation • Today’s workers: • Will not all work full time • Won’t work for one large employer for duration of career • Are more likely to change jobs and employers • Need skills that are portable and current • Need to upgrade skills
What is an Organization? • Collection of people working together to achieve a common purpose • Allows members to achieve results far beyond reach of individual accomplishment • All organizations have a broad purpose: • Provide useful goods or services that return value to society and satisfy customer needs
Organizations • Interact with environment to transform resources into products and services
Characteristics of Organizations • Three characteristics: • Purpose: to create a good or service • Division of labour: different tasks assigned to different people • Hierarchy of authority: a level-by level management structure of increasing responsibility
Measuring Organizational Performance • Organizations perform well when resources are used efficiently and customers served well • Performance measured in many ways • Productivity • Quality and quantity of work done in relation to resources used • Performance Effectiveness • Measures how well output goals are met • E.g., meeting production targets each day • Performance Efficiency • Measures costs associated with output
Portfolio Work • Read Workopolis.Com on pg 3 • Why do you believe that workopolis has experienced success in the new economy? Provide a minimum of 3 reasons. • Which of the 6 challenges do you believe creates the greatest challenge for employees/employers to overcome? Why?
Learning Goals Revisited • I will be able to explain the challenges facing 21st Century managers • I will be able to describe the characteristics and performance of a successful organization. New Goals • I will be able to define what is a manager and what are the levels of management • I will be able characteristics and skills a successful manager needs. • I will be able to explain the four functions of management.
What is a Manager? • A person who supports and is responsible for the work of others • Responsible for the overall accomplishments and performance of a team, group or the entire organization • Support subordinates whose tasks represent real work of organization • Key Responsibility: • To help others achieve high performance
Levels of Managers • Top • Responsible for entire organization or for a larger part of the organization • CEOs, Presidents, VPs, etc. • Pay special attention to external environment Top
Middle • Middle • In charge of relatively large departments or divisions • Work with top management and peers to develop plans to achieve organizational goals Middle
Levels of Managers • Lower Level Managers • In charge of small groups of non-managerial employees • First line managers • Ensure their teams meet goals of top and middle management Team Leaders / Supervisors
What do Managers do? • Plan meetings • Make work schedules • Inform and clarify goals and tasks • Seek recommendations for improvement • Performance appraisal • Recommend pay increases and new job assignments • Recruit, develop and train new employees • Encourage high performance • Inform high levels of team needs • Coordinate with other teams
Managerial Performance • All managers must be accountable • Accountability: requirement to answer to higher authority • Managers are accountable for achieving results while maintaining high quality of work life environment • Quality of Work Life • Quality of human experiences in workplace • Includes: • Fair pay safe work conditions • Opportunities to learn opportunities to progress • Pride in work and organization
Managerial Performance • High performing managers: • Build working relationships • Help others develop skills and competencies • Foster teamwork • Create work environment of performance and satisfaction
Managerial Success • Skills and characteristics leading to managerial success: • Communication • Teamwork • Self-management • Leadership • Critical thinking • Professionalism
Four Functions of Management • Planning • Setting goals and deciding how to accomplish them • Organizing • Arranging tasks, resources and work of individuals and groups to meet goals • Leading • Inspiring and influencing others to work to meet goals • Controlling • Measuring results, comparing results to goals and taking action as needed