Innovative Management Skills Chapter 1

By: Chandana Fonseka

Learning objective of this subject

Management
The word management probably comes from the Italian language (in 1561) maneggiare meaning "to control the horse"

Management has a clear link with organization

What is an Organization?
Is a social entity that is deliberately structured in a systematical manner to achieve goals
Organization is a social entity as it comprises of people Organizations mostly have management structures that determine the relationships between functions and positions Organizations are open systems that they affect and are affected by the environment

Who can influence an orgnization?

Internal External
Connected

Employees in organizations carry out various tasks. There are two commonly considered terms in this regard Efficiency & Effectiveness

Efficiency ?

Effectiveness ?

Employees in organizations carry out various tasks. There are two commonly considered terms in this regard Efficiency & Effectiveness
Efficiency
The degree of achieving stated goals e.g. A company has an annual target of achieving Rs. 5 b from the modern trade business. The company actually achieved Rs. 4 b at the end of the year Thus, the efficiency is 80%

Effectiveness
Amount of resources utilized to achieve organizational goals e.g. to achieve 4b business, the company utilized Rs. 1b worth of resources in terms of people, machinery and equipment, etc Thus the effectiveness in 25% to revenue

Doing things right

Doing the right thing

Success factor

Approach impact

Formal Definition Management

Resources Human, Financial, Material, Technological, Information, etc.

Planning Select goals and ways to achieve them

Organizing Assign responsibility for task accomplishment

Leading Use influence to motivate employees

Controlling

Monitor activities and make corrections to ensure achievement

1. Attain organizational goals 2. 4 managerial functions

Performance Attain goals

Formal Definition Management

Resources Human, Financial, Material, Technological, Information, etc.

Planning Select goals and ways to achieve them

Organizing Assign responsibility for task accomplishment

Leading Use influence to motivate employees

Controlling

Monitor activities and make corrections to ensure achievement

1. Attain organizational goals 2. 4 managerial functions

Performance Attain goals

Lack of Planning!

Tell 3 things that you can plan in your personal life

Tell 3 things that you can plan in your official life

Formal Definition Management

Resources Human, Financial, Material, Technological, Information, etc.

Planning Select goals and ways to achieve them

Organizing Assign responsibility for task accomplishment

Leading Use influence to motivate employees

Controlling

Monitor activities and make corrections to ensure achievement

1. Attain organizational goals 2. 4 managerial functions

Performance Attain goals

Formal Definition Management

Resources Human, Financial, Material, Technological, Information, etc.

Planning Select goals and ways to achieve them

Organizing Assign responsibility for task accomplishment

Leading Use influence to motivate employees

Controlling

Monitor activities and make corrections to ensure achievement

1. Attain organizational goals 2. 4 managerial functions

Performance Attain goals

Formal Definition Management

Resources Human, Financial, Material, Technological, Information, etc.

Planning Select goals and ways to achieve them

Organizing Assign responsibility for task accomplishment

Leading Use influence to motivate employees

Controlling

Monitor activities and make corrections to ensure achievement

1. Attain organizational goals 2. 4 managerial functions

Performance Attain goals

Formal Definition Management

Resources Human, Financial, Material, Technological, Information, etc.

Planning Select goals and ways to achieve them

Organizing Assign responsibility for task accomplishment

Leading Use influence to motivate employees

Controlling

Monitor activities and make corrections to ensure achievement

1. Attain organizational goals 2. 4 managerial functions

Performance Attain goals

Managerial Skills

A manager should have the following primary management Skills

Conceptual Skills Human Skills Technical Skills

Conceptual Skills Cognitive ability to see the organization as a whole and the relationships among its parts (processes) Human Skills Ability to work with and through other people and to work effectively as a group member Technical Skills Understanding of and proficiency in the performance of specific tasks

Manager should have the following management Skills

Conceptual Skills Human Skills Technical Skills

Top level managers need more conceptual skills and less technical skills whilst lower level managers need more technical skills. Human skills are equally important for all managers, irrespective of their level

Management Types
Various types of managers could be seen in an organization.

Basically, these differences could be seen vertically as well as horizontally

Vertical Differences Top managers Middle managers First-line managers
Horizontal Differences General managers Functional managers Staff managers

Management Types
Vertical Differences Top managers Middle managers First-line managers

Top

Managers
Middle Managers

Front-line Managers

Top Managers Responsible for setting organizational goals defining strategies for achieving them monitoring and interpreting the external environment making decisions that impact on the entire organization e.g. CEO, Chairman, MD, etc.

Middle Managers Responsible for business units and major departments. They implement the overall strategies and policies defined by top managers (e.g. Division heads such as Manager credit control, Manager Invoicing, Project Manager, etc.
Front-line Managers Responsible in facilitating individual employee performance . E.g. Supervisors, Line Managers, etc.

Management Types
Horizontal Differences
General Managers Functional managers Line managers Staff managers
General Managers are responsible for several departments that perform different tasks Functional Managers are responsible for departments that perform a single functional task and have employees with similar training and skills. Line managers are responsible for one single product line Staff Managers are in charge of departments such as finance and HR that support line departments.

Why should a manager have

Conceptual skills? Technical skills? Human skills?

Discussion time 15 minutes

Select one of the skills and explain Provide suitable examples to justify your thoughts

Managers Roles (10 roles 3 categories)

Informational
Monitor Seek and receive information, scan periodicals and reports, maintain personal contacts

Interpersonal
Figurehead Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents

Decisional
Entrepreneur Initiate improvement projects, identify new ideas, delegate idea responsibility to others

Disseminator Forward information to other organization members, send memos and reports, make phone calls

Leader Direct and motivate subordinates, train, counsel, and communicate with others

Disturbance handler Take corrective actions during disputes and crisis

Spokesperson Transmit information to outsiders through speeches, reports and memos

Liaison Maintain information links both inside and outside organization

Resource allocator Decide who gets resources, schedule budget and set priorities

Negotiator Represent department during negotiation of union contracts, sales, purchases, etc.

Managers Roles (10 roles 3 categories)

Informational
Monitor Seek and receive information, scan periodicals and reports, maintain personal contacts

Interpersonal
Figurehead Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents

Decisional
Entrepreneur Initiate improvement projects, identify new ideas, delegate idea responsibility to others

Disseminator Forward information to other organization members, send memos and reports, make phone calls

Leader Direct and motivate subordinates, train, counsel, and communicate with others

Disturbance handler Take corrective actions during disputes and crisis

Spokesperson Transmit information to outsiders through speeches, reports and memos

Liaison Maintain information links both inside and outside organization

Resource allocator Decide who gets resources, schedule budget and set priorities

Negotiator Represent department during negotiation of union contracts, sales, purchases, etc.

Managers Roles (10 roles 3 categories)

Informational
Monitor Seek and receive information, scan periodicals and reports, maintain personal contacts

Interpersonal
Figurehead Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents

Decisional
Entrepreneur Initiate improvement projects, identify new ideas, delegate idea responsibility to others

Disseminator Forward information to other organization members, send memos and reports, make phone calls

Leader Direct and motivate subordinates, train, counsel, and communicate with others

Disturbance handler Take corrective actions during disputes and crisis

Spokesperson Transmit information to outsiders through speeches, reports and memos

Liaison Maintain information links both inside and outside organization

Resource allocator Decide who gets resources, schedule budget and set priorities

Negotiator Represent department during negotiation of union contracts, sales, purchases, etc.

Exercise: Find whether the following statements are true or false

1 Planning, Leading, organizing and controlling are the main managerial functions 2 Collecting details about competitors and their future strategies is explained in monitoring role of a manager

3 Middle managers are responsible for setting goals for the entire organizations
4 Conceptual skills are equally important for all levels of managers in an organization 5 Conceptual skills refer to the ability to understand and view an organization as a whole (holistic view) 6 A line manager who is responsible in producing a part of a product is expected to have more conceptual skills than technical skills 7 Production Manager is a General Manager 8 The role of disseminator refers to transmitting organization information to outside parties

9 Be a liaison officer is a type of informational role

10 A manager discussing with trade union to settle a dispute occured with regard to the new salary structure is an example that a manager plays the figurehead role

Old workplace vs. New Workplace

Rapid changes are happening in the environment which impact on managers job. The differences in between an old workplace and a new workplace could be discussed under 3 main headings:

Characteristics
Forces Management competencies needs

 Characteristics
Old workplace Physical assets were important (e.g. Machines, Vehicles, etc.) Work of employees were routine, specialized and with standardized control procedures (structured) Employees were expected to be loyal New workplace Information is the most important (info. battle) More flexible hierarchies (organized around networks) and virtual offices Employees are perceived as free agents and empowered

 Focus
Old workplace Mechanical Market Local/Domestic New workplace Digital (computer based) Market Global (via ebusiness)

Homogenous workforce Diverse workforce Stability and efficiency was Change and speed is considered as valuable considered to be valuable Events were predictable Events are more turbulent

 Management Competencies:
Old workplace Autocratic Leadership Focus on profit Work by individuals Conflicts and competition were frequently found in employee relationships Efficient performance New workplace Empowering employees Focus on stakeholder relationships Work by teams Collaboration is inculcated among employees Learning culture

Some Vital Tips to Manage a Crisis

1. 2. 3. 4. 5. Stay calm Be visible Put people before business Tell the truth Know when to get back to business

The End