MME 1103 ENGINEERING MANAGEMENT

INTRODUCTION TO THE PRINCIPLES OF MANAGEMENT

Section 2 and 3

Learning Objectives
the major challenges of managing; the drivers of competitive advantage; the functions of management and how they are evolving in todays business; the nature of management at different organizational levels; and the skills you need to be an effective manager, and what to strive for as you manage.

________________________________________________________________________________________________________________________ Copyright International Islamic University Malaysia (IIUM)

Managing In The New Era

Managerial practices will always separate effective from ineffective organizations Four key elements are new elements in business today
Internet Globalization

New Era Management

Knowledge Management

Collaboration Across Boundaries

Managing In The New Era (cont.)

The Internet communication technologies are driving massive change initial enthusiasm for e-business has dwindled 25% of publicly-held Web companies became profitable in 2002 most profitable Web companies sell information-based products that dont require shipping old economy types now using the Internet as a tool to solidify their future

Managing In The New Era (cont.)

Globalization
far more than in the past, enterprises are global competing globally is not easy
companies often overestimate the attractiveness of foreign markets

even small firms that do not operate on a global scale must make strategic decisions based on international considerations
face intense competition from high-quality foreign producers

Managing In The New Era (cont.)

Knowledge management
practices aimed at discovering and harnessing an organizations intellectual resources
unlock peoples expertise, skills, wisdom, and relationships

intellectual capital is the collective brainpower of the organization

Collaboration across boundaries

capitalize on the ideas of people outside the traditional company boundaries
occurs between as well as within organizations
e.g., must effectively capitalize on customers brains

Managing For Competitive Advantage

Best managers and companies deliver all four
Cost Competitiveness Innovation

Competitive Advantage

Quality

Speed

Managing For Competitive Advantage (cont.)

Innovation the introduction of new goods and services comes from people must be a strategic goal must be managed properly Quality excellence of a product, including its attractiveness, lack of defects, reliability, and long-term durability importance of quality has increased dramatically catering to customers other needs creates more perceived quality

Managing For Competitive Advantage (cont.)

Speed fast and timely execution, response, and delivery of results often separates winners from losers in world competition requirement has increased exponentially Cost competitiveness costs are kept low enough so that you can realize profits and price your products at levels that are attractive to consumers key is efficiency - accomplishing goals by using resources wisely and minimizing waste little things can save big money cost cuts involve tradeoffs

The Functions Of Management

Management the process of working with people and resources to accomplish organizational goals good managers must be: effective - achieve organizational goals efficient - achieve goals with minimum waste of resources there are timeless principles of management still important for making managers and companies great must add fresh thinking and new approaches

The Functions Of Management (cont.)

The manager who does not devote adequate attention and resources to all four functions will fail
Leading

Organizing

Controlling

Planning

The Functions Of Management (cont.)

Planning
specifying the goals to be achieved and deciding in advance the appropriate actions taken to achieve those goals delivering strategic value - planning function for the new era
a dynamic process in which the organization uses the brains of its members and of stakeholders to identify opportunities to maintain and increase competitive advantage process intended to create more value for the customer

The Functions Of Management (cont.)

Organizing assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals building a dynamic organization organizing function for the new era viewing people as the most valuable resource the future requires building flexible organizations

The Functions Of Management (cont.)

Leading
stimulating people to be high performers in the new era, managers must be good at mobilizing people to contribute their ideas

Controlling
monitoring progress and implementing necessary changes makes sure that goals are met new technology makes it possible to achieve more effective controls for the future, will have to be able to monitor continuous learning and changing

Management Levels
Top-level managers (strategic managers) senior executives responsible for the overall management and effectiveness of the organization focus on long-term issues emphasize the survival, growth, and effectiveness of the firm concerned with the interaction between the organization and its external environment titles include Chief Executive Officer (CEO), Chief Operating Officer (COO), company presidents and vice presidents

Management Levels (cont.)

Middle-level managers (tactical managers) located between top-level and frontline managers in the organizational hierarchy responsible for translating strategic goals and plans into more specific objectives and activities traditional role was that of an administrative controller who bridged the gap between higher and lower levels provide operating skills and practical problem solving the keep the company working

Management Levels (cont.)

Frontline managers (operational managers) lower-level managers who supervise the operational activities of the organization directly involved with nonmanagement employees increasingly being called on to be innovative and entrepreneurial titles include supervisor or sales manager Working leaders with broad responsibilities in small firms and large firms that have adapted to the times, managers have strategic, tactical, and operational responsibilities

Transformation of Frontline Management Roles and Tasks

Changing roles From operational implementers to aggressive entrepreneurs

Primary value

Key activities

Driving business performance by focusing on productivity, innovation and growth within frontline units Creating and pursuing new opportunities for the business

Attracting and developing resources and competencies

Managing continuous performance improvement within the unit

Transformation of Middle-Level Management Roles and Tasks

Changing roles From administrative controllers to supportive coaches

Primary value

Providing the support and coordination to bring large company advantage to the independent frontline units Developing individuals and supporting their activities Linking dispersed knowledge, skills, and best practices across units Managing the tension between short-term performance and long-term ambition

Key activities

Transformation of Top-Level Management Roles and Tasks

Changing roles
Primary value From resource allocators to institutional leaders Creating and embedding a sense of direction, commitment and challenge to people throughout the organization Challenging embedded assumptions while establishing a stretching opportunity horizon and and performance standards Institutionalizing a set of norms and values to support cooperation and trust

Key activities

Creating an overarching corporate purpose and ambition

Management Skills
Skill - specific ability that results from knowledge, information, and aptitude Technical skill ability to perform a specialized task that involves a certain method or process managers at higher levels rely less on technical skills Conceptual and decision skills ability to identify and resolve problems for the benefit of the organization assume greater importance as manager acquires more responsibility

Management Skills (cont.)

Interpersonal and communication skills
ability to lead, motivate, and communicate effectively with others
people skills

important throughout your career at every level of management

You And Your Career

Jobs are no longer as secure for managers as they used to be organizations still try to develop and retain good employees employee loyalty and commitment are still important Companies offering employability to workers tend to be more successful provide training and other learning experiences employees perform work with greater responsibility

Thank You