The changing world of management

Chapter 1 The changing world of management Introduction to management The field of management today is undergoing a revolution that asks managers to do more with less, to engage with employees, to see change rather than count on stability and to inspire vision and cultural values that allow people to create a collaborative and productive workplace.Innovation is central to the solution of some of the problems facing managers.Australia has an interesting history of product innovation that includes the stump-jump plough, the bionic ear, the anti-influenza drug Relenza and Professor Ian Frazer’s HPV vaccine against cervical cancer. To gain or keep a competitive edge, managers also need to recognise that innovation in management systems, production process, corporate values and other aspects of the organisation is a measure of their ability to keep pace with a fast-moving global economy, and it is this innovation that will keep companies growing, changing and sustainable.Learning objectives

After studying this chapter, students should be able to:

• understand the personal challenges involved in becoming a new manager in an organisation in today’s world Making the shift from being just a worker to managing other people is personally challenging both for new and experienced managers. Leading others, building networks and leading innovation can be highly rewarding and enjoyable, but controlling and directing staff, managing time pressures and tackling a heavy administrative load can be less so.The transformation from being a proficient ‘doer’ who works relatively independently to coordinating the ‘right’ things being done by motivated, well- trained others can be challenging. The new manager must build new networks and consider his or her role in the context of the broader organisation and industry. Working in this highly interdependent system means many new managers come to see themselves in a new light as their own personal resources are challenged by these tasks and responsibilities.

• describe the four management functions and the type of management activity associated with each NOTE: For Complete File, Download link at the end of this File 1 / 3

2 Fundamentals of Management: Instructor’s Manual

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The four management functions are: planning, organising, leading and

controlling.

• Planning involves defining goals for future organisational performance

and deciding on the tasks and use of resources needed to attain them.The management activity associated with planning is selecting goals and finding the ways to attain them.

• Organising typically follows planning and reflects how the organisation

will attempt to accomplish its plans. Organising is concerned with assigning tasks, grouping tasks into departments and allocating resources to departments. The management activity associated with organising is assigning responsibility for task accomplishment.

• Leading involves the use of influence to motivate employees to achieve

the organisation’s goals. The management activity associated with leading is motivating employees.

• Controlling means monitoring employees’ activities, keeping the

organisation on track towards its goals and making corrections as needed. The management activity associated with controlling is monitoring activities and making corrections.• explain the difference between efficiency and effectiveness and their importance for organisational performance, including in terms of innovation outcomes Organisational performance reflects the organisation’s ability to attain its goals by using resources in an efficient and effective manner. Organisational efficiency refers to the amount of resources used to achieve organisational goals. It is about the organisation using minimal raw materials, money and people to produce its desired volume of output (‘doing things right’). Organisational effectiveness is the degree to which the organisation achieves its stated goals/objectives. It means the organisation succeeds in accomplishing what it tries to do (‘doing the right things’).However, ‘doing the right thing’ and ‘doing it right’ are no longer enough; organisations must ensure their own future by being innovative and by focusing on investing in the future in addition to controlling costs and processes.• describe conceptual, human and technical skills, and their relevance for managers and employees – Conceptual skill is the mental ability to see the organisation as a whole and the relationship among its parts. Conceptual skill is the manager’s thinking and planning ability. Conceptual skills are needed by all managers, but are especially important for top managers.– Human skill is the manager’s ability to work with, and through, other people. Human skill is how a manager relates to other people and includes the abilities to motivate, facilitate, coordinate, lead, communicate and resolve conflict. 2 / 3

Chapter 1: The changing world of management 3

Copyright © 2015 Cengage Learning Australia Pty Limited – Technical skill is the understanding of, and proficiency in, the performance of specific tasks such as engineering, manufacturing or finance. Technical skills are most important at lower organisational levels.The major difference between non-managers and managers is the shift from reliance on technical skills to focus on human and conceptual skills.• describe management types and the horizontal and vertical differences between them Managers’ jobs can vary in terms of their level in the organisational hierarchy

(vertical differences):

– Top managers are at the top of the organisational hierarchy and are responsible for setting organisational goals, defining strategies, monitoring and interpreting the external environment and making decisions that affect the entire organisation.– Middle managers work at the middle levels of the organisation and are responsible for implementing strategies and policies defined by top management in business units and major departments.– First-line managers are the first or second level of management and are directly responsible for the production of goods and services.Managers’ jobs can also vary in terms of the number of different functional areas

for which they are responsible (horizontal differences):

– Functional managers are responsible for employees with a single functional task such as production, distribution or finance. All employees have similar training and skills.– General managers are responsible for a self-contained division, such as a department store, and for all the functional departments within that division.• discuss the innovative management competencies needed to deal with today’s turbulent environment, including issues such as diversity, globalisation and rapid change Globalisation, diversity and rapid change affect both the nature of managerial work and the paths to career advancement. Organisations are learning to value change rather than stability. Human skills are becoming increasingly important for all managers. Today’s managers also need to recognise the importance of staying connected to customers and employees, rather than focusing single- mindedly on profits. Leadership needs to be dispersed throughout organisations, with managers sharing rather than hoarding power and knowledge. Team- building skills are also crucial. Managerial success today essentially depends on the strength and quality of relationships.In the new way of thinking about management, the primary responsibility of management is to create learning capabilities throughout the organisation.Many companies are reinventing themselves towards the learning organisation.Everyone in the organisation participates in identifying and solving problems,

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