Management and the Environment
Management: the art of getting things done through people in organizations
Managers can also give organizations a sense of purpose and direction.
They can transform organizations; they can create new ways of producing and distributing goods and
services; and they can change how the world works through their actions
The Functions of Management
a French industrialist named Henri Fayol stated , a modified version of Fayol’s list is still widely used. This
list identifies four management functions: planning, organiz- ing, controlling, and leading (Fayol’s fifth
function, coordinating, is now treated as an aspect of organizing,
PLANNING AND STRATEGIZING
Planning is a formal process whereby managers choose goals, identify actions to attain those goals,
allocate responsibility for implementing actions to specific individuals or units, measure the success of
actions by comparing actual results against the goals, and revise plans accordingly.
takes place at multiple levels in an organization
Planning is used by senior managers to develop overall strategies for an organization (a strategy is an
action that managers take to attain the goals of an organization).
Managers plan expenditures every year in a budgeting process.
Managers draw up plans for building new factories, opening new offices, implementing new information
systems, improving inven- tory control systems, introducing new products, launching new marketing
campaigns, rolling out employee benefits programs, dealing with crises, and so on
Strategizing is the process of thinking through on a continual basis what strategies an organization
should pursue to attain its goals. Strategizing involves being aware of and analyzing what competitors
are doing; thinking about how changes in the external environment, such as changes in technology or
government regulations, impact the organi- zation; weighing the pros and cons of alternative strategies;
anticipating how competitors might respond to these strategies; and choosing a course of action.
Organizing refers to the process of deciding who within an organization will perform what tasks, where
decisions will be made, who reports to whom, and how different parts of the organization will
coordinate their activities to pursue a common goal
organizing typically involves dividing the enterprise into subunits based on func- tional tasks—such as
procurement, R&D, production, marketing, sales, customer service, human resources, accounting, and
finance—and deciding how much decision-making authority to give each subunit. CONTROLLING
Controlling is the process of monitoring performance against goals, intervening when goals are not met,
and taking corrective action.
An important aspect of controlling is creating incentives that align the interests of indi- vidual employees
with those of the organization, helping to ensure that everyone is pulling in the same direction. An
incentive is a factor, monetary or nonmonetary, that motivates individuals to pursue a particular course
LEADING AND DEVELOPING EMPLOYEES
Leading is the process of motivating, influencing, and directing others in the organiza- tion to work
productively in pursuit of organization goals.
Developing employees refers to the task of hiring, training, mentoring, and rewarding employees in an
organiza- tion, including other managers.
Drive strategic thinking (strategizing) deep within the organization while articulating their own
vision for the organization.
• Have a plan for their organization and push others to develop plans.
• Structure the organization proactively to implement their chosen strategy.
• Exercise control with a deft hand, never seeming too overbearing or demanding, while at the
same time never taking their eyes off the ball.
• Put the right kinds of incentives in place.
• Get the best out of people by persuading them that a task is worthy of their effort.
• Build a high-quality team of other managers and employees through which they can work to get
Types of Managers
General Managers are responsible for the overall performance of an organization (Corporate level
general-managers) or one of its major self-contained subunits or divisions (business level general
Functional managers lead a particular function or a subunit within a function. They are responsible for a
task, activity, or operation
manage employees who
are themselves not
GENERAL MANAGERS the chief executive officer (CEO)
CEO exercises control over divisions, monitoring their performance and deciding what incentives to give
divisional heads. Finally, the CEO helps develop the human capital of the enterprise.
The CEO of a corporation also manages relationships with the people who own the company—its
Chief financial officer (CFO)
Chief operating officer (COO)
chief technology officer (CTO)
BUSINESS-LEVEL GENERAL MANAGERS
Business-level general managers lead their divisions—motivating, influencing, and directing their
subordinates—and are responsible for divisional performance. Business-level general managers
translate the overall strategic vision for the corporation into concrete strategies and plans for their
Business-level general managers organize operations within their division, deciding how best to divide
tasks into functions and departments and how to coordinate those subunits so that strategy can be
successfully implemented. Business-level general managers also control activities within their divisions,
monitoring performance against goals, intervening to take corrective action when necessary, and
developing human capital
functional managers, who are responsible for specific business functions that constitute a company or
one of its divisions. Thus a functional manager’s sphere of responsibility is generally confined to one
organizational activity (purchasing, marketing, production, or the like), whereas general managers
oversee the operation of the entire company or a self-contained division.
Frontline managers manage employees who are themselves not managers
They must have skills to deal with employees and customers alike
They are critical to maintaining the performance of an organization
They lead their teams and units
They strategize about the best way to do things in their units
Organize tasks within their team, monitor performances of suordinates, develop skills of subordinates.
Becoming a Manager
From Specialist to Manager
Specialize in a task leads to management Where they will find themselves in charge of other employees who do the same task
People who cannot get things done by other people will not become managers
From frontline managers, they can become general managers
Those successful will be promoted to managerial roles whatever their background may be
Mastering the Job
The transition from a lower level of management to a higher level of management:
-they had to learn how to influence subordinates, peers and their own bosses to get things done
-had to establish trust and credibility being influencing them
-trust and credibility is earned through interpersonal interactions on the job
-agenda setting for teams and network building within the organization
-only by networking they can get things done , they have to e network builders and good at
Managerial roles are specific behaviours associated with the task of management. Managers adopt
these roles to accomplish the basic functions of management just dis- cussed—planning and
strategizing, organizing, controlling, and leading and developing employees.
One of the earliest and most enduring descriptions of managerial roles comes from Henry Mintzberg,
roles that involve interacting with other people inside and outside the organization
Managers at all levels are figureheads. They greet visitors, represent the company at community events,
serve as spokespeople, and function as emissaries for the organization Managers also take on a leadership role to get things done within organizations. Managers behave as
leaders to influence, motivate, and direct others within organizations and to strategize, plan, organize,
control, and develop. A central task of leaders is to give their organizations a sense of direction and
purpose. They do this by identifying and articulating strategic visions for the organizations (by
strategizing) and then by motivating others to work toward this vision.