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Chapter 1 Contd
Management Functions
• Henri Fayol, a French businessman, first
proposed in the early part of the twentieth
century that all managers perform five
functions:
• Planning, Organizing, Commanding,
Coordinating, and controlling.
• Today, these functions have been condensed
to four: planning, organizing, leading, and
controlling
• Planning: Goal setting, establishing strategies for
achieving the goals, develop plans to integrate and
coordinate activities.
• Organizing: Arranging and structuring the work to
achieve the organizational goals
• Leading: It deals with motivating employees,
resolve work group conflicts, influencing
employees, selecting the most effective
communication channel and deal with the
employee’s behavioral issues
• Controlling: Task and structural arrangements
are in place, training and motivating
employees and evaluating the performance.
• Monitoring activities by ensuring that the
organizational goals are met.
Managerial Roles
• The term managerial roles refers to specific actions or
behaviors expected of and exhibited by a manager.
• Mintzberg proposed that their activities included both
reflection (thinking) and action (doing)
• Interpersonal roles: This involves that people
(subordinates and persons outside the organization)
and other duties that are ceremonial and symbolic in
nature.
• The three interpersonal roles include figurehead,
leader, and liaison.
• The Figurehead: Performs ceremonial duties. Examples:
greeting visiting dignitaries, attending an employee’s
wedding, taking an important customer to lunch.
• The Leader: Responsibility for the work of subordinates,
motivating and encouraging employees, exercising their
formal authority.
• The Liaison: Making contacts outside the vertical
chain of command including peers in other companies
or departments, and government and trade organization
representatives.
• Informational roles: This involves collecting, receiving,
and disseminating information. The three informational
roles include monitor, disseminator, and spokesperson.
• The Monitor: scans the environment for new
information to collect.
• The Disseminator: Passing on privileged information
directly to subordinates.
• The Spokesperson: Sharing information with people
outside their organization. Examples: a speech to a
lobby or suggesting product modifications to suppliers.
• Decisional roles: This entails making decisions or
choices. The four decisional roles include
entrepreneur, disturbance handler, resource allocator
and negotiator.
• The Entrepreneur: Seeks to improve the unit by
initiating projects.
• The Disturbance Handler: Responds involuntarily to
pressures too severe to be ignored.
• Examples: a looming strike, a major customer gone
bankrupt, or a supplier reneging on a contract.
• The Resource Allocator: Decides who gets
what.
• The Negotiator: Committing organizational
resources in “real-time” with the broad
information available from their informational
roles.
Management Skills
• Robert L. Katz proposed that managers need three
critical skills in managing: technical, human, and
conceptual.
• Technical skills are the job- specific knowledge and
techniques needed to proficiently perform work tasks.
• These skills tend to be more important for first-line
managers because they typically are managing
employees who use tools and techniques to produce
the organization’s products or service the
organization’s customers.
• Human skills, which involve the ability to work
well with other people both individually and in
a group.
• All managers deal with people, these skills are
equally important to all levels of management.
Managers with good human skills get the best
out of their people.
• They know how to communicate, motivate,
lead, and inspire enthusiasm and trust.
• Conceptual skills are the skills managers use
to think and to conceptualize about abstract
and complex situations.
• This skill help managers see the organization
as a whole, understand the relationships
among various subunits, and visualize how the
organization fits into its broader environment.
These skills are most important to top
managers.
Scope of Management (Universality)
• Management is needed in all types and sizes of organizations,
at all organizational levels and in all organizational work areas,
and in all organizations, no matter where they’re located.
• Managers must plan, organize, lead, and control. However,
that’s not to say that management is done the same way.
• For example What a supervisor in a software applications
testing group at Microsoft does versus what the CEO of
Microsoft does is a matter of degree and emphasis, not of
function. Because both are managers, both will plan, organize,
lead, and control. How much and how they do so will differ,
however.
•
• Organizations that are well manage develop a
loyal customer base, grow, and prosper, even
during challenging times. Those that are
poorly managed find themselves losing
customers and revenues.
Rewards and Challenges of Being a
Manager
Rewards:
• Create a work environment in which organizational members can work
to the best of their ability
• Have opportunities to think creatively and use imagination
• Help others find meaning and fulfillment in work
• Support, coach, and nurture others
• Work with a variety of people
• Receive recognition and status in organization and community
• Play a role in influencing organizational outcomes

• Receive appropriate compensation in the form of salaries, bonuses, and
stock options
• Good managers are needed by organizations
Challenges
• Do hard work
• May have duties that are more clerical than
managerial
• Have to deal with a variety of personalities
• Often have to make do with limited resources
• Motivate workers in chaotic and uncertain
situations
• Blend knowledge, skills, ambitions and
experiences of a diverse work group
• Success depends on others’ work performance
Changes Facing Managers
1. Technological change (Digitization):
 Shifting organizational boundaries
 Virtual workplace
 Flexible work arrangements
 Empowered employees
 Work life-personal balance
2. Increased Emphasis on Organizational and
Managerial Ethics:
 Redefined values
 Rebuilding trust
 Increased accountability
3. Increased Competitiveness:
 Customer service
 Innovation
 Globalization
 Efficiency/Productivity
4. Changing security threats:
Risk management
Uncertainty over future energy sources/prices
Restructured workplace
Discrimination concerns
Globalization concerns
Employee assistance
Uncertainty over economic climate

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Chapter 1 Contd

• Play a role in influencing organizational outcomes

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