Lecture 1 - The Management Process and the Changing Paradigm of Management - January 2012

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    1

    MAN1006: Introduction to Management(Groups~BBA1)

    Lecture 1 The Management Process and the Changing

    Paradigm of Management

    Lecturer: Oswy GayleMonday January 16 Saturday January 21, 2012

    University of Technology, JamaicaSchool of Business Administration

    Meet the Lecturer

    Name: Prince Oswy Gayle Office Location:CEEC Building~ Computing and Engineering Extension Centre

    (2nd Floor)

    Email: [email protected]: 970-5527 Extension: 2527

    Students Consultancy Times:Tuesdays (12:30 1:30 p.m.)Saturdays (11:30 12:30 p.m.)

    Module Introduction

    Introduction to Management

    This module is designed to expose students to the;

    principles of management

    role of managers in organizations

    new concepts and principles in management andillustrate how management skills are used inreal life organizations

    situational analyses to identify appropriate

    actions to help achieve organizational goals andobjectives.

    Organisation of the Module

    3 Hours per week 1 Hour Lecture and 2 Hours Tutorial

    Lets Go Through the Module Outline

    What about the Module Assessment?

    Module Resources

    ASSESSMENT

    PROCEDURES

    Coursework:

    1. Article Review 5%

    2. Module Test #1 20%

    3. Module Test #2 20%4. Class Participation 5%

    Total Coursework 50%

    Final Examination 50%

    Total 100%

    Expectations of students in

    this module Attend Classes

    Be on time for the lectures

    Participate in lectures if you come to these

    sessions you must participate

    No sleeping in this class

    No using of cell phones during lecture

    I find it offensive if you constantly walk in

    and out of the class please limit the

    frequency with which you must interrupt the

    class.

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    What if I want to fail this module? Do not attend the lectures and tutorials

    Do not hand-in the article review

    Do not participate in the classes

    Do not attend the tests

    Show up for the exam a day later

    Simply do not care about anything

    Have a party every day

    Do not waste your time studying

    How do I study this module and

    do well? Know your lecturer and tutor; at least their names

    Attend the lectures and tutorials

    Hand-in the article review (5%)

    Participate in the class (5%)

    Do the required reading (read widely)

    Attend the tests

    Show up for the tests and final examination early

    Enjoy the process

    Form an excellent group and study together

    Lecture 1

    The Management Process

    and the Changing

    Paradigm of Management

    1. Explain the Changing Dynamics of Organizations

    2. Explain the importance of Management

    3. What is management? What do managers do?

    4. Define Efficiency and Effectiveness

    5. Explain the Functions of Management

    6. Define the ten (10) Roles of managers

    7. Managerial Competencies needed to deal with

    todays turbulent environment

    8. Describe the Management Types9. A look at Management and the New Workplace

    L E A R N I N G O B J E C T I V E S

    Why Study Management?

    Management is a universalconcept. We refer to this

    phenomenon as the universalityof management.

    Are you happy when you request a cheque and get itin 5 minutes (At JMMB).

    Are you happy when you request a credit card onlineand you get a call 8:30 a.m. the next day about it(FCIB).

    Why Study Management? Contd

    Are you irritated when non of thecustomer service representatives seemsinterested to help you?

    Do you get annoyed when you have to wait inline for two hours for a simply issue that

    should not take more than 10 minutes?

    Are you concerned that you send in a jobapplication form to a company and you never get areply.

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    Why Study Management? Contd

    Theses are all examples of problems

    created by poor management

    Organizations that are wellmanaged develop a loyal customerbase, grow, and prosper

    Why Study Management? Contd

    We will be able to;

    recognize poor management and developaction plans to get it corrected

    recognize good management andencourage and reward it

    be in a better position to effect change inthe overall efficiency of any organization.

    Management is simply the most

    important field in life as we must manage

    everything

    Since management is universallyneeded in all organizations,

    We all have a vested interest in

    improving the way organizations aremanaged

    Management is simply the most

    important field in life as we must manage

    everything

    Since management is universallyneeded in all organizations,

    We all have a vested interest inimproving the way organizations aremanaged

    Context

    Management can be a simply process aswell as it can be complex depending onthe size of the company.

    It involves several process, functions,skills and roles in order to be effective andefficient in any project/activity/job orbusiness.

    Businesses all satisfy economic needs by

    offering goods and services to the publicat a premium

    Context

    The extent to which managers

    achieve results is dependent uponothers work performance so as toadapt to their environments; thisultimately determines their level ofsuccess in a changing world.

    The Changing Dynamics of Organizations

    Organizations of Yesterday

    The main issue here is that there are severalparadigm shifts taking place, which needsto be managed as it alters the landscape ofhow we do things, say things, interface witheach other and most importantly ourrelationships.

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    Pace of businesses continues toaccelerate and Change is a major

    source ofbusiness risk

    How are organizations changing?

    The Changing Dynamics of Organizations

    Todays Organizations

    Driving Forces1. Telecommunications

    2. Diversity of Workers

    3. Public consciousness

    4. Global marketplace

    5. Community of stakeholders

    6. The pace of knowledge

    Driving Forces1. Telecommunications

    2. Diversity of Workers

    3. Public consciousness

    4. Global marketplace

    5. Community of stakeholders

    6. The pace of knowledge

    Driving Forces (contd)Driving Forces (contd)1. Telecommunications is the transmission of

    information, over significant distances, for the

    purpose of communication

    2. Information Technology - the acquisition,

    processing, storage and dissemination of vocal,

    pictorial, textual and numerical information by a

    microelectronics-based combination of computing

    and telecommunications

    3. Ever-advancing Technology has shrunk the worldat the same time the digital divide continues

    Driving Forces (contd)Driving Forces (contd)

    1.1 LIME Goes Mobile TV in

    December 2010

    1.2 Cell Phones usage (Digicels 4G&

    plans for 5G, 6G)

    1.3 Flow on demand

    1.4 telecommunication has helped to

    share modern miro and macro

    economies, social

    1.5 3D

    Driving Forces (contd)Driving Forces (contd)

    2. Increasing diversity of workers hasbrought in a wide array of differing values,

    perspectives, and expectations among

    workers

    2.1 38% of Doctors in America are Indians

    2.2 12% of Scientists in America are Indians

    2.3 28% of IBM Employees are Indians

    2.3 More persons with disability are working

    Driving Forces (contd)Driving Forces (contd)2. Increasing diversity

    2.4 Women are becoming more dominant in

    the workplace (leadership as well)

    2.5 Gays, lesbians and older workers also

    represent critical workforce resources

    and potential markets for today's

    companies.

    2.6 More persons are entering universities

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    Driving Forces (contd)Driving Forces (contd)

    3. Public consciousness

    3.1 People have become much more sensitive and

    demanding that organizations be more socially

    responsible

    3.2 More and more NGOs (JFJ etc.)

    3.3 The last Jamaican Election, more young

    Jamaicans voted than any other time

    3.3 More people speaking out on issues that

    were not traditional spoken of

    Driving Forces (contd)Driving Forces (contd)4. Global Marketplace

    4.1 Companies are striving to remain competitive inthe face of increasingly tough global competition

    4.2 Some developing countries have joined the global

    marketplace, creating a wider arena for sales and

    services

    4.3 China, India, Brazil are now a force to be

    reckoned with

    Driving Forces (contd)Driving Forces (contd)4. Global Marketplace

    4.4 China is now second largest economy in

    the world. Japan has lost its second place.

    4.5 Globalization impacts the world in more ways

    4.6 So for example, a farmer in St. Elizabeth (JA)

    might be competing with a farmer in the USA &

    EU whether he/she knows it or not

    Driving Forces (contd)Driving Forces (contd)

    5. Community of Stakeholders

    5.1 Organizations are responsible to stockholders, andmust focus on building relationships with employees,

    customers, partners, and suppliers

    5.2 Gone are the days when customers lend money and

    have no say in how their monies are invested.

    5.3 Stakeholders are becoming more and more engaging in

    the running of organizations.

    5.4 The issues of polities, ethics and governance arebecoming increasingly important to businesses as

    stakeholders demand more in various forms

    6. The pace of knowledge

    6.1 Much of the worlds scientists that haveever lived are currently alive

    6.2 Knowledge is expanding knowledge

    6.3 The difference amongst some companiesis how much knowledge it has (intellectualcapital, knowledge of the market and knowledgemanagement)

    6.4 There is now greater need for the application ofmathematics, science, research and statistics in theway we do business

    Driving Forces (contd)Driving Forces (contd)

    2. Explain the nature and

    importance of Management

    L E A R N I N G O B J E C T I V E S

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    Nature of ManagementNature of Management

    It is largely about coping with diverse, far-

    reaching challenges and maintaining order

    (How do we manage in the following contexts?)

    Individually

    Locally

    Regionally - CSME/CARICOM EPA (Economic Partnership Agreement)

    IMF - JA Government passing two quarters of

    the IMF test. Not able to negotiate with its

    constituencies

    It requires a Shift in Mindsets to Navigate Turbulence

    Shift in Mindsets to Navigate

    Turbulence

    Shift in Mindsets to Navigate

    Turbulence

    Managers are asked to...

    Do more with less (e.g - JA Governmentcuts UTechs and UWIs Budget)

    Engage the whole employee

    See change rather than stability as

    natural

    Create vision and cultural values

    Encourage collaborative workplaces

    How do we make the difference?How do we make the difference?

    Requires integrating...

    Tried and true management skills

    +

    New approaches that emphasize

    Human touch

    Enhance flexibility

    Involve employees hearts,

    minds, and bodies

    Management In the News

    New Pepsi more popular than Pepsi

    Where is Management in

    all of this?

    Management In the News

    GM considering selling cars onlinevia eBay to cut costs

    Indian firms are losing productivitybecause office staff spend too long onsocial networking sites, a survey says.

    (BBC World Business, Jan 18, 2010)

    So what are we saying?So what are we saying?

    Successful organizations

    dont just happen...

    .they are

    managed to be that way!

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    Questions

    1. What is Management?2. Why is it so important?

    3. And what do managers

    do?

    What is Management?What is Management?

    1. The attainment oforganizational

    goals in an effective and efficientmanner through Four functions

    - planning,

    - organizing,

    - leading, and

    - controlling organizational resources.

    2. The process of tying the organization together so

    that it achieves its goals and objectives.

    What is Management? (contd)What is Management? (contd)

    3. Management is the process ofcreating anenvironment through which order,

    efficiency, and effectiveness are achieved

    through appropriate planning, leadership,

    organizing and controlling so as to

    accomplish organizational goals and

    respond to its changing environments.(Gayle, 2009)

    Where does Management happens?

    Every

    where

    Personal Life

    Churches, Associations,

    Entrepreneurs

    Small Organizations

    LargeOrganizations

    The Importance of Management ???-

    Organizational Performance

    Organization - social entity that is goal directedand deliberately structured

    Effectiveness - degree to which an organizationachieves a stated goal

    Efficiency - use of minimal resources (rawmaterials, money, and people) to produce the desiredvolume of output

    Performance organizations ability to attain itsgoals by using resources in an efficient and effectivemanner

    The Importance of Management ???-

    Organizational Performance

    It all about the

    bottom-line.

    Thus, the field of managementwill always be relevant

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    What Managers Do?What Managers Do?

    Managerial Activities

    Make decisions

    Allocate resources

    Direct activities of others toattain goals

    Managerial Activities

    Make decisions

    Allocate resources

    Direct activities of others toattain goals

    Managers (or administrators)

    Individuals who achieve goals through other people.

    The Functions of Management

    Planning

    Leading

    Resources

    Controlling Organizing

    Performance

    Human

    Financial

    Raw Materials

    Technological

    Information

    Attain goals

    Products

    Services

    Efficiency

    Effectiveness

    Use influence tomotivate employees

    Select goals andways to attain

    them

    Assign responsibilityfor task

    accomplishment

    Monitor activitiesand make

    corrections

    InputProcess

    Output

    Where Managers Work?Where Managers Work?

    Organization

    A consciously coordinated social unit,composed of two or more people, thatfunctions on a relatively continuousbasis to achieve a common goal or setof goals.

    Management FunctionsManagement Functions

    Planning

    A process that includes defining goals,establishing strategy, and developingplans to coordinate activities.

    Organizing

    Determining what tasks are to be done, whois to do them, how the tasks are to be

    grouped, who reports to whom, and wheredecisions are to be made.

    Management Functions (contd)Management Functions (contd)

    Leading

    A function that includes motivating employees,directing others, selecting the most effective

    communication channels, and resolvingconflicts.

    Controlling

    Monitoring activities to ensure they are beingaccomplished as planned and correcting anysignificant deviations.

    Mintzbergs Managerial RolesMintzbergs Managerial Roles

    Source:Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973by H. Mintzberg. Reprinted by permission of Pearson Education.

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    Mintzbergs Managerial Roles (contd)Mintzbergs Managerial Roles (contd) Mintzbergs Managerial Roles (contd)Mintzbergs Managerial Roles (contd)

    Management Skills

    Complex

    Multidimensional

    And Range of skills

    A Managers Job is

    Management SkillsManagement Skills

    1. Human skills

    The ability to work with, understand, andmotivate other people, both individually and ingroups.

    So we are talking about how you relate to people

    Motivating people

    Organization sometimes lose critical staff because

    front-line mangers mismanage the relationships

    Management SkillsManagement Skills

    2. Conceptual Skills

    - The mental ability to analyze and diagnosecomplex situations.

    - Cognitive ability to see the organization as a

    whole and the relationships among its parts

    How does one department fits with the other?

    What plans are to be put in place?

    Management SkillsManagement Skills

    3. Technical skills

    The ability to apply specialized knowledge orexpertise.

    The mastery of methods

    Able to apply statistics to solve problems

    Quantitative analysis

    acquiring, learning and understandingspecialized knowledge

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    Management Types - VerticalManagement Levels in the Organizational Hierarchy

    Exhibit 1.3, p. 13

    Managing in Small Businesses and

    Nonprofit Organizations

    Role Differences

    Source of Financial Resources

    Unconventional Bottomline

    Management and the New

    Workplace

    Characteristics Resources = Bits--information

    Work = Flexible, virtual

    Workers = Empowered employees, freeagents

    Forces on Organizations Technology = Digital, e-business

    Markets = Global, including internet

    Workforce = Diverse

    Values = Change, speed

    Events = Turbulent, more frequent crises

    ManagementCompetencies

    Leadership = Dispersed, empowering

    Focus = Connection to customers,employees

    Doing Work = By teams

    Relationships = Collaboration

    Design = Experimentation, learningorganization

    Management and the New

    Workplace

    Forces on organizations

    New Management Competencies

    Dispersed leadership

    Empowering others

    Collaborative relationships

    Team-building skills

    Learning organization

    Managing During Turbulent

    Times

    A manager should;

    Stay Calm Be Visible

    Put People Before Business

    Tell the Truth

    Know When to Get Back to Business

    The Jamaican

    Context

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    Management In Jamaica: Our

    Perspective

    We have come a far way in terms of

    management in Jamaica

    We are excellent in adopting the latest technology toapply to business

    Believe it or not, we are on par with most developedcountry in terms of basis telecommunicationtechnologies

    Management In Jamaica: Our

    Perspective

    Customer Service is poor in several instances

    Management (a manager) is seen as a status ratherthan a platform to make a change

    Our culture generally has low standards

    Generally Jamaican companies are growing but itdoes not translate into national development. Why?

    Government Bureaucracy impacts businessdevelopment

    Management In Jamaica: Our

    Perspective

    We do not understand our own systems

    No clarity on what we value; our policiessometimes are outdated and do not fit thecurrent environment

    In terns of planning and leading - average

    controlling and organizing ~ above-average

    Productivity - low

    Jamaicas Productivity Levels

    Jamaica Productivity Centre

    Jamaica Productivity Report 1972-2007 -Workers producing less nationwide

    output per worker, has declined, onaverage, by 1.3 per cent per annum between1972 and 2007

    This means the average worker in Jamaicahas been producing less, each year, over the

    period.

    Jamaicas Productivity Levels

    The New Jamaican Thrust ofEntrepreneurship

    A Hustler,an Entrepreneur, an Organization

    Jamaica has major challenges with its smallcompanies and entrepreneurs in managing theircompanies.

    Such as managing the money, the sales, marketing,branding etc.

    Rap up

    Management is a universal concept.We refer to this phenomenon as theuniversality of management.

    We study management so we can helprecognize poor management and developcorrect is and recognize good managementand encourage and reward it.

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    Rap up

    There are driving forces in and

    outside the organizations which areforcing it to manage moreeffectively

    Successful organizations dontjust happen... they are managedto be that way!

    Although Jamaica has come a far way

    in terms of management, we still havea far way to go with the following;

    Productivity levels overall

    Small business management

    Too many hustlers not consideringthemselves to be entrepreneurs

    increasing our standards

    Rap up

    There are four main functions ofmanagement

    Managers make decision and therefore

    need several skills to be able to dotheir roles at all levels of theorganizational hierarchy.

    As our environment changes, so too

    the nature of Management whichultimately creates a New Workplace

    Rap up

    Have The Best Day Ever.