Chapter 1: Organizations and Management - Introductory Case Study PDF

CHAPTER 1 ORGANIZATIONS AND MANAGEMENT An Introduction  INTRODUCTORY CASE R.E. CONSTRUCTION: IT’S NOW or NEVER  When Engr. Romeo Estabillo finished his Civil Engineering course at Mapua Institute of Technology, he took the board examination and passed it in 1981....

CHAPTER 1 ORGANIZATIONS AND MANAGEMENT An Introduction  INTRODUCTORY CASE R.E. CONSTRUCTION: IT’S NOW or NEVER  When Engr. Romeo Estabillo finished his Civil Engineering course at Mapua Institute of Technology, he took the board examination and passed it in 1981. Wanting to start independently, he went back to his hometown (Santiago City) to organize his own construction firm. In his first few years of operation, he accepted contracts for the construction of residential houses. As he gained experiences, his clients grew in number, and even the most prominent persons in Province of lsabela availed of his services. Continuation….  At the start, he hired two assistants to help him in his daily routine as a contractor. One of the two assistants, Mr. Silvino Santiago, was a third year civil engineering student who had stopped schooling due to financial difficulties. His task was as draftsman. His duty was to produce all documents relating to physical requirements of the various contracts entered into by boss. Among the documents are the building plan, specifications, bill of materials, building permit, etc. His additional duty was to assist Engineer Estabillo in supervising the foremen and workers at the various construction sites Continuation…  The second assistant, Mr. Romulo Mamaril, was assigned to coordinate purchasing, bookkeeping, and other related administrative activities.  At the third year of operations, Engr. Estabillo was already directing operations in his newly constructed office inside his residential compound. By this time, two more female employees were hired to assist in the various tasks performed in the office Continuation….  By 1994, Engr. Estabillo reviewed his company’s payroll. It indicated that he has six full-time civil engineers, two draftsmen, ten administrative personnel, one messenger, and one security guard. The foremen and laborers working at the various projects were contractual Continuation…  By June, 1996, Engr. Estabillo felt that business was continuously growing, so he will have to secure the services of four additional civil engineers on a full- time basis. As he was directly supervising all operations, he now feels that he may not be able to perform his functions effectively if he will push through with the plan. He wants to make a decision, but he is apprehensive. He thinks operations are now more complex. With this thought, he pondered on how he will go about solving the problem. Word for thought: “Smart people and smart companies create their own futures” Excerpted from Fast Magazines Organization/s:  collection of people working together to achieve a common Deliberate Distinct purpose. Based on Purpose Structure this definition, an organization has People the following characteristics:  Distinct purpose - goal or set of goals that it hopes to accomplish - Goal: to produce goods and/or render service  People - group of individuals working together with the same goal  Structure - policies, guidelines, regulations etc. that defines member’s work relationships.  TRADITIONAL ORGANIZATION VS. CONTEMPORARY ORGANIZATION Traditional Organization Contemporary Organization Stable Dynamic Inflexible Flexible Job-focused Skills-focused Work is defined by job positions Work is defined in terms of tasks to be Individual oriented done Permanent jobs Team oriented Command oriented Temporary jobs Managers always make decisions Involvement oriented Rule oriented Employees participate in decision Relatively homogeneous workforce making Workdays defined as 9 to 5 Customer oriented Hierarchical relationships Diverse workforce Work at organizational facility during Workdays have no time boundaries specific hours Lateral and networked relationships Work anywhere, anytime  WHAT IS MANAGEMENT? 19896342 Management: -Process of reaching organizational goals by working with and through people and other organizational resources. Hence, it has the following three main characteristics: 1. It is a process or series of continuing and related activities. 2. It involves and concentrates on reaching organizational goals 3. It reaches these goals by working with and through people and other organizational resources. As managers use their resources, they must strive to be both effective and efficient.   Managerial Effectiveness refers to management use of organizational resources in meeting organizational goals. It is often described as “doing the right things” – that is doing those work activities that will help organization reach its goals.   Managerial Efficiency is the degree to which organizational resources contribute to productivity. It refers to getting the most output from the least amount of inputs. Efficiency and Effectiveness in Management Efficiency Effectiveness (Means) (Ends) Resource Usage Goal Attainment Low Wastage High Attainment Management Strives for: Low Resource Waste (high efficiency) High Goal Attainment (high effectiveness  Effectiveness vs Efficiency Efficient (most resources Not reaching goals Reaching goals and contribute to and not wasting not wasting RESOURCE USE production) resources resources Inefficient (few resources Not reaching goals Reaching goals and contribute to and wasting resources wasting resources production0 Ineffective Effective (little progress toward (substantial progress organizational goals) toward organizational goals) G O A L AT TA I N M E N T  The Universality of Management  Management is universally needed in all organizations. All Sizes of Organizations Organizations that are well managed develop a loyal Small Large customer base, grow and prosper.  By studying management, one will be able to recognize poor management and work to get All organizational Areas All types of organizations it corrected. Manufacturing – Marketing Management is Human Resources – Accounting needed in  In addition, one will be able Information Systems – etc. Profit Non-Profit to recognize good management and encourage it, whether it is an organization with which one is simply interacting or whether All organizational Levels it is an organization in which one is employed. Bottom Top  WHO ARE MANAGERS? 19896342 Manager: -is someone who coordinates and oversees the work of other people so that organizational goals can be accomplished. Serving in positions with a wide variety of titles, they mobilize people and resources to accomplish the work of organizations and their subunits. A manager’s job is not about personal achievement – it’s about helping others do their work Types of Manager in a traditionally structured organization President CEO, COO Top VP’s Managers Divisionl/ Regional Middle Head/Plant Manager Supervisor Managers Team Leader Line Manager First-Line Managers Worker Operators Laborer Non-managerial Employees Upside-down view of organization CUSTOMERS & CLIENTS Ultimate beneficiaries of the organization’s effort serve OPERATING WORKERS Client/Customer is Do the work directly affecting customer/client satisfaction at the top of the organization which support signify that the company values TEAM LEADERS Helps the operating workers do their jobs them first and and solve problems foremost support TOP MANAGERS Keep org’n. mission & vision clear WHAT DO MANAGERS DO?  Describing what managers do isn’t easy or simple. Just as no two organizations are alike, no two managers’ jobs are alike. Despite this fact, management researchers have, after many years of study, developed three specific categorization schemes to describe what manager do: functions, roles and skills Management Functions Planning – defining goals, PLANNING establishing strategy and Setting performance objectives and deciding how developing plans to integrate to achieve them and coordinate activities. Organizing – determining what needs to be done, how it will be done and who is to do CONTROLLING ORGANIZING it. Measuring performance and taking corrective action to ensure results THE MANAGEMENT PROCESS Arranging tasks, people and other resources to accomplish the work Influencing – motivating, leading and any other actions involved in dealing with people. INFLUENCING Controlling – monitoring Inspiring people to work hard to achieve high performance activities to ensure that they are accomplished as planned Management Roles  refers to specific categories of managerial behavior. (think of the different roles you play – student, employee, student group member, sibling and so forth – and the different behaviors you’ve expected to play in these roles). Mintzberg’s Managerial Roles:  Interpersonal roles – involve people (subordinates and persons outside the organization) and other duties that are ceremonial and symbolic in nature  Informational roles – involve collecting, receiving and disseminating information  Decisional roles – entail making decisions or choices; involve using information to make decisions to solve problems or address opportunities  Mintzberg’s Managerial Roles Role Description Examples of Identifiable Activities Interpersonal Figurehead Symbolic head; obliged to perform a Greeting visitors; signing number of routine duties of a legal legal documents or social nature. Leader Responsible for the motivation of Performing virtually all subordinates; staffing, training, and activities that involve associated duties. subordinates Liaison Maintains self develop network of Acknowledging mail; doing outside contacts and informers who external board work; provide favors and information. performing other activities that involve outsiders Negotiator Responsible for representing the Participating in union organization at major negotiations contract negotiations  Continuation….. Informational Monitor Seeks and receives wide variety of Reading periodicals and internal and external information to reports; maintaining develop thorough understanding of personal contacts organization and environment. Disseminator Transmit information received from Holding informational outsiders or from subordinates to meetings; making phone members of the organization. calls to relay information Spokesperson Transmits information to outsiders Holding board meeting; on organization’s plans, policies, giving information to the actions, results, etc. media  Continuation…. Decisional Entrepreneur Searches organization and its Organizing strategy and environment for opportunities and review sessions to develop initiates “improvement projects” to new programs bring about changes. Disturbance Responsible for corrective action Organizing strategy and Handler when organization faces important, review sessions that involve unexpected disturbances. disturbances and crises Resource Responsible for the allocation of Scheduling; requesting Allocator organizational resources of all kinds authorization; performing – making or approving all significant any activity that involves organizational decisions budgeting and the programming of subordinates’ work Management Skills  A skill is an ability to translate knowledge into action that results in desired performance.  The most important managerial skills are those that allow managers to help other become more productive in their work. Robert L. Katz concluded that managers needed the following three essential skills: Continuation…  Technical Skill – job-specific knowledge and techniques needed to proficiently perform specific tasks; expertise that could initially be acquired through formal education and are further developed by training and job experience. These skills tend to be more important for lower level of managers because they typically are managing employees who are using tools and techniques to produce organization’s products or service the organization’s customers. Continuation….  Human Skill – ability to work well with other people individually and in a group. It emerges in the workplace as a spirit of trust, enthusiasm and genuine involvement in interpersonal relationships. These skills are consistently important across all levels of management because managers deal directly with people. Manager with good human skills are able to get the best out of their people. They know how to communicate, motivate, lead and inspire enthusiasm and trust. A manager with good human skills will have a high degree of self- awareness and a capacity to understand or empathize with the feelings of others Continuation….  Conceptual Skill – ability to think and formulate (conceptualize) about abstract and complex situations; it involves the ability to break down problems into smaller parts, to see and analyze the relations between parts and to recognize the implications of any one problem for other to solve complex problems. Using these skills managers must see the organization as a whole, understanding the relationships among various subunits and visualize how organization fits into broader environment. These skills are most important at the top management level.  AMA Managerial Skills Conceptual Skills Ability to use information to solve business problems Identification of opportunities for innovation Recognizing problem areas and implementing solutions Selecting critical information from masses of data Understanding of business uses of technology Understanding of organization’s business model  AMA Managerial Skills….. Communication Skills Ability to transform ideas into words and actions Credibility among colleagues, peers and subordinates Listening and asking questions Presentation skills; spoken format Presentation skills; written and/or graphic formats AMA Managerial Skills….. Effectiveness Skills Contributing to corporate mission/departmental objectives Customer focus Multi-tasking: working at multiple tasks in parallel Negotiating skills Project management Reviewing operations and implementing improvements Setting and maintaining performance standards internally and externally Setting priorities for attention and activity Time management AMA Managerial Skills….. Interpersonal Skills Coaching and mentoring skills Diversity skills: working with diverse people and cultures Networking within the organization Networking outside the organization Working in teams; cooperation and commitment Thought to ponder…  In today’s demanding and dynamic workplace, employees who want to be a valuable assets to an organization must be willing to constantly upgrade their skills and take on extra work outside their own specific job area. There’s no doubt that skills will continue be an important way of describing what a manager does..  HOW THE MANAGER’S JOB IS CHANGING? CHANGES IMPACT OF CHANGES  Managers have always had to Shifting organizational boundaries Changing Technology Virtual workplaces (Digitization) More mobile workforce deal with changes Flexible work arrangements Empowered employees taking place Risk management inside and outside Increased Security Threats Work life – personal life balance Restructured workplace Discrimination concerns their organization. Globalization concerns Employee assistance Increased emphasis on Redefined values Organizational and Rebuilding trust Managerial Ethics Increased accountability Customer service Increased Innovation Competitiveness Globalization Efficiency/productivity Current Trends and Issues  GLOBALIZATION - Working with people from different cultures - Coping with anti-capitalist backlash - Movement of jobs to countries with low cost labor  ETHICS AND SOCIAL RESPONSIBILITY - concerns for the environment, ethical and social responsibility issues, behavior of employees and the changing needs of an increasingly global economy Continuation….  WORKFORCE DIVERSITY - a worker force that is heterogeneous in terms of gender, race, ethnicity, age and other characteristics that reflect differences  EMPLOYMENT VALUES AND HUMAN RIGHTS - employees’ right to privacy, due process protection against job discrimination and freedom from sexual harassment Continuation…  INFORMATION AND TECHNOLOGICAL CHANGE - impact of emerging information and computer technology and the age of “knowledge worker”  CAREERS AND CAREER PORTFOLIOS - “portfolio of skills” that must be up-to-date and valuable to potential employers The Reality of Work  Another reason for studying management is the reality that for most of us, once we graduate from college and begin our career, one will either manage or be managed. For those who plan to be managers, an understanding of the management process forms the foundations upon which to build your management skills. On the other hand, for those of us who don’t see himself managing, one is likely to have to work with managers. Also, assuming that we will have to work for a living and recognizing that we are very likely to work in an organization, one probably have some managerial responsibilities even if one is not a manager.  Reward and Challenges of Being a Manager Rewards Challenges Create a work environment in which Do hard work organizational members can work to the May have duties that are more clerical than best of their ability managerial Have opportunities to think creatively and Have to deal with a variety of personalities use imagination Often have to make do with limited Help others find meaning and fulfillment in resources work Motivate workers in chaotic and uncertain Support, coach and nurture others situations Work with a variety of people Successfully blend knowledge, skills, Receive recognition and status in ambitions and experiences of a diverse organization and community work group Play a role in influencing organizational Success depends on others’ work outcomes performance. Receive appropriate compensation in form of salaries, bonuses and stock options Good managers are need by organizations  Managers often may have to deal with a variety of personalities and often have to make to with limited resources. It can be a challenge to motivate workers in the face of uncertainty and chaos. Managers may find it difficult to effectively blend the knowledge, skills, ambitions and experiences of a diverse work group.  Finally, as a manager, you’re not in full control of your destiny. Your success typically is dependent upon, others’ work performance. Becoming a Manager: Keep up with current business news. Read books about good and bad examples of managing. Remember that one of the things good managers do is to discover what is unique about each person and capitalize on it. Keep in mind the simple advice that “management is about people” from Peter Drucker. Work on your “soft” skills – work ethics, communications, information gathering and people skills. These are what employers cite as the most important factors for getting jobs. Observe managers and how they handle people and situations. Talk to actual managers about their experiences – good and bad. Get experience in managing by taking on leadership roles in student organizations Start thinking about whether you’d enjoy being a manager.