IPMA -The New Manager

1
IPMA -The New Manager
2
Learning Objectives

• Understand the relationship between management
  and the organization
• Appreciate the evolution of management thought
• Understand various management functions and roles

3
Learning Objectives

• Understand the role of the New Manager in light
  of various drivers for change
• Appreciate the associated competencies and styles
  required by The New Manager

4
Management The Organization
5
What is an Organization?

• a collection of interacting and interdependent
  individuals who work towards common goals and
  whose relationships are determined according to a
  certain structure
• (Duncan, 1981)

6
What is Management?

• a process which exists to get results by making
  the best use of the human, financial and material
  resources available to the organization and to
  individual managers
• (Armstrong, 1990)

7
Key Organizational Concepts
The Organization
Division of Labor
Span of Control
Organizational Chart
Configuration
Administrative Hierarchy
8
Division of Labor

• How activities within the organization are
  allocated into different jobs or tasks performed
  by different individuals

9
Division of Labor - Advantages

• Most Efficient Utilization of Labor
• Increased Standardization
• Uniformity of Output
• Reduction in Training Costs
• Heightened Expertise

10
Division of Labor - Disadvantages

• Routine Repetitive Tasks
• Low Job Satisfaction
• Low Motivation and Employee Satisfaction

11
Span of Control

• The amount of individuals who report either
  directly or indirectly to a manager
• Managers who have a small span of control are
  able to develop closer relationships with
  employees and greater control over daily
  operations

12
Optimal Span of Control

• The coordination requirements within the unit
• The type of information required by the unit
• The similarity of tasks within the unit
• The extent to which individuals require direct
  access to the supervisor
• Differences in members need for autonomy

Source Mintzberg, 1983
13
Configuration

• The shape of the organization reflecting the
  division of labor and the coordination of tasks

14
Administrative Hierarchy

• Reporting Relationships from the lowest level to
  the highest in the organization
• An administrative hierarchy is inversely related
  to the Span of Control
• organizations with a large span of control have a
  small amount of managers in the hierarchy
• organizations with a small span of control have a
  large administrative hierarchy

15
The Organizational Chart

• A representation detailing all individuals,
  positions, reporting relationships, and formal
  lines of communication within the organization

16
The Organizational Chart

• An organizational chart illustrates
• Division of Work
• Managers Subordinates
• Type of Work
• Business Functions
• Levels of Management

17
Dimensions of Organizational Structure

• Specialization
• How Tasks and Roles are Allocated
• Standardization
• How an organization adopts procedures
• Formalization
• The degree to which rules and procedures are
  documented

18
Dimensions of Organizational Structure

• Centralization
• The degree to which authority and decision making
  are located at the top of the organization
• Configuration
• The shape of the organizations role structure
• Traditionalism
• The way procedures are understood or the way we
  do things around here

19
Four Underlying Dimensions
Structuring of Activities
Concentration of Authority
Line Control of the Workforce
Supportive Component
Source Pugh et al., 1969
20
Structuring of Activities

• The extent to which there are defined regulation
  of employee behavior
• Processes supported
• Specialization
• Formalization
• Standardization

21
Concentration of Authority

• The extent by which authority is located
  centrally either at the top of the organization
  or at a headquarters

22
Line Control of the Workforce

• The extent by which control of the work is under
  the control of line management rather than
  through other interpersonal and detached
  procedures

23
Supportive Component

• The comparative size of the administrative and
  other personnel outside that of the core workflow
  personnel

24
Evolution of Management Thought
25
Evolution of Management Thought
Organizational Behavior
1970s
Human Relations
Hawthorne Studies
1940s
Classical Organization Theory
Scientific Management
1900s
26
Scientific Management

• Associated with the pioneering work of Fredrick
  Taylor
• Emphasizes the productivity of the individual
  worker
• The search for the most appropriate and
  standardized method of performing a task

27
Scientific Management - Key Features

• Introduction of standardized procedures including
  task completion times
• Introduction of financial incentives to motivate
  staff
• Ensure full control of employees by supervisors
  and managers

28
Scientific Management - Key Features

• Scientific or systematic compilation of
  information regarding the work tasks to be
  performed
• Breakdown of tasks into smallest unit
• Task simplification where appropriate

29
Scientific Management - Key Features

• Introduction of time and motion studies to obtain
  the one best way of working
• Link pay-to-performance
• Removal of employees discretion or control over
  their own activities
• Planning
• Organizing
• Controlling

30
Job Simplification

• Mechanical Pacing
• Automated assembly lines to monitor and
  effectively deliver products
• Part Product Concentration
• Product broken down into parts and line staff
  allocated to produce only parts of the overall
  product
• Repetitive Work Processes
• Replication of tasks by employees

31
Job Simplification

• Limited Social Interaction
• Employees are not encouraged to interact
• Low Skill Requirements
• Minimal training required as a result of the
  decomposition of the task into constituent parts
  and divided amongst staff
• Pre-set Tools Techniques
• Precise allocation of tools and techniques to the
  accomplishment of the task

32
Scientific Management - Advantages

• Highlighted the need for concentration on
  employee performance and production
• Introduction of standardized procedures
• Job Specialization and Mass Production

33
Scientific Management - Disadvantages

• Dehumanization of the workplace environment
• Potential for the negative exploitation of
  employees
• Morale and performance can decrease over time

34
Classical Organizational Theory

• Basic Assumptions
• Employees will try to satisfy one need at work -
  economic
• No conflict exists between employee and
  organizational objectives
• Employees will act rationally to maximize rewards

35
Classical Organizational Theory

• Authority is rational and legal
• Power is based on position and not on the
  individual in the position
• Positions are hierarchically organized
• The organization is governed by rules and
  regulations

36
Fayols 14 Principles of Management

1. Division of Work Specialization
2. Authority to Match Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest to the
   General Interest
7. Fair Remuneration in Relation to Effort

37
Fayols 14 Principles of Management

1. Centralization
2. Hierarchical Principle of Line Authority
3. Principle of Order
4. Equity
5. Stability of Tenure of Personnel
6. Importance of Initiative
7. Importance of Esprit De Corps

38
Classical Organizational Theory

• Fayols Principles of the Organization
• Plan Ahead
• Document Policies
• Keep Accurate Records
• Labor Specialization
• Match Responsibility with Authority
• Keep Managers Span of Control to Approximately
  Six Individuals

39
Classical Organizational Theory

• Max Weber focused on a System of Management that
  Stressed Impersonal and Rational Behavior
• Bureaucratic Management
• Division of Labor
• Rules Procedures
• Hierarchy of Authority
• Employee Selection Promotion
• Impersonality

40
The Hawthorne Studies

• Pioneering Studies by Elton Mayo
• Studies set out to study the effects of
  illumination and ventilation on worker fatigue
  and the effectiveness of piecework incentives
  systems
• Results were more reaching and informative on the
  social

41
The Hawthorne Studies - Results

• In the lighting studies results demonstrated that
  performance increased when employees were singled
  out for special attention
• In the incentive studies results clearly showed
  that social pressures caused the employees to
  vary their work practices

42
The Hawthorne Studies - Results

• Performance increased when employees felt more
  important and possessed greater freedom form
  supervisory control
• Moral and Motivation increased as a direct result
  of these conditions

43
The Hawthorne Studies

• Mayo also observed the existence of an Informal
  Organization
• This Informal Organization with its rules and
  interactions also facilitated increased
  performance over and above that set by management
  objectives and direction

44
Human Relations

• Recognition of the important role that the social
  environment plays in shaping human behavior
• Key Characteristics
• Social needs can motivate employees more than
  financial
• Satisfied employees are more productive than
  unsatisfied employees

45
Human Relations - Assumptions

• Organizations are social systems and not just
  technical economic systems
• Organizational Behavior is shaped by the social
  context
• Job satisfaction facilitates increased job
  productivity

46
Human Relations - Assumptions

• The informal organization is a major factor in
  determining the attitudes and performance of
  individual workers
• Management requires effective interpersonal
  skills and not just technical skills
• Individuals are motivated by many needs and not
  just economic needs

47
Human Relations - Assumptions

• An individuals needs may not directly match that
  of the organization
• Individuals do not always behave rationally or
  logically

48
Human Relations

• McGregors Theory X and Y styles of management
  based on how managers perceive employees and how
  employees approach and value work

49
McGregors Theory X

• The average human being has an inherent dislike
  of work and will avoid it if he can
• Because of the human characteristic dislike of
  work, most people must be coerced, controlled,
  directed, threatened with punishment, to get them
  to put forth adequate effort towards the
  achievement of organizational objectives

50
McGregors Theory X

• The average human being prefers to be directed,
  wishes to avoid responsibility, has relatively
  little ambition, wants security above all

51
Theory X Managers

• Closely supervise and control employees
• Break tasks down into simple, repetitive and
  easily learnt operations
• Establish detailed work routines and procedures
• Enforce routines and procedures firmly but fairly

52
McGregors Theory Y

• The expenditure of physical and mental effort is
  as natural as rest or play
• External control and the threat of punishment are
  not the only means of bringing about effort
  towards organizational objectives
• People will exercise self-direction and
  self-control in the service of objectives to
  which they are committed

53
McGregors Theory Y

• Commitment to objectives is a function of the
  rewards associated with their achievement
• The human being learns, under proper conditions,
  not only to accept but to seek responsibility
• The capacity to exercise a relatively high degree
  of imagination, ingenuity and creatively in the
  organizational problems is widely, not narrowly,
  distributed in the population

54
McGregors Theory Y

• Under the condition of modern industrial life,
  the intellectual potentialities of the average
  human being are only partially utilized

55
Theory Y Managers

• Role to make each employee feel important and
  useful
• Keep employees informed and listen to their
  concerns
• Allow employees exercise some self-direction and
  control over routine tasks

56
Organizational Behavior

• Multidisciplinary Approach
• Psychology - role of personality
• Sociology - impact of organizational structure
• Anthropology - influence of culture
• Political Science - use of power

57
Organizational Behavior
Systems Perspective
Contingency Perspective
58
The Systems Perspective

• The organization can be described in terms of an
  open system which is continually dependent and
  influenced by its environment
• Inputs are transformed into outputs within this
  environment

59
The Systems Perspective
Feedback
Inputs
Outputs
Transformation
Environment
60
Contingency Perspective

• The Universal Perspective argues that whenever a
  manager experiences a problem that a single, or
  universal, approach exists that will facilitate
  the desired outcome
• The Contingency Perspective argues that whenever
  a manager experiences a problem that the approach
  to be adopted is dependent, or contingent, on
  other variables

61
Management Functions Roles
62
Traditional Functions of Management
Planning
Organizing
Controlling
Leading
63
Planning

• Deciding in advance what is going to be done in
  the organization
• Determining goals and ways to achieve these goals
• Not a static but an ongoing process

64
Planning - Core Skills

• Forecasting
• Scheduling
• Budgeting
• Setting Objectives

65
Organizing

• Effectively using resources to meet the
  organizational goals
• Design of systems and structures to achieve this
  end

66
Organizing - Core Skills

• Hiring
• Coordinating
• Delegating
• Resource Allocation

67
Directing

• Motivating and assisting employees to achieve the
  organizational objectives
• Using motivating

68
Directing - Core Skills

• Hiring
• Coordination
• Delegation
• Resource Allocation

69
Controlling

• Ensuring that work activities are performed in
  line with the organizations stated goals
• Monitoring the actual performance and taking the
  necessary steps required to improve performance
• Keeping the organization on a prescribed course
  of action

70
Controlling

• Coordinating
• Coaching/Mentoring
• Resource Allocation
• Conflict Management/Problem Solving
• Objective Setting

71
Managerial Roles
Interpersonal
Informational
Decisional
72
Interpersonal

• Managing relationships between employees and the
  organization
• Types of Roles
• Leader
• Figurehead
• Manager
• Liaison

73
Informational

• Gathering and disseminating information to
  employees
• Types of Roles
• Analyst
• Spokesperson
• Monitor

74
Decisional

• Processing information and reaching decisions in
  the best interest of the organization
• Types of Roles
• Conflict Manager
• Resource Allocation
• Negotiator

75
The New Manager
76
Drivers for Change

• Economic, Social Political
• Globalization
• Technological Advancements

77
Economic, Social Political

• Market Economy
• Worker Mobility
• Diverse Workforce

78
Globalization

• Search for Excellence
• Focus on Quality
• Supply Chain Management
• Customer Expectations Satisfaction

79
Technological Advancements

• Product Life Cycles
• Informational Flows
• Data Management
• Communication Technologies

80
20th Vs 21st Century Organizations

• 21st Century
• Non-bureaucratic
• Fewer levels
• Expectation that senior management leads lower
  level employees manage
• Policy and procedures with minimal
  interdependencies

• 20th Century
• Bureaucratic
• Multi-levelled
• Organised with expectation that senior management
  will manage
• Policies and procedures that create many
  interdependencies

81
An Extended Perspective

• Traditional Role
• Planning
• Organizing
• Leading
• Controlling

• Extended Role
• Strategist
• Organizational Ambassador
• Change Leader
• Team Player
• Problem Solver

82
Boyatzis Management Competencies
Goal Action Management Cluster
The Leadership Cluster
The Human Resource Management Cluster
The Focus On Others Cluster
The Directing Others Cluster
Source Boyatzis, 1982
83
Goal Action Management Cluster

• Concern with Impact
• Concerned about status and reputation
• Concerned with symbols of power to have an impact
  on others
• Diagnostic Use of Concepts
• Recognizing patterns from an assortment of
  information
• Bringing a concept to a situation and being able
  to interpret events through that concept

84
Goal Action Management Cluster

• Efficiency Orientation
• Being concerned to do something better or more
  efficiently
• Pro-activity
• Disposed towards to taking action to achieve an
  objective

85
The Leadership Cluster

• Conceptualization
• Development of a concept that describes a pattern
  within a set of facts
• The concept emerges from the information
• Self Confidence
• Decisiveness and presence
• Aware that you are not just doing something but
  that you are doing it well

86
The Leadership Cluster

• Use of Oral Presentations
• Effective presentation skills regardless of
  audience size

87
The Human Resource Management Cluster

• Use of Socialized Power
• Using influence to build alliances
• Managing Group Process
• Helping others to work effectively together

88
The Focus On Others Cluster

• Perceptual Objectivity
• Being objective
• Avoiding bias and prejudice
• Self Control
• Being in control of personal objectives in the
  pursuit and achievement of organizational
  objectives

89
The Focus On Others Cluster

• Stamina and Adaptability
• Being able to work long hours
• Flexibility to adapt to environmental changes

90
The Directing Subordinates Cluster

• Threshold competencies for developing others

91
Autocratic Versus Participative Leaders

• Autocratic or Directive Style of Problem Solving
• Autocratic with Group Information Input
• Autocratic with Groups Review and Feedback
• Individual Consultative Style
• Group Decision Style
• Participative Style

92
Autocratic or Directive Style

• The leader defines the problem
• Diagnoses the problem
• Generates, evaluates and chooses solution from
  alternatives

93
Autocratic with Group Information Input

• The leader defines the problem
• Although diagnoses may occur the leader obtains
  information from the group
• The leader then generates, evaluates and chooses
  solution from alternatives using the group as an
  information source

94
Autocratic with Groups Review Feedback

• The leader defines the problem, diagnoses,
  generates and chooses solution from alternatives
• The leader then presents the solution plan to the
  group for feedback and review

95
Individual Consultative Style

• The leader defines the problem and shares the
  definition with a work group
• The leader asks the group for ideas on problems
  and alternative solutions
• The leader then generates, evaluates and chooses
  a solution from the alternatives offered

96
Group Consultative Style

• As the last category except the leader defines
  the problem and shares the definition with the
  whole group
• The leader asks the group for ideas on problems
  and alternative solutions
• The leader then generates, evaluates and chooses
  a solution from the alternatives offered

97
Group Decision Style

• As the last category except the leader defines
  the problem and shares the definition with the
  whole group
• The group develop ideas on problems and
  alternative solutions
• The group as a whole then generates, evaluates
  and chooses a solution from the alternatives
  offered

98
Participative Style

• The group as a whole proceed through the entire
  decision making process
• Problem Definition
• Diagnosis of Problem
• Generation and Evaluation of Alternatives
• Choice of Solution

99
High Performance Competencies
Cognitive
Motivation
Directional
Achievement
100
High Performance Competencies

• Cognitive Competencies
• Information Search
• Concept Formulation
• Conceptual Flexibility
• Motivation Competencies
• Interpersonal Search
• Managing Interaction
• Developmental Orientation

101
High Performance Competencies

• Directional Competencies
• Self Confidence
• Presentation
• Impact
• Achievement Competencies
• Proactive Orientation
• Achievement Orientation

102
Summary

• The organization is a collection of interacting
  and interdependent individuals who work towards
  common goals and whose relationships are
  determined according to a certain structure
• Management is a process which exists to get
  results by making the best use of the human,
  financial and material resources available to the
  organization and to individual managers

103
Summary

• Current thinking has been shaped by the evolution
  of management thought
• Scientific Management
• Classical Organizational Theory
• The Hawthorne Studies
• Human Relations
• Organizational Behavior

104
Summary

• There are four traditional management functions
• Planning
• Organizing
• Leading
• Controlling
• There are three crucial roles that the manager
  must excel at
• Interpersonal
• Informational
• Decisional

105
Summary

• Given the impact of change on industry the role
  of the new manager has expanded
• Strategist
• Organizational Ambassador
• Change Leader
• Team Player
• Problem Solver
• In addition to these new skills the New Manager
  should also possess many other associated
  competencies and styles