Management Skills

4. Management Key Concepts
• Organization: People working together and
coordinating their actions to achieve specific
goals.
• Goal: A desired future condition that the
organization seeks to achieve.
• Management: The process of using
organizational resources to achieve the
organization’s goals by...
– Planning, Organizing, Leading, and Controlling

5. Four Functions of Management
Planning
Choose Goals
Organizing
Working together
Leading
Coordinate
Controlling
Monitor & measure

6. Four Functions of Management

7. Management Levels
• Organizations often have 3 levels of managers:
First-line Managers: responsible for day-to-day
operation. They supervise the people performing the
activities required to make the good or service.
Middle Managers: Supervise first-line managers. They
are also responsible to find the best way to use
departmental resources to achieve goals.
Top Managers: Responsible for the performance of all
departments and have cross-departmental
responsibility. They establish organizational goals
and monitor middle managers.

8. Top
Managers
Middle
Managers
First-line Managers
Non-management
Three Levels of Management

9. Managerial Roles
• Described as:
– A role is a set of specific tasks a person
performs because of the position they hold.
• There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional

10. Managerial Skills
There are three skill sets that managers need to
perform effectively:
1. Conceptual skills: the ability to analyze and
diagnose a situation and find the cause and effect.
2. Human skills: the ability to understand, alter, lead,
and control people’s behavior.
3. Technical skills: the job-specific knowledge
required to perform a task. Common examples
include marketing, accounting, and manufacturing.
All three skills are enhanced through formal training, reading, and
practice.

11. Skill Type Needed by Manager Level

13. Forces in the Organizational Environment
Distributors
FirmSuppliers
Competitors
Customers
General
Environment
Economic
Forces
Global
Forces
Sociocultural
Forces
Demographic
Forces
Technological
Forces
Political &
Legal Forces

14. The Industry Life Cycle
Birth Growth Shakeout Maturity Decline

15. Managerial Decision Making
• Decision making: the process by which managers
respond to opportunities and threats by analyzing
options, and making decisions about goals and
courses of action.
• Decisions in response to opportunities: managers
respond to ways to improve organizational
performance.
• Decisions in response to threats: occurs when
managers are impacted by adverse events to the
organization.

16. Types of Decision Making
• Programmed Decisions: routine, almost
automatic process.
– Managers have made decision many times before.
– There are rules or guidelines to follow.
– Example: Deciding to reorder office supplies.
• Non-programmed Decisions: unusual
situations that have not been often
addressed.
– No rules to follow since the decision is new.
– These decisions are made based on information,
and a manger’s intuition, and judgment.
– Example: Should the firm invest in a new
technology?

17. The Classical Model
• Classical model of decision making:
a prescriptive model that tells how the decision
should be made.
– Assumes managers have access to all the information
needed to reach a decision.
– Managers can then make the optimum decision by easily ranking
their own preferences among alternatives.
• Unfortunately, mangers often do not have all (or even
most) required information.

18. Decision Making Steps
Recognize need for a decision
Frame the problem
Generate & assess alternatives
Choose among alternatives
Implement chosen alternative
Learn from feedback

20. The Planning Process
Planning is the process used by managers
to identify and select goals and courses of
action for the organization.
•The organizational plan that results from the
planning process details the goals to be
attained.
•The pattern of decisions managers take to
reach these goals is the organization’s
strategy.

21. Planning Levels
• Corporate-level: decisions by top managers.
– Considers on which businesses or markets to be in.
– Provides a framework for all other planning.
• Business-level: details divisional long-term goals and
structure.
– Identifies how this business meets corporate goals.
– Shows how the business will compete in market.
• Functional-level: actions taken by managers in
departments of manufacturing, marketing, etc.
– These plans state exactly how business-level strategies are
accomplished.

22. Planning at General Electric
Corporate
Level
CEO
Corporate Office
Business
Level
GE
Aircraft
GE
Lighting
GE
Motors
GE
Plastics
NBC
Functional
Level
Manufacturing
Marketing
Accounting
R & D

23. Characteristics of Plans
• Time horizon: refers to how far in the future
the plan applies.
– Long-term plans are usually 5 years or more.
– Intermediate-term plans are 1 to 5 years.
• Corporate and business level plans specify long and
intermediate term.
– Short-term plans are less than 1 year.
• Functional plans focus on short to intermediate term.

24. Who Plans?
• Corporate level planning is done by top
managers.
– Also approve business and functional level plans.
– Top managers should seek input on corporate level
issues from all management levels.
• Business and functional planning is done
by divisional and functional managers.
– Both management levels should also seek
information from other levels.
– Responsibility for specific planning may lie at a
given level, but all managers should be involved.

25. Designing Organizational Structure
• Organizing: the process by which managers
establish working relationships among
employees to achieve goals.
– Organizational Structure: formal system of task &
reporting relationships showing how workers use
resources.
– Organizational design: managers make specific
choices resulting in a given organizational structure.
• Successful organizational design depends on
the organization’s unique situation.

27. Organizational Control
• Managers must monitor & evaluate:
– Are we efficiently converting inputs into outputs?
• Must accurately measure units of inputs and outputs.
– Is service quality improving?
• Are we competitive with other firms?
– Are employees responsive to customers?
• customer service is increasingly important.
– Are our managers innovative in outlook?
• Does the control system encourage risk-taking?

28. Control Systems
Formal, target-setting, monitoring, evaluation and
feedback systems to provide managers with
information to determine if strategy and structure are
working effectively and efficiently.
• A good control system should:
– be flexible so managers can respond as needed.
– provide accurate information about the
organization.
– provide information in a timely manner.

29. Control Types
– Feed forward: use in the input stage of the process.
– Managers anticipate problems before they arise.
– Managers can give rigorous specifications to
suppliers to avoid quality
– Concurrent: gives immediate feedback on how inputs are
converted into outputs.
– Allows managers to correct problems as they
arise.
– Managers can see that a machine is becoming out
of alignment and fix it.
– Feedback: provides after the fact information managers
can use in the future.
– Customer reaction to products are used to take
corrective action in the future.

30. The Control Process
1. Establish standards, goals, or targets against which
performance is to be evaluated.
• Standards must be consistent with strategy, for a low cost
strategy, standards should focus closely on cost.
– Managers at each level need to set their own
standards.
2. Measure actual performance: managers can
measure outputs resulting from worker behavior or they
can measure the behavior themselves.
• The more non-routine the task, the harder to measure.
– Managers then measure the behavior (come to work
on time) not the output.

31. The Control Process
3. Compare actual performance against chosen
standards.
• Managers must decide if performance actually
deviates.
– Often, several problems combine creating low
performance.
4. Evaluate result and take corrective action.
– Perhaps the standards have been set too high.
– Workers may need additional training, or
equipment.

32. Components of a HRM System
Recruitment
& Selection
Labor
Relations
Pay &
Rewards
Performance
Appraisal &
Feedback
Training &
Development

33. Types of Training
– Classroom Instruction: workers acquire
skills in classroom.
– On-the-Job Training: learning occurs in
the work setting as worker does the job.
– Apprenticeships: worker contracts with a
master worker to learn a skill.

34. Career Stages
Preparation
for Work
Organization
Entry
Early Mid-
career
Mid-
career
Late
Career

35. Stress & Performance
High
Low
LevelofPerformance
Low HighPositive Stress Negative Stress
Level of Stress

36. Motivation
• Defined as the psychological forces within a
person that determine:
1) direction of behavior in an organization;
2) the effort or how hard people work;
3) the persistence displayed in meeting goals.
– Intrinsic Motivation: behavior performed for its
own sake.
• Motivation comes from performing the work.
– Extrinsic Motivation: behavior performed to
acquire rewards.
• Motivation source is the consequence of an action.

38. Needs

39. Conflict and Organizational Performance
Level of ConflictLowLow High
Low
High
LevelofOrganizational
Performance
B
A C

40. Management Styles

42. Manager Vs. Leader

44. Manager Vs. Leader

45. Manager Vs. Leader

46. Manager Vs. Leader