Management Organisational Behaviour 2 e Chapter 2 Managers
Management & Organisational Behaviour 2 e Chapter 2 Managers and Organisations ©The Mc. Graw-Hill Companies, 2005
Learning Outcomes By the end of this session students will be able to: • Understand why business firms attempt to balance profit motive with serving customer needs. • Understand how an organisation’s mission and superordinate goals guide employee behaviour toward desired quality outcomes • Identify the key elements that characterise organisations as dynamic open systems. 1 ©The Mc. Graw-Hill Companies, 2005
Learning Outcomes (cont. ) • Explain a manager’s interpersonal, informational and decisional roles. • Explain how managers can influence resources to transform their organisations. • Defend the premise that international competition, quality and ethical behaviour are the major issues of the early 21 st century. 2 ©The Mc. Graw-Hill Companies, 2005
The Business Environment • In understanding the business environment, a manager can become skilled in how to manage and organisation so that it can survive and grow in a complex and changing world. • This means that managers need to understand not only the internal environment but also the external environment, as will discussed below. • Managers need to understand both the micro and macro environment. • They need to understand how the subsystems of an organisation fits together. 3 ©The Mc. Graw-Hill Companies, 2005
Why Study Management and Organisational Behaviour? • Organisational Behaviour (OB) provides a road map. – OB defined: The behaviours of individuals and groups within an organisation, and the interaction between the organisation and environmental forces. 4 ©The Mc. Graw-Hill Companies, 2005
Management provides direction and organisation – Management defined: The practice of organising, directing, and developing people, technology, and financial resources to provide products and services through organisational systems. 5 ©The Mc. Graw-Hill Companies, 2005
Important Stakeholder Groups 6 ©The Mc. Graw-Hill Companies, 2005
Basic OB Model Independent variables Dependent variables Organisational Level Productivity Absenteeism Group Level Turnover Individual Level Job Satisfaction 7 ©The Mc. Graw-Hill Companies, 2005
Roots of Organisational Behaviour Psychology Social Psychology Individual Organisational Behaviour Groups Sociology Anthropolog y Political Science Organisation 8 ©The Mc. Graw-Hill Companies, 2005
What Purpose do Organisations Serve? • Organisations work to benefit multiple stakeholders. – Investors, customers, employees, suppliers, and others. 9 ©The Mc. Graw-Hill Companies, 2005
Purpose is focused by mission and goals – Mission: An organisation’s fundamental purpose that defines the nature of the business – usually fits on a postcard. 10 ©The Mc. Graw-Hill Companies, 2005
Organisations serve themselves by serving customers/clients “There is only one valid definition of business purpose: to create a customer. ” – Peter Drucker • Knowledge promotes socially responsible behaviour. 11 ©The Mc. Graw-Hill Companies, 2005
Model of an Open Systems Organisation Feedback INPUTS Materials People Money Information OUTPUTS TRANSFORMATION Technology Environment 12 Products/Services Profits/Losses Employee Actions Information ©The Mc. Graw-Hill Companies, 2005
Environmental Forces Impacting Business Firms Immediate Transacting Micro-Forces: • Suppliers • Customers • Competitors • Regulators 13 ©The Mc. Graw-Hill Companies, 2005
Key Environmental Forces that affect Business 14 ©The Mc. Graw-Hill Companies, 2005
Indirect Macro-Environmental Forces • Technology • The economy • Social-cultural behaviour • Geopolitics 15 ©The Mc. Graw-Hill Companies, 2005
PLANNING *Setting objectives *Deciding how to accomplish them CONTROLLING * Monitoring performance * Taking action to ensure desired results FOUR FUNCTIONS OF MANAGEMENT ORGANISING *Dividing up the work *Assigning people to jobs *Allocating resources LEADING *Creating vision *Inspiring commitment *Directing efforts toward a common purpose 16 ©The Mc. Graw-Hill Companies, 2005
Which View of Management is Correct? The Rational-Heroic View – managers deliberately: – Plan • Organise –Direct » Control 17 ©The Mc. Graw-Hill Companies, 2005
The Chaotic-Complex View – managerial life is: fragmented, managing amid chaos • Intense, brief, disconnected activities. –Unplanned episodes shifting from topic to topic. » Action driving out planning and reflection. 18 ©The Mc. Graw-Hill Companies, 2005
Mintzberg’s 10 Managerial Roles 19 ©The Mc. Graw-Hill Companies, 2005
Interpersonal • Figurehead • Leader • Liaison 20 ©The Mc. Graw-Hill Companies, 2005
Informational • Monitor • Disseminator • Spokesperson 21 ©The Mc. Graw-Hill Companies, 2005
Decision-making • • Entrepreneur Disturbance Handler Resource Allocator Negotiator 22 ©The Mc. Graw-Hill Companies, 2005
Managerial Roles Differ by Function and Level Organisational Level Top Level Managers Mid Level Managers Lower Level Managers Skill Emphasis • Conceptual: Ability to grasp the big picture and analyse abstract issues. • Human: Ability to demonstrate positive interpersonal skills. • Technical: Ability to demonstrate competence and expertise in a particular field. 23 ©The Mc. Graw-Hill Companies, 2005
Managers Change and Transform Organisational Systems • What are the internal resource options available to a manager seeking to improve the resource conversion process and add greater value to what customers receive? 24 ©The Mc. Graw-Hill Companies, 2005
Resource Elements for Transforming Organisations 25 ©The Mc. Graw-Hill Companies, 2005
– Tasks – the goals and jobs that people pursue. – Technology – the knowledge and methods for accomplishing work tasks. – People – the skills, knowledge, and number employed. – Organisation – the structural and informational network that links people and decisions. – Organisational culture – the beliefs, values, assumptions, and expectations people hold. 26 ©The Mc. Graw-Hill Companies, 2005
Managers Seek to Achieve Three Overarching Goals • Productivity • Satisfaction • Revitalisation and Organisational Renewal 27 ©The Mc. Graw-Hill Companies, 2005
Productivity The ratio of acceptable outputs to inputs consumed: • Efficiency – doing things right • Effectiveness – doing the right things 28 ©The Mc. Graw-Hill Companies, 2005
Satisfaction Overall positive feelings people have about the organisation, whether customer, employee, supplier, etc. 29 ©The Mc. Graw-Hill Companies, 2005
Revitalisation and Organisational Renewal Ability to take care of tomorrow’s problems and opportunities as well as today’s, by renewing strategies, resources, technology, products, and skills. 30 ©The Mc. Graw-Hill Companies, 2005
What are the Managerial Context Challenges in the Decade Ahead? • • Technology transformation Globalisation of business Managing diversity Promoting ethical behaviour 31 ©The Mc. Graw-Hill Companies, 2005
Technology transformation • The Internet revolution is changing all business processes, cutting costs and providing more information in real time. 32 ©The Mc. Graw-Hill Companies, 2005
Globalisation of Business • Markets are now defined by space not place, as technology transcends geography. 33 ©The Mc. Graw-Hill Companies, 2005
Managing Diversity • Minorities, women, and the disabled no longer need a boarding pass (affirmative action), they need an upgrade (the opportunity to reach their full potential). 34 ©The Mc. Graw-Hill Companies, 2005
Promoting Ethical Behaviour • To prevent wrongdoing, organisational culture and training needs to prepare employees to be fair and moral in their treatment of others. 35 ©The Mc. Graw-Hill Companies, 2005
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