PPM Notes
PPM Notes
PPM Notes
of other people rather than on their own work. The nature of management is to motivate and coordinate others to cope with diverse and far-reaching challenges. Managers set up the systems and conditions that help other people perform well. Managers are required to do more with less, to engage whole employees, to see change rather than stability as natural, and to inspire vision and cultural values that allow people to create a truly collaborative and productive workplace. The Definition of Management: Every day, managers solve difficult problems, turn organizations around, and achieve astonishing performances. To be successful, every organization needs good managers. Managers set goals, organize activities, motivate and communicate, measure performance, and develop people. These five manager activities apply not only to top executives, but also to the managers who are at middle and lower levels. The activities fall into four core management functions: planning (setting goals and deciding activities), organizing (organizing activities and people), leading (motivating, communicating with, and developing people), and controlling (establishing targets and measuring performance). Depending on their job situation, managers perform numerous and varied tasks, but they all can be categorized under these four primary functions. Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. The definition holds two important ideas: (1) the four functions of planning, organizing, leading and controlling, and (2) the attainment of organizational goals in an effective and efficient manner.
The Four Management Functions: Planning (Select goals and ways to attain them) Planning means identifying goals for future organizational performance and deciding on the tasks and use of resources needed to attain them. In other words, it defines where the organization wants to be in the future and how to get there. Organizing (Assign responsibility for task accomplishment) Organizing typically follows planning and reflects how the organization tries to accomplish the plan. Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. Leading (Use influence to motivate employees) Leading is the use of influence to motivate employees to achieve organizational goals. Leading means creating a shared culture and values, communicating goals to people throughout the organization, and infusing employees with the desire to perform at a high level. Controlling (Monitor activities and make corrections) Controlling means monitoring employees activities, determining whether the organization is on target toward its goals, and making corrections as necessary. Managers must ensure that the organization is moving toward its goals. Recent trend is to place less emphasis on top-down control and more emphasis on training employees to monitor and correct themselves. However, the ultimate responsibility for control still results with managers. To sum up management involves the following tasks: Planning and setting objectives Designing the organizational structure Organizing human resources and non-human resources Organizing activities to encourage efficiency and effectiveness in teamwork Developing an operating philosophy and strategy
Leading and coordinating resources Creating a conducive environment Ensuring satisfaction of customers, shareholders, suppliers and society Ensuring ethics in working and rendering services Ensuring an organizations survival within the social and environmental system by assessing social impact and Assessing performance vis--vis tasks. Significance of Management: 1. The need for effective utilization of available resources, which are getting scarcer every day, 2. Increasing competition among businesses 3. The increasing complexity of modern businesses, including globalization, and global trade. 4. The large scale and multinational character of organization and their dominance. 5. The changing market scenario from a sellers market to buyers market. 6. Growing customer awareness and demands for quality and value, 7. Changing technology for cost, efficiency and environment protection 8. Complexity of regulatory and control measures for protecting the interests of stakeholders and 9. Increasing social and environmental obligations and regulations. Organizational Performance The second part of definition of management is the attainment of organizational goals in an efficient and effective manner. Management is so important because organizations are so important. Organizations pervade our society, and managers are responsible for seeing that resources are used wisely to attain organizational goals. Organization is a social entity and goal directed and deliberately structured. Social entity means being made up of two or more people, goal directed means designed to achieve some outcome. Deliberately structured means that tasks are divided and responsibility for their performance is assigned to organization members.
The responsibility of a manager is to coordinate resources in an effective and efficient manner to accomplish the organizations goals. Organizational effectiveness is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do. Organizational effectiveness means providing a product or service that customers value. Organizational efficiency refers to the amount of resources used to achieve an organizational goal. It is based on how much raw material, money, and people are necessary for producing a given volume of output. Efficiency can be calculated as the amount of resources used to produce a product or service. Efficiency and effectiveness can both be high in the same organization. Managers continually need to look for ways to increase efficiency while also meeting the companys quality and customer satisfaction goals. All managers have to pay attention to costs, but severe cost cutting to improve efficiency can sometimes hurt organizational effectiveness. The ultimate responsibility of managers is to achieve high performance, which is the attainment of organizational goals by using resources in an efficient and effective manner. Management Skills The necessary skills for managing a department or an organization can be categorized in three: Conceptual, human, and technical. The application of these skills changes as managers move up in the organization. Although the degree of each skill necessary at different levels of an organization may vary, all managers must possess skills in each of these important areas to perform effectively. Conceptual Skills It is the cognitive ability to see the organization as a whole system and the relationships among its parts. Conceptual skill involves knowing wher e ones team fits into the total organization and how the organization fits into the industry, the community, and the broader business and social environment. It means the ability to think strategically-to take the broad, long-term view-and to identify, evaluate, and solve complex problems. Conceptual skills are needed by all managers but are especially important for managers at the top. Many of the responsibilities of top managers, such as decision making, resource allocation, and innovation, require a broad view.
To keep the company thriving, managers at the top need a strong understanding not only of the company but also of shifts in the industry and the larger environment. Human Skills It is the managers ability to work with and through other people and to work effectively as a group member. Human skill is demonstrated in the way a manger relates to other people, including the ability to motivate, facilitate, coordinate, lead, communicate, and resolve conflicts. Organizations frequently lose good people because of front-line bosses who fail to show respect and concern for employees. Human skills are increasingly important for managers at all levels. Technical Skills Technical skill is the understanding of and proficiency in the performance of specific tasks. Technical skill includes mastery of the methods, techniques, and equipment involved in specific functions such as engineering, manufacturing, or finance. It also includes specialized knowledge, analytical ability, and the competent use of tools and techniques to solve problems in that specific discipline. Technical skills are particularly important at lower organizational levels. Many managers get promoted to their first management jobs by having excellent technical skills. However, technical skills become less important than human and conceptual skills as managers move up the hierarchy.
A managers weaknesses become more apparent during stressful times of uncertainty, change or crisis. Especially in times of uncertainty and crisis,If managers do not communicate effectively, including listening to employees and customers and showing genuine care and concern, organizational performance and reputation suffer. The two major reasons managers fail are poor communication and poor interpersonal skills.
Top causes of manager failure 1. Ineffective communication skills and practices-81% 2. Poor work relationships/interpersonal skills-78%
3. Person-job mismatch-69% 4. Failure to clarify direction or performance expectations-64% 5. Failure to adapt and break old habits-57% 6. Breakdown of delegation and empowerment-56% 7. Lack of personal integrity and trustworthiness-52% 8. Inability to develop cooperation and teamwork-50% 9. Inability to lead/motivate others-47% 10.Poor planning practices/reactionary behavior-45%
Management Levels (Types) Managers use conceptual, human, and technical skills to perform the four management functions of planning, organizing, leading, and controlling in all organizations in different amounts and ways. But not all managers jobs are the same. Managers are responsible for different departments, work at different levels in the hierarchy, and meet different requirements for achieving high performance. Vertical differences: An important determinant of the managers job is hierarchical level. There are three levels in the hierarchy. The managers job differs across these three hierarchical levels and found that the primary focus changes at different levels. For first level managers, the main concern is facilitating individual employee performance. Middle managers though are concerned less with individual performance and more with linking groups of people, such as allocating resources, coordinating teams, or putting top management plans into action across the organization. For top-level managers, the primary focus is monitoring the external environment and determining the best strategy to be competitive. Top level managers They are at the top of the hierarchy and are responsible for the entire organization. They have titles such as president, chairperson, executive director, chief executive officer (CEO), and executive vice president. Top managers are responsible for
setting organizational goals, defining strategies for achieving them, monitoring and interpreting the external environment, and making decisions that affect the entire organization. They look to the long-term future and concern themselves with general environment al trends and the organizations overall success. Top managers are also responsible for communicating shared vision for the organization, shaping corporate culture, and nurturing an entrepreneurial spirit that can help the company innovate and keep pace with rapid change. Middle managers work at middle levels of the organization and are responsible for business units and major departments. Examples of middle managers are department head, division head, manager of quality control, and director of the research lab. Middle managers are responsible for implementing the overall strategies and policies defined by top managers. They are generally concerned with the near future rather than with long range planning. They create horizontal networks that can help the organization act quickly. They play a crucial role in driving innovation and enabling organizations to respond to rapid shifts in the environment. The success of the organization depends on the execution of strategies and the middle managers are the ones who make it work.
First line managers are directly responsible for the production of goods and services. They are the first or second level of management and have such titles as supervisor, line manger, section chief, and office manager. They are responsible for teams and non-management employees. Their primary concern is the application of rules and procedures to achieve efficient production, provide technical assistance, and motivate subordinates. The time horizon at this level is short, with the emphasis on accomplishing day-to-day goals. The job of first line managers also involve motivating and guiding young, often inexperienced workers, providing assistance as needed, and ensuring adherence to company policies. Horizontal differences Functional managers are responsible for departments that perform a single functional task and have employees with similar training and skills. Functional departments include advertising, sales, finance, human resources, manufacturing, and accounting. Line managers are responsible for the manufacturing and
marketing departments that make or sell the product or service. Staff mangers are in charge of departments such as finance and human resources that support line departments. General Managers are responsible for several departments that perform different functions. A general manger is responsible for a self-contained division.
Becoming a New Manager: Organizations often promote the star performers-those who demonstrate individual expertise in their area of responsibility and have an ability to work well with others-both to reward the individual and to build a new talent into the managerial ranks. But making the shift from individual contributor to manager is often tricky. One key to success is to recognize that becoming a manager involves more than learning a new set of skills. It is a profound transformation in the way people think of themselves, called personal identity. The individual performer is a specialist and a doer. His or her mind is conditioned to think in terms of performing specific tasks and activities as expertly as possible. The manager, on the other hand, has to be a generalist and learn to coordinate a broad range of activities. Whereas the individual performer strongly identifies with his or her specific tasks, the manager has to identify with the broader organization and industry. The individual performer gets things done mostly through his or her own efforts, and develops the habit of relying on self rather than others. The manger, though, get things done through other people, one of the most common mistakes new managers make is wanting to do all the work themselves rather than delegating to others and developing others abilities. Another problem for many new managers is that they expect to have greater freedom to do what they think is best for the organization. Being a successful manager means thinking in terms of building teams and networks, becoming a motivator and organizer within a highly interdependent system of people and work.
From Individual Identity-----------------------------------------To Manager Identity Specialist, performs specific Tasks Gets things done through Own efforts An individual actor Works relatively Independently -Generalist, coordinates diverse tasks
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Managerial Roles Approach: One of the newer approaches to management theory is the managerial roles approach, popularized by Professor Henry Mintzberg of McGill University. A role is a set of expectations for a managers behavior. Each role represents activities that managers undertake to ultimately accomplish the functions of planning, organizing, leading, and controlling. The ten managerial roles identified by him have been placed under three categories: They are: I. Interpersonal Roles human skills. 1. The figurehead role (performing ceremonial and social duties as the organizations representative such as greeting visitors, signing legal documents) 2. The leader role-direct and motivate subordinates, train, counsel, and communicate with subordinates. 3. The liaison role (particularly with outsiders)-Maintain information links inside and outside organization, use e-mail, phone calls, meetings. Pertain to relationships with others and are related to the
II. Informational Roles: Describe the activities used to maintain and develop an information network. General Managers spend about 75% of their time communicating with other people. 1. The recipient role (seek and receive information about the operation of an enterprise) 2. The disseminator role (passing information to subordinates) 3. The spokesperson role (transmitting information to those outside the organization through speeches, reports, memos.) III. Decision Roles: Pertain to those events about which the manager must make a choice and take action. These roles often require conceptual as well as human skills. 1. The entrepreneurial role-involves the initiation of change. Constantly thinking about the future and how to get there. 2. The disturbance-handler role-involves resolving conflicts among subordinates or between the managers department and other departments. 3. The resource-allocator role-pertains to decisions about how to assign people, time, equipment, money, and other resources to attain desired outcomes. 4. The negotiator role (dealing with various persons and groups of persons)involves formal negotiations and bargaining to attain outcomes for the managers unit of responsibility. The manager meets and formally negotiates with others-a supplier about a late delivery, the controller about the need for additional budget resources, or the union about a worker grievance.
Managing in Small Businesses and Not For Profit Organizations Small businesses are growing in importance, but the environment for small business today is highly complicated. They have difficulty of developing managerial dexterity to survive when conditions turn chaotic. Managers in small companies required to perform role as that of spokesperson because they must promote the small, growing company to the outside world. The entrepreneur role is also critical in small businesses because managers have to be innovative and help their organization s develop new ideas to remain competitive. Not for profit organizations also require excellent management. The functions of planning, organizing, leading, and controlling apply to nonprofits and managers in not for profit organizations use similar skills and perform similar activities. The primary difference is that managers in businesses direct their activities toward earning money for the company, whereas managers in nonprofits direct their efforts toward generating some kind of social impact. Financial resources for nonprofit organizations typically come from government appropriations, grants, and donations rather than from the sale of products or services to customers. In businesses, managers focus on improving the organizations products and services to increase sales revenues. In nonprofits, however, services are typically provided to nonpaying client, and a major problem for many organizations is securing a steady stream of funds to continue operating. Nonprofit managers, committed to serving clients with limited resources, must focus on keeping organizational costs as low as possible. Donors generally want their money to go directly to helping clients rather than for overhead costs. If nonprofit managers cant demonstrate a highly efficient use of resources, they might have a hard time securing additional donations or government appropriations. Managers of nonprofit organizations struggle with the question of what constitutes results and effectiveness because the organizations do not have a conventional bottom line. It is easy to measure dollars and cents, but the metrics of success in nonprofits are much more ambiguous. Managers have to measure intangibles such as improve public health, make a difference in the lives of the disenfranchised, or increase appreciation for the arts. This intangible nature also makes it more
difficult to gauge the performance of employees and managers. An added complication is that managers often depend on volunteers and donors who cannot be supervised and controlled in the same way a business manager deals with employees. Managers in non-profit organizations to place more emphasis on the roles of spokesperson (to sell the organization to donors and the public), leader (to build a mission-driven community of employees and volunteers), and resource allocator (to distribute government resources or grant funds that are often assigned topdown) Managers in all organizations-large corporations, small businesses, and nonprofit organizations-carefully integrate and adjust the management functions and roles to meet challenges within their own circumstances and keep their organizations healthy. Innovative Management for the New Workplace: Rapid environmental shifts are causing fundamental transformation that have a dramatic impact on the managers job. Turbulent Forces Dramatic advances in technology, globalization, shifting social values, changes in the workforce, and other environmental shifts have created a challenging environment for organizations. The most pervasive change affecting organizations and management is technology. The internet and electronic communication have transformed the way business is done and the way managers perform their jobs. Many organizations use digital technology to tie together employees and partners located worldwide. With new technology, its easy for people to do their jobs from home or other locations outside company walls. In addition, many companies are shifting more and more chunks of what were once considered core functions to outside organizations via outsourcing, which requires coordination across organizations.
New Workplace Characteristics The old workplace is characterized by routine, specialized tasks, and standardized control procedures. Employees typically perform their jobs in one specific company facility. Individuals concentrate on doing their own specific tasks, and managers are cautious about sharing knowledge and information across boundaries. The organization is coordinated and controlled through the vertical hierarchy, with decision-making authority residing with upper-level managers. In the new workplace, by contrast, work is free flowing and flexible. Structures are flatter and lower level employees are empowered to make decisions based on widespread information and guided by the organizations mission and values. Knowledge is widely shared, and people throughout the company keep in touch with a broad range of colleagues via advanced technology. The valued worker is one who learns quickly, shares knowledge, and is comfortable with risk, change, and ambiguity. People expect to work on a variety of projects and jobs throughout their careers rather than staying in one field or with one company. In the new workplace, work is often virtual, with managers having to supervise and coordinate people who never actually come to work in the traditional sense. Flexible hours, telecommuting, and virtual teams are increasingly popular ways of working that require new skills from managers. Teams may include outside contractors, suppliers, customers, competitors, and interim managers. Interim managers, or contingent mangers, are managers who are not affiliated with a specific organization but work on a project-by-project basis or temporarily provide expertise to organizations in a specific area. This approach enables a company to benefit from specialist skills without making a long-term commitment, and it provides flexibility for managers who like the challenge, variety, and learning that comes from working in a wide range of organizations. According to one estimate the market for contingent managers will grow 90% over the next decade. New Management Competencies In the face of these transitions, managers rethink their approach to organizing, directing, and motivating employees. Instead of management -by-keeping-tabs, managers employ an empowering leadership style. When people are working at scattered locations, managers cant continually monitor behavior.
Success in the new workplace depends on collaboration across functions and hierarchical levels as well as with customers and other companies. Experimentation and learning are key values, and managers encourage people to share information and knowledge. The shift to a new way of managing is not easy for traditional managers who are accustomed to being in charge, making all the decisions, and knowing where their subordinates are and what they are doing at every moment. Even many new managers have a hard time with todays flexible work environment.