Week 6

What is
Management
& Planning?
Chapter 1 & 5
 RECAP of Week 5 Lesson
Historical Perspectives of Management Theories

1. Explain the origins of management

2. Explain the principles of scientific management
under Frederic Taylor
3. Explain principles of administrative management
under Henri Fayol
4. Explain principles of bureaucratic management
under Max Weber
5. Explain the humanistic approach (from human
relations to human resources management) to
management focusing on the Hawthorne Experiments
& briefly some motivational theories
6. Discuss what is meant by operations, information,
systems theory of management.
Summary: Evolution of Management
Theory

Hard / Scientific Management

Management Science
Science/
Rational

1900 1920 1950 1980 TIME

Soft /
People/
Normative Industrial Humanistic Organisational
Betterment Perpectives Culture
Management Theory:
Is it a science or art?
Bureaucratic
Management
1. Classical Management Perspective

Acronym: SAB
 2. Behavioural Approaches
Human Relations Management

In contrast, the human relations approach to

management focuses on the psychological and
social aspects of work.
People are valuable organizational resources
whose needs are important.
Efficiency alone is not enough to produce
organisational success. Success also depends on
treating workers well.
Hawthorne Studies: Work is a group activity and need for
recognition, security and sense of belonging are more important in
determining productivity than physical conditions of work.
 Recent Developments in
Management Theory

 Situational or Contingency theory

 Chaos theory
 Team Building theory
 Quality and performance excellence
• Total Quality Management (TQM)
• Spread of Japanese management techniques
emphasising organisational culture, teamwork and
consensus decision making from 1980s
 Learning Organisations
• Organisational Culture that emphasizes information,
teamwork, empowerment, participation and leadership
 Sustainable Development
• Stakeholder relationships
 Week 6 Topics
1. Review of Management Functions Planning, Organising, Leading, Controlling

2. Kinds/types of managers Top, middle, first-line, team leaders

3. Management skills Technical, human (people), conceptual,

motivational
4. Managerial roles (Mintzburg)  Figurehead, Leader, Liaison
 Monitor Disseminator, Spokesperson
 Entrepreneur, Disturbance handler,
Resource Allocator, Negotiator
5. Planning & SMART goals Specific, Measurable, Attainable, Realistic,
Timely
6. Different types of plans & uses Strategic, Tactical, Operational

2 Topics useful for Second Workbook Assignment :

• Types of management skills required
• Setting SMART goals in planning
 Activity 1

 Read the article given of Charlie Bell,

former Chief Executive Officer (CEO)
of the McDonald's Corporation from
April to November 2004 and answer
the questions given in the activity.

1960 - 2005
1. Functional Approach to Management

Source: Samson & Daft textbook

 Planning

Determining organisational goals and a

means for achieving them.
 Organising
Deciding:
• where decisions will be made
• who will do what jobs and tasks
• who will work for whom
 Leading

Inspiring
Leading
Motivating

Gail Kelly, CEO of Westpac (2008 – 2015), led one of Australia’s

largest banks. She inspired her employees by communicating
her vision clearly and by being a good role model.
 Planning & Control
Planning sets the direction
– Decide where you want to go and decide the best
way to go about it
Control ensures the results
– The systematic process through which managers
regulate organisational activities to make them
consistent with expectations established in plans,
targets and standards of performance

Controlling sees to it that the right things happen in the right way and at the right time!
 How & What Managers do
depends on the following:

2. Kinds/types of managers Top, middle, first-line, team leaders

3. Management skills Technical, human (people), conceptual,

motivational
4. Managerial roles (Mintzburg)  Figurehead, Leader, Liaison
 Monitor Disseminator, Spokesperson
 Entrepreneur, Disturbance handler,
Resource Allocator, Negotiator
5. Planning & SMART goals Specific, Measurable, Attainable, Realistic,
Timely
6. Different types of plans & uses Strategic, Tactical, Operational
2. Kinds/Types of Managers
Responsibilities of top managers

• Create a context for change.

• Develop commitment and ownership in employees.
• Create a positive organisational culture through
language and action.
• Monitor their business environments.
• Responsible for overall direction of the organization.

Top managers – responsible for performance of organization as a whole or

for one of its larger parts – pay attention to external environment, alert to
potential for long term problems and opportunities & develop ways of
dealing with them.
Responsibilities of middle managers

• Plan and allocate resources to meet objectives.

• Coordinate and link groups, departments and divisions
.
• Monitor and manage the performance of sub-units
and managers who report to them.
• Implement changes or strategies generated by top
managers.

Middle managers – in charge of relatively large

departments/divisions consisting of smaller work units (eg
clinic directors in hospitals, deans in universities, division
managers/factory managers and branch sales managers)
 Responsibilities of first-line managers

• Manage the performance of entry-level employees.

• Encourage, monitor and reward the performance of
workers.
• Teach entry-level employees how to do their jobs.
• Make detailed schedules and operating plans.

First-line managers: includes team leaders/supervisors – most early career

people start off first job in management as one of these although many do enter
as technical specialists and then advance to managerial responsibility
(sometimes also called department head, group leader and unit manager)
 Team Leaders

• Facilitate team performance

• Manage external relations
• Facilitate internal team relationship.

Relatively new kind of management job that developed as

companies shifted to self-managing teams, which, by
definition, have no formal supervisor.
 3. Management Skills
• Technical skills (used more by lower-level managers)
– Understanding of and proficiency in the performance of specific tasks
– Very important at career entry levels.
• Conceptual skills (used more by higher level managers)
- Cognitive ability to see the organisation as a whole and the relationship
among its parts
- Importance increases as managers rise through the management hierarchy.
• Human skills (used by all levels of managers)
– Ability to work with and through other people and to work effectively as a
group member.
– Each level recognizes the paramount importance of managing people
• Motivational skills (used by all levels of managers)
- Managers typically have a stronger motivation to manage than their
subordinates
- Managers at higher levels usually have stronger motivation to manage than
managers at lower levels
 Management Skills at Different Levels

All managers (including non-managers) must possess skills in each of these

important areas to perform effectively!
 Management Skills

Skills are more or less important at different levels of management

 Activity 2

• View the following clip on Minztburg’s Managerial

Roles and answer the following questions
• https://www.youtube.com/watch?v=NgkQYRqxKTs&list
=RDLVK7My9mZUUVs&start_radio=1
 4. Management Roles :
Mintzburg Studies

Roles of a manager = Expectations for a manager’s

behaviour

} Egs of leading
function

Egs of planning function

IID - Mnemonics

Source: Figure 1.5 From Management (2008), 3rd Asia-Pacific Edition,Campling, Poole, Wiesner, Ang, Chan, Tan & Schermerhorn,
p.21

Check out details on pp.9 to 11 of textbook

 Common mistakes managers make

• Insensitive to others ‘Arrivers’ : Managers who

• Cold, aloof, arrogant made it all the way to the top
• Betrayal of trust of their companies & much
• Overly ambitious more effective in their
• Specific performance problems interpersonal skills than the
with the business derailers.
• Over managing: unable to  ‘Derailers’ : Managers who
delegate or build a team
were successful early in their
• Inability to staff effectively
careers but were knocked off
• Inability to think strategically
the fast track at the middle
• Inability to adapt to boss with
different style to upper management levels
• Overdependence on advocate
or mentor
 Australia’s Managers –
Improving from a low base
Manager Strengths Manager Weaknesses
• Hardworking • Took short-term view
• Egalitarian • Lacked strategic view
• Open, genuine and direct • Lacked open-mindedness, showed
• Honest and ethical rigidity towards learning
• Innovative • Complacent
• Independent thinkers • Poor at teamwork
• Flexible, adaptable and • Inability at coping with differences
resourceful • Poor people skills
• Technically sound • Lacked self-confidence

Australian managers scored low on the following important managerial qualities:

ability to look well into the future; acceptance of responsibility, management skills,
entrepreneurial skills, leadership skills and cross-cultural skills
Source: Karpin, D. 1995, Enterprising Nation: Renewing Australia’s Managers to Meet the Challenges of
the Asia-Pacific Century, Industry Task Force, Canberra.
Management and the new workplace

Different emphasis on the competencies or skills set that employees ought to have
New Management Competencies

1.Customers and employees oriented (over profits):

flexible, adaptable to employee needs; empowering
employees to make decisions & solve problems.
2.Leadership, team-building : ability to build cohesive
teams, emphasise on diversity
3. Relationships : networking, collaboration and mutual
support to help think, learn and grow
4. Learning organisation: values experimentation, risk
taking, adapting to new tech, rewards divergent
thinking & sharing of knowledge
 Challenges for Managers

Managing the new workplace - innovative

response; new management competencies
Managing crises and unexpected events in
turbulent times
Sustainable development – ‘doing well by
doing good’
Managing in small businesses and not-for-profit
organisations
Planning
 ACTIVITY 3

• Have you watched any of the following

movies: Ocean’s Eleven, Ocean’s
Twelve or Ocean’s Thirteen?

• Watch this short clip of Ocean 11:

Ocean's Eleven - Planning the Heist (First
Act)

https://www.youtube.com/watch?v=HAp
BIQ5ZCLk
Any idea what the functions of
management are from the Ocean’s
movies….
 Why Plan?

• In life, outside events can influence the

success of our plan.
• How about in business?
Do we allow the current disruption (Covid
pandemic) to defer us from planning?
 Why Plan?
 Planning provides direction,
legitimacy, source of
motivation and commitment
Benefits of planning  It directs resource allocation,
guides targeted action,
provides rationale for
decisions, sets performance
standards

Intensified Creation of
Direction effort task Persistence
strategies
 How do Businesses Plan?

Planning timelines

Strategic 2 years 5 years

6 months
Plans

Tactical 2 years

30 days

Operational
6 months

0 1 2 3 4 5 6
Years
Levels/Types in the Planning Process
Planning from top to bottom

1. Strategic Planning is done by top

management who are responsible for developing
the long-term strategic plans which begin with
the creation of a vision and a mission.
2. Tactical Planning is done by the middle
managers who are responsible for developing
and carrying out the tactical plans to accomplish
the mission.
3. Operational planning is done by the lower-
level managers who are responsible for
developing and carrying out the operational
plans on more of a day to day basis.
Examples of Levels/Types of Plans
• Strategic Plans
12% Return on
• Long range (2 yrs or more)
Investment over
• Top level management next 3 years
• Organisational perspective

Production department:
manufacture 1 million
• Tactical Plans
products @ average cost
of $18 this year • Intermediate range (1-2 yrs)
• Middle level management
Marketing department: sell • Division perspective
1 million products @
average price $27 this year

Reduce scrap rates to 3% on • Operational Plans

factory floor in next 6 months • Short range (0-1 yr)
• Lower level management
Qld sales manager: visit 1 new • Department/individual
customer every fortnight perspective
 Planning time horizons

Long-term planning
 Strategic goals and plans
(five years and beyond)
 Organisation level; top
level management
Intermediate-term planning
 Tactical goals (between
one and two years)
 Division level; middle level
managers
Short-term planning
 Operational goals (one
year or less)
 Specific departments and
individual
 First level managers
Short-term Plans (Operational Plans)
up till 6 months

• Day to day plans, developed & implemented

by lower-level managers for producing or
delivering organization’s products & services
in the short run from 30 day to six-month
period
• Single-use plans & standing plans
Operational Plans

 Single-use plans – when used?

Once to meet needs of a unique situation
E.g. getting vaccines out during this COVID-19
Pandemic
 Standing plans – when used?
Ongoing plans providing guidance for
repeated activities
 Policy
 Rules & regulations
 Procedures
……that relates to the COVID-19 Pandemic
like advisories on social distancing, travel
restrictions, stay-home notices
Intermediate Plans (Tactical plans) :
6 months to 2 years

Plans created & implemented by middle

managers that specify how company will use its
resources, budgets & people over the next 6
months to 2 years to accomplish specific goals
within its mission
E.g. Fairfax announcing to reduce staff by 1900 to
de-emphasize print media & focus on delivering
digital content via computers & mobile devices
MBO (Management by Objectives) : a
management technique used to develop & carry
out tactical plans
 Tactical Plan:
Management by Objective (MBO)

A four-step process that encompasses

specific goals & tactical plans set by both
managers & employees for an explicit time
period, with feedback & review on goal
progress & accomplishment
Key Elements
• Goal specificity
• Participative decision making
•Jointly develop tactical plans
• Regular performance feedback & review
 Management By Objectives:
an integrated planning and control framework

Mutual agreement between employee & supervisor creates the strongest commitment to
achieving goals.

Samson, D. & Daft, R.L. 2012, Fundamentals of Management, 4th Asia-Pacific Edition, Cengage Learning
 Long Term Planning

Long term planning is needed for future

growth under normal circumstances
 E.g. Mashushita the founder of
Panasonic then announced a 250-
year plan for the company to fulfill
its mission.
 This period would consist of ten 25-
year periods, each divided into
three phases, a ten-year
construction phase, followed by a
ten-year fully active phase, and
then a five-year fulfillment phase.
 Panasonic was founded on March 7,
1918, by Konosuke Matsushita, who
was 23 years old at the time.
 Steps in the planning process

4. Track
3. Develop
progress
1. Set 2. Develop effective 5. Maintain
toward
goals commitment action flexibility
goal
plans
achievement

Revise existing plan

or
Begin new planning process
 Activity 4
• View this clip on SMART Goals
• https://www.youtube.com/watch?v=1-
SvuFIQjK8&list=RDLVDe0HyiqRXIU&index=8
 Setting Goals, the SMART Way

Specific

S.M.A.R.T. Measurable

Attainable

Realistic

Timely

E.g. Nissan’s zero-emissions program that led to the all-electric car Leaf
 E.g. Nissan’s electric car Leaf

 Specific
- zero emission means that it is not
just to reduce but eliminate them
- All electric means ruling out gas-
electric hybrids produced by
competitors
 Measurable: there is a number on
emissions namely zero – they have
done their research on lithium-ion
battery technology for 20 years
 Nissan’s electric car Leaf

Attainable & Realistic

- From a business standpoint but
can only be determined until the
Leaf is available to consumers
Timely
- Nissan’s goal was to roll out the
Leaf in Japan & the U.S. in 2010
and the rest of the world by
2012
 Attempt the mcqs in Quiz 6 to test your
knowledge and application of this week’s lecture