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Management: A Competency Base Approach

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Chapter 1
Managing in a Dynamic
Environment

Learning Objectives
 Define Managers And Management.
 Explain What Managers Do.
 Describe The Competencies Used In
Managerial Work And Assess Your
Current Competency Levels.

Introductory Concepts: What Are
Managerial Competencies?
 Competency – a combination of knowledge,
skills, behaviors, and attitudes that contribute to
personal effectiveness
 Managerial Competencies – sets of knowledge,
skill, behaviors, and attitudes that a person
needs to be effective in a wide range of positions
and various types of organizations

Why are Managerial Competencies
Important?
 You need to use your strengths to do your best
 You need to know your weaknesses
 You need developmental experiences at work to become
successful leaders and address your weakness
 You probably like to be challenged with new learning
opportunities
 Organizations do not want to waste human resources
 Globalization deregulation, restructuring, and new
competitors add to the complexity of running a business

A Model of Managerial
Competencies
(adapted from Figure 1.1)
Teamwork
Competency
Global
Awareness
Competency
Strategic
Action
Competency
Planning and
Administration
Competency
Self-Management
Competency
Communication
Competency

A Model of Managerial
Competencies
Teamwork
Competency
Global
Awareness
Competency
Strategic
Action
Competency
Planning and
Administration
Competency
Self-Management
Competency
Communication
Competency
Managerial
Effectiveness

What Is An Organization?
 A formal and coordinated group of people who
function to achieve particular goals
 These goals cannot be achieved by individuals
acting alone
 An organization has a structure, discussed in depth
in Chapter 11

Characteristics of an
Organization
 An organization has a structure.
 An organization consists of a group of people
striving to reach goals that individuals acting
alone could not achieve.

Management
Organization
Two or more people who work together in a structured
way to achieve a specific goal or set of goals.
Goals
Purpose that an organization strives to achieve;
organizations often have more than one goals, goals are
fundamental elements of organization.
The Role of Management
To guide the organizations towards goal
accomplishment

- People responsible for
directing the efforts aimed
at helping organizations
achieve their goals.
- A person who plans,
organizes, directs and
controls the allocation of
human, material, financial,
and information resources
in pursuit of the
organization’s goals.

Management
 Management refers to the tasks and activities
involved in directing an organization or one of
its units: planning, organizing, leading, and
controlling.
 The process of reaching organizational goals by
working with and through people and other
organizational resources.

Functional Managers: A manager responsible for
just one organizational activity such as accounting,
human resources, sales, finance, marketing, or
production
 Focus on technical areas of expertise
 Use communication, planning and
administration, teamwork and self-
management competencies to get work
done
Function: A classification referring to a group of
similar activities in an organization like marketing
or operations.

General Managers: responsible for the operations
of more complex units—for example, a company or
division
 Oversee work of functional managers
 Responsible for all the activities of the unit
 Need to acquire strategic and multicultural
competencies to guide organization
(cont’d)
Many Other types of managers

Basic Managerial Functions
Organizing
Planning
Controlling
Leading

Management Process and Goal
Attainment

Management and Organizational
Resources

Planning involves tasks
that must be performed to
attain organizational goals,
outlining how the tasks
must be performed, and
indicating when they
should be performed.

Planning
 Determining organizational goals and
means to reach them
 Managers plan for three reasons
1. Establish an overall direction for the
organization’s future
2. Identify and commit resources to achieving
goals
3. Decide which tasks must be done to reach
those goals
 Discussed in depth in Chapter 7 & 8

Organizing means assigning the planned tasks to
various individuals or groups within the
organization and cresting a mechanism to put plans
into action.

Organizing
 Process of deciding where decisions will be made, who
will perform what jobs and tasks, and who will report
to whom in the company
 Includes creating departments and job descriptions

Leading (Influencing) means guiding the activities
of the organization members in appropriate
directions. Objective is to improve productivity.

Leading
 Getting others to perform the
necessary tasks by motivating them to
achieve the organization’s goals
 Crucial element in all functions
 Discussed throughout the book and in
depth in Chapter 15—Dynamics of
Leadership

1. Gather information that measures recent performance
2. Compare present performance to pre-established standards
3. Determine modifications to meet pre-established standards

Controlling
 Process by which a person, group,
or
organization consciously monitors
performance and takes corrective
action
 Discussed in depth in Chapter 10

Basic Levels of Management
Top
Managers
Middle Managers
First-Line Managers
Nonmanagers

Top Managers
 Responsible for providing the overall direction of an
organization
 Develop goals and strategies for entire organization
 Spend most of their time planning and leading
 Communicate with key stakeholders—stockholders,
unions, governmental agencies, etc., company
policies
 Use of multicultural and strategic action
competencies to lead firm is crucial

Levels of Management
 First-line Managers: have direct responsibility for
producing goods or services Foreman, supervisors,
clerical supervisors
 Middle Managers:
 Coordinate employee activities
 Determine which goods or services to provide
 Decide how to market goods or services to customers
Assistant Manager, Manager (Section Head)
 Top Managers: provide the overall direction of an
organization Chief Executive Officer, President, Vice
President

First-line Managers
 Directly responsible for production of goods or services
 Employees who report to first-line managers do the
organization’s work
 Spend little time with top managers in large organizations
 Technical expertise is important
 Rely on planning and administration, self-management,
teamwork, and communication competencies to get work
done

Middle Managers
 Responsible for setting objectives that are consistent with
top management’s goals and translating them into specific
goals and plans for first-line managers to implement
 Responsible for coordinating activities of first-line
managers
 Establish target dates for products/services to be delivered
 Need to coordinate with others for resources
 Ability to develop others is important
 Rely on communication, teamwork, and planning and
administration competencies to achieve goals

Six Core Managerial Competencies:
What It Takes to Be a Great Manager
 Communication Competency
 Planning and Administration Competency
 Teamwork Competency
 Strategic Action Competency
 Multicultural Competency
 Self-Management Competency

Communication Competency
 Ability to effectively transfer and exchange information
that leads to understanding between yourself and others
 Informal Communication
 Used to build social networks and good
interpersonal relations
 Formal Communication
Used to announce major events/decisions/
activities and keep individuals up to date
 Negotiation
Used to settle disputes, obtain resources,
and exercise influence

 Deciding what tasks need to be done, determining
how they can be done, allocating resources to enable
them to be done, and then monitoring progress to
ensure that they are done
 Information gathering, analysis, and problem solving
from employees and customers
 Planning and organizing projects with agreed
upon completion dates
 Time management
 Budgeting and financial management

 Accomplishing tasks through small groups of
people who are collectively responsible and
whose job requires coordination
 Designing teams properly involves having
people participate in setting goals
 Creating a supportive team environment gets
people committed to the team’s goals
 Managing team dynamics involves settling
conflicts, sharing team success, and assign tasks
that use team members’ strengths

Strategic Action Competency
 Understanding the overall mission and values of
the organization and ensuring that employees’
actions match with them
 Understanding how departments or divisions of
the organization are interrelated
 Taking key strategic actions to position the firm
for success, especially in relation to concern of
stakeholders
 Leapfrogging competitors

Snapshot
“Sony must sell off businesses that don’t fit
its core strategy of fusing gadgets with films,
music, and game software. That means
selling off its businesses in its Sony Financial
Holdings, which are very profitable.”
Howard Stringer, CEO, Sony

Self-Management Competency
 Developing yourself and taking responsibility
 Integrity and ethical conduct
 Personal drive and resilience
 Balancing work and life issues
 Self-awareness and personal development
activities

Learning Framework for Managing
Part I: Overview of Management
Part II: Managing the Environment
Part III: Planning and Control
Part IV: Organizing
Part V; Leading

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