Enterprise Leadership

Lecture 1
Chapter 1- introduction to organisations and management

The high school scenario:

Managers

Managers are important for 3 main reasons:

1. Organisations need managerial skills and abilities in uncertain, complex

and chaotic times. There are many challenges that organisations deal with
in today’s world such as worldwide economic climate, risks of global
warming, changing technology, increasing globalisation and managers
play a crucial role in identifying issues and crafting responses. For
example, Gerry Harvey who is an executive chairman of Harvey Norman
has worked to maintain the sales and profitability of the business even
during the difficult economic environment during the Global Financial
Crisis of 2007-10 and the company was able to survive only because of the
good management skills of the leader as he kept inventory moving and his
salesperson engaged and motivated which lessened then impact of the
economic situation and boosted customer confidence.
2. Managers are also important, as they are important/needed when getting
things done. For example in the Glenala state high school, the principal
was not the only person at the school however she was the one making,
acting upon and implementing all the changes and plans so that everyone
together could provide better education at the school. So she ensured all
the staff were doing their job so better results could be achieved in their
purpose. She required a dedicated sense of purpose and ability to
communicate clearly her vision of making her organisation were essential
skills needed to make changes.
3. Managers contribute to employee productivity and loyalty, the way
employees are managed can affect the organisations financial
performance and managerial ability has been shown to be important in
creating organisational value.

Characteristics of an organisation

Organisations are a deliberate arrangement of people to accomplish some

specific purpose.
Organisations have 3 characteristics:
1. Distinctive purpose
2. Composed of people-external- consumers, other businesses and
internal- employees
3. Deliberate structure- e.g. big companies, small to medium or flat
structures.
 -Many of the organisations today are structured to be more open, flexible
and responsive to changes, and have undergone some major changes in
relation too how they run/operate.

There are a lot of differences in between the traditional and new organisations.
Traditional
-Boss had the most power
-Stable
-Inflexible

New
-Employees have more power through unions and laws
-Dynamic
- There is more flexibility in running of the company.
- Technological increase, use of robots and other technological devices for
intellectual purposes.

Organisational levels in olden days were different, so you were moved up from
one step to another howveer in today’s society this is less popular as industries
are becoming flat there are less jobs and everyone else is getting the same skills
e.g. university degrees. So structures are flattening there are few layers to the
organisational levels.

Classify managers and non-managerial employees

Managers coordinate and oversee the work of other people so that organisational
goals can be accomplished.
Non-managerial employees work directly on a job or a desk and have no one
reporting to them. In traditional structure managers can be first line, middle or
top. In other organisations, managers may not be as readily identifiable, although
someone must fulfil that role.

Management, efficiency and effectiveness

Management involves coordinating and overseeing the efficient and effective

completion of others works activities.
Efficiency means getting the most output from the least amount of input, or
doing things right.

Effectiveness means doing those work activities that help the organisation to
reach its goals, or doing the right things.

E.g. to increase student enrolment could be the goal

Efficiency- usage of resources e.g. lecture rooms can be used in summer schools
to get maximum benefits.
Management aims to have high efficiency, so low resource waste and high
effectivenes
Functions, roles and skills of managers

There are 4 functions of management including:

1. Planning- setting goals, establishing strategies and developing plans
2. Organising- arranging and structuring work
3. Leading – working with and through people
4. Controlling-monitoring, comparing and correcting work performance.

Mintzberg’s managerial roles include

1. Interpersonal roles, which involve people and other ceremonial/symbolic
duties (figurehead, leader and liaison)
2. Informational roles, which involve making choices (entrepreneur,
disturbance handler, resource allocator an negotiator).

Mintzberg’s newest description of what managers do proposes that managing is

about influencing action, which managers do in 3 ways:
1. By managing actions directly
2. By managing people who take action
3. By managing information that impels people to take action.

Katz’s managerial skills include technical (job-specific knowledge and

techniques), human or interpersonal- ability to work well with people and
conceptual (ability to think and conceptualise).
Technical skills are most important for lower-level managers, while conceptual
skills are most important for top managers. Human skills are equally important
for all managers. Some other managerial skills also identified include managing
human capital, inspiring commitment, managing change, using purposeful
networking etc.

Managerial job universal

All managers, independently of their organisational level, gave to plan, organise,
lead and control however the time they give to each function varies depending on
whether they are first-line mangers, middle managers or top managers. In
relation to the manager’s functional area, there are some differences but also
similarities in relation to managerial roles being performed, however all
managers have to carry out the management functions of planning, organising,
leading and controlling with their respective organisational areas. Although there
are distinctions between the management of profit and not-for-profit
organisations there are many commonalities in terms of what managers have to
do in both of these types of organisations. While there are differences in degree
and emphasis of both functions and roles, managers in both small and large
organisations perform essentially the same activities. Finally there are some
major differences in preferred managerial practices between countries meaning
that in this area the managers job is less universal.

Factors that are reshaping and redefining the manager’s job

The changes impacting manager’s jobs include global economic and political
uncertainties, changing workplaces, ethical issues, security threats and changing
technology.
Managers must be concerned with customer service, since employee attitudes
and behaviours play a bog role in customer satisfaction. Another concern for
managers is social media, because these forms of communication are becoming
important and valuable tools in managing. Mangers must also be concerned with
innovation, because it is important for organisations to be competitive. And
finally, managers must be concerned with sustainability as business goals are
developed.

Value of studying Management

It is important for 4 reasons:

1. Universality of management refers to the fact that managers are needed in
all types and sizes of organisations, at all organisational levels and work
areas and in all global locations.
2. The reality of work – you will either manage or be managed.
3. Managing yourself- there is a greater need to take greater control of our
own actions in the new types of organisations that are developing
4. The awareness that there are significant rewards such as creating work
environments to help people work to the best if their ability, supporting
and encouraging others, helping others to find meaning and fulfilment in
work.
5. There are challenges as it is hard work, sometimes having more clerical
than managerial duties, having to deal with a variety of personalities in
being a manager