CHAPTER ONE

CHAPTER ONE

AN INTRODUCTION TO ORGANISATION AND THE NATURE OF MANAGEMENT

LEARNING OUTCOMES

At the end of this Chapter, you should be able to:

Identify who the managers are in an organisation

Explain what managers do Understand the management process and the tasks of management

Understand the roles of manager

Understand that managers make decisions and manage change.

Explain how managerial practices may change as organisations change (Nadler & Tushman model) and grow (Greiner Model)

Identify the four skills required of managers

Case study one• Sizwe Nxasana – CEO First Rand Bank (2010)• Differentiated by culture• Executes strategy through FNB, Outsurance, Rand Merchant Bank and Wesbank

• Success is as a result of how things are done, organizations culture and philosophy.

• Spirit of empowerment, innovation and entrepreneurialism

• As leaders- “our job is to keep the spirit alive and unleash its power”

Case study one continues• Each of the companies in the group specialises

in a specific niches, developed brand equity.• Working as a team• The leader sets an agenda• Every employee’s idea is valued resulting in 6200 innovations and 600 implemented

• Ideas are believed to increase the top line and reduce operating cost

• First rand is reliant on having the right skills

• Nxasana believes in the values of respect, integrity, honesty and appreciation of team work, transparency, good corporate governance, transformation- encouraging diversity.

• Group activity• WHO ARE MANAGERS AND WHERE DO THEY WORK?

WHO ARE MANAGERS AND WHERE DO THEY WORK?

Managers work in organisations All organisations share three characteristics:₋ They are all made up of people

₋ They all have a purpose₋ These people are grouped together in some way or other

All managers work in organizations

Organizations ≈collections of people who work together and coordinate their actions to achieve a wide variety of goals

≈Organizations vary from companies in JSE, to small businesses, to spaza shops, NGO, Municipalities etc.

Almost all organisations are open systems A system is a collection of interrelated parts that function together to achieve a common purpose (what are these interrelated parts?)

An organisation’s external environment is a source of resource inputs, as well as a source of opportunities and threats.

As an open system, an organisation both impacts on its external environment and in turn, is impacted by it.

WHAT IS MANAGEMENT AND WHAT DO MANAGERS DO

The term management refers to the process of getting things done, effectively and efficiently, through and with other people

The successful manager performs four basic managerial tasks that make up the management process:

planning, organising leading and controlling

•Need strong technical skills•Link between the operations of each department and the rest of the organization

•Spend most time leading and controlling, less time planning and organizing.

Managers

The people responsible for supervising the use of an organization’s resources to meet its goals

Management The planning, organizing,

leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently

Efficiency ≈A measure of how well or how productively resources are used to achieve a goal

Effectiveness≈A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.

1. The more efficient and effective use of scarce resources that organizations make of those resources, the greater the relative well-being and prosperity of people in that society

HOW ARE MANAGERS DIFFERENT FROM OPERATIVE?

An operative employee normally works on a particular task without having any supervisory role over other people

Managers, on the other hand, are responsible for directing and supervising both operative employees and lower-level managers.

Managers are often evaluated on how well the people they direct, do their jobs

Managers are categorised as first-line, middle or top

managers.

ORGANISATIONAL LEVES

LEVELS OF MANAGEMENT First-line managers₋E.g. Sales managers, section heads, or production supervisors

₋Directly responsible for the production of goods and services

₋Spend most of their time with people they supervise and other first-line managers

LEVELS OF MANAGEMENT

Middle managers₋E.g. Plant managers or directors of departments such as finance

₋Receive broad, general strategies and policies from top managers

•Translate policies into specific objectives and plans for first-line managers to implement (delegating authority and coordinating schedules and resources)

•Spend most of their time enabling first-line managers and non-managerial employees to work effectively (leading and organizing activities).

LEVELS OF MANAGEMENT Middle managers₋ Review work plans of various groups, help them set priorities, negotiate and coordinate their activities

₋ Adept at Developing their subordinates (team members)

Opening lines of communication for them

Giving them recognition and credit for their work

LEVELS OF MANAGEMENT

Top managers₋ E.g. Managing director or Rector ₋ Responsible for the overall direction and operations of an organization.

₋ Spend most of their time with people outside their organizations

₋ Spend 75% of their day planning and leading

₋ Decision making.

WHAT IS THE MANAGEMENT PROCESS ?

Organizing

Planning LeadingControlling

• Tasks:

PLANNING:

Involves defining organisational objectives and proposing ways to reach them.

ORGANISING:

Takes the tasks identified during planning and assigns them to individuals and groups within the organisation

LEADINGInvolves communicating with and motivating others to perform the tasks necessary to achieve the organisation’s goals within the context of a supportive organisational culture

CONTROLLING:

Is the process by which an organisation monitors performance and takes corrective action.

WHAT IS MANAGEMENT AND WHAT DO MANAGERS DO ?

(cont.)Mintzberg’s managerial roles


Is the manager’s job universal?

Yes and No. While in general the manager’s job is universal, any manager’s actual job will be influenced by:

Size of the organisationLevel of management in the organisation

First-line managers spend most time on “leading”

Middle managers spend most time on “leading” and “organising”

Top Managers spend most time on “planning” and “organising.” for the overall organisation.


(cont.)


Profit versus not-for-profit organisations

MAKING DECISIONS AND MAKING CHANGE

If one element of the organisation is changed to respond to developments in the turbulent external environment, then other elements of the organisation may have to change accordingly.

See Nadler & Tushman’ Congruence Model


Organisations may also need to change their management practices as they grow.

See Greiner’s Growth Model of Organisational Development

COMPETENCIES OF SUCCESSFUL MANAGERS

In order to successfully carry out the various managerial tasks, various competencies are required:Communication competencyPlanning & administrative competency

Teamwork competencyStrategic action competencyGlobal awareness competencyEmotional intelligence and self-management competency


A skill is a subset of managerial competencies and is an ability to translate knowledge into action that results in desired performance.Conceptual skills – an ability to think analytically and to solve complex problems.

Human skills:The ability to work well in co-operation with other people. Managers need to pay attention to the following with regard to employees:-•Work-life balanceCommunication•Personalisation Incentives•Meaning A healthy workforce


Technical skills:The ability to use specific knowledge, techniques and resources to perform work.

Political skills The ability to enhance one’s position, build a power base, and establish the right connections.

END OF CHAPTER ONE

CHAPTER ONE

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