THE CHANGING PARADIGM OF MANAGEMENT

Reporter: Leilani Mariana G. Castelo

Definition of Management
Management

is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.
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Definition of Management
Resources include people (loyal customers and employees) skills, know-how and experience, machinery, technology raw materials financial capital

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Management Functions

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Management Functions
Planning means defining goals for future organizational performance and deciding on the tasks and use of resources needed to attain them.

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Management Functions
Organizing involves the assignment of tasks, the grouping of tasks into department, and the allocation of resources to departments.

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Management Functions
Leading is the use of influence to motivate employees to achieve organizational goals. It also means creating a shared culture and values, communicating goals throughout the organization, and infusing employees with the desire to perform at a high level. It involves motivating entire departments and division as well as those individuals working immediately with the manager.
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Management Functions
Controlling means monitoring employees activities, determining whether the organization is on target toward its goals, and making corrections as necessary.

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Organizational Performance
Organization is defined as:

a social entity - being made up of two or more people goal directed - designed to achieve some outcome deliberately structured - tasks are divided and responsibility for their performance is assigned to its members.
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Organizational Performance
Performance the ability of an organization to attain its goals by using resources in an efficient and effective manner

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Organizational Performance
Organizational effectiveness the degree to which the organization achieves a stated goal. It means that the organization succeeds in accomplishing what it tries to do. Organizational effectiveness means providing a product or service that customers value.

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Organizational Performance
Organizational efficiency amount of resources used to achieve an organizational goal. It is based on how much raw materials, 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.
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Figure 1.1

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Management Skills A managers job is complex and multidimensional and requires a range of skills. The necessary skills for managing an organization can be summarized in three categories:

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Management Skills
Conceptual skill is the cognitive ability to see the organization as a whole and the relationship among its parts. Conceptual skill involves the managers thinking, information processing, and planning abilities. It involves knowing where ones department 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.
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Management Skills
Human skill is the ability to work with and through other people and to work effectively as a group member. This skill is demonstrated in the way a manager relates to other people, including the ability to motivate, facilitate, coordinate, lead, communicate, and resolve conflicts. A manager with human skills allows subordinates to express themselves without fear of ridicule and encourages participation.
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Management 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. Technical skill 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 job by having excellent technical skills. However, technical skills become less important than human and conceptual skills as managers move up the hierarchy.
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Management Types

Vertical Differences

An important determinant of the managers job is hierarchical level.

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Management Types

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Management Types
Top managers
are responsible for the entire organization (president, chairperson, executive director, chief executive officer). setting organizational goals, defining strategies for achieving them, monitoring and interpreting the external environment, and making decisions that affect the entire 1-20 organization.

Management Types
Middle managers are responsible for business units and major departments. They typically have two or more management levels beneath them. They are responsible for: implementing the overall strategies and policies defined concerned with the near future and are expected to establish good relationships with peers around the organization, encourage teamwork, and resolve conflicts responsible for creating a horizontal network
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Management Types
First-line managers
are directly responsible for the production of goods and services (supervisor, line manager, section chief). They are responsible for groups of non-management employees. Their primary concern is the application of rules and procedures to achieve efficient production, provide technical assistance, and motivate subordinates. 1-22

Management Types
Horizontal Differences The other major difference in management jobs occurs horizontally across the organization

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Management Types
Functional managers are responsible for departments that perform a single function task and have employees with similar training and skills. Functional departments include finance, human resources, accounting, production. Line managers are responsible for the production departments that make or sell the product or service. Staff managers are in charge of departments such as finance and human resources that support line department.
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Management Types
General managers are responsible for several departments that perform different functions. A general manager is responsible for a self-contained division. Project managers also have general management responsibility, because they coordinate people across several departments to accomplish a specific project.
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Relative Amount of Time That Managers Spend on the Four Managerial Functions

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Skill Types Needed

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Manager Roles
A role is a set of expectations for a managers behaviour. Roles are directed inside as well as outside of the organization. These roles are divided into three conceptual categories:

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Informational Roles
Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization. Monitoranalyzing information from both the internal and external environment. Disseminatortransmitting information to influence the attitudes and behavior of employees. Spokespersonusing information to positively influence the way people in and out of the organization respond to it.

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Interpersonal Roles
Roles that managers assume to provide direction and supervision to both employees and the organization as a whole. Figureheadsymbolizing the organizations mission and what it is seeking to achieve. Leadertraining, counseling, and mentoring high employee performance. Liaisonlinking and coordinating the activities of people and groups both inside and outside the organization.

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Decisional Roles
Roles associated with methods managers use in planning strategy and utilizing resources. Entrepreneurdeciding which new projects or programs to initiate and to invest resources in. Disturbance handlermanaging an unexpected event or crisis. Resource allocatorassigning resources between functions and divisions, setting the budgets of lower managers. Negotiatorreaching agreements between other managers, unions, customers, or shareholders.

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The Changing Paradigm of Management

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A paradigm is a shared mind-set that represents a fundamental way of thinking about, perceiving, and understanding the world. Shifts in ways of thinking are occurring in our society, and these in turn impact organizations, causing shifts in management thinking and behaviour. The primary shift is from the traditional vertical organization to something called the learning organization.
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The Changing Paradigm of Management

Old Paradigm Vertical Organization one in which activities are grouped by common function from the bottom to the top of the organization. The whole organization is coordinated and controlled through the vertical hierarchy, with decision-making authority residing with upper-level managers. characterized by routine, specialized jobs and standardized control procedures. very effective in stable times. However, they often do not work well in fast-changing environments. In response, many companies are shifting to a new paradigm and becoming organizations.
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The Changing Paradigm of Management

New Paradigm - Learning Organization the primary responsibility of the managers is not to make decisions, but to create learning capability throughout the organization. Employees on the front lines routinely make decisions rather than passing them up the hierarchy for approval. there is no single model of the learning organization; it is a philosophy or attitude about what an organization is and the role of employees. everyone in the organizations participates in identifying and solving problems, enabling the organization to continuously experiment, improve, and increase its capability.
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The Changing Paradigm of Management

top managers are leaders who create a vision for the future that is widely understood and imprinted throughout the organization. employees are empowered to identify and solve problems because they understand the vision and long-term goals of the organization.
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The Changing Paradigm of Management

The traditional top-down hierarchy is giving way to flatter organizations to built around selfdirected teams collaborating across levels and departments. Lower-level managers serve as team leaders, coaches and facilitators.

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Forces on Organizations
1) The most striking change now affecting organization and management is globalization. Globalization brings a need for relentless innovation, greater concern for quality, rapid response, enhanced productivity, and new levels of customer service.

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Forces on Organizations

2) Diversity of the workforce has

become a fact of life for all organizations, even those that do not operate globally.

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Forces on Organizations
3) Another significant shift is that technology is
electronic rather than mechanical, as the world is gradually shifting from a workforce that produces material things to one that primarily manages information.

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Forces on Organizations

4)

In the face of these rapid transformations, organizations are learning to value change over stability.

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New Management Competencies

Managers rely on varied skills and perform different activities depending on hierarchical level and job responsibilities. For all managers, however, human skills are becoming increasingly important. Critical skills for top-level managers in todays world include the ability to create an exciting and demanding work environment and to inspire confidence in and support for the organization and its leadership. 1-41

New Management Competencies

Middle managers have to learn to build relationships, empower others, promote cooperation, and manage conflict. First-line supervisors need the ability to motivate workers on a day-to-day basis and sustain employee energy toward he completion of organizational goals. Thus, although managers at different levels play different roles and rely on different skills, there are some manager competencies that are important to all managers in the new world of organizations.
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New Management Competencies

Rather than a single-minded focus on profits, todays managers recognize the importance of staying connected to clients and employees on a daily basis. They remain flexible and adaptable, able to respond quickly to client and employee needs. Rather than simply issuing orders, managers finding ways to benefit from employees insights giving them the freedom to make decisions and solve problems.
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New Management Competencies

Leadership is dispersed throughout the organization, and managers share rather than hoard power. The model of managers controlling workers no longer applies in a world of rapidly changing technology, diversity, and global competition. Instead, managers act as coaches and facilitators, getting everyone involved and committed. Everyone is given a chance to be a leader.

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Six Core Managerial Competencies

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 people participate in setting goals having

Creating a supportive team environment gets people committed to the teams 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

Multicultural Competency
Understanding, appreciating and responding to diverse political, cultural, and economic issues across and within regions Cultural knowledge and understanding of the events in at least a few other cultures Cultural openness and sensitivity to how others think, act, and feel Respectful of social etiquette variations Accepting of language differences

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