Managers Are No Longer Bosses
 Managers must practice the art of
getting things done through
organizational resources (e.g., workers,
financial resources, information, and
equipment).
 At one time, managers were called
bosses, and their job was to tell people
what to do and watch over them to be
sure they did it.
Managers Are No Longer Bosses
 Today, progressive management is
changing.
Managers Are No Longer Bosses
 Today’s managers are being educated to guide,
train, support, motivate and coach employees
rather than to tell them what to do.
 Managers realize that workers often know
much more about technology than they do.
 Thus, most modern managers emphasize
teamwork and cooperation rather than
discipline and order giving.
Managers Are No Longer Bosses
Managers in same high-tech firms
and in progressive firms of all kinds
are more friendly and generally
treat employees partners rather
than unruly workers; many even
dress more casually than before.
Managers Are No Longer Bosses
In the past, a worker would expect
to work for the same company for
many years, maybe even a lifetime.
Similarly, companies would hire
good people and keep them for a
long time.
Managers Are No Longer Bosses
 Today, many companies don't hesitate to layoff
employees, and employees don't hesitate to leave if their
needs are not being met.
 Long term contracts between management and
employees-and the accompanying trust-are often no
longer there.
Managers Are No Longer Bosses
This makes the management task
more difficult because managers
must earn the trust of their
employees, which includes
rewarding them and finding other
ways to encourage them to stay in
the firm.
Managers Are No Longer Bosses
 In general, management is
experiencing a revolution.
 Managers in the future are likely to be
working in teams, to be evaluated by
those below them as well as those
above, and to be assuming completely
new roles in the firm.
Managers Are No Longer Bosses
 What this means for you and other
graduates of tomorrow is that
management will demand a new
kind of person: a skilled
communicator and team player as
well as a planner, coordinator,
organizer, and supervisor.
MANAGEMENT
ATTAINMENT OF ORGANIZATIONAL GOALS THROUGH OTHER PEOPLE,
EFFECTIVELY AND EFFICIENTLY, BY PLANNING, ORGANIZING, LEADING
AND CONTROLLING THE ORGANIZATIONAL RESOURCES
Management is the process of accomplishing an organization’s goals
by working with and through people, utilizing the resources available
to it.
MANAGEMENT EMBODIES FOUR IMPORTANT IDEAS;
 A TASK TO BE DONE
 PEOPLE WHO DO THE WORK
 EFFECTIVELY(ACHIEVING THE ENDS) AND
EFFICIENTLY(WITH LEAST AMOUNT OF RESOURCES)
 UTILIZING FOUR MANAGERIAL FUNCTIONS(PLANNING,
ORGANIZING, LEADING, CONTROLLING)
Functions of Management
Well-known management
consultant Peter Drucker says
managers give direction to their
organizations, provide leadership,
and decide how to use
organizational resources to
accomplish goals.
Functions of Management
 Managers must also efficiently use
organizational resources such as buildings,
equipment, and supplies.
 Managers look at the "big picture,“ and their
decisions make a major difference in
organizations.
 In addition to those tasks, managers today
must deal with conflict resolution, create trust
in an atmosphere where trust has been badly
shaken, and help create balance between work
lives and family lives.
The Evolution of Management
Thougt
Neo Classical
Management
Classical
Management
Economic
s
1900
1960
Mayo
Mc Gregor
Likert
Prof. Dr. Rana ÖZEN KUTANİS
Post-Modern
Management
Environmen
t
Human
1930
Taylor
Fayol
Weber
Modern
Management
Knowledg
e
2000
Contingenc
y Approach
System
Approach
Theory Z
TQM
New
Management
Techniques
15
MAJOR CLASSIFICATION OF MANAGEMENT
APPROACHES
CLASSICAL
APPROACH
SCIENTIFIC
MANAGEMENT
BUREAUCRATIC ADMINISTRATIV
MANAGEMENT
E
MANAGEMENT
NEOCLASSICA HAWTHORNE
L
STUDIES
(BEHAVIORAL)
APPROACH
MASLOW’S
NEED
HIERARCHY
THEORY X AND
THEORY Y
QUANTITATIVE MANAGEMENT
APPROACH
SCIENCE
OPERATIONS
MANAGEMENT
MANAGEMENT
INFORMATION
SYSTEM
MODERN
APPROACH
CONTINGENCY
THEORY
EMERGING
APPROACHES
THE SYSTEMS
THEORY
Functions of Management
 Management is the process used to
accomplish organizational goals through
(1) planning,
(2) organizing,
(3) leading,
(4) controlling people and other
organizational resources.
Management Process
(1) planning,
(2) organizing,
(3) coordinating,
(4) execution,
(5) controlling.
MANAGERIAL FUNCTIONS
 PLANNING
* GOALS, PLANS, DECISION MAKING
 ORGANIZING
*DIVISION OF WORK, CHAIN OF COMMAND,
DEPARTMENTALIZATION
 LEADING
*LEADERSHIP, MOTIVATION, COMMUNICATION
 CONTROLLING
*MANAGEMENT CONTROL SYSTEMS, FINANCIAL CONTROL
SYSTEMS
Functions of Managementplanning
Planning includes anticipating
trends and determining the best
strategies and tactics to achieve
organizational goals and objectives.
One of those objectives is to please
customers.
Functions of Managementplanning
 The trend today is to have planning
teams to help monitor the
environment, find business
opportunities, and watch for
challenges.
 Planning is a key management
function because the other functions
often depend on having a good plan.
Functions of Managementplanning
 Planning includes:
 Setting organizational goals.
 Developing strategies to reach those
goals.
 Determining resources needed.
 Setting standards.
PLANNING
DETERMINING THE ORGANIZATION’S OBJECTIVES (GOALS)
AND ITS WAYS AND MEANS(PLANS) TO ACCOMPLISH THEM
GOALS
 STRATEGIC GOALS
 TACTICAL GOALS
 OPERATIONAL
GOALS
PLANS
 STRATEGIC PLANS
 TACTICAL PLANS
 OPERATIONAL PLANS
TYPES OF PLANS
ACCORDING
TO TIME
PERIOD
ACCORDING TO
ACCORDING TO
THEIR USE IN THE THEIR PLACE IN
ORGANIZATION
THE
ORGANIZATIONAL
HIERARCHY
LONG RANGE
PLANS(>5 YEARS)
STANDING PLANS
(POLICY,
PROCEDURE, RULE)
MEDIUM RANGE
PLANS(1-5 YEARS)
TACTICAL PLANS
SINGLE-USE PLANS (MIDDLE MANAGEMENT)
(PROGRAM,PROJECT,
BUDGET)
OPERATIONAL PLANS
SHORT RANGE
PLANS(<1 YEAR)
STRATEGIC PLANS
(TOP MANAGEMENT)
(FIRST-LINE MANAGERS)
FORMS OF PLANNING
Strategic planning
 Strategic planning determines the
major goals of the organization. It
provides the foundation for the
policies, procedures, and strategies
for obtaining and using resources to
achieve those goals.
 In this definition, policies are broad
guides to action, and strategies
determine the best way to use
resources,
Strategic planning
 At the sttategic planning stage, the company decides
which customers to serve, what products or services to
sell, and the geographic areas in which the firm will
compete.
 Every firm faces unique challenges that will influence
what the strategic plans must be.
 Today, making strategic plan is diffucult because
changes occuring so fast.
TACTICAL PLANING
 Tactical planning, for example,
involves setting annual budgets and
deciding on other details and activities
necessary to meet the strategic
objectives.
TACTICAL PLANING
 Tactical planning is the process of developing
detailed, short-term statements about what is to be
done, who is to do it, and how it is to be done.
 Tactical planning is normally done by managers or
teams of managers at lower levels of the
organization, whereas strategic planning is done by
the top managers of the firm.
TACTICAL PLANING
 If the strategic plan, for example, is to sell more trucks
in the South, the tactical plan might be to fund more
research of southern truck drivers' wants and needs,
and to plan advertising to reach those people.
OPERATIONAL PLANNING
 Operational planning is the process of
setting work standards and schedules
necessary to implement the tactical
objectives.
 Whereas strategic planning looks at the
organization as a whole, operational
planning focuses on specific
supervisors, department managers, and
individual employees.
OPERATIONAL PLANNING
 The operational plan is the department
manager's tool for daily and weekly
operations.
 An operational plan may include, say,
the specific dates for certain truck parts
to be completed and the quality
specifications those parts must meet.
CONTINGENCY PLANNING
Contingency planning is the
process of preparing alternative
courses of action that may be
used if the primary plans don't
achieve the organization's
objectives.
CONTINGENCY PLANNING
 The economic and competitive
environments change so rapidly that it's
wise to have alternative plans of action
ready in anticipation of such changes. For
example, if an organization doesn't meet
its sales goals by a certain date, the
contingency plan may call for more
advertising or a cut in prices at that time
CONTINGENCY PLANNING
 Crisis planning is a part of contingency
planning that involves reacting to
sudden changes in the environment.
For example, trucking and airline firms
had to do same crisis planning when
gas prices soared in 2000.
DECISION MAKING
 PROGRAMMED DECISIONS
ARE UTILIZED IN SITUATION THAT OCCUR OFTEN
ENOUGH
 UNPROGRAMMED DECISIONS
ARE MADE UNIQUELY IN UNSTRUCTURED,
POORLY DEFINED SITUATIONS
ORGANIZING
PROCESS OF GROUPING AND STRUCTURING ACTIVITIES,
ASSIGNING DUTIES, COORDINATING THE EFFORTS IN
ATTAINMENT OF ORGANIZATIONAL GOALS
FUNDAMENTALS OF ORGANIZING
 SPECIALIZATION /DIVISION OF WORK
 CHAIN OF COMMAND
 AUTHORITY
 DELEGATION
 SPAN OF CONTROL
 FORMALIZATION
 CENTRALIZATION / DECENTRALIZATION
Functions of Managementorganizing
 Organizing includes designing the structure of the
organization and creating conditions and systems in
which everyone and everything work together to
achieve the organization's goals and objectives.
 Many of today's organizations are being designed
around the customer.
 The idea is to design the firm so that everyone is
working to please the customer at a profit.
Functions of Managementorganizing
 Organizing includes:
◦ Allocating resources, assigning tasks, and establishing
procedures for accomplishing goals.
◦ Preparing a structure (organization chart) showing lines
of authority and responsibility.
◦ Recruiting, selecting, training, and developing
employees.
◦ Placing employees where they will be most effective.
FACTORS AFFECTING THE ORGANIZATION
STRUCTURE
 GOALS AND STRATEGY
 ENVIRONMENT
 TECHNOLOGY
 DEPARTMENTAL INTERDEPENDENCE
TYPES OF DEPARTMENTALIZATION
TRADITIONAL
 FUNCTIONALDEPARTMENTALIZATION
 DIVISIONAL DEPARTMENTALIZATION
MODERN
 MATRIX STRUCTURE
CONTEMPORARY
 TEAM-BASED STRUCTURES
 NETWORK STRUCTURES
Functions
of
Management-leading
 Leading means creating a vision for the
organization and communicating, guiding,
training, coaching, and motivating others to
work effectively to achieve organization's goals
and objectives.
 The trend is to empower employees, giving them
as much freedom as possible to become selfdirected and self -motivated.
Functions of Management-leading
 Leading includes:
◦ Giving assignments
◦ Explaining routines (everyday
task)
◦ Clarifying policies
◦ Providing feedback on
performance.
LEADING
USE OF INFLUENCE TO DIRECT AND MOTIVATE THE
EMPLOYEES TO ACCOMPLISH THE ORGANIZATIONAL GOALS
KEY VARIABLES OF LEADERSHIP
 LEADER
 TASK / GOAL
 FOLLOWERS
 SITUATION
THEORIES OF LEADERSHIP
 TRAIT THEORY OF LEADERSHIP
 BEHAVIORAL(STYLES) THEORIES OF
LEADERSHIP
*AUTHORITARIAN-DEMOCRATIC BEHAVIOR IN A
CONTINUUM
*TWO-DIMENSIONAL LEADERSHIP BEHAVIOR
 CONTINGENCY THEORIES OF LEADERSHIP
Functions of Managementcontrolling
 Controlling involves establishing clear
standards to determine whether an
organization is progressing toward its
goals and objectives, rewarding people
for doing a good job, and taking
corrective action if they are not.
Functions of Managementcontrolling
 Controlling includes:
◦ Measuring results against corporate
objectives.
◦ Monitoring performance relative to
standards.
◦ Rewarding outstanding performance.
◦ Taking corrective action
CONTROLLING
TO MEASURE PERFORMANCES AGAINST STANDARTS AND
TAKE CORRECTIVE ACTIONS IF NECESSARY
FORMS IN CONTROLLING
 FEED FORWARD CONTROL
 CONCURRENT CONTROL
 FEEDBACK CONTROL
STEPS IN FEEDBACK CONTROL
* ESTABLISH STANDARTS
* MEASURE ACTUAL PERFORMANCES
* COMPARE ACTUAL PERFORMANCES
AGAINST STANDARTS
* TAKE CORRECTIVE ACTION IF NECESSARY
CONTROLLING IN ORGANIZATIONS
 MANAGEMENT CONTROL SYSTEMS
RETURN ON INVESTMENT(ROI), MARKET SHARE ANALYSIS,
CUSTOMER RELATIONS, GROWTH, PROFIT ETC.
 OPERATIONAL CONTROL SYSTEMS
BREAK-EVEN ANALYSIS, PERT
 FINANCIAL CONTROL SYSTEMS
BUDGETS, FINANCIAL ANALYSIS
(LIQUIDITY,LEVERAGE,PROFITABILITY,ACTIVITY RATIO ANALYSIS)
CONTROLLING SYSTEMS
 BUREAUCRATIC
 DECENTRALIZED
CONTROL SYSTEMS
CONTROL SYSTEMS
(USE OF RULES, POLICIES,
(CONCURRENT CONTROL
TECHNIQUES ARE USED
TO SOLVE PROBLEMS AS
THEY HAPPEN)
HIERARCHY OF
AUTHORITY, WRITTEN
DOCUMENTS , REWARD
SYSTEMS)
NEW APPROACHES :
 CLAN CONTROL
 TOTAL QUALITY
MANAGEMENT(TQM)