Lecture 1.

Nature & Principles of Management

Chapter Outline 1. 2. 3. 4. 5. 6. 7. Introduction to management & organizations Functions of a manager Mintzbergs managerial roles Managerial skills The changing organization Rewards & challenges of a manager Universal need of management

1.1.

Introduction to management & organizations

Management The organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of defined objectives. Manager A management representative who coordinates and oversees the work of other people in order to accomplish organizational goals. He works with and through other people and the ultimate objective is to make things happen, done by others. Levels of managers

First-line Managers: Individuals who

manage the work of non-managerial employees.

Middle

Managers:

Individuals

who

manage the work of first-line managers.

Top Managers: Individuals who are

responsible for making organizationwide decisions and establishing plans and goals that affect the entire organization.

Management: Nature and Purpose

Management is the process of designing and maintaining an environment in which

individuals, working together in groups, accomplish efficiently selected aims. This basic definition needs to be expanded: 1. As managers, people carry out the managerial functions of planning, organizing, staffing, leading, and controlling. 2. 3. 4. 5. Management applies to any kind of organization. It applies to managers at all organizational levels. The aim of all managers is the same: to create a surplus. Managing is concerned with productivity; that implies effectiveness and efficiency.

Managerial concerns: Productivity, effectiveness & efficiency Another way to view the aim of all managers is to say that they must be productive. After World War II the United States was the world leader in productivity. But in the late 1960s productivity began to decelerate. Today government, private industry, and universities recognize the urgent need for productivity improvement.

Productivity: Successful companies create a surplus through productive operations.

Although there is not complete agreement on the true meaning of productivity, we will define it as the output-input ratio within a time period with due consideration for quality. Thus, productivity can be improved by I. II. III. Increasing outputs with the same inputs Decreasing inputs but maintaining the same outputs Increasing output and decreasing inputs to change the ratio favorably.

Productivity implies effectiveness and efficiency in individual and organizational performance. Effectiveness is doing the right things: i.e. the achievement of objectives. Efficiency is doing things right i.e. the achievement of the ends with the least amount
of resources, getting most outputs for least inputs.

To know whether they are productive, managers must know their goals and those of the organization. 1.2. Functions of a manager Functions Planning Organizing Mode to perform Defining vision, mission, objectives & goals; establishing strategies to achieve goals, developing plans to integrate and coordinate activities. Arranging and structuring work to accomplish organizational goals i.e. I. II. III. IV. V. Staffing Division of labor Delegation of authority Departmentalization Span of control Co-ordination structure. This is done by identifying workforce

Staffing involves filling, and keeping filled, the positions in the

organization requirements, inventorying the people available, recruiting, selecting, placing, promoting, planning the career, compensating, and training or otherwise developing both candidates and current job holders to accomplish their tasks effectively and efficiently.

Functions Leading

Mode to perform Working with and through people to accomplish goals. Leading is influencing people so that they will contribute to organization and group goals; it has to do predominantly with the interpersonal aspect of managing by I. II. III. IV. V. Motivation Communication Performance appraisal Discipline Conflict resolution

Controlling

Controlling is the measuring and correcting of activities of subordinates,

to ensure that events conform to plans. It measures performance against goals and plans, shows where negative deviations exist, and, by putting in motion actions to correct deviations, helps ensure accomplishment of plans. Although planning must precede controlling, plans are not self-achieving.

1.3. Mintzbergs Managerial Roles Mintzberg has drawn up a multifaceted concept of managers work, identifying interpersonal, informational and decisional roles within the overall umbrella heading of the term manager. Note that all 10 roles set out by Mintzberg, involve dealing with other people, even those that are not designated as interpersonal roles. INTERPERSONAL Figurehead Performs ceremonial and symbolic duties such as greeting visitors, signing legal documents Direct and motivate subordinates, training, counseling, and communicating with subordinates

Leader

Liaison
INFORMATIONAL

Maintain information links both inside and outside organization; use mail, phone calls, meetings Seek and receive information, scan periodicals and reports, maintain personal contacts Forward information to other organization members; send memos and reports, make phone calls

Monitor Disseminator

Spokesperson Transmit information to outsiders through

speeches, reports, memos DECISIONAL

Entrepreneur Disturbance Handler Resource Allocator Negotiator

Initiate improvement projects, identify new ideas, delegate idea responsibility to others Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises Decide who gets resources, scheduling, budgeting, setting priorities Represent department during negotiation of union contracts, sales, purchases, budgets; represent departmental interests

1.4. Managerial Skills and the Organizational Hierarchy

Technical skill is knowledge of and proficiency in activities involving methods,

processes, and procedures. Thus it involves working with tools and specific techniques. For example, mechanics work with tools, and their supervisors should have the ability to teach them how to use these tools. Similarly, accountants apply specific techniques in doing their job.

Human skill is the ability to work with people; it is cooperative effort; it is teamwork; it is
the creation of an environment in which people feel secure and free to express their opinions.

Conceptual skill is the ability to see the "big picture," to recognize significant elements in
a situation, and to understand the relationships among the elements.

Design skill is the ability to solve problems in ways that will benefit the enterprise. To be
effective, particularly at upper organizational levels, managers must be able to do more than see a problem. If managers merely see the problem and become "problem watchers," they will fail. They must have, in addition, the skill of a good design engineer in working out a practical solution to a problem.

Conceptual & Design skills

Figure: Skills Needed at Different Management Levels

1.5. Rewards and Challenges of Being a Manager

1.7. Universal Need for Management Good management is needed in all organizations. Employees either manage or are managed.