CHAPTER - 1

MANAGING & MANAGERS

Organizations & the need for management

Organization Two or more people who work

together in a structured way to achieve a specific goal or set of goals. Goal - The purpose that an organization strives to achieve; organizations often have more than one goal; goals are fundamental elements of organizations. Plan Program or method for achieving goals. Organizations must also acquire & allocate the resources necessary to achieve their goals.

Managing Organizations
Management The process of planning,

organizing, leading & controlling the work of organization members & of using all available organizational resources to reach stated organizational goals. Manager People responsible for directing the efforts aimed at helping organizations achieve their goals.

Why study Organizations & Management

1) Living in the present organizations

contribute to the present standards of living of people worldwide. 2) Building the future - Organization build toward a desirable future & help individuals do the same. 3) Remembering the past Everyday that we work with others adds to the history of the organization & to our own history.

Managerial & Organizational Performance

Managerial Performance The measure of how

efficient & effective a manager is how well he or she determines & achieves appropriate objectives. Organizational Performance The measure of how efficient & effective an organization is how well it achieves appropriate objectives.

Efficiency & Effectiveness

Efficiency The ability to minimize the use of

resources in achieving organizational objectives: doing things right. Effectiveness The ability to determine appropriate objectives: doing the right thing.

The Management Process

Functions of Manager: 1) Planning 2) Organizing 3) Leading 4) Controlling

Planning
The process of establishing goals & a suitable

course of action for achieving those goals. Plans are guides by which: The organization obtains & commits the resources required to reach its objectives. Members of the organization carry on activities consistent with the chosen objectives & procedures. Progress toward the objectives is monitored & measured so that corrective action can be taken if progress is unsatisfactory.

Organizing
The process of engaging two or more people in

working together in a structured way to achieve a specific goal or set of goals. Managers must match an organizations structure to its goals & resources, a process called organizational design. Staffing Seeking new people to join the structure of relationships.

Leading
The process of directing & influencing the task-

related activities of group members or an entire organization. Managers lead in an attempt to persuade others to join them in pursuit of achieving goals.

Controlling
The process of ensuring that actual activities

conform to planned activities. 3 main elements: Establishing standards of performance. Measuring current performance. Comparing this performance to the established standards. Taking corrective action if deviations are detected.

Managerial Roles
Interpersonal Roles Roles that involve people (subordinates & persons outside the organization) & other duties that are ceremonial & symbolic in nature. II. Informational Roles Involve collecting, receiving & disseminating information. III. Decisional Roles Involve making decisions & choices.
I.

Interpersonal Roles
Figurehead Symbolic head, obliged to perform

a number of routine duties of a legal or social nature. e.g.. Greeting Visitors; signing legal documents Leader Responsible for the motivation of subordinates; responsible for staffing, training, & associated duties. e.g.. Performing virtually all activities that involve subordinates. Liaison Maintains self-developed network of outside contacts & informers who provide favors & information

Informational Roles
Monitor Seeks & receives wide variety of

internal & external information to develop through understanding of organization & environment. e.g. Reading periodicals & reports; maintaining personal contacts. Disseminator Transmits information received from outsiders or from subordinates to members of the organization. e.g. holding informational meetings; making phone calls to relay information. Spokesperson Transmits information to outsiders on organizations plans, policies, actions, results, etc. e.g. holding board meetings; giving information

Decisional Roles
Entrepreneur Searches organization & its

environment for opportunities & initiates improvement projects to bring about changes. e.g. organizing strategy & review sessions to develop new programs. Disturbance handler Responsible for corrective action when organization faces important, unexpected disturbances. e.g. organizing strategy & review sessions that involve disturbances & crisis .

 Resource Allocator Responsible for the

allocation of organizational resources of all kinds making or approving all significant organizational decisions. e.g. Scheduling; requesting authorization; performing any activity that involves budgeting & the programming of subordinates work. Negotiator Responsible for representing the organization at major negotiations. e.g. participating in union contract negotiations.

Types of Managers
Management Levels
First Line Managers Middle Managers Top Managers Functional & General managers

Managerial Levels

Management Levels
First Line Managers Managers who are

responsible for the work of operating employees only & do not supervise other managers; they are the first or lowest level of managers in the organizational hierarchy. Middle Managers Managers in the midrange of the organizational hierarchy; they are responsible for other managers & sometimes for some operating employees; they also report to more senior managers. Top Managers Managers responsible for the overall management of the organization; they establish operating policies & guide the

Functional & General Managers

Functional Manager A manger responsible for

just one organizational activity, such as finance or human resources management.

General Manager The individual responsible

for all functional activities, such as production, sales, marketing, & finance for an organization.

Management Level & Sills

Technical Skill The ability to use the

procedures, techniques, & knowledge of a specialized field.

Human Skill The ability to work with,

understand, & motivate other people as individuals or in groups.

Conceptual Skills The ability to coordinate &

integrate all of an organizations interests & activities.

Skills Needed at Different Management Levels

The Challenge of Management

1) The need for vision
2) The need for ethics 3) The need for responsiveness to Cultural

Diversity