The concept of Managementauthor

PhD & chief of Department

Economy and Industrial

Management

Rafael Ciloci

The etymology of word - Management manus(Latin)- hand

manege( French)- place of horse training

,,The Principles of Scientific Management’’

Taylor, 1911.

Oxford dictionary:

1.The process of dealing with or controlling

things or people

2.The people managing a company or

organization

3. the responsibility for and control of a

company or organization

The definition of Management

Art & knowledge of leading

Administrative unity

Governing body

Different definitions for: HRM, Industrial

Management, Operational Management,

SME Management, NGO Management,

Educational Management, Environmental

management, Financial Management,

Strategic Management etc.

The definition of Management

Larry Smeltzer ,, Management Communication a

Strategic Approach’’- Communication is the base of

Management ( 75 % of the manager’s time)

J. Bower professor of Harvard Business School ,, The

Craft of General Management’’:

1. allocation of resources

2. staff development

3. development of organizational structure

4. internal environment

5. operational activity

6. strategy

Planning Organizing Staffing Coordination Controlling

People

Materials

Money

Information

Effectively & Efficiently goals

Goals

Profit Levels or Minimum cost levels

Maintenance or growth of financial strength

Quality standards

Consumer needs

Share of Market

Societal concerns etc.

The Management process

Management process

- Dynamism

- Continuous

- Stability

- Oriented to result

1. Management- science

2.Management- activity & administration

N 2 Manager & his role Manager is a person involved in the administration of an

organization by using and combining human resourses, financial

resourses, material & imformational resourses for achieving some

specific goals.

Manager is defined by 3 issues:

administration- control & ruling of organization

organization- group of people organized for achieving some results

authority- right to use power

manager system organization

Subject of

administration

Object of

administration

Levels of Management

Non Management Employees

Styles of a manager

Autocracy- take own decisions

Liberal- consulting about all questions

Democracy- taking into account opinion of personnel

(majority)

Methods Autocracy Liberal Democracy

of Management

Economical ++ ++ ++

Organizational +++ ++ +

Social & Psychology + ++ +++

Managers oriented to relations or results

Conceptual

skills

Human resource

skills

Technical skills

Middle Level

First Line Supervisors

Top Level

Skills of a manager

Horizontal division of Manager

Production

Research & Development

Human Resources Management

Financial

Commercial & Marketing

Formal and Informal Managers

Formal authority is granted based on the

person's position and according to the

organizational hierarchy followed

Informal authority have to gain by respect

through proven skills and leadership

N 3-4 The Enterprise and external

environment

The entrprise - group of people organized according some

economical, technological, managerial & legal

requirements for performing complex process of work

using some resources in order to produce goods or

services.

Analysis of internal environment:

- internal opportunity

- clarify goals

- Social conditions for personnel

Features of internal environment

Complex system ( HR, financial resources,

material & informational resources)

Open system (input, output)

Technical system

Socio-economical system (human being is most

important resource for enterprise)

Organic system

External Environment

Direct factors:

Clients

Suppliers

Competitors

Trade union

Bank

External Environment

Indirect factors:

Political & legal system

Economical system

Socio-cultural

Technological

Climate

Strengths: are characteristics of the business or

project that give it an advantage over others

Weaknesses: are characteristics that place the

business or project at a disadvantage relative to

others

Opportunities: elements in the environment that

the business or project could exploit to its

advantage

Threats: elements in the environment that could

cause trouble for the business or project.

SWOT :

SWOT Analysis is a planning method used to evaluate

the Strengths, Weaknesses, Opportunities, and Threats

involved in a project or in a business.

It involves specifying the objective of the business or

project and identifying the internal and external factors

that are favorable and unfavorable to achieving that

objective .

Creative use of SWOT

How can we use and capitalize on each

Strength?

How can we improve each Weakness?

How can we exploit and benefit from

each Opportunity?

How can we mitigate each Threat ?

Environmental Scan

Internal Analysis External Analysis

Strengths Weaknesses Opportunities Threats

SWOT Matrix

SWOT analysis framework

SWOT example

Strengths :

Strong brand name

Good reputation among customers

Exclusive access to material resources

Favorable access to distribution networks

Weakness:

A weak brand name

Poor reputation among customers

High cost structure

Lack of access to material resources

Opportunities:

An unfulfilled customer need

Arrival of new technologies

Loosening of regulations

Removal of international trade barriers

Threats:

Shift in consumer tastes away from the

firm’s products

Emergence of substitute products

New regulations

Increased trade barriers

N 5-6 Functions of Management

1. Planning

2. Organizing

3. Staffing

4. Coordinating

5. Controlling

Planning

Analyzing future process and phenomenon,

their impact on the organization, elaboration of

actions and determining needed resources.

Forecast ( 3-5 years period) – exploration,

fundamental objectives & resources

Plan- ( 1 month- 3 years period)- 1 month plan

is better defined & is more specific

Program - ( 1hour - 1 month period) – very

specific, detailed, with certainty & obligatory to

achieve.

Planning

Analyzing the activity of organization

Analyzing the external factors of

organization

Setting the schedule

Identification of resources

Plan development

Control of results

Organizing

Relating people and things to each other in such a way

that they are combined into a unit capable of being

directed toward the company’s objectives.

Differentiation means that the organization is

composed of units that work on specialized tasks using

different work methods and requiring employees with

unique competencies.

Integration means that the various units must be put

back together so that workis coordinated.

Organizing

Centralization- decision authority is located near the top of the

organization.

Decentralization- decision authority is pushed down the chain of

command to lower levels.

FactorsThat Influence Centralization /Decentralization

Amount of change and uncertainty

Availability of competent managers

Corporate culture

Geographical dispersion & Size of organization

Efficiency of communication and control systems.

Cost and risk of failure

Organizing

Organizing is determined by:

Division of labor

Delegation of authority

Establishing of organizational structure

(configuration of interpersonal and

authority relationships within a work unit)

Departmentalization( R & D, Production,

HR, Commercial-Marketing, Financial)

Organizing

Organizing of departments

Role & position of department

Establishing relations between departments

Establishing purposes, tasks & authority of every

position.

Establishing relations between positions.

Staffing

Recruiting

Selecting

Hiring

Training

Motivating

Motivation

Motivation is a complex activities that

determine personnel to achieve planned

objectives.

Correlation between personal interest &

assigned tasks.

Positive motivation

Negative motivation

Diversity of work, training, opportunity for the

manifestation of initiatives, increasing

responsibility, delegation, self control.

Motivation

McGregor’s Theory X & Theory Y

Theory X manager believes that people need

to be controlled & coerced

Theory Y managers believes that people are

willing to work, are creative & independent &

self directed when motivated properly.

Motivation

Maslow’s Hierarchy of Needs

5 levels- physiological, security, social, esteem,

self- actualization

Each level must be substantially satisfied before

moving to the next level

Refinements of Maslow’s theory today include a

recognition that individuals could be on more

than one level at a time and could move up and

down the hierarchy.

Maslow’s Hierarchy

Motivation

Herzberg’s Motivation- Hygiene Theory

Hygiene factors are extrinsic to the work (work

environment, relationship with supervisor & salary). If

absent, result is dissatisfaction, if present, result is

neutrality.

Motivator factors are intrinsic to the work itself (

achievement, recognition, nature of work, responsibility)

If absent, effect is neutral, if present, result is motivation.

Factor Affecting Delegation

Love for Authority (Boss)

Fear of losing position (Boss)

Lack of Trust (Boss)

Fear of Criticisms (Both)

Low Self confidence (Subordinate)

Absence of rewards (Subordinate)

Coordination

It is the act of assembling and synchronising

people and activity so they can act in harmony

to achieve the organisation goals.

Guidance of resources in a way to be available

on right time, required amount & quality for

achieving goals of organization.

Important fast communication flow, without

turbulence of message

Coordination

Two-way communication

Multilateral communication

Forms of coordonation:

-direct

-instructions

-procedures

-reports

- committee

Control

Controlling is the process of comparing

results obtained to objectives and taking

corrective actions when deviations occur.

It involves three steps:

· Establishing standards

· Measuring performance and comparing

actual results with standards

· Correcting deviation

Control

Preventive control (before working

process) raw material, macninery etc.

Current control ( during work process )

determine shortcomings, costly.

Final control ( at the end of working

process ) to stop defect products on the

market

Control

Common reason for controlling are to:

achieve planned performance and

results

obtain required quality in production

measure employee performance

protect the organization assets from

misuse.

Control

Control features:

Flexibility

Clear

Low cost