Fundamentals of Management

Managers and Management

Who Are Managers And Where Do They Work? Organization

A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizations.

Common Characteristics of Organizations Distinct purpose and goals People Systematic structure

3 characteristics

A

B

Goals

People

Structure

DeliberateStructure

DistinctPurpose

People

People Differences

Operatives People who work directly on a job or task and

have no responsibility for overseeing the work of others.

Managers Individuals in an organization who direct the

activities of others.

Identifying Managers First-line Managers

Supervisors responsible for directing the day-to-day activities of operative employees

Middle Managers Individuals at levels of management between the first-

line manager and top management Top Managers

Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members

TopManagers

Middle Managers

First-Line ManagersNonmanagerial Employees

(Operatives)

Management ???

Management The process of getting things done, effectively

and efficiently, through and with other people Efficiency

Doing the task (thing) correctly; refers to the relationship between inputs and outputs; seeks to minimize resource costs

Effectiveness Doing the right task (things) ; goal attainment

GoalAttainment

Effectiveness (Ends)Resource

Usage

Management Strives for:Low Resource Waste (high efficiency)

High Goal Attainment (high effectiveness)

Efficiency (Means)

Low Waste High Attainment

Low efficiency/high effectiveness-right goals ,poor use of resources-right product, high price

High efficiency/High effectiveness-right goals, right use of resources-right product, right price

Low efficiency/Low effectiveness-poor goals, poor use of resources-unwanted product ,high price

High efficiency/low effectiveness-poor goals, good use of resources-unwanted product

Efficiency, Effectiveness and PerformanceEFFICIENCY

EFFECTIVENESS

HIGH

LOW

LOW HIGH

Management Processes

Planning Includes defining goals, establishing strategy, and

developing plans to coordinate activities Organizing

Includes determining what tasks to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made

Management Processes (cont ’d) Leading

Includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts

Controlling The process of monitoring performance,

comparing it with goals, and correcting any significant deviations

Planning

Defining goals,establishingstrategy, anddevelopingsubplans tocoordinateactivities

Lead toOrganizing

Determiningwhat needsto be done,how it willbe done, andwho is to do it

Leading

Directing andmotivating allinvolved partiesand resolvingconflicts

Controlling

Monitoringactivitiesto ensurethat they areaccomplishedas planned

Achieving theOrganization’s

statedpurpose

The Process of Management

Planning

OrganizingControlling

Leading

Is The Manager’s Job Universal? Level in the Organization

Do managers manage differently based on where they are in the organization?

Profit versus Not-for-profit Is managing in a commercial enterprise different

than managing in a non-commercial organization? Size of Organization

Does the size of an organization affect how managers function in the organization?

Is The Manager’s Job Universal? (cont’d) Management Concepts and National Borders

Is management the same in all economic, cultural, social and political systems?

Making Decisions and Dealing with Change Do managers all make decisions and deal with

change in the same ways?

What Do Managers Do? (cont’d) Mintzberg’s Management Roles

Approach (Exhibit 1.5) Interpersonal roles

Figurehead, leader, liaison Informational roles

Monitor, disseminator, spokesperson

Decisional roles Entrepreneur, disturbance handler,

resource allocator, negotiator

Managerial Roles identified by Mintzberg

INTERPERSONAL FigureheadLeaderliaison

Set future goalsSet an exampleCo-ordinate work of dept heads

INFORMATIONAL MonitorDisseminatorSpokesperson

Changes in Environmental factorsInside organization organization’s rep

DECISIONAL EntrepreneurDisturbance HandlerResource allocatorNegotiator

Use of resourcesCorrective actions during crisis

Set budgetsAgreements with labour unions

ROLE TYPE SPECIFIC ROLE EXAMPLE

What Do Managers Do? (cont’d) Skills Approach

Technical skills Knowledge and proficiency in a specific field

Human skills The ability to work well with other people

Conceptual skills The ability to think and conceptualize about abstract and

complex situations concerning the organization

Management time spent

Top Managers

Middle Managers

First-Line Managers

Skills Needed at Different Management Levels

TopManagers

MiddleManagers

Lower-levelManagers

Importance

ConceptualSkills

HumanSkills

TechnicalSkills

Conceptual Human skills Technical

Top Managers

Middle Managers

First-Line Managers

Conceptual, Human and Technical skills needed by the three levels of Management

Specific Skills for Managers Behaviors related to a manager’s effectiveness:

Controlling the organization’s environment and its resources.

Organizing and coordinating. Handling information. Providing for growth and development. Motivating employees and handling conflicts. Strategic problem solving.