Principles of Management

Assignment No. 1

Submitted to Dr. Chowdhury Saima Ferdous

Associate Professor & Chairperson Department of International Business

University of Dhaka

Submitted by

Sabila Muntaha

ID: 801415072

Date of Submission

26 January, 2015

Contents

1. Definition of Management

1-2

2. The Functions of Management

2- 5

2.1. Planning 2-3

2.2. Organizing 3

2.3. Staffing 3-4

2.4. Leading 4

2.5. Organizing

4-5

3. Challenges of each of the Function encounters in

Bangladesh.

5-7

4. Managerial Skills at different Organizational Levels

8-12

4.1.1. Technical Skills 8

4.1.2. Interpersonal skills 8

4.1.3. Conceptual Skills 9

4.1.4. Diagnostic Skills 9

4.2.1. Tope- Level Management 9-10

4.2.2. Mid- Level Management 10-11

4.2.3. First-Level Supervisors 11

4.3. Diagram of Managerial Skills at

different Organizational Levels

12

5. Conclusion 13

1. Definition of Management

It is very difficult to give a precise definition of the term management. Different management

authors have viewed management from their own angles moreover, during the evolutionary

process of management different thinkers laid emphasis on different expects. For example, F.W.

Taylor emphasized engineering aspects, Elton Mayo laid emphasis on human relations aspects,

E.F.L, Brech, George R. Terry emphasis on, decision making aspect, Ralph Davis stresses

leadership aspect and some other like Barry Richman etc. emphasized integration or coordination

aspect.

Some Important Definition of Management

―Management is the art of getting things done through and with people in formally organized

groups‖

- Harold Koontz

―Management is a disconnect process consisting of planning organizing activating and

controlling performed to determine and accomplish the objectives by the use of people and

resources‖

- George R. Terry

―Management is the art and science of decision making and leadership‖

- Donald J. Cough

―To manage is to forecast, to plan, to organize, to command, to coordinate, and to control‖

- Henry Fayol

So we can say that management is the process of designing and maintaining an environment in

which individual, working together in groups, efficiently accomplishes selected aims. We can

expand this basic definition –

As managers, people carry out the managerial functions of planning, organizing, staffing,

leading and controlling.

Management applies to any kind of organization

It applies to managers at all organizational levels

The ultimate aim of all managers is the same- to create a surplus

Managing is concerned with productivity, which implies effectiveness and efficiency.

Late Steve Jobs, Manager at Apple Inc, Ratan Tata ( retd.) of the Tata Group, Richard Branson

of Virgin Group, Bill Ford, Jr. at Ford Motor Company are some world famous Managers. One

of the most powerful manager is Barack Obama, President of United Sates of America, The

Governor of the State of California, Jerry Brown and his predecessor are also managers. Middle

level managers and first line supervisors; however also make important contributions to the goal

of their organization. All do manage organizations. We define an organization as a group of

people working together to create a surplus. In business organization, this surplus is the profit. In

nonprofit organizations, such as charitable organizations, it may be the satisfaction of needs or

providing additional services. Universities also create surplus through the generation and

dissemination of knowledge as well as providing service to the community and society.

1. The Functions of Management

Many scholars and managers have found that the analysis of management is fascinated by a

useful and clear organization of knowledge. In studying management, therefore, it is helpful to

break I down into five managerial functions-planning, organizing, staffing, leading and

controlling around which the knowledge that underlies those functions can be organized. Thus

the concepts, principles, theories and techniques of management are grouped into these five

functions.

This framework has been used and tested for many years, although there are different ways of

organizing managerial knowledge , most text book and authors today have adopted this or

similar framework even after experimenting at times with alternative ways of structuring

knowledge.

1.1. Planning

The planning function of management controls all the planning that allows the organization to

run smoothly. Planning involves defining a goal and determining the most effective course of

action needed to reach that goal. Typically, planning involves flexibility, as the planner must

coordinate with all levels of management and leadership in the organization.

"Planning bridges the gap from where we are to where we want to go. It makes it possible

for things to occur which would not otherwise happen"

- Koontz and O'Donnel

Planning is a dynamic process, it is very essential for every organization to achieve their ultimate

goals, but, there are certain principles which are essential to be followed so as to formulate a

sound plan.

1.2. Organizing

The organizing function of leadership controls the overall structure of the company. The

organizational structure is the foundation of a company; without this structure, the day-to-day

operation of the business becomes difficult and unsuccessful. Organizing involves designating

tasks and responsibilities to employees with the specific skill sets needed to complete the tasks.

Organizing also involves developing the organizational structure and chain of command within

the company. See under in the words of Louis A.Allen, what is organizing in management.

"Organization is the process of identifying and grouping of the works to be performed,

defining and delegating responsibility and authority and establishing relationships for the

purpose of enabling people to work most efficiently".

- Louis A. Allen

Organizing can be effective only if managers follow some guiding principles in order to make

important decisions and act upon them.

1.3. Staffing

The staffing function of management controls all recruitment and personnel needs of the

organization. The main purpose of staffing is to hire the right people for the right jobs to achieve

the objectives of the organization. Staffing involves more than just recruitment; staffing also

encompasses training and development, performance appraisals, promotions and transfers.

Without the staffing function, the business would fail because the business would not be properly

staffed to meet its goals.

"Staffing is the function by which managers build an organization through the

recruitment, selection, and development of individuals as capable employees"

- McFarland

Staffing process of management assists in obtaining the right talent and also nurturing it. Staffing

principles which are universally accepted are not present

1.4. Leading

Leading involves influencing others toward the attainment of organizational objectives. Effective

leading requires the manager to motivate subordinates, communicate effectively, and effectively

use power. If managers are effective leaders, their subordinates will be enthusiastic about

exerting effort toward the attainment of organizational objectives. Leading involves motivating,

communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem

solve with employees. Studies of motivation and motivation theory provide important

information about the ways in which workers can be energized to put forth productive effort.

Studies of communication provide direction as to how managers can effectively and persuasively

communicate. Although the managers tasks is pertain to designing an internal environment for

performance within an organization, it must never be overlooked that managers must operate in

the external environment of an enterprise as well. Clearly managers cannot perform their tasks as

well unless they have an understanding of, and are responsive to the many elements of the

external environment- economic, technological, social, ecological, political and ethical factors-

that affect their areas of operation.

1.5. Controlling

The controlling function of management is useful for ensuring all other functions of the

organization are in place and are operating successfully. Controlling involves establishing

performance standards and monitoring the output of employees to ensure each employee‘s

performance meets those standards. The controlling process often leads to the identification of

situations and problems that need to be addressed by creating new performance standards. The

level of performance affects the success of all aspects of the organization. The managerial

function controlling always maximize the use of scarce resources to achieve the purposeful

behavior of employees in an organization.

"Controlling is determining what is being accomplished - that is, evaluating performance

and, if necessary, applying corrective measures so that performance takes place according

to plans".

- Terry and Franklin.

2. Challenges of each of the Function encounters in Bangladesh

Planning involves knowledge of the company‘s resources and the future objectives of the

business. Planning is deciding in advance what to do and how to do. It is one of the basic

managerial functions. Before doing something, the manager must formulate an idea of how to

work on a particular task. Thus, planning in management is closely connected with creativity and

innovation. It involves setting objectives and developing appropriate courses of action to achieve

these objectives. The major challenge manager‘s face in planning is the uncertainty. All human

beings, but it seems managers in particular, find great discomfort in uncertainty. Uncertainty in

the global economy, uncertainty in the credit markets, uncertainty in how new regulations will

affect business plan, uncertainty about what competitors are doing, and uncertainty about how

new technology will affect the business—these are just the start of a never-ending list. The

bottom line is that uncertainty leads to a short-term focus. Companies are shying away from

long-term planning in favor of short-term results, with uncertainty often the excuse. While this

might feel right, we believe that a failure to strategically plan five years into the future can end

up destroying value. The problem to be solved, therefore, is to balance the need for a more

reactive, short-term focus with the need for informed, long-term strategies. In attainment of day-

to-day goals, managers can often lose sight of the big picture. This can have serious compliance

and regulatory implications which can do permanent damage to the brand of the organization

Organizing is the process of defining and grouping activities and establishing authority

relationships among them to attain organizational objectives. The challenge manager face in

organizing is the Individual employee problems which can be personality conflicts, supervisor

issues, personal trauma, or company structure oriented. Management must learn the cause of the

problem and who or what keeps "fueling the fire." If there is no clear trigger, the answer could

fall back to insufficient or confusing communications. For example, an employee in a

decentralized organization may feel they must answer to multiple supervisors if the chain of

command is not communicated clearly. A manager will have to deal with many different ages

and personality types in both their staff and their customer base, and needs to recognize that each

have different standards and priorities that should be addressed differently in order to attain the

desired result. This is especially important if the manager is younger than the people they're

interacting with

To become effective at leading, managers must first understand their subordinates' personalities,

values, attitudes, and emotions. Personality research and studies of job attitudes provide

important information as to how managers can most effectively lead subordinates. People

management, conducting appraisals, dealing with teams, their aspirations, motivating them to do

well, knowing when to turn the pressure on and when to withdraw are some challenges of

leading .Unfortunately, the pressures of day-to-day business mean that managers have to hit the

ground running and they do not have the luxury to ease into the role. This means in many

instances, they may not get to know their team members well. This problem further gets

compounded when one is managing teams across various geographies. Many a manager face the

dilemma- If he is too friendly with his staff, he risks being seen as 'one of them' and branded soft

by the senior management. Ability to walk the fine line and keep both sides happy is a challenge.

This includes not only monitoring their performance, internet usage, and so forth, in a

disciplinarian sense, but also in making employees feel that their contributions are recognized

and valuable. The priority here is in matching recognition with compensation that is valuable to

the employee is another challenge of leading.

A key aspect of managing an adult and extension enterprise is to find the right people for the

right jobs. Much of one's success as a manager is related to appropriate human resource

planning, regardless of whether it is the hiring of a secretary or an instructor for a particular

work-shop. Staffing is that part of the process of management which is concerned with acquiring,

developing, employing, appraising, remunerating and retaining people so that right type of

people are available at right positions and at right time in the organization. In the simplest terms,

staffing in management is ‗putting people to jobs‘. The staffing function consists of several

challenges like human resource planning - how many staff resources, with what backgrounds,

and at what cost can be considered for objectives implementation? Recruitment - how does one

proceed to find the person with the appropriate mix of education, experience, human relations

skills, communications skills, and motivation? Staff selection: evaluating candidates through

application forms, curriculum vitae, and interviews and choosing the best candidate for the

specific job responsibility. While definitively unqualified applicants will always be a part of the

hiring process, applicants need to be evaluated based on what they can actually do, rather than

their resumes. This requires the consistent involvement of management as well as a priority on

hiring the right kind of person, not the right kind of resume.

In planning stage, it is decided that how the resources would be utilized but where as in the

controlling stage it is observed that whether the resources are being utilized in the same way as

planned or not. Thus, control completes the whole sequence of management process. Controlling

involves ensuring that performance does not deviate from standards. Controlling consists of three

steps, which include (1) establishing performance standards, (2) comparing actual performance

against standards, and (3) taking corrective action when necessary. Performance standards are

often stated in monetary terms such as revenue, costs, or profits but may also be stated in other

terms, such as units produced, number of defective products, or levels of quality or customer

service. The measurement of performance is one of the major challenges in controlling. It can be

done in several ways, depending on the performance standards, including financial statements,

sales reports, production results, customer satisfaction, and formal performance appraisals.

Managers at all levels engage in the managerial function of controlling to some degree. Another

challenge of the controlling is that the managerial functions of controlling sometimes get

confused with control in the behavioral or manipulative sense. This function does not imply that

managers should attempt to control or to manipulate the personalities, values, attitudes, or

emotions of their subordinates. Instead, this function of management concerns the manager‘s role

in taking necessary actions to ensure that the work-related activities of subordinates are

consistent with and contributing toward the accomplishment of organizational and departmental

objectives.

3. Managerial Skills at different Organizational Levels

There is distinction between Top-Level Manager, Mid- Level Manager and supervisors. To be

sure, a given situation may differ considerably between various levels in an organization or

between various types of enterprises. All managers carry out managerial functions. However, the

time spent for each function may differ. An approximation of the relation between Managerial

skills and different organizational levels are given below-

3.1.1. Technical skills

Technical skills are skills necessary to accomplish specific tasks within the organization.

Designing a new computer for Hewlett- Packard, developing a new formula for frozen-food

additive for Conagra, or writing a press release for Halliburton all require technical skills. Hence

these skills are generally associated with the operations employed by the organization in its

production processes. For example , Davis Packard and Bill Hewlett, founders of Hewlett-

Plackard, started out their careers as engineers. Other examples of managers with strong

technical skills include Eric Molson (CEO of Molson Coors Brewing, who began his career as a

brewmaster and Ron Meyer ( COO of Universal Studios, who began his career as a filmmaker.

The CEOs of the Big Four accounting firms also began their careers as accountants.

3.1.2. Interpersonal skills

The manager uses interpersonal skills to communicate with, understand and motivate individuals

and groups. As we have noted, managers spend a large portion of their time interacting with

others, so it is clearly important that they get along well with other people. For instance, David

Novak is CEO of YUM brands the firm that owns KFC, Pizza Hut, and Taco Bell. Novac is able

to relate employees throughout the firm. He is also known to his employees as a caring,

compassionate and an honest person. These qualities inspire others throughout the firm and

motivate them to work hard to help Novac reach the firm‘s goals.

3.1.3. Conceptual Skills

Conceptual Skills are the manager‘s ability to think in the abstract. A manager with strong

conceptual skills is able to see the ―big picture‖ that is she or he can see opportunity where others

see roadblocks or problems. For example, after Steve Woznaik and Steve Jobs built a small

computer of their own design in a garage. Woznaik essentially saw a new toy that could be

tinkered with. Jobs however saw far more and convinced his partner that they should start a

company to make and sell the computers. The result is Apple Computer. In sub sequent years

Jobs also used his conceptual skills to identify the potential in digital media technologies, leading

to the introduction of such products as the iPod, the iPhone, iTunes and the iPad as well as his

overseeing the creation of Pixar Animation studios. When he died in 2011 Jobs was hailed as one

of the most innovative managers of all time.

3.1.4. Diagnostic Skills

Diagnostic Skills most successful managers also bring diagnostic skills to the organization.

Diagnostic skills allow managers to better understand cause and effect and effect relationships

and to recognize the optimal solutions to problems. For instance, when Ed Whitecare was

chairman and CEO of SBC communications he recognized that, through his firm was performing

well in the consumer market, it lacked strong brand identification in the business environment.

He first carefully identified and then implemented an action to remedy the firm‘s shortcoming –

SBC would buy AT&T (for 16 billion) acquired in the process the very name recognition that his

company needed. After the acquisition was completed, the firm changed its corporate name from

SBC to AT&T. And it was Whitecare‘s diagnostic skills that pulled it all together. Indeed, his

legacy of strong diagnostic skills led to his being asked to lead the corporate turnaround at

General Motors in 2009.

4.2.1. Top-Level Management

Top-level managers include boards of directors, presidents, vice-presidents, CEOs, general

managers, and senior managers, etc. Top-level managers are responsible for controlling and

overseeing the entire organization. Rather than direct the day-to-day activities of the firm, they

develop goals, strategic plans, and company policies, as well as make decisions about the

direction of the business. In addition, top-level managers play a major role in the mobilization of

outside resources. They are accountable to the shareholders and general public, and they are also

responsible for framing policies for the business. Significant business decisions are made at this

level. In general, this level of management is concerned with administrative functions that affect

all aspects of the organization. Critical job skills of today's managers include the ability to work

under pressure, to lead people, to manage conflict, to solve crises, to motivate people, and to

intuit answers. Many people work under top-level managers' supervision and look to them for

guidance, so these are the skills which are needed to perform the various operations of the

business. Managerial skills include conceptual skills, interpersonal skills, and technical skills.

These three managerial skills are used by different managers to various degrees. Successful top-

level managers usually display more conceptual than technical skill. They have to think

continuously about the company's goals and objectives and how they can be effectively

communicated to employees.

4.2.2. Mid-Level Management

Most organizations have three management levels: first-level, middle-level, and top-level

managers. These managers are classified according to a hierarchy of authority and perform

different tasks. In many organizations, the number of managers in each level gives the

organization a pyramid structure. Middle management is the intermediate leadership level of a

hierarchical organization, being subordinate to the senior management but above the lowest

levels of operational staff. For example, operational supervisors may be considered middle

management; they may also be categorized as non-management staff, depending upon the policy

of the particular organization. Middle-level managers can include general managers, branch

managers, and department managers. They are accountable to the top-level management for their

department's function, and they devote more time to organizational and directional functions than

upper management. A middle manager's role may emphasize:

Executing organizational plans in conformance with the company's policies and the

objectives of the top management;

Defining and discussing information and policies from top management to lower

management;

Most importantly, inspiring and providing guidance to lower-level managers to assist

them in performance improvement and accomplishment of business objectives.

Middle managers may also communicate upward by offering suggestions and feedback to top

managers. Because middle managers are more involved in the day-to-day workings of a

company, they can provide valuable information to top managers that will help them improve the

organization's performance using a broader, more strategic view. Because middle managers work

with both top-level managers and first-level managers, middle managers tend to have excellent

interpersonal skills relating to communication, motivation, and mentoring. Leadership skills are

also important in delegating tasks to first-level managers.

4.2.3. First – Level Supervisors

Most organizations have three management levels: first-level, middle-level, and top-level

managers. These managers are classified according to a hierarchy of authority and perform

different tasks. Frontline managers belong to the first level of management. Frontline managers

are managers who are responsible for a work group to a higher level of management. They are

normally in the lower layers of the management hierarchy, and the employees who report to

them do not themselves have any managerial or supervisory responsibility. Frontline

management is the level of management that oversees a company's primary production activities.

Frontline managers provide critical value to a company's success because they must motivate

employees who perform essential production duties. They also must generate efficient

productivity and control to minimize costs. Frontline managers are most often involved in

operations (as opposed to marketing, accounting, finance, etc.).Frontline managers also serve as

role models for employees in providing basic supervision, motivation, career planning, and

performance feedback. Managers have to deal with problems which require special skills to

solve. Frontline managers who are responsible for dealing directly with the operating personnel

need very high interpersonal skills to motivate, supervise, and guide their subordinates, as well

as communicate with managers of higher levels. Frontline managers also need technical skills

since they are dealing with job-related tasks that help achieve the goals and objectives of the

organization.

4.3. Diagram of Managerial Skills at different Organizational Levels

Figure – 1: Managerial Skills at different Organizational Levels

Of course, not every manager has an equal measure of these four basic types of skills. Nor is

equal measure critical. As shown in Figure -1 for example, the optimal skills mix tends to vary

with the manager‘s level in the organization. First line managers generally need to depend more

on their technical and interpersonal skills and less on their conceptual and diagnostic skills. Top

managers tend to exhibit the reverse combination – more emphasis on conceptual and diagnostic

skills and less dependence on technical and interpersonal skills. Middle managers require a more

even distribution of skills. Similarly, the mix of needed skills can vary depending on economic

circumstances. One recent survey suggested that during very tough economic times, the most

important skill for a CEO is to be an effective communicator and motivator, be decisive, and be a

visionary.

4. Conclusion

A business cannot survive without management because management is its means of support.

Management is concerned with acquiring maximum prosperity with minimum efforts.

Management is essential wherever group efforts are required to be directed towards

achievements of common goals. In this management conscious age, the significance of

management can hardly be over emphasized. It is said that anything minus management amounts

to nothing. There is no more important area of human activity than management since its task is

that of getting things done through others. Some underestimate the importance of management in

business but the latest researches have shown that it is certainly not the case. The input of the

labor, capital and raw materials can never become production without the catalyst of

management. Management is a dynamic life-giving element in an organization. In its absence,

the resources of production remain underutilized and can never become production. In fact,

without efficient management, no country can become a nation. Business is basically a group

activity and management plays an important role in making it more effective. The group as a

whole cannot realize its objectives unless and until there is mutual cooperation and coordination

among the members of the groups. Management creates teamwork and team spirit in an

organization by developing a sound organizational structure. It brings the human and material

resources together and motivates the people for the achievement of goals.

The available resources of production are put to use in such a way that all sort of wastages and

inefficiencies are reduced to a minimum. If the managers in any business are not considerate and

good at their job, nothing worthwhile can be expected of the subordinates. The motivation level

of the employees is directly related to good management. Management creates and maintains an

environment conducive to higher efficiency and performance. A business enterprise operates in a

constantly changing environment. Changes in the business environment create risk and also

provide opportunities for growth. A conducive and encouraging environment is indispensable for

any business and sound management makes it possible easily.