Management : Introduction

Management is practiced by individuals in organizations ( formal and informal organization )

What is organization?

• A social unit in which two or more people interact to achieve a common goal or a set of goals

 Why do we need an organization?

• To achieve objectives
• To preserve knowledge
• To serve society
• To provide careers ( jobs )

What is a manager?

• A person in the organization who is responsible for the work or performance of other people

Definition of management

• The art of getting things done through people ( Mary Parker Follet )
• The process of reaching organizational goals by working with and through people and other organizational resources ( Certo )
• The process of planning, organizing, leading and controlling the resources and activities to achieve organizational goals ( Stoner )

Planning, organizing, leading and controlling ( POLC ) are called the process / functions of management. They are interrelated which means one function cannot exist without the other

Measuring managerial performance

Two criteria are used to measure managerial performance:

Effectiveness

• Doing the right thing - taking the right goals or actions

 Efficiency

• Doing the things right ( that is the ability to get things done correctly )
• Using the fewest inputs to generate output

Effectiveness and efficiency - these two criteria are used to measure managerial performance

For successful performance - both effectiveness and efficiency are important. However, effectiveness is the most important measure ( Peter Drucker )

Process / Functions of management

 

Planning

• The process of establishing goals and the actions ( strategies ) to achieve those goals

Organizing

• Determine what tasks to be done, who is to do them, who reports to whom and who make decisions
• The process of allocating work, authority, responsibility and resources among the organization's members

 Leading

• The process of motivating, directing, influencing employees to perform tasks

Controlling

• The process of monitoring performance of the organization, identifying deviations and taking corrective actions when necessary

Managerial roles

Henry Mintzberg said that all managers have similar roles ( from his survey )

I) Interpersonal roles:

Involves managing relationship with organizational member and people outside the organization

• Figurehead
• Leaders
• Liaison

II) Informational roles:

Involves gathering and disseminating information to people inside and outside the organization

• Monitor
• Disseminator
• Spokesperson

III) Decisional roles:

Involves processing information and making decisions

• Entrepreneur
• Disturbance handler
• Resource allocator
• Negotiator

Type of managers

 

  

Managers can be classified in two ways:

• By their levels in the organization
• By the functions they perform

 

 

 

 

Management levels:

I) Top managers

• Responsible for the overall management of the organizations
• Establish objectives, policy and strategy that affect the whole organizations
• Make long-term decisions / plans

II) Middle managers

• Responsible implementing the organization's objectives and policies
• Direct the activities of first line managers
• May include more than one level in the organization

III) First-line managers / lower level managers

• Direct the operating employees and they do not direct other managers
• Responsible to carry out the plans made by higher and middle level managers
• Make short-term operating decisions
• Examples: Supervisor, Foreman, Office Manager, Chief Clerk in a large office

Range of activities:

I) Functional manager

• Responsible for only one function / activity
• Examples: Human Resources Manager, Marketing Manager, Finance Manager

II) General manager

• Responsible for many functions / activities ( marketing, insurance, production, insurance, promotion, distribution )
• Examples : Branch Manager, Plant Manager, President of a company, General Manager

Managerial skills

Robert L. Kartz identified three (3) basic skills

I) Technical skills

• The ability to use techniques, producers and knowledge of a specialized field

II) Human skills

• The ability to work effectively with other people
• The ability to direct, lead, motivate, communicate and inspire enthusiasm in people

III) Conceptual skills

• The ability to see the organization as a whole and understand the relationships among it's subunits
• The ability to analyze, think about complex situations, use judgements and see future opportunities

Managerial skill mix:

Top manager - more in conceptual skill, moderate in human skill and lower in technical skill
Middle manager - moderate in conceptual skill, human skill and technical skill
First-line manager - more in technical skill, moderate in human skill and lower in conceptual skill