ManagementManagement

Managers and ManagingManagers and Managing

Management

Management is a process by which the common goals are reached through cooperative endeavor and

actions.

It is simply the process of Decision-Making and Control over the actions of Human Beings for the

expressed purpose of attaining pre-determined goals.

Management Key ConceptsManagement Key Concepts Organizations: People working together and

coordinating their actions to achieve specific goals.

Goal: A desired future condition that the organization seeks to achieve.

Management: The process of using organizational resources to achieve the organization’s goals by... Planning, Organizing, Leading, and Controlling

3 Common characteristics of an organization.

Distinct Purpose

Deliberate Structure

People

Additional Key ConceptsAdditional Key ConceptsResources are organizational assets and

include:5 M’s of Management Man Machinery, Materials, Method Money

Managers are the people responsible for supervising the use of an organization’s resources to meet its goals.

Management is not a natural system / artificial creation

Planning Organizing Leading Directing Controlling

Financial Resources

Human Resources

Physical Resources

Information

Achievement of goals

Characteristics of Management

It is an organized activity. Existence of Objectives . Relationship among Resources. Working with and Through people. Decision-Making.

Nature Of Management

It is Multidisciplinary. Is Dynamic in Nature. Relative not absolute principles. Management is science or Art.(GD) Universality of Management.

Science Or Art

Science : Is a systematized body of knowledge pertaining to a particular field of enquiry.It contains concepts theories , experimentation and principles which are true and universal.

Art : Is based on Judgment, feeling , intuition, . In art knowledge is put to creative use.And also involves the application of skills.

Management as Science Science is a body of knowledge contains concepts , theories,

experimentation and principles which are true and Universal.Same is with Management.

E.g. Organization Structure uses Unity of command, Span of control.

Any discipline cannot be called science unless it has generalizations and principles which are true and universal.

Management involves Decision- Making which is based on logic and reasoning.

Stress on collection of facts and data, their systematic analysis and arriving at conclusions in a scientific manner.

Management as ArtAs an art , Management calls for use of Skills, Intuition and

judgment, and continuous practice of theories .Peter.F.Drucker Said the Functions of management are to

manage the business , managers , workers and the work.Where ever we consider people,We cannot stop the involvement of emotions and subjectivity.

Principles of science are exact,like of physics and biological science.The principles of management are not exact and are flexible depending upon the situation.

Administration Vs ManagementA terminological Conflict

Basis Of Difference

Administration Management

1. Level in Organization

2. Major Focus

3. Nature of Functions

4. Scope Of Functions

5. Qualities Required

Top Level

Policy formulation/Objective determination

Determinative

Broad and Conceptual

Administrative

Middle/lower level

Policy Execution for objective achievement

Executive

Narrow and Operational

Technical

Organizational PerformanceOrganizational PerformanceMeasures how efficiently and effectively managers use resources to satisfy

customers and achieve goals.

Efficiency: A measure of how well resources are used to achieve a goal.Refers to Cost Benefit rate incurred in pursuit of achieving the organizational goals.

Managers who are able to minimize the cost of resources achieve goals and are acting efficiently.

Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved.

Organizations are more effective when managers choose the correct goals in tandem with the changing environment and then achieve them.

Effectiveness Vs Efficiency

Peter Drucker offers a helpful distinction.He says managers typically either “Do things right” or Do the right things”

Doing things right means Efficiency- Getting the most from the limited resources.

Doing the right things means effectiveness-Setting the right goals and objectives and then making sure they’re accomplished.

Efficiency (Means) Effectiveness (Ends)

Low Waste High Attainment

Management strives for :Low Resource Waste (High Efficiency)

High Goal Attainment (High Effectiveness)

Resource Usage Goal Attainment

Efficiency Vs Effectiveness

Four Functions of ManagementFour Functions of Management

PlanningPlanningChoose Choose GoalsGoals

OrganizingOrganizingWorking Working togethertogether

LeadingLeading Coordinate

ControllingControllingMonitor & measureMonitor & measure

What Managers Do?

Managerial SkillsManagerial SkillsThere are three skill sets that managers need to perform effectively.

1. Conceptual skills: the ability to analyze and see the whole picture, To recognize significant elements and to integrate these elements.

2. Human skills: the ability to work with, understand, alter, lead, and control people’s behavior to accomplish organizational objectives

3. Technical skills: the job-specific knowledge required to perform a task. The ability to use procedures, techniques and knowledge of a specialized field.

All three skills are enhanced through formal training, reading, and practice.

Conceptual Skills Conceptual Skills

₪ Using information to solve business problems

₪ Identifying of opportunities for innovation

₪ Recognizing problem areas and implementing solutions

₪ Selecting critical information from masses of data

₪ Understanding of business uses of technology

₪ Understanding of organization’s business model

Skills Needed at different levels of Management

Skills Needed at different levels of Management

Skill Type Needed by Manager LevelSkill Type Needed by Manager Level

TopManagers

MiddleManagers

LineManagers

Conceptual Human Technical

Management Roles

Role is defined as the pattern of Behavior which is defined for different positions. It refers to the expected behavior of the occupant of a position.

Managerial RolesManagerial RolesDescribed by Mintzberg.

A role is a set of specific tasks a person performs because of the position they hold.

There are 3 broad role categories:1. Interpersonal

2. Informational

3. Decisional

FORMAL AUTHORITY AND STATUS + PERSONAL SKILLS AND CHARACTERISTICS

INTERPERSONAL ROLES

Figure Head

Leader

Liaison

INFORMATIONAL ROLES

Monitor

Disseminator

Spokesperson

DECISIONAL ROLES

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

Interpersonal RolesInterpersonal Roles

Roles managers assume to coordinate and interact with employees and outsiders and provide direction to the organization. Figurehead role: symbolizes the organization and

what it is trying to achieve. Leader role: train, counsel, mentor and encourage

high employee performance. Liaison role: link and coordinate people inside and

outside the organization to help achieve goals.

Informational RolesInformational RolesAssociated with the tasks needed to obtain and

transmit information for management of the organization. Monitor role: Collects and analyzes information from

both the internal and external environment. Disseminator role: manager transmits information to

influence attitudes and behavior of employees. Spokesperson role: use of information to positively

influence the way people in and out of the organization respond to it.

Decisional RolesDecisional RolesAssociated with the methods managers use to plan strategy and utilize resources to achieve goals. Entrepreneur role: deciding upon new projects or

programs to initiate and invest. Risk Taking. Disturbance handler role: assume responsibility for

handling an unexpected event or crisis. Resource allocator role: assign resources between

functions and divisions, set budgets of lower managers.

Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or shareholders.

Reconciling Function and Role Approach of a manager’s Job

Planning

Organizing

Staffing

Directing

Controlling

Interpersonal Role

Informational Role

Decisional Role

Management LevelsManagement LevelsOrganizations often have 3 levels of managers:

First-line Managers: responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service.

Middle Managers: Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals.

Top Managers: Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers.

Top Top ManagersManagers

Middle Middle ManagersManagers

Non-managementNon-management

Three Levels of ManagementThree Levels of Management

Front Line ManagersFront Line Managers

Representation of ManagementRepresentation of ManagementM A N

A G E

M E N

T

The Leader , the fore most variable of Managerial Effectiveness

The Leader , the fore most variable of Managerial Effectiveness

Age symbolizes Wisdom-The Intellectual capacity and Maturity-qualities of Head & Heart, What distinguishes

a MAN (Leader) from a Group is his “AGE”

Age symbolizes Wisdom-The Intellectual capacity and Maturity-qualities of Head & Heart, What distinguishes

a MAN (Leader) from a Group is his “AGE”

The Group of People who work for the Leader The Group of People who work for the Leader

Technology i.e KNOW - HOWTechnology i.e KNOW - HOW