Management

Introduction to Management and Organizations

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.

EXHIBIT 12

Organizational Levels

Identifying Managers- Levels

First-line Managers
Supervisors responsible for directing the day-today 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

Why Study Management?

We all have a vested interest in improving the way organizations are managed.
Better organizations are, in part, the result of good management.

You will eventually either manage or be managed.

Gaining an understanding of the management process provides the foundation for developing management skills and insight into the behavior of individuals and the organizations.

How Do We Define Management?

Management The process of getting things done, effectively and efficiently, through and with other people Effectiveness Doing the right things; goal attainment Management need to be effective Doing those work that helps organisation attains its goal like meeting customer demands effectivenes is concerned with ends Efficiency Doing the thing correctly using optimum resources; getting the most of output from least of Input; seeks to minimize resource costs It is concerned with means Hero Honda Plant uses efficient techniques like CAD/CAM ,robotics which has led to improved labour productivity etc

Exhibit 13Effectiveness and Efficiency in Management

Nature
Management is universal- Management is required in every activity. every organisation social,educational,business or religious. Management is goal oriented i.e to achieve objectives like customer satisfaction,earning profit etc Management is multi disciplinary- It is derived from sociology ,economics, pychology,maths etc Management is a social process as it is concerned with interpersonal relations Management is continuous- it operates as long as there is an activity for achievement of goals.Its functions are repeated again and again Management is situational- no one best way of doing things Management is unifying force- coordinates individual efforts into team Management is science as well as arts- Management has body of knowledge in the form of concepts,theories ( Science) and the skills required by manager can be classified under arts 19

Management as art and science

Management as Arts Application of personal skills-Manager applies his skills and knowledge to coordinate activities of people towards specific goal Result orientation- Management seek result in the form of profits,market share etc Creativity- Management brings different solutions for different situations,converts resources into output Personalised- Every manager adopts his own style & approach of dealing people and situations Continuous Practice- Management requires continuous practice to be a master
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 Management as Science Systematised body of knowledge In management principles and theories are available for every area e.g fayols principles Principle and theories developed through continuous observation- scientific theory ,classical theory is developed through continuous observation Principles have universal applicability Principle,theories can be taught in classroom-

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Management as profession
Essential features of profession are Presence of Organised body of knowledge- Present in management also in the form of theories and principles Learning and experience- Even in management knowledge is transferred through research and practice Entry restricted by qualification- In management no qualification laid down to be a manager Recognised national body- in management it is AIMA Ethical code of conduct- code of professional ethics not legally binding So management is not a full fledged profession 112

Importance of Management
Optimum use of resources- elimination of waste Effective leadership and motivation Establishes sound industrial relations- b/w employees of different backgrounds Achievement of goals- Management determines goals of the organisation ,communicates these goals to employees and direct the activities towards their achievement Change and growth-helps predict what is going to be in future which will influence and takes steps to addresss those changes to grow. Improves standard of living- improves national income ,reduces cost of production and making things affordable to the society
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Management vs Administration
Americans- Administration is above management.Administation is top level thinking function whereas management is middle or lower level execution function. Europeans- Just opposite view.Administration is part of management .Management is top level thinking function whereas administration is execution function Fayol ,koontz and others consider

Distinction between Administration and Management Point of distinction Administration Management

Nature
Scope

Thinking function (what is to be done and when).

Determines broad objectives and policies. Top level function. Planning and control Conceptual and human skills. Owners who invest capital and receive profits. Mostly in government, military, educational, social and cultural organisations.

Doing function (who should do it and how).

Implements plans and achieves goals through people. Middle and lower level function. Directing and organising Technical and human skills. Paid individuals who work for remuneration. Mostly in business organisations.

Level Main Function Skills needed Represents Usage

Functions Managers Perform

Planning
Includes defining goals, establishing strategy,forecasting, developing plans to coordinate activities and Budgeting

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

 Leading
Includes motivating employees, directing & guiding 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

Coordination-essence of managing

Coordination is orderly arrangement of group efforts so that they are unified, to achieve organisational goals It is all inclusive function of management whereby management seeks to achieve coordination by performing functions like planning,organising,directing and controlling Coordination through planning- Planning leads to formulation of policies ,procedures,budgets which are also used for coordination. Coordination through Organising- Coordinated effort is required to assign activities to right people.

 Coordination through directing- Directing functions like supervision,motivation,leadership & communication leads to unity of action .Coordination is also achieved through supervision Coordination through controlling- Controlling involves comparison with standards and taking corrective action ,the purpose is to achieve coordination.

Significance of coordination
Proper utilisation of Human resources- coordination integrates activities of HR thus ensures full utilisation of their services. Improved results- Coordination removes duplicacy of tasks so saves time and energy cost. Better effeciency- Coordination helps in avoiding wastage of resource ,delays in output thus improve effeciency of organisation Meeting environmental challenges- coordination helps in meeting the ever changing PEST. Improving Employee Morale- Coordination leads to proper utilisation of HR,thus creating a satisfied employee

Techniques of Coordination
By clearly defining goals to all employees Clearly defining roles and responsibility to reduce conflicts Laying policies and procedures to produce unified effort By encouraging team work and cooperation Effective Communication in the form of personal contacts or other reliable sources for better understanding .

MINTZBERG Roles of Manager

Managers fill many roles as they carry out the management functions. These roles can be grouped into three categories: Interpersonal roles Figurehead- Ceremonial duties like attending official functions Liaison- contacting suppliers and other groups Leader motivating employess to achieve goals Informational roles Monitor monitor activity,gathers info, Disseminator- transmitting information Spokesman informing co. policy on customers,competition Decisional roles Entrepreneur- finding innovative ways of doing biz,new tech etc Disturbance Handler- resolving problems of employees Resource Allocator Negotiator- negotiation in resources ,purchases etc

 Skills Managers Need

Technical skills
Knowledge and proficiency in a specific field Managers need these skills to guide and train employees

Human skills
The ability to work well with other people They provide sensitivity to needs and motivation of others.

Conceptual skills
The ability to think and conceptualize about abstract and complex situations concerning the organization 123 It means the ability to see organisation as a whole and

Skills Needed at Different Management Levels

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Qualities of Managers

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Planning skills

Organising Skills

Leading Skills

Controlling Skills

Ability to think ahead Ability to forecast future trends. Ability to state organisational objectives clearly and precisely. Ability to make choices that help in realising predetermined goals. Ability to set performance standards for measuring and implementing the plans.

Ability to analyse and describe various organisational jobs. Ability to select, train, develop and maintain people in various jobs.

Ability to see the big picture. Ability to communicate ideas effectively. Ability to inspire people to do better. Ability to inculcate a sense of collectivism in the employees and forcing them to work as a team. Ability to assess the situation and initiate the needed behaviour in an appropriate manner.

Ability to keep the activities on the desired paths. Ability to initiate corrective steps at the right time.

Ability to define working relationships and authority-flow properly.

Ability to get along with changing situations.

Ability to ensure control measures without hurting the feelings of employees in a negative manner.