Management

A form of work that involves coordinating an organizations human, financial, physical and information resources toward accomplishing organizational objectives. Attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. NOTE THESE CHARACTERISTICS: Goal-driven Activity is effective and efficient Uses the four managerial functions
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What is Management?
A set of activities
planning and decision making, organizing, leading, and controlling

directed at an organizations resources

human, financial, physical, and information

with the aim of achieving organizational goals in an efficient and effective manner.

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Efficiency versus Effectiveness

Efficiency:
Operating in such a way that resources are not wasted

Effectiveness:
Successful Management
Doing the right things in the right way at the right times

Source: Adapted from Van Fleet, David D., Contemporary Management, Second Edition. Copyright 1991 by Houghton Mifflin Company. Used with permission. Copyright 2005 by Houghton Mifflin Company. All rights reserved. 13

What is a Manager?
Someone whose primary responsibility is to carry out the management process. Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.

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Figure 1.1 Kinds of Managers by Level and Area

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Kinds of Managers by Level

Top Managers
The relatively small group of executives who manage the organizations overall goals, strategy, and operating policies.

Middle Managers
Largest group of managers in organizations
Implement top managements policies and plans. Supervise and coordinate lower-level managers activities.

First-Line Managers
Managers who supervise and coordinate the activities of operating employees.

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Examples of Managers by Area

Marketing Managers
Work in areas related to getting consumers and clients to buy the organizations products or services.

Financial Managers
Deal primarily with an organizations financial resources.

Operations Managers
Concerned with creating and managing the systems that create organizations products and services

Human Resource Managers

Involved in planning, recruiting and selection, training and development, designing compensation and benefit systems, formulating performance appraisal systems.

Administrative Managers
Serve as generalists in functional areas and are not associated with any particular management specialty.

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Management in Organizations

Planning and decision making Inputs from the environment Human resources Financial resources Physical resources Information resources Controlling

Organizing

Goals attained Efficiently Effectively

Leading

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The Management Process

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The Functions of Management

Planning
Setting an organizations goals and selecting a course of action to achieve them.

Organizing
Determining how activities and resources are grouped.

Leading
Getting organizational members to work together to advance the interests of the organization.

Controlling
Monitoring organizational progress towards goals.

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Planning and Organizing Involve

Planning
Environmental scanning and analysis Developing a vision of the future Setting long-term organizational objectives Developing organizational and competitive strategies

Organizing
Defining tasks and duties Grouping positions into effective structures (departments) Clarifying authority, responsibility, and reporting relationships Allocating scarce resources (financial, human, physical) Staffing positions with qualified personnel

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Leading and Controlling Involve

Leading
Effective communication Inspiring others to do their best Motivation and rewards Trust and assurance

Controlling
Clear standards Monitoring progress and results Knowing when and how to intervene Correcting deviations successfully

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Skills and the Manager

Technical Skills

Interpersonal Skills
Conceptual Skills

Fundamental Management Skills

Diagnostic Skills Communication Skills Decision-Making Skills Time-Management Skills

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Fundamental Management Skills

Technical
Skills necessary to accomplish or understand the specific kind of work being done in an organization.

Interpersonal
The ability to communicate with, understand, and motivate both individuals and groups.

Conceptual
The managers ability to think in the abstract and to see the big picture. To perceive how all the parts fit together.

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3 Primary Managerial Skills

Technical skills
FOCUS IS ON WHAT IS DONE

(KATZ)

Specialized knowledge and proficiency Analytical ability Works with things, tools and techniques

Interpersonal skills FOCUS IS ON HOW SOMETHING IS DONE

Works with and through people Effective as a group/team member Motivates, communicates, & resolves conflicts

Conceptual skills

FOCUS IS ON WHY SOMETHING IS DONE

Sees the big picture (how the parts fit together) Understands the corporation as a whole Future-orientedthinks strategically
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Fundamental Management Skills (contd)

Diagnostic
The managers ability to visualize the most appropriate response to a situation.

Communication
The managers abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others.

Decision-Making
The managers ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities.

Time-Management
The managers ability to prioritize work, to work efficiently, and to delegate appropriately.

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Management Skill Mixes at Different Organizational Levels

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Managerial Success Factors

Personal Factors
Abilities and skills Motivation Personality

Situational Factors
Nature of the work and environment Relationships with subordinates and supervisors Abilities of subordinates

Actions Taken
Appropriate for the situation?

Luck
Being in the right place at the right time?
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Business Functions
Human Resources Sales and Marketing Research and Development Production/Operations Customer Service Finance and Accounts Administration and IT

Human Resources
Recruitment and retention
Job descriptions Person Specifications

Dismissal Redundancy Motivation Professional development and training Health and safety and conditions at work Liaison with trade unions

Sales and Marketing

Market research Promotion strategies Pricing strategies Sales strategies The sales team Product advice on new product development, product improvement, extension strategies, target markets

Research and Development

New product development Product improvements Competitive advantage Value added Product testing Efficiency gains Cost savings

Finance and Accounts

Cash flow
Monitoring income/revenue Monitoring expenditure

Preparing accounts Raising finance

Shares Loans

Links with all other functional areas

Production/Operations
Acquiring resources Planning output labour, capital, land Monitoring costs Projections on future output Production methods
Batch Flow Job Cell

Efficiency

Customer Service
Monitoring distribution After-sales service Handling consumer enquiries Offering advice to consumers Dealing with customer complaints Publicity and public relations

Business Organisation
Organisation by type Global businesses complex organisation structures National organisation possibly stretches throughout the country Regional could be through a county or wider area (North West, South East, etc.) Local small organisations serving local area or community

Business Organisation
Authority the right to make decisions and carry out tasks Span of control the number of people a superior is responsible for Chain of Command the relationship between different levels of authority in the business Hierarchy shows the line management in the business and who has specific responsibilities Delegation authority to carry out actions passed from superior to subordinate Empowerment giving responsibilities to people at all levels of the business to make decisions

Administration and IT

Managing estates cleaning, health and safety, maintenance, security

Reception Clerical work reporting, recording, record keeping, communication Overview of quality control Use of IT systems

Organisation Charts
Hierarchical Structure

Managing Director

Sales Director

Marketing Director

Finance Director

Market Research

Strategy Purchasing Sales Manager Manager

Accounts Manager

Organisation Charts

Pyramidal Structure

MD Senior Management Middle Management

Workers

Organisation Charts
Centralised/Entrepreneurial

Finance

R&D MD

Production

Marketing

Sales

Organisation Charts
Collaborative

Sales

Accounts

Marketing

Production

Organisation Charts
Circular/Flat

Marketing

Sales

Finance

Production

R&D

Organisation Charts
Matrix Structure

Marketing Sales Project HR Finance Production R&D

Organisation Charts
Changes to business structures Linked to new thinking on leadership and management Less hierarchical Emphasis on communication and collaboration between sections Global businesses more complex structures

Organizations and Their Management

Hierarchical or Flat

Why do Organizations Look and Act the Way They Do? Two Identifying Characteristics Form of Organizational Reporting and Authority Relationships Decentralized or Centralized Location of Decision Rights (Power) within Organization
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Organizations and Their Management

Organizational Hierarchy measured by

Number of Levels and Ranks of Authority-delegating and

Extent of Integration of Functions and Outputs: Is

Organizations Form characterized by:

Reporting Relationships

Functional Silos : Finance, Production, etc., or by

Marketing,

Product Lines: Groceries, Clothing, etc.

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Organizations and their Management

Centralized or Decentralized?
Relative Number, Length and Complexity Paths between Where Decisions are of

Made and Where Decisions are Implemented

May be unrelated to Hierarchical Form Decentralized decision-making may be more democratic, but is it more efficient?

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Hierarchical versus Flat Organizations

Chief Executive

Tall Organization
Tall hierarchy

Flat Organization

Chief Executive

Relatively narrow span of control

Flat hierarchy

Relatively wide span of control

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