MANAGEMENT FUNDAMENTALS

EMBA- 505

11/14/09 S. M. Towhidur Rahman 1

Course Content & Guidelines
 Management content.doc

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Organization
 Organization: A group of people working
together in a structured and coordinated
fashion to achieve a set of goals (profit,
discovery of knowledge, social satisfaction).

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Management
 Management:
 Knowing exactly what you want (workers) to

do, and then seeing that they do it in the

best and cheapest way. (Frederick Taylor)
 Management is essentially an act of getting

things done through the efforts of other

people. (L. Appley)
 Management is what a manager does. ( L.

A. Allen)

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Continued…
 Management: A set of activities (including
planning and decision making, organizing,
leading, and controlling) directed at an
organization’s resources (human, financial,
physical, and information), with the aim of
achieving organizational goals in an efficient
and effective manner

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 Basic Purpose of Management

EFFICIENTLY
Using resources wisely and
in a cost-effective way
(Example: Toyota produces high quality product at relatively
low costs is efficient)

And

EFFECTIVELY
Making the right decisions and
successfully implementing them
(Example: Toyota Produces stylish and designed cars that inspire
consumer confidence)

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Management in Organization

Planning
and decision Organizing
making
Inputs from the environment
• Human resources Goals attained
• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources

Controlling Leading

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Manager
 Manager is
someone whose
primary
responsibility is to
carry out the
management
process.

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 The Management Process

Planning and Organizing

Decision Making
Setting the organiza- Determining how
tion ’s goals and best to group
deciding how best activities and
to achieve them resources

Controlling Leading
Monitoring Motivating members
and correcting of the organization
ongoing activities to work in the best
to facilitate goal interests of the
attainment organization

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Continued…
 Planning: setting an organization’s goals and
deciding how best to achieve them.
 Decision making: part of the planning process
that involves selecting a course of action from a
set of alternatives
 Setting an organization’s goals and selecting a course
of action from a set of alternatives. Decision making is
the part of planning.
 Serving as guides for future activities
 Helps managers know how to allocate their time and
resources

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Continued…
 Organizing: grouping activities and resources
in a logical fashion
 Determining how activities and resources are
grouped.
 Job design, departmentalization, authority, line and
staff role
 Leading: the set of processes used to get
members of the organization to work together
to further the interest of the organization.
 Understanding basic individual and interpersonal
process

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Continued…
 Controlling: Monitoring organizational
progress toward goal attainment.
 setting standard, evaluating performance and making
corrections in case of deviations

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Kinds of Managers by Level and Area
Levels of Management
Top managers

Middle managers

First-line managers

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Kinds of Managers by level
 Top Managers
 The relatively small group of executives who manage the
organization’s overall goals, strategy, and operating
policies.
 Middle Managers
 Largest group of managers in organizations who are
primarily responsible for implementing the policies and
plans of top managers. They supervise and coordinate the
activities of lower-level managers.
 First-Line Managers
 Managers who supervise and coordinate the activities of
operating employees.

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Kinds of Managers by Areas
 Marketing Managers
 Work in areas related to getting consumers and
clients to buy the organization’s products or services.
 Financial Managers
 Deal primarily with an organization’s financial
resources. (accounting, investment, cash management)
 Operations Managers
 Concerned with creating and managing the systems
that create organization’s products and services.
(production control, inventory, quality, plan layout site
selection

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Continued…
 Human Resource Managers
 Involved in human resource planning, recruiting and
selection, training and development, designing
compensation and benefit systems, formulating
performance appraisal systems.
 Administrative Managers
 Generalists who are familiar with all functional areas of
management and who are not associated with any
particular management specialty.
 Other Kinds of Managers
 Specialized managerial positions directly related to the
needs of the organization.

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Basic Managerial Roles (REF: Henry Mintzberg)

 Interpersonal Roles
 Figurehead (Visitor to dinner, Ribbon cutting)
 Leader (Hiring, training, encouraging employee)
 Liaison (coordinating between people, groups, or
organisation)
 Informational Roles
 Monitor (Scanning industry reports)
 Disseminator (transmitting information)
 Spokesperson (out side the unit or org)
 Decisional Roles
 Entrepreneur (Developing new idea)
 Disturbance handler (Resolving conflict)
 Resource allocator (Distribution of resources)
 Negotiator (Supplier and labor union)

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Managerial Skills

 Technical Skills

 Interpersonal Skills

 Conceptual Skills

 Diagnostic Skills

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Management Skill Mixes at Different
levels of Org.

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Scope of Management
 Profit Seeking
 Large Business
 Small and Start-up business
 International Management

 Not for Profit

 Government Org
 Educational Org
 Healthcare Facilities
 Management in Non-traditional Setting

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Perspectives of Management
 Classical Perspective
 Scientific Management

 Administrative Management

 Behavioral Perspective
 Quantitative Management Perspective
 Management science

 Operations management

 The Systems Approach

 The Contingency Approach

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Classical Management Perspective
 Scientific Management (Frederick Taylor,1856–1915)
 Concerned with improving the performance of individual
workers (i.e., efficiency).
 Grew out of the industrial revolution’s labour shortage at the
beginning of the twentieth century.
 Replaced old methods of how to do work with scientifically-
based work methods to eliminate “soldiering,”
 Believed in selecting, training, teaching, and developing
workers.
 Used time studies of jobs, piece-work pay systems to control
and motivate employees.
 Treat people mechanistically

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 Continued…

1 2
Develop a science Scientifically select
for each element of employees and then
the job to replace old train them to do the job
rule-of-thumb methods as described in step 1
3 4
Supervise employees
Continue to plan
to make sure they
follow the prescribed the work, but use
workers to get the
methods for performing
work done
their jobs

S. M. Towhidur Rahman Figure 23

1.3
Continued…
 Administrative Management
 A theory that focuses on
managing the total organization.
 Henri Fayol (1841 -1925) was the pioneer
 Identification of the specific management functions
planning, organizing, leading, and controlling.
 Also introduced 14 principles of management

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Continued…
 Division of labour  Centralization
 Authority  Scalar Chain

 Discipline  Order

 Unity of Command  Equity

 Unity of Direction  Stability

 Subordination of  Initiative

individuals to the  Esprit de corps

common good [details: table 2.1]
 Remuneration

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Behavioral Perspective
 Emphasizes individual attitudes and behaviors,
and group processes
 Elton Mayo one of the pioneers was popular for
the Hawthorne study
 Resulted in human relations movement i.e. the
workers respond to the social context of the
workforce
 Consequence was the development of field like
Organizational behavior, industrial psychology
 Provided important insights into motivation,
group dynamics, and other interpersonal
processes in organization

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Quantitative Management Perspective
 Applies quantitative techniques to management
 Two branches of this approach are
 Management science
 Operations Management
 Management science focuses on the
development of mathematical models
 Operations management concerns with helping
the org. more efficiently produce its products
or services
 Cannot predict or fully explain human behavior
in org.

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The Systems & The Contingency
Approaches
 Systems Approach
 Considers the management of org. as a system

consisting of variety of dynamic elements.

 Assumes an input – transformation - output –

feedback process in management

 Contingency Approach
 Suggests that appropriate managerial behavior

in a given situation depends on or is contingent

on, a wide variety of elements

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 Thank You

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