INTRODUCTION TO MANAGEMENT

Mary Parker Follet defines management as, The art of getting things done through people

Lawrence Appley defines management as, management is the accomplishment of results through the efforts of other people

Koontz defines management as, management is the art of getting things done through and with people in formally organised group

Management is a process involving planning, organizing, staffing, directing and controlling human efforts to achieve stated objectives in an organisation.

ADMINISTRATION VERSUS MANAGEMENT Oliver Shelton,in his book The Philosophy of management differentiated administration as decision making function and management as execution function. Administration is above the Management
Milward states that administration is primarily the process and agency used to establish the objectives or purpose which an undertaking and its staff are to achieve: secondly, administration has to plan and to stabilize, the broad lines of principles which will govern action. These broad lines are usually called policies. Management is the process and agency through which execution of policy is planned and supervised.

TOP Administration (Policy Formulation)

Organisational Level

Management (Policy Execution) LOWER

Functions in Organisation

Basis of Difference 1. Level of organisation 2. Major Focus Top Level

Administration

Management Middle and Lower Level Policy execution for objective achievement Executive Narrow and Operational Mostly internal Employees Technical

Policy formulation and objective determination

3. Nature of Functions 4. Scope of Functions 5. Factors affecting decisions

Determinative Broad and conceptual Mostly External

6. Employer- Employee relation Entrepreneurs and owners 7. Qualities Required Administrative

Definition: Management is the process of designing and maintaining an environment in which individuals working together in group, efficiently accomplish selected aims or the goals. Who are managers? Male or Female?

Where you found them? Is an Art or Science?

Efficient v/s Effectiveness?

Managers:
Coordinate work activities to achieve organizational goals. Their ability to act is affected by both the internal culture of the organization and the constraints of the external environment including the global environment.

Managers:
Also deal with complicated ethical and social responsibility issues as they plan, organize, lead and control.

Manager Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals

When considering the managers terrain, managers might ask these questions: What is my role as a manager? What constraints do I face as a manager both within the organization and from the external environment? How does the global environment affect my ability to manage? What can I do to be an ethical and socially responsible manager?

Types of Managers
y

First-line Managers Managers at the lowest level manage the work of nonmanagerial employees directly or indirectly involved with the production or creation of the organizations products.

Middle Managers Managers between the first-line level and the top level of the organization who manage the work of first-line managers

Top Managers Managers at or near the top level are responsible for making organization-wide decisions and establishing plans and goals affecting the entire organization

Exhibit 1.1 Managerial Levels

Top Managers Middle Managers First-Line Managers Nonmanagerial Employees

Efficiency and Effectiveness

y

Managerial Concerns
Efficiency
x Doing things right
x Getting the most output from the least amount of inputs

Effectiveness
x Doing the right things
x Completing activities so that organizational goals are achieved

Exhibit 1.2 Efficiency and Effectiveness in Management

Efficiency (Means) Resource Usage Low Waste Effectiveness (Ends) Goal Attainment High Attainment

Management Strives for: Low Resource Waste (high efficiency) High Goal Attainment (high effectiveness)

Management Functions
y

According to the functions approach, managers perform certain activities or duties as they efficiently and effectively coordinate the work of others. Henry Fayol first proposed that all managers perform five functions: planning, organizing, commanding, coordinating and controlling.
Organizing Determining what needs to be done, how it will be done, and who is to do it Leading Directing and motivating all involved parties and resolving conflicts Controlling Lead to Monitoring activities to ensure that they are accomplished as planned

Planning Defining goals, establishing strategy, and developing sub-plans to coordinate activities

Achieving the organizations stated purpose

TIME SPENT ON CARRYING OUT MANAGERIAL FUNCTIONS P L A N N I N G O R G A N I S I N G

C O N T R O L L I N G

Top Level Managers

Middle Level Managers

L E A D I N G

First Level Supervisors

FIVE FUNCTION APPROACH 1. PLANNING 2. ORGANISING 3. STAFFING 4. LEADING 5. CONTROLLING

ART OR SCIENCE? THEORY

Concepts: Mental image of anything formed by generalisation from particulars Principles Scientific methods: Involves determination of facts through observation, testing of relationship and hypothesis. If it explain reality , they are called principles Theory: is a systematic grouping of interdependent concept and principles Management theories are Science. The application of theory into practical life is an Art

Principles

Principles

SCIENTIFIC METHODS Searching for facts and casual relationship Testing of hypotheses

Concept

Particulars

Particulars

Particulars

Management Roles
y

Henry Mintzbergs Management Roles Approach

Interpersonal roles
x Figurehead, leader, liaison

Informational roles
x Monitor, disseminator, spokesperson

Decisional roles
y

x Entrepreneur, disturbance handler, resource allocator, negotiator Robert Katz Management Skills Approach Technical skills : Knowledge and proficiency in a specific field Human skills: The ability to work well with other people Conceptual skills: The ability to think and conceptualize about abstract and complex situations concerning the organization Design Skill: The ability to solve problem in a way that will benefit the enterprise.

Exhibit 1.5 Skills Needed at Different Management Levels

Top Managers Middle Managers Lower-level Managers

Conceptual Skills Human Skills Technical Skills Importance

What Is an Organization? y An Organization Defined A deliberate arrangement of people who act together to accomplish some specific purpose y Common Characteristics of Organizations Distinct purpose Composed of people Deliberate structure
Distinct Purpose Deliberate Structure People

Exhibit 1.7 The Changing Organization

Traditional
y y y y y y y y y y y y y

New Organization
y y y y y y y y y y y y y

Stable Inflexible Job-focused Work is defined by job positions Individual-oriented Permanent jobs Command-oriented Managers always make decisions Rule-oriented Relatively homogeneous workforce Workdays defined as 9 to 5 Hierarchical relationships Work at organizational facility during specific hours

Dynamic Flexible Skills-focused Work is defined in terms of tasks to be done Team-oriented Temporary jobs Involvement-oriented Employees participate in decision making Customer-oriented Diverse workforce Workdays have no time boundaries Lateral and networked relationships Work anywhere, anytime

The Types of Organizations

Managers and employees work in a variety of sizes of organizations Large organizations represent only 2% of the organizations in Canada Small business represent 98% of all Canadian companies y Managers and employees work in a variety of organizations, and the type of organization has an impact on what managers can do Publicly held organizations Privately held organizations Public sector organizations Crown Corporations Subsidiaries of foreign organizations (e.g., Sears, Safeway, General Motors, and Ford Motor Company)
y

CHANGES AFFECTING A MANAGERS JOB

Shifting organisational boundaries Virtual workplace More mobile workers Flexible work arrangement Empowered employees Work Lif and Personal life Balance

Changing Technology

Chnaging security Threats

Risk management Uncertinity over future energy sources ? Prices Restructured workplace Discrimination Concerns Globalization Concerns Employee Assistance RedifinedValues Rebuild trust Increased Accountability

Increased Emphasis on Organisational and managerial Ethics

Increased Competitiveness

Customer Service Innovation Globalisation Efficiency / Productivity

Challenges to Managing
y

Ethics Rules and principles that define right and wrong behaviour Increased emphasis on ethics education seen in university and college curriculums Increased creation and use of codes of ethics by businesses currently Workforce Diversity The mix of people in organizations in terms of gender, race, ethnicity, disability, sexual orientation, age, demographic characteristics such as education and socio-economic status

Globalization Management in international organizations Political and cultural challenges of operating in a global market y Managing in an E-Business World The work performed by an organization using electronic linkages to its key constituencies E-commerce: the sales and marketing component of an e-business y Categories of E-businesses E-businessenhanced organization E-businessenabled organization Total e-business organization Customers
y

Customers have more opportunities than ever before Delivering consistent high-quality service is essential Managers need to create customer-responsive organizations

Exhibit 1.8 Categories of E-Business Involvement E-

E-BusinessEnhanced Organization E-business units within traditional organization Total E-Business Organization Organizations entire work processes revolve around e-business model

E-BusinessEnabled Organization E-business tools and applications used within traditional organization

1-24

Innovation Nothing is more risky than not innovating Doing things differently, exploring new territory, and taking risks Managers need to encourage all employees to be innovative y Knowledge Management The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance
y

Learning Organization An organization that has developed the capacity to continuously learn, adapt, and change

Exhibit 1.9 Learning Organization vs. Traditional Organization

Why Study Management?

y

The Value of Studying Management

The universality of management x Good management is needed in all organizations The reality of work x Employees either manage or are managed Self-employment x Running your own business rather than working for someone else
All Sizes of Organizations Small Large

All Organizational Areas Manufacturing Marketing Human Resources Accounting Information Systems etc.

Management Is Needed in...

All Types of Organizations Profit Not-for-Profit

All Organization Levels Bottom Top

Summary and Implications

y

What makes someone a manager? Managers work with and through other people by coordinating employee work activities in order to accomplish organizational goals. What is management and what do managers do? Management is coordinating work activities so that they are done efficiently and effectively. What characteristics define an organization? Managers work in a variety of organizations both large and small within various industries What are the challenges to managing? The greatest managerial challenge is the crisis in ethical responsibility damaging todays organizations Does studying management make a difference? Understanding management helps us to improve organizations

Managerial Knowledge, Goals of claimants and use of inputs PLANNING

Inputs 1.Human 2. Capital 3. Managerial 4.Technological GOAL INPUTS OF CALIMANTS 1. Employees 2. Consumers 3. Suppliers 4. Community 5. Stockholders 6. Government 7. Others

ORGANIZING

Facilities by Communication that also lings the organisation with the external environment

REENERGIZING THE SYSTEM

STAFFING

LEADING

CONTROLLING TO PRODUCE OUTPUTS

SYSTEM APPROACH TO MANAGEMENT

Outputs 1. Products 2. Services 3. Profits 4. Satisfaction 5. Goal Integration 6. Others

External variables 1. Opportunities 2. Constraints 3. Others