Unit 1 Management Process

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ContentsAfter this session you will be able to understand:IntroductionLearning ObjectivesManagement functionsManagement roles and skillsEffective vs. successful managerial activitiesSummary

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IntroductionOrganizational behavior is a field of study that

investigates the impact that individuals, groups and structure have on behavior within an organization, then applies that knowledge to make organizations work more effectively.

-----(Robbins, 2003)

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• Organizational Behavior is defined as “the understanding, prediction and management of human behavior in organizations”.

------Fred Luthans

• Organizational Behavior is defined as the systematic study and application of human aspects in management of an organization.

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Changes in Organizational SetupEnd of traditional hierarchical structureWorkforce has different expectations from

organizations.Advancement of information TechnologyImportance of empowerment and teamwork

has increased.Employees have become more concerned for

work-life balance.

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Focus of a ManagerTask performance – It is the quality and

quantity of the work produced.

Job satisfaction – It is people’s feelings about their work and work setting.

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Learning ObjectivesManagement

functionsPlanningOrganizingCommandingCoordinatingControlling

Managerial rolesInformational

rolesDecisional rolesInterpersonal

rolesManagement skills

Technical skillsHuman skillConceptual skill

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Management Functions• Management is the art of getting things done

through people. ----(Follett, 1933)• Fayol, in 1949, classified management

functions as follows– Planning– Organizing – Commanding– Coordinating– Controlling

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Recently, management functions have been grouped into four categories, namely, Planning Organizing Leading Controlling

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1) Planning

Planning is the process of setting goals, making strategy for achieving these goals, and developing plans to manage activities.

Planning should be linked to strategic goal of an organization.

So, planning is strategic in nature and hence it is called strategic planning.

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Strategic PlanningIt is the process of developing and analyzing

the organization’s missions, goals, general strategies and allocating resources.

Top level managers engage chiefly in strategic planning.

It is a long term planning.

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Steps in Strategic Planning Process

Define the mission

Conduct a situational or SWOT analysis

Set goals and objectives

Develop related strategies (tactical and

operational)

Monitor the plan

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SWOT Analysis SWOT analysis is the analysis of an

organization’s strengths, weaknesses, opportunities and threats.

Strengths and weaknesses are internal factors whereas opportunities and threats are external factors.

It is most important for creating any strategic plan.

It is used as a baseline for future improvement, as well as gap analysis.

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SWOT ANALYSIS

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Important questions for assessing the strengths of the organization

What makes the organization distinctive?

How efficient is our manufacturing?

What is our market share?

Do we have a superior reputation?

What financing is available?

How skilled is our workforce?

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Important questions for assessing the weaknesses of the organizationWhat are the vulnerable areas of the organization

that could be exploited?

Are the facilities outdated?

Is research and development adequate?

Are the technologies obsolete?

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Important questions for assessing the opportunities of the organizationIn which areas is the competition not meeting

customer needs?

What are the possible new markets?

What is the strength of the company?

Are our rivals weak?

What are the emerging technologies?

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Important questions for assessing the threats of the organizationAre there new competitors?

Is there a shortage of resourses?

Are market tastes changing?

What are the new regulations?

What substitute products exist?

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2) Organizing It is the process of designing, structuring,

and coordinating work to achieve organizational goals.

It determines-------What to do?Who will do?Who should report to whom?Where decisions will be made?

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Steps in Organizing Process

Review plans

List all tasks

Divide tasks into groups

Group related jobs together

Assign work to individuals

Delegate authority

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3) LeadingLeadership is the influence of one person on

another.

An organization’s success depends on the leadership quality of its supervisors.

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Functions of Leading• Team building – Building teams of employees to

help knowledge based and innovative decision making.

• Consensus building – It means working together with others to achieve a common goal.

• Selecting – An organization gains competitive advantage by selecting competent and well performing employees.

• Training – It is the orientation program of an employee to introduce him to his job. Training improves an employee’s knowledge, skills and attitudes to perform his job.

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4.controllingIt is the process of monitoring the employees’

behavior and take actions to improve them. Employee activities are monitored and corrective action is taken.

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Steps in the control process

Establish performance standards

Measure actual performance

Compare measured performance against

established standards

Take corrective action

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Types of Control• Feed forward controls – These controls aim to

prevent problems that may occur in future. Example: maintenance on automobiles and machinery.

• Concurrent controls – These controls apply to processes as they happen. Example: direct supervision, automated systems and quality programs.

• Feedback controls – these controls focus on the results of operations. They help in future planning, inputs and process designs. Example: weekly, monthly, quarterly or annual reports so that immediate adjustment can be made.

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Management Roles and SkillsManagerial rolesMintzberg (1973) has classified managerial

roles as follows:Informational roles – In this role, managers

collect and spread information.Decisional roles – In this role, managers take

decisions.Interpersonal roles – In this role, managers

perform activities with people working in the organization.

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Management Roles

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Management skillsAccording to Katz (1974), there are three

management skills:Technical – It is the application of specialized

knowledge or expertise to perform a job.Human – It is the ability to work with people,

understand them and motivate them.Conceptual – It is the ability to analyze a

situation and find a realistic solution to the problem.

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Management Skills

Technical skills

Human skills

Conceptual skills

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Effective Vs. Successful Managerial Activities

According to Luthans(1988),all managers engage in four managerial activities-

1.Traditional management- this activity consists of planning, decision making and controlling.Average manager spent 32% of his/her time on this activity.Successful manager & effective managers spent 13% on this activity.

2.Communication- this activity consists of exchanging daily information and processing paperwork.Average manager spent 29% of his/her time on this activity.Successful manager spends 28% of his/her time on this activity.Effective managers spend 44% of his/her time on this activity.

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Contd.3. Human resource management- this activity consists of

motivating, disciplining, managing conflict,staffing and training.Average manager spent 20% of his/her time on this activity.

Successful managers spends 11% of his/her time on this activity.Effective managers spends 26% of his/her time on this activity.4. Networking- it involves socializing, politicking, and interacting

with outsiders.Average manager spent 19% of his/her time on this activity.Successful manager spends 48% of his/her time on this activity.Effective managers spend 11% of his/her time on this activity.

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