Introduction to Management- Part 1

8/3/2019 Introduction to Management- Part 1

1/30

INTRODUCTION TO MANAGEMENT


2/30

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

done through people

Koontz defines management as, management is the art of getting things

done through and with people in formally organised group

Lawrence Appley defines management as, management is the

accomplishment of results through the efforts of other people

Management is a process involving planning, organizing, staffing, directing and

controlling human efforts to achieve stated objectives in an organisation.


3/30

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 calledpolicies. Management is the process and agency through which execution of

policy is planned and supervised.


4/30

Administration

(Policy Formulation)

Management

(Policy Execution)

Org

anisationalLevel

TOP

LOWER

Functions in Organisation


5/30

Basis ofDifference Administration Management

1. Level of organisation Top Level Middle and Lower Level

2. Major Focus Policy formulation and

objective determination

Policy execution for

objective achievement

3. Nature of Functions Determinative Executive

4. Scope of Functions Broad and conceptual Narrow and Operational

5. Factors affecting decisions Mostly External Mostly internal

6. Employer- Employee relation Entrepreneurs and owners Employees

7. Qualities Required Administrative Technical


6/30

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?

Is anArt or

Science?

Where youfound them?

Efficient v/s

Effectiveness?


7/30

y Managers: Coordinate work activities to achieve organizational goals.

Their ability to act is affected by both the internal culture ofthe organization and the constraints of the external

environment including the global environment.

y Managers:

Also deal with complicated ethical and social

responsibility issues as they plan, organize, lead and

control.

y Manager

Someone who works with and through other people

by coordinating their work activities in order to

accomplish organizational goals


8/30

y 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?


9/30

y First-line Managers

Managers at the lowest level manage the work of non-

managerial employees directly or indirectly involved with the

production or creation of the organizations products.

y Middle Managers

Managers between the first-line level and the top level of the

organization who manage the work of first-line managers

y 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

Types of ManagersTypes of Managers


10/30

Exhibit 1.1 Managerial LevelsExhibit 1.1 Managerial Levels

Top

ManagersMiddle Managers

First-Line Managers

Nonmanagerial Employees

Top

ManagersMiddle Managers

First-Line Managers

Nonmanagerial Employees


11/30

Efficiency and EffectivenessEfficiency and Effectiveness

y Managerial Concerns

Efficiency

x Doing things right

xGetting the most output from the least amount

of inputs

Effectiveness

xDoing the right thingsxCompleting activities so that organizational goals

are achieved


12/30

Exhibit 1.2 Efficiency and Effectiveness inExhibit 1.2 Efficiency and Effectiveness in

ManagementManagement

GoalAttainment

Effectiveness (Ends)

ResourceUsage

Management Strives for:Low Resource Waste (high efficiency)

High Goal Attainment (high effectiveness)

Efficiency (Means)

Low Waste High Attainment


13/30

Management FunctionsManagement Functions

y According to the functions approach, managersperform certain activities or duties as they

efficiently and effectively coordinate the work of

others.

y

Henry Fayol first proposed that all managersperform five functions: planning, organizing,

commanding, coordinating and controlling.

Planning

Defining goals,establishingstrategy, anddevelopingsub-plans tocoordinateactivities

Lead to

Organizing

Determiningwhat needsto be done,how it willbe done, andwho is to do it

Leading

Directing andmotivating allinvolved partiesand resolvingconflicts

Controlling

Monitoringactivitiesto ensurethat they areaccomplishedas planned

Achieving theorganizations

statedpurpose


14/30

P

LA

N

N

I

N

G

O

R

G

A

N

I

S

I

NG

LE

A

D

I

N

G

C

O

NT

R

O

L

L

I

NGFirst Level Supervisors

Middle Level

Managers

Top Level

Managers

TIME SPENT ON CARRYINGOUT MANAGERIAL FUNCTIONS

FIVE FUNCTION APPROACH

1. PLANNING

2. ORGANISING

3. STAFFING

4. LEADING

5. CONTROLLING


15/30

ART OR SCIENCE?

Particulars

SCIENTIFIC METHODS

Searching for facts and casual

relationship Testing of hypotheses

Concept

ParticularsParticulars

THEORY

PrinciplesPrinciplesPrinciples

Concepts: Mental image of anything formed by generalisation

from particulars

Scientific methods: Involves

determination of facts through

observation, testing of relationshipand hypothesis. If it explain reality ,

they are called principles

Theory: is a systematic grouping of

interdependent concept and

principlesManagement

theories are Science.

The application of

theory into practical

life is an Art


16/30

ManagementManagement RolesRolesy Henry Mintzbergs Management RolesApproach

Interpersonal roles

x Figurehead, leader, liaison

Informational roles

x Monitor, disseminator, spokesperson

Decisional roles

x Entrepreneur, disturbance handler, resource allocator,negotiatory 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.


17/30

Exhibit 1.5 Skills Needed at Different Management LevelsExhibit 1.5 Skills Needed at Different Management Levels

TopManagers

MiddleManagers

Lower-level

ManagersImportance

Conceptual

SkillsHumanSkills

TechnicalSkills


18/30

WhatWhat IsIs anan Organization?Organization?

y An Organization Defined

A deliberate arrangement of people who acttogether to accomplish some specific purpose

y Common Characteristics of Organizations

Distinct purpose

Composed of people

Deliberate structure

DeliberateStructureDistinctPurpose

People

DeliberateStructureDistinctPurpose

People


19/30

Exhibit 1.7 The Changing OrganizationExhibit 1.7 The Changing Organization

Traditionaly Stable

y Inflexible

y Job-focused

y Work is defined by job positions

y

Individual-orientedy Permanent jobs

y Command-oriented

y Managers always make decisions

y Rule-oriented

y Relatively homogeneous

workforcey Workdays defined as 9 to 5

y Hierarchical relationships

y Work at organizational facilityduring specific hours

New Organization

y Dynamic

y Flexible

y Skills-focused

y Work is defined in terms of tasks to

be doney Team-oriented

y Temporary jobs

y Involvement-oriented

y Employees participate in decisionmaking

y Customer-oriented

y Diverse workforce

y Workdays have no time boundaries

y Lateral and networked relationships

y Work anywhere, anytime


20/30

The Types of OrganizationsThe Types of Organizationsy 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)


21/30

CHANGES AFFECTING A MANAGERS JOB

Changing Technology

IncreasedCompetitiveness

Increased Emphasis on Organisational

and managerial Ethics

Chnaging security Threats

Customer Service

Innovation

Globalisation

Efficiency / Productivity

RedifinedValues

Rebuild trust

IncreasedAccountability

Risk management

Uncertinity over future energy sources ?

Prices

Restructured workplaceDiscrimination Concerns

Globalization Concerns

EmployeeAssistance

Shifting organisational boundaries

Virtual workplace

More mobile workers

Flexible work arrangementEmpowered employees

Work Lif and Personal life Balance


22/30

Challenges to ManagingChallenges to Managingy Ethics

Rules and principles that define right and wrongbehaviour

Increased emphasis on ethics education seen in

university and college curriculums

Increased creation and use of codes of ethics by

businesses currently

y 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


23/30

y Globalization

Management in international organizations

Political and cultural challenges of operating in a global

markety Managing in an E-Business World

The work performed by an organization usingelectronic linkages to its key constituencies

E-commerce: the sales and marketing component of ane-business

y Categories of E-businesses

E-businessenhanced organization

E-businessenabled organization

Total e-business organization Customers

Customers have more opportunities than ever before Delivering

consistent high-quality service is essential Managers need to create

customer-responsive organizations


24/30

1-24

Exhibit 1.8 Categories of EExhibit 1.8 Categories of E--Business InvolvementBusiness Involvement

E-business units withintraditional organization

E-BusinessEnhancedOrganization

E-business tools andapplications usedwithin traditional

organization

E-BusinessEnabledOrganization

Organizations entirework processes revolve

around e-business model

Total E-BusinessOrganization


25/30

y 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


26/30

Exhibit 1.9 Learning Organization vs. Traditional OrganizationExhibit 1.9 Learning Organization vs. Traditional Organization


27/30

Why Study Management?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 Types of Organizations

Profit Not-for-Profit

All Organization Levels

Bottom Top

ManagementIs Needed

in...

All Organizational AreasManufacturing Marketing

Human Resources AccountingInformation Systems etc.


28/30

Summary and ImplicationsSummary and Implications

y What makes someone a manager?

Managers work with and through other people by coordinating

employee work activities in order to accomplish organizationalgoals.

y What is management and what do managers do?

Management is coordinating work activities so that they are done

efficiently and effectively.

y

What characteristics define an organization? Managers work in a variety of organizations both large and small

within various industries

y What are the challenges to managing?

The greatest managerial challenge is the crisis in ethical

responsibility damaging todays organizationsy Does studying management make a difference?

Understanding management helps us to improve organizations


29/30

Managerial Knowledge,

Goals of claimants and use of inputs

PLANNING

ORGANIZING

GOAL INPUTS OF CALIMANTS

1. Employees 2.Consumers

3. Suppliers 4.Community

5. Stockholders 6.Government

7. Others

Inputs

1.Human

2.Capital

3. Managerial

4. Technological

Externalvariable

s

1.

Opportunitie

s

2.

Constraints

3.

OthersSTAFFING

LEADING

CONTROLLING

FacilitiesbyComm

unicationthat

alsolingstheorga

nisationwith

theexternalen

vironment

REENERGIZINGTHESYSTEM

TO PRODUCE OUTPUTS Outputs1. Products 2. Services

3. Profits 4. Satisfaction

5.Goal Integration 6. Others

SYSTEM APPROACH

TO

MANAGEMENT


30/30

Introduction to Management- Part 1

Documents