Nature of management

G O O D D A Y!

Nature and Concepts of Management

What is Management?• The verb manage comes from the

Italian maneggiare (to handle — especially a horse), which in turn derives from the Latin manus (hand). The French word mesnagement (later ménagement) influenced the development in meaning of the English word management in the 17th and 18th centuries.

• A process or form of work that involves the guidance and direction of a group of people toward a goal. (Terry and Rue, 1982)

• The process of Planning, organizing, leading and controlling the efforts of organization members and of using all resources to achieve goals. (Stoner, 1993)

• The establishment of an environment for group effort that each individuals will contribute for group objectives with the least amount of such inputs as money, time, effort, discomfort and materials. (O’Donnel and Weihrich, 1980)

• The process of working with people and other people to accomplish a goal (Johnson and Stenson, 1978)

• Coordinating and over-seeing the work activities of others so that their activities are completed efficiently and effectively. (Robbins and Coulter, 2007)

Based on the definitions given, management has emerged some features:

• It is a systematic process• It utilizes resources efficiently• It gets things done through and with

others.• It achieves a stated goal

Based on the emerged features of management, we can say the it is a process by which a manager of an organization

efficiently utilizes resources as he/she works with others to

achieve a goal.

Management: an Art or Science?

Management as Science• Supported by the Scientific

Management Movement pioneered by Frederick W. Taylor and Frank and Lillian Gilbreth

• There are ideal managerial practices for certain situations

• If there are managerial dilemmas, there is a rational and objective way to determine the correct course of action by following general principles and theories and also by creating and testing hypotheses about the action.

Management as an Art• Managers rely on the social

and political environment surrounding the managerial issue, using their own knowledge of a situation, rather than generic rules, to determine a course of action.

• As viewed by Henry Mintzberg, managers did not necessarily have routine behaviors throughout their days, but instead used their own social and political skills to solve problems that arose throughout the course of work.

• It involves the proficiency in the practical application of knowledge acquired through experience and observation.

“Managing as practice is an art, the

organized body of knowledge about management is

science” –Flores, et.al, 2006

Basic Concepts in

Management

EFFICIENT• The means of attaining

organizational goals through using resources wisely to produce a given output of goods or services.

• “Doing things right”

EFFECTIVE• It means to achieve results, to

make right decisions and successfully carry them out so that they achieve the organization’s goals.

• “Doing the right things”

Are you a Manager or a

Leader?

Managers• coordinate with others for work so that

organizational goals can be accomplished

• The job is not about personal achievement, but its helping others to do their works

Leaders• influence other people to work to

achieve certain goals.

Subject Manager LeaderEssence Stability Change

Focus Managing work Leading people

Have Subordinates Followers

Horizon Short-term Long-term

Seeks Objectives Vision

Approach Plans detail Sets direction

Subject Manager LeaderDecision Makes FacilitatesPower Formal

authorityPersonal charisma

Appeal to Head HeartEnergy Control PassionDynamic Reactive ProactivePersuasion Tell Sell

Subject Manager LeaderStyle Transactional TransformationalExchange Money for

workExcitement for

workLikes Action StrivingWants Results AchievementRisk Minimizes TakesRules Makes Breaks

Subject Manager LeaderConflict Avoids UsesDirection Existing

roadsNew roads

Truth Establishes SeeksConcern Being right What is rightCredit Takes GivesBlame Blames Takes

Managerial Levels• First/Front-line Managers

– Lowest level of management.– Manages the work of non-managerial employees

who are typically involved with producing the organization’s products or servicing the customers.

– They are people who have direct supervision over the working force in office factory, sales field or other workgroup or areas of activity.

– They are often titled as supervisors, district managers, department managers or office managers.

• Middle Managers– Between the lowest and the top level of an

organization.– They are responsible for carrying out the

decisions made by top-level management.– They manage the work with the first-line

managers.– They are called as regional manager, project

leader or division manager.

• Top-Level Managers– They are responsible for making organization-wide

decisions and establishing plans and goals that affects the entire organization.

– Require an extensive knowledge of management roles and skills.

– They have to be very aware of external factors such as markets.

– Their decisions are generally of a long-term nature– Their decisions are made using analytic, directive,

conceptual and/or behavioral/participative processes– They are responsible for strategic decisions.– They have to analyze the plan and see that plan may be

effective in the future.

Non-managerial employees

First-line managers

Middle managers

top managers

The Managerial Level Pyramid

What do Manager

s do?

Schemes used to describe

what managers

should do or expected to

be

•Functions•Roles•Skills

Managerial Functions

• Devised by Henry Fayol (Five Functions of Management)

• Fayol’s Functions of Management has evolved (Robbins and Coulter; 2007) and was organized into four (4)

• The Four Functions of Management are:–Planning–Organizing–Leading–Controlling

Managerial Functions• Planning – Managers should define or set

goals, establish strategies for achieving the goals and create plans to integrate and coordinate activities.

• Organizing – Managers arrange and structure work though identifying, subdividing, grouping, assigning and coordinating activities in order to accomplish the created plan.

• Leading – Managers works with and through their people to achieve the desired goal. They are they one to choose, train and motivate people for their work.

• Controlling - Managers should evaluate and monitor work performance and take necessary corrective action to ensure whether things are going as planned.

Managerial Roles

• Henry Mintzberg studied actual managers at work to identify managers’ roles

• He concluded that what managers should do is by referring to the ten (10) different but interrelated management roles which specify their managerial behaviors.

• Roles are divided into three (3) categories: Interpersonal, Informational and Decisional

• Interpersonal Roles – it involves people and other duties that are symbolic in nature.Figurehead – They represent their units which

they are obliged to perform a number of routine duties of a legal or social in nature.

Leader – They initiate, motivate and coordinate their subordinates to perform work.

Liaison – They interact with persons in other units and outside the unit. They maintain self developed networks of outside contacts and informers.

• Informational Roles – it involves collecting, receiving and disseminating information.Monitor – They seeks and receives internal and

external information.Disseminator – They transmit information

received from outsiders or from subordinates to the members of the organization.

Spokesperson – They represent and speak for their units. They transmit information to outsiders about the organization’s plans, policies, actions and results.

• Decisional Roles – it involves in making the right choice and decision.Entrepreneur – They identify opportunities and

development for the organization which initiates change.

Problem Solver/Disturbance handler – They identify solutions and take corrective actions when the organization faces streams of problems.

Resource Allocator – They distribute funds, personnel, materials and other resources wisely.

Negotiator – they are involved or represent their units in some negotiating activities.

Managerial Skills

• Created by Robert L. Katz• According to him, managers need three

(3) essential skills for them to work efficiently.

• The Three (3) Essential Skills are:–Technical Skills–Human Skills–Conceptual Skills

• Technical Skills (Doing)– Skills that are job specific in nature since it

needs knowledge and techniques to proficiently perform a task.

– It involves knowledge in methods, processes, procedures and techniques.

– It also includes the understanding in the use of the tools for a given task.

– It is important for First-line managers since they manage non-managerial employees who are using the tools and techniques to produce the organization’s product or service.

– Vocational and on-the-job training programs develop this skill.

• Human Skills (Interacting)– Skills that deal with the ability to work well with other

people both individually and in a group.– It includes sensitivity to the needs and motivation of

people in an organization.– This skill is essential and equally important to all levels

of management.– Managers with good human skills are able to get to get

the best out of their people since they know how to communicate, motivate, lead and inspire.

– This skill can be effectively aided by a skilled instructor through use of case problems coupled with impromptu role playing.

• Conceptual Skills (Thinking)– Skills use to think and conceptualize about

abstract and complex situations.– Using these skills, managers look at the

organization as a whole, understand the relationship among various subunits and visualize how the organization fits into its broader environment.

– It is very important for the Top-level managers– Coaching of subordinates and job-trading can

help managers to develop this skill.

Significance of Managerial Skills

Conceptual

Human

Technical

First-Line Managers

Conceptual

Human

Technical

Middle Managers

Conceptual

Human

Technical

Top Managers

Also, the American Management Association

identified different managerial skills based on

a survey of practicing managers.

• Conceptual Skills–Ability to use information to solve problems– Identification of opportunities for innovation–Recognizing problem areas and

implementing solutions–Selecting critical information from masses of

data–Understanding of business uses of

technology–Understanding the organization’s business

model

• Communication Skills–Ability to transform ideas into words

and actions–Credibility among colleagues, peers

and subordinates–Listening and asking questions–Presentation skill; orally or in written

• Effectiveness Skills–Contributing to the mission/objectives–Customer focus–Multi-tasking–Negotiating skills–Project management–Reviewing operation and implementing

improvements–Setting and maintaining performance

standards–Setting priorities for attention and activity–Time management

• Interpersonal Skills–Coaching and mentoring skills–Diversity skills: working with diverse

people and cultures–Networking within and outside the

organization–Working in teams; cooperation and

commitment

Areas of Management

Functional Areas of Management• Human Resources Management• Operations Management• Marketing Management• Financial Management• Information and Communication

Technology Management

Human Resources• It deals with the formal system for the

management of people within an organization. (Bateman and Snell, 2008)

• The most important asset of all organizations.

• It performs the recruitment and dismissal of employees.

• It declares the salaries, wages and benefits of personnel.

Operations • It includes the ff.:

– Design of goods and services– Quality management– Process strategy– Locations strategies– Layout strategies– Human Resources– Supply chain management– Inventory management– Scheduling– Maintenance

Operations • It also include transaction

processing, crew scheduling, communications and dispatching and efficient use of machines, space and personnel.

Marketing• The area which is closest to customers.• It’s activities relate to identifying customers’

needs and interpret these back to the enterprise for its business reaction.

• It includes the ff.:• Product and Service Planning• Pricing• Distribution• Promotions• Market Research• Customer Service

Financial• The finance person is in charge of:

– the investments of the stockholders– the use of funds in the operation– The distribution of income of the business

owners• The finance person is also known as Chief

Financial Officer.• It consist the management of the current

assets and liabilities.• The goal is profit maximization.

Information and Communication Technology• The most intimidating area of management

due to its dizzying pace and scope of influence.

• Chief Technology Officer (CTO) is the one who managed this area.

• CTOs directly get in touch with the external partners of an enterprise.

• They are also tasked to integrate these external information to the internal goals of the organization.

Thank You!