Overview of Management and Organisation
INTRODUCTION TO MANAGEMENT
What Is an Organization?
• A group of people working together in a structured and coordinated fashion to achieve a set of goals.
• A social unit in which two or more people interact to achieve common goal or a set of goals.
• Collection of people working together in a division of labor to achieve a common purpose
How Do Managers Combine and Coordinate the Various Kinds of Resources?
• The following slide Figure 1.1 illustrates how managers* combine and coordinate the various kinds of resources:
*a person in an organizatio n who is respo nsible for the work or performance of one or more persons
Measuring Managerial Performance
• Manager’s duty is to make sure that the organization achieves a high level of performance and its objective
• Its duty is to get thing done through people
• Manager’s performance can measured by looking at two criteria:
– Performance efficiency
– Performance effectiveness
• the ability to do the things right
• do something well with no waste of time, energy and money
• manager are able to utilize and minimize the cost of resources (staff, finance, equipment, raw material) are also considered efficient.
• choosing the right goals
• able to produce result that is wanted and intended; producing successful result
• i.e. if the demand for market for cars is for small, compact and economical cars, but the manager chooses to produce
and manufacture big, luxury and expensive cars, the manager is considered to be ineffective
What Is Management?
• A set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organization’s resources (human, financial, physical, and informational) with the aim of achieving organizational goals in an efficient and effective manner.
• Manager must perform management functions in order for a manager to effectively manage an organization.
• Management is a process that contains several functions/activities
The Management Functions
Planning and Decision Making
– Setting the organization’s goals and deciding how best to achieve them. Organizing
– Determining how best to group activities and resources. Leading
– Influencing the behaviors of others.
– Motivating memb ers of the organization Controlling
– Monitoring and correcting activities
• The manager’s primary responsibility is to carry out the management Function.
Kinds of Managers
Managing at Different Levels of the organization:
• Small group of executives who manage the overall organizatio n, the strategic level.
• i.e. CEO, President, SVP Middle Managers
• A large gro up that implement the strategies developed at the top.
• i.e. Marketing Manager, Production Manager, HR Manager
Kinds/Types of Managers :
First Type of Manager (By Level)
– Responsible for putting into operation the plans of higher and middle management
– Supervise and coordinate the activities of operating employees.
– i.e. foremen, production supervisor, technical supervisor
Second Type of Managers (By Activity)
• Second type of managers is classified by their range of organizational activities for which they are responsible for
• They are known as :
– Functional Manager
• Responsible for a single area of activity i.e. finance manager, marketing manager
– General Manager
• Responsible for more complex units that include many functional areas of activity i.e. plant manager
Basic Managerial Roles and Skills
Regardless of level or area within an organization, all managers must play certain roles and exhibit certain skills in order to be successful, such as:
– Do certain things.
– Meet certain needs.
– Have certain responsibilities.
BASIC MANAGERIAL ROLES (by Henry Mintzberg)
Interpersonal : Invol ve people and other duties that are ceremonial and symbolic in nature
• Liaison, Coordinator Information al : invol ve receiving, collecting and disseminating info.
• Spokesperson Decision al : Revol ve around making choices
• Disturbance Handler
• Resource Allocator
• Neg otiator
The Three Interpersonal Roles
– Department head/representative performing ceremo nial duties i.e. greeting visitors,, signing legal documents, cutting-ribbon ceremo ny
– Responsible for hiring/staffing, training and motivating subordinate
• Liaison, Coordinator
– A person who perform and interacts with other people outside the organization
The Three Informational Roles
– Seeks and receives wide variety of internal and external info to develop thorough understanding of organization and environment
– i.e. reading periodicals and report, maintaining personal contacts
– Transmits info received from outsiders or from subordinates to members of the organization
– Holding info meetings; making phone calls to pass information
– Transmit info to outsiders on organization’s plan, policies, actions, results, etc
– Holding board meeting; giving info to media
The Four DECISIONAL ROLES
– Search for opportunities, new ideas, improvement and initiate changes
– i.e. organizing strategy and review sessions to develop new programs
• Disturbance Handler
– Responsible for corrective action when organization faces important, unexpected disturbances
– organizing strategy and review session that involve disturbances and crises
• Resource Allocator
– Responsible for allocation of the resources in the organization
– i.e. scheduling, requesting authorization and budgeting
– Responsible for representing the organization at major negotiations
– i.e. participating in union contract negotiations
• In addition to fulfilling roles, managers also need a number of specific skills.
• The most fundamental management skills are:
– Time-man agement
• Necessary to accomplish or understand the specific kind of work being done.
• These skills are especially important for first line managers.
• The ability to communicate with, understand, and motivate both individuals and groups.
• Be able to get along with:
– Those at higher levels
• A manager’s ability to think in the abstract.
• The mental capacity to:
– Understand organizational goals and its environment.
– How the organization is structured.
– Viewing the organization as system.
• Skills that enable a manager to visualize the most appropriate response to a situation.
• A manager’s abilities both to effectively convey ideas and information to others and to effectively receive ideas and information from others.
• A manager’s ability to correctly recognize and define problems and opportunities and to then select an appropriate course of action to solve problems and capitalize on opportunities.
• The manager’s ability to prioritize work, to work efficiently, and to delegate appropriately.
Comprehensive Analysis of Management: The Classical Approach
The Classical Approach:
– Ideas of the early 20th century theorists and managers
– This perspective actually includes two different viewpoints:
• scientific management and
• administrative management.
• Concerned with improving the performance of individual workers.
• Frederick Taylor developed this system, which he believed would lead to a more efficient and productive work force.
• Whereas scientific management deals with the jobs of individual employees, administrative management focuses
on managing the total
• It is more appropriate for stable and simple organizations
Scientific vs Administrative Management
• Scientific management focused on employees within organization and on ways to improve their productivity.
• Administrative management focused on total organization and on ways to make it more efficient and effective.
Comprehensive Analysis of Management: The Contingency Approach
• also known as situational approach
• it says that organizations are different, face different situations (contingencies) and require different ways of managing
• organizations can vary by size, technology, environment uncertainty and individual differences
• Q: Identify three management skills and explain how the proportion of the skills need differ at each management level
– Conceptual Skills
– Interpersonal / Human Skills
– Technical Skills
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