Introduction to Business

FUNDAMENTALS OF FUNDAMENTALS OF MANAGEMENTMANAGEMENT

Chapter # 7PART I

Shafayet Ullah SECTION: A3 and A4

What is Management?What is Management?

Management is the “Art of Getting Things Done Through People”.

In other words, the manager coordinates the work of others to accomplish goals that might not be achievable by an individual.

ManagementManagementManagement may be defined as the application of planning, organizing, staffing, directing and controlling functions in the most efficient manner possible to accomplish objectives.

Organization is a systematic arrangement of people to accomplish some specific purpose.

OrganizationOrganization

EfficiencyEfficiencyThe relationship to output to input ratio and focuses on getting the maximum output with minimum resources. Efficiency is often referred to as “doing things right”.

Effectiveness refers to goal attainment. When managers achieve their organization’s goal then it is called they are effective. Effectiveness can be described as “doing the right things”.

EffectivenessEffectiveness

Difference between Difference between Efficiency and EffectivenessEfficiency and Effectiveness

Since efficiency is all about focusing on the process, importance is given to the “means” of doing things whereas effectiveness focuses on achieving the “end” goal.

Goal

A broadly stated guideline that an organization or and individual is attempting to achieve.

Example: To Earn a BBA Degree

Objectives

Objectives are specific results or targets to be reached by a certain time.

Objectives are specific, state what is to be accomplished and indicate when it will achieved.

Example: To Earn a BBA Degree by the year 2013 with a minimum CGPA of 3.75

Organizational ObjectivesOrganizational Objectives

Departmental Objectives

Subunit Objectives

Individual Objectives

Objectives

Objectives

Cascade Approach

A procedure for setting objectives in which the objectives are set from the top level of management down.

ObjectivesCascade Approach process provides direction to lower-level managers as the goals are converted to objectives from the top down:

• A clear statement of organizational purpose is issued

• Long range goals are developed from this statement

• Long range goals are converted into specific

performance objective

• Objectives are then developed for each subunit in

each department

• Within the subunits, challenging but attainable

personal objectives are set

ObjectivesObjectives are Important for several reasons:

• To focus attention on the

organization’s mission

• To help integrate the work of the

organization

• To help measure an organization’s

performance

Levels of Management

As enterprise grow from an owner to a group to a corporation, a number of managerial levels are created and they begin to take on a shape.

ManagersIndividuals in an organization who direct the activities of others are called Managers.

Levels of Management

Top ExecutivesThe executives are the managers at or near the pinnacle of the organization who are responsible for making the decisions and setting the policies that affect all aspects of the organization.Example: President, CEO, Vice Chancellor

Middle Level ManagersThe middle managers are all levels of management between the supervisory level and the top level of the organization.Example: Plant Manager, Project Director, Dean

Levels of Management

First-Line ManagersThe First-Line Managers are the supervisors. They are responsible for the details needed to coordinate the work to the workers/employees. Supervisors must work directly with employees and motivate them to perform satisfactory work.Example: Product Manager, Supervisors

Operating EmployeesThe non-managers in an organization, who perform specific tasks and usually manufacture a product or service for customers. They do not have the responsibility of overseeing the work of others.Example: Factory workers

Levels of Management

Management Functions

Planning Planning is the management function of establishing objectives and developing plans to accomplish them.

OrganizingOrganizing is the management function of grouping people and assignments to carry out job tasks the mission.

StaffingStaffing is the management function of selecting, placing, training, developing and compensating subordinates.

Management Functions

Management Functions

Directing

Directing is the management function of initiating action: issuing directives, assignments and instructions.

Controlling

Controlling is the management function of checking to determines whether employees are following plans and progress is being made and of taking action to reduce discrepancies.

END OF PART I