Lecture 1. Principles Nature& MBO

8/4/2019 Lecture 1. Principles Nature& MBO

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Lecture 1. Nature & Principles of ManagementChapter Outline

1. Introduction to management & organizations2. Functions of a manager3. Mintzbergs managerial roles4. Managerial skills5. The changing organization6. Rewards & challenges of a manager7. Universal need of management

1.1. Introduction to management & organizations

ManagementThe organization and coordination of the activities of an enterprise in accordance with

certain policies and in achievement of defined objectives.

ManagerA management representative who coordinates and oversees the work of other people

in order to accomplish organizational goals. He works with and through other people

and the ultimate objective is to make things happen, done by others.

Levels of managers

First-line Managers: Individuals who

manage the work of non-managerial

employees.

Middle Managers: Individuals who

manage the work of first-line managers.

Top Managers: Individuals who are

responsible for making organization-

wide decisions and establishing plans and goals that affect the entire

organization.
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Management: Nature and PurposeManagement is the process of designing and maintaining an environment in which

individuals, working together in groups, accomplish efficiently selected aims. This basic

definition needs to be expanded:

1. As managers, people carry out the managerial functions of planning, organizing,

staffing, leading, and controlling.

2. Management applies to any kind of organization.

3. It applies to managers at all organizational levels.

4. The aim of all managers is the same: to create a surplus.

5. Managing is concerned with productivity; that implies effectiveness and efficiency.

Managerial concerns: Productivity, effectiveness & efficiencyAnother way to view the aim of all managers is to say that they must be productive.

After World War II the United States was the world leader in productivity. But in the late

1960s productivity began to decelerate. Today government, private industry, and

universities recognize the urgent need for productivity improvement.

Productivity: Successful companies create a surplus through productive operations.Although there is not complete agreement on the true meaning of productivity, we will

define it as the output-input ratio within a time period with due considerationfor quality.

Thus, productivity can be improved by

I. Increasing outputs with the same inputs

II. Decreasing inputs but maintaining the same outputs

III. Increasing output and decreasing inputs to change the ratio favorably.

Productivity implies effectiveness and efficiency in individual and organizational

performance.

Effectiveness isdoing the right things: i.e. the achievement of objectives.Efficiency is doing things right i.e. the achievement of the ends with the least amountof resources, getting most outputs for least inputs.


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To know whether they are productive, managers must know their goals and those of the

organization.

1.2. Functions of a manager

Functions Mode to performPlanning Defining vision, mission, objectives & goals; establishing strategies to

achieve goals, developing plans to integrate and coordinate activities.

Organizing Arranging and structuring work to accomplish organizational goals i.e.I. Division of labor

II. Delegation of authority

III. Departmentalization

IV. Span of control

V. Co-ordination

Staffing Staffing involves filling, and keeping filled, the positions in theorganization structure. This is done by identifying workforce

requirements, inventorying the people available, recruiting, selecting,

placing, promoting, planning the career, compensating, and training or

otherwise developing both candidates and current job holders to

accomplish their tasks effectively and efficiently.


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Functions Mode to performLeading Working with and through people to accomplish goals. Leading is

influencing people so that they will contribute to organization and group

goals; it has to do predominantly with the interpersonal aspect ofmanaging by

I. Motivation

II. Communication

III. Performance appraisal

IV. Discipline

V. Conflict resolution

Controlling Controlling is the measuring and correcting of activities of subordinates,to ensure that events conform to plans. It measures performance

against goals and plans, shows where negative deviations exist, and, by

putting in motion actions to correct deviations, helps ensure

accomplishment of plans. Although planning must precede controlling,

plans are not self-achieving.


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1.3. Mintzbergs Managerial RolesMintzberg has drawn up a multifaceted concept of managers work, identifying

interpersonal, informational and decisional roles within the overall umbrella

heading of the term manager. Note that all 10 roles set out by Mintzberg, involve

dealing with other people, even those that are not designated as interpersonal roles.

INTERPERSONAL Figurehead Performs ceremonial and symbolic duties such as

greeting visitors, signing legal documents

Leader Direct and motivate subordinates, training,

counseling, and communicating with

subordinates

Liaison Maintain information links both inside and outside

organization; use mail, phone calls, meetings

INFORMATIONAL Monitor Seek and receive information, scan periodicals

and reports, maintain personal contacts

Disseminator Forward information to other organization

members; send memos and reports, make phone

callsSpokesperson Transmit information to outsiders through

speeches, reports, memos

DECISIONAL Entrepreneur Initiate improvement projects, identify new ideas,

delegate idea responsibility to others

Disturbance

Handler

Take corrective action during disputes or crises;

resolve conflicts among subordinates; adapt to

environmental crises

Resource

Allocator

Decide who gets resources, scheduling,

budgeting, setting priorities

Negotiator Represent department during negotiation of union

contracts, sales, purchases, budgets; represent

departmental interests


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1.4. Managerial Skills and the Organizational HierarchyTechnical skill is knowledge of and proficiency in activities involving methods,

processes, and procedures. Thus it involves working with tools and specific techniques.

For example, mechanics work with tools, and their supervisors should have the ability to

teach them how to use these tools. Similarly, accountants apply specific techniques in

doing their job.

Human skillis the ability to work with people; it is cooperative effort; it is teamwork; it is

the creation of an environment in which people feel secure and free to express their

opinions.

Conceptual skillis the ability to see the "big picture," to recognize significant elements in

a situation, and to understand the relationships among the elements.

Design skillis the ability to solve problems in ways that will benefit the enterprise. To be

effective, particularly at upper organizational levels, managers must be able to do more

than see a problem. If managers merely see the problem and become "problem

watchers," they will fail. They must have, in addition, the skill of a good design engineer

in working out a practical solution to a problem.

Figure: Skills Needed at Different Management Levels

Conceptual

& Design

skills


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1.5. Rewards and Challenges of Being a Manager

1.7. Universal Need for ManagementGood management is needed in all organizations. Employees either manage or are

managed.

Lecture 1. Principles Nature& MBO

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