Part I - Ch01 = Nature of Management for ISBS

7/31/2019 Part I - Ch01 = Nature of Management for ISBS

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Managersand Managing

1


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Management : Art orScience??

Science deals with knowledge acquisitionwhile Art deals with knowledge

application.

While Science provides with theprinciples and theories , Art helps to put

them into practice and hence emphasizes

on experience.

Thus, Science + Art is an ideal

combination.


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Why Do Theories fail?

1. Lack of proper understanding of thetheory

2. No consideration given for system

effects

3. Lack of specific applicability of a

theory4. Lack of universal applicability

5. Wrong theory


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Management Principles

Increase efficiencyDescriptive and predictive, but notprescriptive.

Provide scope for future researches.


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Management principles aim to attain social

objectives- How??

We take resources from the society and give

output to the society. The standard of living of

the society depends upon the quality of

management. If management is efficient, theresources are utilized efficiently thereby,

enhancing the standard of livelihood.


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Definition Management: The process of designing

and maintaining an environment in

which individuals working together in

groups efficiently achieve selected aims-Harold Koontz

The Process of planning, organizing,

actuating and controlling, performed todetermine and accomplish the objectives

by use of people and resources.

-George Terry


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Key Concepts

Organizations:People working togetherand coordinating their actions to

achieve specific goals.

Goal: A desired future condition that

the organization seeks to achieve.


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Management Is

Effectiveness

Efficiency

Gettingworkdone throughothers


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Organizational PerformanceEffectiveness and Efficiency

Measures how efficiently and effectively managers useresources to satisfy customers and achieve goals.

Productivity = Output/ Input

Efficiency: A measure of how well resources areused to achieve a goal.Managers must try to minimize the input of

resources to attain the same goal.

Effectiveness: A measure of the appropriateness ofthe goals chosen (are these the right goals?), and thedegree to which they are achieved.

Organizations are more effective when managerschoose the correct goals and then achieve them.


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Achieving High PerformanceOrganizations must provide products/services

desired by its customers.

Ratan Tata provides Tata Nano forprice and quality conscious customers.

Physicians, nurses and health careadministrators seek to provide healingfrom sickness.

McDonalds localizes its contents ofburgers, fries and shakes so that people

get what they want.


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High performance is said to be achieved when

maximum output has been produced with

minimum input.

Organizational performance is achieved when

organization effectiveness (OE) is achieved.

OE depends upon variety of external and

internal factors.

External factors are those outside theorganization while internal factors are those

within the organization.


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McKinseys 7 S frameworkMckinseys 7 S framework

provides internal variables

that affect organizational

effectiveness :

Strategy Structure

Staff

System Styles

Skills

Shared Values

Managers must

view these

variables intotality rather

than in isolation

to achieve

organizationalperformance.


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Additional Key Concepts

Resources are organizational assets andinclude:

People,

Machinery, Raw materials, Information, skills, Financial capital.

Managers: People responsible for supervisingthe use of an organizations resources to meetits goals.


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Managerial Functions

Henry Fayol was the first to describe thefour managerial functions when he was theCEO of a large mining company in the

later 1800s.Fayol noted managers at all levels,operating in a profit or non profit

organization, must perform each of thefunctions of:

POSDCORB + I + R


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Four Functions of Management

Choose Goals

Planning

Monitor & measure

Innovation

OrganizingWorkingtogether

LeadingCoordinate

Controlling Innovation

Innovation Representation

Representation


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Planning: determines the strategy of the

organization; What should be done? How

and when it should be done? where itshould be done? etc.

Organizing: Managers create the structure

of working relationships betweenorganizational members that best allows

them to work together and achieve goals.

Staffing - Managers recruit and ensure

that there is enough manpower to fill

various positions in the organization.


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Leading: Managers determine direction,

state a clear vision for employees to

follow, and help employees understandthe role they play in attaining goals.

Coordinating: Managers need to

establish harmony among individual

efforts towards organizational goals.

Controlling: managers evaluate howwell the organization is achieving its

goals and takes corrective action to

improve performance.


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Innovation: Provide creative ideas that

result in new product development or

find new uses of the old ones.

Representation: Manager needs to

represent his organization to variousgroups that have their stakes in the

organizational.


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Levels of Management

Top

Middle

First-Line


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Management Levels

Organizations often have 3 levels of managers:First-line Managers: responsible for day-to-day

operation. They supervise the people performingthe activities required to make the good orservice.

Middle Managers: Supervise first-line managers.They are also responsible to find the best way touse departmental resources to achieve goals.

Top Managers:Responsible for the performance ofall departments and have cross-departmentalresponsibility. They establish organizational goalsand monitor middle managers.

M g i l R l


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Managerial Roles-Mintzberg

A role is a set of specific tasks a person performsbecause of the position they hold. Roles aredirected inside as well as outside the organization.Manager plays the following roles:

Figurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

InformationalInterpersonal Decisional


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What Challenges Do ManagersFace?

Developing the appropriate skillsfor managerial work

Avoiding typical managerialmistakesMaking the transition from individual

contributor to manager

Skill Th C i L k


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Skills That Companies LookFor

Top

Managers

Middle

Managers

LineManagers

Conceptual

Skills

Human

Skills

TechnicalSkills

Human Skills

Human Skills


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There are three skill sets that managers need to

perform effectively.

1. Conceptual skills: the ability to analyze anddiagnose a situation and find the cause and effect.

2. Human skills: the ability to understand, alter,

lead, and control peoples behavior.3. Technical skills: the job-specific knowledge

required to perform a task. Common examples

include marketing, accounting, and

manufacturing.

All three skills are enhanced through formal

training, reading, and practice.


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Mistakes Managers Make

6 McCall & Lombardo, What Makes a Top Executive? Psychology Today, Feb 1983

1. Insensitive to others

2. Cold, aloof, arrogant

3. Disloyalty

4. Overly ambitious

5. Specific performance problems with the business

6. Overmanaging: unable to delegate or build a team

7. Unable to staff effectively

8. Unable to think strategically

9. Unable to adapt to boss with different style

10. Over dependent on advocate or mentor

Th Fi Y M


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The First Year ManagementTransition

7

Exercise formal

authority

Manage tasks,not people

Help employeesdo their jobs

Hire and fire

Cannot be bossy

Manage people,not tasks

Coach employeeperformance

Fast pace,

heavy workload

Initial Assumptions Reality

F M M


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Few More ManagementChallenges

Increasing number of global organizations. Building competitive advantage through

superior efficiency, quality, innovation, and

responsiveness. Increasing performance while remaining

ethical managers.

Managing an increasingly diverse work force. Using new technologies.

Part I - Ch01 = Nature of Management for ISBS

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Transcript of Part I - Ch01 = Nature of Management for ISBS