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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.
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