01 PRINCIPLES OF MANAGEMENT Sayed Gheyasuddin “SAADAT” sayedbba@gmail. com
What is an Organization? • A formal and coordinated group of people who function to achieve particular goals • An organization consists of a group of people striving to reach goals that individuals acting alone could not achieve.
What is Management • Management is the process of achieving organizational goals by engaging in the four major functions of planning, organizing, leading, and controlling. • Management is the process of managing the organizational resources efficiently and effectively to achieve the organizational goals.
Important Terms – Process: On going activity, Continuation. – Goal: Purpose that an organization strives to achieve; organizations often have more than one goal, goals are fundamental elements of organization. – Efficiency: The ability to make the best use of the available resources in the process of achieving goals. – Effectiveness: The ability to choose appropriate goals and achieve them
Major Functions of Management • Planning: The process of setting goals and deciding how best to achieve them. • Organizing: The process of allocating and arranging human and non-human resources so that plans can be carried out successfully. • Leading: The process of influencing others to engage in the work behaviors necessary to reach organizational goals. • Controlling: The process of regulating organizational activities so that actual performances conforms to expected organizational standards and goals. ------------------------------------------Resources: The total means available to a company for increasing production or profit, including plant, labour, and raw material; assets.
Major Functions of Management Planning: Controlling: Regulating or monitoring activities to reach goals Setting goals and deciding how best to achieve them Leading: Influencing or directing others to work towards goals Organizing: Allocating and arranging resources
Who’s a Manager? • A Manager is a person who is managing the resources of an organization in order to achieve organizational goals. • An employee who is charged with making decisions, leading people, and delegating authority in order to accomplish the goals of the organization.
Vertical Levels of Management Basic Level of Management Top Level Manager Middle Level Managers Lower level Managers
Top Level Managers • Top Level Managers are those who are at the very top levels of the organizational hierarchy and who are ultimately responsible for the entire organization. • They are few of them and typical titles include ‘Chief Executive Officer (CEO), General Manager’ etc. • They typically supervise overall organization planning, work with the middle managers in implementing the planning and maintain control over the organization’s progress
Middle Level Managers • Middle Level Managers include those Managers who are at the Mid level of the organizational hierarchy. They are below the top level managers and are directly responsible for the work of lower-level managers. • Middle Level Managers’ titles include “Director, Chief, Department Head, Division Head etc. ” • They are mainly responsible for implementing overall organizational plans to achieve organizational goals.
Lower Level Managers • First Line Managers work at the lowest hierarchy level and are directly responsible for the work of nonmanagerial employees. Their titles often include the word “Supervisor”. • First-line managers are very important for the success of organization as they are responsible for smooth day-to-day operations in order to achieve those goals.
Use of Management Functions at different hierarchical Levels Planning Organizing Leading Controlling First Liner Manager Middle Managers Top Managers
Management Level and Skills
First-Line Managers Middle Managers l Skills s al Skill echnic T ca Techni Top Managers cal Techni Skills an S Hum n. S uma H kills al Skills nceptu Co kills eptual S Conc ual S oncept C
Key management skills Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired performance are required to help other employees become more productive. These skills fall under the following categories: • Conceptual skills: Skills related to the ability to visualize the organization as a whole, discern, interrelationships among organizational parts, and understand how they organization fit into the wider context of the industry community and world.
Conceptual skills. Continued… • This skill calls for the ability to think analytically. Analytical skills enable managers to break down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one problem for others. • As managers assume ever-higher responsibilities in organizations, they must deal with more ambiguous problems that have long-term consequences. Again, managers may acquire these skills initially through formal education and then further develop them by training and job experience. The higher the management level, the more important conceptual skills becomes.
Key management skills • Human Skills: Skills associated with a manager’s ability to work well with others, both as a member of group and as a leader who gets things done through others. • This skill demonstrates the ability to work well in cooperation with others. Human skills emerge in the workplace as a spirit of trust, enthusiasm, and genuine involvement in interpersonal relationships.
Human Skills. Continued… • A manager with good human skills has a high degree of self-awareness and a capacity to understand or empathize with the feelings of others. Some managers are naturally born with great human skills, while others improve their skills through classes or experience. No matter how human skills are acquired, they're critical for all managers because of the highly interpersonal nature of managerial work.
Key management skills • Technical Skills: Skills reflecting both an understanding of and proficiency in a specialized field. • This skill requires the ability to use a special proficiency or expertise to perform particular tasks. Accountants, engineers, market researchers, and computer scientists, as examples, possess technical skills. • Managers acquire these skills initially through formal education and then further develop them through training and job experience. Technical skills are most important at lower levels of management.
Functions of a Manager: 1. Planning: It is the basic function of management. Planning is deciding in advance - what to do, when to do & how to do. A plan is a future course of actions. • Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for achievement of goals. • Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc. • Planning deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of goals.
Planning… Continued… Example for a running organization, the organization's goal is to improve company sales. The manager first needs to decide which steps are necessary to achieve that goal. These steps may include • increasing advertising, • inventory and Distribution, • Increase sales staff. • Training the current sales staff These necessary steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales.
2. Organizing: • After a plan is made, a manager needs to organize the organization according to his plan. Organizing function of a manager involves the following tasks: • Making department in the organization Hiring the staff for the organization acquiring the Resources for each department of the organization.
3. Leading: A manager needs to do more than just plan, organize, and staff his team to achieve a goal. He or She must also Leading involves motivating the employees of the organization by communicating with them, guiding them and encouraging them. It requires the manager to coach, assist, and solve problems with employees. 4. Controlling: After the other elements are in place, a manager's job is not finished. He needs to continuously check results against the goals and take any corrective actions necessary to make sure that his plans remain on track.
Identify Management Functions: Activity 1. Decide whether to open a second pizza shop 2. Assign job duties 3. Check register slips to ensure proper prices are being charged 4. Provide incentives for employees 5. Check that pizzas are prepared on time 6. Decide what new menu items to offer 7. Hire experienced cooks 8. Determine profit margins to be achieved for the year 9. Institute an employee suggestion program 10. Monitor the pizza shop opening and closing times as compared to the schedule Planning Organiz Leading Controll ing
Mintzberg’s Managerial Roles • A role is a set of behaviours associated with a particular job or position. • Henry Mintzberg studied CEOs at work and created a scheme to define what managers do on the job. These are commonly referred to as Mintzberg’s Managerial Roles. • These can be grouped into three primary headings: Interpersonal, Informational and Decisional 25
Mintzberg’s Managerial Roles 1. Interpersonal roles grow directly from a manager’s position authority and involve development and maintaining positive relationships with significant others. 2. Informational roles relate to the receiving and transmitting information so managers can serve as their organizational units’ nerve centers. 3. Decisional roles involve making significant decisions affecting the organization.
INTERPERSONAL Role Description Identifiable Activity Figurehead Manager serves as an official representative of the organization or unit Greeting visitors; signing legal documents Leader Manager guides and motivates staff and acts as a positive influence in the workplace Staffing, training Liaison Manager interacts with peers and with people outside the organization to gain information Acknowledging mail/email; serving on boards; performing activities that involve outsiders 27
INFORMATIONAL Role Description Identifiable Activity Monitor Manager receives and collects information Reading magazines and reports; maintaining personal contacts Communication (Disseminator) Manager distributes information within the organization Holding meetings; making phone calls to relay information; email/memos Spokesperson Manager distributes information outside the organization Holding board meetings; giving information to the media 28
DECISIONAL Role Description Identifiable Activity Entrepreneur Manager initiates change Organizing sessions to develop new programs; supervises design of projects Disturbance Handler Manager decides how conflicts between subordinates should be resolved Steps in when an employee suddenly leaves or an important customer is lost Resource Allocator Manager decides how the organization will use its resources Scheduling; requesting authorization; budgeting Negotiator Manager decides to negotiate major contracts with other organizations or individuals Participating in union contract negotiations or in those with 29 suppliers
Horizontal Dimension: Responsibility Areas • Functional Managers – Specific, technical focus • General Managers – Broad, whole of organisation/unit responsibilities • Project Managers – Integrative, team focus
Functional Managers • Managers with responsibility for a specific, specialized area of the organization who supervise mainly individuals with expertise and training in that area.
General Managers • Managers with responsibility for a whole organization or a substantial subunit including most of the common specialized areas.
Project Managers • Managers with responsibility for coordinating efforts involving individuals in several different organizational units all working on a particular project
Questions
Thank You
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