Organization and Management

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Nature and Concept of Management

Nature and Concept of Management

This lesson discusses about Organizations and Management focuses on
the study of how individuals and groups interact within organizations, and
how firms interact with one another and with consumers, employees,
communities and institutions. The Organization management binds the
employees together and gives them a sense of loyalty towards the
organization.
To start our discussion we may discuss the meaning and functions of
management, explain the various types of management theories, and we
also explain the functions, roles and skills of manager.

Topic Outline:
1. Definition and functions of management
2. Functions roles, and skills of a manager

Definitions
Management
− the process of designing and maintaining an environment in which
individuals, working together in groups, efficiently accomplish
selected aims.
− Management is concerned with productivity, which implies
effectiveness and efficiency.

Productivity, Effectiveness, and Efficiency

Productivity: The output-input ratio within a time period with due
consideration for quality.
Outputs
Productivity 
Inputs
The formula indicates that productivity can be improved by:
a) Increasing outputs with the same inputs
b) Decreasing inputs but maintaining the same outputs
c) Increasing outputs and decreasing inputs to change the ratio
favorably

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 Effectiveness: “Doing the right things”: the task that help an organization
reach its goals.
Efficiency” “Doing things right”: the efficient use of such resources as
people, money and equipment.

Managers
− the term manager is a person who has responsibility for the activities
of other people in an organization.

Three main types of managers

 General
General Managers focus on the entire business
 Functional
Functional managers specialize in a particular unit or department.
 Frontline Managers
Frontline managers oversee primary production activities on a daily basis, so
they need very high interpersonal and technical skills.

Management Levels

Top
Managers

Middle Managers

First line Managers

Non-managerial employees

Figure 1.1
 Top Managers
 Make decisions about the direction of the organization
Examples: President, Chief Executive Officer, Vice-President
 Middle Managers
 Manage the activities of other managers
 Organization and Management
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Nature and Concept of Management

Examples: District Manager, Division manager

 First-line Managers
 Direct non-managerial employees
Examples: Supervisors, Team leaders
Four Management Functions
Management operates through four basic functions: Planning, Organizing,
Leading, and Controlling.
 Planning involves the choice of the objectives to be pursued, the means
to achieve them, and allocating the resources of the organization.
 Planning requires that managers be aware of environmental
conditions facing their organization and forecast future conditions. It
also requires that managers be good decision-makers.

 Organizing involves identifying, subdividing, grouping and coordinating

the various activities required to achieve the objectives of the institution.
 Decisions must be made about the duties and responsibilities of
individual jobs as well as the manner in which the duties should be
carried out. Decisions made about the nature of jobs within the
organization are generally called "job design" decisions.
 Staffing involves the recruitment, selection, assignments, and
development of the various kinds of human resources required by the
organization.
 Leading involves influencing others toward the attainment of
organizational objectives.
 Effective leading requires the manager to motivate subordinates,
communicate effectively, and effectively use power. If managers are
effective leaders, their subordinates will be enthusiastic about
exerting effort toward the attainment of organizational objectives.
 Controlling involves ensuring that performance does not deviate from
standards.
 Controlling consists of three steps, which include establishing
performance standards, comparing actual performance against
standards, and taking corrective action when necessary. Performance
standards are often stated in monetary terms such as revenue, costs,
or profits, but may also be stated in other terms, such as units
produced, number of defective products, or levels of customer service.
Henry Mintzberg’s Managerial Roles
A. Interpersonal Roles: roles that involve coordination and interaction
with employees

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  Figurehead role: role which s assumed by managers when they
represent their respective units in the outside world in ceremonial and
civic activities. Managers expected to be a source of inspiration. People
look up to you as a person with authority, and as a figurehead.
 Leader role - is the role played by managers when they initiate and
coordinate activities in their units. Provide leadership for the team,
department or perhaps the entire organization.
 Liaison role: is needed by unit heads when they interact with persons in
other units within and outside the organizations. Managers need to be
able to network effectively on behalf of your organization.
B. Informational Roles: roles that involve handling, sharing, and analyzing
information
 Monitor or recipient role (receive information about the operation of
an enterprise) - Managers regularly seek out information related to your
organization and industry, looking for relevant changes in the
environment. You also monitor your team, in terms of both their
productivity, and their well-being.
 Disseminator role (passing information to subordinates) - This is where
you communicate potentially useful information to your colleagues and
your team.
 Spokesperson role (transmitting information to those outside the
organization) - Managers represent and speak for their organization. In
this role you're responsible for transmitting information about your
organization and its goals to the people outside it.
C. Decisional Roles: roles that require decision-making
 Entrepreneur role - As a manager, you create and control change within
the organization. This means solving problems, generating new ideas, and
implementing them.
 Disturbance handler role - When an organization or team hits an
unexpected roadblock, it's the manager who must take charge. You also
need to help mediate disputes within it.
 Resource allocator role - Managers need to determine where
organizational resources are best applied. This involves allocating
funding, as well as assigning staff and other organizational resources.
 Negotiator role - Manager may be needed to take part in, and direct,
important negotiations within your team, department, or organization.

Management Skills
Skill - An ability or proficiency in a specific area. It is to be expected that
managers would need equally varied capabilities and skills.
Robert Katz identified three managerial skills that are essential to successful
management:
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Nature and Concept of Management

 Technical skill involves process or technique knowledge and

proficiency. Managers use the processes, techniques and tools of a
specific area.
 Human skill involves the ability to interact effectively with people. It
involves motivating and disciplining employees, monitoring performance,
providing feedback, improving communication and instructing employees
 Conceptual skill is the ability to analyze complex information. It enables
managers to process information about the internal/external
environment of the organization and determine its implications.
Therefore, technical skill deals with things, human skill concerns people,
and conceptual skill has to do with ideas

References
Rodriguez, R.A., "Fundamentals of Management"
Wiehrich, H., Cannice, M.V., Koontz, H., "Management, A Global and
Entrepreneurial Perspective, 13th Ed."

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