Principles of Management

Chapter – 1
Part 1
Management:
1. Management involves the process of planning, organizing, directing, and controlling resources
to achieve specific goals and objectives.
2. It is necessary to manage resources such as people, finances, materials, and information to
achieve organizational success.
3. Effective management involves making decisions, delegating tasks, coordinating activities, and
monitoring progress toward achieving goals.
4. Managers are responsible for leading and motivating employees, communicating with
stakeholders, and adapting to changes in the environment.
5. There are various types of management, including general management, project management,
human resource management, financial management, and operations management.
6. Management requires specific skills and knowledge, including leadership, communication,
problem-solving, and decision-making abilities.
7. Effective management is essential for organizational success, growth, and sustainability.
8. The principles of management are universal and applicable in various industries and sectors.

Who are managers and where do they work:

Managers are individuals who are responsible for overseeing a group of employees or a specific
area of an organization. They are responsible for planning, organizing, directing, and controlling
the resources of the organization to achieve specific goals and objectives.

Managers can be found in a variety of industries and sectors, including:

1. Business: Managers in the business sector work in areas such as marketing, finance, human
resources, operations, and sales.
2. Healthcare: Managers in the healthcare sector oversee healthcare facilities, clinics, and
hospitals to ensure quality patient care.
3. Education: Managers in the education sector manage schools, colleges, and universities to
ensure the effective delivery of education to students.
4. Non-profit: Managers in the non-profit sector manage organizations that provide services to
the community, such as charitable organizations, social service agencies, and environmental
groups.
5. Government: Managers in the government sector manage public services, such as
transportation, utilities, and public safety.
 Managers typically have a range of responsibilities, including:

1. Setting goals and objectives for the organization or department they oversee.
2. Developing plans to achieve these goals and objectives.
3. Allocating resources, such as budgets, personnel, and equipment, to achieve these plans.
4. Supervising and managing employees to ensure that they are working effectively and efficiently.
5. Communicating with stakeholders, such as employees, customers, and investors, to ensure that
they are informed and engaged in the organization's activities.
6. Analyzing data and making decisions ensures that the organization operates efficiently and
effectively.

Overall, managers play a crucial role in the success of an organization, regardless of the sector
in which they work.

Who is a manager:
A manager is an individual who is responsible for overseeing a group of employees or a specific
area of an organization. They plan, organize, direct, and control resources to achieve specific
goals and objectives. A manager makes decisions, delegates tasks, coordinates activities, and
monitors progress toward achieving organizational goals. Managers can be found in various
industries and sectors, and they play a crucial role in the success of an organization.

Classification of managers:
1. Top-level managers: These are executives who are responsible for setting the overall strategy
and direction of the organization. Examples include:
 Tim Cook, CEO of Apple Inc.
 Jeff Bezos, former CEO of Amazon.com Inc.
 Mary Barra, CEO of General Motors Company
 Satya Nadella, CEO of Microsoft Corporation
2. Middle-level managers: These managers are responsible for implementing the strategies and
plans set by top-level managers. Examples include:
 John Smith, Vice President of Sales at Coca-Cola Company
 Emily Chen, Director of Human Resources at Google Inc.
 Tom Johnson, Chief Financial Officer at Ford Motor Company
 Karen Lee, Operations Manager at McDonald's Corporation

3. First-line managers: These managers have direct responsibility for a team of non-managerial
staff who produce goods or services. Examples include:
 Sarah Rodriguez, Production Supervisor at Procter & Gamble
 Mike Brown, Retail Store Manager at Walmart
 Susan Kim, Customer Service Manager at Delta Air Lines
 Alex Patel, Shift Manager at Starbucks Corporation
4. Non-managerial staff: These are employees who do not have managerial responsibilities.
Examples include:
 Rachel Lee, Sales Associate at Nike Inc.
 Ben Thompson, Accountant at PwC
 Luis Hernandez, Customer Support Representative at American Express
 Mary Johnson, Production Worker at General Electric Company

Where do managers work:

1. Private sector: Managers can work in for-profit companies, ranging from small businesses to
large corporations, in various industries such as technology, healthcare, finance, and retail.
2. Public sector: Managers can work in government agencies, at the federal, state, or local levels,
in areas such as education, transportation, defense, and healthcare.
3. Non-profit sector: Managers can work in non-profit organizations, such as charities,
foundations, and social service agencies, which serve various causes and communities.
4. Small businesses: Managers can work in small businesses, such as family-owned shops or
startups, where they may have multiple roles and responsibilities.

Overall, managers can work in a wide range of settings, depending on their industry,
organization, and level of responsibility. They play a critical role in the success of any
organization by planning, organizing, directing, and controlling resources to achieve specific
goals and objectives.

Why managers are important:

Managers are important because they play a critical role in the success of any organization.
Here are some reasons why:

1. Planning: Managers are responsible for setting goals and developing strategies to achieve them.
They create plans for their team or department that align with the organization's overall
objectives.
2. Organizing: Managers organize resources, including people, materials, and equipment, to
ensure that they are used efficiently and effectively. They design processes and systems to
achieve the goals of the organization.
3. Directing: Managers motivate and guide their employees to achieve their goals. They provide
guidance, training, and feedback to help employees develop their skills and reach their
potential.
4. Controlling: Managers monitor performance and take corrective action when necessary. They
use performance metrics and data to ensure that their team is on track to achieve its goals.
5. Inspire you professionally and personally
• Energize you and your coworkers to accomplish things together that you couldn’t
get done by yourself
• Provide coaching and guidance with problems
 • Provide you feedback on how you’re doing
• Help you to improve your performance
• Keep you informed of organizational changes
• Change your life

Overall, managers are important because they help organizations achieve their objectives by
aligning resources, motivating employees, and monitoring performance. They ensure that the
organization is operating efficiently and effectively, which ultimately leads to success.

What do managers do:

Managers are responsible for planning, organizing, directing, and controlling resources to
achieve specific goals and objectives. They use their skills and knowledge to ensure that their
organization is operating efficiently and effectively. One-line attributes of what managers do
include:

1. Set goals and develop strategies to achieve them.

2. Organize resources to ensure efficiency and effectiveness.
3. Motivate and guide employees to achieve their goals.
4. Monitor performance and take corrective action when necessary.
5. Recruit, hire, and train employees.
6. Develop and manage budgets.
7. Solve problems and find effective solutions.
8. Adapt to changing circumstances and environments.
9. Communicate effectively with stakeholders.
10. Lead and inspire their team to achieve success.

Management Function(POLC):
Management functions are the core activities that managers perform to achieve the goals and
objectives of their organization. There are four main functions of management, which are:

1. Planning: This involves setting goals and developing strategies to achieve them. Managers
create plans for their team or department that align with the organization's overall objectives.
2. Organizing: This involves organizing resources, including people, materials, and equipment, to
ensure that they are used efficiently and effectively. Managers design processes and systems to
achieve the goals of the organization.
3. Directing: This involves motivating and guiding employees to achieve their goals. Managers
provide guidance, training, and feedback to help employees develop their skills and reach their
potential.
4. Controlling: This involves monitoring performance and taking corrective action when necessary.
Managers use performance metrics and data to ensure that their team is on track to achieve its
goals.

Mintzberg Managerial Roles and a contemporary model of Managing:

The Mintzberg managerial roles are categorized under three sections—interpersonal,
informational, and decisional. These three categories comprise 10 roles of a manager. To be a
good leader, you have to manage your teams by leveraging strengths, resolving conflicts, and
prioritizing tasks

Managerial:
1. Decision-Making
Sound decision-making skills are essential, especially for managers and team leaders. From
leading critical meetings to overseeing team responsibilities, being an effective manager means
analyzing complex business problems and implementing a sound plan moving forward. 
2. Self-Awareness
Healthy self-awareness is what makes you a high-performing individual. It’s because you use
emotional intelligence and empathy to navigate your workplace relationships. By assessing
yourself, you can gain insight into your strengths and weaknesses and use them to reflect on
your interactions with your teams. It even helps you enhance professional development. 
3. Build Trust
The core tenet of successful teams is establishing trust and credibility. If you want your
employees to be on the same page and function together with minimal conflicts, you need to
be able to build trust-rich relationships. The more individuals trust each other, the easier it is to
promote teamwork and collaboration. 

Interpersonal:

1. Figurehead
As head of a department or an oorganization a manager is expected to carry out ceremonial
and/or symbolic duties. A manager represents the company both internally and externally in all
matters of formality.

He is a networker but he also serves as an exemplary role model. He is the one who addresses
people celebrating their anniversaries, attends business dinners and receptions.

2. Leader
In his leading role, the manager motivates and develops staff and fosters a positive work
environment. He coaches and supports staff, enters into (official) conversations with them,
assesses them and offers education and training courses.

3. Liason
A manager serves as an intermediary and a linking pin between the high and low levels. In
addition, he develops and maintains an external network.

As a networker he has external contacts and he brings the right parties together. This will
ultimately result in a positive contribution to the organization.

Informational:

4. Monitor
As a monitor the manager gathers all internal and external information that is relevant to the
organization.

He is also responsible for arranging, analyzing and assessing this information so that he can
easily identify problems and opportunities and identify changes.

5. Disseminator
As a disseminator the manager transmits factual information to his subordinates and to other
people within the organization.

This may be information that was obtained either internally or externally.

6. Spokesman
As a spokesman the manager represents the company and he communicates to the outside
world on corporate policies, performance and other relevant information for external parties.

Decisional

7. Entrepreneur
As an entrepreneur, the manager designs and initiates changes and strategies.
8. Disturbance handler
In his managerial role as disturbance handler, the manager will always immediately respond to
unexpected events and operational breakdowns. He aims for usable solutions.

The problems may be internal or external, for example conflict situations or the scarcity of raw
materials. .

9. Resource allocator
In his resource allocator role, the manager controls and authorizes the use of organizational
resources.

He allocates finance, assigns employees, positions of power, machines, materials and other
resources so that all activities can be well-executed within the organization.

10. Negotiator
As a negotiator, the manager participates in negotiations with other organizations and
individuals and he represents the interests of the organization.

This may be in relation to his own staff as well as to third parties. For example salary
negotiations or negotiations with respect to procurement terms.

Management Skill:

1. Technical Skills
Technical skills involve skills that give the managers the ability and the knowledge to use a
variety of techniques to achieve their objectives. These skills not only involve operating
machines and software, production tools, and pieces of equipment but also the skills needed to
boost sales, design different types of products and services, and market the services and the
products.

2. Conceptual Skills
These involve the skills managers present in terms of the knowledge and ability for abstract
thinking and formulating ideas. The manager is able to see an entire concept, analyze and
diagnose a problem, and find creative solutions. This helps the manager to effectively predict
hurdles their department or the business as a whole may face.

3. Human or Interpersonal Skills

The human or the interpersonal skills are the skills that present the managers’ ability to
interact, work or relate effectively with people. These skills enable the managers to make use of
human potential in the company and motivate the employees for better results.

These skill includes:

Planning

Communication

Decision making

Delegation

Problem-solving

Motivating

How a manager’s job is changing:

Focus on:
Customer
With the rise of customer-centric business models, managers are increasingly focused on
understanding and meeting customer needs. This requires a deep understanding of customer
behavior and preferences, as well as the ability to design products and services that meet those
needs.

Technology
 Technology is rapidly transforming the way businesses operate, and managers need to stay up-
to-date with the latest trends and tools. This includes not only technical skills but also the
ability to identify and implement new technologies that can improve efficiency and
productivity.

Social media
Social media has become an important channel for businesses to engage with customers and
build brand awareness. Managers need to understand how to use social media effectively and
develop strategies that leverage social media to drive business results.

Innovation
With competition increasing in many industries, innovation has become a key driver of growth
and success. Managers need to foster a culture of innovation within their organizations and
develop processes and systems that support the development of new ideas and products.

Sustainability
1. Many companies are placing greater emphasis on sustainability and social responsibility.
Managers need to be able to develop and implement strategies that promote sustainability
while still driving business results.
Employee
1. Finally, managers need to be able to attract, retain, and develop talented employees. This
requires a deep understanding of employee needs and motivations, as well as the ability to
provide meaningful feedback and support for professional growth and development.

Why study management:

1. To learn how to effectively manage people and teams.
2. To develop skills in problem-solving and decision-making.
3. To gain a broad understanding of business principles and practices.
4. To improve communication and leadership skills.
5. To increase job opportunities and advance in a career.
6. To develop skills in planning, organizing, and executing projects.
7. To gain knowledge of finance, accounting, marketing, and other important business functions.
8. To prepare for entrepreneurship and starting a business.
9. To gain exposure to global business practices and cultures.
10. To increase earning potential and job security.