Managing Organization

Part A- Principles of Management

Module I : Management
Working with and through individuals, groups, and other resources to accomplish organizational goals and objectives. A process of designing and maintaining an environment in which individuals, working together in groups accomplish effectively organizational goals

Conventional meaning of management getting the work done through others.

Moderns meaning of management is

developing people through work

Management

Management refers to the tasks and activities involved in directing an organization or one of its units: planning, organizing, leading, and controlling.
The process of reaching organizational goals by working with and through people and other organizational resources.

Management
Organization Two or more people who work together in a structured way to achieve a specific goal or set of goals.
Goals Purpose that an organization strives to achieve; organizations often have more than one goals, goals are fundamental elements of organization. The Role of Management To guide the organizations towards goal accomplishment

Definition of Management
By Koontz and Weihrich: Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims. By Griffin: A set of management functions directed at the efficient and effective utilization of resources in the pursuit of organization goals.

Definition of Management

Terry & Franklin

Management is a distinct process consisting of activities of planning, organizing, actuating, and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.

Then what is your definition ?

Basic Managerial Functions

Organizing

Planning

Leading

Controlling

Planning involves tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.

Planning
Determining organizational goals and means to reach them Managers plan for three reasons
1. Establish an overall direction for the organizations future

2. Identify and commit resources to achieving goals

3. Decide which tasks must be done to reach those goals

Organizing means assigning the planned tasks to various individuals or groups within the organization and cresting a mechanism to put plans into action.

Organizing

Process of deciding where decisions will be made, who will perform what jobs and tasks, and who will report to whom in the company Includes creating departments and job descriptions

Leading (Influencing) means guiding the activities of the organization members in appropriate directions. Objective is to improve productivity.

Leading
Getting others to perform the necessary tasks by motivating them to achieve the organizations goals Crucial element in all functions
Discussed throughout the book and in depth in Chapter 15Dynamics of Leadership

1. Gather information that measures recent performance 2. Compare present performance to pre-established standards 3. Determine modifications to meet pre-established standards

Controlling
Process by which a person, group, or organization consciously monitors performance and takes corrective action

Three Levels of Management

Top Managers

Middle Managers
First-line Managers Non-management

First-line Managers
Directly responsible for production of goods or services

Employees who report to first-line managers do the organizations work

Spend little time with top managers in large organizations

Technical expertise is important

Rely on planning and administration, self-management, teamwork, and communication competencies to get work done

Middle Managers
Responsible for setting objectives that are consistent with top managements goals and translating them into specific goals and plans for first-line managers to implement Responsible for coordinating activities of first-line managers Establish target dates for products/services to be delivered Need to coordinate with others for resources Ability to develop others is important Rely on communication, teamwork, and planning and administration competencies to achieve goals

Top Managers
Responsible for providing the overall direction of an organization
Develop goals and strategies for entire organization

Spend most of their time planning and leading

Communicate with key stakeholdersstockholders, unions, governmental agencies, etc., company policies Use of multicultural and strategic action competencies to lead firm is crucial

Management Level and Skills

- People responsible for directing the efforts aimed at helping organizations achieve their goals. - A person who plans, organize, directs and controls the allocation of human, material, financial, and information resources in pursuit of the organizations goals.

Function: A classification referring to a group of similar activities in an organization like marketing or operations. Functional Managers: A manager responsible for
just one organizational activity such as accounting, human resources, sales, finance, marketing, or production
Focus on technical areas of expertise Use communication, planning and administration, teamwork and selfmanagement competencies to get work done

(contd)

General Managers: responsible for the operations

of more complex unitsfor example, a company or division
Oversee work of functional managers Responsible for all the activities of the unit Need to acquire strategic and multicultural competencies to guide organization

Many Other types of managers

Managerial Roles

Described by Mintzberg.
A

role is a set of specific tasks a person performs because of the position they hold.

Roles are directed inside as well as outside the organization. There are 3 broad role categories: 1. Interpersonal 2. Informational 3. Decisional

Interpersonal Roles

Roles managers assume to coordinate and interact with employees and provide direction to the organization. Figurehead role: symbolizes the
organization and what it is trying to achieve. Leader role: train, counsel, mentor and encourage high employee performance. Liaison role: link and coordinate people inside and outside the organization to help achieve goals.

Informational Roles

Associated with the tasks needed to obtain and transmit information for management of the organization. Monitor role: analyzes information from

both the internal and external environment. Disseminator role: manager transmits information to influence attitudes and behavior of employees. Spokesperson role: use of information to positively influence the way people in and out of the organization respond to it.

Decisional Roles

Associated with the methods managers use to plan strategy and utilize resources to achieve goals. Entrepreneur role: deciding upon new projects or programs to initiate and invest. Disturbance handler role: assume responsibility for handling an unexpected event or crisis. Resource allocator role: assign resources between functions and divisions, set budgets of lower managers. Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or shareholders.

Skills for Manager

There are three skill sets that managers need to perform effectively. 1. Conceptual skills: the ability to analyze and diagnose 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.

Evolution of Management Thought

The systematic study of management did not begin in earnest until after 1900. The Egyptian pyramids required managed effort. Information Overload

Management has not had a systematically recorded body of knowledge until recently. Today, vast amounts of relevant information are readily available in print and electronic media.
The manifold increase in management theory information is due largely to its interdisciplinary nature in drawing from several fields (e.g., psychology, mathematics, economics, history, and engineering).

An Interdisciplinary Field

No Universally Accepted Theory of Management

There are several approaches to the theory and practice of management.

The The The The The

universal process approach operational approach behavioral approach systems approach contingency approach

Universal Process
Henry Fayol

Operational

Behavioral

Systems

Contingency

Frederick Taylor

The Hawthorne Studies

Chester I. Barnard

Frank & Lillian Gilbreth

Elton Mayo Henry Gantt Mary Parker Follet Walter Shewhart Douglas McGregor Kaoru Ishikawa W. Edwards Deming Joseph M. Juran Armand V. Feigenbaum Philip B. Crosby

General Systems Theory

Henri Fayols 14 Principles Of Management

1. Division Of Work
Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.

2. Authority
The right to issue commands, along with which must go the balanced responsibility for its function.

3. Discipline
Employees must obey, but this is twosided: employees will only obey orders if management play their part by providing good leadership.

4. Unity Of Command
Each worker should have only one boss with no other conflicting lines of command.

5. Unity of Direction
People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.

6. Subordination of individual interest

Management must see that the goals of the firms are always paramount.

7. Remuneration
Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system

8. Centralization (Or Decentralization)

This is a matter of degree depending on the condition of the business and the quality of its personnel.

9. Scalar chain (Line of Authority)

A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be overstretched and consist of too-many levels

10. Order
Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.

11. Equity
In running a business a combination of kindliness and justice is needed. Treating employees well is important to achieve equity.

12. Stability of Tenure of Personnel

Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.

13. Initiative
Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of personal vanity on the part of many managers.

14. Esprit de Corps

Management must foster the morale of its employees. He further suggests that: real talent is needed to coordinate effort, encourage keenness, use each persons abilities, and reward each ones merit without arousing possible jealousies and disturbing harmonious relations.

Learning Framework for Managing

Part I: Overview of Management

Part II: Managing the Environment Part III: Planning and Control Part IV: Organizing
Part V; Leading