WHAT IS MANAGEMENT

The process of integrating resources and tasks to wards the achievement of

goals.
Managers are responsible for giving directions to the organization. They
translate goals into unit objectives, organize resources (people, finances and
equipment) in a manner to achieve results and too see that stated goals are
met.

THE PROCESS OF MANAGEMENT

All managers regardless of their particular organizational affiliation engage in

a systematic, interrelated set of activities designed to achieve an objective.

1. First Managers focus on deciding what to do. This involves establishing the
framework for performance, or planning the work to be done. This involves
integrating the influence of the external environment with the resources and
goals of the organization.

2. Secondly managers decide How to do it ;establishing order & function and

design their unit to achieve the stated goals. This involves selecting people to
make up team; training them for the specific jobs, establishing authority,
responsibility and acquiring and allocating the necessary financial and
physical resources.

3. Third, a concern for directing performance becomes dominant which

means focus is on leading employees in the most effective manner. This
involves improving workers motivation and cooperation between groups etc.

4. Fourth, mangers become involved in evaluating performance . This is the

control function, which involves evaluating individual and group performance,
financial indicators of efficiency and effectiveness and investigating any
problems that may have developed in communication, resource allocation or
inter personal relationships.

TYPE OF MANAGEMENT
Executive Managers
Sometimes called top management this small group of individuals make up the highest level of
management. Managers inn these positions are responsible for interacting with representatives
of the external environment (e.g. Financial institutions, government and political figures,
important suppliers and customers) establishing organizational goals, plans, strategies and broad
operating policies and guidelines. Their titles usually include president, CEO,COO, executive vice
president, vice president etc.
Middle Level Managers
A number of management levels are included within this category, such as the position of
General Managers, plant managers and operations superintendent. The responsibilities include
translating executive orders into operation, implement plans and directly supervising lower level
managers. This is the most important management level and forms center of the organization's
activity.
First Line Managers
Characterized as sales manager, lab supervisors etc. their responsibilities include directing first
line non-supervisory staff. Additional duties include evaluation of day to-day performance,
quality control, inventory and preventive maintenance.

RESPONSIBILITIES

A second way of describing types of managers is to distinguish between Line

& Staff responsibilities. A line managers responsibilities have a direct impact
the products or services of the organization. They generally include sales &
marketing and plant managers.

A staff managers responsibilities and duties support the activities of Line

Managers. Examples are managers of HR, finance, R & D and accounts etc.

MANAGERIAL FUNCTIONS
DEVELOPING THE FRAMEWORK FOR PERFORMANCE: PANNING
Planning is the most important managerial function because it sets the
pattern for the other activities to follow. Planning encompasses four elements:
1.

Evaluating environmental forces and organizational resources.

2.

Establishing a set of organizational goals.

Developing strategies and plans to achieve the stated goals.
Allocation of resources (financial, human and physical), statement of
responsibility for all levels of management and a timetable of expected
implementation.

3.
4.

ESTABLISHING ORDER, FUNCTION AND DESIGN:

ORGANIZING
Once management has established goals and developed plans to
achieve these goals, the emphasis moves to designing. Three
elements are essential to organizing:
1.
2.
3.

Developing the structure of the organization.

Acquiring and training Human Resource.
Establishing communication patterns and networks.

DIRECTING EMPLOYEE PERFORMANCE: LEADING

The essentials of leading, directing or motivating is getting the organizations

employees to perform in ways that will assist in achieving the defined goals.
The three components that make up leading function are:

2.

Motivating employees
Influencing employees

3.

Forming effective groups.

1.

EVALUATING PERFORMANCE: CONTROLLING

The major objective of a control system is ensuring that the organization is

moving towards achieving the formulated goals. Three basic components
constitute the control function:
1.

Translating organizational goals into performance standard & a formal

evaluation system.

2.

Rewarding employee performance.

Controlling resources by cost analysis, inventory, production or quality
control.

3.

A FRAMEWORK OF PERFORMANCE
1. Performance Criteria
The concept of performance involves different standards e.g. effectiveness,
productivity, satisfaction, innovation, adaptability, attendance etc.
2. Level of Analysis
This factor concerns whether Performance criteria apply to the individual, group,
department or society.
3. Performance Focus
i.

Maintenance Performance usually designed to maintain a specific level of activity.

ii.

Improvement Performance usually described when some change, increase/decrease

is desired.

iii.

Developmental performance activities related to growth, learning or advancement

4.

Time Frame

Putting performance activities in some time frame stresses the

need to consider Goal Attainment in
i.

Short term

ii.

Intermediate

iii.

and Long term perspective.

5.

Performance Measurement
Performance measurement usually involves the use of:

i.

Objective/Quantifiable data to which some hard number can be

assigned as a value, such as sales $, % reduction in cost or
number of days allotted to
project completion.

ii.

Subjective on the other hand usually involves obtaining an

opinion through perceptual means. Job satisfaction measures
or evaluation of subordinate performance are examples.

Distribution of Managers Time

Executive Managers
Change ; 20%

Planning; 35%

Control ; 10%

Leading ; 15%
Organizing; 20%
Planning

Organizing

Leading

Control

Change

Sales Level Managers

Middle
10%

Planning; 15%

Control ; 10%

Organizing; 25%

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Leading ; 40%

Planning

Organizing

Leading

Control

Change

First Line Managers

5%

Planning; 10%

Control ; 20%

Organizing; 10%

Leading ; 55%
Planning

Organizing

Leading

Control

Change

FAMILY OWNED BUSINESSES SETH ORGANIZATIONS

Family owned enterprises refer to those businesses in which the family either
owns the business or have enough clout and power to avoid any risk of being
voted out.

Heirs to large family fortunes are less likely to fund innovative ventures, more
likely to entrench their management and more likely to preserve their wealth
through political lobbying.

Since FOBs have personal interest, fewer committees, hierarchies and other
constituencies therefore decision making is faster, but the right of family members
to intervene at any stage of the decision making makes the management cautious
at every stage and sometimes dilutes the effects of fast decision making process.

These enterprises are less likely to use stock options for senior management in
order to retain control within the family and are therefore are less likely to attract
top quality external managers as compared to their counterparts in pubic owned
enterprises. To economize this shortage FOBs tend to utilize financial rather
strategic control of their assets and use the same tool to assess the performance
of the sub units.

FOBs rely heavily on social capital accumulated by personal contacts to gain

competitive advantage by accessing strategic information and lobbying with
influential govt. officials and politicians for securing favors for the business.