Chapter 1

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Welcome to

Introduction to
Management

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 We are born in an organization (a family). Live
in organizations (society) and work in
organizations (Business, Government, Army,
School, College etc.). .).
 Each one of these organizations is a group of

persons working together to achieve some


common objectives.
 The central agency which performs this task is

known as management.

Department of Management, 2013E.C


Compiled By: Asho.Y. (MBA) 2
• definition
– Management is a process consisting of planning, organizing,
activating & controlling performed to determine &
accomplish the objectives by the use of people and resources
/George R Terry/

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Department of Management, 2013 E.C Compiled By: Asho.Y. (MBA)
•F.W. Taylor -“Art of knowing what to do, when to do and then

seeing that it is done in the best and cheapest way”.

•Henry Fayol –“To Manage is to forecast, to plan, to organize, to

command, to co-ordinate and to control”.

•Peter F. Drucker –”Management is work and as such it has its

own skills, its own tools and its own techniques”.

•Mary Parker Follet- “Management is the art of getting

things done through and with people”.


Department of Management, 2013 E.C
Compiled By:Asho.Y. (MBA) 4
 Working definition:
Management is the process of planning, organizing,
staffing, leading and controlling the activities of an
organization to achieve its objectives.
From the view point of d/t authors , :
 (1) Management is a process.
 (2) Management is a discipline.
 (3) Management is a human activity.
 (4) Management is a career.

 Peter Drucker said “There are no underdeveloped


countries as such but under managed only.”
Department of Management, 2013 E.C
Compiled By: Asho.Y. (MBA)
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Effectiveness
– Achieved when the organization pursues appropriate goals.
– This means “doing the right things.”
Efficiency
– Achieved by using the fewest inputs (e.g., people and money) to
generate a given output.
– This means “doing things right.”
• The end result of effective and efficient management is
organizational success.

Department of Management, 2013 E.C Compiled By: Asho.Y (MBA)

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Department of Management, 201 E.C Compiled By: Asho.Y (MBA)

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 An Organization
◦ A group of individuals who work together
toward common goals.
 What do all organizations have in common?

◦ They are composed of people whose efforts must


be coordinated if the organization is to
accomplish its goals.

Department of Management, 2013 E.C Compiled By: Asho.Y (MBA)

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CHARACTERISTICS OF ORGANIZATIONS

 Have a distinct purpose (goal)


 Compose of people
 Have a deliberate structure

 Managers are the people who plan, organize,


lead, & control the activities of the
organization so that its goals can be achieved.

Department of Management, 2013 E.C Compiled By: Asho.Y. (MBA)

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 To meet the challenges & complexities of
business.
 It assures efficiency (utilizing available

resources).
 It creates teamwork & coordination among

employees.
 It directs & controls organizations to achieve

the desired goal


 It improve life of work.
 Increase efficiency
 Reduce waste
Department of Management, 2013 E.C Compiled By: Asho .Y (MBA)

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It creates an environment of new ideas, vision,
& imagination for better and greater
performance.
It helps as a guide in attacking business

problems.
Is a tool of personality development of people

as to increase efficiency and performance


Is an agent of change & economic development.

Department of Management, 2013 E.C Compiled By: Asho.Y (MBA)

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 Science
 Art
 •Empirically Derived
•Practical know how  Critically tested
•Technical skills  General principles
•Tangible results
 Cause and effect/ship
•Creativity
•Personalized nature  Universal applicability
Department of Management, 2013 E.C
Compiled By: Asho.Y(MBA)
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UNIVERSALITY OF MANAGEMENT

Department of Management, 2013 E.C Compiled By: Asho.Y (MBA)

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WHAT DO MANAGERS DO?

Three categorization schemes:


 Management Functions
 Management Roles
 Management Skills

,Department of Management, 2013 E.C Compiled By: Asho .Y (MBA)

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Process of Management

Planning
Choose Goals

Controlling Organizing
Monitor & measure Working together

Directing
Coordinate
Staffing
Employment
Department of Management, 2013 E.C
Compiled By: Asho .Y.(MBA) 15
• Planning
 Planning means “the determination of what is to be done,
how and where it is to be done, who is to do it, and how the
results are to be evaluated.”
 It is pre-determined course of action
 Organizing : refers to the systematic arrangement of
different aspects of the business operations to achieve the
planned objectives.
 consists of grouping people and assigning activities so that
job tasks and the mission can be properly carried out.
Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)

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- Involves selecting and placing the right person at the right
position.
- Managing positions of organizational structure.
- Includes identifying the gap between manpower required and
available.
• Leadership
– The capacity to direct and motivate the members of work groups toward
the accomplishment of organizational goals.
• Leadership Skills:
– Understanding individual/group behavior dynamics
– Having the ability to motivate employees
– Being an effective communicator
– Being able to envision future and share that vision
Department of Management, 2013 E.C Compiled By: Asho Y.(MBA) 17
• Monitoring the performance of the organization and
its progress in implementing strategic and
operational plans.
• It includes:
- what is required to achieve goals
- measuring what actually happened and or is being
done.
– Identifying deviations between planned and actual
results.
– Taking corrective action
– Ensuring that the organization is moving toward the
achievement of its goals.
Department of Management, 2013 E.C Compiled By: Asho.Y. (MBA)

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 A profession may be defined as an occupation that
requires specialized knowledge and intensive academic
preparations :
 Specialized Knowledge
 Formal Education & Training
 Social Obligations
 Code of Conduct
 Representative Association

HUAC., Department of Management, 2013 E.C Compiled By: Asho.Y. (MBA) 19


1.4 MANAGERIAL LEVELS
(The Management Hierarchy)

HUAC, Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)

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HUAC, Department of Management, 2013 E.C Compiled By: Asho.y. (MBA) 21
1,First line managers
Eg. production supervisor. The objective is to ensure
that the products and services of their organizations are
delivered to customers on a day-to day basis.
Main functions are
Plan daily and weekly activities and
accomplish them based on monthly, quarterly
and annual plan.
Assigning employees to specific jobs
Issue instructions at the workplace
HUAC, Department of Management, 2013 E.C Compiled By: Asho. Y.(MBA)

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 Follow up, motivate and evaluate workers
 Send reports to their concerning body
 Keep a watch on workers performance
 Evaluate and make close contact with
workers
2,Middle managers
They perform as a linkages between top
managers and first line managers.

HUAC Department of Management, 2013 E.C Compiled By: Asho Y. (MBA)

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 The objective is to allocate resource effectively
and manage the first line managers who
supervise the work group so that the overall
goals of the organization can be achieved.
 Middle level manager main functions are

◦ Acting as an intermediary between top and


operational level of management.
◦ Translating long term plans in to medium
range plans.

HUAC Department of Management, 2013 E.C Compiled By: Asho .Y.(MBA)


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◦ Developing specific targets (in their area of
responsibility).
◦ develop specific schedule (to guide action and
facilitate control)
◦ coordinate inputs, productivity and outputs of
operating levels of management
3,Top level managers (an eye on the outside)
eg. CEO, They provide strategic direction for the
organization.
 Have the ability to think, analyze causes, effects and
consequences.

HUAC , Department of Management, 2013 E.C Compiled By: Asho .Y.(MBA)


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Main functions are
Create organization’s goals, overall strategies and
operating policies.
Officially represent the organization to the external
environment/ parties by meeting with government
officials, executives of other organizations, and so forth.
Providing effective organizational structure that
insures integration.
Providing overall leadership and direction.
Making overall control of the organization.
Analyzing changes in the external environment and
respond to it.
make decisions about such activities:
HUAC., Department of Management, 2013 E.C Compiled By: Asho .Y.(MBA)
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• Role is the basic behavior that is expected in a
particular situation.
• The work of Henry Mintzberg is widely used to
explain the roles that managers typically perform.
• There are three categories of roles that have been
found:
1. Interpersonal roles
2. Informational roles
3. Decisional roles.

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HUAC, Department of Management, 2013 E.C Compiled By: Asho .Y.(MBA)
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HUAC , Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)
◦ The manager’s responsibility for managing
relationships with organizational members
and other constituents:
1, Figurehead (perform certain duties that are
primarily ceremonial in nature,
e.g. The supervisor who attends the wedding of
the mechanic operator.
2. Leader (they work with and through their
employees to ensure that the organization’s goal are
met).
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HUAC, Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)
3,Liaison (they coordinate the activities between
individuals and work groups within the organization
and develop favorable relationship with outside
organization, e.g social responsibility)
 Ithelps to seek support from people who can affect
the organization’s success.
2, Informational Roles
– The manager’s responsibility for gathering and
distributing information to the stakeholders of the
organization (communication center and source)

HUAC, Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)
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1. Monitor (managers continually scan the internal
and external environments of their organizations
for useful information – opportunities and threats
2. Disseminator (managers share and distribute the
information so that the employees can perform their
work)
3. Spokesperson (managers must often communicate
information to individual outside their units and their
organization).

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AMU, Department of Management, 2006 E.C Compiled By:Asho .Y. (MBA)
The manager’s responsibility for processing information
and reaching conclusions:
1. Entrepreneur (managers initiates projects that capitalizes on
opportunities that have been identified)
2. Disturbance handler (they must cope with conflict and handle
disturbances)
. Resource allocator (managers determine which projects will receive
organizational resources)
4. Negotiator (managers spend a good portion of their time
negotiating with employees, suppliers and others.

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HUAC , Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)
• Technical Skills
– The ability to utilize the knowledge of tools,
techniques, and procedures that are specific to a
particular field.
• Human Skills
– The ability to work effectively with one’s own work
group as well as others within the organization.
• Conceptual Skills
– The ability to process information about the
internal/external environment of the organization and
determine its implications.
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HUAC, Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)
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HUAC, Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)
 Technical skills tend to be most
important for first line managers.
 Human skills are most important for

middle managers because these


managers must coordinate the efforts
of members of one’s work group as
well as coordinate with other work
group within the organization.
 The top level managers need to have

strong conceptual skills if they are to


effectively accomplish their jobs.

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HUAC Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)
Good Manager Not-so-good Manager
Technical
 Professional,  Lack of Knowledge
 Good will, willing to  Not Organized
share his knowledge  Difficult to find,
Human always not in the
 Good coordinator

office
Gain People’s support
 Charming
 Talking but not
 Friendly working
 Nice
 Highly paid
Conceptual  Careless
 Ability to think  Not communicate
 Logical with Team members
 Fast mover  Not care about group
 Chance/ Risk Taker members
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HUAC, Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)
 Is Management an art, Science, or profession?
Explain each with relevant examples.

HUAC, Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)

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HUAC Department of Management, 2013 E.C Compiled By: Asho .Y. (MBA)

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