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Lesson 01

Introduction to Organization and Management

Madushi Pussella
Lecturer, Department of Maritime Transportation Management &
Logistics MadushiP@ocu.ac.lk, mandakinimp66@gmail.com
0710980067
07/08/2024 MaE 501 Industrial Management 1
Learning Outcomes
After completing this session, students should be able to:
 Define organization, business and business organization
 Define management and understand core concepts of management
 Identify and understand management as a process of planning,
organizing, leading and controlling
 Understand managers
 Identify different types managers based on managerial levels
 Identify and understand skills need to be an effective manager
 Identify and understand managerial roles

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Outline

• Define Organization
• Need of organizations
• Define Management
• Core concepts of management
• Management process
• Need of management
• Define Manager
• Types of managers
• Managerial skills
• Managerial roles

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What is an Organization ?

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An Organization - Definitions

 A group of people who work together in a structured way for a shared


purpose
(Cambridge Advanced Learners Dictionary)

 An organization is a two or more people who work together in a structured


way to achieve a specific goal or set of goals.
(Stoner and Freeman,2009)

 An organization is a deliberate arrangement of people to accomplish some


specific purpose.
(Robbins and Coulter, 2007)
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Why we need Organizations?

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What is a Business ?

A business is an any economic activity carried out to satisfy human needs


and wants

Business Organization

A business organization is a collection of individuals and deliberately


structured entity which produces goods and/or services utilizing limited
resources to achieve its specific goals and objectives.

Apply to all organizations: for profit, non-profit and not-for -profit.


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Bases for Classification of Business Organizations

 Objective
 Product
 Ownership
 Scale
 Technology
 Market Etc.

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Objectives of Business Organizations

 What is an objective?
Objectives are those end results toward which the organizational
activities are directed.
(Koontz and Donnel)

 Classification of objectives
Objectives can be classified based on the level of significance and
time horizon.

 Multiple objectives of an organization


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Whose objective/s should be served by a
business?
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Trade Political
Unions Parties

Stakeholders
of an Customers

organization General
Community
Media Debtors
Employees

Business
Competitors Organizations Suppliers

Educational
Owners
Institutions
Government Creditors

Customers

Trade
Associations
Financial
Institutions

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Management in Business Organizations

Business

Organisatio Managemen
n t

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Management Definitions

Management is the art of getting things done through other


people -Mary Parker Follet (1868-1933)

Management is the art of getting things done through and with people in
formally organized group -Koontz

Management is the process of planning, organizing, commanding,


coordinating and controlling - Fayol (1930)

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Cont. …

Management is the process of planning, organizing, leading and


controlling, the efforts of organization members and of using all other
organizational resources to achieve organizational goals
(Stoner and Freeman,2009)

Management is the attainment of organizational goals in an effective and


efficient manner through planning, organizing, leading and controlling
organizational resources (Daft,2012 )

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Cont....

Hence, Management can be broadly defined as a process of


planning, organizing, leading and controlling the limited resources
efficiently and effectively to achieve predetermined goals and
objectives in an ever changing business environment.

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Management in Organizations
Environment

Planning Organizing

Inputs from the environment


• Human resources Goals Attained
• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources

Controlling Leading

Source: Adapted from Van Fleet, David D., Contemporary Management, Second Edition

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Core Concepts of Management

 Resources
 Efficiency
 Effectiveness
 Productivity
 Process
 Goals/Objectives
 Environment
( Core Concept is a notion or an idea, and in this context it refers to the key terms used to define and understand what
management is?)
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Limited Resources

Money Information

Minutes
Machines
Men

Material

Methods
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Resources

An organization's resources include,


 Human Resources
 Financial Resources
 Physical Resources
 Information Resources
(Griffin,2012)

19
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Effectiveness & Efficiency

Efficiency:
The degree to which limited resources are
optimally used.

Effectiveness:
The degree to which the intended results are
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Management – as a Process

Planning

Controlling Organizing

Leading

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21
Four Functions of Management

(Jones and George, 2008)


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Why Management?

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Who is a Manager?

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Manager/s
 The people responsible for directing the efforts aimed at helping organizations achieve their goals.
(Stoner, Freeman and Gilbert, 2008)

 Someone who coordinates and oversees the work of other people so that organizational goals can
be accomplished.
(Robbins and Coulter, 2012)

 Someone whose primary responsibility is to carry out the management process.

(Griffin,2012)

In general we can define a manager as someone who performs management functions in an


organization.

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Types of Managers

 The Level of Authority (Managerial Levels)


First line managers
Middle managers
Top managers
 Scope of the Activities
Functional managers
General managers

 Responsibility of the Activities


Line managers
Staff managers

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Classification of Managers by the Managerial Level

Top Managers – responsible for performance of the entire organization. They


develop organization’s vision, mission, goals and monitor middle-line
managers

Middle Managers – supervise first-line managers. They are also


responsible to find the best way to use departmental resources to
achieve goals

First-line Managers – responsible for day-to-day operations.


They supervise employees performing activities required to
make goods and services

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Types of Managers based on the Scope of Activities in an
Organization
General
Manager

Production Marketing
Marketing Finance
Finance HR
HR
Manager Manager
Manager Manager
Manager Manager
Manager

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Classification of Managers by the
Responsibility
General
Manager

Production Marketing Finance HR


Manager Manager Manager Manager
Direct Responsibility Indirect Responsibility

Line Staff
Managers Managers
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Managerial Skills

Managerial skills is generally a pre-requisite for management success.


(Certo and Certo 2009)

What type of skills do managers need?


Robert L. Katz proposed that managers need three critical skills in
managing an organization.
 Conceptual skills
 Human skills
 Technical skills

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Relative Skills Needed for Effective Performance at Different Levels
of Management

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What Managers Do?

Henry Mintzberg’s Managerial Roles

Managerial roles refers to specific actions or behaviors expected of and


exhibited by a manager.
(Robbins and Coulter, 2011)

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Key Managerial Roles (Mintzberg)

Key
KeyManagement
Management
Roles
Roles

Informational
Informational Decisional
Decisional
Interpersonal
InterpersonalRoles
Roles Roles
Roles Roles
Roles
 Figurehead
Figurehead  Monitor
Monitor  Entrepreneur
Entrepreneur
 Leader
Leader  Disseminator
Disseminator (Innovator)
(Innovator)
 Liaison
Liaison  Spokesperson
Spokesperson  Disturbance
Disturbance
Handler
Handler
 Resource
ResourceAllocator
Allocator
 Negotiator
Negotiator

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33
To
Tobe
bean
aneffective
effectiveand
andefficient
efficientmanager,
manager,we
weneed
need

Knowledge Skills Positive


Knowledge Skills PositiveAttitudes
Attitudes

Know-what Know-how Positive


Positiveattitudes
attitudeson
onwork
work
Know-what Know-how

Positive
Positiveattitudes
attitudeson
onpeople
people

General
GeneralSkills
Skills Specific
SpecificSkills
Skills Positive
Positiveattitudes
attitudeson
onenvironment
environment

Conceptual
Conceptual Positive
Positiveattitudes
attitudeson
onself
self
Skills
Skills

Technical
TechnicalSkills
Skills

Human
HumanSkills
Skills

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Management and the New Work Place

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The New Workplace
New workplace Old workplace
 Forces
technology digital mechanical
markets global local, domestic markets
workforces diverse homogeneous
pace change, speed stability, efficiency
events turbulent calm, predictable

 Characteristics
resources information, knowledge physical assets
work flexible, virtual structured, localized
workers empowered loyal

 Management competencies
Leadership dispersed, empowering autocratic
doing work by teams by individuals
relationships collaboration conflict, competition
design experimentation, learning top down control

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Manager’s Role

Or, be adaptive and survive ? ? ?

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Point to think...

What is really management?


 Has it succeeded?
 Is it simple as we discussed?

Then why
World Economic Crisis?
Labour Issues?
Protests? etc.

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Be prepared for
Session 03

Functions of Management

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Thank you!

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