Overview of Management

Dr.T.Mangaleswaran

Senior Lecturer

Vavuniya Campus

Learning Outcomes• Explain the meaning of management• Understand organization and its performance• Explain the Managers and their types• Summarize the essential roles of managers• Describe the essential skills for managers• Describe the process of management• Discuss some major changes in management • Discuss the principal challenges managers face

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What is Management?

• Management is the process of working with people and resources to accomplish organizational goals.

• Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. (Daft,2012)

• Organizational resources include men(human beings), money, machines and materials.

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What is Management? Cont…

• 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)

• 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)

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Management?

• 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.

• The ultimate aim of management is to enhance the organizational productivity and performance.

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Characteristics of Management

• Management is a distinct process.• Management is an organized activity• Management aims at the accomplishment of

predetermined objectives. • Management is both a science and an art. • Management is a group activity• Management principles are universal in nature• Management integrates human and other

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Why Study Management?1. To maximize the utilization of scarce resources

2. To face the increasing competition for inputs and outputs

3. To enhance the quality of the products and services

4. To adopt/plan for the changes in the business environment

5. Helps people deal with their bosses and coworkers

6. Opens a path to a well-paying job and a satisfying career

7. Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work.

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What is an Organization?

• 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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What is an Organization? Cont..

• An Organization is– An arrangement of people and resources to accomplish

some specific purpose

• An organization can be any structured body such as department, business, company in private or public sector or nonprofit association.

• Common Characteristics of Organizations– Have a distinct purpose (goal)– Composed of people– Have a deliberate structure

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Contemporary Management 1–10

The Changing Organization

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Organizational Performance• A measure of how efficiently and effectively

managers use available resources to satisfy customers and achieve organizational goals

• Efficiency – A measure of how well or how productively

resources are used to achieve a goal

• Effectiveness– A measure of the appropriateness of the goals an

organization is pursuing and the degree to which they are achieved.

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1-12Figure 1.112/26/14 Contemporary Management

Efficiency and Effectiveness

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Who is responsible for supervising the use of an organization’s resources to meet its goals?

A. Team leaderB. ManagerC. PresidentD. Resource allocator

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Manager/s

• Managers – The people responsible

for supervising the use of an organization’s resources to meet its goals.

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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)

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Types of Managers

• The Level of Authority (Levels of Managers)

1) First line managers

2) Middle managers

3) Top managers• Scope of the Activities

1) Functional managers

2) General managers• Responsibility of the Activities

1) Line managers

2) Staff managers

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Level of Managers

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Time that Managers Spend on the Managerial Functions

Figure 1.412/26/14 Contemporary Management

Scope of Activities

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Manager’s Roles

• Mintzberg

1) Interpersonal role

2) Informational role

3) Decisional role

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Decisional Roles

• Roles associated with methods managers use in planning strategy and utilizing resources1) Entrepreneur—deciding which new projects or programs

to initiate and to invest resources in.

2) Disturbance handler—managing an unexpected event or crisis.

3) Resource allocator—assigning resources between functions and divisions, setting the budgets of lower managers.

4) Negotiator—reaching agreements between other managers, unions, customers, or shareholders.

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Interpersonal Roles

• Roles that managers assume to provide direction and supervision to both employees and the organization as a whole1) Figurehead—symbolizing the organization’s mission and

what it is seeking to achieve.

2) Leader—training, counseling, and mentoring high employee performance.

3) Liaison—linking and coordinating the activities of people and groups both inside and outside the organization.

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Informational Roles

• Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization.1) Monitor—analyzing information from both the internal

and external environment.

2) Disseminator—transmitting information to influence the attitudes and behavior of employees.

3) Spokesperson—using information to positively influence the way people in and out of the organization respond to it.

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Managerial Roles

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Discussion

• Try to view some real-life situations from the management perspectives – what are the relevant management issues /problems you faced? Who is playing the manager’s role? How is he/she perform? What would be your suggestions/solutions?

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Managerial Skills

• Technical skills• Human skills• Conceptual skills

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Technical Skills

• A persons’ knowledge and ability to make effective use of any process or technique constitutes his technical skills.

• Example: Engineer, Accountant, Data entry operator, Lawyer, Doctor etc.

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Human Skills

• An individuals’ ability to cooperate with other members of the organization and work effectively in teams.

• Example: Interpersonal relationships, solving people’s problem and acceptance of other employees.

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Conceptual Skills

“Ability of an individual to analyze complex situations and to rationally process and interpret available information”.

Example: Idea generation and analytical process of information.

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What Makes a Good/Not-so-good Manager?

Technical Skills• Professional, • Goodwill, willing to share

his knowledgeHuman Skills

• Good coordinator• Gain People’s support• Charming• Friendly• Nice

Conceptual Skills• Ability to think• Logical• Fast mover• Chance/ Risk Taker

• Lack of Knowledge• Not Organized• Difficult to find, always not in

the office• Talking but not working• Highly paid• Not presentable• Careless• Not communicate with Team

members• Not care about group

members

Good Manager Not-so-good Manager

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Skill Types Needed

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Mistakes Managers Make

6 Adapted from Exhibit 1.5McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983

1. Insensitive to others1. Insensitive to others

2. Arrogant (over confidence)2. Arrogant (over confidence)

3. Betrayal (disloyalty) of trust3. Betrayal (disloyalty) of trust

4. Overly (excessively) ambitions 4. Overly (excessively) ambitions

5. Specific performance problems with the business5. Specific performance problems with the business

6. Overmanaging: unable to delegate or build a team6. Overmanaging: unable to delegate or build a team

7. Unable to staff effectively7. Unable to staff effectively

8. Unable to think strategically 8. Unable to think strategically

9. Unable to adapt to boss with different style9. Unable to adapt to boss with different style

10. Overdependent on advocate or mentor10. Overdependent on advocate or mentor

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What make managers successful?

• Hard work• Smart work• Patience• Out of box thinking• Reading and acquiring knowledge• Ethical consciousness (awareness)• Collaborative relationship• Perseverance (firmness)

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Rewards and Challenges of Being A Manager

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How the Manager’s Job is Changing?• The increasing importance of Customers

– Customers: the reason that organizations exist• Managing customer relationships is the responsibility

of all managers and employees.• Consistent high quality customer service is essential for

survival.

• Innovation– Doing things differently, exploring new territory, and

taking risks• Managers should encourage employees to be aware of

and act on opportunities for innovation.

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Changes Impacting the Manager’s Job

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Functions or Process of Management

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Planning

• Process of identifying and selecting appropriate organizational goals and courses of action.

• Planning is determining the objectives and formulating the methods to achieve them. It is more simply said than done. A job well planned is half done.

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• During planning one needs to ask oneself the following:• What am I trying to accomplish i.e. what is my

objective?• What resources do I have and do I need to

accomplish the same?• What are the methods and means to achieve the

objectives?• Is this the optimal path?

Planning cont…

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Steps in the Planning Process

• Deciding which goals the organization will pursue

• Deciding what courses of action to adopt to attain those goals

• Deciding how to allocate organizational resources

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Planning cont..

• Complex, difficult activity• Strategy to adopt is not always immediately

clear• Done under

uncertainty

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Organizing

Organizing is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals

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Organizing cont…

• Involves grouping people into departments according to the kinds of job-specific tasks they perform

• Managers lay out lines of authority and responsibility

• Decide how to coordinate organizational resources

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Leading

• Leading is stimulating people to be high performers. It is directing, motivating and communicating with employees.

• Articulating a clear organizational vision for its members to accomplish, and energize and enable employees so that everyone understands the part they play in achieving organizational goals

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• Provides positive and dynamic leadership

• Provides maximum opportunities

• Provides proper motivation of personnel

• Ability to command people

Directing/Leading

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Controlling

• Controlling is the management function of monitoring progress and making changes.

• Steps in the Control Process1) Establish Standards of Performance

2) Measure Actual Performance

3) Compare Performance to Standards:

4) Take Corrective Action

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Discussion Question

• What are the biggest challenge for management in a Global Environment?

A. Building a Competitive Advantage

B. Maintaining Ethical Standards

C. Managing a Diverse Workforce

D. Global Crisis Management

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Challenges for Management ina Global Environment

• Rise of Global Organizations.• Building a Competitive Advantage• Maintaining Ethical Standards• Managing a Diverse Workforce• Utilizing Information Technology and

Technologies• Global Crisis Management

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Building Competitive Advantage

• Competitive Advantage – ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors

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Building Blocks of Competitive Advantage

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Building Competitive Advantage

• Increasing efficiency– Reduce the quantity of resources used to

produce goods or services

• Increasing Quality– Improve the skills and abilities of the workforce– Introduce total quality management

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Building Competitive Advantage• Increasing speed, flexibility, and innovation– How fast a firm can bring new products to

market– How easily a firm can change or alter the way

they perform their activities

• Innovation– Process of creating new or improved goods and

services that customers want– Developing better ways to produce or provide

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Maintaining Ethical and Socially Responsible Standards

• Managers are under considerable pressure to make the best use of resources

• Too much pressure may induce managers to behave unethically, and even illegally

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Managing a Diverse Workforce

• To create a highly trained and motivated workforce managers must establish HRM procedures that are legal, fair and do not discriminate against organizational members

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Global Crisis Management

May be the result of:• Natural causes• Manmade causes• International terrorism• Geopolitical conflicts

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Some Management Aspects• Core Competency: Specific set of departmental skills,

abilities, knowledge and experience that allows one organization to outperform its competitors

• Restructuring: Involves simplifying, shrinking, or downsizing an organization’s operations to lower operating costs

• Outsourcing: Contracting with another company, to perform a work activity the company previously performed itself

• Empowerment: Involves giving employees more authority and responsibility over the way they perform their work activities

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Thank you

• Question and Discussion

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