1. 1. BY MD. MAHOFUZUR RAHMAN,PCIU
2. 2. MANAGEMENT The word Management has been derived from the word menaggiare which means to train up the horses According to L.A.Allen- Management is what a manager does According to Peter Drucker, "Management is a multi-purpose organ that manages business and manages managers and manages workers and work." This definition of management was given by Peter Drucker in his book "The Principles of Management".
3. 3. MANAGEMENT According to Mary Parker Follet, Management is the art of getting things done through people Management is a set of activities (including planning and decision making, organizing , leading, and controlling ) directed at on organizations resources ( human , financial , physical & information )with the aim of achieving organizational goals in an efficient & effective manner-R.W. Griffin
4. 4. MANAGEMENT Management is simply the process of decision making and control over the action of human beings for the expressed purpose of attaining predetermined goalsStanly Vance
5. 5. MANAGEMENT
6. 6. LEVELS OF MANAGEMENT:
7. 7. LEVELS OF MANAGEMENT: Generally, there are Three Levels of Management, viz. Administrative or Top Level of Management.It involves director general, assistant director general, general manager, assistant general manager, directors etc. Executive or Middle Level of Management.It involves various departmental directors like- production manager, financial manager , purchase manager etc. Supervisory or First line Level of Management.It involves junior executives like supervisors, foreman etc. At each level, individual manager has to carry out different roles and functions.
8. 8. LEVELS OF MANAGEMENT:
9. 9. LEVELS OF MANAGEMENT:
10. 10. MANAGEMENT FUNCTION: For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. They are highly inseparable. Each function blends into the other & each affects the performance of others. 1.Planning: 2. Organizing: 3. Staffing: 4. Leading: 5. Controlling:
11. 11. MANAGEMENT FUNCTION: Planning: Setting the organizational goals and deciding how best to achieve them Organizing: Determining how best to group activities and resources. Staffing: Positioning right people right jobs at right time. Leading: Motivating members of the organization to work in the best interest of the organization. Controlling: Monitoring and correcting ongoing activities to facilitate goal attainment.
12. 12. PLANNING:
13. 13. ORGANIZING
14. 14. STAFFING
15. 15. LEADING
16. 16. CONTROLLING:
17. 17. MANAGEMENT ROLE
18. 18. MANAGEMENT ROLE: A role is any of the several behaviors a manager display as he or she functions in the organization. 1. Figurehead Role : A manager is the head of his or her work unit ,division , department , or section. 2. Leadership Role: The manager is the environment creator . He or she plays this role by working to improve employees performance, reducing conflict , providing feedback on performance and encouraging growth.
19. 19. MANAGEMENT ROLE: 3. Liaison Role. Building the relation between superiors and subordinates. 4. Monitor Role. Constantly monitoring the environment to determine what is going on . 5. Disseminator Role. Passes the information through subordinates
20. 20. MANAGEMENT ROLE: 6. Spokesperson or representative Role: Speaks internal and external work unit people out side the work unit. 7. Entrepreneur Role. Expose new ideas that may improve the work units operations, he or she assumes the entrepreneur role. 8. Disturbance handler Role. Handle the crises occurring in the organization.
21. 21. MANAGEMENT ROLE: 9. Resource Allocator Role: managers are responsible for determining who , in the work unit, gets the resources and how much each person gets. 10. Negotiator Role. Negotiating may be required on contracts with suppliers or simply on trading off resources inside the organization.
22. 22. MANAGEMENT SKILLS: Three skills need all managers. These are: Technical Skill: is the knowledge of and ability to use the processes, practices, techniques, or tools of a specialty responsibility area. Example :-Accountants ,Engineers , Sales Persons. Human Skill :is the ability to interact with other persons successfully. a manager must be able to understand , work with , and relate to individuals and groups to build a term-work environment. Conceptual Skill :deals with ideas and abstract relationships. It is the mental ability to view the organization as a whole and to see how the parts of the organization relate to and depend on one another
23. 23. MANAGEMENT SKILLS:
24. 24. THE DECISION MAKING PROCESS: Decision making is the process of making rational choices among alternatives.
25. 25. THE DECISION MAKING PROCESS: Define the problem Identify the limiting or critical factors Develop potential alternatives Analyze the alternatives Select the best alternatives Implement the solution Establish a control and evaluation system
26. 26. ORGANIZATION CREATING AN ORGANIZATION An organization is a group of two or more people that exists and operates to achieve clearly stated, commonly held objective. Example: Churches, Social clubs, Athletic teams, Local government and Nonprofit organization
27. 27. THE ORGANIZATIONAL PROCESS: Managers build organizations by using the organizing process. The organizing processes are: Consider objective and plans Objectives and plans are the starting point. The objectives must consider the personal, social, environmental, and financial components of the business. Plan, and then annually review, business objectives to check they are still appropriate and achievable.
28. 28. Determine the necessary work activities Creating a list of tasks to be accomplished begins with those that will be ongoing tasks and ends with the unique or one time line tasks. Classify and Group Activities Managers perform three processes: I. Examine each activity identified to determine its general nature.(Marketing, Production , Finance , Personnel) II. Group the activities into these related areas. III. Establish the basic department design for the organization structure.
29. 29. Classify and Group Activities
30. 30. Organizational structure Abc Company Finance Production Marketing Western Region Division Typewriters Calculators Government Retail Hospital Western Region Division Personnel
31. 31. Assign work and delegate appropriate authority The activities must be assign to individuals who are simultaneously given the appropriate authority to accomplish the tasks. Design a hierarchy of relationships: It requires the determination of both the vertical and horizontal operational relationships of the organization as a whole. This structure is shown by an organization chart------- -------
32. 32. President Vice- President- Production GM- Manufacturing GM-Quality Control Vice-President- Marketing GM-Sales GM-Advertising GM-Research
33. 33. Key Terms: Chain of command : Hierarchy of decision making levels in the company. Span of control :The number of subordinates under the direction of a manager. Organizational chart :The visual representation of the way an organization and each of its parts fit together.
34. 34. MANAGING THE ORGANIZATION STRUCTURE: Managers need to understand and utilize the concepts of Authority , Delegation , Responsibility , Accountability, Span of Control , Centralization and Decentralization Authority: Authority is a managers tool, it can be described that commit resources or the legal right to give orders. There are three types authority: Authority Line Authority Staff Authority Functional Authority
35. 35. Line Authority is direct supervisory authority from superior to subordinate. Staff Authority is the authority to serve in an advisory capacity. Functional Authority is the authority to make decisions on specific activities that are undertaken by personnel in other departments.
36. 36. Line organization President Sales Manager Sales Person Sales Person Sales Person Production Manager Machinist Welder Assembler
37. 37. The flow of line and staff authority President Manufacturing Finance Production Legal Research and DevelopmentStaff authority Line authority
38. 38. Functional Authority President Marketing Advertising Sales Production Finance Credit Fund Acquisition Personnel Functional Authority
39. 39. Delegation: Delegation is a concept describing the downward transfer of formal authority from one person to another. When Manager chooses to delegate a sequence of events is created. Assignment of tasks: Specific tasks or duties that are to be undertaken are identified by the manager for assignment to the subordinates. Delegation of authority: Manager should delegate authority to the subordinates for the accomplishment of the work. Acceptance of responsibility: Responsibility is the obligation to carry out ones assigned duties to the best of ones ability.. Responsibility will not be delegated by the manager . Creation of accountability: Accountability is having to answer to someone for your action .
40. 40. Span of Control: Span of Control refers to the number of subordinates a manager supervises. The exact number for each manager is determined by 1.The complexity and variety of the subordinates work 2.The ability of the manager 3.The ability and training of the subordinates themselves 4.The supervisors willingness to delegate the authority.
41. 41. Spans of control Narrow Span Of Control President Vice-President- Marketing Vice- President- Production Manager- Manufact ure Employee -1 Employee -2 Employee -3 Employee ---- Manager- QC Vice- President- Personnel Wide span of control
42. 42. Centralization and Decentralization: Centralization --- The top level management may centralize all decision. Decentralization--- The hiring the decisions to first level management for clerical workers and let operational decisions be made where appropriate.
43. 43. TYPES OF FORMAL ORGANIZATION STRUCTURE: Formal organization structures are developed by companies to help achieve their specific objectives. Four types of organization, these are: 1. Line Organization: A straight line of authority originating from the top manager that connects each successive management level until it reaches the operating employee level
44. 44. 2. Line-and-staff Organization: It blends into the line organization staff personnel that advise and serve the line managers. Staff personnel advise the line managers in case of decision making. 3. Functional Organization: is an attempt by management to provide expert technical supervision to operating employees by providing separate supervisors for each task. it violates the principles of unity of command 4. Matrix Organization: It temporary groups together specialists from different divisions to work on special projects
45. 45. Line organization President Sales Manager Sales Person Sales Person Sales Person Production Manager Machinist Welder Assembler
46. 46. Line-and-staff organization President Research Sales manager Sales person Sales person Sales person Production manager Legal
47. 47. Functional organization Foreperson Cutting supervisor Trimming supervisor Polishing supervisor Operating employees Assembling supervisor Printing supervisor Packing supervisor
48. 48. INFORMAL ORGANIZATION: The informal organization is a network of personnel and social relationships that arises spontaneously as people associate with each other in the work environment.
49. 49. INFORMAL ORGANIZATION: 5 4.1 30 31 201 202 203 101 102 103 104 105 204 32 33 4.2 4.3 4.4 34 205 206 35
50. 50. ACQUIRING AND DEVELOPING HUMAN RESOURCES HUMAN RESOURCES MANAGEMENT (HRM): HRM is the staffing function of the organization. It is includes the activities of human resources planning, recruitment, selection, orientation, training, performance appraisal, compensation and safety.
51. 51. HUMAN RESOURCES PROCESS: Human Resources Planning Recruiting Selection Orientation Orientation Training Performance Appraisal Separation
52. 52. HUMAN RESOURCES PROCESS: Human resource planning process The process for an organization , which includes forecasting the demand for and supply of personnel. It includes 1. Forecasting the personnel 2.Comparing the requirements with the talents of present employees 3.Developing specific plans for how many people to recruit
53. 53. Human Resource Planning Process Employee History (Retirement,Resignations
54. 54. RECRUITMENT By Recruitment the organization attempts to identify and attract candidates to meet the requirements of anticipated or actual job opening. There are two sources of applicants---- Internal source External source
55. 55. SELECTION: Selection is the process of deciding which candidate out of the pool of application developed in recruiting has the abilities, skills and characteristics that most closely match job demands. SELECTION PROCESS: Application Blank Preliminary Interview Testing In-depth Interview Reference Checks Physical Examination Offer of Employment
56. 56. Applicant Pool Application Blank Preliminary Interview Testing In-Depth Interview Reference Check Physical Examination Offer Employment
57. 57. Orientation An orientation program is a series of activities that gives the new employees information to help them adapt to the organization and their new jobs. Its purpose is to turn them (new employees) and us (the company ) into we.
58. 58. TRAINING: Training supplies the skills, knowledge and attitude needed by subordinates to improve their abilities to perform their jobs. Several training methods can be used. Classroom training (It is training conducted away from the pressures of the work environment. The employee learns the basic skills of the job and then is sent to the work force) On-the-job training ( It is a technique of teaching job skills while the person performs the job) Vestibule training ( It is training conducted in a simulated work environment complete with sample equipment)
59. 59. Performance Appraisal: Performance Appraisal is a formal measure or rating of an employees job performance compared with established job standards. A company may use two types Performance Appraisal: Subjective Performance Appraisal System (is based on the personal viewpoint of the manager)(Page-155, Table-6.3) Objective Performance Appraisal System (In this system the specific performance areas are identified for the employee as are the results expected) Page-156, Table-6.4)
60. 60. PERSONNEL CHANGES: MOVING UP AND MOVING ON Promotion : A promotion is a movement by a person into a position with higher pay and greater responsibly Transfer : A transfer is a lateral move from one position to another that has similar pay and responsibility levels. Demotion : A demotion is a movement from one position to another that has less pay or responsibility attached to it .
61. 61. Separation Separation is the loss of an employee to an organization through layoff, termination ,retirement or resignation. A layoff is a temporary separation dictated by the level of business a company is experiencing when and if business condition improve employees are recalled to work.
62. 62. Termination is a permanent separation from the company . An employee is terminated, or fired , owing to unsatisfactory performance or violation of work rules. Retirement is a persons intention to stop working for the rest of his or her life. Resignation is a voluntary separation in which a worker leaves to accept another position.
63. 63. Compensation: Compensation is the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.
64. 64. Types of compensation ----- Wages, Salary: Wages is compensation based on hours worked while salary is compensation based on weeks or months worked. Piece work :pays employees according to the number of units they produce. Commission : A percentage paid to a salesperson of the price of each item sold. Bonus : is an incentive money paid to employees in addition to their regular compensation . Profit Sharing: refers to paying a portion of company profits to employees as a performance incentive in addition to their regular compensation. Stock Option: A stock option is a plan that permits employees to buy shares of stock in the employees firm at or below the present market price.
65. 65. Pension Plan: is a program to provide a retirement income to workers by holding a percentage of their earning s in reserve. Fringe Benefits : Non financial rewards provided for employees. 1.Life,health,and Dental insurance 2.Paid vacations 3.Sick pay. 4. Holidays 5.Paid lunch 6.Discounts on merchandise or service 7.Child care
66. 66. MANAGING PEOPLE Motivation: Motivation basically means an individuals needs, desires and concepts that cause him or her to act in a particular manner. Feeling that drive someone toward a particular time or things that are missing from a person's life
67. 67. Basic motivation model Tension ( Stimuli ) Wants Behavior Action Toward Goal Achievement Feedback
68. 68. Basic motivation model Tension ( Stimuli ) Food Cook rice Eat rice No more hunger I m hungry
69. 69. MASLOWS HIERARCHY OF NEEDS:
70. 70. MASLOWS HIERARCHY OF NEEDS:
71. 71. Physiological need: is the fundamental need for food, clothing , and shelter. Safety and security need : is the need to avoid bodily harm and uncertainty about ones well-being. Social need :is the need to be accepted by people whose opinions and companionship you value. Esteem needs :is the need to feel important , admired, and worthwhile. Self actualization or self realization needs : is the need to get the maximum reward from one , s life experience: to maximize one , s skills, abilities , and potential.
72. 72. Physical needs Safety needs Social needs Esteem needs Self- realization needs 1.Food 1.Security for Self & possessions Companion ship Responsibility Reaching your potential 2.Clothing 2. Avoidance of risks acceptance Self-respect Independence 3.Sheiter 3.Avoidance of harm Love & affection Recognition Creativity 4.Comfort & Self- preservation 4. Avoidance of pain Group membership Sense of accomplishment Self-expression
73. 73. HERZBERGS MOTIVATION- MAINTENANCE MODEL: Frederick Herzberg developed a theory of motivation in his motivation-maintenance model. he indicates that two sets of factors, or conditions , affect how people behave in organizations. These two are maintenance and motivation factors. Maintenance factors :Maintenance or hygiene factors are those job factors that prevent dissatisfaction but do not generate satisfaction or motivate workers to generate effort.
74. 74. 1.Salary: Adequate wages, salaries, and fringe benefits 2.Job security : Company grievance procedures and seniority privileges 3.Working conditions : Adequate heat, light , ventilation, and hours of work 4.Status : Privilege , job titles, and other symbols of rank and position 5.Company policies :The policies of the organization and fairness in administrating those policies 6.Quality of technical supervision :Whether or not the employees is able to receive answers to job-related questions. Quality of interpersonal relations among peers , supervisors , and subordinates . Presence of above facility will not satisfy staffs , but absence of those facility will make them dissatisfied.
75. 75. Motivation factors : Motivation factors are those job factors that provide satisfaction and therefore motivation, but whose absence causes no satisfaction to be achieved. Herzberg,s motivation factors are ; 1.Achievement: Opportunity for accomplishment and for contributing something of value when presented with a challenge 2.Recognition : Acknowledgement that contributions have been worth the effort and that the effort has been noted and appreciated 3.Responsibility: Acquisition of new duties and responsibilities, either through the expansion of a job or by delegation. 4. Advancement: Opportunity to improve ones organizational position as a result of job performance. 5. The work itself: Opportunity for self-expression, personal satisfaction and challenge.
76. 76. LEADERSHIP
77. 77. LEADERSHIP: Leadership is the process of encouraging and helping others to work enthusiastically toward objective. STYLES OF LEADERSHIP: Leadership style is the approach a manager uses to influence subordinates. This influence may take the form of making a decision for a subordinate, guiding the subordinate in decision making. Thus a manager has a number of option s for a decision-making style. The range of styles shown on the continuum can be grouped under three heading: 1. Autocratic Leadership Style: The autocratic leadership style is characterized by decision making solely by the manager, subordinates are excluded from the process.
78. 78. 2. Participative leadership style: The participated leadership style is characterized by the manager involving the subordinates in the decision. 3. Free-rein or Laissez-faire leadership style: The free-rein or laissez-faire leadership style by the leader permitting the subordinates to function independently. The leader exercises little direct supervision over subordinates, allowing them to use considerable judgments in accomplishing tasks.