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5/29/12 Principles of

CHAPTER ONE

INTRODUCTIONTO

MANAGEMENT

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Definitions ofManagement

the art of getting things donewith and through people.Mary Parker Follett (1919)

Management = Manage + Men +

T (tactfully)

Manage = getting things done

(achieve certain objective)22Principles of

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What is Management?

Principles ofManagment/ BIM I 313

A set of activities(planning and decision making,organizing, leading, and controlling)

directed at an organizationsresources (human, financial,physical, and information)

with the aim of

achieving organizational goalsin an efficient and effective manner.

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EFFICIENTLYUsing resources wisely and

in a cost-effective way

EFFECTIVELYMaking the right decisions andsuccessfully implementing them

And

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Functionsof

Managem55Pri

nciples of

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Process or Functions ofManagement

66

A Modern Approach

Planning

i. Organizingii. Leadingiii. Motivatingiv. communicat

ing

i. Settingstandards

ii. Measuring currentsituation

iii. Evaluatingdeviations

iv. Takingcorrectiv

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ann ng- ec ngin advance

Deciding what:

Activities to be carried out

Allocation of resources

Deciding why: Effectively and efficiently achieving

organizational goals

Planning is deciding in advance, theallocation of resources and activities

to be carried out, in order toeffectively and efficiently achieve the77Principles of

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Organizing Structure ofauthorities and

responsibilities

Process ofallocation of

resources and division ofwork.

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Staffing HumanResource Function

Recruitment: Encouraging peopleto apply

Selection: Finding the rightperson for the job

Training:Teaching the employees

certain skill Development:

Progress/advancement of career

Motivation: Encouraging the99Principles of

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Leading Art of performing leadership is

leading.

Leadership is the ability topersuade others to seek definedobjectives enthusiastically.

- Keith Davis (1967)

Leading involves supervising,directing, influencing, motivating,coordinating etc.

This function hel s to minimize1010Principles of

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Controlling It is monitoring progress atwork.

The process of controllinginvolves:

Setting work standards Measuring the currentperformance

Evaluating the deviations1111Principles of

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Types

Of

Managers1212Principles of

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A. Based on Nature ofWork

1.

Functionalis

t

21313Principles of

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Functionalist Manager:

Managers that head a certainfunction / department in anorganization

Example: Production Manager,Marketing Manager, Human ResourceManager etc.

These managers are usuallyspecialists in a certain function.

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Generalists:

Managers that command a certainunit.

These managerscommand overallresponsibility.

Example: General Manager,Geographic Managers, etc.

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1. Top LevelManagers

2. Middle Level

Managers 3. Low Level

Managers

B. Based on Levels ofManagement

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Characteristics

Top Level Middle Level Low Level

Also known as Strategiclevel

Business Level OperationalLevel

1 Focus onPlanning

Heavy Moderate Minimum

2 Focus onControl

Moderate Heavy Heavy

3 Time Frame More than 1year

Up to 1 year Day to day

4 Scope ofActivity

Very broad Functional level Sub Function

5 Nature ofActivity

Unstructured Moderately Structured Very Structured

6 Level ofcomplexity

Very ComplexModerately Complex StraightForward

7 Result of Plans, Implementation End Product1717Principles of

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C. Based on Authority

1. LineManagers

2. Staff

Managers1818Principles of

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Line Managers

They are directly inchain of command.

They have responsibilities forprinciple activities of anorganization.

They are responsible forachievementof organizationalgoals.

They have the major authorities ofan or anization.

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Staff Managers

They do not have much directauthority.

These managers are hired for certainexpertise.

Provideexpertise in certain specialized fiel

They assist and support linemanagers.

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Managerial

Rolesand

Skills2121Principles of

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Managerial Skills

Technical Skills:Job specificknowledge. Example operationalskills, accounting skills, skill to

use certain tools etc. Human Skills: Ability to

understand, lead, communicate,

coordinate, control etc. Conceptual Skills: Ability to

visualize organization as a

whole. High level conceptual skill2222Principles of

Skills Needed by Three levels

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Skills Needed by Three levels

of Management

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Top

Middle

Low

Conceptual Human Technical

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SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS

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Managerial Roles

Interpersonal Roles

Informational Roles

Decisional RolesHenry Mintzbergs 10 Management R

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Managerial Roles

H. Mintzberg, The Managers Job: Folklore and Fact:. Harvard Business Review,July-August 1975.

Interpersonal Informational DecisionalFigurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

DisturbanceHandler

ResourceAllocator

Negotiator

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Managerial Roles

Figurehead

Leader

Liaison

Managers perform ceremonialduties

Managers motivate andencourageworkers to accomplishobjectives

Managers deal with people

Interpersonal Roles

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Managerial Roles

Monitor

Disseminator

Spokesperson

Managers scan their environmentfor information

Managers share informationwith others in their company

Managers share informationwith others outside theirdepartments or companies

Informational Roles

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Entrepreneur

Disturbance

Handler

ResourceAllocator

Negotiator

Managerial Roles

Managers adapt to incrementalchange

Managers respond to problems thatdemand immediate action

Managers decide who getswhat resources

Managers negotiate schedules,projects, goals, outcomes,resources,

Decisional Roles

Principles of

A i

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Becoming a manager: role ofeducation, experience, and

situation 3030

Assignment

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ManagersMoving away from Moving towards1. Administrative role Boss/Supervisor/leader Team player/coach

2. CulturalOrientation

Monoculture/Monolingual Multicultural/multilingual

3. Quality/Ethics/environmental impact

Afterthought Forethought

4. Power bases Formal authority;rewards, andpunishments

Knowledge; relationships;rewards

5. Primary

organizational units

Individuals Team

6. Interpersonaldealings

Competition; Win-lose Competition; win-win

7. Learning Periodic Continuous

8. Problems Threats to be avoided Opportunities for learning

and continuous3131Principles of