Role of management in organization


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Role of management in organization

  1. 1. THE ROLE OF MANAGEMENT IN AN ORGANIZATION. Essentially, the role of managers is to guide theorganizations toward goal accomplishment. All organizations exist for certain purposesor goals, and managers are responsible for combining and using organizational resourcesto ensure that their organizations achieve their purposes.The role of the Management is to move an organization towards its purposes or goals byassigning activities that organization members perform.If Management ensures that all the activities are designed effectively, the production ofeach individual worker will contribute to the attainment of the organizational goals.Management strives to encourage individual activity that will lead to reachingorganizational goals and to discourage individual activity that will hinder theaccomplishment of the organization objectives.There is no idea more important than managing the fulfillment of the organizational goalsand objectives. The meaning of the Management is given by its goals and objectives.All managers, must have a single minded focus on the fulfillment of the organizationalgoals. Roles & Responsibilities of a Manager in an OrganizationThe three vital determinants of team work are the leader” subordinates and the environment.These factors are interdependent. It is the leader’s responsibility to make the environmentconducive to work. He studies the employees individually and insists interest in them. Byencouraging the inquisitive employees and by prohibiting insidious elements, he creates hygienicenvironment. He inculcates the sense of collectivism in employees to work as a team. Theresultant output will then be efficiency.______________________________________________________________________________
  2. 2. LEADER IS A REPRESENTATIVE OF SUBORDINATESHe is intermediary between the work groups and top management. They are called linking pins byrensis likert. As linking pins they serve to integrate the entire organization and the effectivenessdepends on the strength of these linking pins. Leader shows personal consideration for theemployees. As representatives they carry the voice of the subordinates to the to management.LEADER IS AN APPROPRIATE COUNSELLORQuite often people in the work place need counseling to eliminate the emotional disequilibriumthat is created sometimes in them. Leader removes barriers and stumbling block to effectiveperformance. For instance, frustration that results from blocked need drive keeps an employeederailed or the working track. It is here the leader comes in, renders wise counsel, releases theemployee of the emotional tension and restores equilibrium.USES POWER PROPERLYIf a leader is to effectively achieve the goal expected of him, he must have power and authority toact in a way that will stimulate a positive response from the workers. A leader , depending on thesituation , exercises different types of power , viz reward power and expert power. Besides theformal basis , the informal basis of power also have a more powerful impact on organizationaleffectiveness. No leader is effective unless the subordinates obey his orders. There fore, theleader uses appropriate power so that subordinates willingly obey the orders and come forwardwith commitment.LEADER MANAGES THE TIME WELLTimes is precious and vital but often overlooked in management. There are three dimensions oftime – boss – imposed – time , system- imposed –time and self – imposed time . That areprominent in literature. Because the leader has through knowledge of the principle of timemanagement such as preparing time charts, scheduling techniques, etc., he is in a position toutilize the time productively in the organization.STRIVES FOR EFFECTIVENESSQuite frequently the manager are work – abolic and too busy with petty things to address to majordetails of effectiveness. To fill the gap, sometimes leaders throws his concerted efforts to bringeffectiveness by encouraging and nurturing team work, by better time management and by theproper use of power. Further, leader provides and adequate reward structure to encourageperformance of employees. Leader delegates authority where needed and invites participationwhere possible to achieve the better result. He also provides the workers with necessaryresources. By communicating to workers what is expected of them, leader brings effectiveness toorganization. The above functions of the leader are by no means comprehensive but they dosuggest as to what leaders do generally.MANAGING AND LEADINGLeading and managing are not synonymous. One popular way of distinguishing betweenmanaging and leading is brought out by the French terms dux and Rex. Dex is a leader and anactivist, innovators and often an inspirational type and rex is a stabilizer or broker of manager. Butmore realistically, effective management required good leadership. Bennis had once commented,there are many institutions I know are very well managed but very poorly led”. This statementcrystal – clearly demonstrates that the difference between managing, and leading is indeed a lot.Though a layman considers managing as a broad terms including leading function a behaviorist
  3. 3. advances the following points to marshall the difference between these two leading andmanaging.RELEATIONSHIPSManagerial behavior implies the existence of a manager managed relationship. This relationshiparises with in organizational context. Where as leadership can occur why where, it does not haveto originate in the organization context. for example , a mob can have a leader but cannot have amanager. Further, is an organization, informal. Group have leader not managers.SOURCES OF INFLUENCEAnother potential difference between leader and manager lies in their sources of influence.Authority is attached to the managerial position in the case of a manager: where as a leader maynot have authority but can receive power directly from his followers. In other words, managersobtain authority from his followers. In rather pure terms, this is the difference between the formalauthority theory and the acceptance theory of authority.SANCTIONSA Manger has command over all allocation and distributions of sanctions. For Example, managerhas control over the positive sanctions such as promotion and awards for his task performanceand the contribution to organizational objectives. Manager is also in a position to exercises thenegative sanctions such as with holding promotions, or mistakes, etc. In a sharp contrast, aleader has altogether different type of sanctions to exercises and grant. He cans gerent or withhold access to satisfying the very purpose of joining the group’s social satisfactions and relatedtask rewards. These informal sanctions are relevant to the individual with belongingness or egoneeds: where as the organizational sanctions granted or exercised by the managers are gearedto the physiological and security needs of individual.ROLE CONTINUANCEAnother fundamental difference between managing and leading is the role continuance. Amanager may continue in office as long as his performance is satisfactory and acceptable to theorganization. In sharp contrast, a leader maintains his position only through the day to day wish tothe followers.REASONS FOR FOLLOWINGThough in both managing and leading followers become involved, the reasons may be different.People follow managers because their job description, supported by a system of rewards andsanctions, requires them to follow. Where as people follow leader on voluntary basis. Further, itthere are no followers, leader no more exists. But, even if there are no followers, a manager maybe there.The Role of Performance Management in OrganizationsUpdated: 2008-08-21Performance management is a quickly maturing business discipline. Like its better known siblings—salesand marketing, human resources, supply chain management, and accounting and finance—performancemanagement has a key role to play in improving the overall value of an organization. Wayne Eckerson ofThe Data Warehouse Institute defines Performance Management as “a series of organizational processesand applications designed to optimize the execution of business strategy.” The focus of this book (and itscomplimentary volume, The Rational Guide to Monitoring and Analyzing with Microsoft OfficePerformancePoint Server 2007) is on the application side of the definition, but it is important tounderstand how the organizational process works.
  4. 4. This article is an excerpt from The Rational Guide to Planning with Microsoft Office PerformancePointServer 2007, by Adrian Downes and Nick Barclay, and is property of Mann Publishing Group(978-1-932577-42-6), copyright January 2008, all rights reserved. No part of this chapter may bereproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic,electrostatic, mechanical, photocopying, recording, or otherwise—without the prior written permission ofthe publisher, except in the case of brief quotations embodied in critical articles or reviews.The fitness program described earlier outlines a strategy for following certain recommended exercises andhealthy habits, helping you to achieve your objectives (e.g., becoming stronger, lighter, etc.), and leadingtowards your goal of becoming more fit. Throughout the program, there may be certain targets to strivefor, such as 20 more pushups a month, or completing that 20-minute treadmill run at a higher averagerate of speed. Your trainer also uses the program to record your progress from visit to visit, providingfeedback on your overall performance and determining whether you are on track towards meeting specificobjectives.Feedback is important to us, because it helps us to further understand why we may or may not bemeeting specific targets. Feedback can also be used to modify our expectations, and to set new objectivesover the course of the program. In business, a similar process takes place: 1. Planning what we would like to happen, based on insights from analysis of trends in our industry and events that impact our business. 2. Executing, by making decisions and taking action, based on the outcomes of planning activities. 3. Monitoring our progress towards a certain time-limited target or objective. 4. Analyzing further to understand why we may or may not be on-track to meet a specific target or objective. 5. Forecast what we think will happen, based on what we have analyzed. Here we build one or more scenarios to help us predict certain outcomes. These outcomes help us to confirm or refute our choice of tactics to meet our objectives.Figure 1.1 illustrates this process.Figure 1.1: The Performance Management Cycle.Similar to our fitness program, where progress is monitored and analyzed in areas such as weight loss ornumber of repetitions for a given exercise, performance management involves monitoring keyperformance indicators (KPIs) that measure whether an organization is meeting its objectives andoverarching strategy. A KPI in this sense is a measure defined by a business that allows for observation ofactual values, as they may emerge from line-of-business (LOB) applications and their comparison toestablished targets (or budgeted values). If a KPI reveals an actual value that deviates too far from (or inmany cases, closely approaches) a pre-defined target, then further analysis is warranted. Discoveries
  5. 5. made during analysis should help us plan our next steps, set new (or adjust existing) expectations, andpredict what may happen based on our decisions. In larger organizations, data from multiple LOB systemsare often centralized within “a single version of the truth” business intelligence (BI) system to optimizeKPI monitoring, detailed analysis, and performance reporting. BI systems often (but not always) consist ofseveral layers that work together, helping businesses to: • Integrate and refine data from a variety of applications, systems, and documents into a centralized data mart or data warehouse. • Analyze refined data to gain insight into current performance (monitoring KPIs), potential causes for specific KPI variances (or deviations of actual values from target values). • Report past, current, or forecast conditions to stakeholders.The goal of a BI system is to ultimately help business people make better, faster decisions. Classically,such decision-making has occurred at higher levels of an organization and been limited to a relativelysmall number of individuals. However, corporate culture has changed significantly over the last decade,and themes of transparency, accountability, and empowerment have emerged. Performance managementframeworks, like Kaplan and Norton’s Balanced Scorecard method, build on these notions by making allsteps in the cycle (illustrated in Figure 1.1) occur at executive, departmental, and operational layers of themodern organizationIMPORTANCE OF MANAGEMENT:Managers influence all the phases of modern organizations. Sales Managers maintain asales force that markets goods. Personnel managers provide organizations with acompetent and productive workforce. Plant managers run manufacturing operations thatproduce the clothes we wear, the food we eat, and the automobiles we drive.Our society could never exist as we know it today nor improve without a steady stream ofmanagers to guide its organizations. The well known management author Peter Druckerhighlighted this point when he said that Effective Management is probably the mainresource of developed countries and the most needed resource of developing ones.In short, all societies, whether developed or developing, need a huge lot of goodmanagers. Uploaded By Iftikhar Changazi