MGT-100: PRINCIPLES OFMANAGEMENT There are 3 lecturers taking you through this course during this semester. There will be 12 to 13 weeks of teaching/Tutorials for this course before you write the final examination. 2 CA Tests---40% Final exam---60%
We will be dealing mainly with : Management Manager Historical Back ground of Management Evolution of Management Functions of Management
Organisation defined Organisation is group of people with formally assigned roles who work together to achieve the goals of the group. Characteristics: common purpose/goals organizational structure
Determinants of Organisation 1. Organisation size 2.Diversity of operations 3.Characteristics of personnel External factors Environment, Resources Technology Government regulations
Clients and customers Legal environment Competitors Social systems
Cont’dManager is a person who plans, organizes, leads, and controls the work of others so that the organisation achieves its goals. Therefore a manager: gets things done through the efforts of other people. is skilled at the management process.
Management Defined1. Dessler (2004) defined management as a process of getting work done through other people. Therefore: a manager set goals to be achieved. arrange for resources. motivate employees and monitor their activities.
Cont’dOther resources like: Financial resource Material resource information resource Machinery Manpower
Other definitions ofManagementThe art of getting things done through people” (M.P. Follet)“The process of planning, organizing, leading, and controlling the efforts of organizational resources to achieve stated organizational goals” (Stoner)
Another definition Management is the process of setting objectives and coordinating the efforts of personnel in order to attain them. It involves getting things done through other people--- Richard Hodgetts Doing things efficiently and effectively is good management
Efficiency-Getting the work done with minimum effort, expense, or waste Effectively-Accomplishing tasks to the best satisfaction of end users.
The Art of Management Requires a blend of intuition, experience, instinct, and personal insights. Requires conceptual, communication, interpersonal, and time-management skills to accomplish managerial tasks activities.
Management as Science andArt As science- requires to use of logic and analysis. Manager arrives at a decision by observing, classifying and studying facts in relation to the problem at hand.
As an Art- It requires the use of behavioural and judgmental skills that can not be quantified or categorised like in the case of chemistry, biology and physics it is an art of acting by motivating, leading by using Judgment, intuition,etc.
Contd--- Art- Managers approach management as an art when dealing with people Science- Mangers approach management as science dealing with material things.
The approach varies at different levels of Management Lower levels- Use Scientific techniques Upper levels- use judgment, thought and intuition
Management as a profession In addition to being an art and a science, management is also considered as profession. Management changes its role depending on the situation.
Profession is a vocation whose practice is founded upon an understanding of the theoretical structure of some department of learning or science, and upon the abilities accompanying such understanding
Characteristics of a Profession To qualify as profession, an occupation must meet five major criteria 1.Knowledge-Accumulation of knowledge 2.Competent application- Application of knowledge
3.Social responsibility-Assuming Social Obligations 4.Self Control/Ethics- for effective management 5.Community Sanction- contribution to social programs
ADMINISTRATION According to Theo Haimann, It means “overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmes and projects”. It refers to the activities of higher level. It lays down basic principles of the enterprise.
According to Newman, “Administration means guidance, leadership & control of the efforts of the groups towards some common goals”.
MANAGEMENT Where as management involves conceiving, initiating and bringing together the various elements; coordinating, actuating, integrating the diverse organizational components while sustaining the viability of the organization towards some pre-determined goals.
In other words, it is an art of getting things done through & with the people in formally organized groups. Administration and Management should go together
Charles Babbage (1792–1871) Focused on creating production efficiencies through division of labor, and application of mathematics to management problems.
Basic functions of Management Planning. Organising. Leading . Controlling
Planning Planning is a process of establishing goals and deciding how to accomplish them. It is one of the best ways to improve performance
Organising Organising is the process of grouping resources and activities to accomplish the end result in an efficient and effective manner. It also means deciding where decisions will be made , who will do what jobs and tasks and for whom.
Leading Leading is the process of influencing people to work toward a common goal .It includes inspiring and motivating people to work hard to achieve organisational objectives
Controlling Controlling is the process of evaluating and regulating ongoing activities to ensure that goals are achieved. Or is a process of setting standards(such as sales quota or quality standards), comparing actual performance with standards set and taking corrective action at the right time.
Interpersonal roles 1.Leader- managers are leaders in their organisation. Is responsible for hiring, training, counseling and directing subordinates. The leader has to motivate and encourage workers to accomplish the goals of the organisation
2.Figurehead-( Representative figure) Manager represent the organisation in all formal functions and meet important people. This is a ceremonial role so to say speaking on behalf of the organisation
Cont’d 3.Liaison/relationship- managers maintains good relationship within the organisation and outside. (public).Interacts with people at the same level of hierarchy. The manager spends more or less equal time both with outsiders and insiders.
Cont’dInternal relations involve Top Management, other managers and employees.External relations with-suppliers, bankers, the government and customers.
Information role Focal point of receiving and sending information. 1.Monitor- performance, opportunities and threats outside e.g. customer behaviour. Basically talks to subordinates and gathers information required in running the organisationEg:Journals, News Papers and other electronic means, websites
Cont’d 2.Analyses/ disseminator- analyses information and passes relevant data on to colleagues, superiors and subordinates.Eg: e-mail, voice mail and now Face book and Twitter
Cont’d 3.Spokesperson – managers acts as spokesperson in their department and outside the organization. Provides information either to inform the public about the organisation or to satisfy influential people who control the organisation. Eg: at the Company Annual Meetings with Share holders/Board of Directors
Decisional rolesUse of information. 1.Allocation of resources -The Manager allocates resources and decides who gets what. Eg: salaries, assistance, hisher own time. Also designs the organisation structure and decides who will do what.
2.Entrepreneur role -Mangers are entrepreneurs- use information to achieve a positive change e.g. new product development or idea or restructuring the business and other innovations
Cont’d 3.Negotiator’s role- interact with employees, other department or business to negotiate goals. This is the major part of manager’s job as he is the only one who has authority to decide and commit resources for any activity.
Examples of this role Schedules Outcomes Performance standards. resources trade union agreements. New contracts
4. Trouble shooter or disturbance handler role- try to resolve problems before they become serious/out of hands- Responds to problems with immediate action. Deals with strikes, shortages and equipment breakdowns
Managerial skills A Skill is an ability to translate knowledge into action that results in desired performance. Robert Katz identified 3 different kinds of Managerial Skills, they are: 1.Technical skills 2. Human skills and 3.Conceptual skills.
1.Technicasl Skills Ability to use the techniques. Ability to use procedures. Ability to use tools of a specific field. Important at lower levels(First line Managers and Team Leaders).
To know how the work is done. Able to demonstrate the work. Main concern is to get the work out. Once equipped with these skills ,easy to direct subordinates effectively and also to assist them when they have problems.
Eg; of technical Skills: For Sales Managers; technical skills involve ability to find new sales prospects depending on the needs of the consumers.
2. Human skills(InterpersonalSkills) An understanding of human behavior and group processes, and the feelings, attitudes, and motives of others, and ability to communicate clearly and persuasively. Ability to deal with people effectively both inside and outside the organization.
Cont’d Ability to communicate, motivate and lead individuals and groups are key to their success It’s a skill of persuading, negotiating and coordinating activities of others e.g. distributing work and solving conflicts.
cont. The Jobs are more Human than Technical in nature These skills are necessary to all managers but more so with Middle level Managers
Middle level Managers’ are concerned with directing lower level supervisors and other middle level Managers. The manager here is situated in between Top level and Lower Level Management
The manager here takes top management directives and turn them into Operational Plans and passes them on to the Lower management for action. Here the Manager is like a politician who is trying to balance various needs or concerns of groups with different interests.
Further the manager here should know: 1.How to relater people in higher level positions 2. how to acquire communication skills on a one-to-one basis
3. How to improve their skills in sizing up the employees 4. How to use time more effectively 5. how to become results oriented than activity oriented 6. How to deal with Organisational politics.
Managers here are more sensitive to others’ needs and view points, and are good listeners and communicators. Top/ Upper level Managers spend most of their time in dealing with people.
3. Conceptual Skills Is the ability to plan, coordinate and integrate all of the organisation’s interests and activities.
Contd--- Good judgment, creativity, and the ability to see the “big picture” when confronted with information. Involves planning and thinking process. One must be intelligent and practical.
Cont’d More crucial to top managers than for middle management or first line managers, because long range forecasting and planning are the principal activities at this level.
Contd--- The top management must be able to balance the demands of the organisation’s various departments and units with the demands of the external environment,i,e;Local community, social and economic forces, customers and competition.
Characteristics of top Managers Among others they include: 1. The capacity to abstract- conceptualise, organise, and integrate different ideas into a coherent frame work 2.Tolerance for ambiguity- ability to with stand confusion until it is clear.
3.Intelligence-Capcity not only to abstract but also to be practical 4.Judgment-The ability to know when to act.
Four possible mistakes ofManagers 1. Insensitive to others by the intimidating management style 2. Becoming Often cold, aloof, or arrogant in their behaviours thinking he knows everything and he is superior to others
3. Betrayal of trust- making others look bad by not doing what you said you would do when you said you would do it. It is failure to admit mistakes. 4. becoming overly political and ambitious- unable to delegate, and build a team.
Middle Level Top LevelFirst line Managers ManagersManagersConceptual=10 Conceptual=15 Conceptual=35% % %Human=40% Human=55% Human =50%Technical=50% Technical=30% Technical=15%