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Intro to management


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Intro to management

  1. 1. 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%
  2. 2.  We will be dealing mainly with : Management Manager Historical Back ground of Management Evolution of Management Functions of Management
  3. 3. 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
  4. 4. Determinants of Organisation 1. Organisation size 2.Diversity of operations 3.Characteristics of personnel External factors Environment, Resources Technology Government regulations
  5. 5.  Clients and customers Legal environment Competitors Social systems
  6. 6. 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.
  7. 7. An Introduction to Management1–7  Organization  Types of  A group of Organizational Goals people working  Profit-seeking together in  National defense structured and Discovery of coordinated knowledge fashion to  Coordination achieve a set of  Social needs goals © 2012 South-Western, Cengage Learning, Inc. All rights reserved.
  8. 8. Cont’dManagement Process  Refers to the manager’s four basic functions of planning, organizing, leading, and controlling.
  10. 10. 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.
  11. 11. Cont’dOther resources like: Financial resource Material resource information resource Machinery Manpower
  12. 12. 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)
  13. 13. 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
  14. 14.  Efficiency-Getting the work done with minimum effort, expense, or waste Effectively-Accomplishing tasks to the best satisfaction of end users.
  15. 15. Basic Responsibility ofManagement EFFICIENTLY Using resources wisely and in a cost-effective way and EFFECTIVELY Making the right decisions and successfully implementing them © 2012 South-Western, 1–15 Cengage Learning, Inc. All rights reserved.
  16. 16. What is Management? Engaging in a set of activities  Planning and decision making, organizing, leading, and controlling © 2012 South-Western, 1–16 Cengage Learning, Inc. All rights reserved.
  17. 17.  Using an organization’s resources  Human, financial, physical, and information Achieving organizational goals in an e ffic ie nt and e ffe c tive manner.
  18. 18. Management: Science or Art orboth? The Science of Management  Assumes that problems can be approached using rational, logical, objective, and systematic ways.  Requires technical, diagnostic, and decision-making skills and techniques. © 2012 South-Western, 1–18 Cengage Learning, Inc. All rights reserved.
  19. 19.  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.
  20. 20. 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.
  21. 21.  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.
  22. 22. Contd--- Art- Managers approach management as an art when dealing with people Science- Mangers approach management as science dealing with material things.
  23. 23.  The approach varies at different levels of Management Lower levels- Use Scientific techniques Upper levels- use judgment, thought and intuition
  24. 24. 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.
  25. 25.  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
  26. 26. 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
  27. 27.  3.Social responsibility-Assuming Social Obligations 4.Self Control/Ethics- for effective management 5.Community Sanction- contribution to social programs
  28. 28. Management-The Importanceof Theory and History Why Theory?  Provides a conceptual framework for organizing knowledge and providing a blueprint for action. Management theories are grounded in reality. © 2012 South-Western, 1–28 Cengage Learning, Inc. All rights reserved.
  29. 29. Managers develop their owntheories.Avoidsmistakes of others inthe past and develop further
  30. 30.  Why History?  An awareness and understanding of historical developments in management are important. Furthers development of management practices.
  31. 31. Early Management Pioneers Robert Owen (1771–1858)  Recognized the importance of human resources and the welfare of workers. © 2012 South-Western, 1–31 Cengage Learning, Inc. All rights reserved.
  32. 32. 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.
  33. 33.  According to Newman, “Administration means guidance, leadership & control of the efforts of the groups towards some common goals”.
  34. 34. 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.
  35. 35.  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
  36. 36.  Charles Babbage (1792–1871)  Focused on creating production efficiencies through division of labor, and application of mathematics to management problems.
  37. 37. Basic functions of Management Planning. Organising. Leading . Controlling
  38. 38. Planning Planning is a process of establishing goals and deciding how to accomplish them. It is one of the best ways to improve performance
  39. 39. 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.
  40. 40. 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
  41. 41. 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.
  42. 42. 1.2 The Management Process © 2012 South-Western, 1–42 Cengage Learning, Inc. All rights reserved.
  43. 43. What is a Manager? Someone whose primary responsibility is to carry out the management process.  Plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources. © 2012 South-Western, 1–43 Cengage Learning, Inc. All rights reserved.
  44. 44. Manager roles A role is an organized set of behaviours. Managers perform various roles in organisation to achieve organisational goals.
  45. 45. Cont’dHenry Mintzberg identified ten rolescommon to all Managers.These ten roles are divided into three main groups depending on their nature:
  46. 46. Managerial Roles
  47. 47. Cont’d1.Interpersonal roles.2.Informational roles.3.Decisional roles.
  48. 48. 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
  49. 49.  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
  50. 50. 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.
  51. 51. Cont’dInternal relations involve Top Management, other managers and employees.External relations with-suppliers, bankers, the government and customers.
  52. 52. 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
  53. 53. 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
  54. 54. 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
  55. 55. 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.
  56. 56.  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
  57. 57. 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.
  58. 58. Examples of this role Schedules Outcomes Performance standards. resources trade union agreements. New contracts
  59. 59. 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
  60. 60. 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.
  61. 61. 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).
  62. 62.  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.
  63. 63. Eg; of technical Skills: For Sales Managers; technical skills involve ability to find new sales prospects depending on the needs of the consumers.
  64. 64. 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.
  65. 65. 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.
  66. 66. cont. The Jobs are more Human than Technical in nature These skills are necessary to all managers but more so with Middle level Managers
  67. 67.  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
  68. 68.  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.
  69. 69.  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
  70. 70.  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.
  71. 71.  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.
  72. 72. 3. Conceptual Skills Is the ability to plan, coordinate and integrate all of the organisation’s interests and activities.
  73. 73. 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.
  74. 74. 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.
  75. 75. 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.
  76. 76. 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.
  77. 77.  3.Intelligence-Capcity not only to abstract but also to be practical 4.Judgment-The ability to know when to act.
  78. 78. 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
  79. 79.  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.
  80. 80. Middle Level Top LevelFirst line Managers ManagersManagersConceptual=10 Conceptual=15 Conceptual=35% % %Human=40% Human=55% Human =50%Technical=50% Technical=30% Technical=15%
  81. 81. What Skills Do ManagersNeed? Technical Interpersonal Conceptual Fundamental Management Diagnostic Skills Communication Decision Time Making Management © 2012 South-Western, 1–81 Cengage Learning, Inc. All rights reserved.