Chap 2 Introduction to the management.pdf

Introduction to Management
Unit – 2
Kushal Acharya - Herald International College

• History of management dates back to time when humans organized
themselves into communities
• Whenever people worked together in groups for hunting, fighting,
growing crops etc they used management
• Term may be new, but process has existed since very long

• A good management is key to organizational effectiveness and
success
• Managers achieve good management through their managerial skills
and competencies
• Thus, organizations need those managers who have necessary skills
and abilities to develop strategies for the survival and growth in the
present competitive world

• Managing leads to harmonious and coordinated work
• Good management to an organization is like a good health for the
body
• Managing improves quality of work and makes working life more
pleasant and meaningful

Definitions of Management
• Mary Parker Follett (1919) – “the art of getting things done with and
through people”
• Chester I. Bernard (1938) – “getting things done through people by
making the efficient use of resources”
• Kast and Rosenzweig (1974) – “to make efficient use of resources and
to get people and other resources to work harmoniously together in
order to achieve objectives”

Definitions of Management
• Ricky W Griffin (2016) – “Management is a set of activities (including
planning, organizing, leading and controlling) directed at an
organization’s resources (human, financial, physical and information),
with the aim of achieving organizational goals effectively and
efficiently in a changing environment”

Characteristics of Management
Universally applicable
Goal Directed
Continuous process
Integrating process
Situational Approach
Multi-disciplinary
Social process
Coping with environment

Functions of Management
Planning
Implementation
(organizing and
directing)
Evaluation
and
Control

Principles of Management
Management by objectives
Division of work
Substitution of resources
Span of control
Unity of function
Unity of command
Delegation of authority
Management by exception
Shortest decision path

Managerial hierarchy
• Functions of management are performed by persons called
‘managers’
• These managers can be classified by level in the organizational
hierarchy and type
• Hierarchy is an organization’s chain of command

• Every manager at every level of hierarchy, supervises one or more
subordinates which are called the span of control
• Managerial hierarchy thus means dividing the authority and
responsibility among the various managerial positions
• Every level of hierarchy is an organization must have a distinct level of
responsibility. If superiors and subordinates are required to do more
or less the same work, the hierarchy would not be accepted

• The levels of hierarchy must be reviewed to determine how clearly
one is different from the others. Or, a level may not be necessary
• Each level must be given clear responsibility and authority to carry
out the assigned tasks because vagueness would be an obstacle for
the managers to achieving the results expected of them
• There must never be overlapping levels of authority, as it may create
confusion among employees in their areas of jurisdiction, and
conflicts among employees

Types of managers
A. Managers
by Level
B. Managers
by Type

A. Managers by Level
Top Managers
Middle Managers
First-line
Managers

Top Managers
• Top management also called ‘executive management’
• Limited in number, but lead entire organization and are responsible
for overall management
• Main job: establish mission and goals, as well as general operating
policies
• Focus on long term issues, and emphasize growth, survival and overall
effectiveness of the organization
• They make sure the goals and policies are translated into actions and
results are achieved

Top Managers
• Top management takes responsibility for the organization’s success or
failure
• Most common job titles are chairman, president, vice-president,
executive director, chief executive officer, general manager, deputy
general manager, managing director, deputy managing director

Middle managers
• Lies between top and front line
• Also called tactical management
• Middle managers translate the general and long range goals set by
top management into concrete, specific goals
• Middle managers plan, organize, lead, coordinate and control the
activities of the first line managers
• Common job titles are: marketing manager, HR manager, finance
manager, admin manager, treasurer, R&D manager

First-line managers
• Also known as operational managers, front line managers or
supervisory level managers
• Responsible to carry out day-to-day activities to ensure short term
goals are met
• Managers at this level supervise, guide, lead, coordinate and control
the work of operating staff
• Common job titles: officers, supervisors, foremen, unit heads

B. Managers by Types
Line
Managers
Staff
Managers

Line managers
• Managers who are directly in the chain of command
• Responsible for principal activities
• Deal directly with organization’s primary goods and services, make
things, sell things or provide customer service
• Responsible for achievement of organizational goals
• They have power and authority along with ultimate responsibility
• Accountable for the “bottom line” results of their decisions

Staff managers
• Need for specialized and technical information increases as
organizations become more complex. Managers hired for these
expert services are staff managers
• Provide advice and expertise in their specialized area of knowledge
• Assist line managers in undertaking their functions
• Outside formal chain of command

Managerial Skills
• Skill is an ability or proficiency to perform a particular task
• Managers at all levels need specific set of skills, which vary in degree
depending on the management level
• Henri Fayol identified three basic managerial skills : technical, human,
conceptual. Robert Katz further elaborated these skill categories and
popularized the classification

Managerial Skills
• Technical skills –
• Job-specific knowledge and techniques
• Needed the most by the first line supervisors, as they oversee the goods and
serviced produced and delivered
• Thus, these skills relate to usage of tools, techniques and procedures of their
specialized area
• Eg: an accountant need to have expertise in accounting

Managerial Skills
• Human skills –
• Involve ability to understand, lead, communicate, coordinate and control the
behavior of other individuals and groups
• Managers need knowledge and skills in the field of communication,
motivation, conflict management, group dynamics and so on, as dealing with
people is a complex job
• A manager must be able to communicate both his/her own and the top
management’s ideas clearly
• Sensitivity to feelings, empathy, ability to mediate conflicts between
subordinates are important human skills required by manager to successfully
lead and manage the teams
• Human skills reflect leadership abilities of a manager

Managerial Skills
• Conceptual skills –
• Involve the ability to visualize the organization in its totality and its
environment
• Involve identification, analysis, diagnosis, anticipation and management of
the interplay and interaction of internal and external environment with the
organization
• Different parts need to be understood and integrate to function as an
effective whole
• Managers need to look opportunities in environment and develop strategies
to capture those opportunities
• Planning and organizing functions require high level of conceptual skills

Managerial Skills

Managerial Roles
• A role is defined as – “an expected behavior for a certain status or
position”
• The functions of management prescribes managers what to do, while
the management roles indicate how to do
• Henry Mintzberg described 10 different roles of a manager. They are
not independent or isolated, but are unified whole of managerial
roles

Managerial Roles

Managerial Roles
• Interpersonal roles –
• Managers assume these roles to coordinate and interact with organizational
members to direct and supervise them
• In this role, managers build relationship with insiders and outsiders of
organization: peers, superiors, subordinates, vendors, customers, bankers by
communicating formally and informally

Managerial Roles
• Interpersonal roles (cont.) –
• Characterized by three activities:
• Figurehead role – greeting and receiving visitors, chairing board members, representing
organization
• Leader role – directing, coordinating, motivating, staffing and controlling
• Liaison role – maintaining relations internally and externally for image building, resource
gathering and so on

Managerial Roles
• Informational role –
• Related with tasks necessary to obtain and transmit information
• Managers handle great deal of information in connection with their work
• Sources of information are varied
• The role of manager is to develop a network of contacts and relations within
and outside the organization for collection, processing and dissemination of
those information

Managerial Roles
• Informational roles (cont.) –
• Characterized by three activities:
• Monitor role – assessing and watching over the activities of the organization
• Disseminator role – providing information to the subordinates and keeping them
informed about what is going on around the organization and precautions to take
• Spokesperson role – representing the unit of work to explain organizational members
and outsiders about the related issues of their interest

Managerial Roles
• Decisional Role –
• Decision making involves negotiations and compromises with competing and
conflicting interests
• Managers develop strategies to deal with such negotiations and uncertainties,
and put them into action to attain goals
• Associated with the method managers use to plan strategy and utilize
resources

Managerial Roles
• Decision role (cont.) –
• Different decision roles can be:
• Entrepreneurship role – concerned with planning and initiating change within the
organization
• Disturbance handler role – related with maintaining congenial working environment and
organizational stability by containing problems of disagreements and conflicts
• Resource allocator role – deal with the managerial function of allocating money, people,
time, equipment to different units
• Negotiator – involves representing and protecting organization’s interest dealing with
insiders and outsiders to add value to work

Changing roles of management
Top managers ensure the
organizations’s
competitiveness and lower
level managers’ and
employees job security
Lower level managers and
employees implement top
management’s strategy
with loyalty and obedience
Empowered lower-level
managers and employees
are responsible for the
organization’s
competitiveness and their
own development
Top management
support personnel
development and
ensure employability
Traditional  Contemporary 

Management careers
• Highly dynamic and fast growing profession, mainly due to growing
competition, globalization, environmental changes, and ever-
changing customer needs and expectations
• BBS prepares and qualifies graduates for wide varieties of career
paths with multiple industry and sector options
• Finance, accounting, operations, marketing, human resource could be
few to name

Management careers
• Importance of management for underdeveloped countries fully
realized
• Economic development is the function not only of capital, human and
material resources, but also of their optimum utilization achieved by
effective and efficient management
• Economy of Nepal is an inadequately managed economy

Management careers
• Management skills are not available to many sectors and
organizations of the country
• As competition grows and efficiency factors get important, demand
for business graduates increase
• Plenty of self-employment opportunities also exist in the economy

Management careers
• Business management opportunities are prevalent in almost all
industries and business sectors like healthcare, hospitality business,
retail business, export-import trade, I/NGOs, and so on.
• A business degree allow students to work as junior managers such
industries and sectors
• Further career in management depends on talent, experience and
self-marketing skills of the graduate

Emerging challenges for management
Growing globalization of business
Assuring quality of products and services
Addressing public concerns for ethics and social responsibility
Adjusting with fast-paced technology
Meeting good corporate governance norms
Remain competitive through innovation and change
Developing strategy for empowerment
Promoting relationship management
Addressing public concerns for ethics and social responsibility

Chap 2 Introduction to the management.pdf

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