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Chapter 1: Meaning and Significance of Management
Managers and You in the Organization
Md. H Asibur Rahman
Lecturer
Department of Business Administration-General
Bangladesh University of Professionals (BUP)
Mob: 01769028369
Email: asibur.rahman@bup.edu.bd
“Management is, above all, a practice where art, science, and craft
meet”- Henry Mintzberg
Learning Objectives
❑ Definition of Management
❑ Scope & Nature of Management
❑ Efficiency Vs. Effectiveness
❑ Administration vs. Management
❑ Organization & it’s 3 Characteristics
❑ Kinds of Managers
❑ Management Skills
❑ Basic Management Functions
❑ Principles and Techniques of management
❑ Management Process
Definition of Management
❑ Management is the process of creating an environment through
planning, organizing, leading and controlling so that employees can
work together to achieve organizational goal effectively and
efficiently.
❑ Management involves coordinating and overseeing the work
activities of others so that their activities are completed efficiently
and effectively.
❑ Manager
▪ Who coordinates and oversees the work of
other people so organizational goals can be
accomplished.
▪ His job is not about personal achievement—it’s about
helping others do their work.
Two Prominent Management Key-Words
❑Efficiency
▪ “Doing things right”
▪ Getting the most output for the least inputs
▪ Using resources wisely in a cost-effective way
❑Effectiveness
▪ “Doing the right things”
▪ Attaining organizational goals
▪ Making the right decisions and successfully implementing them
Management Vs. Administration
Organization & it’s 3 Characteristics
❑ An organization is a deliberate collection of people brought
together to accomplish some specific purpose (that individuals
independently could not accomplish alone).
❑ A consciously coordinated social unit composed of two or more
people that functions on a relatively continuous basis to achieve a
common goal or set of goals.
❑ Common Characteristics of Organizations
▪ Have a distinct purpose (goal)
▪ Composed of people
▪ Have a deliberate structure
How can managers be classified in organizations?
❑ First-line Managers (supervisor, coordinator, and office manager)
▪ Individuals who manage the work of non-managerial employees.
▪ involved with producing the organization’s products or servicing
❑ Middle Managers (plant manager, operations manager, & division head)
▪ Individuals who manage the work of first-line managers.
▪ responsible for turning the organization’s strategy into action
❑ Top Managers (president, vice president, & CEO)
▪ Individuals who are responsible for making
organization-wide decisions and establishing
plans and goals that affect the entire
organization.
How can managers be classified in organizations?
❑ Regardless of level, managers are
also usually associated with a
specific area within the
organization, such as marketing,
finance, operations, human
resources, administration, or
some other area.
What Managers Do?
❑Three Approaches to Defining What Managers Do.
Functions they perform Roles they play Skills they need
▪ Planning
▪ Organizing
▪ Leading
▪ Controlling
▪ Interpersonal roles
▪ Informational roles
▪ Decisional roles
▪ Technical skills
▪ Human skills
▪ Conceptual skills
What ManagersDo?: Functions Manager’s Perform
❑ Planning
▪ Defining goals, establishing strategies to achieve goals, developing plans to
integrate and coordinate activities.
❑ Organizing
▪ Arranging and structuring work to accomplish organizational goals.
❑ Leading
▪ Working with and through people to accomplish goals.
❑ Controlling
▪ Monitoring, comparing,
and correcting work.
Four Management Functions
What Managers Do?: Roles Manager’s Play
❑ Henry Mintzberg, a well-known
management researcher who studied
actual managers at work
❑ Mintzberg concluded that what
managers do can best be described by
looking at the managerial roles they
engage in at work.
❑ Roles are specific actions or
behaviors expected of a
manager.
❑ A number of follow-up studies have
tested the validity of Mintzberg’s role
categories, and the evidence generally
supports the idea.
Functions Vs Roles of Managers
What types of skills do managers need?
❑ Robert L. Katz proposed that managers need three critical skills in
managing:
Skills Description
Technical Skills
▪ The ability to apply specialized knowledge or expertise.
▪ All jobs require some specialized expertise, and many
people develop their technical skills on the job.
Human Skills
▪ The ability to work with, understand, and motivate other
people, both individually and in groups
Conceptual Skills
▪ The mental ability to analyze and diagnose complex
situations
Skills Needed at Different Managerial Levels
▪ decision making,
▪ team building,
▪ decisiveness
▪ assertiveness, politeness,
▪ personal responsibility,
▪ trustworthiness & loyalty,
▪ professionalism,
▪ tolerance,
▪ adaptability,
▪ creative thinking,
▪ resilience,
▪ listening,
▪ self-development.
❑ Other important managerial competencies
Fundamental Management Skills
Skills Description
Diagnostic
▪ The manager’s ability to visualize the most
appropriate response to a situation
Communication
▪ The manager’s abilities both to effectively convey
ideas and information to others and to effectively
receive ideas and information from others
Decision-Making
▪ The manager’s ability to correctly recognize and
define problems and opportunities and to then select
an appropriate course of action to solve problems
and capitalize on opportunities
Time Management
▪ The manager’s ability to prioritize work, to work
efficiently, and to delegate appropriately
Scientific Management
❑Fredrick Winslow Taylor(1856-1915)
▪ He worked at the Midvale and Bethlehem Steel
Companies in Pennsylvania, USA. During his career, he
observed many inefficiencies.
▪ They were as follows:
a. Employees used vastly different techniques to do
the same job.
b. Virtually there was no work standard for the
employees.
c. Workers were placed on the jobs with little or no
matching their abilities with the job requirements.
d. Workers often worked at a slower pace than their
capacity what he called ‘soldiering’.
e. Wastage was huge.
Principles of Scientific Management: Frederick Taylor
1. Develop a science for each element of an individual’s
work to replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and
develop the worker.
3. Heartily cooperate with the workers to ensure
that all work is done in accordance with the principles
of the science that has been developed.
4. Divide work and responsibility almost equally
between management and workers.
▪ Management does all work for which it is better
suited than the workers.
❑ An approach that involves using the scientific method to find
the “one best way” for a job to be done
Principles of Scientific Management: Frederick Taylor
4. Divide work and responsibility almost equally between
management and workers.
5. Use time studies of jobs, standards planning, exception rule of
management, slide-rules, instruction cards, and piece-work pay
systems to control and motivate employees.
▪ Management does all work for which it is better suited than the
workers.
❑ An approach that involves using the scientific method to find
the “one best way” for a job to be done
❑Management by exception (MBE) is a practice where only significant deviations
from a budget or plan are brought to the attention of management. The idea behind
it is that management's attention will be focused only on those areas in need of
action.
Principles of General Management: Henry Fayol
❑ General Administrative Theory
▪ An approach to management that focuses on describing
what managers do and what constitutes good
management practice
❑ Principles of Management
▪ Fundamental rules of management that
could be applied in all organizational
situations and taught in schools
Principles of General Management: Henry Fayol’s
❑ Principles of Management
1. Division of work. Specialization increases output by making
employees more efficient.
2. Authority. Managers must be able to give orders, and authority
gives them this right.
3. Discipline. Employees must obey and respect the rules that
govern the organization.
4. Unity of command. Every employee should receive orders
from only one superior.
Principles of General Management: Henry Fayol’s
5. Unity of direction. The organization should have a single plan
of action to guide managers and workers.
6. Subordination of individual interests to the general
interest. The interests of any one employee or group of
employees should not take precedence over the interests of the
organization as a whole.
7. Remuneration. Workers must be paid a fair wage for their
services.
8. Centralization. This term refers to the degree to which
subordinates are involved in decision-making.
9. Scalar chain. The line of authority from top management to
the lowest ranks is the scalar chain.
Principles of General Management: Henry Fayol
10.Order. People and materials should be in the right place at the
right time.
11.Equity. Managers should be kind and fair to their subordinates.
12.Stability of tenure of personnel. Management should
provide orderly personnel planning and ensure that
replacements are available to fill vacancies.
13.Initiative. Employees allowed to originate and carry out plans
will exert high levels of effort.
14.Esprit de corps. Promoting team spirit will build harmony and
unity within the organization
The Max Weber’s Theory of Bureaucracy
❑Max Weber (1864-1920)
• Was a German sociologist, known
as the father of bureaucracy.
• Developed a theory of authority
based on an ideal type of
organization (bureaucracy)
▪ Bureaucracy is a form of
organization characterized by
division of labor, a clearly defined
hierarchy, detailed rules and
regulations, and impersonal
relations.
Chapter 1 Meaning and Significance of Management.pdf

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Chapter 1 Meaning and Significance of Management.pdf

  • 1. Chapter 1: Meaning and Significance of Management Managers and You in the Organization Md. H Asibur Rahman Lecturer Department of Business Administration-General Bangladesh University of Professionals (BUP) Mob: 01769028369 Email: asibur.rahman@bup.edu.bd “Management is, above all, a practice where art, science, and craft meet”- Henry Mintzberg
  • 2. Learning Objectives ❑ Definition of Management ❑ Scope & Nature of Management ❑ Efficiency Vs. Effectiveness ❑ Administration vs. Management ❑ Organization & it’s 3 Characteristics ❑ Kinds of Managers ❑ Management Skills ❑ Basic Management Functions ❑ Principles and Techniques of management ❑ Management Process
  • 3. Definition of Management ❑ Management is the process of creating an environment through planning, organizing, leading and controlling so that employees can work together to achieve organizational goal effectively and efficiently. ❑ Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. ❑ Manager ▪ Who coordinates and oversees the work of other people so organizational goals can be accomplished. ▪ His job is not about personal achievement—it’s about helping others do their work.
  • 4. Two Prominent Management Key-Words ❑Efficiency ▪ “Doing things right” ▪ Getting the most output for the least inputs ▪ Using resources wisely in a cost-effective way ❑Effectiveness ▪ “Doing the right things” ▪ Attaining organizational goals ▪ Making the right decisions and successfully implementing them
  • 6. Organization & it’s 3 Characteristics ❑ An organization is a deliberate collection of people brought together to accomplish some specific purpose (that individuals independently could not accomplish alone). ❑ A consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals. ❑ Common Characteristics of Organizations ▪ Have a distinct purpose (goal) ▪ Composed of people ▪ Have a deliberate structure
  • 7. How can managers be classified in organizations? ❑ First-line Managers (supervisor, coordinator, and office manager) ▪ Individuals who manage the work of non-managerial employees. ▪ involved with producing the organization’s products or servicing ❑ Middle Managers (plant manager, operations manager, & division head) ▪ Individuals who manage the work of first-line managers. ▪ responsible for turning the organization’s strategy into action ❑ Top Managers (president, vice president, & CEO) ▪ Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.
  • 8. How can managers be classified in organizations? ❑ Regardless of level, managers are also usually associated with a specific area within the organization, such as marketing, finance, operations, human resources, administration, or some other area.
  • 9. What Managers Do? ❑Three Approaches to Defining What Managers Do. Functions they perform Roles they play Skills they need ▪ Planning ▪ Organizing ▪ Leading ▪ Controlling ▪ Interpersonal roles ▪ Informational roles ▪ Decisional roles ▪ Technical skills ▪ Human skills ▪ Conceptual skills
  • 10. What ManagersDo?: Functions Manager’s Perform ❑ Planning ▪ Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities. ❑ Organizing ▪ Arranging and structuring work to accomplish organizational goals. ❑ Leading ▪ Working with and through people to accomplish goals. ❑ Controlling ▪ Monitoring, comparing, and correcting work.
  • 12. What Managers Do?: Roles Manager’s Play ❑ Henry Mintzberg, a well-known management researcher who studied actual managers at work ❑ Mintzberg concluded that what managers do can best be described by looking at the managerial roles they engage in at work. ❑ Roles are specific actions or behaviors expected of a manager. ❑ A number of follow-up studies have tested the validity of Mintzberg’s role categories, and the evidence generally supports the idea.
  • 13.
  • 14. Functions Vs Roles of Managers
  • 15. What types of skills do managers need? ❑ Robert L. Katz proposed that managers need three critical skills in managing: Skills Description Technical Skills ▪ The ability to apply specialized knowledge or expertise. ▪ All jobs require some specialized expertise, and many people develop their technical skills on the job. Human Skills ▪ The ability to work with, understand, and motivate other people, both individually and in groups Conceptual Skills ▪ The mental ability to analyze and diagnose complex situations
  • 16. Skills Needed at Different Managerial Levels ▪ decision making, ▪ team building, ▪ decisiveness ▪ assertiveness, politeness, ▪ personal responsibility, ▪ trustworthiness & loyalty, ▪ professionalism, ▪ tolerance, ▪ adaptability, ▪ creative thinking, ▪ resilience, ▪ listening, ▪ self-development. ❑ Other important managerial competencies
  • 17. Fundamental Management Skills Skills Description Diagnostic ▪ The manager’s ability to visualize the most appropriate response to a situation Communication ▪ The manager’s abilities both to effectively convey ideas and information to others and to effectively receive ideas and information from others Decision-Making ▪ The manager’s ability to correctly recognize and define problems and opportunities and to then select an appropriate course of action to solve problems and capitalize on opportunities Time Management ▪ The manager’s ability to prioritize work, to work efficiently, and to delegate appropriately
  • 18. Scientific Management ❑Fredrick Winslow Taylor(1856-1915) ▪ He worked at the Midvale and Bethlehem Steel Companies in Pennsylvania, USA. During his career, he observed many inefficiencies. ▪ They were as follows: a. Employees used vastly different techniques to do the same job. b. Virtually there was no work standard for the employees. c. Workers were placed on the jobs with little or no matching their abilities with the job requirements. d. Workers often worked at a slower pace than their capacity what he called ‘soldiering’. e. Wastage was huge.
  • 19. Principles of Scientific Management: Frederick Taylor 1. Develop a science for each element of an individual’s work to replace the old rule-of-thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. ▪ Management does all work for which it is better suited than the workers. ❑ An approach that involves using the scientific method to find the “one best way” for a job to be done
  • 20. Principles of Scientific Management: Frederick Taylor 4. Divide work and responsibility almost equally between management and workers. 5. Use time studies of jobs, standards planning, exception rule of management, slide-rules, instruction cards, and piece-work pay systems to control and motivate employees. ▪ Management does all work for which it is better suited than the workers. ❑ An approach that involves using the scientific method to find the “one best way” for a job to be done ❑Management by exception (MBE) is a practice where only significant deviations from a budget or plan are brought to the attention of management. The idea behind it is that management's attention will be focused only on those areas in need of action.
  • 21. Principles of General Management: Henry Fayol ❑ General Administrative Theory ▪ An approach to management that focuses on describing what managers do and what constitutes good management practice ❑ Principles of Management ▪ Fundamental rules of management that could be applied in all organizational situations and taught in schools
  • 22. Principles of General Management: Henry Fayol’s ❑ Principles of Management 1. Division of work. Specialization increases output by making employees more efficient. 2. Authority. Managers must be able to give orders, and authority gives them this right. 3. Discipline. Employees must obey and respect the rules that govern the organization. 4. Unity of command. Every employee should receive orders from only one superior.
  • 23. Principles of General Management: Henry Fayol’s 5. Unity of direction. The organization should have a single plan of action to guide managers and workers. 6. Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole. 7. Remuneration. Workers must be paid a fair wage for their services. 8. Centralization. This term refers to the degree to which subordinates are involved in decision-making. 9. Scalar chain. The line of authority from top management to the lowest ranks is the scalar chain.
  • 24. Principles of General Management: Henry Fayol 10.Order. People and materials should be in the right place at the right time. 11.Equity. Managers should be kind and fair to their subordinates. 12.Stability of tenure of personnel. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. 13.Initiative. Employees allowed to originate and carry out plans will exert high levels of effort. 14.Esprit de corps. Promoting team spirit will build harmony and unity within the organization
  • 25. The Max Weber’s Theory of Bureaucracy ❑Max Weber (1864-1920) • Was a German sociologist, known as the father of bureaucracy. • Developed a theory of authority based on an ideal type of organization (bureaucracy) ▪ Bureaucracy is a form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relations.