Introduction to Management

Management Defined

• Management is the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently.

Managers

• Managers are responsible for supervising the use of an organization's resources to meet goals.
• Resources include people, skills, knowledge, machinery, computers, IT, and financial capital.

Organizational Performance

• Organizational performance is a measure of how efficiently and effectively managers use resources to satisfy customers and achieve goals.

Efficiency

• Efficiency measures how well or productively resources are used to achieve a goal.
• Efficiency means doing things right, and it is focused on the process.
• It is the ratio of output to input, focusing on maximizing output with minimal effort and resources.
• Efficiency is a productivity metric, representing the ability to do or produce something without wasting materials, time, or energy.

Effectiveness

• Effectiveness measures the appropriateness of organizational goals and the degree to which they are achieved.
• Effectiveness means doing the right thing, and it is end-result-focused.
• It is constantly measured to determine if actual output meets the desired output.
• Effectiveness is a quality metric, representing doing the right things in the right way at the right time.

Managerial Functions

• Managers at all levels and in all organizations perform the functions of planning, organizing, leading, and controlling.

Planning

• Managers develop a detailed action plan, identify goals, and create a reasonable course of action to attain them.
• Drafting a successful plan includes aligning the goal with the organizational vision, considering internal and external factors, and establishing a realistic timeline while being mindful of resource and budgetary constraints.

Organizing

• The organizing function involves putting the previously created plan into action.
• Key activities include identifying necessary steps, determining who will complete actions, deploying resources, and establishing levels of authority and responsibility.
• Organizing facilitates the development of the organizational structure and encourages collaboration among team members across various teams and departments.

Leading

• Managers should motivate and influence employees to do the work and meet performance standards.
• Effective leadership extends beyond delegating and directing; it includes communication, empathy, active listening, maintaining transparency, and empowering the team.
• Interpersonal skills and different leadership styles are crucial for managers when leading employees.

Controlling

• The controlling function involves monitoring performance and progress through project execution and making adjustments as needed.
• Managers ensure employees meet deadlines while balancing resources and the overall budget.
• They may need to take corrective actions and be proactive to ensure team members meet deadlines, potentially adjusting staffing and budget as needed.

Top-Level Managers

• Top-level managers, such as C-suite executives, oversee company strategy and have a broad perspective on the company.
• They are responsible for setting goals and objectives that employees must accomplish, which trickle down through management.
• Top-level management handles big-picture items like company vision, long-term planning, resource allocation, and policy establishment.
• Common titles include CEO, COO, President, and Vice President.

Middle Managers

• Middle managers, also known as executory management, are the layer between senior executives and first-line managers.
• They carry out decisions made by upper management, ensuring directives are efficiently and effectively executed.
• Middle managers have a broad range of responsibilities depending on the organization's size and structure.
• They may be responsible for day-to-day operations, planning, budgeting, and staffing, or specific functions like human resources, marketing, or sales.
• Common responsibilities include supervising first-line managers, coordinating work between departments, developing operational plans, and monitoring progress.
• Common job titles include Branch Manager, General Manager, Regional Manager, and Department Manager.

First-Line Managers

• First-line managers, also known as front-line or supervisory managers, are the lowest level of management in an organization.
• They directly supervise front-line employees and ensure they complete tasks on time and to standards.
• Responsibilities include hiring and training employees, setting work schedules, assigning tasks, and enforcing policies.
• Common job titles include Supervisor, Team Leader, Floor Manager, and Shift Manager.

Department

• A department is a group of people who work together and possess similar skills, knowledge, tools, or techniques.

Changes in Managerial Hierarchy

• The tasks and responsibilities of managers have changed drastically due to the widespread use of IT and global competition.
• Reconstructing involves attempting to make an organization more efficient by eliminating the jobs of a large number of people.
• Outsourcing involves contracting with another company, often abroad, to perform an activity the company once performed itself.

Empowerment

• Empowerment expands employee's knowledge, tasks, and responsibilities.
• This is achieved by providing new software and systems for decision-making and adopting new philosophies about job responsibilities and authority.
• Empowerment is especially necessary when layers of management are being reduced.

Self-Managed Teams

• Self-managed teams are groups of employees responsible for supervising their actions, monitoring team members, and ensuring the quality of work performed.

Managerial Role

• A managerial role is the set of specific tasks a person is expected to perform because of their position in the organization.
• Mintzberg identified three categories of roles: decisional, informational, and interpersonal.

Decisional Roles

• Entrepreneur: Searches out new opportunities and initiates change, such as implementing a new production process using new technology.
• Disturbance Handler: Handles unexpected events and crises, such as handling a fire.
• Resource Allocator: Designates the use of financial, human, and other organizational resources, such as approving funds for computer equipment and hiring personnel.
• Negotiator: Represents the company at negotiating processes, such as participating in salary negotiations with union representatives.

Informational Roles

• Monitor: Seeks out and gathers information relevant to the organization, such as finding out about legal restrictions on new product technology.
• Disseminator: Provides information where it is needed in the organization, such as providing current production figures to workers on the assembly line.
• Spokesperson: Transmits information to people outside the organization, such as representing the company at a shareholders' meeting.

Interpersonal Roles

• Figurehead: Represents the company in a symbolic way, such as cutting the ribbon at the opening of a new building.
• Leader: Guides and motivates employees to achieve organizational goals, such as helping subordinates set monthly performance goals.
• Liaison: Acts as a go-between among individuals inside and outside the organization, such as representing the retail sales division at a regional sales meeting.

Technical Skills

• They give the manager knowledge and ability to use different techniques to achieve what they want to achieve.
• Technical skills are not related only for machines, production tools, or other equipment and are most important for first-level managers.

Conceptual Skills

• These present knowledge or ability of a manager for more abstract thinking, allowing them to see the whole picture through analysis and diagnosis to predict the future of the business or department.
• Conceptual skill are vital for top managers

Human or Interpersonal Skills

• Human or Interpersonal skills present a manager's knowledge and ability to work with people.
• They are critical for management and are essential for all hierarchical levels in the company.