Introduction to Organization and Management

Organization Definition

• An organization is when two or more people work together in a structured manner to achieve a shared objective or set of objectives.

Organization Characteristics

• Organizations have a clearly defined purpose (a goal).
• They are comprised of people.
• They have a deliberate structure.

Goals or Objectives

• The purpose or aim an organization strives to achieve.

Managers

• Managers are responsible for overseeing the use of organizational resources to meet goals.

Resources

• Resources are the tangible assets supporting programs, improvement, and efficient service delivery within an organization.
  • Human resources: skills and knowledge of employees
  • Financial resources: capital, cash, investments, and loans
  • Physical resources: land, buildings, raw materials, and machinery
  • Information resources: data, knowledge, and information systems

Definitions of Management

• Mary Parker Follett's definition: the art of achieving tasks through others.
• George R. Terry's definition: a process of planning, organizing, acting, and controlling to achieve defined objectives using people and resources.

Definition of Productivity

• Productivity is the output-input ratio within a specific time period, accounting for quality.

Effectiveness and Efficiency

• Productivity implies a combination of effectiveness and efficiency in individual and organizational performance.
• Effectiveness is achieving the objectives.
• Efficiency is accomplishing goals with the least amount of resources (e.g., time, money).

Scope of Management

• Activities: Planning, organizing, leading, and controlling.
• Branches: Production, financial, marketing, human resource, office, supply chain, and information/IT management.

Functions of Management

• Management has four primary functions: planning, organizing, leading, and controlling, also known as the POLC framework. Without these functions, there is little structure or focus within an organization.

Planning

• Planning involves deciding beforehand what needs to be done in the future.
• Planning establishes a path from the current state to the desired future state.
• Planning enables actions that would not otherwise occur.

Organizing

• Organizing is the process of bringing together physical, financial, and human resources, and fostering productive relationships between them to realize organizational goals.
• Organizing involves providing everything needed for the organization to function (e.g., raw materials, tools, capital, personnel).

Leading

• Leading involves inspiring, influencing, and guiding employees toward organizational goals.
• Key activities include communicating with team members effectively, motivating employees to perform at their best, and fostering a positive organizational culture through teamwork and collaboration.

Controlling

• Controlling's purpose is to ensure activities comply with standards.
• Controlling involves checking whether necessary progress is being made toward objectives and goals, and taking corrective action when necessary.
• Controlling involves the measurement and correction of subordinate activities to ensure that desired organizational objectives and plans are achieved.

Operative Functions/Functional Areas of Management

• Production management (work analysis, quality control, inventory control, inspection)
• Financial management (financing, investment decisions, dividend decisions)
• Human resource management (manpower planning, recruitment, training development, compensation)
• Marketing management (marketing mix decisions)
• Supply chain management
• Information/IT management

Levels of Management

• Top management: sets objectives and policies, prepares strategic plans, and coordinates the overall direction of the organization. Examples include Board of Directors, CEO, President, etc.
• Middle management: organizes the departments, designs operational policies and procedures, and ensures the execution of the plans outlined by top management. Examples include factory managers, heads of departments, etc.
• Lower-level management: supervises workers directly, sets operations plans, and monitors their performance to ensure adherence to the plans. Examples include shift managers, supervisors, foremen, etc.

Top Management

• Responsible for overall organizational direction.
• Develops strategic plans and objectives.
• Defines the organizational vision and mission.
• Includes Board of Directors, CEO, Chairman/President

Middle Management

• Translates strategic plans into operational plans.
• Guides and coordinates lower-level managers.
• Responsible for medium-scale policies.

Lower Management

• Oversees the daily operations of the organization.
• Responsible for supervising workers directly.
• Solves daily operational problems.
• Implements detailed work schedules.

Management Skills

• Conceptual skills: ability to understand complex situations and develop creative solutions.
• Human skills: excellent ability to work effectively with others.
• Technical skills: applying expertise and performing specific tasks proficiently.

Manager's Roles (Mintzberg)

• Interpersonal roles (figurehead, leader, liaison)
• Informational roles (monitor, disseminator, spokesperson)
• Decisional roles (entrepreneur, disturbance handler, resource allocator, negotiator)

What Makes Managers Successful?

• Clear vision and goal setting
• Clear communication
• Leadership skills
• Adaptability
• Emotional intelligence
• Collaborative relationships
• Problem-solving and decision-making
• Reading and acquiring knowledge
• Ethical consciousness
• Art of delegation

Administration vs Management

• Administration: focused on major policies, planning, and strategy (top level)
• Management: execution of policies and plans (middle and lower levels)
  • Key distinctions include nature of work, type of function (thinking vs. doing), and level of authority

Management as an Art

• Management involves the systematic application of theoretical principles and personal skills to achieve desired results.
• Management relies on personal skills (intuition, creativity, judgment) to solve problems and make decisions.

Management as a Science

• Management is based on systematic knowledge and research, providing a structured approach.
• This allows managers to analyze data, make sound decisions, and predict outcomes.

Management as Both Art and Science

• Management is a blend of scientific principles and artistic skills.
• Effective managers combine the knowledge from science with the creative application of that knowledge in the art of management.

Management as a Profession

• Management often exhibits characteristics of a profession (e.g., knowledge, education, training), but lacks key features (e.g., regulated entry, governing body).
• It's more frequently seen as a developing profession.

Features of Management

• Goal-oriented.
• Pervasive (present throughout the organization).
• Continuous process.
• Multidisciplinary.
• Dynamic and flexible.
• Decision-making.
• Team-oriented and people-centric.
• Multidimensional.
• Hierarchy of authority.
• Intangible force (influencing the organization).
• Art and science.

Importance of Management

• Achievement of group goals.
• Minimization of costs.
• Effective business operations.
• Growth and change.
• Higher profits and innovation.
• Social benefits and resource utilization.
• Development of resources and sound organizational structure.
• Useful in developing economies.
• Integration of diverse interest groups.
• Stability in society.

This quiz covers the fundamental concepts of organizations, including their definitions, characteristics, and the role of managers. It explores the resources essential for achieving organizational goals and offers insights into management definitions. Test your understanding of these critical topics!