Introduction to Organization and Management

Organization

• An organization is when two or more people work together in a structured way to achieve a specific goal or set of goals.

Defining an Organization

• A deliberate arrangement of people to achieve a specific purpose.

Common Characteristics of Organizations

• Have a distinct purpose (goal)
• Are composed of people
• Have a deliberate structure

Goals or Objectives

• The purpose that an organization strives to achieve.

Managers

• Responsible for supervising the use of an organization's resources to achieve goals.

Resources

• Tangible assets supporting programs, improvements, and service delivery. Examples include:
  • Human: skills and knowledge of employees
  • Financial: capital, cash, investments, loans
  • Physical: land, buildings, raw materials, machinery
  • Information: data, knowledge, information systems

Definitions of Management

• Mary Parker Follett: The art of getting things done through others.
• George R. Terry: A process of planning, organizing, actuating, and controlling to determine and accomplish objectives using people and resources.

Definition of Productivity

• The output-input ratio within a time period, considering quality.

Definitions of Effectiveness and Efficiency

• Productivity implies effectiveness and efficiency in individual and organizational performance.
• Effectiveness is the achievement of objectives.
• Efficiency is achieving ends with the least amount of resources (time, money, etc.).

Scope of Management

• Activities: Planning, organizing, leading, and controlling.
• Branches: Operational aspects or branches include production, financial, marketing, human resource, office, supply chain, and information/IT management.

Functions of Management

• Planning, organizing, leading, and controlling (POLC). These are essential for structure and focus in an organization.

Planning

• Deciding in advance what is to be done in the future.
• "Deciding in advance what to do, how to do it, when to do it, and who is to do it" (Koontz and O'Donnell).
• Bridges the gap from current state to desired future state.
• Enables things to happen that wouldn't otherwise occur.

Organizing

• Bringing together physical, financial, and human resources, developing productive relationships among them to achieve organizational goals.
• "To organize a business means to provide it with everything useful to its functioning—raw materials, tools, capital, and personnel" (Henri Fayol).

Leading

• Motivating, influencing, and guiding employees toward organizational goals.
• Key activities include communicating effectively with team members, inspiring and motivating employees, encouraging teamwork, and fostering a positive organizational culture.

Controlling

• Ensuring everything occurs in conformity with standards.
• Checking progress toward objectives and acting to correct deviations (Theo Haimann).
• Measuring and correcting subordinate performance to ensure achieving organizational objectives and plans (Koontz & O'Donnell).

Operative Functions/Functional Areas of Management

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

Levels of Management

• Top: Planning and coordinating, setting objectives and policies, preparing strategic plans, appointing middle-level managers.
• Middle: Organizing and installing different departments, designing operational policies, executing plans, guiding, training, and motivating workers.
• Low: Directing and controlling workers, supervising operations, planning and executing daily schedules, solving problems, keeping daily records.

Top Management

• Also called strategic management.
• Roles include the Board of Directors, CEO, Chairman/President, Managing Directors, and General Managers.
• Responsible for overall functions, overall strategic work, determining and finalizing aims/goals, defining vision of work, and working out long-term plans.

Middle Management

• Also called tactical-level managers.
• Includes Factory Managers, Heads of Departments, Plant Managers, and Senior Managers.
• Accountable for the work done by lower-level managers.
• Plan executive strategies, medium-scale policies, transmit top-level ideas to lower levels, help top management in strategic decisions, and guide lower management in operations.

Lower Management

• Also called operational-level managers.
• Roles include Shift In-charges, Senior Supervisors, Junior Managers, Trainee Engineers, and Foremen.
• Responsible for direct supervision of machinery and materials.
• Supervise operations, plan and execute daily schedules, solve problems, keep daily records and work with skilled workers/operators.

Skill Mix at Different Management Levels

• Lower level managers: Conceptual skills, human skills, technical skills.
• Middle level managers: Conceptual skills, human skills, technical skills.
• Top level managers: Conceptual skills, human skills, and technical skills.

Manager's Roles by Mintzberg

• Interpersonal, informational, and decisional roles.

Interpersonal Role

• Figurehead: States organizational ethical guidelines and principles of behavior for employee dealings with customers and suppliers.
• Leader: Provides an example, gives commands and orders, makes decisions.
• Liaison: Coordinates between different departments and organizations.

Informational Role

• Monitor: Evaluates manager performance in different areas, watches for changes in external and internal environments affecting the organization.
• Disseminator: Informs employees about changes, communicates organization's vision and purpose.
• Spokesperson: Launches advertising campaigns to promote new goods and services, gives speeches.

Decisional Role

• Entrepreneur: Commits organizational resources to develop innovative goods and services.
• Disturbance handler: Takes corrective action to deal with unexpected problems.
• Resource allocator: Allocates resources among different functions and departments.
• Negotiator: Works with suppliers, distributors, and labor unions.

What Makes Managers Successful?

• Clear vision & goal setting, clear communication, leadership skills, adaptability, emotional intelligence, collaborative relationships, problem-solving & decision-making, reading and acquiring knowledge, ethical consciousness, and the art of delegation.

Difference Between Administration and Management

• Administration: Primarily concerned with determining objectives and policies (thinking function, top-level activities).
• Management: Puts policies and plans into action (doing/executive function, middle-level activities), influenced by public opinion, and involves planning and organizing.

Administration vs Management (Continued)

• Decision-making: Administration is often influenced by public opinion; management is a doing/executive function.
• Main function: Administration is planning and organizing; management is motivation and controlling.
• Administrative/technical ability: Administration needs administrative ability, management more often needs technical ability.
• Coordination/control: Administration coordinates finances, production, and distribution. Management uses the organization to achieve fixed targets.

Management as an Art

• Systematic and personalized application of theoretical principles and personal skills to achieve desired results. Requires personal skills, intuition, creativity, and judgment to solve problems and make decisions.

Management as a Science

• Organized body of knowledge pertaining to a specific field of enquiry. Based on research, systematic knowledge, and principles. Provides a structured approach to analyze data, make decisions, and predict outcomes.

Management as Both Art and Science

• Combines scientific principles and artistic skills. Successful managers combine both to be effective. The science provides knowledge; the art is about applying that knowledge.

Management as a Profession

• Refers to a specialized occupation requiring specific knowledge, skills, and expertise. Typically involves commitment, education, and training, with an application of theoretical knowledge and adhering to professional standards/codes of conduct. Often requires licenses/certifications, is regulated by professional bodies/associations, and oversees ethical guidelines/regulatory practices.

Is Management a Profession?

• Often considered a developing profession rather than a fully-fledged one. Exhibits some professional characteristics (specialized knowledge, formal education/training, code of ethics), but lacks a regulated entry and governing body that oversees practice.

Features of Management

• Goal-oriented, pervasive, continuous process, multidisciplinary, dynamic and flexible, decision making, team-oriented & people-centric, multidimensional, hierarchy of authority, intangible force, and art and science.

Importance of Management

• Achievement of group goals, minimization of cost, change and growth, effective/smooth business running, higher profits, providing innovation, social benefits, effective resource utilization, resource development, organization structure, and usefulness to developing countries, and integration of interest groups/stability in society.

This quiz explores the fundamental concepts of organizations, their characteristics, and the role of managers. You'll learn about the types of resources organizations utilize to achieve their goals and various definitions of management that highlight its significance in a structured environment.