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.

Organization Defined

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

Common Characteristics of Organizations

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

Goals or Objectives

• The purpose an organization strives to achieve.

Managers

• The people responsible for supervising the use of organizational resources to meet goals.

Resources

• Concrete materials and tangible assets that support programs, practice improvements, and service delivery in an organization
  • 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: "Management is a process of planning, organizing, actuating, and controlling performed to determine and accomplish objectives by using people and resources."

Definition of Productivity

• Productivity = 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 the achievement of ends with the least amount of resources (time, money, etc.).

Scope of Management

• Activities: Planning, Organizing, Leading, Controlling
• Branches: Production, Financial, Marketing, Human Resource, Office, Supply Chain, Information/IT

Functions of Management

• Management has four basic functions: planning, organizing, leading, and controlling (POLC framework). Without these, there's little structure or focus in an organization.

Planning

• Planning is deciding in advance what to do in the future.
• According to Koontz and O'Donnell, planning involves deciding what to do, how to do it, when to do it, and who is to do it.
• Planning bridges the gap between where you are and where you want to go.
• It allows things to happen that wouldn't otherwise occur.

Organizing

• Organizing is the process of bringing together physical, financial, and human resources and developing productive relationships among them to achieve organizational goals.
• According to Henri Fayol, organizing a business means providing it with everything useful to its functioning—raw materials, tools, capital, and personnel.

Leading

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

Controlling

• Controlling aims to ensure everything happens in line with standards.
• According to Theo Haimann, controlling is checking whether progress is being made toward objectives and goals and acting to correct any deviations.
• According to Koontz & O'Donnell, controlling involves measuring and correcting subordinate performance activities to ensure that the organization's objectives and desired plans are accomplished.

Operative Functions/Functional Areas of Management

• Production, Quality control, Inventory, Financial Management, Investment decisions, Human Resource, Marketing, Supply Chain, Information/IT

Levels of Management

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

Top Management

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

Middle Management

• Also called tactical-level managers.
• Represented by Factory Managers, Heads of Departments, Plant Managers, and Senior Managers.
• Responsible for work done by junior staff.
• Functions include planning executive strategies, planning medium-scale policies, transmitting top management ideas to lower levels, helping top management in strategic decisions, guiding lower management in operational work.

Lower Management

• Also called operational-level managers.
• Represented by Shift in-charges, Senior Supervisors, Junior Managers, Trainee Engineers, and Foremen.
• Have direct responsibility for machinery and materials.
• Functions include supervising operations, planning and executing daily work schedules, solving problems, and keeping records.

Skill-mix at Different Management Levels

• Lower level managers need technical skills, middle managers require human and conceptual skills, and top managers need primarily conceptual skills.

Manager's Roles by Mintzberg

• Interpersonal, Informational, and Decisional roles.

Interpersonal Role

• Figurehead: States organizational ethical guidelines and employee principles when dealing with customers/suppliers.
• Leader: Provides an example for employees; gives commands/orders; makes decisions.
• Liaison: Coordinates between departments and organizations.

Informational Role

• Monitor: Evaluates managers' performance in different functions; watches for change in internal and external environments; predicts future effects.
• Disseminator: Informs employees about changes affecting them and the organization; Communicates organization's vision and purpose.
• Spokesperson: Launches campaigns to promote goods/services; informs the community about the organization's intentions.

Decisional Role

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

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

Difference Between Administration and Management

• Administration: Primarily concerned with determining objectives and policies (top-level activity). Thinking/determinative function.
• Management: Puts policies into action (middle-level activity). Doing/executive function.

Management as an Art and Science

• Art: Systematic and personalized application of theoretical principles combined with personal skills to achieve desired results; requires personal skill, intuition, creativity, and judgment to solve problems and make decisions.
• Science: Organized body of knowledge pertaining to a particular field; based on research, systematic knowledge, and principles; provides a structured approach to analyze data, make decisions, and predict outcomes.
• Management is both an art and a science. Successful managers combine both.

Management as a Profession

• A specialized occupation requiring specific knowledge, skills, and expertise in a field; commitment, education, and training; application of theoretical knowledge; adherence to professional standards/codes of conduct.
• Often requires licenses/certifications and is governed by bodies overseeing ethical guidelines and regulatory practices.
• Management exhibits some characteristics of a profession but lacks regulated entry and governing oversight.

Features of Management

• Goal-oriented
• Pervasive
• Continuous process
• Multidisciplinary
• Dynamic and flexible
• Decision-making
• Team-oriented and people-centric
• Multidimensional
• Hierarchy of authority
• Intangible force
• Art and science

Importance of Management

• Achievement of group goals
• Minimization of cost
• Change and growth
• Effective and smooth running of a business
• Higher profit
• Innovation
• Social benefits
• Effective utilization of resources
• Development of resources
• Sound organizational structure
• Useful for developing countries
• Integration of various interest groups
• Stability in society

Explore the fundamental concepts of organizations and management. This quiz covers the definitions, characteristics, and goals of organizations, as well as the role of managers and the various resources they utilize. Test your knowledge on how people work together to achieve specific objectives in a structured manner.