Introduction to Organizational Management

Organization

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

Organization Defined

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

Common Characteristics of Organizations

• Have a distinct purpose (goal).
• Composed of people.
• Have a deliberate structure.

Goals or Objectives

• The aim that an organization strives to achieve.

Managers

• Individuals responsible for overseeing the use of organizational resources to reach objectives.

Resources

• Tangible and concrete materials that support programs, practices, improvements, and service delivery.
  • 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

• As per Mary Parker Follett: The art of getting things done through others.
• As per George R. Terry: Management is a process of planning, organizing, actuating, and controlling to determine and achieve objectives using people and resources.

Definition of Productivity

• The ratio of output to input within a specific period, taking quality into account.

Definitions of Effectiveness and Efficiency

• Productivity implies both effectiveness and efficiency in individual and organizational performance.
• Effectiveness is achieving objectives.
• Efficiency is achieving objectives using 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

• The four basic functions are planning, organizing, leading, and controlling (POLC).

Planning

• Deciding in advance what to do, how, when, and who will do it in the future.
• It bridges the gap between the current state and desired future.
• Facilitates actions that wouldn't otherwise occur.

Organizing

• Bringing physical, financial, and human resources together and developing productive relationships to achieve organizational goals.
• Providing everything needed for operations (raw materials, tools, capital, personnel).

Leading

• Motivating, influencing, and guiding employees to work toward organizational goals.
  • Key activities: Communication with team members, inspiring performance, encouraging teamwork and positive culture.

Controlling

• Ensuring actions align with standards.
• Checking progress toward objectives and goals.
• Correcting deviations as needed.
• Measuring and correcting performance to meet objectives and plans.

Operative Functions/Functional Areas of Management

• Production (planning, quality control, inventory)
• Financial (financing, investment, dividends)
• Human Resource (manpower, recruitment, selection, training)
• Marketing (marketing mix)
• Supply Chain
• Information/IT

Levels of Management

• Top: Planning and coordinating, setting objectives and policies.
• Middle: Organizing, directing, executing plans, transmitting ideas from top to lower levels.
• Low/Operational: Directing, controlling, supervising operations, daily schedule execution, solving problems.

Top Management

• Also called strategic management.
• Includes Board of Directors, CEO, Chairman/President, Managing Directors, General Managers.
• Handles overall functions.
• Functions: Strategic work, defining goals, outlining vision, and planning long-term strategies, overall development.

Middle Management

• Also called tactical level.
• Includes Factory Managers, Heads of Department, Plant Managers, Senior Managers.
• Accountable for the work of junior staff.
• Functions: Planning executive strategies, formulating policies, transmitting top-level ideas, assisting in strategic decision-making.

Lower Management

• Also called operational level.
• Includes Shift In-charges, Senior Supervisors, Junior Managers, Trainee Engineers, Foremen.
• Directly responsible for machinery and materials.
• Functions: Supervising operations, planning and executing daily schedules, solving problems, maintaining records, oversee skilled workers.

Skill-Mix at Different Management Levels

• Different levels require varied skills: conceptual, human, technical.

Manager's Roles by Mintzberg

• Interpersonal
• Informational
• Decisional

Interpersonal Role

• Figurehead: Represents the organization, adhering to ethical guidelines, and communicating with customers and suppliers.
• Leader: Sets an example, directs subordinates, and makes decisions.
• Liaison: Coordinates between departments and organizations.

Informational Role

• Monitor: Monitors performance and changes across functions, internal and external environments.
• Disseminator: Communicates changes to affect employees and organization.
• Spokesperson: Represents the organization, promoting products and services.

Decisional Role

• Entrepreneur: Develops new products and services, investing organizational resources.
• Disturbance Handler: Addresses unpredictable issues from internal or external sources.
• Resource Allocator: Distributes resources among departments and functions.
• Negotiator: Works with stakeholders (suppliers, distributors, 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

Administration vs Management

• Administration: Primarily concerned with policy determination, high-level activities.
• Management: Implementing policies, mid-level activities.

Management as an Art

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

Management as a Science

• Organized body of knowledge pertaining to a particular field of enquiry.
• Based on research and systematic knowledge.
• Provides a structured approach for analyzing data.

Management as Both Art and Science

• Combines scientific principles and artistic skills.
• Successful managers use both to be effective.
• The science of management provides knowledge, while the art utilizes that knowledge.

Management as a Profession

• Specialized occupation requiring knowledge, skills, expertise.
• High commitment, education, and training.
• Adherence to professional standards, codes of conduct.
• Often needs licenses, certifications, ethical guidelines overseen by professional bodies

Is Management a Profession?

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

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

• Achieving group goals.
• Minimizing cost.
• Effective business operations.
• Profit maximization.
• Innovation.
• Social benefits.
• Resource utilization.
• Sound organization structure.
• Development.
• Integration of interest groups.
• Societal stability.

This quiz explores the fundamental concepts of organizations and management. It covers definitions, characteristics, goals, and the different types of resources involved in effective management. Test your understanding of how organized efforts contribute to achieving specific objectives.