Management Theory and Practice Chapter 1

Course Information

• Course Title: Management Theory and Practice
• Institution: Maryland International College

Course Overview

• Chapter One: Overview of Management
• Chapter Two: Evolution of Management
• Chapter Three: Planning
• Chapter Four: Organizing
• Chapter Five: Staffing
• Chapter Six: Directing
• Chapter Seven: Controlling

Chapter 1: General Overview of Management

• Definition of Management
• Nature and Characteristics of Management
• Significance of Management
• Levels of Management
• Managerial Roles
• Managerial Skills
• Universality of Management

Definitions

• Management is the process of coordinating all resources through planning, organizing, staffing, directing/leading, and controlling to achieve organizational goals/desired objectives (Henry L. Sisk)
• Management is the art of getting things done through and with the people in formally organized groups (Koontz H.)
• Management is the process of getting things done, effectively and efficiently, through and with other people (Mary Parker Follett)

Efficiency and Effectiveness

• Efficiency: Means doing things right; refers to the relationship between inputs and outputs; seeks to minimize resource costs.
• Effectiveness: Means doing the right things; goal attainment.

Manager

• Manager: The person responsible for supervising the use of an organization's resources to meet its goals.
• Everyone is a manager of their own time, energy, and talents.

Organization

• Organization: A systematic arrangement of people brought together to accomplish a specific purpose.
• Common Characteristics of Organizations: Distinct purpose (goal), Composed of people, Deliberate structure.

Characteristics of Management

• Goal-oriented: Management is a means to achieve goals. The basic goal is to ensure efficiency and economy in the utilization of resources.
• Universal: Management is an essential element of every organized activity, regardless of size or type.
• Integrative Force: Management unifies human and other resources, creating a whole greater than the sum of its parts.
• Social Process: Management involves people, through people, and for people. Interpersonal relations are key.
• Multidisciplinary: Management deals with human behavior under dynamic conditions, drawing on several disciplines (engineering, sociology, psychology, economics, etc.).
• Intangible: Management is an invisible force, felt through its results.
• Continuous Process: Management is dynamic and ongoing, continuously operating for group goal achievement.

Management Process/Functions

• Five functions of management: Planning, Organizing, Staffing, Directing, Controlling
• Functions provide a framework for organizing management knowledge.

Planning

• Definition: The process of identifying and selecting appropriate organizational goals and courses of action.
• Planning involves forethought; it's about what, who, how, when, where, and how much to achieve future objectives using planned actions.
• Planning involves determining short-range and long-range objectives; developing strategies and courses of action for achieving objectives; and formulating policies, procedures, and rules for strategy and plan implementation.

Organizing

• Determining tasks to be done, who is to do them, grouping tasks, who reports to whom, and where decisions are made.

Staffing

• Filling positions in the organization's structure
• Identifying prospective employees to fill created jobs
• Determining number and kind of employees needed
• Recruiting employees
• Selecting suitable employees
• Placement and induction
• Training and development

Directing/Leading

• Aiming at getting organizational members headed in the right direction for accomplishing objectives.
• Leading is the heart and soul of management.
• Influencing others to engage in necessary work behaviors for achieving organizational goals.

Controlling

• The process of monitoring performance, comparing it to goals, and correcting significant deviations.

Managers

• People responsible for supervising the use of organizational resources to achieve goals.

What Do Managers Do?

• Three categorization schemes: Management Functions, Management Roles, Management Skills

Management Functions

• Planning: Defining goals, establishing strategy, developing subplans to coordinate activities; determining what needs to be done, how it will be done, and who is to do it
• Organizing: Determining the tasks, who performs them, how the tasks are grouped, who reports to whom, and where decisions are made.
• Leading: Directing and motivating involved parties, resolving conflicts, ensuring everyone works towards the goals.
• Controlling: Monitoring activities, comparing to plans, correcting deviations, and accomplishing goals as planned.

Management Functions Continued

• Planning: Choosing appropriate organizational goals and courses of action to best achieve those goals.
• Organizing: Establishing task and authority relationships, enabling people to collaborate for organizational goals.
• Leading: Motivating, coordinating, and energizing individuals and groups to realize organizational goals.
• Controlling: Establishing accurate, measuring, and monitoring systems that evaluate how effectively organizational goals are met.

Is Management Universal?

• Management as a universal concept.

Universality of Management

• Applies across all sizes of organizations (small to large).
• Relevant to all organizational areas (manufacturing, marketing, HR, etc.).
• Applicable across all organization levels (bottom to top).
• Useful in all types of organizations(profit and non-profit).
• Relevant for all types of organizational efforts (individual to institutional).

Management Science or Art?

• Management is both a science and art. It has systematic knowledge and methods(science) along with interpersonal and creative skills (art) to be successful.

Managerial Levels

• Top managers (strategic level): Responsible for the organization's overall success.
• Middle managers (tactical level): Execute top management's plans and coordinate functions.
• First-line managers (operational level): Directing and controlling operational employees, responsible for production.

Levels of Management

• Refer to a line of demarcation between managerial positions in an organization.
• Determines chains of command; the degree of authority; and status within managerial positions.
• Three broad categories: Top level/administrative level/strategic level, Middle Level/Tactical/Execution level, Lower level/supervisory/operative/first line manager.

Top Level Management

• Ultimate source of authority within an organization.
• Creates goals and policies.
• Focuses on planning and coordinating functions.
• Considers the organization's environment (interacting with external forces).
• Responsible for organizational success/failure.

Middle Level Management

• Executes top management's plans according to policy and directives.
• Establishes sub-unit plans.
• Explains policies to lower levels within the organization.
• Motivates lower-level managers toward better performance.

Lower Level Management

• Works closely with personnel; largely focused on personal oversight and direction.
• Responsible for directing and controlling management functions.
• Directly responsible for the production of goods and services.

Types of Managers

• Functional managers: Focus on a single department with similar training and skills.
• General managers: Responsible for several departments and functions, managing the entire operations of the organization.

Management Roles

• Specific actions/behaviors of managers.
• Mintzberg identified 10 roles grouped around three categories: interpersonal, informational, and decision-making.

Managerial Skills

• Three main forms: Conceptual, Human, and Technical skills.

Conceptual Skills

• Mental ability to think, consider, and solve complex organizational problems.
• Ability to analyze and diagnose situations; understand cause and effect.
• Ability to conceptualize about abstract and complex situations in the organization.

Human Skills

• Ability to interact with people and gain influence/control of behavior in individuals and groups.
• Understanding, altering, leading, and controlling other individuals' behavior.

Technical Skills

• Job-specific skills required for particular work at a high level of expertise.
• Examples include statistical tools (SPSS, STATA) in research settings.

Managerial Skills vs. Levels of Management

• Different levels require varying levels of conceptual, human, and technical skills (Top managers-conceptual skills, middle managers-technical and human skills more evenly distributed).

Environment of Management

• External environment: uncontrollable forces (economy, politics, culture, technology) affecting the company.
• Internal environment: controllable forces (company management, employee skills, machinery, financial capital).

Test your knowledge on the General Overview of Management with our quiz based on Chapter 1. This chapter covers the key definitions, characteristics, significance, and roles of management. Enhance your understanding of managerial skills and the universality of management in organizations.