Principles of Management

Manager and Management

• Organizations consist of people working together for common benefits.
• This part introduces management principles and the challenges of their real-world application.

Learning Outcomes

• Define organization and management fundamentals.
• Understand the importance of management functions.
• Comprehend the management process (P-O-L-C).
• Understand the description of a manager, the levels of management, and management skills.
• Identify manager roles and changing nature.
• Discuss management challenges and opportunities.

Importance of Management

• Management helps in achieving organizational goals and efficiently utilizes resources.
• It is essential for society's prosperity.
• Management addresses challenges and establishes equilibrium.

Definition of an Organization

• Organizations systematically arrange people to achieve a specific purpose.
• An organization's characteristics include, having a distinct goal, comprising people working together, a systematic structure, and aiming to serve society.

Definition of Management

• Management is defined as the art of getting things done through people, (Mary Parker Follett definition).
• Management consolidates/manages resources effectively and efficiently to achieve organizational goals.

The Management Process

• A Process is a way of doing things.
• Processes are on-going/continuous and systematic.
• Management emphasizes specific aptitudes or skills and certain interrelated functions to achieve certain desired goals.

Type of Managers

• A manager is responsible for carrying out the four main activities of management in relationships over a specific time.
• Managers play important roles at different levels.
• Managers carry out a wide range of organizational activities related to an organization's success.

Roles of Managers

• Interpersonal roles include figurehead, liaison, and leader.
• Informational roles involve monitoring, disseminating, and spokesperson activities.
• Decisional roles include entrepreneur, disturbance handler, resource allocator, and negotiator.

Levels of Management

• Top-level management is responsible for overall management.
  • These executives establish policies and guide the organization's interaction with the external environment.
• Middle-level management directs lower-level managers and sometimes operating employees.
  • They implement organizational policies whilst balancing demands.
• Lower-level management oversees non-management employees.
  • They are directly responsible for producing goods or services.

Responsibilities of Managers

• General managers oversee several different divisions or departments.
• They make decisions across functions and ensure staff rewards alignment with performance.
• Functional managers are in charge of one major function or department.
• Functional managers can considered people who manage a work unit grouped by functions.

Levels and Roles of Managers and the Nature of Organizations

• Manager roles vary based on company size and its business nature (profit or non-profit).
• Spokesperson and entrepreneurial roles are crucial for small/medium firms to establish opportunities.
• Resource allocators and liaisons matter more in big companies where resources are abundant.
• All roles are interrelated and must be executed to the best of the managers' abilities.

The New Manager or Leader Profile

• Today’s managers act as sponsors, team leaders, or consultants rather than "bosses".
• Managers no longer try to control actions.
• Individual employees are empowered to achieve goals independently.
• Employees are given the necessary resources to complete their jobs successfully.

Management Functions

• Planning is defining goals, setting strategies, and developing action plans.
• Organizing is determining what needs to be done, how, and by whom.
• Leading is directing/influencing organizational members, motivating them, and resolving conflicts.
• Controlling is monitoring activities to ensure they are accomplished as planned.

Skills of Management

• Technical skills are abilities in specific knowledge of tools and techniques in a field.
  • Project management, problem-solving, marketing, decision-making, and delegation are useful
• Human skills are abilities to work effectively in and with their own work group as well as others in an organization
  • Empathy, adaptability, communication, listening, and a growth mindset are important to have
• Conceptual skills are abilities to analyze and diagnose a situation to determine cause and effect
  • Creative and critical thinking, communication, managerial qualities, plus motivation and innovation

Challenges of Management

• Managers must view change as constant, which is inevitable.
• Leading organizations requires operating in complex, dynamic environments.
• Some prevalent trials include technology, globalization, diversity, intellectual capital, and ethics.

Managing Globalization

• Managers need competencies, for effective management in a global world.
• Possessing leadership allows managers to perform tasks.
• Analytical Thinking allows managers to interpret information.
• Behavioral flexibility enables managers to react objectively.
• Strong Communication helps managers to establish networks.
• Positive self concept grants managers the ability to evaluate themselves.
• Perserverance grants managers determination.
• Entrepreneurship makes manager innovative.
• Managers with the ability to deal with conflict helps.

Decision Making

• This chapter examines planning, organizational goals, successful planning, and management by objectives.
• It also defines decision-making and the organizational decision-making process.

Learning Outcomes

• Define planning and illustrate its use at all management levels.
• Describe special-purpose plans like contingencies and product development.
• Understand the costs, benefits, and nature of performance oriented organizational goals.
• Explain successful planning; understand management by objectives (MBO), decision-making, and organizational decision-making.

Introduction

• Planning is a common activity (sporting events, weddings, meetings, and social gatherings).

Introduction

• Planning is an important part of social gatherings.
• Organizing a seminar or conference is a form of planning.

Organizational Decision-making Process

Proper Implementation of plans is important. Multiple divisions impacts the process differently. Organization wide support is critical. Rationality can have its limits due to:

• Limited info
• Limited Information processing
• Time
• Intuition

Organizational Decision-Making Process (Cont.)

Making choices include

• Availability heuristic
• Representative heuristic
• Escalation of Commitment Individual differences include
• Directive style decisions
• Analytical style decisions
• Conceptual style decisions
• Behavior style decisions

Decision-Making Style

• Timely, good quality decision-making leads to the success of any organization.
• Rules on decision-making are fundamental aspects of a business internal design.
• It is important to make a decision based on external uncertainties of exposure to more competitors.

Decision-Making Style (Cont.)

• Characteristics include certainty, uncertaitny, risk, conflcit
• Psychological conflict on an individual
• Conflict between and individual & group
• Decision-making process includes indentifying/diagnoising the problems, generating alternative choices, evaluating alternatives, making the choice, implementing it, and evaluating it.

Decision-Making Style

An individual needs to decide what business to invest in:

• The individual needs to look at the kind of business, costs to set up, the location, competitors, financial support, and customer demand.
• After making an evaluation, decision must be made.
• At a later date, to evaluate the plan, re-evaluate the earlier details to check for success of project.

Decision-Making Style (Cont.)

• Methods Of Group Decision include:
• Authoritarianism Style
• Brainstorming
• Voting based Methods

Benefits of Decision Making

• Advantages include
• More Info
• Increases people's participation
• Provides More Alternatives
• Acceptance
• Quality
• Strength
• Opportunity

Benefits of Decision Making

• Group discussions allows combing of strengths of individuals.
• If group is affected decision A group decision always is enhanced for the collective understanding of action.
• Commits more individuals to action.

Benefits of Decision Making

• Group decision making can be more time consuming than the individual approach.
• Individuals may feel left out.
• Group action can create lack of shared responsibility.

Common Error in Decision-Making Process

• Common biases include
• Overconfidence
• Anchoring
• Hindsight
• Confirmation
• Availability

Organizing

• This chapter will explore organizing as one of the management functions.
• Exploring division of labor, carried out by managers at different levels will be explored.
• Analyzing what it takes for various divisions to meet the needs of organziational aims will be addressed.

Learning Outcomes

• Define the concept of organizing, and explain the importance of the organizing function.
• Describe the process of organizing.
• Describe the types of organizing structures and organizational relationships.
• Explain the types of organizational structures or designs.

Definition of Organizing

• The Process is determining what needs to be done, how it will be done and who is to do it.
• Organizing involves utilizing human, physical and financial resources.

The Importance of Organizing

• Helps identify important and relevant activities.
• Combines and groups similar activities into departments and units.
• Classifies powers and ranks at different management level.
• Ensured smooth organization in all interaction towards meeting goals.

Organizing Process

• Determine tasks and define jobs.
• Figure out the locus of decision making.
• Group organizational members.
• Coordinate Resources.
• Monitor with feedback.

Organizational Structure and Relationships

• Understanding organizing structure helps understand organizational relationships.
• Organized structures are important to meeting the needs of action and coordination to meet needs.

Formal and Informal Organizations

• Formal Organization has well-defined set of powers.
• Informal Organization: There are a network of personal and social relationships that occur on the side.

Types of Organizational Relationships

• Chart and chain of command
• Span of control
• Delegation
• Centralization and Decentralization

Chart and Chain of Command

• It documents how each members of a company reports to one another.
• Usually, the head is a CEO and the peole that report appear below.

Chart and Chain of Command (Cont.)

• The organizational chart allows managers to vertify: Levels of Management, Chains of command, Postiion and type of work, Departmentalization of work.

Span of Control

• The span of control is the amount of management oversight that managers can extert.
• Narrow span of control is when managers oversee a small number of works.
• The narrow span of control is more effective, but more costly.
• Wide Span of control is when a manager oversees a large group.
• Problems may occur in this area and problems. Errors in potential may also occur.

Span of Control (Cont.)

• The complexity of task assinged will determine what type of span of control can occur.
• Simple task may use a wide span of control and will take lots of supervision.

Delegation

• Delegation is the process of assigning duties to a subordinate that is necessary for meeting organizational needs. The authority is transferred but the resonsbility is not transferred in some cases.
• The manager may apply authority based on authority, staff authority or functional authority.

Centralization and Decentralization

• Centralization occurs when the top most most management needs to approve most decisons.
• Decentralization occurs when local managers can approve decisons.
• Decentralized decision means less burden for top management. This may help subordinates build skills as well.

Types of Organizational Structures

• Structural development of organizations tends to follow the growth of organization and business.
• As examples the companies will gradually change consisting of marketing etc.

Types of Departmentalization

• Functional: Grouping work activities according to functions (advertising, sales, etc.).
• Divisional: Divisions operate autonomously under corporate umbrella.
  • Product
  • May bank handles customer loans in one structure and commercial in another.
  • Customer
  • Sogo divides the marketing and sells into men, women, etc. Process
  • automobile making.

Types of Departmentalization (Cont.)

• Geographical Departmentalization is by service area
  • Coca cola may have structures of product division etc.
• Marrix Departmentalization are structured between two or more managers.
  • Disadvantage: cause contadicting policy.
  • Software companies such as, Product Management, Software Dev need support.

Human Resource Management

• HRM is a people-oriented process aimed at achieving a balance between organizational success and employee satisfaction.
• Plays a vital role in building workforce work environment.

Human Resource Management Process

• Recruitment and Selection
• Training and Development
• Performance Appraisal
• Compensation and Benefits
• Employee Relations

Human Resource Planning

• HR planning involves comparing current workforce with future goals, such as business expansion.
• A business must identify the number and types of employees that are needed to support goals.
• Ensuring that the organization recruits the best people needed.
• Ensures that the organization achieves profitable returns.

Surplus and Shortage of Labour Supply

• An inconsistency between supply and demand creates the surplus and shortage
• Solution involving managing surpluses might include early retiment programs etc
• Solution involving shortages requires recruiting and outsourcing temporary employees.

Recruitment & Selection

• Staffing begins with finding, attracting, and selecting qualified candidates, and it is a series of activities aimed at finding people in org.
• Hiring influences whether or not jobs will be given.
• The activity is related to HR and staff selection.

Recruitment Process

• Steps: Determining a need, Applicant selection, Decision-making, and Adaptation to the workplace

Recruitment Process (Cont.)

• Job description: Writing down the actual and intended requirements for performing on on an individual level with the business.
• Recruitment happens when advertisement appear online and other sources.

Recruitment Process (Cont.)

• Choose people based on compatibility by reviewing such skills as, communication or computer skills. etc.
• Job fit will then determine who is a orginization fit.
• Interviews can be scheduled.

Recruitment Process (Cont.)

• Once there is a choice, it must be implemented through employment or adaption for on boarding.

Recruitment

• The process focuses on attracting job candidates who are qualified to fill job vacancies.
• Internal Recruits are employed by the company that is advertising the job and may get an inside scoop.
• Jobs can be advertised in an external method.

Training and Development

• Activities are there to meet the goals of the workplace.
• Education is required for the best possible level.

Training and Development

• Employee training and development helps achieve business outcomes by implementing internal educational programs.
• Management training helps enhance management's knowledge and improve abilities.

Training and Development

• Employees through training, gain productivity.
• Leaders will be able to train better employees.
• Knowledge of employees will be improved.

Performance Appraisal

• It is a way to look at one's skills and their contributions to the workplace.
• Supervisors will set up feed back, identify strengths and weakness, set goals, and discuss training.

Performance Appraisal

• The supervisors perform the most common of assessments.
• Other types:
• Self Assessment

Compensation & Benefits

• Total compensation: the employee receives from an employer. Other types include:
• Direct compensation (financial)
• basic pay
• Overtime
• Commisions
• bonus
• profit sharing

Compensation & Benefits

• Under Indirect employee benefits, a company might look to supply; Scheme of sharing stock, Health benefits, Holiday benefits

Employee Relations

• Relations handles how workplace issues are resolved.
• Respect and fair treatment is key.
• Satisfactions that leads to high performance is what is strived for

Employee Relations

Key components:

• Communications such as, feedback is a good method as is, whistle blowing
• Disputes can resolved in employee conflict with or among management and employment
• Compliance improves company

Equal Employment Opportunity

• It prevents job discrimination in hiring, training, or promotions. It prevents discrimation against any member of a protected group of employees.
• Everyone desrves an equal chance of employment in the work place.

Explore the primary roles, benefits, and processes of management in organizations. Understand how effective management drives prosperity and addresses challenges. Learn about authority, decentralization, and organizational structures.