Principles of Management

Management Overview

• Management involves completing tasks through others.
• Efficiency means minimizing effort, waste, and expense when completing work.
• Effectiveness is the accomplishment of tasks that enable an organization to fulfill its objectives.

Henri Fayol's Perspective

• Success of an enterprise depends more on the administrative ability of its leaders rather than their technical skills.
• This perspective was from the early 1900s.

Four Functions of Management

• Planning entails determining organizational goals along with the means to achieve them, leading to larger profits and faster growth.
• Organizing involves deciding where decisions are made, defining job roles and tasks, and determining who will work together.
• Leading involves inspiring and motivating workers to achieve organizational goals.
• Controlling involves monitoring progress toward achieving goals and taking corrective actions when necessary.

Types of Managers and Their Roles

• Top managers include CEOs, CIOs, COOs, vice presidents, CFOs, and corporate heads and they are responsible for change, commitment, culture, and the environment.
• Middle Managers consist of general managers, plant managers, regional managers, and divisional managers that are responsible for resources, objectives, coordination, subunit performance, and strategy implementation.
• First-line managers include office managers, shift supervisors, and department managers and are responsible for non-managerial worker supervision, teaching and training, scheduling, and facilitation.
• Team leaders include team contacts and group facilitators that are responsible for facilitation, external relationships, and internal relationships.

Kinds of Managers

• Top managers are executives responsible for the overall direction of the organization.
• Top managers create context for change and employee buy-in, and positive organizational culture through language and action.
• Middle managers are responsible for setting objectives consistent with top management's goals.
• They also plan and implement subunit strategies for achieving objectives, coordinating and linking groups, monitoring and managing subunits, and implementing top-level strategies.
• Plant, regional, and divisional managers are middle managers.
• First-line managers manage the performance of entry-level employees.
• First-line managers train/teach, encourage, monitor, and reward, as well as handling scheduling.
• Team leaders facilitate team activities toward goal accomplishment.
• They help team members plan and schedule work, learn problem-solving methods, and work effectively with each other.
• Team leaders also foster internal and external relationships.

Mintzberg's Managerial Roles

• Interpersonal roles include figurehead, leader, and liaison, taking up 2/3 - 4/5 of managers' time.
• Figurehead: public view and ceremonial duties
• Leader: motivate and encourage to accomplish organizational objectives
• Liaison: work with outside individuals
• Information roles consist of monitor, disseminator, and spokesperson, taking up 40% of time.
• Monitor: scan environment
• Disseminator: sharing information inside the company
• Spokesperson: sharing information outside the company
• Decisional roles entail entrepreneur, disturbance handler, resource allocator, and negotiator.
• Entrepreneur: adapts to change
• Disturbance handler: manages problems that need immediate attention
• Resource allocator: distributes resources
• Negotiator: schedules, resources, projects, raises, etc.

Seven Deadly Sins Great Bosses Avoid

• Pressuring employees to attend social events
• Pressuring employees to give to charity
• Not giving employees time to eat during mealtime hours
• Asking employees to do self-evaluations
• Asking employees to evaluate their coworkers
• Asking employees to do something that you don't want to do
• Asking employees to reveal personal information in the spirit of "team building."

Management Skills

• Technical skills involve specialized procedures, techniques, and knowledge required to get the job done and are essential for team leaders and low-level managers.
• Human skills involve the ability to work well with others and are essential at all levels of management.
• Conceptual skills involve the ability to see the organization as a whole, understand how the different parts affect each other, and recognize how the company fits into or is affected by its environment and these are essential for top managers.
• Motivation to manage is an assessment of how enthusiastic employees are about managing the work of others.

Common Mistakes Managers Make

• Being insensitive, abrasive, intimidating or bullying
• Being cold, aloof, arrogant
• betraying trust
• Being overly ambitious and playing politics
• Having specific performance problems with the business
• Being unable to delegate or build a team (overmanaging)
• Being unable to staff effectively
• Being unable to think strategically
• Being unable to adapt to boss with different style
• Being overdependent on advocate or mentor

Hill's Stages in the Transition to Management

• Initial expectations: being the boss, having formal authority, managing tasks, and viewing the job as not managing people.
• After six months: initial expectations were wrong, fast pace, heavy workload, and the job is to be a problem solver/troubleshooter for subordinates.
• After a year: no longer a doer, focusing on communication, listening, and positive reinforcement.
• Adapting to and controlling stress, and recognizing the job is people development.

Competitive Advantage Through People

• Developing workforces that are smarter, better trained, more motivated, and more committed than those of competitors.
• Produces substantial advantages in sales revenues, profits, stock market returns, and customer satisfaction.

Management Practices for Competitive Advantage

• Employment security, ultimate form of commitment a company can make to employees, allows innovation without fear of job loss.
• Selective hiring is when companies hire the best talent to due to employment security.
• Self-managed teams produce high productivity due to increased employee commitment and creativity.
• Decentralization allows employees closest to problems, production, and clients to make timely decisions.
• High wages contingent on organizational performance helps attract talented employees and retain existing ones.
• High wages indicates the organization values its employees and leads to employees who share in financial success more likely to see the long-run view of organization
• Training and skill development involves investing resources in training to ensure skill development.
• Reduction of status differences leads to employees concentrating on work related issues rather than biases and prejudices of management.
• Sharing information helps employees participate in the decision-making process.

Summary

• The functions of management include planning, organizing, controlling, and leading.
• Managers can be top, middle, first-line, and team leaders.
• Roles for managers are interpersonal, informational, and decisional.
• Technical, human, and conceptual skills are essential for managers.