Introduction to Management PDF

Management  CHAPTER ONE INTRODUCTION TO MANAGEMENT  Introduction Management is regarded as the most important of all human activities. Everyone manages. We manage our life, careers, time, and relationships. We tend not to think of these activities as “managing” or of ourselve...

Management  CHAPTER ONE INTRODUCTION TO MANAGEMENT  Introduction Management is regarded as the most important of all human activities. Everyone manages. We manage our life, careers, time, and relationships. We tend not to think of these activities as “managing” or of ourselves as being “managers”. We can, simply, say that management is “a way of life”. However, when the concepts of managing or being managers are applied to organizations, the complexity increases.  Introduction The term management is very comprehensive. Its use is wide-spread and no organized effort can be successful without proper management. As a result, some form of management is found to exist in every type of human organization.  1. Organizations  Definition of Organizations: Organizations are an arrangement of people brought together to accomplish a specific motive.  1. Organizations  Organizations have three main characteristics: 1) Organization have a distinct purpose, which is typically expressed in terms of a set of goals. For example, Hyundai CEO, has said his company’s goal is to “focus on what creates the most value for shareholders by delivering high-quality”. 2) In organizations people make decisions and engage in work activities to achieve goals. The purpose or goal can only be achieved with people.  1. Organizations  Organizations have three main characteristics: 3) Organizations develop a systematic structure that defines and limits the behavior of its members. That structure consists of rules and regulations that guides people.  1. Organizations Types of Organizations: Organizations are grouped into three categories: public, business and non- governmental organizations (NGOs). 1- Public organizations: firms which are state-owned, non-profit seeking and are funded by state budget to achieve public goals such as Helwan university and the Ministry of Health. 2- Business organizations : These are profit seeking firms, privately owned and financed by owners (capital) such as CIB, QNB, Orange, and Vodafone. 3- Non- governmental organizations (NGOs): These are independent civil society firms which are , non-profit seeking, based on voluntary work and financed by donations such as community societies, charity organizations and sport clubs.  2. Managers and Non-managerial Employees  Non-managerial employees: Non-managerial employees are employees who have no responsibility and work directly on the job or task. Examples of non-managerial employees are team members, and associates.  Managers: Managers are people who supervise the activities of other people in the organization. Some have managers work duties not only related to supervising the activities of others. For example, regional sales managers for BMW service customer accounts in addition to supervising the activities of the other sales associates.  3. Management Titles (Levels) Managers have three main titles which are top, middle, and first-line.  Top managers Top managers are responsible for making decisions and determining the direction of the organization. They are those at the top of an organization which establish policies and philosophies that affect organizational members. Examples of top managers are vice presidents, presidents, chancellors, managing directors, chief executive officers, or chairperson of the board. \  3. Management Titles (Levels) Managers have three main titles which are top, middle, and first-line.  Middle managers Middle managers manage other managers and are typically responsible for translating the goals set by top managers into specific details. They are found between the lowest and top levels of the organization. They clarify goals so that lower-level managers understand them. Examples of middle managers may include project leader, district manager, division manager, or store manager.  3. Management Titles (Levels) Managers have three main titles which are top, middle, and first-line.  First-line managers First line managers are responsible for directing the day-to-day activities of non-managerial employees. Examples of first-line managers are supervisors, team leaders, coaches and shift managers. 3. Management Titles (Levels)  4. Definition of Management  Management is the art of getting things done by a group of people with effective utilization of available resources.  Management is the process of getting things done, effectively and efficiently through people. A process refers to a set of interrelated activities.  Efficiency and effectiveness have to do with the work being done and how it’s being done.  4. Definition of Management  Efficiency means doing a task correctly (doing things right). Because managers deal with scarce inputs—including resources such as people, money, and equipment—they’re concerned with the efficient use of those resources. Managers want to minimize resource usage and thus resource costs.  Effectiveness means “doing the right things” by doing those work tasks that help the organization reach its goals.  Whereas efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organizational goals. Efficiency and effectiveness are different, but in spite of this are interrelated.  4. Definition of Management Management is essential for an organized life. Good management is essential of successful organizations.  5. Functions of Management There are basically four primary functions of management. These are: -Planning -Organizing -Directing -Controlling  5.1. Planning  Planning includes defining goals, establishing strategy, and developing plans to coordinate activities. This ensures that work is kept in proper focus and helps members keep their attention on what is most important.  Planning is future-oriented and determines an organization’s direction.  5.2. Organizing  Managers are also responsible for arranging and structuring work to accomplish the organization’s goals. This function is called Organizing, this includes determining what tasks are to be done and by whom, how tasks are to be grouped, who reports to whom, and who will make decisions.  Organizing also includes a formal structure of authority and the direction and flow of such authority through which work subdivisions are defined, arranged and coordinated so that each part is related to each other so as to attain the objectives.  5.3. Directing  The directing function is concerned with leadership, communication and motivation so that the employees perform their activities in the most efficient manner possible, in order to achieve the desired goals.  The leadership element involves guiding the subordinates about procedures and methods. Part of a manager’s job is to direct and coordinate the work activities of those people. This is the leading function.  5.3. Directing  The communication must be open both ways so that the information can be passed on to the subordinates and the feedback received from them.  Motivation is very important since highly motivated people show excellent performance with less direction from superiors.  5.4. Controlling  Controlling involves monitoring, comparing, and correcting work performance. Discovering any significant deviations and correcting it means that managers get work back on track.  The function of control consists of those activities consist of establishing standards for work performance, measuring performance and comparing it to these set standards and taking corrective actions as and when needed, to correct any deviations.  7. Management Skills Management skills refer to the experience of managers by doing managerial tasks and assignments. Examples of managerial skills include, preparing reports, and motivating employees. There are four basic skills identified they are needed by all managers, conceptual, interpersonal skill, technical and political skills.  Conceptual skills are the skills managers use to analyze and diagnose complex situations. They help managers see how things fit together and facilitate making good decisions.  7. Management Skills There are four basic skills identified they are needed by all managers, conceptual, interpersonal skill, technical and political skills.  Interpersonal skills are those skills involved with working well with other people both individually and in groups. Because managers get things done with and through other people, they must have good interpersonal skills to communicate, motivate, and delegate.  7. Management Skills There are four basic skills identified they are needed by all managers, conceptual, interpersonal skill, technical and political skills.  Technical skills are the job-specific knowledge and techniques needed to perform work tasks. For top-level managers, these abilities tend to be related to knowledge of the industry and the organization’s processes. For middle- and lower-level managers, these abilities are related to the specialized knowledge required in the areas where they work for e.g finance, human resources, marketing, and production.  Political skills to build a power base and establish the right connections.  7. Management Skills A manager’s job is complex and multidimensional and requires a range of skills. Although some management theorists propose a long list of skills, the necessary skills for managing a department or an organization can be summarized in three categories: conceptual, human, and technical. Conceptual Top Skills Human Middle Skills First-line Technical Skills  6. Management Roles  Mintzberg made a categorization scheme for defining managers roles. Mintzberg concluded that managers perform 10 different but interrelated roles.  These roles are grouped around interpersonal relationships, the transfer of information, and decision making.  6. Management Roles  The informational roles involve collecting, receiving, and disseminating information. The three information roles include monitor, disseminator, and spokesperson. - Monitor: The manager seeks and receives information about those factors which affect his activities. These factors may be within the organization as well as outside it. - Disseminator: the manager transmits information to subordinates, peers, and superiors within the organization. - Spokesperson: The manager represents his organization while interacting with outsiders.  6. Management Roles  The interpersonal roles are ones that involve people (subordinates and persons outside the organization). There are three types of interpersonal roles of a manager in an organization; Figurehead role, Leader role and Liaison role.. - Figurehead: A manager plays a figurehead role when he performs activities such as attending ceremonial functions which have symbolic nature. - Leader: Managers perform leader roles when they perform activities such as hiring, training, motivating, and guiding subordinates. - Liaison: Managers act as a mediator between the organization and the outsider.  6. Management Roles  The decisional roles is making decisions or choices. The four decisional roles are entrepreneur, disturbance handler, resource allocator, and negotiator. - Entrepreneur: Manager as an entrepreneur role takes initiative and make changes or improvements in the activities of the Organization. - Disturbance handler: The manager has in charge and takes corrective action when organization faces unexpected crises. - Resource allocator: A manager as the resource allocator role must divide work and delegate authority among his subordinates. - Negotiator: The manager represents the organization in bargaining and negotiations with outsiders as well as insiders.  6. Manager Roles Category Role Activity Monitor Seek and receive information, scan periodicals and reports, maintain personal contacts. Informational Disseminator Forward information to other organization members; send memos and reports, make phone calls. Spokesperson Transmit information to outsiders through speeches, reports, memos. Figurehead Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents. Interpersonal Leader Direct and motivate subordinates; train, counsel, and communicate with subordinates. Liaison Maintain information links both inside and outside organization; use e-mail, phone calls, meetings. Entrepreneur Initiate improvement projects; identify new ideas, delegate idea responsibility to others. Decisional Disturbance handler Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises. Resource allocator Decide who gets resources; schedule, budget, set priorities. Negotiator Represent department during negotiation of union contracts, sales, purchases, budgets; represent departmental interests.  8. Universality of Management 1. Management Process is Universal: The fundamental functions of management like planning, organizing, staffing, leading and controlling are performed by every manager in all organization. 2. Management Knowledge is Universal. 3. Management Skills and Principles are Transferable: Management skills and principles are transferable from one person to another, from one organization to another, actually, from one country to another. 4. Management is Culture-Bound: It is argued that different countries have different cultures and varying levels of economic development. Culture consists of attitudes, beliefs and values of a society. Since management is people oriented so the application of management principles will be affected by these factors.