Principles of Management: Introduction to Management

Principles of Management Chapter 1 Introduction to Management  Chapter contents Meaning of organization Types of people in organization Management titles Meaning of management Difference between efficiency and effectiveness Who are managers? POLC framework...

Principles of Management Chapter 1 Introduction to Management  Chapter contents Meaning of organization Types of people in organization Management titles Meaning of management Difference between efficiency and effectiveness Who are managers? POLC framework 14 principles of management Managerial roles Management skills Traditional vs. contemporary management  What is an organization? A deliberate collection of people brought together to accomplish some specific purpose. Three characteristics of organizations: 1. It has a distinct purpose, which is typically expressed as a goal or set of goals. 2. It has a structure within which people to achieve those goals. The structure defines and limits the behavior of its members. 3. It is a deliberate collection of people.  Types of people in organizations 1. Managers Individuals in an organization who direct and oversee the activities of others. Three types of managerial employees are: A. Top managers Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members. B. Middle managers Individuals who are typically responsible for translating goals set by top managers into specific details that lower-level managers will see get done. C. First-line managers Supervisors responsible for directing the day-to-day activities of non- managerial employees. 2. Non-managerial employees People who work directly on a job or task and have no responsibility for overseeing the work of others.  Title of managers-self reading Top managers typically have titles such as vice president, president, chancellor, managing director, chief operating officer (COO), chief executive officer (CEO), or chairperson of the board. Middle managers may have such titles as department or agency head, project leader, unit chief, district manager, division manager, or store manager. First-line managers are often called supervisors, shift managers, office managers, department managers, or unit coordinators.  What is management? Management is a process of getting things done in an efficient and effective manner, with and through other people. The process of management A set of ongoing and interrelated activities or functions that are performed by the managers. Process of management  Continued… Series of steps The process of getting activities completed efficiently and effectively with and through Making right other people. decision at the right time and Use resources in successfully a low cost and implementing produce high that decision quality product  Continued… The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources.  Efficiency & Effectiveness Efficiency Doing things right, or getting the most output from the least amount of inputs. Effectiveness Doing the right things, or completing work activities so that organizational goals are attained.  Continued… A task can be performed efficiently (using fewer resources), but if it doesn’t lead to the right outcome, it is not effective.  Who is a Manager? A manger is a person who is involved in the four main organizational functions of planning, organization, leading, and controlling of organizational resources that will lead towards achieving organizational goals in an efficient and effective manner. Henri Fayol’s POLC framework and 14 principles of management The fundamental notion of principles of management was developed by French management theorist Henri Fayol (1841–1925). These principles serve as a guideline for decision-making and management actions. He provided the (P-O-L-C) framework, which still remains the dominant management framework in the world.  POLC Framework PLANNING Defining Organization Vision & Mission Setting Goals & Objectives Strategizing Plan of Action to Achieve Goals ORGANIZING Formulate Organizational Structure Resource Allocation Job Design LEADING Leadership & Direction Motivation Coordination & Communication CONTROLLING Process & Standards Review & Evaluation Corrective Action  14 principles of management 1. Division of Work: it allows for job specialization. Specialization promotes efficiency, productivity, accuracy and speed. Work should be divided among individuals and groups. 2. Authority and Responsibility: Authority is the right to give orders. Responsibility involves being answerable. Responsibility of self and others’ performance. 3. Discipline: it refers to obedience in the form of good conduct and respectful interactions. 4. Unity of Command: Employees should have only one boss. 5. Unity of Direction: A single plan of action to guide the organization.  Continued… 6. Subordination of individual interests to the general interests of organization 7. Remuneration (monetary/non-monetary): An equitable uniform payment system that motivates and contribute to success. 8. Centralization: The degree to which authority rests at the top of the organization. Balance b/w centralization and de-centralization. 9. Scalar Chain: there should be a clear chain of command. 10. Order: it refers to three thigs: right person in the right place, employees in an organization must have the right resources at their disposal, and the work environment must be safe, clean and tidy. 11. Equity: The provision of justice and fair dealing (OJ). Often a core value. 12. Stability of Tenure of Personnel. Minimize employee turnover. 13. Initiative: encouraging new ideas by employees and introducing change by the management 14. Esprit de corps: it refers to team spirit/team work/group cohesion. Unity is strength, is the essence of this principle. Organization should be considered as a team and employees as its members.  Managerial Roles Managers engage in certain roles as they manage others. Managerial roles are specific behaviors associated with the task of management. Managers adopt these roles to accomplish the basic functions of management—planning and strategizing, organizing, controlling, and leading and developing employees. One of the earliest and most persistent descriptions of managerial roles comes from Henry Mintzberg. Continued…  Interpersonal Roles 1. Interpersonal Roles These roles involve interactions with people, both inside and outside the organization. They include: A. Figurehead: Acting as a symbolic leader of the organization or department, performing ceremonial duties such as attending formal events, signing documents, and representing the organization in public. B. Leader: Directing, motivating, and managing employees, making decisions, and setting goals for the team or organization. C. Liaison: Building and maintaining relationships with individuals and groups both within and outside the organization, acting as a link between different stakeholders.  Continued… 2. Informational Roles These roles revolve around processing and disseminating information. They include: A. Monitor: Gathering information from various sources, both internal and external, to understand the organization’s environment and stay informed about relevant developments. B. Disseminator: Distributing relevant information to employees and other stakeholders within the organization to ensure everyone is informed and aligned. C. Spokesperson: Representing the organization or department to outsiders, such as the media, government agencies, or the public, and communicating information on behalf of the organization.  Continued… 3. Decisional Roles These roles involve making decisions that affect the organization. They include: A. Entrepreneur: Initiating and managing change within the organization, seeking opportunities for innovation and improvement. B. Disturbance Handler: Addressing conflicts, crises, and unexpected problems that arise within the organization, and taking corrective action. C. Resource Allocator: Deciding where to allocate the organization's resources, such as time, money, and personnel, to achieve the organization's goals. D. Negotiator: Engaging in negotiations with other organizations, employees, or external stakeholders to reach agreements and resolve disputes. Each managerial role requires a different set of skills, including leadership, communication, problem-solving, and decision-making.  Continued… To survive in competitive markets, firms must be entrepreneurial. They must pioneer new products and processes and quickly adopt those pioneered by others. In their role as entrepreneurs, managers must make sure that their organizations innovate and change when necessary, developing or adopting new ideas and technologies and improving their own products and processes. They must make decisions that are consistent with such entrepreneurial behavior.  Management Skills Robert Katz identifies three types of skills that are essential for successful managers: Conceptual Human or interpersonal Technical  Conceptual Skills Conceptual skills refer to a manager’s knowledge or ability for more abstract thinking related to the organization. Conceptual skills are vital for top managers, less important for mid- level managers, and usually not required for first-level managers.  Human or Interpersonal Skills Human or interpersonal managerial skills present a manager’s knowledge and ability to work with people. Without people, there will not be a need for existence of management and managers. These skills will enable managers to become leaders and motivate employees for better accomplishments. Also, they will help them to make more effective use of human potential in the company.  Technical Skills Technical skills are the abilities and knowledge needed to perform specific tasks. Technical skills are not related only to machines, production tools or other equipment, but these also include skills that will be required to increase sales, design different types of products and services, market the products and services, etc. Technical skills are most important for the first-level managers. As we go through a hierarchy from the bottom to higher levels, the technical skills lose their importance. Skills Continued… Skills Required For Traditional Vs. Contemporary Management  Class exercise Identify some basic principles for contemporary management.