LU2 Management Process.pptx

Learning Unit 2 The Management Process Objectives Discuss the importance of managers and management in the modern society; Explain the management process; Discuss the different levels and areas of management in an organisation; Explain the role distribution of managers; Analyse the...

Learning Unit 2 The Management Process Objectives Discuss the importance of managers and management in the modern society; Explain the management process; Discuss the different levels and areas of management in an organisation; Explain the role distribution of managers; Analyse the different skills needed by managers; Discuss the ways in which one can learn to manage successfully. Group work The objective of this class exercise is for students to experience the POLC process. Divide the class into groups of 6 or 7. In these groups: Design a paper jet that can fly at least 3 metres. Manufacture 10 paper jets in line with the ideal. The manufacturing process cannot take more than 20 minutes for all 10. Complete the exercise in 2 sessions. Video aspects of the process you deem important. Edit the video to a maximum of 5 minutes to reflect each of the POLC aspects. Upload the video onto VC Learn, Blogs LU2 Manufacturing paper jets. VC Learn Theme 1: The Modern Manager Managers and Management in the Modern World Managers and management Modern managers are expected to: Keep organisations competitive in the face of global competition, uncertain environments, and with reduced staff and resources Create a strong corporate culture that supports diversity, balances work and family concerns, and coping with conflicting demands from employees for power and responsibility Do more with less Shift their mindsets by integrating tried-and-tested skills with new approaches that emphasise the individual, flexibility, and employee commitment Google (https://www.youtube.com/watch?v=Z-pT0XDYvDM) VC Learn The Management Process Management and the management process Management can be defined as the process of working with and through others to achieve organisational objectives as efficiently and effectively as possible within a changing environment. Management and the management process Management is a process Working with and through others Achieving organisational goals and objectives Balancing effectiveness and efficiency Making the most of limited and scarce resources Coping with a changing environment Management is a process A process is a structured, interrelated set of activities designed to produce a specific output. Managers need certain inputs (resources such as such as human, financial, physical and information) to deliver certain outputs (performance) from the environment produces organisational outcomes (products, services, create jobs, profits, etc.) Managers engage in the following functions to achieve the goals: Planning Organising Leading Controlling The management functions Planning determines the organisation’s mission and goals. It also involves identifying ways of reaching the goals and finding resources needed for the task. Plans are mostly made by top management, for periods of 5 to 10 years. Tactical plans are made by functional managers (financial, human resources, research and development, marketing and operations) to support long-term plans. Operational plans are made by lower management to plan for short periods ahead. Organising involves allocating the organisation’s human and other resources to relevant departments or individuals. Tasks, roles and responsibilities have to be defined and polices and procedures established to achieve goals. It involves coordinating resources to achieve goals. Leading refers to directing human resources and motivating them to achieve established goals. Leading involves influence, power and communication Controlling involves constantly ensuring that the organisation is on the right track to achieve its goals. Controlling involves monitoring and taking corrective action if required. Inputs or resources Inputs found in all organisations are: People (human resources) Money (capital or financial resources) Raw materials (physical resources) Knowledge (information resources) Technology Information Components Outputs or performance Products Services Job creation Profits Efficiency Effectiveness Working with and through others Management is a social process which makes working with and through others an important management skill Achieving organisational goals and objectives An objective is a target to be strived for Objectives and goals also serve as measuring sticks for performance Balancing effectiveness and efficiency Effectiveness is achieved when the organisation formulates and pursues appropriate goals Efficiency is measured when the resources required to achieve an objective are weighed against what was actually accomplished Efficiency is achieved by using the fewest inputs to generate a maximum amount of output Making the most of limited and scarce resources In productive organisations, managers are custodians of limited and scarce resources and it is their job to see that the basic factors of production are used efficiently and effectively Coping with a changing environment Successful managers are those who anticipate and adjust to changing circumstances VC Learn Activity 2.1.1: Modern management VC Learn Theme 2: The Levels and Role Distribution of Managers Levels and Areas of Management Levels of management Top management This group controls the organisation and has final authority and responsibility for executing the management process. It includes people with titles such as the boards of directors, partners, managing directors, etc. Also known as strategic management, this group is responsible for the organisation as a whole, and for determining its mission, goals, and overall strategies. Middle management These managers are responsible for implementing the policies, plans and strategies set by top management. It includes functional heads like the marketing manager and human resource manager. Middle level managers have to develop medium and short-term plans for their functional areas, as well as monitoring environmental changes that are likely to affect these areas. Organisational restructuring (delayering, downsizing, and decentralisation) and the effective use of information technology have made numbers of middle managers obsolete. Levels of management Lower/first-line management These managers consist of first-line managers, such as supervisors, section heads and/or foreman and are responsible for subsections. Lower or first-line managers are responsible for the short-term planning and implementing middle management plans. Their primary concern is to apply policies, procedures and rules to achieve a high level of productivity, to provide technical assistance, to motivate staff and accomplish day-to- day goals. (37/2.2) Areas of management The marketing function entails the marketing of products and services through activities such as formulating a marketing strategy, segmenting the market, determining the target market and appropriately positioning the organisation in relation to its competitors. The financial function includes the acquisition, utilisation and control of the money an organisation needs to function. The operations function also called the operations function includes all the activities involved in the production of goods and services. The procurement function entails the purchase of raw materials and components, dealing with sellers and controlling inventory. The research and development function is responsible for developing new products and improving old ones. The human resource function entails the appointment, development and maintenance of the human resources of the organisation. The public relations function is concerned with creating a favourable corporate image. VC Learn Role Distribution of Managers The role distribution of managers The interpersonal role consists of the following activities: As figurehead a manager must perform roles that are ceremonial and symbolic in nature (attending official functions, etc). As leader the manager has to appoint new personnel, train and promote them, as well as motivate or dismiss them. In the liaison role the manager must build and maintain good relations inside and outside the organisation. The information role enables a manager to obtain information from colleagues, subordinates, department heads, and other external people which will enable him/her to take decisions. This role involves monitoring or gathering information on trends, and passing relevant data on. The decision-making role consists of the following: The manager acting as an entrepreneur, using information to introduce new products or to change the organisation’s structure It involves solving problems It involves allocating resources (40/2.3) VC Learn Activity 2.2.1: Managerial levels and roles VC Learn Theme 3: Skills for Effective Management Management Skills Managerial skills Technical skills consists of 3 branches: Technical skills refer to the ability to use the knowledge or techniques of a specific discipline to attain goals. Clarification of goals and objectives along with identifying activities to meet targets Problem solving to resolve issues with day-to-day work and to build team collaboration Imagination and creativity to originate ideas to improve productivity Managerial skills Teambuilding consists of 3 branches: Listening for insights Directing and coaching Directing is the ability to work through and with team members Coaching aims at improving performance of less experienced team members Solving problems as teams Managerial skills Drive consists of the branches: Setting standards of performance Control of details to oversee performance meets goals Demonstrate a willingness and ability to work with team Exerting pressure to urge others to perform, without dominating (42/2.4) VC Learn Activity 2.3.1: Managerial skills Reference Smit, P., Cronjé, G. D. J., Brevis, T. & Vrba, M., 2014. Management Principles: A Contemporary Edition for Africa. 5th ed. Cape Town: Juta & Co.