Management Lecture Notes PDF

Lecture News sharing and discussion News  Unit 1 Nature and Functions of Management: Skills and roles of a manager Characteristics of management Classical, neo-classical, and modern management thoughts Planning process and types of plans Artific...

Lecture News sharing and discussion News  Unit 1 Nature and Functions of Management: Skills and roles of a manager Characteristics of management Classical, neo-classical, and modern management thoughts Planning process and types of plans Artificial intelligence in decision making Directing and controlling  Learning Outcomes Students will be able to learn and understand  Skills and roles of a manager,  meaning and characteristics of management  Management Management is defined as the attainment of organizational goals in an effective and efficient manner by planning, organizing, leading and controlling organizational Process of Management  Who is a Manager? A manager achieves objectives through efficient and effective use of resources. Efficient-doing things right Effective-doing the right thing  STEVE JOBS Was he a leader or Paul Steven Manager? Jobs was an American inventor, designer and entrepreneur who was the co-founder, chief executive and chairman of Apple Computer. Class Exercise: Your turn to be a Manager Write down - Five characteristics which you think are necessary to be a good manager Organizations need both Managers and Leaders to succeed STEVE JOBS  Functions, Roles, and Skills Functions Roles Skills Planning Interperson Interpersonal Organizin al Technical g Information Decision- Leading al making Controllin Decisional g  Functions Planning Organizing Setting objectives Delegating and Determining how coordinating tasks they’ll be met Allocating resources Controlling Leading Establishing mechanisms to make Influencing employees to sure objectives are met achieve objectives Implementing mechanisms to make sure objectives are met  Exhibit 1–4 Ten Roles Managers Play Henry Mintzberg Managerial Roles  Interpersonal Figurehead –People look up to you as a person with authority, and as a figurehead. Leader –Manage the performance and responsibilities of everyone in the group. Liaison – Managers must communicate with internal and  Informational Monitor –Monitor your team, in terms of both their productivity, and their well-being. Disseminator – Communicate potentially useful information to your colleagues and your team. Spokesperson –Transmitting information about organization and  Decisional Entrepreneur – Change within the organization. This means solving problems, generating new ideas, and implementing them. Disturbance Handler – When an organization or team hits an unexpected roadblock, it's the manager who must take charge. You also need to help mediate disputes within it. Resource Allocator – You'll also need to determine where organizational resources are best applied. This involves allocating funding, as well as assigning staff and other organizational resources. Negotiator – You may be needed to take part in, and direct, important negotiations within your team, department, or organization. Skills  Skills Technical Skills “Business skills” Using methods and techniques to perform a task Keeping up with the latest technology in your job  Skills Interpersonal Skills “People skills” Your relationships with all individuals and groups Understanding Communicating Motivating Resolving conflict Working as a team member “It’s not what you know, it’s who you know.” Ethics  Skills Decision-making Skills Select alternatives to solve problems Take advantage of opportunities Be able to conceptualize, diagnose and analyze Use math skills Manage time  Gamification Quiz Q1. Fred the football coach must meet with the media and answer questions about team performance after every game. Which one of Mintzberg's managerial roles is Fred fulfilling? A.Speaker B.Spokesperson C.Disseminator D.Monitor  Gamification Quiz Q2. Rohan is the regional manager for a clothing retailer. He attends a ribbon cutting ceremony every time a new store opens for business. Which one of Mintzberg's managerial roles is he fulfilling? A.Figurehead B.Liaison C.Leader D.Communicator  Gamification Quiz Q3. Which one is not a recognized key skill of management? A. Conceptual skills B. Human skills C. Technical skills D. Writing skills  Gamification Quiz Q4. Conceptual skills are most important to what level of management? A.First line managers B.Middle managers C.Functional manager D.Top managers Exhibit 1–3 Management Skills and Functions What Resources does a Manager use? Human Resources-the people. Your most valuable resource! Financial Resources-the money, the budget Physical Resources-the buildings, the equipment, supplies Information-computers, reports  Differences among Managers The Three Levels of Management – Top managers CEO, president, or vice president – Middle managers Sales manager, branch manager, or department head – First-line managers Crew leader, supervisor, head nurse, or office manager – Non-management operative employees Workers in the organization who are supervised by first-line managers  Levels of Management Top Management Executives-CEO, CFO, COO, Presidents, Vice Presidents Manage the entire organization or major parts Develop the purpose, the goals, strategies, long-term plans Report to board of directors or other executives Supervise middle managers  Levels of Management Middle Managers Managers and department heads Implement top manager’s strategies by developing short-term plans Report to executives Supervise first-line managers  Levels of Management First-Line Managers Supervisors, crew leaders, office managers Implement middle manager’s plans Report to middle managers Supervise operative employees Management Skills 50 10 40 % % % 30% 45 25% % 50% 10% 40 % EXPERIENTIAL EXERCISE APPLY YOUR SKILLS Dr.MRIDULA MISHRA  SCORING and INTERPRETATION Subtract your scores for questions 6,10,14 and 17 from the number 6, and then the total points for the following sections: 1) 3,6,9,12,15 Conceptual skills total score _____ 2) 5,8,10,14,17 Human skills total score _________ 3) 7,11,13,16,18 Technical skills total score ____  Manager Leader Versus Leader – A able to influence a group toward the achievement of goals Manager A manager achieves objectives through efficient and effective use of resources. Efficient-doing things right Effective-doing the right thing  Applying the Model Next, get a piece of paper and write out all ten roles. Score yourself from 1-5 on each one, with 1 being "Very skilled" to 5 being "Not skilled at all." Once you've identified your weak areas, use the resources to start improving your abilities in each role.  ACTIVITY ARE YOU READY TO BE A MANAGER? Rate each of the following items based on what you think is the appropriate emphasis for that task to your success as a new manager of a department. Your task is to rate the top four priority items as “High- Priority” and the other four as “Low- Priority”. S. Statement High-Priority Low- No Priority. 1. Spend 50 percent or more of your time in the care and feeding of people. 2. Make sure that people understand you are in control of the department. 3. Use lunches to meet and network with peers in other departments. 4. Implement the changes that you believe will improve department performance. 5. Spend as much time as possible talking with and listening to subordinates. 6. Make sure that jobs out on time. 7. Reach out to your boss to discuss his or her expectations for you and your department. 8. Make sure that you set clear  INTERPRETATION Odd- numbered items are considered more important than the even- numbered items for long-term success as a manager. Class Exercise: Your turn to be a Manager Write down - Five characteristics which you think are necessary to be a good manager  Activity Are You A New Style OR An Old Style Manager? Read each statement carefully and rate each: Mostly True or Mostly False, to reflect the extent to which you would use that behavior. News Dr. MRIDULA  SCORING AND INTERPRETATION Add mostly true answers If it is more towards high range then “OLD STYLE MANAGER” or if score is towards low range then The Evolution of Management Thoughts The Technology-Driven Workplace 2000 2010 1990 The Learning Organization 1980 2010 Total Quality Management 2000 1970 Contingency Views 2000 1950 Systems Theory 2000 1940 Management Science Perspective 1990 1930 Humanistic Perspective 1990 1870 Classical 1940 1870 2022  Classification of Management CLASSICAL Approaches SCIENTIFIC BUREAUCRATIC ADMINISTRATIVE APPROACH MANAGEMENT MANAGEMENT MANAGEMENT (1880) (1920) (1940) BEHAVIORAL HUMAN STUDIES HUMAN BEHAVIOURAL APPROACH – Hawthorne RELATIONS - SCIENCE -Theory X Studies (1920) Maslow's Need and Theory Y (1950) Hierarchy (1930) QUANTITATIV MANAGEMENT OPERATIONS MANAGEMENT E APPROACH SCIENCE (1940) MANAGEMENT INFORMATION (1940) SYSTEM (1950-70) MODERN THE SYSTEMS CONTINGENCY EMERGING APPROACH THEORY (1950) THEORY(1960) APPROACHES CLASSICAL SCIENTIFIC BUREAUCRATI ADMINISTRATIVE APPROA CH MANAGEMENT C MANA MANAGEMENT Universal principles or models, workers only have F. W. Taylor GEMENT Max Henri Fayol rationalise the work process Workflow and labour Weber physical and economic increasing productivity and structuring an organization needs. management control into a hierarchy BEHAVIORAL HUMAN HUMAN BEHAVIOURAL APPROACH workers' STUDIES RELATIONS SCIENCE human need for work-related Elton Mayo Abraham Maslow Douglas McGregor satisfaction , learned and Hawthorne Studies - socio- Maslow's Need Hierarchy Theory X and Theory Y unlearned behaviour psychological aspects of human behavior QUANTITATIVE MANAGEMENT OPERATIONS MANAGEMENT APPROACH SCIENCE MANAGEMENT INFORMATION use of quantitative techniques, such as statistics, increasing decision effectiveness through the use managing the production and delivery through SYSTEM information models, and of mathematical & statistical forecasting & inventory MIS organizes past, present, computer simulations, to methods analysis and projected data from both improve decision making. internal and external sources and processes MODERN THE SYSTEMS CONTINGENCY EMERGING APPROACH believes THEORY THEORY APPROACHES there is no one system or world can be considered to J.W. Lorsch & P.R. Japanese Theory Z approach to manage an be a system in which various Lawrence, develop employees cross- organization. national economies are sub- problems are different under functional skills systems. different situations and require to be tackled as per the demand of the situation.  EXAMPLE OF CLASSICAL THEORY McDonalds has all of their operations down to a science Focus- Maximizing efficiency In the Forbes article Why McDonalds Wins in Any Economy, CEO Skinner explains that they thought about putting deli sandwiches on the menu but had to turn the idea away because there was no way to assemble the sandwiches in thirty to ninety seconds (like the rest of the items on the menu). Focus - Speed They are not like typical restaurants where you can small chat with your waiter or waitress; they want you in and out of the store or drive through as fast as humanly possible. They make sure that they keep up to these standards by constantly monitoring operations and analyzing how they can be more efficient, productive, and make and sell the most amount of burgers and sandwiches possible during the day. Bureaucratic Organizations Experiential Exercise  SCORING Give : One point for each answer of Mostly agree to the odd numbered questions. One point for each Mostly Disagree to the even numbered questions.  INTERPRETATION If score is 8-10 ----------- formal company would be compatible with your style and wishes. If score is 4-7 ------------------ you would receive modest satisfaction from working within a bureaucratic organization. If score is 1-3---------------you would likely be frustrated by working in a large bureaucracy.  ADMINISTRATIVE APPROACH This principles approach focused on the productivity of total organization. Contributor of this approach is Henry Fayol. Discussed 14 general principles of management. Caselet Caselet Caselet Caselet  Answer 1st paragraph- Division of Work 2nd paragraph- Discipline 3rd paragraph- Subordination of individual interests to general interests  Lecture News sharing and discussion  Unit 1 Nature and Functions of Management: skills and roles of a manager characteristics of management classical, neo-classical, and modern management thoughts planning process and types of plans artificial intelligence in decision making directing and controlling  Learning Outcomes Students will be able to learn and understand  Planning process and types of plans  Artificial intelligence in decision making  Directing and controlling  Planning Planning is concerned with ends (what is to be done) as well as with means (how it is to be done) Defining the organization’s objectives or goals Establishing an overall strategy for achieving those goals Developing a comprehensive hierarchy of  Types of Planning BREADTH TIME SPECIFICITY FREQUENCY OF USE FRAME OF USE Strategic Long term Directional Single use Operational Short term Specific Standing  Breadth of use Strategic Plans - Plans that are organization-wide, establish overall objectives, and position an organization in terms of its environment. Example - Grow sales from new products, Improve customer service, Pricing and Technological advantage. Operational Plans – Plans that specify the details of how an organization’s overall objectives are to be achieved. Example - day-to-day tasks  Time frame Short-term Plans – Plans that cover less than one year Long-term Plans – Plans that extend beyond five years  Directional versus Specific Plans Outcome- Process-focus focus Example - cut costs by 4% to Example - distribution of increase revenue by 6% in the land uses, infrastructure next 6 months requirements  Frequency of use Single-use Plans – A plan that is used to meet the needs of a unique situation Example - Single-day sales advertisement, campaign for a new product launch Standing Plan – A plan that is ongoing and provides guidance for repeatedly performed actions in an organization Example - Customer satisfaction policy, policies for hiring Planning Process Organizational Control  Learning Objectives Students will be able to understand concept of organizational control steps of the control process  Organizational Control Organizational Control – Managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals  Organizational Control Managers must monitor and evaluate: – Is the firm efficiently converting inputs into outputs? Are units of inputs and outputs measured accurately? – Is product quality improving? Is the firm’s quality competitive with other firms? – Are employees responsive to customers? Are customers satisfied with the services offered? – Are our managers innovative in outlook? Does the control system encourage risk- taking?  Control Systems Control Systems – Formal, target-setting, monitoring, evaluation and feedback systems that provide managers with information about whether the organization’s strategy and structure are working efficiently and effectively.  Control Systems A good control system should: – be flexible so managers can respond as needed. – provide accurate information about the organization. – provide information in a timely manner. Types of Control  Types of Control Feedforward Controls – Used to anticipate problems before they arise so that problems do not occur later during the conversion process – Giving stringent product specifications to suppliers in advance – IT can be used to keep in contact with suppliers and to monitor their progress  Types of Control Concurrent Controls – Give managers immediate feedback on how efficiently inputs are being transformed into outputs Allows managers to correct problems as they arise  Types of Control Feedback Controls – Used to provide information at the output stage about customers’ reactions to goods and services so that corrective action can be taken if necessary Control Process Steps  The Control Process 1. Establish standards of performance, goals, or targets against which performance is to be evaluated. – Managers at each organizational level need to set their own standards.  The Control Process 2. Measure actual performance – Managers can measure outputs resulting from worker behavior or they can measure the behavior themselves. The more non-routine the task, the harder it is to measure behavior or outputs  The Control Process 3. Compare actual performance against chosen standards of performance – Managers evaluate whether – and to what extent – performance deviates from the standards of performance chosen in step 1  The Control Process 4. Evaluate result and initiate corrective action if the standard is not being achieved – If managers decide that the level of performance is unacceptable, they must try to change the way work activities are performed to solve the problem CEO liked the letter and told Mr. Porte to visit plants personally. Mr. Porte denied the idea on grounds of being caught up in work at head office. Letter forwarded to al 20 plants and some of the plant purchasing head replied as: In the next six weeks, the head office received no new notices or purchase communication from any plant. Executives in other department who made frequent trips to plants informed that Plants were busy and usual routines of the year were being followed. What went wrong? Was this way of controlling right?  Types of Control Feed forward controls Concurrent controls Feedback controls Artificial Intelligence in Decision Making Decision-Making Strategies  Decision-Making Process Decision-making = the process of choosing a course of action to deal with a problem or opportunity Five steps: 1. Recognize and define problem or opportunity 2. Identify and analyze alternative courses of action 3. Choose preferred course of action 4. Implement 5. Evaluate results and follow up  Types of Decisions Programmed Decisions – Standard responses to routine problems, based on past experience Non-programmed Decisions – Create unique solutions for non- routine problems – Focus of most higher level managers’ decision-making  Decision Environments 1. Certain Environment 2. Uncertain Environment 3. Risk Environment  Decision Environments 1. Certain Environment – Enough info to predict expected results of decision-making alternatives – Common decision environment 2. Risk Environment – No complete certainty about outcomes but can identify probabilities of expected results associated with various actions – Uncommon decision-making environment Decision Environments 3. Uncertain environment – So little info that cannot even assign probabilities to predict outcomes – Most difficult decision environment – Requires creativity in problem-solving – E.g., organized anarchy: a division or firm in transition and characterized by rapid change and no legitimate hierarchy Organizations can use systematic process to assess degree of risk in various aspects of operations and environments, then develop contingency plans