Adminstration, Leadership and Entrepreneurial Module 1-4.pdf

Management and Human Resource Learning Objectives: 1. Identify who are managers Administration, Leadership and 2. Discuss the levels of managemen...

Management and Human Resource Learning Objectives: 1. Identify who are managers Administration, Leadership and 2. Discuss the levels of management 3. Define what is management Entrepreneurship 4. Explain the characteristics of management Module 1 5. Discuss the functions of management 6. Enumerate the role of management in an organization Management and Human Resource 7. Explain the importance of studying management Brian B. Hortilano 8. Explain the role of HRM in organizations. 9. Define and discuss some of the major HRM activities. Who are Managers? is someone who plans, organizes, leads, Managers always get things done through other people. The third and controls the individuals, resources, aspect of management refers to what managers actually do. and work processes of an organization so that the organization can achieve its Managers are involved in planning, which is setting goals and objectives and goals. First, a manager is deciding on courses of action, developing rules and procedures, always “responsible for contribution.” developing plans, and forecasting. Also, managers are involved in organizing, which involves identifying jobs to be done, hiring people to do them, establishing departments, delegating or pushing authority down to subordinates, establishing a chain of command, and coordinating the work of subordinates.  Levels of Management Managers are involved in leading, which requires influencing other people to get the job done, maintaining morale, molding company culture, and managing conflicts and communication. Managers are involved in controlling, which involves setting standards, comparing actual performance with these standards, and then taking corrective action as required. Supervisors are considered to be front line A management team is managers and are responsible for the day-to-day A management team is the the collection of operations of the workforce and activities. collection of managers at managers at different levels of an different levels of an organization’s hierarchy that participate in These front-line or first-line managers supervise and organization’s hierarchy that management activities. coordinate the activities of operating employees. They participate in management often have job titles such as foreman, supervisor, and activities. office manager. The majority of their work is direct supervision of the work of their subordinates.  Middle managers are generally department managers who manage groups of subordinates that can include supervisory Executive manages generally are the leaders of an staff. organization and determine mission, vision, policy, and direction of the organization. Middle managers constitute the largest group of managers in most companies. These managers hold positions such as These executive managers are the small group of executives plant manager, operations manager, and division head. who control the organization by setting its goals, overall strategy, and operating policies. Job titles for top managers They primarily put the strategies designed by top managers include CEO, president, and vice president. into action, and they supervise lower-level managers. These managers make important decisions about which Middle managers take direction from their executive activities the organization should be involved in, such as managers and give directions to their subordinates, which is acquisitions, research and development, and expanding why they are considered to be “in the middle.” capacity. Interpersonal skills—the ability to communicate with, understand, and motivate individuals and groups. For managers to be effective and efficient, they must have specific skills that enhance their ability to plan, Conceptual skills—the ability to think in abstract terms organize, lead, and control the groups they manage. and the mental capacity to understand the “big picture” or The skills most needed for a manager to function at the overall workings of the organization and its optimal levels include: environment. Technical skills—the skills necessary to accomplish or understand tasks relevant to the organization. Diagnostic skills—the ability to recognize the symptoms of a problem and then determine an action plan to fix it.  Communication skills—the ability to effectively convey Management ideas and information to others and to effectively receive ideas and information from others. Management is the process Decision-making skills—the ability to correctly recognize of reaching organizational and define problems and opportunities and to then select goals by working with and an appropriate course of action for solving problems and through people and other capitalizing on opportunities. organizational resources. Time-management skills—the ability to prioritize work, to work efficiently, and to delegate appropriately. Management has the following 3 Management Functions characteristics: The 4 basic management functions that It is a process or series of continuing and make up the management process are related activities. described in the following sections: It involves and concentrates on reaching PLANNING organizational goals. ORGANIZING INFLUENCING It reaches these goals by working with and CONTROLLING. through people and other organizational resources. Planning Organizing  Planning involves choosing tasks that must be performed to attain organizational goals,  Organizing can be thought of as assigning the tasks developed in the outlining how the tasks must be performed, planning stages, to various individuals or groups within the and indicating when they should be organization. Organizing is to create a mechanism to put plans into performed. action.  People within the organization are given work assignments that  Planning activity focuses on attaining goals. contribute to the company’s goals. Tasks are organized so that the Managers outline exactly what organizations output of each individual contributes to the success of departments, should do to be successful. Planning is which, in turn, contributes to the success of divisions, which concerned with the success of the organization ultimately contributes to the success of the organization. in the short term as well as in the long term. Influencing Controlling  Influencing is also referred to as motivating, leading or directing. Controlling is the following roles played by the Influencing can be defined as guiding the activities of organization manager: members in he direction that helps the organization move towards Gather information that measures performance the fulfillment of the goals. Compare present performance to pre established performance norms.  The purpose of influencing is to increase productivity. Human- Determine the next action plan and oriented work situations usually generate higher levels of production modifications for meeting the desired over the long term than do task oriented work situations because performance parameters. people find the latter type distasteful. Controlling is an ongoing process. Management Roles: A manager’s role is very crucial in an organization. The success of organization depends upon manager’s ability in utilizing the resources for achieving the pre determined goals. Henry Mintzberg suggested three areas where a manger has to work. ›· Interpersonal Role ›· Informational Role ›· Decisional Role Interpersonal Role Three types of interpersonal roles. Interpersonal roles of a manger are concerned with his interacting with people both inside the organization and outsiders. Figurehead Leader Leader: Manager’s leader role Figure Head: In figure head role manager involves leading his subordinates and performs activities which are ceremonial and motivating them for willing symbolic nature. These include greeting the contributions. Manager is responsible visitors attending the social functions for activities of his subordinates. He involving employees, handing has to set example of hard work and out merit certificates and other awards to dedication so that subordinate follow outstanding employees. his directions with respect. Liaison Informational Role Informational role involves receiving collecting of Liaison Role: In liaison role information and distributing them as required. manager serves as a connecting link between his and outsiders or between his unit and other organizational units. Monitor Disseminator Monitor: In monitoring role manager Disseminator: In disseminator role collects the information which can manager distribute the information to his affect the organizational activities by subordinates and superiors by sending reading magazines and periodicals, circulars, holding meetings and making reports from the departments, talking phone calls. with others to learn changes in the public’s taste. Spokesperson Decisional Role Spokesperson: In spokesperson role the manager represents his organization or unit with interacting with outsiders. These may customer, financer, govt. suppliers or other agencies in society. It can be done by attending press conferences, meetings and by issuing It is very important role. Manager has to take decisions daily. notices. In decisional role he performs four roles. Entrepreneur Conflict Handler Entrepreneur: As an entrepreneur the As a Conflict Handler: As a manager assumes certain risks which can conflict handler he has to take affect the organization. He has to take decisions like expansion or care of certain disturbance in diversification, initiation of new projects, organization such as resolving development of older procedures etc. employee disputes and strikes etc. Resource Allocator Negotiator Resource Allocator: As a resource Negotiator: As negotiator manager allocator managers fulfill the has to take decisions regarding demand of various units in terms of prices with suppliers and customers. human physical and financial. He He also deals with trade unions and tries to utilize these resources in negotiates with them regarding such way that no department suffers for their inadequacy. working conditions and wage fixation. Why Study Management? 1. It helps in Achieving Group Goals It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals. 2. Optimum Utilization of Resources 3. Reduces Costs  Management utilizes all the physical & human resources productively. It gets maximum results through minimum input  This leads to efficacy in management. by proper planning and by using minimum input  Management provides maximum utilization of scarce resources by & getting maximum output. selecting its best possible alternate use in industry from out of various uses. Management uses physical, human and financial  It makes use of experts, professional and these services leads to use resources in such a manner which results in best of their skills, knowledge, and proper utilization and avoids wastage.  If employees and machines are producing its maximum there is no combination. under employment of any resources. This helps in cost reduction. 4. Establishes Sound Organization 5. Establishes Equilibrium  No overlapping of efforts (smooth and coordinated functions). It enables the organization to survive in changing  To establish sound organizational structure is one of the objective of environment. management which is in tune with objective of organization and for It keeps in touch with the changing environment. fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give With the change is external environment, the initial co- instructions to whom, who are superiors & who are subordinates. ordination of organization must be changed. So it adapts  Management fills up various positions with right persons, having organization to changing demand of market / changing right skills, training and qualification. All jobs should be cleared to needs of societies. everyone. It is responsible for growth and survival of organization. 6. Essentials for Prosperity of Society Human Resource Management Efficient management leads to better economical production Human resource management which helps in turn to increase the welfare of people. Good (HRM) is the process of employing management makes a difficult task easier by avoiding people, training them, compensating wastage of scarce resource. them, developing policies relating to It improves standard of living. It increases the profit which them, and developing strategies to is beneficial to business and society will get maximum retain them. As a field, HRM has output at minimum cost by creating employment undergone many changes over the last opportunities which generate income in hands. twenty years, giving it an even more important role in today’s Organization comes with new products and researches organizations. beneficial for society.  Staffing The Role of HRM Staffing involves the entire hiring process from posting a job to negotiating a salary package. Within the staffing function, there are four main steps: 1.Development of a staffing plan. This plan allows HRM to see how many people they should hire based on revenue expectations. 2.Development of policies to encourage multiculturalism at work. Multiculturalism in the workplace is becoming more and more important, as we have many more people from a variety of backgrounds in the workforce. 3.Recruitment. This involves finding people to fill the open positions. 4.Selection. In this stage, people will be interviewed and selected, and a proper compensation package will be negotiated. This step is followed by training, retention, and motivation. Development of Workplace Policies Compensation and Benefits Administration Every organization has policies to ensure fairness and continuity HRM professionals need to determine that compensation is fair, meets within the organization. One of the jobs of HRM is to develop the industry standards, and is high enough to entice people to work for the verbiage surrounding these policies. In the development of policies, organization. HRM, management, and executives are involved in the process. Compensation includes anything the employee receives for his or her Some examples of workplace policies might be the following: work. In addition, HRM professionals need to make sure the pay is Discipline process policy comparable to what other people performing similar jobs are being Vacation time policy paid. Dress code This involves setting up pay systems that take into consideration the Ethics policy number of years with the organization, years of experience, education, Internet usage policy and similar aspects. Retention Training and Development Once we have spent the time to hire new employees, we want to make sure Retention involves keeping and motivating employees to stay with the they not only are trained to do the job but also continue to grow and develop organization. Compensation is a major factor in employee retention, new skills in their job. This results in higher productivity for the but there are other factors as well. Ninety percent of employees leave a organization. Training is also a key component in employee motivation. company for the following reasons: Employees who feel they are developing their skills tend to be happier in 1.Issues around the job they are performing their jobs, which results in increased employee retention. 2.Challenges with their manager Examples of training programs might include the following: Job skills training, such as how to run a particular computer program 3.Poor fit with organizational culture Training on communication Team-building activities 4.Poor workplace environment Policy and legal training, such as sexual harassment training and ethics training Dealing with Laws Affecting Employment Worker Protection Human resource people must be aware of all the laws that affect the Safety is a major consideration in all organizations. Oftentimes new laws workplace. An HRM professional might work with some of these are created with the goal of setting federal or state standards to ensure worker safety. Unions and union contracts can also impact the requirements laws: for worker safety in a workplace. It is up to the human resource manager to Discrimination laws be aware of worker protection requirements and ensure the workplace is meeting both federal and union standards. Worker protection issues might Health-care requirements include the following: Compensation requirements such as the minimum wage Chemical hazards Worker safety laws Heating and ventilation requirements Labor laws Use of “no fragrance” zones Protection of private employee information  Awareness of External Factors Communication In addition to managing internal factors, the HR manager needs to consider the outside forces at play that may affect the organization. Outside forces, or external factors, are those things the Besides these major roles, good communication skills and excellent company has no direct control over; however, they may be things that could positively or management skills are key to successful human resource management negatively impact human resources. External factors might include the following: as well as general management. 1. Globalization and offshoring 2. Changes to employment law 3. Health-care costs 4. Employee expectations 5. Diversity of the workforce 6. Changing demographics of the workforce 7. A more highly educated workforce 8. Layoffs and downsizing 9. Technology used, such as HR databases 10.Increased use of social networking to distribute information to employees