Principles Of Management BCOR 120 PDF

PRINCIPLES PRINCIPLES OF OF MANAGEMENT MANAGEMENT BCOR 120 1–1  Chapter Chapter 11 Role Role and and Functions Functions of of Managers Managers in in Organizations...

PRINCIPLES PRINCIPLES OF OF MANAGEMENT MANAGEMENT BCOR 120 1–1  Chapter Chapter 11 Role Role and and Functions Functions of of Managers Managers in in Organizations Organizations  DO YOU KNOW THEM ? Copyright © 2006 Thomson Business and Economics. All rights reserved. 1–3  What What is is an an Organization Organization ?? Organization- A group of people who work together in an organized way and use resources of various kinds in order to achieve a common goal or set of goals. Examples of organization are for profit organizations (firms), governments, non-government organizations (NGO), armed forces, non-profit organizations, etc. Firm’s goal is selling products or services and getting a profit. In nonprofit organizations, money and expenses are important concerns, but success is usually measured by how effectively services are delivered 1–4  Common Common Characteristics Characteristics of of Organizations Organizations Goals Structure People  B A Every organization has: Has a goal or a set of goals Has a structure that defines the roles and the responsibilities of each member. Is made up of people that have make decisions and activities. Chapter 1 ©Prentice Hall, 2001 5  How How Do Do We We Define Define Management? Management? Management is the process of achieving organizational goals through the effective and efficient utilization of resources. Managers are concerned not only with attaining goals (effectiveness) but also attaining them efficiently. Achieving goals effectively means making the right decisions and executing them successfully Achieving goals efficiently means using resources (people, money, raw materials…) wisely and cost-effectively. 1–6  How How Do Do We We Define Define Management? Management? INPUT OUTPUT Efficiency Effectiveness Goals Goal Resource Low High Usage Waste Attainment Attainmen t Chapter 1 ©Prentice Hall, 2001 7  How How Do Do We We Define Define Management? Management? Efficiency relates to inputs and what the manager does. Managers should make the most economic use of resources. Effectiveness relates to outputs of the job and what the manager actually achieves. Effectiveness is related to the achievement of some purpose or task and is measured in terms of the results that the manager is supposed to achieve. Effectiveness is more important than efficiency because one must be doing the right kind of work. Only then does it matter whether the work is done efficiently. 1–8  The The Manager’s Manager’s Resources Resources – Resource is a person, an information, a material, an equipment or money that can be used to create value 1–9  Management Management Levels Levels Management levels refers to the lines of separation between different managerial positions. In traditional organizations, there are 3 levels that vary in terms of duties, responsibilities and authority related to each level. The number of managers at each level is such that the hierarchy looks like a pyramid. 1–10  Management Management Levels Levels Top managers (or executives) are responsible of an organization as a whole. They make important decisions and set policies. Exp: CEO, chairman, president, vice president Middle managers report to top managers and are in charge of relatively large divisions. They translate the goals into specific details that lower- level managers can perform. Exp: Sales manager, branch manager, or department head First-line managers supervise the daily activities of small work units. Exp: group leader, unit leader, supervisor, or office manager. Operatives: have no responsibility for overseeing the work of others. Exp: Cashiers/Specialists/Technicians 1–11  Authority Supervise Others Top Manager s Middle Manager s First-Line Manager s Operatives (workforce) Responsibilities The The Levels Levels of of Management Management ©Prentice Hall, 2001  The The Levels Levels of of Management Management Copyright © 2006 Thomson Business and Economics. All rights reserved. 1–13  Managerial Managerial skills skills Not everyone can be a manager. Managers should have certain skills. Robert Katz – has identified three essential management skills: – Technical Skills – Conceptual Skills – Human Skills  Technical Technical Skills Skills The ability to use a special talent or expertise to perform particular tasks. For example, mechanics work with tools, and their supervisors should have the ability to teach them how to use these tools. Managers acquire these skills initially through formal education and then further develop them through training and job experience. 1–15  Conceptual Conceptual Skills Skills To analyze and interpret information and diagnose complex situations to predict how things fit together To have a critical thinking, to see the organization as a whole, to break down problems into smaller parts and see the hidden relations among the parts. Again, managers may acquire these skills through formal education and then further develop them by training and job experience.  Human Human Skills Skills The ability to work with and through people (in cooperation with others). The capacity to understand or empathize with the feelings of employees, predict, explain & control their behaviors, solve their problems and get accepted by them. Some managers are naturally born with great human skills, while others improve their skills through classes or experience. 1–17 Copyright © 2006 Thomson Business and Economics. All rights reserved. 1–18  Managerial Managerial skills skills and and levels levels of of management management Although all skills are essential for managers, but their importance vary at different management levels. The responsibility of the managers at the lower level includes employees’ supervision. Hence, they need to possess the technical skill of the workplace. Human skills are equally important for all management levels because of the highly interpersonal nature of managerial work. Conceptual skills are especially important for top-level managers, who must develop long-range plans for the future direction of their organization. 1–19  Management Functions Setting goals and deciding how best to achieve them Check results against How to arrange tasks, goals and take any people and other resources corrective actions. to accomplish the work Motivating, communicating, guiding, encouraging, solving problems… Copyright © 2006 Thomson Business and Economics. All rights reserved. 1–21  Management Management Functions Functions Planning is the process of determining in advance what should be accomplished, when, by whom, how, and at what cost. Regardless of whether it is planning long-term strategy or planning a two-hour meeting, the planning aspect of management is the major contributor to success. 1–22  Management Management Functions Functions – Organizing After a plan is in place, a manager needs to organize his team and resources according to the plan. Assigning work and granting authority are two important elements of organizing. 1–23  Management Management Functions Functions – Directing (or leading) It involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and solve problem with employees. 1–24  Management Management Functions Functions – Controlling Managers need to continuously check results against goals and take any corrective actions necessary to make sure that the plans remain on track. 1–25  Management Management Functions Functions Management functions are not steps in a linear process that starts always with planning and ends with controlling. Managers often perform them simultaneously. All managers plan, organize, direct, and control. But the amount of time they give to each function is not necessarily constant. It depends on manager’s position within the organization. 1–26  Management Management Functions Functions Managers at the lower level are more concerned with planning and organizing the operations at the departmental level. They implement the policies. They also play the supervisory role since they are in direct contact with the employees at the workplace. They are more concerned with control function as compared to planning and organizing functions of the management. They directly guide and control the day-to-day performance of the employees at the workplace. Exhibit 1–6 1–27  Ten Ten Roles Roles Managers Managers Play Play Management is a complex and challenging task so managers have to play various roles. A role is a set of expectations of how a manager will behave in a given situation Henry Mintzberg, a management thinker, identified 10 different roles that managers have to perform. He has classified these roles into 3 categories i.e. interpersonal roles, informational roles, and decisional roles. 1–28  Ten Ten Roles Roles Managers Managers Play Play Interpersonal: This role involves human interaction. Informational: This role involves the sharing and analyzing of information. Decisional: This role involves decision making. 1–29  The The interpersonal interpersonal roles roles Figurehead: The manager represents the company legally and socially in all matters of formality. He performs ceremonial or symbolic roles. Leader: includes communicating, training, motivating, and disciplining employees Liaison: The manger interacts with peers and people outside the organization.  The The informational informational roles roles Monitor: collecting information by scanning the media (periodicals, reports…) and by talking with experts to predict changes in customer’s tastes, competitors strategies, new regulations, etc. Disseminator: transmit information to organization members via memos, emails, reports, phone calls, etc. Spokesperson: transmit information to outsiders about the organization`s plans, policies, actions, and results via reports, speeches, press conferences...  The The decisional decisional roles roles Entrepreneur: The manager initiates change, new projects; identify new ideas Disturbance handler: take action when organization faces important, unexpected events Resource allocator: decide where, when and how people and projects receive certain resources, manage schedules and budgets and set priorities Negotiator: represent the organization when negotiating contracts or agreements with unions, customers, suppliers, etc.