Management Theory and Practice PDF

Maryland International College Course Title: Management Theory and Practice 1  Course Overview Chapter One: Overview of Management Chapter Two: Evolution of Management Chapter Three: Planning Chapter Four: Organizing Chapter...

Maryland International College Course Title: Management Theory and Practice 1  Course Overview Chapter One: Overview of Management Chapter Two: Evolution of Management Chapter Three: Planning Chapter Four: Organizing Chapter Five: Staffing Chapter Six: Directing Chapter Seven: Controlling Management Theories 2 Chapter 1: General Overview of Management Definition of Management Nature and Characteristics of Management Significance of Management Levels of Management Managerial Roles Managerial Skills Universality of Management Management Theories 3 Definitions 1.Management is the process of coordinating all resources through the five major functions of planning, organizing, staffing, directing /leading and controlling to achieve organizational goals/desired objectives. - Henry L. Sisk 2. Management is the art of getting things done through and with the people in formally organized groups - Koontz H. Definitions Cont’d 3. Management is the process of getting things done, effectively and efficiently, through and with other people – Mary Parker Follett  Efficiency  Means doing thing right; refers to the relationship between inputs and outputs; seeks to minimize resource costs  Effectiveness  Means doing the right things; goal attainment Manager Manager – The person responsible for supervising the use of an organization’s resources to meet its goals Note! Everybody is the manager of his/her time, energy and talents. Organization Organization is a systematic arrangement of people brought together to accomplish some specific purpose Common Characteristics of Organizations  Have a distinct purpose (goal)  Composed of people  Have a deliberate structure Characteristics of management 1. Management is goal-oriented:  Management is not an end in itself, it is a means to achieve certain goals. The basic goal of management is to ensure efficiency and economy in the utilization of human, physical and financial resources. 2. Management is universal:  Management is an essential element of every organized activity irrespective of the size or type of activity Characteristics Cont’d 3. Management is an integrative Force – unifies human & other resources  As a unifying force, management creates a whole that is more than the sum of individual parts  It integrates human and other resources 4. Social Process Management is done by people, through people and for people. It is a social process because it is concerned with interpersonal relations. Characteristics Cont’d 5. Multidisciplinary Management has to deal with human behavior under dynamic conditions. Therefore, it depends upon wide knowledge derived from several disciplines like engineering, sociology, psychology, economics etc. 6. Management is intangible  Management is an unseen or invisible force It cannot be seen but its presence can be felt everywhere in the form of results. Characteristics Cont’d 7. Management is a continuous process Management is a dynamic and an on- going process. The cycle of management continues to operate so long as there is organized action for the achievement of group goals. Management process/Functions There are five functions of management/Managerial Functions 1. Planning 2. Organizing 3. Staffing 4. Directing 5. Controlling The functions of management provide a useful framework for organizing management knowledge. Planning 1. Planning – Process of identifying and selecting appropriate organizational goals and courses of action  Planning is an exercise of forethought  It is concerned with what? Who? How? When? Where? How much?  It is deciding in the present about the future objectives and the course of actions for their achievement. Management Theories 13 Planning Cont’d Planning involves: Determination of short range and long range objectives Development of strategies and courses of action to be hold for achievement of the objective Formulation of policies, procedures and rules for the implementation of strategies and plan Organizing  It involves:  determining what tasks to be done  who is to do them  how the tasks are to be grouped  who reports to whom, and  where decisions are to be made Staffing  refers to filling and keeping filled the positions in the organization structure  concerned with locating prospective employees to fill the jobs created by the organizing process Staffing Cont’d Staffing involves:  Determination of number and kind of employees needed  Recruitment of employees (creating potential employees from whom selection is to be made)  Selection of the most efficient employee suitable for job  Placement and induction  Training and development, etc. Directing/Leading It is aimed at getting the members of an organization move in the direction that will achieve its objectives.  Leading/leadership is the heart and soul of management.  It involves influencing others to engage in the work behavior necessary to reach organizational goals Controlling The process of: monitoring performance, comparing it with goals, and correcting any significant deviations  Managers….. The people responsible for supervising the use of an organization’s resources to meet its goals 1-20  WHAT DO MANAGERS DO? Three categorization schemes: Management Functions Management Roles Management Skills Management Theories 21 MANAGEMENT FUNCTIONS…. Management Theories 22 Management functions …?  IS MANAGEMENT UNIVERSAL ? Why or why not? Management Theories 24 UNIVERSALITY OF MANAGEMENT Management Theories 25 Management science or art? Management knowledge exhibits characteristics of both art and science, the two not mutually exclusive but supplementary.  mgt as a science contains a systematic body of knowledge in the form of general principles which enjoy universal applicability. Management science or art Cont’d  The art of management is personal creative power and skill in performance.  If science teaches one to know, art teaches one to do  Managers have to know and do things efficiently and effectively to be successful, so there is unique scientific and artistic combination in practice. Universality of Management  Management functions and principles have universal application in :  All levels of management with different emphasis  All type of organization be it business, non- business, governmental, private. It is useful from individual to institutional efforts  All organization areas - production, marketing, HR, etc rely on management.  All organizations varying in size - from small to large utilize management Managerial Levels Management Theories 29 Levels of management  Refers to a line of demarcation between various managerial positions in an organization  Determines:  a chain of command  the amount of authority and  status enjoyed by any managerial position(s) Levels of management Cont’d  The levels of management can be classified in three broad categories: 1. Top level/administrative level/ strategic level 2. Middle Level/Tactical/Execution level 3. Lower level/supervisory/operative/first line manager  Mangers at all these levels perform different functions Top level management  Top management is the ultimate source of authority and it manages goals and policies for an organization  It devotes more time on planning and coordinating functions  consider how the organization interacts with its environment  Ultimately responsible for the success or failure of an organization Middle level management  They execute the plans of the organization in accordance with the policies and directives of top level management  They make plans for sub-units of the organization  They interpret and explain policies from top level management to lower levels  They are also responsible for inspiring lower level managers towards better performance Lower Level Management  Refers to those executives whose work has to be largely with personal oversight and direction of operative employees  They are concerned with direction and controlling functions of management  They are directly responsible for the production of goods and services Types of Managers based on scope of responsibility Two types: 1.Functional Managers managers who are responsible for a department that performs a single functional task and has employees with similar training and skills 2. General Managers  managers who are responsible for several departments that perform different functions.  They are responsible for the entire operations of the organization without being specific  Management Roles Roles are specific actions or behaviors expected of a manager. Mintzberg identified 10 roles grouped around three major categories: 1) interpersonal relationships, 2) the transfer of information, 3) decision making  MANAGERIAL ROLES Interpersonal Roles are roles that involve interacting with people (subordinates and persons outside the organisation) and other duties that are ceremonial and symbolic- figurehead, leader, liaison Management Theories 37  Informational: Roles that involve receiving, collecting and disseminating information- monitor, disseminator, spokesperson Management Theories 38  Decisional: Roles that involve making choices- entrepreneur, disturbance handler, resource allocator, negotiator Management Theories 39  INTERPERSONAL Role Description Identifiable Activity Figurehead Manager serves as an official Greeting visitors; signing representative of the organization or legal documents unit Leader Manager guides and motivates staff and Staffing, training acts as a positive influence in the workplace Liaison Manager interacts with peers and with Acknowledging mail/email; people outside the organization to gain serving on boards; information performing activities that involve outsiders  INFORMATIONAL Role Description Identifiable Activity Monitor Manager receives and collects Reading magazines and information reports; maintaining personal contacts Disseminator Manager distributes information Holding meetings; making within the organization phone calls to relay information; email/memos Spokesperson Manager distributes information Holding board meetings; outside the organization giving information to the media  DECISIONAL Role Description Identifiable Activity Entrepreneur Manager initiates change Organizing sessions to develop new programs; supervises design of projects Disturbance Manager decides how conflicts Steps in when an employee Handler between subordinates should be suddenly leaves or an important resolved customer is lost Resource Manager decides how the Scheduling; requesting Allocator organization will use its resources authorization; budgeting Negotiator Manager decides to negotiate Participating in union contract major contracts with other negotiations or in those with organizations or individuals suppliers Managerial Skills There are three main forms of Managerial Skills (Skills of Management) 1.Conceptual Skills 2.Human Skills 3.Technical skills Management Theories 43  Conceptual skills It is a mental ability to think, ponder, and solve problems (complex organizational problems) The ability to analyze and diagnose a situation and distinguish between cause and effect. The ability to think and conceptualize about abstract and complex situations concerning the organization 1-44 Human skills This is the ability to interact with people and prevail upon them The ability to understand, alter, lead, and control the behavior of other individuals and groups. Management Theories 45 Technical skills Job-specific skills required to perform a particular type of work or occupation at a high level. E.g A manager of a research company needs to have technical knowledge in the field of research such as statistical tools – SPSS, STATA etc…. Management Theories 46 Managerial Skills vs levels of management  Environment of Management Environment of Management: it explains the forces (both inside and outside of the company that affects (positively or negatively) the overall function of the company. There are two types of environment which are divided as internal and external environment. The internal environment is controllable but the external one is uncontrollable. External Environment: InternalEnvironment: Economy of the country: Management of the inflation, cost of living etc… company Politics: the countries Employees skill overall politics Machineries Social and Cultural forces: Financial capital the countries social and cultural issues Technology: the overall technological forces related to the company’s products Management Theories 48 END 49