Management Concept and Nature PDF

Management Concept and Nature SERVICE EXCELLENCE  Outline 1.4 Levels of 1.6 1.2 Features 1.3 Man...

Management Concept and Nature SERVICE EXCELLENCE  Outline 1.4 Levels of 1.6 1.2 Features 1.3 Management Management 1.1 Concept of and Objectives Management 1.5 Managerial and Process and Management of and Roles Managerial Management Management Administration Skills Function SERVICE EXCELLENCE  Learning Outcomes Explain what is meant by the term management. Differentiate between efficiency and effectiveness. Describe the four primary processes of By the end of this management. lesson, students will be able to: Classify the three levels of managers and identify the skills and primary responsibility of each group. SERVICE EXCELLENCE  1.1 Concepts of Management Every organization, at every level, needs management. An organization as small as a family or temple or a church or big organization such as school, colleges, Universities. SERVICE EXCELLENCE  Concepts of Management It is important for both In today’s global world the profit and non-profit challenges and opportunities organization. of business are enormous. Management helps in doing Businesses will be successful if and getting things done they are effectively managed. through others. SERVICE EXCELLENCE  Concepts of Management Therefore, management is the process that optimizes human, material and financial resource for effective achievement of an organizational goals. The process involves a series of actions (functions) taken by managers. SERVICE EXCELLENCE  Concepts of Management These include optimization which refers to getting maximum output (goods and service) out of minimum inputs (men, materials money machine etc.) and then goals which are the result or ends that managers and other stakeholders (shareholders, consumers, suppliers workers etc.) wish to achieve. SERVICE EXCELLENCE  Concepts of Management Definition of Terry and Franklin: “Management is a distinct process consisting Management of by some activities of planning, organizing, famous actuating and controlling, management performed to determine and accomplish stated objectives with the thinkers; use of human beings and other resources” SERVICE EXCELLENCE  Concepts of Management Daft (2006) on his Jones et al (2000) part define see management as management as F.W. Taylor: “the planning, “the attainment of Management is an organizing, leading organizational goals art of knowing and controlling of in an effective and what is to be done resources to efficient manner and seeing that it is achieve through planning, done in the best organizational goals organizing, leading, possible manner”. effectively and and controlling efficiently”. resources”. SERVICE EXCELLENCE  Concepts of Management In the early 20th century a French K.M. Bartol and D.C. S.P. Robbins and industrialist named Martin (1996) say Mary Coulter: Henri Fayol (1916), “Management is the “Management stated that process of achieving involves coordinating management had five organizational goals and overseeing the main functions: by engaging in the work activities of planning, organizing, four major functions others so that their commanding (that is, of planning, activities are leading), organizing, leading, completed efficiently coordinating, and and controlling. and effectively. controlling. SERVICE EXCELLENCE  Efficiency-key word Efficiency: Refers to getting the most output from the least amount of inputs. Efficiency also is the ability to make the best use of available resources in the process of achieving goals. Efficiency measures relationship between inputs and outputs or how successfully the inputs have been transformed into outputs (Low, 2000). Drucker has stated that efficiency means “doing things right”.... It is concerned with means SERVICE EXCELLENCE  Effectiveness-key word Effectiveness - completing activities so that organizational goals are attained Effectiveness: Drucker has also stated that effectiveness is “doing the right things “ It is concerned with ends SERVICE EXCELLENCE Efficiency and Effectiveness SERVICE EXCELLENCE 1.2 Features and Objectives of Management Management is characteristics by the following features Management is an activity: It is an activity of getting things done through others Management is a process: It is a process through the management functions Management is required for every type of organization Management is required at all organizational levels SERVICE EXCELLENCE  Features of Management Management is goal- Management is oriented: the success intangible: of organization is Management cannot measured by be seen or felt. Management is Management is a achievement of its The result of management dynamic discipline can be observed by goals and management comparing a well managed plays a significant role organization with a poorly in goal achievement. manage organization. SERVICE EXCELLENCE  Objectives of Management Management Help an organization achieve serves the its objective following Promotes effectiveness and objectives to efficiency help Develops the ability of organization managers meet their Human welfare goals. Social welfare SERVICE EXCELLENCE 1.3 Management and Administration There are One view states that, administration is three above management and management is a part of administration. theoretical The other view on the other hand view points states that management is above about administration and administration is part of management. Administration The third view states that and administration and management are Management. the same. SERVICE EXCELLENCE  Management and Administration Administration is above management; This view point has been advocated by American authors Oliver Sheldon, Spriegal, Theo Haimann, McFarland etc. According to them administration is a high level function of laying down policies, plans, objectives. SERVICE EXCELLENCE Management and Administration According to Oliver Sheldon for instance, “administration is concerned with the determination of corporate policy, the coordination of finance, production and distribution, and the ultimate control of executive”. SERVICE EXCELLENCE Management and Administration Management proper is concerned with execution of policy, operates within the limits set up by administration. Accordingly, administration determines the organization; management uses it. Administration defines the goal, management strives towards it. SERVICE EXCELLENCE Management and Administration Management is above administration; This view has been advocated by British authors like Breech, Kimball and Kimball, Richman, etc. According to Breech, “Management is a social process entailing responsibility for the effective and economical planning and regulation of the operation of an enterprise in fulfillment of given purpose or task” SERVICE EXCELLENCE Management and Administration Administration is part of management which is concerned with the installation and carrying out of the procedures by which the programme is laid down and communicated and the process of activities is regulated and check against plans. SERVICE EXCELLENCE  Management and Administration Thus according to this view point management is a high level function concerned with laying organizational plans and policies. Management and Administration are the same; Chester Bernard, George R, Terry and O’ Donnell etc, have advocated that management and administration are the same. According to them the difference is not in their meaning, but in their application. SERVICE EXCELLENCE Management and Administration Whiles managers at top Both administration and Administration and level perform more management are carried management are not administrative functions; out by managers at all performed by different those at lower level levels, that is, top, middle people. perform more managerial and lower levels. functions. SERVICE EXCELLENCE  1.4 Levels of Management Managers perform various managerial (planning, organizing, leading and controlling) and operative (production, personnel, finance and marketing) functions. Depending on the activities performed by managers, they can be classified on the basis of levels. The levels create a hierarchy or scalar chain in the organization structure. SERVICE EXCELLENCE 1.4.1 Levels of Management SERVICE EXCELLENCE Top Management Top level managers consist of managers who work at the highest level of the organizational hierarchy. The number of managers in this group is generally the least. It is responsible for the overall management of the organization. SERVICE EXCELLENCE  Top Management They have titles like Top managers have Chief executive officer (CEO), direct responsibility for president, the upper layer of executive vice president, and executive director. middle managers. SERVICE EXCELLENCE  Top Management Functions They lay down plans, policies and procedures..... They coordinate activities of various department They integrate the internal activities of the organization with the external environment They remain aware of the changes taking place in the external environment and change their internal environment. They carry out overall management of the organization by performing the managerial function of planning, organizing, leading, and controlling. They cater for the demand of various groups of stakeholders. SERVICE EXCELLENCE  Middle Level Middle Management They work beneath top managers within the managerial hierarchy. They have such titles as “manager”, director, chief, department head and division head. Middle managers typically have two or more management levels beneath them. Middle management consists of managers who are departmental heads. They serve as a link between top level and lower level managers. SERVICE EXCELLENCE  Middle Level They communicate policy decisions of top managers to lower level managers and guide lower level managers to implement them. They lay goals, plans and policies for their respective departments and ensures their successful accomplishment. Functions They spend major part of their time about 75% in managing company’s day-to-day operations. They direct the activities of lower and operating employees. They watch the activities of lower level managers and report them to top managers. SERVICE EXCELLENCE  Lower Level Managers Lower/First-line Management It consists of managers known as first- line managers or supervisors. They serve as a link between middle level managers and non-managerial employees. SERVICE EXCELLENCE  Lower Level Managers They supervise the activities of employees They coordinate the work of employees with the organization’s financial and non-financial resources Functions They train them to perform better in order to ensure smooth conduct of their respective business (es)… They evaluate performance of employees and send report to the higher level managers. They plan day-to-day operations SERVICE EXCELLENCE Managerial Processes-levels of Mgt It must be noted that the managerial process varies in emphasis within the managerial hierarchy. For example the Top management perform more planning function than Middle management, while middle management and Top management perform more organizing function than first line management. In contrast, leading is substantially more important for first line managers. However the management function that is common to all three hierarchical levels is controlling. SERVICE EXCELLENCE  1.5 Managerial Roles Managerial roles are specific behaviors associated with the task of management. One of the earliest and most enduring descriptions of managerial roles comes from Henry Mintzberg, who shadowed managers observing what they did during the day. Mintzberg developed a list of roles that he grouped into three categories: interpersonal roles, informational roles, and decisional roles (see Figure 1.2 ). Mintzberg emphasized that managing is an integrated activity, so these roles are rarely distinct. A role is an organized set of behaviours associated with a particular office or position, usually entail multiple roles. For example, roles for a salesperson position in a retail store might include information giver, stock handler and cashier. SERVICE EXCELLENCE  Figure 1.2: Managerial Roles Source: Based on H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973). SERVICE EXCELLENCE  Managerial Roles a) Interpersonal role: Interpersonal roles involve interacting with other people inside and outside the organization. Management jobs are people- intensive. Seldom do managers work alone for long periods without outside communication. This grows indirectly out of the authority of a manager’s position and involve developing and maintaining positive relationship with significant others. SERVICE EXCELLENCE  Managerial Roles b) Informational role: Informational roles are concerned with collecting, processing, and disseminating information. Managers collect information from various sources both inside and outside the organization, process that information, and distribute it to others who need it. Pertain to receiving and transmitting information so that managers serve as the nerve centre of the organization. Mintzberg found that managers spend 40 percent of their time in these tasks. Mintzberg divided the information roles of management into three types: monitor, disseminator, and spokesperson. SERVICE EXCELLENCE  Managerial Roles c) Decisional role: Management guru Peter Drucker once wrote that whatever managers do, they do through making decisions. The information collected through monitoring is directed toward discovering problems or opportunities, weighing options, making decisions, and ensuring that those decisions are put into action. Whereas interpersonal roles deal with people and informational roles deal with knowledge, decisional roles deal with action. They translate the people and information into processes with the purpose of moving the organization toward its strategic goals. Mintzberg identified four decision roles: entrepreneur , disturbance handler, resource allocator, and negotiator. SERVICE EXCELLENCE 1.6 Knowledge Base and Management Skills To fulfill the managerial roles, managers need to have the “right stuff.” They must possess several competencies - skills, values, and motivational preferences - that allow them to perform their jobs effectively and become proficient at planning and strategizing, organizing, controlling, developing, and leading. Managers must possess knowledge base and management skills to effectively set out the work agendas, work methods and managerial roles for carrying out the managerial functions. SERVICE EXCELLENCE  1.6.1 Knowledge Base Managers obtain this knowledge base required in their work from information about an industry and its technology. Company policies and practices Company goal and plans Company culture The personalities of key organization members Important supplier and customers SERVICE EXCELLENCE  1.6.2 Management Skills Skill is the ability to engage in a set of behaviour that are functionally related to one another and that lead to a desired performance level in a given area. Management skills involve; conceptual, human, and technical skills. SERVICE EXCELLENCE  Managerial Skills As we move down the hierarchy, more technical skills and less conceptual skill are required by mangers. The higher level managers need more conceptual skill than technical skills. Human skill is important at all levels of the organization because managers at all levels deal with work force and as such they must possess human skills to interact with workers. SERVICE EXCELLENCE SERVICE EXCELLENCE  Conceptual Skills Conceptual skills - the ability to see the “big picture,” understand how the various parts of the organization affect each other, and conceptualize how those parts can be organized to improve the performance of the overall organization, the foundation for strategizing and organizing. Managers at the top level must have skills that will enable them analyze the environmental opportunities, exploit them gainfully and correlate them with the organization’s internal system. Managers must be knowledgeable and imaginative to use this skill. SERVICE EXCELLENCE  Human Skills Managers need the abilities to communicate, persuade, manage conflict, motivate, coach, negotiate, and lead to improve employee well-being while achieving organizational objectives. Human skills include working with other department, not just with employees within a particular unit. In other words, successful managers use their human skills to reconcile the needs and goals of their own team members and people in other work units, as well as with customers, suppliers, and others outside the organization. Must be possessed by all managers at all levels. SERVICE EXCELLENCE  Technical skills It enables managers to perform specific activities involving methods, processes, or techniques. These skills include mastery of specific equipment (such as configuring intranet servers, use of zoom, google meet etc.) or correctly following procedures (such as conducting an accounting audit). Frontline managers need a high level of technical expertise, so they typically need this expertise to monitor employee performance, provide meaningful feedback, and help employees solve unusual problems. As an example, call center managers spend up to half of their time monitoring customer calls and giving employees feedback about how to improve their dialogue in the future. These managers would be ineffective in this mentoring role if they lacked sufficient knowledge and the correct procedures for handling customer calls. These skills require the ability to use tools, procedures, techniques and knowledge in one’s area of specialization. It requires a specialized knowledge to perform task that a manager is attempting to accomplish. SERVICE EXCELLENCE