Introduction to HRM PDF

# Principles of Management Presented by: Dr. Rehab Al-Arabi ## Chapter 1: Managers and Managing ### 1) Defining What is Meant By Management - Management is concerned with handling people and activities within organizations through managers. - Organizations are defined as collections of people wh...

# Principles of Management Presented by: Dr. Rehab Al-Arabi ## Chapter 1: Managers and Managing ### 1) Defining What is Meant By Management - Management is concerned with handling people and activities within organizations through managers. - Organizations are defined as collections of people who work together and coordinate their actions to achieve a wide variety of goals or desired future outcomes. - Managers are individuals responsible for supervising and handling all the resources of the organization to achieve its goals efficiently and effectively. - Thus, management as a process can be defined as planning, organizing, leading, and controlling all the organizational resources to achieve organizational goals efficiently and effectively. ### 2) Manager's Goal: Achieving High Performance - **Organizational Resources:** Are all the organizational tangible as well as intangible assets. They include people like loyal customers, employees and their skills, know-how, experience; as well as machinery; raw materials; computers and information technology; patents; and financial capital. - **Organizational Goals:** Are the end results that the organization aims to achieve through the utilization of its resources. These end results include high performance, high sales, high market share, high profits, and customer satisfaction. - **Efficiency:** It refers to getting the most output from the least amount of inputs or resources. Efficiency is often referred to as “doing things right,” that is, not wasting resources. - **Effectiveness:** It refers to the appropriateness of the goals an organization is pursuing and the degree to which the organization achieves those goals. Briefly, it is the goal attainment. Effectiveness is often referred to as “doing the right things.” ### Efficiency Versus Effectiveness - Thus, efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organizational goals. - In successful organizations, high efficiency and high effectiveness typically go hand in hand. Poor management (which leads to poor performance) usually involves being inefficient and ineffective or being effective but inefficient. | Efficiency (Means) | Effectiveness (Ends) | |---|---| | Resource Usage | Goal Attainment | | Low Waste | High Attainment | **Management Strives for:** - Low Resource Waste (high efficiency) - High Goal Attainment (high effectiveness) ### Figure 1.1 Efficiency, Effectiveness, and Performance in an Organization High-performing organizations are efficient and effective. | Efficiency | Effectiveness | |---|---| | Low | High | Manager chooses the right goals to pursue, but does a poor job of using resources to achieve these goals. Result: A product that customers want, but that is too expensive for them to buy. | | Low | Low | Manager chooses wrong goals to pursue and makes poor use of resources. Result: A low-quality product that customers do not want. | | High | High | Manager chooses the right goals to pursue and makes good use of resources to achieve these goals. Result: A product that customers want at a quality and price they can afford. | | High | Low | Manager chooses inappropriate goals, but makes good use of resources to pursue these goals. Result: A high-quality product that customers do not want. | ### 4) Management Activities (Tasks) #### A) Functions Approach - Henri Fayol, a French businessman in the early part of the twentieth century, suggested that all managers perform five functions: planning, organizing, commanding, coordinating, and controlling. Today, we use four functions to describe a manager's work: planning, organizing, leading, and controlling. This is called “Functions Approach.” - **Planning:** A process that includes defining goals, establishing strategy, and developing plans to coordinate activities. - **Organizing:** Determining what tasks are to be done, who is to do them, which tasks are grouped together, who reports to whom, and where decisions are to be made. - **Leading:** A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts. - **Controlling:** Monitoring activities to ensure that they are being accomplished through comparing whether or not work is done as planned and correcting any significant deviations. #### B) Roles Approach - Although the functions approach is a popular way to describe what managers do, some have argued that it is preliminary and the importance of the manager in influencing people extends the term function. Thus, a new approach has evolved. - Mintzberg stated that managers perform 10 different, highly interrelated roles in organizations. - These 10 roles are primarily categorized into three categories: - Interpersonal - Informational - Decisional ### B-1) Interpersonal Roles - **Interpersonal roles:** They are roles performed by managers and are concerned mainly with dealing with people. These roles are ceremonial and symbolic in nature. - **Figurehead:** Symbolic head; required to perform several routine duties of a legal or social nature. - **Leader:** Responsible for hiring, training, motivating and directing employees. - **Liaison:** Maintains a network of outside contacts who provide favors and information. Thus, fostering relationships with others who provide valuable information. ### B-2) Informational Roles - **Informational roles:** They are roles performed by managers to collect information from outside organizations and institutions. These roles typically include: - **Monitor:** receives a wide variety of information; through scanning the news media and talking with other people to learn of changes in the public's tastes and what competitors may be planning. They serves as nerve center of internal and external information of the organization. - **Disseminator:** Transmits information received from outsiders or from other employees to members of the organization. - **Spokesperson:** Transmits information to outsiders on organization's plans, policies, actions, and results; serves as expert on organization's industry. ### B-3) Decisional Roles - **Decisional roles:** They are roles performed by managers with regard to making decisions inside the organization. - Mintzberg identified four roles that require making choices. - **Entrepreneur:** Searches organization and its environment for opportunities and initiates projects to bring about change. - **Disturbance handler:** Responsible for facing important, unexpected disturbances. - **Resource allocator:** Responsible for allocating physical, human, and monetary resources. - **Negotiator:** Responsible for representing the organization at major negotiations through discussing issues and bargaining with other units. ### 6) Skills of Managers - Management skills are the skills that **differentiate** between effective and ineffective managers. - Researchers have identified **three** types of skills: **Technical, human, and conceptual.** #### A) Technical Skills - They are skills concerned with the ability to apply specialized knowledge or expertise through formal education. #### B) Human Skills - They are skills concerned with the ability to understand, communicate with, motivate, and support other people, both individually and in groups through being good listener, and good at managing conflicts. #### C) Conceptual Skills - They are skills concerned with the mental ability to **analyze and diagnose** complex situations. ### Levels and Skills Of Managers | Levels | Conceptual | Human | Technical | |---|---|---|---| | Top Managers | High | High | High | | Middle Managers | High | High | Medium | | Lower-Level Managers | Medium | Medium | High | # Thank You The document provides a detailed overview of the concept of management, focusing on its core principles, key functions, and the different skills required to be an effective manager. It introduces the reader to the work of Henri Fayol and Mintzberg, their contributions to the study of management, and how their theories are implemented in practice. This knowledge is presented in a structured and informative manner, making it easy to understand and apply.