Organization Management PDF

## Management - **Management** - is handling of people tactfully and the consolidation of their efforts and activities in the organization. - **Organization** - is a group of people who work together in an organized way for a shared purpose/common good. - **Planning** - involves mapping out of exa...

## Management - **Management** - is handling of people tactfully and the consolidation of their efforts and activities in the organization. - **Organization** - is a group of people who work together in an organized way for a shared purpose/common good. - **Planning** - involves mapping out of exactly how to realize a specific goal. - **Organizing** - determines what tasks have to be done, who needs to do the task and how the tasks are to be performed. - **Staffing** - involves thorough recruitment, selection, and hiring of potential personnel in the organization. - **Directing** - involves the supervision and motivation of manager towards his/her employees to be more productive and efficient. - **Controlling** - deals with monitoring the company's progress and ensuring that all other functions are operating efficiently. ## Management Theories - **Classical Theory** - is the oldest theory which gives emphasis on the economic rationality of people that through their efforts yield greatest monetary benefits or income. - **Neo-Classical Theory** - believes that the best way toward gaining maximum productivity from workers is through motivation, structure and supporting employers, workers intrinsic values in their job and positive social relationship. - **Modern Management Theories** - focuses on the interaction between organizations, workers, and the environment. The application of management knowledge is extended to non-business areas like Education, government, health care and others. ## Definition of Management Management of people has already been observed and has long existed as there were already groups of people in every community even before. This setup gives different perspectives or ideas on how management is defined. Management is defined as handling of people tactfully and consolidating their efforts and activity in the organization. But according to **Theo Heimann** management can be defined in three ways: 1. **Management as a noun**, is used as singular collective noun (like group) which refers to a discrete nature of grouping of managers or people in charge of running a company or organization. 2. **Management as a process**, it refers to organizational process that includes strategic planning, setting objectives, managing resources, deploying labor force, financial assets and measuring results. 3. **Management as a discipline**, this refers to that branch of knowledge which is connected to study of principles & practices of basic administration. It specifies certain code of conduct to be followed by the manager and indicates various methods of managing enterprise. ## Functions of Management - **Planning** - This includes defining goals, establishing strategy and developing plans to coordinate activities. It involves mapping out exactly how to realize a specific goal. It also requires knowledge to create, develop and analyze opportunities which is known as strategic planning. There are two types of planning; - *Long range planning* - *Short range planning* - **Organizing** - This is also known as the backbone of management. It is the structure of the organization which helps determines what task to be done, who needs to do the task and how the task is to be performed and for whom to report after the task is achieved. - **Staffing** - This involves manning in the organization. This requires recruitment, thorough selection of applicants and hiring of potential employees for the organization. It is also responsible for training and development of the employee to be promoted, transferred, demoted or even be fired from the organization. - **Directing** - This involves the supervision and motivation of manager towards his/her employees to be more productive and efficient. When there is a high morale in the organization, it usually has a significant impact on the performance and productivity of the employees. Therefore, there is a need for the manager to motivate employees, supervise, and direct them to be more effective and efficient at work. Good communication is essential since this builds positive interpersonal relationship from and among employees. Thus, this can resolve conflicts that might arise in the organization. - **Controlling** - This deals with monitoring the company's progress and ensuring that all other functions are operating efficiently. Since this is the last stage, uncertain situation usually arises that might disrupt the operation of the business. Therefore, there is a need for the management to exercise corrective actions after thorough assessment and evaluation. ## Words to Help Understand Management - **Manager** - is a person who fulfils the fundamental managerial functions such as planning, organizing, staffing, directing and controlling. - **Figurehead** - is the head or chief of an organization or entity, a person with authority. - **Liaison** - is a person who helps organizations or groups to work together and provide information to each other. - **Entrepreneur** - is a person who is innovative, generates new ideas, solves problems and a risk-taker. - **Resource allocator** - is a person who allocates funds, personnel and other resources in the organization who are in great need. ## The Functions, Roles, and Skills of a Manager A manager does not just sit in one corner and let his employees perform the entire task. He does not just watch his employees fail but rather help them out. He puts on his many hats, at times a consultant, negotiator, liaison officer, an analyst and even an entrepreneur. Manager is described as a person who fulfills the fundamental managerial functions such as planning, organizing, manning, directing and controlling (Business Encyclopedia, 1995). ## Functions of Managers Functions of managers are viewed depending on what criterion is used. The most often referred criterion is based on the position of manager in the organization's structure, where he can greatly exercise his function. ### Levels of Management - **Top Management** (e.g. CEO, President) - Managers occupy the highest position in the organization. They are responsible in strategic planning and decision making. - **Middle Management** (e.g. Department Managers) - They are managers of departments, division heads and other functional departments. They are responsible in the operation and tactical planning, then pass them to the first-line management for implementation. - **First-Line Management** (e.g. Supervisory Managers) - This includes supervisors of production divisions (that is, foremen and brigadiers) responsible for the implementation of decisions and who have direct control of tasks realization's process. ### Management Criterion In another criterion, a manager is viewed in terms of his job description. When this criterion is taken into consideration, then we could mark managers as: - **Functional managers** - responsible for one kind of activity in a given business organization (e.g. production, marketing, selling or finance). - **Overall managers** - supervising complicated unit like enterprise, branch establishment or separate department and responsible for whole economic activity unit (ie. production, marketing, selling or finance) ## Mintzberg's Management Roles According to Henry Mintzberg (Sheldrake, 1998) there are ten (10) roles that a manager performs and they are grouped into three categories: | Category | Manager's Role | |---|---| | **Interpesonal** (In this category, the manager provides information and ideas to the employees) | **Figurehead.** The manager has the social, ceremonial and legal responsibilities. The manager is expected to be a source of inspiration. People look up to the manager as a person with authority. | **Interpesonal** | **Leader.** The manager provides leadership for the team, for the department or perhaps for the entire organization; and it's where he/she manages the performance and responsibilities of everyone in the group. | **Interpesonal** | **Liaison.** Managers must communicate with internal and external contacts. They need to be able to network effectively on behalf of the organization. | **Informational** (The managerial roles in this category involve processing information) | **Monitor.** The manager regularly seeks out information related to the organization and industry, looking for relevant changes in the environment. He/she also monitors the team, in terms of both their productivity, and their well-being. | **Informational** | **Disseminator.** This is where the manager communicates potentially useful information to his/her colleagues and team. | **Informational** | **Spokesperson.** Managers represent and speak for their organization. In this role, they are responsible for transmitting information about the organization and its goals to the people outside it. | **Decisional** (The managerial roles in this category involve using information) | **Entrepreneur.** Manager creates and control change within the organization. This means solving problems, generating new ideas, and implementing them. | **Decisional** | **Disturbance-Handler.** When an organization or team hits an unexpected roadblock, it is the manager who must take charge. They also need to help mediate disputes within it. | **Decisional** | **Negotiator.** They may be needed to take part in, and direct, important negotiations within their team, department, or organization. | **Decisional** | **Resource Allocator.** A manager also needs to determine where organizational resources are best applied. This involves allocating funding, as well as assigning staff and other organizational resources. ## Skills of a Manager A manager ideally has to be always equipped with the following skills: - **Management & Leadership Skills.** These skills refer to setting priorities, delegating, motivating and developing the people under him/her; coach them to become top performers and communicates objectives and goals. - **Communication Skills.** A skill across the point, it creates a compelling presentation to support company goals and get buy-in for ideas, inspires others to achieve better results and demonstrate emotional intelligence. - **Collaboration Skills.** Can value and celebrate differences, build rapport, form alliances and negotiate effectively. - **Critical Thinking Skills.** Skill needed to approach problem solving logically, research options, avoid biases and focuses on meaningful data to draw the right conclusions - even under pressure. - **Finance Skills.** Skill in weighing financial or budgetary implications of his/her decisions - including the ability to build a sound budget and formulate reasonable forecasts. - **Project Management Skills.** Skill to grasp the scope and objectives of projects, recognize the roles and responsibilities of others, use Project Management tools to stay on track and become an effective member of a cross-functional team.