Principles of Management BCOR 120 PDF

PRINCIPLES OF MANAGEMENT BCOR 120 Imène Chakroun 1–1 Course Overview Whether the student is a business, engineering, MIS or science major, everyone needs to understand the fund...

PRINCIPLES OF MANAGEMENT BCOR 120 Imène Chakroun 1–1 Course Overview Whether the student is a business, engineering, MIS or science major, everyone needs to understand the fundamentals of management. Management is a critical skill required of everyone. The objective of this course is introduce the student to the foundational skills of management while providing them with practical application skills. 1 Contact details Email: [email protected] Office hours: Wednesday from 11h30 am to 12h30 Chapter 1 Role and Functions of Managers in Organizations 2 DO YOU KNOW THEM ? 3  Introduction Managers are responsible for achieving organizational goals through the effective and efficient utilization of resources. (make decisions, allocate resources, and direct the activities of others to attain goals) Organization- A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals. (manufacturing and service firms are organizations, and so are schools, hospitals…) 1–7 What is an 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 4  Common Characteristics of Organizations Goals Structure People B A A goal or a set of goals A structure that defines the roles Made up of people that have and the responsibilities of each make decisions and activities member How Do We Define Management? 5  Management is the process of achieving organizational How Do We Define Management? 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. How Do We Define Management? INPUT OUTPUT Efficiency Effectiveness Goals Goal Attainment Resource Usage Low High Waste Attainment 6  Efficiency relates to inputs and what the How Do We Define Management? 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. The Manager’s Resources Resource is a person, an information, an asset, material or capital that can be used to create value 7  Management 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. 8  Top managers are responsible for the performance of an organization as a whole or for one of its significant parts. They make important decisions and set policies. Exp: CEO, CFO, 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 The Levels of Management 9  However: Not all organizations get work done using this traditional pyramidal structure. Some organizations are more loosely configured, with work being done by ever-changing teams of employees who move from one project to another as work demands arise. Managerial 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 10 Technical 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. Conceptual 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. 11  Human 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. Different Skills For Different Managers Although all three skills are essential for managers, their relative importance vary at different management levels. Technical skills are most important at lower levels of management since they have to supervise other workers Human skills are critical for all managers 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. 12 Different Skills For Different Levels of Management 13  Management Functions Management Functions Planning Planning is about deciding the future course of action -setting goals, objectives and deciding how best to achieve them. It includes defining an organization’s goals and establishing an overall strategy for achieving those goals. 14  Management 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. It includes determining what tasks are 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. Management Functions Directing (or leading) Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem solve with employees. 15  Management 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. Management Functions Management functions are not steps in a linear process. It does not always start with planning and ends with controlling. Instead, 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. The importance of managerial functions varies depending on a manager’s position within the organization. 16  Different Skills For Different Levels of Management Technical skills becomes less important as we move to higher level, but even top managers need some expertise in the organization’s specialty. Management 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. 17  The Relationship among the Management Functions Planning Management Functions Controlling Organizing Management Skills Leading 1–35 Ten Roles Managers 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 has to perform, classified into 3 role categories 18  Ten Roles Managers Play Interpersonal: This role involves human interaction. Informational: This role involves the sharing and analyzing of information. Decisional: This role involves decision making. The interpersonal roles Figurehead: representing the company legally and socially in all matters of formality. He performs ceremonial or symbolic roles. Leader: includes hiring, training, motivating, and disciplining employees Liaison: interacting with peers and people outside the organization. 19  The informational roles Monitor: collecting information by scanning the media (periodicals, reports…) and 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 decisional roles Entrepreneur: the manager initiate change, oversees new projects, and identifies new ideas Disturbance handler: take action when organization faces important, unexpected events Resource allocator: decide where, when and how people and projects receive resources, manage schedules and budgets and set priorities Negotiator: represent the organization when negotiating contracts or agreements with unions, customers, suppliers… 20