TS1.1 - Introduction to Management.pdf

Introduction to Management Definition, Process of Management, Managers and Management, Challenges of Management, Managing Globalisation 2 Learning Outcomes 1. Define organisation and management. 2. Explain the importance of management. 3. Describe the management process or...

Introduction to Management Definition, Process of Management, Managers and Management, Challenges of Management, Managing Globalisation 2 Learning Outcomes 1. Define organisation and management. 2. Explain the importance of management. 3. Describe the management process or functions of P-O-L-C. 4. Describe a manager, the levels of management, and management skills. 5. Identify the types of managers, and describe their roles and the changing nature of their work. 6. Discuss the challenges of management. 3 Definition of Organisation An organisation is defined as a systematic arrangement of people brought together to accomplish some specific purpose. Characteristics of an organisation: A distinct goal and purpose Comprises people working together to accomplish certain objectives A systematic structure An aim to serve society 4 Definition of Management Classic definition: Mary Parker Follett, one of the earlier theorists of management, defined management as the art of getting things done through people. Broad definition: Management can be defined as the process of consolidating and managing resources effectively and efficiently in an effort to achieve the goals of the organisation. 5 Process of Management Managerial functions: general administrative duties that need to be carried out in virtually all productive organisations to achieve desired outcome. Planning, organising, leading and controlling functions Management skills: specific observable behaviours that effective managers exhibit. Decision making, staffing, communicating, and motivating management skills 6 The Process of Management 7 The Four Main Management Functions Planning: the process of defining goals, establishing strategies and developing action plans to coordinate activities towards accomplishing organisational goals. Organising: structural considerations such as the chain of command, division of labour, and assignment of responsibility helps ensure the efficient use of human resources. Leading: the process of directing and influencing all organisational members involved, motivating them and resolving conflicts towards achieving organisational goals. Controlling: the process of monitoring activities to ensure that they are accomplished as planned. 8 9 Organisational Performance Organisation: Social entity that is goal directed and deliberately structured. Effectiveness: a central element in the process of management that entails achieving a stated organisational objective. Efficiency: a central element in the process of management that balances the amount of resources used to achieve an objective against what was actually accomplished. 10 Managers and Management Role: Set expectations for a manager’s behaviour. Every role undertaken by a manager accomplishes the functions of planning, organising, leading, and controlling. 11 Levels of Management Top level management: responsible for the overall management of an organisation. Establish operating policies and guide the organisation’s interaction with its environment. Middle level management: direct the activities of lower level managers and sometimes those of operating employees. Implement organisation policies and balance organisational demands on managers with the capacities of their employer. Lower level management: responsible for the work of non- management employees. First-line managers do not supervise other managers and are also directly responsible for the production of goods or services. 12 13 Skills of Management Conceptual skills Ability to analyse and diagnose a situation to determine cause and effect. Human skills Ability to work effectively with one’s own work group as well as others in an organisation. Technical skills Ability to utilise job specific knowledge of tools, techniques and procedures which are specific to a particular field to perform a task. 14 Relationship between Levels and Skills of Management 15 Scope and Responsibilities of Managers General Manager Responsible for managing several different divisions or departments. Makes decisions across the different functions and ensures that staff rewards are tied to the performance of entire units. Functional Manager In-charge of one major function, for instance a department in an organisation. Can also be considered someone who manages a work unit that is grouped based on specific functions. 16 Functional vs. General Management 17 Mintzberg’s Managerial Roles Henry Mintzberg studied CEOs at work and created a scheme to define what managers do on the job. These are commonly referred to as Mintzberg’s managerial roles. Mintzberg has identified ten roles common to the work of all managers. These can be grouped into three primary headings: interpersonal, informational, and decisional. 18 Ten Managerial Roles 19 Interpersonal Roles Interpersonal roles are roles where managers are responsible for managing relationships with organisational members and the society. Three interpersonal roles: 1. Figurehead: a source of inspiration to inspire people within the organisation, performs ceremonial duties such as greeting visitors and signing legal documents. 2. Leader: direct and motivate subordinates; train, counsel, and communicate with subordinates. 3. Liaison: making contacts with people inside and outside of the organisation through e-mail, phone, meetings. 20 Informational Roles Informational roles involve a manager gathering and disseminating information to stakeholders of an organisation. Three informational roles: 4. Monitor: seek and receive information; scan Web, periodicals, reports; maintain personal contacts. 5. Disseminator: forward information to other organisation members; send memos and reports; make phone calls. 6. Spokesperson: responsible for transmitting information about the organisation and its goals to outsiders through speeches, reports, etc. 21 Decisional Roles Decisional roles see the manager processing information and reaching conclusions. Four decisional roles: 7. Entrepreneur: create and control change within the organisation by solving problems, generating new ideas, and initiating continuous improvement. 8. Disturbance Handler: take corrective action during conflicts or crises and resolve disputes among subordinates. 9. Resource Allocator: decide who gets resources; schedule, budget and set priorities. 10. Negotiator: represent team or department’s interest during negotiation of budgets, union contracts, purchases. 22 Nature of Organisations Small-and medium-sized companies: the spokesperson and the entrepreneurial roles are important as they establish networking opportunities. Big companies: the resource allocator and the liaison roles are more important as they have more resources to be distributed. Even so, all the roles are interrelated and must be executed to the best of the abilities of the managers. 23 Challenges of Management Managers leading organisations must continuously operate in a context that is very complex and dynamic, forcing them to continually adjust to these changing conditions. The four challenges of management are: 1. Internet and Information Technology 2. Globalisation 3. Diversity and Intellectual Capital 4. Ethical Practice and Social Responsiveness 24 Internet and Information Technology Benefits of Internet and information technology include: Instant market feedback Increased sharing of information internally Closer links to suppliers and customers Internet also impacts businesses in a negative way: Online security issues Employees may misuse IT resources with personal use of the Internet 25 Globalisation Globalisation A process of interaction and incorporation among people, organisations and governments of different nations. Managers are facing new possibilities of creating relationships that will carry their organisations into the future. 26 Diversity and Intellectual Capital Diversity: heterogeneity of a population or workforce. Includes people of different backgrounds, nationalities or cultural frames of reference. Effective deployment of human resources towards cultivating intellectual capital. Intellectual capital: summation effort of an organisation’s knowledge, experience, relationships, processes, discoveries, innovations, market presence, and societal influence. 27 Ethical Practice and Sustainability Ethics concerns managerial actions that can be assessed as right or wrong with reference to moral principles. Corporate social responsibility (CSR) is about the organisation’s obligation to all stakeholders and not just shareholders. CSR is about tangible corporate practices while business ethics is more about the values driving business decisions. 28 Summary An organisation is defined as a systematic arrangement of people brought together to accomplish some specific purpose. Management is defined as the art of getting things done through people. Management is the process of managing and consolidating resources effectively and efficiently to achieve an organisation’s goals. The resources can be consolidated both effectively and efficiently by means of the management functions: planning, organising, leading, and controlling. 29 Review Questions 1. Briefly explain the four main management functions. 2. Explain the difference between effectiveness and efficiency. 3. Describe three categories of managerial roles. 4. Explain the relationship between managerial levels and skills of managers. 5. Discuss the challenges of management.