MANAGEMENT CONCEPTS-

UNIT 1 INTRODUCTION

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Management: Science or Art?

The Science of Management
Assumes that problems can be approached using rational, logical, objective, and systematic ways. Requires technical, diagnostic, and decision-making skills and techniques to solve problems.

The Art of Management

Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights. Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities.
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Who Are Managers?

Manager
Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.

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What is Management?
A set of activities
planning and decision making, organizing, leading, and controlling

directed at an organizations resources

human, financial, physical, and information

with the aim of achieving organizational goals in an efficient and effective manner.

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Basic Purpose of Management

Using resources wisely and in a cost-effective way

And

EFFICIENTLY

EFFECTIVELY
Making the right decisions and successfully implementing them

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Classifying Managers
First-line Managers
Are at the lowest level of management and manage the work of non-managerial employees.

Middle Managers
Manage the work of first-line managers.

Top Managers
Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.

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Managerial Levels

Exhibit 1.1
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Figure 1.1 Kinds of Managers by Level and Area

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Kinds of Managers by Level

Top Managers
The relatively small group of executives who manage the organizations overall goals, strategy, and operating policies.

Middle Managers
Largest group of managers in organizations
Implement

top managements policies and plans. Supervise and coordinate lower-level managers activities.

First-Line Managers
Managers who supervise and coordinate the activities of operating employees. Copyright 2005 Prentice Hall, Inc. All rights reserved. 19

Kinds of Managers by Area

Marketing Managers
Work in areas related to getting consumers and clients to buy the organizations products or services.

Financial Managers
Deal primarily with an organizations financial resources.

Operations Managers
Concerned with creating and managing the systems that create organizations products and services.

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Kinds of Managers by Area (contd)

Human Resource Managers
Involved in human resource processes
Planning,

recruiting and selection, training and development, designing compensation and benefit systems, formulating performance appraisal systems.

Administrative Managers
Serve as generalists in functional areas and are not associated with any particular management specialty.

Other Kinds of Managers

Assigned as specialists in positions directly related to the needs of the organization.
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What Do Managers Do?

Functional Approach
Planning
Defining

goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.

Organizing
Arranging

work to accomplish organizational goals.

Leading
Working

with and through people to accomplish goals. comparing, and correcting the work.

Controlling
Monitoring,

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Management as a set of roles Day-to-day management activities are routine, orderly, and rational. These include:
Interpersonal roles - communication with
superiors, peers, subordinates, and people from outside the organization.

Information Roles - obtaining, interpreting, and

giving out information.

Decisional Roles - choosing among competing

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alternatives.

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Skills and the Manager

Technical Skills

Interpersonal Skills
Conceptual Skills

Fundamental Management Skills

Diagnostic Skills Communication Skills Decision-Making Skills Time-Management Skills

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Fundamental Management Skills

Technical
Skills necessary to accomplish or understand the specific kind of work being done in an organization.

Interpersonal
The ability to communicate with, understand, and motivate both individuals and groups.

Conceptual
The managers ability to think in the abstract.

Diagnostic
The managers ability to visualize the most appropriate response to a situation.
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Fundamental Management Skills (contd)

Communication
The managers abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others.

Decision-Making
The managers ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities.

Time-Management
The managers ability to prioritize work, to work efficiently, and to delegate appropriately.
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What Do Managers Do? (contd)

Management Roles Approach
Interpersonal roles
Figurehead,

leader, liaison

Informational roles
Monitor,

disseminator, spokesperson
handler, resource allocator, negotiator

Decisional roles
Disturbance

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What Do Managers Do? (contd)

Skills Approach
Technical skills
Knowledge

and proficiency in a specific field

Human skills
The

ability to work well with other people

Conceptual skills
The

ability to think and conceptualize about abstract and complex situations concerning the organization

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Skills Needed at Different Management Levels

Exhibit 1.5
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Conceptual Skills
Using information to solve business problems Identifying of opportunities for innovation Recognizing problem areas and implementing solutions

Selecting critical information from masses of data

Understanding of business uses of technology

Understanding of organizations business model

Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site ( www.ama.org), October 30, 2002.

Exhibit 1.6a
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Communication Skills
Ability to transform ideas into words and actions Credibility among colleagues, peers, and subordinates Listening and asking questions

Presentation skills; spoken format

Presentation skills; written and/or graphic formats
Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site ( www.ama.org), October 30, 2002.

Exhibit 1.6b
121

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Effectiveness Skills
Contributing to corporate mission/departmental objectives Customer focus Multitasking: working at multiple tasks in parallel

Negotiating skills
Project management Reviewing operations and implementing improvements
Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site ( www.ama.org), October 30, 2002.

Exhibit 1.6c
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Effectiveness Skills (contd)

Setting and maintaining performance standards internally and externally Setting priorities for attention and activity Time management

Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site ( www.ama.org), October 30, 2002.

Exhibit 1.6c
123

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Interpersonal Skills
Coaching and mentoring skills Diversity skills: working with diverse people and cultures Networking within the organization

Networking outside the organization

Working in teams; cooperation and commitment

Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site ( www.ama.org), October 30, 2002.

Exhibit 1.6d
124

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What Is An Organization?
An Organization Defined
A deliberate arrangement of people to accomplish some specific purpose

Common Characteristics of Organizations

Have a distinct purpose (goal) Composed of people Have a deliberate structure

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Characteristics of Organizations

Exhibit 1.9
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The Changing Organization

Exhibit 1.10
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Why Study Management?

The Value of Studying Management
The universality of management
Good

management is needed in all organizations. either manage or are managed.

The reality of work

Employees

Rewards and challenges of being a manager

Management

offers challenging, exciting and creative opportunities for meaningful and fulfilling work. Successful managers receive significant monetary rewards for their efforts.

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Management Functions

Planning

Organizing & Staffing

Directing

Controlling

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Planning
The management function that assesses the management environment to set future objectives and map out activities necessary to achieve those objectives. To be effective, the objectives of individuals, teams, and management should be coordinated to support the firms mission.

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Organizing
The management function that determines how the firms human, financial, physical, informational, and technical resources are arranged and coordinated to perform tasks to achieve desired goals.

The deployment of resources to achieve strategic goals.

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Staffing - Selecting - Recruiting - Placing - Training - Compensating

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Directing
Communicating
Providing and receiving information / messages through various channels

Supervising
Overseeing the activities of members

Leading
Setting the path towards goals for the members to follow

Motivating
Encouraging the employees to willfully contribute more and more
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Controlling
The management function that measures performance, compares it to objectives, implements necessary changes, and monitors progress. Many of these issues involve feedback or identifying potential problems and taking corrective action.
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Figure 1.2 The Management Process

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