INTRODUCTON -PRINCIPLES OF MANAGEMENT

Managing in a Dynamic Environment

Learning Objectives

Define Managers And Management. Explain What Managers Do. Describe The Competencies Used In Managerial Work And Assess Your Current Competency Levels.

MANAGEMENT DEFINED

Management is the process of working with and through others to achieve organizational objectives in a changing environment. Central to this process is the effective and efficient use of limited resources.

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Key Aspects of the Management Process

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What Is An Organization?
A formal and coordinated group of people who function to achieve particular goals These goals cannot be achieved by individuals acting alone An organization has a structure

Characteristics of an Organization

An organization has a structure.

An organization consists of a group of people striving to reach goals that individuals acting alone could not achieve.

Management
Organization Two or more people who work together in a structured way to achieve a specific goal or set of goals.
Goals Purpose that an organization strives to achieve; organizations often have more than one goals, goals are fundamental elements of organization. The Role of Management To guide the organizations towards goal accomplishment

- People responsible for directing the efforts aimed at helping organizations achieve their goals. - A person who plans, organizes, directs and controls the allocation of human, material, financial, and information resources in pursuit of the organizations goals.

Management

Management refers to the tasks and activities involved in directing an organization or one of its units: planning, organizing, leading, and controlling.
The process of reaching organizational goals by working with and through people and other organizational resources.

Basic Managerial Functions

Organizing

Planning

Leading

Controlling

Management Process and Goal Attainment

Management and Organizational Resources

Identifiable Functions in the Management Process

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Planning involves tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.

Planning
Determining organizational goals and means to reach them Managers plan for three reasons
1. Establish an overall direction for the organizations future

2. Identify and commit resources to achieving goals

3. Decide which tasks must be done to reach those goals

Organizing means assigning the planned tasks to various individuals or groups within the organization and cresting a mechanism to put plans into action.

Organizing

Process of deciding where decisions will be made, who will perform what jobs and tasks, and who will report to whom in the company Includes creating departments and job descriptions

Leading (Influencing) means guiding the activities of the organization members in appropriate directions. Objective is to improve productivity.

Leading
Getting others to perform the necessary tasks by motivating them to achieve the organizations goals Crucial element in all functions

1. Gather information that measures recent performance 2. Compare present performance to pre-established standards 3. Determine modifications to meet pre-established standards

Controlling
Process by which a person, group, or organization consciously monitors performance and takes corrective action

Discussed in depth in Chapter 10

Basic Levels of Management

(adapted from Figure 1.3)

Top Managers Middle Managers

First-Line Managers
Nonmanagers

Levels of Management

First-line Managers: have direct responsibility for

producing goods or services Foreman, supervisors, clerical supervisors

Middle Managers:
Coordinate employee activities Determine which goods or services to provide Decide how to market goods or services to customers Assistant Manager, Manager (Section Head)

Top Managers: provide the overall direction of an

organization Chief Executive Officer, President, Vice President

First-line Managers
Directly responsible for production of goods or services

Employees who report to first-line managers do the organizations work

Spend little time with top managers in large organizations

Technical expertise is important

Rely on planning and administration, self-management, teamwork, and communication competencies to get work done

Middle Managers
Responsible for setting objectives that are consistent with top managements goals and translating them into specific goals and plans for first-line managers to implement Responsible for coordinating activities of first-line managers Establish target dates for products/services to be delivered Need to coordinate with others for resources Ability to develop others is important Rely on communication, teamwork, and planning and administration competencies to achieve goals

Top Managers
Responsible for providing the overall direction of an organization
Develop goals and strategies for entire organization

Spend most of their time planning and leading

Communicate with key stakeholdersstockholders, unions, governmental agencies, etc., company policies Use of multicultural and strategic action competencies to lead firm is crucial

Management Level and Skills

Introductory Concepts: What Are Managerial Competencies?

Competency a combination of knowledge, skills, behaviors, and attitudes that contribute to personal effectiveness

Managerial Competencies sets of knowledge, skill, behaviors, and attitudes that a person needs to be effective in a wide range of positions and various types of organizations

Six Core Managerial Competencies: What It Takes to Be a Great Manager

Communication Competency Planning and Administration Competency Teamwork Competency Strategic Action Competency Multicultural Competency Self-Management Competency

Communication Competency
Ability to effectively transfer and exchange information that leads to understanding between yourself and others Informal Communication
Used to build social networks and good interpersonal relations

Formal Communication Used to announce major events/decisions/ activities and keep individuals up to date Negotiation Used to settle disputes, obtain resources, and exercise influence

 Deciding what tasks need to be done, determining how they can be done, allocating resources to enable them to be done, and then monitoring progress to ensure that they are done
Information gathering, analysis, and problem solving from employees and customers Planning and organizing projects with agreed upon completion dates Time management Budgeting and financial management

 Accomplishing tasks through small groups of people who are collectively responsible and whose job requires coordination Designing teams properly involves people participate in setting goals having

Creating a supportive team environment gets people committed to the teams goals
Managing team dynamics involves settling conflicts, sharing team success, and assign tasks that use team members strengths

Strategic Action Competency

Understanding the overall mission and values of the organization and ensuring that employees actions match with them
Understanding how departments or divisions of the organization are interrelated Taking key strategic actions to position the firm for success, especially in relation to concern of stakeholders Leapfrogging competitors

Snapshot
Sony must sell off businesses that dont fit its core strategy of fusing gadgets with films, music, and game software. That means selling off its businesses in its Sony Financial Holdings, which are very profitable.

Howard Stringer, CEO, Sony

Multicultural Competency
Understanding, appreciating and responding to diverse political, cultural, and economic issues across and within nations Cultural knowledge and understanding of the events in at least a few other cultures Cultural openness and sensitivity to how others think, act, and feel Respectful of social etiquette variations Accepting of language differences

Self-Management Competency
Developing yourself and taking responsibility Integrity and ethical conduct Personal drive and resilience Balancing work and life issues Self-awareness and personal development activities

Self-Management Competency
Snapshot
My strengths and weaknesses havent changed a lot in 51 years. The important thing is to recognize the things you dont do well and build a team that reflects what you know the company needs.

Anne Mulcahy, CEO, Xerox

Learning Framework for Managing

Part I: Overview of Management

Part II: Managing the Environment Part III: Planning and Control Part IV: Organizing
Part V; Leading

Introductory Concepts: What Are Managerial Competencies?

Competency a combination of knowledge, skills, behaviors, and attitudes that contribute to personal effectiveness

Managerial Competencies sets of knowledge, skill, behaviors, and attitudes that a person needs to be effective in a wide range of positions and various types of organizations

Why are Managerial Competencies Important?

You need to use your strengths to do your best You need to know your weaknesses You need developmental experiences at work to become successful leaders and address your weakness You probably like to be challenged with new learning opportunities Organizations do not want to waste human resources Globalization deregulation, restructuring, and new competitors add to the complexity of running a business

A Model of Managerial Competencies

(adapted from Figure 1.1)
Communication Competency Teamwork Competency Planning and Administration Competency

Global Awareness Competency

Self-Management Competency

Strategic Action Competency

A Model of Managerial Competencies

(adapted from Figure 1.1)
Communication Competency Teamwork Competency Planning and Administration Competency

Managerial Effectiveness
Self-Management Competency

Global Awareness Competency

Strategic Action Competency

Function: A classification referring to a group of similar activities in an organization like marketing or operations. Functional Managers: A manager responsible for
just one organizational activity such as accounting, human resources, sales, finance, marketing, or production
Focus on technical areas of expertise Use communication, planning and administration, teamwork and selfmanagement competencies to get work done

(contd)

General Managers: responsible for the operations

of more complex unitsfor example, a company or division
Oversee work of functional managers Responsible for all the activities of the unit Need to acquire strategic and multicultural competencies to guide organization

Many Other types of managers

Summary of managerial skills

General Skills Specific Skills

General Skills

Conceptual skills Interpersonal skills/Human skills Technical skills Political skills

Specific skills

Controlling the organisations environment and its resources Organising and coordinating Handling information Providing for growth and development Motivating employees and handling conflicts Strategic problem solving

Management Competencies

Analytical skill Decision making skill Communicating skill Motivating skill Coordinating skill

Qualities of Managers

Ability to manage oneslelf Must be a successful leader Learn from every source Always be pleasant Moral values Hard working. Team spirit Time management etc.

Managerial Roles- Mintzberg

1. Interpersonal roles Figurehead-Performs symbolic duties of a legal or social nature Leader- Builds relationships with subordinates and communicates with, motivates and coaches them. Liaison officer- Maintains networks of contacts outside work unit that provide help and information

2. Informational Roles: Monitor- Seeks internal and external information about issues that can affect organisation. Disseminator- Transmits information internally that is obtained from either internal or external sources Spokes person- Transmits information about organisation to outsiders.

3. Decision Roles: Entrepreneur- Acts as initiator, designer and encourager of change and innovation. Disturbance Handler- Takes corrective action when organisation faces unexpected major difficulties.

Resource allocator- Distributes resources of all types including time, funding, equipments and human resources Negotiator- Represents the organisation in major negotiations affecting the managers areas of responsibility

Managers of the future

Embrace change Attend to external realities Promote a coaching style Drive out fear Create expertise Have vision Negotiate to solve problem

Value diversity Go beyond participative management Tap the power of teams Be obsessed with customer driven quality