Professional Documents
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Management?
1
LEARNING OUTCOMES
INTRODUCTION
Before we study in depth the aspects of management, we must first understand
what management is.
A nurse acts as the doctorÊs assistant. She does not have the same qualifications
and abilities as the doctor to carry out his job. So, she only assists him in
examining patients. In short, the doctor cannot assign his job to the nurse or any
other assistant. The same applies to other professionals.
2 TOPIC 1 WHAT IS MANAGEMENT?
SELF-CHECK 1.1
A person can be described as efficient but not effective or effective but not
efficient in managing a specific task. Both elements are not interdependent. LetÊs
say a factory worker finds a shortcut to doing a task with lower cost but by doing
so, he deviates from the ethical objectives of the organisation. For example, he
disposes of production waste by dumping it into the river. But one of the
organisationÊs ethical objectives is to preserve local harmony. So, the factory
worker, through his action, deviated from the objective although he was efficient.
In short, he was efficient but not effective.
efficiently without deviating from the objectives of the organisation. For example,
in delivering information, the employee sends a letter via post instead of e-mail.
Although it does not affect or clash with the organisationÊs objectives, the
employee has wasted a part of the resources allocated to him.
The manager is involved in various basic activities. These activities are usually
grouped in a concept categorised as management functions. These functions are
illustrated in Figure 1.1.
Management
Descriptions
Functions
Planning Defining objectives to be achieved for a given period and what needs
to be done to achieve the objectives. All management levels in an
organisation need to be involved in planning. Managers need to
develop objectives in line with the overall strategies of the
organisation.
Organising Determining what tasks are to be done; who will implement and co-
ordinate them; how the tasks are to be grouped; who reports to whom;
and where decisions are to be made. The manager needs to logically
and effectively organise the information, resources and workflow of
the organisation so that he is able to react positively towards changes
in the business environment.
Leading This involves motivating subordinates; selecting the most effective
communication channels; resolving conflicts; and directing as well as
guiding the actions of others with the intention of achieving all
objectives. The effective leader of today has to be visionary in
foreseeing the future, sharing the vision and encouraging employees
in realising the vision.
Controlling The measuring of performance in all pre-determined objectives,
determining reasons for deviation and taking appropriate actions,
where necessary. Controlling is an important function in the
management process as it provides ways to ensure that the
organisation moves towards achieving its objectives.
For example, the manager of a clothes manufacturing factory does not necessarily
have to know in detail the techniques of making clothes. However, he needs to
ensure that each resource put under his control, such as capital, factory and
manpower, functions properly and that the objectives outlined by the
organisation are met.
TOPIC 1 WHAT IS MANAGEMENT? ! 5
Nevertheless, all the functions highlighted above are merely for classification
purposes in management studies. In reality, management functions usually
overlap. Moreover, the functions in management are inter-dependent. For
example, a well-structured organisation will find it impossible to advance if there
is no thorough planning. The same applies to an organisation led by an efficient
director but with poor control systems. In summary, all functions are equally
important in an organisation.
ACTIVITY 1.1
In your opinion, what are the roles that need to be carried out in order
to become a successful manager?
As stated earlier, there are many ways to identify a manager. A manager can be
identified not only through the functions he performs but other ways as well. A
professor of management, Prof Henry Mintzberg, carried out a detailed analysis
of managers by walking around and observing what managers did at work. He
observed that managers not only planned, organised, led and controlled but also
played other important roles as detailed below (Lewis, P.S. et al; 2001).
(a) Role as a Figurehead
A manager must carry out ceremonial duties. For example, the vice-
chancellor of a university must be involved in the opening ceremony of
programmes conducted at the university. The head of a department is
responsible for entertaining his clients.
(b) Role as a Leader
A manager indirectly functions as a leader. Each manager must function as
a leader in motivating and encouraging his subordinates. The manager
steers members of his unit to continuously work effectively to achieve the
goals of the unit and organisation besides resolving problems and issues.
(c) Role as a Liaison Officer
A manager conveys relevant information gathered to individuals outside
his unit or to other relevant parties outside his organisation. The manager
will allocate time for interacting with people outside his organisation. Thus,
a manager acts as a channel for communications between his department
and those within as well as those outside his organisation.
6 TOPIC 1 WHAT IS MANAGEMENT?
For example, a human resource manager may liaise with the finance
manager to check on funds allocated for the recruitment of new employees
by the organisation before embarking on a recruitment drive.
(d) Role as a Spokesperson
The manager of an organisation usually acts as its spokesperson. For
example, a supervisor will usually ensure that the operations manager is
furnished with the latest information on the running of his production
plant. Similarly, the general manager of a factory will lobby local
authorities for a new tender.
(e) Role as a Negotiator
No organisation is without problems. A manager is compelled to find a
solution for each of its problems regardless of complexities. The manager
needs to spend a lot of time in discussions as he plays the role of a
negotiator. For example, a manager will negotiate with the trade union
chief to reach an amicable agreement on salaries.
(f) Role as an Initiator
Two management experts, Sumantra Ghoshal and Christopher Bartlett
(Dessler, G; 2001), highlighted the additional role of a manager as an
initiator of corporate actions and transformations. Moreover, an excellent
manager is one who cultivates three processes that steer his employees
towards achieving initiatives for change. These processes are as follows:
(i) Entrepreneurship Process
The manager will try to improve his unitÊs performance and when he
gets a good idea, he will launch a programme to realise the idea.
Researches carried out in Japan, the United States and Europe showed
that a successful manager is one who focuses a lot of time and effort
on steering his employees towards thinking like an entrepreneur. To
meet this objective, the manager needs to empower, support and
provide incentives for employees to attain self-direction.
(ii) Capability Development Process
In a technology-centred world, conglomerates need to fully utilise
their advantage as a large establishment not only in matters of
economies of scale but also in the aspects of widening and deepening
the knowledge and abilities of its employees.
SELF-CHECK 1.2
Figure 1.2 shows three types of essential skills required at each level of
management. The arrow pointing upwards shows the type of skills that are
needed by top-level management. The arrow pointing downwards shows the
type of skills that are needed by lower-level management or line managers.
SELF-CHECK 1.3
What other skills does a manager need?
TOPIC 1 WHAT IS MANAGEMENT? ! 9
All of the above-mentioned are managers as they plan, organise, lead and control
employees and tasks in an organisation with the aim of achieving its
organisational goals. There are many ways to categorise managers. For example,
we can differentiate managers based on level, position or organisational function.
Top-level managers are the highest-level managers in a firm. They are commonly
known as executives. Titles given include president, chief executive officer, vice
president or chief financial officer.
Under top level managers are the middle-level managers. They are usually
designated as managers.
All these levels have many similarities. Managers at all levels plan, organise, lead
and control employees and tasks in an organisation. Managers also spend time
with their employees through conversations and surveillance; provide influence
and motivation; and attend face-to-face conferences and committee meetings.
Nonetheless, there are two main differences between the three management
levels. Firstly, top and mid-level managers have employees as managers under
them. In brief, they manage other managers unlike line-managers. Managers at
different levels utilise their time differently. Top-level managers spend most of
their time planning and setting goals. Middle-level managers define goals in
specific projects for lower-level managers to implement. Lower-level
management or line-managers focus on giving directions and controlling their
subordinates at work daily to ensure the success of a project.
10 TOPIC 1 WHAT IS MANAGEMENT?
SELF-CHECK 1.4
Based on what you have learned, identify the differences between the
three levels and tabulate your answers.
EXERCISE 1.1
Taylor was not alone in this research. Henry Gantt (1861-1919), a friend of
Taylor, focused on the control system in the scheduling of production. The
Gantt Chart is still used today in planning the schedule of a project and has
also been adapted in computerised-scheduling applications.
The husband and wife team of Frank (1868-1924) and Lillian Gilbreth (1878-
1972), also strived to further expand the scientific management approach.
Lillian was a pioneer in the field of industrial psychology and contributed
greatly to human resource management. She believed that if scientific
management was widely utilised, the abilities of each employee would
grow considerably.
(b) Bureaucratic Management
Bureaucratic management is an approach to management that is based on
guidelines, hierarchy, clear division of labour as well as rules and
procedures. Max Weber (1864-1920), a German social theorist, introduced
many bureaucratic concepts. Among the components of bureaucracy are:
(i) Authority and clearly defined responsibilities;
(ii) Positions in an organisation that are structured according to
hierarchy;
(iii) Promotions based on qualifications;
(iv) Records of all administrative actions and decisions to ensure
continuity of organisational rules;
(v) Separation of ownership and management; and
(vi) Guidelines implemented to all employees without bias.
(xiv) Esprit de corps: A term, borrowed from the French language, that
means loyalty and devotion in uniting the members of a group. It
emphasises on harmony and unity in an organisation.
Mary Parker Follet (1868-1933) was trained in the field of philosophy and
political science. Her approach focused on the involvement of employees and
sharing of information among managers. She stressed the importance of common
goals among subordinates to reduce personal conflicts. FolletÊs ideas were
contrary to the ideas in scientific management but conformed with modern
management. Her approach focused on the individual and not engineering
techniques. Follet stressed on issues relevant to the 1990s such as mankind,
ethics, authority and leadership to inspire employees to excel in their jobs. Her
main concepts included delegation of authority, leading employees and not
commanding them as well as allowing employees to act according to situations.
Overall, the classic perspective towards management is very important and has
given organisations a basic skill to increase productivity and garner effective
support from employees.
This approach can be seen in most companies. The economic and sociology
sector has significantly influenced how managers probe further into an
organisationÊs strategy and structure. Psychology has influenced the
management approach through motivation, communication, leadership
and personnel management.
The two main theories under this perspective are the systems and contingency
theories.
(a) Systems Theory
A system comprises of closely related sections that function in general to
achieve the same objective. A system functions to transform input found
from the external environment to output. The five components of a system
are:
(i) Input equipment, people, finance or information source that are
used to produce products or services.
(ii) Transformation process the use of production technology to
transform input to output.
(iii) Output comprises of products and services of an organisation.
(iv) Feedback decisions that will influence the selection of input used in
the next process cycle.
(v) Environment includes social, political and economic influences.
Ideas of systems that influence the mind sets of management comprise of:
(i) Open system a system that interacts with the external environment
to survive.
(ii) Closed system a system that does not interact with the external
environment to survive will face failures.
(iii) Entropy the tendency for a system to become obsolete.
(iv) Synergy individuals, groups and organisations that can achieve
more if they cooperate compared to working alone.
(v) Sub-system sections of a system that are interdependent.
(b) Contingency Approach
The classical management approach is perceived as a universal observation.
The management concept is perceived as universal when the management
practice is the same in all situations. In business studies, an alternative
observation arose.
EXERCISE 1.2
3. What are the new elements in the current management functions that
do not clarify the functions of traditional management?
A. Realisation of work
B. Facing competition
C. Managing individuals, projects and processes
D. Leading