Management - the process of dealing with or controlling things or people.

Who are managers?

We tend to think about managers based on their position in an organization. This tells us a bit about
their role and the nature of their responsibilities. The following figure summarizes the historic and
contemporary views of organizations with respect to managerial roles. [1] In contrast to the traditional,
hierarchical relationship among layers of management and managers and employees, in the
contemporary view, top managers support and serve other managers and employees (through a
process called empowerment), just as the organization ultimately exists to serve its customers and
clients. Empowerment is the process of enabling or authorizing an individual to think, behave, take
action, and control work and decision making in autonomous ways.
In both the traditional and contemporary views of management, however, there remains the need for
different types of managers.Top managers are responsible for developing the organizations strategy
and being a steward for its vision and mission. A second set of managers includes functional, team,
and general managers. Functional managers are responsible for the efficiency and effectiveness of an
area, such as accounting or marketing. Supervisory or team managers are responsible for coordinating
a subgroup of a particular function or a team composed of members from different parts of the
organization. Sometimes you will hear distinctions made between line and staff managers.
A line manager leads a function that contributes directly to the products or services the organization
creates. For example, a line manager (often called a product, or service manager) at Procter & Gamble
(P&G) is responsible for the production, marketing, and profitability of the Tide detergent product line.
A staff manager, in contrast, leads a function that creates indirect inputs. For example, finance and
accounting are critical organizational functions but do not typically provide an input into the final
product or service a customer buys, such as a box of Tide detergent. Instead, they serve a supporting
role. A project manager has the responsibility for the planning, execution, and closing of any project.
Project managers are often found in construction, architecture, consulting, computer networking,
telecommunications, or software development.
A general manager is someone who is responsible for managing a clearly identifiable revenueproducing unit, such as a store, business unit, or product line. General managers typically must make
decisions across different functions and have rewards tied to the performance of the entire unit (i.e.,
store, business unit, product line, etc.). General managers take direction from their top executives.
They must first understand the executives overall plan for the company. Then they set specific goals
for their own departments to fit in with the plan. The general manager of production, for example,
might have to increase certain product lines and phase out others. General managers must describe
their goals clearly to their support staff. The supervisory managers see that the goals are met.

Organization
A social unit of people that is structured and managed to meet a need or to pursue collective goals. All
organizations have a management structure that determines relationships between the different
activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry
out different tasks. Organizations are open systems--they affect and are affected by their environment.
Goal
An observable and measurable end result having one or more objectives to be achieved within a more
or less fixed timeframe.
5Ps
Plan

Planning is the key to the success of an organization. It is necessary because businesses operate amid
uncertainty and risk, and the managers do not have the opportunity of making decisions under a
background of certainty. Planning involves setting clear and realistic goals, organizing business activity
based on the revenues forecast, formulating strategies, preparing budgets, and implementing
strategies, and evaluation and control systems.
Process
An organizational process includes both business process and operational process. The business
process is based on the business model of the firm. The business process guides the firm in generating
revenues, managing costs, and generating profits. Managers select a business model that has the
potential of creating value for the shareholders.
An operational process consists of multiple inputs, outputs, and processes that result in an
organizational output (product or service). In the operational process, inputs arise from all the basic
business functions, including marketing, finance, operations management, human resources, and
technology as required. Managers select the appropriate inputs and process modules necessary for the
desired output. They structure the modules in the operational process to minimize cost, improve
quality, increase productivity, and generate the desired output (product or service).
People
The people within an organization include employees, suppliers, customers, and shareholders.
Managers motivate, prepare and assign the appropriate people to the appropriate positions in the
operational process. They build long-term relationships with people who are able to deliver the
resources required for the product or service. They listen to the people who are buying or will buy the
product or service. They monitor organizational outputs to make sure they meet the needs of the
people who will buy the product. They also understand the expectations of the people who have
invested in the company and aim to create value that meets their expectations.
Possessions
Organizational possessions include assets and capital. Organization capital includes human capital,
intellectual capital, economic capital, and marketing capital. Managers evaluate the organizational
needs and the value of the organizational capital of the firm. They raise economic capital and invest in
human, intellectual, and marketing capital. They apply organizational assets and capital in the
operational process in ways that will generate maximum value for the firm.
Profits
Managing a business without concern for profits is not good management. Managers adopt
management processes which have the potential of generating long-term profits. They make their
decisions based on the understanding that the first step in business is to survive, the second is to
generate profits, and the third is to create value for the shareholders. Managers evaluate
organizational performance with both qualitative and quantitative measures.
Management is not about functions, but rather it is about the process of achieving organizational goals
and creating value.
Organizational Resources (raw, capital, money, people -> Production Process -> Finished Products
(goods, services)).
Organizational resources are all assets that are available to a firm for use during the production
process. The four basic types of organizational resources are human, monetary, raw materials and
Capital. Organizational resources are combined, used, and transformed into finished products during
the production process.
Human resources are the people who work for an organization. Their skills and knowledge are
invaluable to the managers. Monetary resources are amounts of money used by managers to pay for
goods and services for the organization. Raw materials are the elements used directly to manufacture
products. Examples of raw materials would be the wood, rubber, metal and lead used to make a pencil.

Capital resources are the machines used during the manufacturing process. Modern machines can
greatly improve the efficiency of the manufacturing process. If an organization uses old obsolete
machinery it may not be able to compete with an organization using more efficient machinery.
Interpersonal Category
The managerial roles in this category involve providing information and ideas.
1.
Figurehead As a manager, you have social, ceremonial and legal responsibilities. You're
expected to be a source of inspiration. People look up to you as a person with authority, and as a
figurehead.
2.
Leader This is where you provide leadership for your team, your department or perhaps your
entire organization; and it's where you manage the performance and responsibilities of everyone in the
group.
3.
Liaison Managers must communicate with internal and external contacts. You need to be able
to network effectively on behalf of your organization.
Informational Category
The managerial roles in this category involve processing information.
4.
Monitor In this role, you regularly seek out information related to your organization and
industry, looking for relevant changes in the environment. You also monitor your team, in terms of both
their productivity, and their well-being.
5.
Disseminator This is where you communicate potentially useful information to your
colleagues and your team.
6.
Spokesperson Managers represent and speak for their organization. In this role you're
responsible for transmitting information about your organization and its goals to the people outside it.
Decisional Category
The managerial roles in this category involve using information.
7.
Entrepreneur As a manager, you create and control change within the organization. This
means solving problems, generating new ideas, and implementing them.
8.
Disturbance Handler When an organization or team hits an unexpected roadblock, it's the
manager who must take charge. You also need to help mediate disputes within it.
9.
Resource Allocator You'll also need to determine where organizational resources are best
applied. This involves allocating funding, as well as assigning staff and other organizational resources.
10.
Negotiator You may be needed to take part in, and direct, important negotiations within your
team, department, or organization.

Theories of management
Human Relations Movement

(1930-today)
Eventually, unions and government regulations reacted to the rather dehumanizing effects of these
theories. More attention was given to individuals and their unique capabilities in the organization. A
major belief included that the organization would prosper if its workers prospered as well. Human
Resource departments were added to organizations. The behavioral sciences played a strong role in
helping to understand the needs of workers and how the needs of the organization and its workers

could be better aligned. Various new theories were spawned, many based on the behavioral sciences
(some had name like theory X, Y and Z).
Scientific Management Theory
(1890-1940)
At the turn of the century, the most notable organizations were large and industrialized. Often they
included ongoing, routine tasks that manufactured a variety of products. The United States highly
prized scientific and technical matters, including careful measurement and specification of activities
and results. Management tended to be the same. Frederick Taylor developed the: scientific
management theory which espoused this careful specification and measurement of all organizational
tasks. Tasks were standardized as much as possible. Workers were rewarded and punished. This
approach appeared to work well for organizations with assembly lines and other mechanistic,
routinized activities.
Classical Theory
Classical management emphasized the identification of universal principles of management which, if
adhered to, would lead to organizational success. Universal principles encompassed two broad areas.
The first was identifying business functions and the second was structuring organizations and
managing workers.
In essence, classical theory holds that management is a process consisting of several related
functions, such as planning and organizing. Thus, by identifying specific business functionsincluding
marketing, finance, production, and subfunctions within those and other major categoriescompanies
can efficiently divide an organization into departments that work as a process. Furthermore, by
carefully structuring chains of authority and responsibility, an entity can successfully facilitate the
performance of individuals within departments to achieve company goals."