PRINCIPLE OF MANAGEMENT BA(MBANB) - 531

MANAGEMENT
Management is the attainment of organisational goals in an effective and efficient manner through planning,
organizing, leading and controlling organisational resources.

THE FOUR MANAGEMENT FUNCTIONS

The function of planning, organizing, leading and controlling are integral to the role of manager.

PLANNING
Planning define where the origination wants to be in future and how to get there. Planning means defining
goals for future organisational performance and deciding on the task and use of resources needed to
attain them.
ORGANISING
Organising typically follows planning and reflects the way the organisation tries to accomplish the plan.
Organising involves the assignment of tasks, the grouping of tasks into departments, and the allocation
of resources to departments.
LEADING

Providing leadership is becoming an increasingly important management function.

Leading is the use of influence to motivate employees to achieve organisational goals. Leading means
creating a shared culture and values, communicating goals to employees throughout the organisation,
and infusing employees with the desire to perform at a high level. Leading involves motivating entire
departments and divisions as well as those individuals working immediately with the manager.

CONTROLLING

Controlling is the fourth function in the management process. Controlling means monitoring employees’
activities, determining whether the organisation is on target towards its goal and making corrections as
necessary.
Managers must ensure that the organisation Is moving towards its goals. New trends towards
empowerment and trust on employees have led many organisation to place less emphasis on top-down
control and more emphasis on training employees to monitor and correct themselves.

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ORGANISATIONAL PERFORMANCE
The other part of our definition of management is the attainment of organisational goals in an efficient
and effective manner.
EFFECTIVENESS
Organisational effectiveness is the degree to which the organisation achieves a stated goal.
EFFICIENCY
Organisational efficiency refers to the amount of resources used to achieve an organisational goal.
ORGANISATIOAN

Our formal definition of an organisation is a social entity that is goal directed and deliberately structured. A
social entity is made up of two or more people.
Goal directed means being designed to achieve some outcome, such as make a profit.
Being deliberately structured means that tasks are divided, and responsibility for their performance is
assigned to organisation members. This definition applies to all organisations, whether profit-making or
not-for-profit.

PERFROMANCE
The organisation’s ability to attain its goal by using resources in an efficient and effective manner.

MANAGEMENT SKILLS
A manager’s job is complex and multidimensional. Although some management theorists propose a long
list of skills, the necessary skills for managing a department or an organisation can be summarized in
just three categories: conceptual, human and technical.

CONCEPTUAL SKILLS.
Conceptual skill is the cognitive ability to see the organisation as a whole and the relationship among its
parts. Conceptual skill involves the manager’s thinking, information-processing k involves knowing where
one’s department firs into the total business and social environment, broad, long-term view.

Conceptual skills are needed by all managers, but are especially important for managers at the top.

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HUMAN SKILLS
Human skill is the manager’s ability to work with and through other people and to work effectively as a
group member. This skill is demonstrated in the way a manager relates to other people, including the
ability to motivate, facilitate, coordinate, lead, communicate and resolve conflicts. A manager with
human skills allows subordinates to express themselves without fear of ridicule and encourages
participation.
TECHNICAL SKILLS
Technical skill is the understanding of and proficiency in the performance of specific tasks. Technical skill
includes mastery of the methods, techniques and equipment involved in specific functions such as
engineering, manufacturing or finance. Technical skill also includes specialized knowledge, analytical
ability and the competent use of tools and techniques to solve problems in a specific discipline.

MANAGEMENT TYPES:
Managers use conceptual, human and technical skills to perform the four management functions of
planning, organising, leading and controlling in all organisations

VERTICAL DIFFERENCES:
An important determinant of the manager’s job is hierarchical level. Three levels in organisational
hierarchy are illustrated.
TOP MANAGER
Top managers are at the top of the hierarchy and are responsible for the entire organisation. They have
such titles as managing director, chairperson, executive director, chief executive officer (CEO) and
general manager. Top managers are responsible for setting organisational goals, defining strategies for
achieving them, monitoring and interpreting the external environment, and making decisions that affect
the entire organisation

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MIDDLE MANAGER
Middle managers work at middle levels of the organisation and are responsible for business units and
major departments. Examples of middle manager positions are department head, division head, manager
of quality control, and director of the research lab. Middle managers typically have two or more
management levels beneath them. They arc responsible for implementing the strategies and policies
defined by top managers
FIRST LINE MANAGER
First-line managers are directly responsible for the production of goods and services. They are the first
or second level of management and have such titles as supervisor, line manager, section chief and office
manager. They are responsible for groups of non-management employees. Their primary concern is the
application of rules and procedures to achieve efficient production, and to provide technical assistance
and motivate subordinates.
HORIZONTAL DIFFERENCES
The other major difference in management jobs occurs horizontally across the organisation.
FUNCTIONAL MANAGER
Functional managers are responsible for departments that perform a single functional task and have
employees with similar training and skills. Functional departments include advertising, sales, finance,
human resources, manufacturing and accounting. Line managers are responsible for the manufacturing
and marketing departments that make or sell the product or service. Staff managers are in charge of
departments such as finance and human resources that support line departments.

GENERAL MANAGER
General Managers are responsible for several departments that perform different functions. A general
manager is responsible for a self-contained division, such as a Myer department store, and for all of the
functional departments within it. Project managers also have general management responsibility,
because they coordinate people across several departments to accomplish a specific project.

MANAGER ACTIVITIES
One of the most interesting findings about managerial activities is how busy managers are and how hectic
the average workday can be.
The manager’s involvements are so widespread and voluminous that there is little time for quiet reflection.
The average time spent on any one activity is less than nine minutes.

MANAGER ROLE
A manager’s role is a set of expectations for a manager’s behavior. These roles are directed inside as
well as outside of the organization.
These roles are divided into three conceptual categories
 Informational Roles
 Interpersonal Roles
 Decisional Roles

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INFORMATIONAL ROLES
Roles associated with the tasks needed to obtain and transmit information in the process of managing
the organization.
 Monitor

Analyzing information from both the internal and external environment.

 Disseminator
Transmitting Information to influence the attitudes and behavior of employees.
 Spokesperson
Using information to positively influence the way people in and out of the organization respond
to it.
INTERPERSONAL ROLES
Roles that managers assume to provide direction and supervision to both employees and the
organization as a whole.
 Figurehead
Symbolizing the organization’s mission and what it is seeking to achieve.
 Leader
Training counseling, and mentoring high employee performance.
 Liaison
Linking and coordinating the activities of people and groups both inside and outside the
organization.
DECISIONAL ROLES
Roles associated with methods managers use in planning strategy and utilizing resources.
 Entrepreneur
Deciding which new projects or programs to initiate and to invest resources in.
 Disturbance handler
Managing an unexpected event or crisis.
 Resource allocator
Assigning resources between functions and divisions, setting the budgets of lower managers.
 Negotiator
Reaching agreements between other managers, unions, customers, or shareholders.

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CHANGING PARADIGM OF MANAGEMENT

A paradigm is a shared mind-set that represents a fundamental way of thinking about, perceiving, and
understanding the world. Shifts in ways of thinking are occurring in our society, and these in turn impact
organizations, causing shifts in management thinking and behavior. The primary shift is from the
traditional vertical organization to something called the learning organization.
OLD PARADIGM – VERTICAL ORGANIZATION
 One in which activities are grouped by common function from the bottom to the top of the
organization. The whole organization is coordinated and controlled through the vertical hierarchy,
with decision-making authority residing with upper-level managers.
 Characterized by routine, specialized jobs and standardized control procedures.
 Very effective in stable times. However, they often do not work well in fast-changing
environments. In response, many companies are shifting to a new paradigm and becoming
organizations.
NEW PARADIGM - LEARNING ORGANIZATION
 The primary responsibility of the managers is not to make decisions, but to create learning
capability throughout the organization. Employees on the front lines routinely make decisions
rather than passing them up the hierarchy for approval.
 There is no single model of the learning organization; it is a philosophy or attitude about what an
organization is and the role of employees.
 Everyone in the organizations participates in identifying and solving problems, enabling the
organization to continuously experiment, improve, and increase its capability.
 Top managers are leaders who create a vision for the future that is widely understood and
imprinted throughout the organization.
 Employees are empowered to identify and solve problems because they understand the vision
and long-term goals of the organization.
The traditional top-down hierarchy is giving way to flatter organizations to build around self-directed
teams collaborating across levels and departments. Lower-level managers serve as team leaders,
coaches and facilitators.

FORCES ON ORGANIZATIONS
1. The most striking change now affecting organization and management is globalization.
Globalization brings a need for relentless innovation, greater concern for quality, rapid response,
enhanced productivity, and new levels of customer service.
2. Diversity of the workforce has become a fact of life for all organizations, even those that do not
operate globally.
3. Another significant shift is that technology is electronic rather than mechanical, as the world is
gradually shifting from a workforce that produces material things to one that primarily manages
information.
4. In the face of these rapid transformations, organizations are learning to value change over
stability.

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PRINCIPLE OF MANAGEMENT BA(MBANB) - 531

NEW MANAGEMENT COMPETENCIES

Managers rely on varied skills and perform different activities depending on hierarchical level and job
responsibilities. For all managers, however, human skills are becoming increasingly important. Critical
skills for top-level managers in today’s world include the ability to create an exciting and demanding work
environment and to inspire confidence in and support for the organization and its leadership.
Middle managers have to learn to build relationships, empower others, promote cooperation, and manage
conflict. First-line supervisors need the ability to motivate workers on a day-to-day basis and sustain
employee energy toward he completion of organizational goals. Thus, although managers at different
levels play different roles and rely on different skills, there are some manager competencies that are
important to all managers in the new world of organizations.
Rather than a single-minded focus on profits, today’s managers recognize the importance of staying
connected to clients and employees on a daily basis. They remain flexible and adaptable, able to respond
quickly to client and employee needs. Rather than simply issuing orders, managers finding ways to
benefit from employees’ insights giving them the freedom to make decisions and solve problems.
Leadership is dispersed throughout the organization, and managers share rather than hoard power. The
model of managers controlling workers no longer applies in a world of rapidly changing technology,
diversity, and global competition. Instead, managers act as coaches and facilitators, getting everyone
involved and committed. Everyone is given a chance to be a leader.

TURBULENT TIMES: MANAGING CRISES AND UNEXPECTED EVENTS

All of the new management skills and competencies we have discussed are important to managers in
such an environment. In addition* crisis management places further demands on today’s managers.
Some of the most recent thinking on crisis management suggests the importance of five leadership skills
1. Stay calm
2. Be visible
3. Put people before business
4. Tell the truth
5. Know when to get back to business

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