CRAFT IN NAUTICAL SCIENCE

FUNDAMENTALS OF MANAGEMENT

INTRODUCTION

This module unit is intended to equip the trainee with knowledge, skills and
attitudes that will enable him/her to carry out management functions in an
organization

GENERAL OBJECTIVES

By the end of the module unit, the trainee should be able to:

a) understand the principles of management

b) apply the management principles in carrying out organizational functions
c) apply management functions in an organization
d) appreciate human and public relations in management

TOPIC ONE

INTRODUCTION TO MANAGEMENT

The topic defines the term management, explains the evolution of management thought,
Importance of delegation, levels of management and identifies qualities of an effective
Manager

Task 1 defining the term management

Management is the process of planning, leading, organizing, and controlling the efforts of
organizational
members and using all other organization resources to achieve stated organizational goals, it
focuses on
the entire organization from both short and long term perspective. Management aim is to
increase the
effectiveness of the organization.

According to Theo Heimann, management has three different meanings, viz,

Management as a Noun: refers to a Group of Managers.
Management as a Process: refers to the Functions of Management i.e. Planning, Organizing,
Directing, Controlling, etc.
Management as a Discipline: refers to the Subject of Management.
Task 2 explaining evolution of management thought

Management has been progressively evolved through the following three stages.
The Classification theory of management
It has three streams:-

1. Bureaucracy : 1900
2. Scientific management: 1900-1930
3. Administrative / Operational management: 1916-1940

The Neo-classical Theory of management

It has two streams:-
1. Human Relations: 1930-1950
2. Behavioral Approach: 1940-1950
Modern Theory of management
It has three streams:-
1. Quantitative Approach: 1950-1960
2. Systems Approach: 1960s on words
3. Contingency Approach: 1970s on words

Task 3 explaining importance of delegation

Delegation is giving others the authority to act on your behalf, accompanied with responsibility
and
accountability for results.

Importance of Delegation:

1. Effective management:
In the delegation process managers pass routine work to the subordinates. So they are free to
concentrate on other important matters. The main job of managers is to get the work done
effectively and by delegating the authorities and responsibilities managers can get the work done
effectively and efficiently from the subordinates.

2. Employees’ Development:

As a result of delegation employees get more opportunities to utilize their talents. It allows them
to develop those skills which help them to perform complex task. Delegation help in making
better future managers by giving them chance to use their skills, gain experience of work related
to higher job position.

3. Motivation of employees:
In the delegation when the manager is sharing his responsibilities and authority with the
subordinates it motivates the subordinates as they develop the feeling of belongingness and trust
which is shown to them by their superiors. Some employees can be motivated by such kind of
non-financial incentives.

4. Facilitates organizational growth:

In the process of delegation when the managers are passing their responsibility and authority to
the subordinates they keep in mind the qualification and capability of all the subordinates. This
leads to division of work and specialization which is very important for organizational growth.

5. Basis of Management Hierarchy:

Delegation establishes superior-subordinate relationship which is the base for hierarchy of
managers. The extent of power delegated to subordinates decides who will report to whom, and
the power at each job position forms the Management Hierarchy.

6. Better Coordination:
In delegation systematically responsibility and authority is divided and employees are made
answerable for non-completion of task. This systematic division of work gives clear pictures of
work to everyone and there is no duplication of work clarity in duties assigned and reporting
relationship brings effective coordination in the organization.

7. Reduces the work load of managers:

In the process of delegation, the managers are allowed to share their responsibilities and work
with the subordinates which help the managers to reduce their work load. With the process of
delegation the managers can pass all their routine work to the subordinates and concentrate on
important work. Without delegation managers will be overburdened with the work.

8. Basis of superior-subordinate relationship:

In the delegation process only two parties are involved that is superior and subordinate. If
superiors share or pass their responsibilities and authorities to the subordinates it indicates good
relationship between the superior and subordinate because superiors will transfer their
responsibility and authority to their subordinates only when they have trust in them. So
delegation improves the relations between superiors and subordinates.

Task 4 explaining the levels of management

Many managers work in an organization. However, these managers do not work at the same
level.
They work and operate at different positions. Hierarchy of these managerial positions is called
Levels
of Management.
Generally, there are Three Levels of Management, viz.,
1) Administrative or Top Level of Management.
2) Executive or Middle Level of Management.
3) Supervisory or Lower Level of Management.
At each level, individual manager has to carry out different roles and functions.
The Top Level Management
Consists of the Board of Directors (BOD) and the Chief Executive Officer (CEO). The Chief
Executive Officer is also called General Manager (GM) or Managing Director (MD) or
President. The Board of Directors is the representatives of the Shareholders, i.e. they are selected
by the Shareholders of the company. Similarly, the Chief Executive Officer is selected by the
Board of Directors of an organization.
The main role of the top level management is summarized as follows:-
a) The top level management determines the objectives, policies and plans of the
organization.
b) They mobilizes (assemble and bring together) available resources.
c) The top level management does mostly the work of thinking, planning and deciding.
Therefore, they are also called as the Administrators and the Brain of the organization.
d) They spend more time in planning and organizing
e) They prepare long-term plans of the organization which are generally made for 5 to 20
years.

Middle Level of Management

The Middle Level Management consists of the Departmental Heads (HOD), Branch Managers,
and the Junior Executives. The Departmental heads are Finance Managers, Purchase Managers,
etc. the Branch Managers are the head of a branch or local unit. The Junior Executives are
Assistant Finance Managers, Assistant Purchase Managers, etc. The Middle level Management is
selected by the Top Level Management.
The middle level management emphasizes more on following tasks:-
a) gives recommendations (advice) to the top level management
b) 1It executes (implements) the policies and plans which are made by the top level
management.
c) It co-ordinate the activities of all the departments.
d) They also have to communicate with the top level Management and the lower level
management.
e) They spend more time in co-coordinating and communicating.
f) They prepare short-term plans of their departments which are generally made for 1 to 5
years.

Lower Level of Management

The lower level management consists of the Foremen and the Supervisors. They are selected by
the middle level management. It is also called Operative / Supervisory level or First Line of
Management.
The lower level management performs following activities:-
 a) Lower level management directs the workers / employees.
b) They develop morale in the workers.
c) It maintains a link between workers and the middle level management.
d) The lower level management informs the workers about the decisions which are taken by
the management. They also inform the management about the performance, difficulties,
feelings, demands, etc., of the workers.
e) They spend more time in directing and controlling.
f) The lower level managers make daily, weekly and monthly plans.

Task 5 identifying qualities of an effective manager

An effective manager is one who manages themselves and the people they work with so that
both the
organization and the people profit from their presence. Such managers have the following
qualities;

i. Good Communicator - Whether communicating the corporate trickle down, status

of the project, or a one-on-one evaluation, an effective manager will also listen
and encourage a two-way dialogue with the person being managed. Knowing the
status of the issues and communicating that information timely will prove to be
the key factors for a project.

ii. Technically Savvy and Knowledgeable - While a manager may spend most of
his/her time solving personal issues, an effective manager with a strong technical
background will also prove to be a source of knowledge and provide technical
expertise.

iii. Crisis Manager - during a fire-fighting mode, an effective manager will be able to
calmly direct resources, understand the areas of contention, and effectively
resolve the conflicts

iv. Performance Recognizer - While each manager may have favorites within the
group, an effective manager will evaluate each team member by their efforts and
contributions. Awards, recognition, as well as addressing poor performance
should be some of the priorities of an effective manager.

v. Approachable and fair - an effective manager will be one that can be approached
by his team if the need for open dialogue should arise. The manager, as a leader,
may be resourceful, experienced, and very senior, but if he his unapproachable, it
will becomes difficult for the team members to communicate openly, may result
in high turnover, and reduce productivity