Basic of Management

Levels and functions of management

 Learning Outcomes

After studying this chapter, you should be able to:

• Define organization and management
• Explain the importance of management
• Describe the management process or functions of
P-O-S-D-C
• Describe a manager, the levels of management, and
management skills
• Understand the types of managers, and describe their roles
and the changing nature of their work
• Discuss the trials of management
 Introduction

• For most of our lives, we are members of one

organization or another.
• These organizations are put and kept together by a
group of people who see that there are benefits
available from working together towards a common
goal or goals.
• This chapter introduces management principles and
theories, and the challenges of applying these
principles and theories in today’s business
environment.
 Definition of an Organization
• An organization is defined as a systematic
arrangement of people brought together to
accomplish some specific purpose.
• Characteristics of an organization:
– A distinct goal and purpose
– Comprises people working together to accomplish
certain objectives
– A systematic structure
– An aim to serve society
 Definition of Management

• Classic definition:
• Mary Parker Follett, one of the earlier theorists of
management, defined management as the art of getting
things done through people.
• Broad definition:
• Management can be defined as the process of
consolidating and managing resources effectively and
efficiently in an effort to achieve the goals of the
organization.
 Importance of Management

• Management achieves organizational goals

• Management efficiently utilizes resources
• Management is essential for prosperity of society
• Management addresses the challenges of
management
• Management establishes equilibrium
 Process of Management

• A process is a way of doing things, which is on-going

(continuous) and systematic.
• Management is a process which emphasizes that all
managers, regardless of their specific aptitudes or
skills, engage in certain interrelated functions to
achieve certain desired goals.
 Management Functions

• Planning
– the process of defining goals, establishing strategies and developing
action plans to coordinate activities towards accomplishing
organizational goals.

• Organizing
– the process of determining what needs to be done, how it will be
done and who is to do it.
 Management Functions (cont.)

• Directing
– the process of directing and influencing all organizational members
involved, motivating them and resolving conflicts towards achieving
organizational goals.
• Controlling
– the process of monitoring activities to ensure that they are
accomplished as planned.
 Management Functions (cont.)

• Staffing
– Staffing is the managerial function of recruitment, selection,
training and development of staff towards achieving organizational
goals.
 Managers and Management
• The term ‘manager’ refers to someone who is responsible for carrying
out the four main activities of management in relationships over a
specific time.
• Entrepreneur as ‘Manager’ in start-up company
• One way to grasp the complexity of management is to understand
that managers play important roles at different levels in an
organization.
• These managers carry out a wide range of organizational activities
related to an organization’s success.
 Levels of Management
• Top level management
• responsible for the overall management of an organization
• They are called executives. They establish operating policies and
guide the organization’s interaction with its environment.
• Middle level management
• direct the activities of lower level managers and sometimes
those of operating employees
• direct activities which implement their organization policies and
balance organizational demands on managers with the
capacities of their employer
 Levels of Management (cont.)

• Lower level management

• responsible for the work of non-management employees,
but do not supervise other managers and are also directly
responsible for the production of goods or services
 Skills of Management

• Technical skills
• ability to utilize job specific knowledge of tools,
techniques and procedures which are specific to a
particular field to perform a task
• Human skills
• ability to work effectively with one’s own work group as
well as others in an organization
 Skills of Management (cont.)

• Conceptual skills
• ability to analyze and diagnose a situation to determine
cause and effect. This skill is also defined as an ability to
process information from both internal and external
environments of an organization and determine related
implications
 Scope and Responsibilities
of Managers
• General Manager
• responsible for managing several different divisions or
departments
• makes decisions across the different functions and ensures
that staff rewards are tied to the performance of entire
units
• Functional Manager
• in charge of one major function, for instance a department
in an organization
• can also be considered someone who manages a work unit
that is grouped based on specific functions
 Roles of Managers (Mintzberg)

• Interpersonal ❑ Decisional
• Figurehead – Entrepreneur
• Liaison – Disturbance
• Leader handler
• Informational – Resource
• Monitor allocator
• Disseminator
– Negotiator
• Spokesperson
 Levels and Roles of Managers
and the Nature of
Organizations
The roles played by a manager may differ depending on the size
of the company and the nature of its business (e.g. profit-
oriented or not-for-profit organization).
• Small- and medium-sized companies: the spokesperson and
the entrepreneurial roles are important as they establish
networking opportunities.
• Big companies: the resource allocator and the liaison roles
are more important as they have more resources to be
distributed.
• Even so, all the roles are interrelated and must be executed
to the best of the abilities of the managers.
 The New Manager or
Leader Profile
The characteristics of today’s managers include:
• No longer considered ‘the boss’, instead act as sponsors,
team leaders or internal consultants.
• No longer in control from the top of the pyramid, neither try
to control actions from the side-line.
• Empowering individual employees to do what is necessary to
achieve goals.
• Making sure employees have the resources to get jobs done.
 Challenges of Management
• Change is inevitable; today’s managers must view change as a
constant feature in their lives.
• Managers leading organizations must continuously operate in a
context that is very complex and dynamic, forcing them to
continually adjust to these changing conditions.
• Some of the prevalent and concurrent trials of management are:
• Internet and Information Technology
• Globalization
• Diversity and Intellectual Capital
• Ethical Practice and Social Responsiveness
 Managing Globalization
Managers are expected
to possess the following competencies
for
effective management
in managing globalization
 Keyword for chapter 1 & 2
• Organization
❑ Middle level
• Management management
• Planning ❑ Lower level
• Directing management/ first line
• Controlling management
• Manager ❑ Technical skill
❑ Human skill
• Efficiency and
effectiveness ❑ Conceptual skill
• Top level management ❑ General manager
❑ Interpersonal role
 Keyword for chapter 1 & 2
• Information role
❑ Negotiator
• Decision role
❑ Competencies
• Figurehead
❑ Internet
• Liasion
❑ Information technology
• Leader
❑ Globalization
• Monitor
❑ Diversity
• Disseminator
❑ Intellectual Property
• Spokesperson
❑ Ethic
• Entrepreneur
❑ Social Responsibility
• Disturbance handler
❑ Innovation Manager
• Resource allocator
 THANK YOU
ANY QUESTION?