PRINCIPLES OF MANAGEMENT

The Basics in Management

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aim(s) to create a surplus(s). . Weihrich &
Koontz
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What is a Managers Job ?

Additionally, Managers need to factor in external environmental forces:
Political Economic Regulatory

Societal

Organization

Globalization Technological
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For maximum benefit to the organization

Managerial Roles (Mintzberg)

Interpersonal

Decisional

Informational

Mintzberg's Set of Ten Roles

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Details of Roles

Management: roles & skills

Managerial Roles (Mintzberg)
Role Interpersonal Figurehead Leader Liaison Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Opportunity finding& reacting Strategy Plan Trouble shooter Handling unexpected disturbance Contingency Resource allocator Initiating/approving changes Budgeting Negotiator Getting best deal for Organization Contracts 6 nerve centre and interpretation networking within the organization Transmit intent to outsiders; expert Reports Meetings etc. Board Meets symbolic head; required to show face in social & legal conditions. Motivating & directing subordinates Networking outside for information Ceremonial, Civic etc. Project plan Favors group meets Description Examples

Management: roles & skills

Managerial Skills(Katz & others)

Technical Skills:
Application of specialized knowledge or expertise acquired though formal training & its use.

Skills Needed

Board

Human Skills:
Ability to work with people, understand and motivate groups & individuals.

Exec.
Mgr. Supr.
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Conceptual Skills:
Mental ability to recognize, analyze, diagnose and think through complex situations.

BASIC MANAGERIAL FUNCTIONS

Organizing

Planning

Staffing

Leading

Controlling
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Management Process and Goal Attainment

Management and Organizational Resources

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Planning involves tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.
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Planning
Determining organizational goals and means to reach them Managers plan for three reasons
1. Establish an overall direction for the organizations future

2. Identify and commit resources to achieving goals

3. Decide which tasks must be done to reach those goals
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Organizing means assigning the planned tasks to various individuals or groups within the 13 organization and cresting a mechanism to put plans into

Organizing

Process of deciding where decisions will be made, who will perform what jobs and tasks, and who will report to whom in the company Includes creating departments and job descriptions

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Leading (Influencing) means guiding the activities of the organization members in appropriate directions. Objective is to improve productivity.

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Leading

Getting others to perform the necessary tasks by motivating them to achieve the organizations goals Crucial element in all functions

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1. Gather information that measures recent performance 2. Compare present performance to preestablished standards

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Systems approach to Management

ENVIRONMENT Transformation process

Input

Output

Feedback (Reenergizing the system)

System Boundary

Organization as a System receives Input, transforms it through a Process for Output and Operates in an Environment (economic, regulatory and other forces)

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Systems approach to Management contd.

Inputs: 5 Ms of Management

Inputs or the resources managers deal with are: Man: human resources, both inside and connected with an organization; Materials: goods (hard & software, processed or semifinished) and services required to create the sellable end product; Machines: technology and expertise deployed towards the transformation process; Methods: systems, procedures and processes seamlessly put together for the transformation; Measurement: score-keeping and in-process monitoring continuously with due feedback to keep on-course on time. Money is required for generating all theses Ms managers need to acquire, deploy, generate and distribute money as a primary need for business!

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Systems approach to Management contd.

Output for Stake-holders in Business:

Stake: Something wagered or risked; an interest in an enterprise with contingent gain or loss Webster s dictionary Holders who have stake in Business: Shareholders: are the owners. They have put in their money in the enterprise, expecting better returns from it than from other ventures; Society: includes the State, provincial and local governments for the improvement of quality of life of its citizens;
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Systems approach to Management contd.

Output for Stake-holders in Business contd.

Suppliers: continuity of their enterprise depends on the success of the customer enterprise; Customers: require the goods and services provided by the enterprise, better than those from its competitors. The enterprise is, in turn, a supplier to its customers; Employees: livelihood depends on the progress and success of the employing enterprise;

There is a freedom of choice (for association) between each of these stake-holders and the enterprise in the longer term:

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But they sink or swim together in the shorter term

Systems approach to Management contd.

Management as a system transforms inputs:

by the process of Planning + Organizing + Staffing + Leading + Controlling

to accomplish certain pre-determined, (as derived from stakeholder needs) goals or 22 objectives

Systems approach to Management contd.

Stakeholders Shareholders; Society; Customers; Employees; Suppliers

Man, Machine Material, Method, Measurement

Product/Services, Profits, Customer & Societal satisfaction, Other Long-term Goals

Organizing

Controlling

(Goal Oriented)

Inputs

(External To Orgnzn.)

Outputs

Stake holder Feedback (reenergizing the system)

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EXTERNAL ENVIRONMENT(Opportunities, Constraints)

Planning

Staffing

Leading

A MODEL OF MANAGERIAL COMPETENCIES

Communication Competency Teamwork Competency

Managerial Effectiveness
Self-Management Competency

Planning and Administration Competency

Global Awareness Competency

Strategic Action Competency

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Introductory Concepts: What Are Managerial Competencies?

Competency a combination of knowledge, skills, behaviors, and attitudes that contribute to personal effectiveness

Managerial Competencies sets of knowledge, skill, behaviors, and attitudes that a person needs to be effective in a wide range of positions and various types of organizations
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BASIC LEVELS OF MANAGEMENT

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LEVELS OF MANAGEMENT
First-line

Managers: have direct responsibility for

producing goods or services Foreman, supervisors, clerical supervisors

Middle

Managers:

Coordinate employee activities Determine which goods or services to provide Decide how to market goods or services to customers Assistant Manager, Manager (Section Head)

Top

Managers: provide the overall direction of an

organization Chief Executive Officer, President, Vice President

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FIRST LINE MANAGERS / ENTRY LEVEL MANAGERS

The initial management job that most people attain is typically a first-line management position, such as a team leader or supervisor a person in charge of smaller work units composed of hands-on workers. Job titles for these first-line managers vary greatly, but include such designations as department head, group leader, and unit leader.
First-line managers ensure that their work teams or units meet performance objectives, such as

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First-line Managers
Directly responsible for production of goods or services

Employees who report to first-line managers do the organizations work

Spend little time with top managers in large organizations

Technical expertise is important

Rely on planning and administration, self-management, teamwork, and communication competencies to get work done

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MIDDLE MANAGER

Middle managers report to top managers and are in charge of relatively large departments or divisions consisting of several smaller units. Examples of middle managers include clinic directors in hospitals; deans in universities; and division managers, plant managers, and branch sales managers in businesses.

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Middle

managers

develop

and

Middle Managers
Responsible for setting objectives that are consistent with top managements goals and translating them into specific goals and plans for first-line managers to implement Responsible for coordinating activities of first-line managers Establish target dates for products/services to be delivered Need to coordinate with others for resources Ability to develop others is important Rely on communication, teamwork, and planning and administration competencies to achieve goals
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TOP LEVEL MANAGERS

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Managers at this level ensure that major performance objectives are established and accomplished. Common job titles for top managers include chief executive officer (CEO), chief operating officer (COO), president, and vice president. These senior managers are considered executives, responsible for the performance of an organization as a whole or for one of its significant parts

Top Managers
Responsible for providing the overall direction of an organization
Develop goals and strategies for entire organization

Spend most of their time planning and leading

Communicate with key stakeholdersstockholders, unions, governmental agencies, etc., company policies Use of multicultural and strategic action competencies to lead firm is crucial
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Management Level and Skills

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Maslow Need Hierarchy

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Following are some of the skills and personal characteristics that the American Assembly of Collegiate Schools of Business (AACSB) emphasis Leadership ability to influence others to perform tasks Self-objectivity realistically ability to evaluate yourself

Analytic thinking ability to interpret and explain patterns in information

Behavioral flexibility ability to modify personal behavior to react objectively rather than subjectively to accomplish organizational goals
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Oral communication ability to express ideas clearly

THE LEADERSHIP GRID : Source: Scientific Methods Inc.

X & Y axis on a scale of 1 9 High CONCERN FOR PEOPLE 1,9 Country Club Mgmt Team Mgmt 9,9

5, 5 Middle of the Road Management

low

1,1 Impoverished Mgmt Low

Authority Compliance 9,1

CONCERN FOR PRODUCTION

High

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Myth and Reality in principles of Management Myth: The manager is a reflective, methodical planner. Reality: The average manager is swamped by trivialities and crises and spends only nine minutes or so on any activity. Myth: The effective manager has no regular duties to perform. Reality: Managers attend upper management meetings, meet regularly with employees, coworkers, and potential clients, and absorb and process information on a continued basis. Myth: The manager's job is a science. Reality: Managers rely heavily on interaction and judgment.

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MYTH AND REALITY IN PRINCIPLES OF MANAGEMENT CONTD

Myth: Managers are self-starters, self-directed, and autonomous. Reality: Good managers are self-managing: They accept autonomy, while seeking input from supervisors. Myth: Good managers seek out the information they require. Reality: Managers don't always have access to information they need. Myth: Competition among managers is good for business. Reality: Collaboration (the pooling of resources) and cooperation (working together) among

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