‡ An organization is a managed system designed and operated to achieve a specific set of objectives. ‡ A business Organization is consciously and formally established to accomplish certain goals that its members would be unable to reach by themselves.

‡ Business inputs typically are called resources, e.g. human, financial, physical and information resources. ‡ Products and services are the outputs of the business.

Objectives of a Business Organization 1. To make a profit for its owners 2. To furnish its customers with products and services 3. To provide an income to its employees, 4. To increase the level of satisfaction for everyone involved

Who Are Managers?
‡ Manager
± Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals

What Is Management?
‡ Managerial Concerns
± Efficiency ‡ ³Doing things right´
± Getting the most output for the least input

± Effectiveness ‡ ³Doing the right things´
± Attaining organizational goals

Efficiency and Effectiveness in Management

Efficiency (Means) Resource Usage Low Waste

Effectiveness (Ends) Goal Attainment High Attainment

Management Strives for: Low Resource Waste (high efficiency) High Goal Attainment (high effectiveness)

An Effective Manager
An effective manager is an active leader who creates a positive work environment in which the organization and its employees have the opportunity and the incentive to achieve high performance. An effective manager also utilizes all the inputs of the organization to give maximum output.

An Effective Manager
Active Leader

Creates positive work environment

Effective Manager

Provides incentive to achieve high performance

Produces opportunity to achieve high performance

Active Leader
Managers spend most of their time mastering basic routines and deciding how to do things right. Leaders, in contrast use vision and judgment to create and to do the right things.
Leaders by Warren Bennis and Burt Nanus

An Effective Manager is a good Leader The effective manager and an active leader take initiative to: ‡ Explore new ideas, methods, products and services ‡ Develop creative solutions to old problems ‡ Challenge employees to give their best ‡ Seek lone-term success for their organization, their sub-ordinates and themselves

An Effective Manager
Remember the difference between a boss and a leader; a boss says "Go!" ± a leader says "Let's go!"
~E.M. Kelly

A Positive Work Environment
‡ A positive work environment exists when the manager has done everything possible to establish the conditions that encourage success and to remove the causes of failure. ‡ The best managers structure their work units so that employees have no alternative but high performance. ‡ He concentrates on placing employees in such a position that they are able and willing to achieve success

The Opportunity to Achieve High Performance

‡ Managers and employees must understand their jobs thoroughly ‡ Understand the organization¶s current status ‡ Sense of the future of their job, work unit and organization.

The Opportunity to Achieve High Performance

‡ Employees should have adequate training and development ‡ They should have control over rational use of resources ‡ Should have freedom and interpersonal relationship ‡ Managers must seek ways to help their subordinates to give best performance

The Incentive to Achieve High Performance

‡ Must identify the factors that motivate subordinates to give high performance
± Challenging job, good working environment, rewards like pay rise, incentive, promotion etc.

‡ Managers usually need to link the factors that motivate employees to clear objectives

The Incentive to Achieve High Performance

‡ When incentives and objectives are consistent, the manager¶s message is very simple:
± Everyone wins ± the employee, the manager and the organization.

‡ Establishing these factors lead to the teamwork characteristic of well-managed and successful organizations.

Management Functions
The key functions include ‡ ‡ ‡ ‡ Planning, Organizing & Staffing, Leading and Controlling All these functions are critical to success of any manager and organization.

‡ Planning is analyzing a situation, determining the goals that will be pursued in the future and deciding in advance the actions that will be taken to achieve these goals.
± From Entire Organization to every worker ± Long term and short term

‡ Managers are responsible for gathering and analyzing the information on which plans are based, setting goals that will be achieved and deciding what needs to be done.

Organizing and Staffing
‡ Organizing and Staffing, includes the efforts of managers to assemble the human, financial, physical and information resources needed to complete the job ‡ To group coordinate employees, tasks and resources for maximum success.

‡ Focuses on the manager¶s efforts to stimulate high performance among employees. ‡ This activity involves directing, motivating and communicating with employees, both at individuals and in groups.

‡ Comprehensive plans, solid organizations and outstanding leaders do not guarantee a sure road to success. As a result controlling, stresses need for evaluation and change. ‡ The controlling function involves monitoring the progress of the organization or the work unit toward goals and ‡ Taking corrective measures and actions.

Management Functions
Planning Organizing Leading Controlling Lead to

Defining goals, establishing strategy, and developing sub-plans to coordinate activities

Determining what needs to be done, how it will be done and who will do it

Directing and motivating all involved parties and resolving conflicts

Monitoring activities to ensure that they are accomplished as planned

Achieving the organization¶s stated purpose

Management Functions
Planning Goals Objectives Strategies Plans Controlling Standards Measurement Comparison Actions Leading Motivation Leadership Communication Individual and Group Behavior Organizing Structure Human Resource Management

Management Skills
‡ Skills are specific abilities that result from knowledge, information, practice and aptitude. ‡ Managers need many skills, but generally they are divided into three categories;
± Technical Skills, ± Interpersonal and Communication Skills ± Conceptual and Decision Skills.

Management Skills
‡ When the key management functions
(Planning, Organizing & Staffing, Leading and Controlling) are performed in the presence

of these skills, the result is always a positive and high performance work environment

Management Skills
Management Functions Planning Organizing and Staffing Leading Controlling Management skills Technical Interpersonal and communication Conceptual and Decision

Positive, High performance work environment

Technical Skill
‡ Ability to perform a specialized task that involves a certain method or process. ‡ For example, a musician learns to play the basic technique of playing an instrument, after practice and his IQ, he develops a wonderful music that is good to the ears.

Technical Skill
‡ As a manager, you may have a set of basic technical skills, but as you take up bigger responsibilities, these skills give you the background for new responsibilities

Interpersonal & Communication Skills ‡ Influence the manager¶s ability to work well with people. ‡ Often called human or people skills. ‡ Managers must develop their abilities to lead, motivate and communicate effectively with those around them.

Interpersonal & Communication Skills ‡ Vital for a successful management career. ‡ Not only essential but mandatory in an organization. ‡ As one expert commented, ³In many companies, the reason a manager fails is not because he doesn¶t have technical skills. It is because he lacks the people skills.´

Conceptual & Decision Skills
‡ Involves the manager¶s ability:
± To recognize various issues, ± To examine the factors that influence these problems and ± To resolve them for the benefit of the organization and everyone concerned.

Conceptual & Decision Skills
‡ You must exercise their conceptual and decision skills with increasing frequency. ‡ You must consider a larger and more interrelated set of decision factors. ‡ Remember, experience plays a major part in the development of Conceptual and Decision Skills.

Management Levels
Strategic Tactical Managers Operational Managers

Strategic Managers
‡ Senior executives of an organization ‡ Responsible for its overall management. ‡ Focus on long-term issues and emphasize the survival, growth, general efficiency and effectiveness of the organization.

Strategic Managers
‡ Titles as: Chairman of the Board, Managing Director, Chief Executive Officer, President or Vice President etc. ‡ Concerned primarily with the interaction between the organization and its external environment. They also set the major goals and plans of the organization.

Strategic Managers
According to a Fortune survey of 500 CEOs of large organizations:
± 70 % work more than 55 hours per week. ± More than 70 % of their time is spent in meetings and interacting with others. ± 60% attended Graduate school in business and only 22% possess a graduate degree in business.

Tactical Managers
‡ Responsible for translating the general goals and plans developed by strategic managers into more specific objectives and activities. ‡ Tactical Managers are often called middle managers, because they are located between the strategic and operational managers.

Operational Managers
‡ A very important level of management ‡ They are lower-level managers supervise the operations of organization. who the

‡ Directly involved with non management employees, implementing the specific plans developed with tactical managers.

Operational Managers
‡ Their role is critical within the organization, because they are the link between management and non management personnel. ‡ These managers often have titles as, Supervisor, District Sales Manager, Field Manager, Sales Manager, etc.

Skills needed at different Management levels

Top Manager Mi le Manager ower-level Manager

Concept al ill an Skill Technical Skill I portance

Universal Need for Management

All Sizes of Organizations Small
All Organizational Areas Manufacturing ²Marketing Human Resources Information Systems Accounting


Management Is Needed in...

All Types of Organizations Profit Not-for-Profit

All Organization Levels Bottom Top

District Sales Manager
As a District Sales Manager, you must learn the following: ‡ Manager as an ACTIVE LEADER ‡ Management Functions ‡ Management Skills

The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it.
~Theodore Roosevelt

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