Business Organization

&
Management

What is an Organization?
An organization

is a collection of
people who
work together
to achieve
individual and
organizational
goals.

What is an Organization
A

consciously coordinated social

unit, composed of two or more
people,
relatively

that

functions

continuous

on

basis

to

achieve a common goal or set of

goals.

Levels of Analysis
Organizational Level
Group Level
Individual
Level

What is Management?

Management is the process of

planning,

organizing,

leading,

and controlling an organizations

human, financial, material, and
other resources to increase its
effectiveness.

The Functions Of Management

Management
process of working with people and resources to

accomplish organizational goals

effective Doing things right
achieve organizational goals

efficient Doing the right things

achieve goals with minimum waste of resources

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What Managers Do
Managers (or administrators)
Individuals who achieve goals through other
people.
Manager: Any person who supervises one or
more subordinates.
Managerial
ManagerialActivities
Activities
Make
Makedecisions
decisions
Allocate
Allocateresources
resources
Direct
Directactivities
activitiesofofothers
othersto
to
attain
attaingoals
goals

Plannin
g

Managers Job

Organizin
g

Leading
Controllin
g

Managem
e

nt Functio
ns

Henry Fay
o
l
Industrial
ist wrote

a French
that all m
perform f
anagers
our mana
gement fu
nctions

Managers Job

Management
Functions

Organizing

Henry Fayol a French

Industrialist wrote that all
managers perform four
management functions

Planning
Organizing
Leading
Controlling

Planning

Organizing
Leading
controlling

Determines what tasks

are to be done;
Who is to do them;
How the tasks are to be
grouped;
Who reports to whom;
and
Where decisions are to
be made.

Managers Job

Management
Functions

Henry Fayol a French

Industrialist wrote that all
managers perform four
management functions

Leading
Motivating employees;
Direct their activities;
Select the most effective

Planning
Organizing
Leading
Controlling

Planning
Organizing

Leading
controlling

communication channels;
or
Resolve conflicts among
members.

Managers Job

Management
Functions

Controlling

Henry Fayol a French

Industrialist wrote that all
managers perform four
management functions

Planning
Organizing

Leading
Controlling

Planning
Organizing

Leading

Controlling

Monitoring performance;
Comparing performance

with the set standard;

Making corrections, if
necessary.

Managerial Roles
Role: A set of behaviors or tasks a person is expected

to perform because of the position he or she holds in a

group or organization.

In 1960s, Mintzberg after studying 5 executives to

determine what those managers did on their jobs.

Mintzberg concluded that mangers perform 10 different,

highly interrelated roles or set of behaviors

attributable to their jobs.

ROLES OF A MANAGER
Mintzbergs Management Roles Approach
Interpersonal roles
Figurehead, leader, liaison

Informational roles
Monitor, disseminator, spokesperson

Decisional roles
Entrepreneur, disturbance handler, resource allocator,
negotiator

Mintzbergs Managerial Roles

Role
Description
Interpersonal

Figurehead

Symbolic head, required to perform a

number of routine duties of a legal or social nature

Leader

Responsible for the motivation & direction of

employees

Liaison

Maintains a network of outside contacts who

provide favors & information

Mintzbergs Managerial Roles

Role
Description
Informational
Monitor
as

Receives a wide variety of information; serves

nerve centre of internal & external information of
the organization

Disseminator
or

Transmits information received from outsiders

from other employees to members of the
organization

Spokesperson
Transmits information to outsiders on
organization's plans, policies, actions, & results;
serves as an expert on organizations industry

Mintzbergs Managerial Roles

Role
Decisional

Description

Entrepreneur
Searches organization & its environment for
opportunities & initiatives projects to bring
about change
Disturbance handler
Responsible for corrective action when
organization faces important, unexpected
disturbances
Resource allocator
Makes or approves significant organizational
decisions
Negotiator
Responsible for representing the organization at
major negotiation

Managerial Skills
Conceptual Skills:

The ability to analyze and

diagnose a situation and
distinguish between cause
and effect.
Human Skills:
The ability to understand,
work with, lead, and control
the behavior of other people
and groups.
Technical Skills:
Job-specific knowledge and
techniques.

Skills Needed at Different

Management Levels
Top
M anage rs

Conceptual
Sk ills

M iddle
M anage rs

Hum an
Skills
Technical
Skills

Low er-le vel

M anage rs
Im portance

Managing For Competitive Advantage

Cost
Competitiveness

Innovation

Competitive
Advantage

Quality
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Speed

Managing For Competitive

Advantage
Cost competitiveness

costs are kept low enough so that you can realize profits and price your

products at levels that are attractive to consumers

key is efficiency - accomplishing goals by using resources wisely and

minimizing waste

Quality

excellence of a product, including its attractiveness, lack of defects,

reliability, and long-term durability

importance of quality has increased dramatically

must identify specific elements of quality to correct problems, target

needs, and deliver world-class value

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Managing For Competitive Advantage (cont.)

Speed
often separates winners from losers in world competition
speed became a vital requirement in the 1990s

requirement has increased exponentially

Innovation
the introduction of new goods and services
important to adapt to changes in consumer demands and to

new sources of competition

Best managers and companies delivering all four

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