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 We are born in an organization (a family).

Live
in organizations (society) and work in
organizations (Business, Government, Army,
School, College etc.). .).
 Each one of these organizations is a group of

persons working together to achieve some


common objectives.

AMU, Department of Management,


2011.C Compiled By: BT. (MBA) 2
• The Classic Definition
– The art of getting things done through
people. /Mary Parker Follett/
• A Broader and better definition
– Management is a process consisting of planning,
organizing, actuating & controlling performed to
determine & accomplish the objectives by the use
of people and resources
/George R Terry/

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
•F.W. Taylor -“Art of knowing what to do, when to do and then

seeing that it is done in the best and cheapest way”.

•Henry Fayol –“To Manage is to forecast, to plan, to organize, to

command, to co-ordinate and to control”.

•Peter F. Drucker –”Management is work and as such it has its

own skills, its own tools and its own techniques”.

•Mary Parker Follet- “Management is the art of getting

things done through and with people”.


AMU, Department of Management,
2006 E.C Compiled By: Habtamu
M. (MBA) 4
 Working definition:
Management is the process of planning,
organizing, staffing, leading and controlling
the activities of an organization to achieve its
objectives.
From the view point of d/t authors , :
 (1) Management is a process.
 (2) Management is a discipline.
 (3) Management is a human activity.
 (4) Management is a career.

AMU, Department of Management,


2006 E.C Compiled By: Habtamu
M. (MBA) 5
Effectiveness
– Achieved when the organization pursues appropriate
goals.
– This means “doing the right things.”
Efficiency
– Achieved by using the fewest inputs (e.g., people
and money) to generate a given output.
– This means “doing things right.”
• The end result of effective and efficient
management is organizational success.

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
 An Organization
◦ A group of individuals who work together
toward common goals.
 What do all organizations have in common?
◦ They are composed of people whose efforts
must be coordinated if the organization is to
accomplish its goals.

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
COMMON CHARACTERISTICS OF
ORGANIZATIONS

 Have a distinct purpose (goal)


 Composed of people
 Have a deliberate structure

 Managers are the people who plan,


organize, lead, & control the activities
of the organization so that its goals
can be achieved.

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
 To meet the challenges &
complexities of business.
 It assures efficiency (utilizing

available resources).
 It creates teamwork & coordination

among employees.
 It directs & controls organizations to

achieve the desired goal


 It provides stability.

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
 It creates an environment of new ideas,
vision, & imagination for better and greater
performance.
 It serves as a guide in tackling business

problems.
 Is a tool of personality development of

people as to increase efficiency and


performance
 Is an agent of change & economic

development.

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
 Science
 Art
 •Empirically Derived
•Practical know how  Critically tested
•Technical skills  General principles
•Concrete results
 Cause and effectr/ship
•Creativity
•Personalized nature  Universal applicability

AMU, Department of Management,


2006 E.C Compiled By: Habtamu
M. (MBA) 12
UNIVERSALITY OF MANAGEMENT

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
WHAT DO MANAGERS DO?

Three categorization schemes:


 Management Functions
 Management Roles
 Management Skills

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
Process of Management

Planning
Choose Goals

Controlling Organizing
Monitor & measure Working together

Directing
Coordinate
Staffing
Employment
AMU, Department of Management,
2006 E.C Compiled By: Habtamu
M. (MBA) 15
1.3 function s of management

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
• Planning
 Planning means “the determination of what is to be done,
how and where it is to be done, who is to do it, and how the
results are to be evaluated.”
 It is pre-determined course of action
 Organizing : refers to the systematic arrangement of
different aspects of the business operations to achieve the
planned objectives.
 consists of grouping people and assigning activities so that
job tasks and the mission can be properly carried out.

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
- Involves selecting and placing the
right person at the right position.
- Managing positions of organizational
structure.
- Includes identifying the gap between
manpower required and available.

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
• Leadership
– The capacity to direct and motivate the members
of work groups toward the accomplishment of
organizational goals.
• Leadership Skills:
– Understanding individual/group behavior dynamics
– Having the ability to motivate employees
– Being an effective communicator
– Being able to envision future and share that vision

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
• Monitoring the performance of the
organization and its progress in
implementing strategic and
operational plans.
• It includes:
- what is required to achieve goals
- measuring what actually
happened and or is being done.
– Identifying deviations between
planned and actual results.
– Taking corrective action
– Ensuring that the organization is
moving toward the achievement of
its goals.

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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
 A profession may be defined as an occupation
that requires specialized knowledge and
intensive academic preparations :
 Specialized Knowledge
 Formal Education & Training
 Social Obligations
 Code of Conduct
 Representative Association

AMU, Department of Management,


2006 E.C Compiled By: Habtamu
M. (MBA) 21
1.4 MANAGERIAL LEVELS
(The Management Hierarchy)

AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)


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3
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AMU, Department of Management, 2014 Compiled By: Habtamu M. (MBA)
AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA) 24
First line managers
Eg. production supervisor. The
objective is to ensure that the products and
services of their organizations are delivered
to customers on a day-to day basis.

AMU, Department of Management,


2006 E.C Compiled By: Habtamu
M. (MBA) 25
Main functions are
Plan daily and weekly activities and
accomplish them based on monthly,
quarterly and annual plan.
Assigning employees to specific jobs
Issue instructions at the workplace
Follow up, motivate and evaluate
workers
Send reports to their concerning body
Keep a watch on workers performance
Evaluate and make close contact with
workers
AMU, Department of Management,
2006 E.C Compiled By: Habtamu
M. (MBA) 26
 Middle managers (linking groups)
Eg. Department head. They perform as a
linkages between top managers and first line
managers. The objective is to allocate
resource effectively and manage the first line
managers who supervise the work group so
that the overall goals of the organization can
be achieved.

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
 Main functions are
◦ Acting as an intermediary between top and
operational level of management.
◦ Translating long term plans in to medium range
plans.
◦ Developing specific targets (in their area of
responsibility).
◦ develop specific schedule (to guide action and
facilitate control)
◦ coordinate inputs, productivity and outputs of
operating levels of management

AMU, Department of Management,


2006 E.C Compiled By: Habtamu
M. (MBA) 28
 Top level managers (an eye on the outside)
eg. CEO, CFO. They provide strategic
direction for the organization.
 Have the ability to think, analyze causes,
effects and consequences.

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
Main functions are
Create organization’s goals, overall strategies
and operating policies.
Officially represent the organization to the
external environment/ parties by meeting with
government officials, executives of other
organizations, and so forth.
Providing effective organizational structure that
insures integration.
Providing overall leadership and direction.
Making overall control of the organization.
Analyzing changes in the external environment
and respond to it.
make decisions about such activities:
AMU, Department of Management,
2006 E.C Compiled By: Habtamu
M. (MBA) 30
• Role is the basic behavior that is expected in a
particular situation.
• The work of Henry Mintzberg is widely used to

explain the roles that managers typically


perform.
• There are three categories of roles that have

been found:
1. Interpersonal roles
2. Informational roles
3. Decisional roles.

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
 Interpersonal Roles
◦ The manager’s responsibility for managing
relationships with organizational members and
other constituents:

1. Figurehead (perform certain duties that are


primarily ceremonial in nature,

2. e.g. The supervisor who attends the wedding of


the mechanic operator.

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
2. Leader (they work with and through their employees
to ensure that the organization’s goal are met).

3. Liaison (they coordinate the activities between


individuals and work groups within the organization
and develop favorable relationship with outside
organization, e.g social responsibility)

 It helps to seek support from people who can affect


the organization’s success.

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
 Informational Roles
– The manager’s responsibility for gathering and
disseminating information to the stakeholders
of the organization (communication center and
source)
1. Monitor (managers continually scan the
internal and external environments of their
organizations for useful information –
opportunities and threats)

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
2. Disseminator (managers share and distribute the
information so that the employees can perform their
work)

3. Spokesperson (managers must often communicate


information to individual outside their units and
their organization).

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
 Decisional Roles
◦ The manager’s responsibility for processing
information and reaching conclusions:

1. Entrepreneur (managers initiates projects that capitalizes


on opportunities that have been identified)

2. Disturbance handler (they must cope with conflict and


handle disturbances)

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
3. Resource allocator (managers determine which projects
will receive organizational resources)

4. Negotiator (managers spend a good portion of their time


negotiating with employees, suppliers and others.

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
• Technical Skills
– The ability to utilize the knowledge of tools,
techniques, and procedures that are specific to a
particular field.
• Human Skills
– The ability to work effectively with one’s own work
group as well as others within the organization.
• Conceptual Skills
– The ability to process information about the
internal/external environment of the organization
and determine its implications.

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
 Technical skills tend to be most
important for first line managers.
 Human skills are most important for
middle managers because these
managers must coordinate the efforts
of members of one’s work group as
well as coordinate with other work
group within the organization.
 The top level managers need to have
strong conceptual skills if they are to
effectively accomplish their jobs.

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
Good Manager Not-so-good Manager
Technical
 Professional,  Lack of Knowledge
 Goodwill, willing to  Not Organized
share his knowledge  Difficult to find,
Human always not in the
 Good coordinator office
 Gain People’s support

 Talking but not
Charming working
 Friendly

 Highly paid
Nice  Not presentable
Conceptual
 Ability to think
 Careless
 Logical
 Not communicate
 Fast mover with Team members
 Chance/ Risk Taker
 Not care about group
members

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)
 Is Management an art, Science, or profession?
Explain each with relevant examples.

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AMU, Department of Management, 2006 E.C Compiled By: Habtamu M. (MBA)

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