Chapter One

An Overview of Management

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Reflection
 Thinkof about any organization, to start and run the
organization some amount of money is needed,
some materials, may be few machines and some
men are required, and some processes are involved.
All these are considered the inputs for an
organization that result in output in terms of
products or services.
 However, with same amount of money, raw
materials, machines and men, and following the
same processes, the output may not be same for
two or more organizations.
 WHY DO YOU THINK IS THAT THE CASE?
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Defining Management

 Management is the process of coordinating all

resources through the five major functions of
planning, organizing, staffing, directing
/leading and controlling to achieve
organizational goals/desired objectives.
 That is, it is the process of achieving
organizational goals through engaging in the
five major functions of planning, organizing,
staffing, directing/leading and controlling.
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Defining Management… Cont’d

 Inthe above definition there are three key

concepts
Coordination of all resources
The five managerial functions
Objectives

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Definitions of Management…
Cont’d
 Management is the attainment of
organizational goals in an effective and
efficient manner through planning,
organizing, staffing, directing and controlling
organizational resources.
 the
art of getting things done through
people

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 Defining Management…Cont’d
 Thedefinitions of management
also concerns with:
 Efficiency
“Doing things right”
Getting the most output for
the least inputs
 Effectiveness
“Doing the right things”
Attaining organizational goals

1–6
Defining Management…Cont’d

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Managers
 Managers may be defined as those people who are
responsible for carrying out the major activities of
management: Planning, organizing, staffing, leading
(directing), and controlling.
 Managers are those persons in the position of
authority who make decisions to commit (use) their
resources and the resources of others towards the
achievement of organizational objectives.
 All managers in all organizations have similar and
basic responsibility: they help other members of the
organization and the organization itself set and
reach goals and objectives.
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Organization

 Organization can be defined as a group of two or

more people working together in structured fashion
to attain a set of goals.
 All organizations are social units deliberately
constructed and reconstructed to seek specific
goals.
 For most of their lives, people are members of one
organization or another: a church, a university, a
political organization, a local government, a
hospital, a business firm, the armed forces, etc.
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Functions of Management

 Regardless of the type of firm and the

organizational level, all managers
perform certain basic functions. These
managerial functions are Planning,
organizing, staffing, directing/leading/
and controlling.

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Planning

 PLANNING: is making decisions today about future

actions.
 It involves selecting vision, missions and objectives
and the actions to achieve them; it requires decision
making, that is, choosing future courses of action
from among alternatives.
 Planning implies that managers think through their
goals and actions in advance, that their actions are
based on some method, plan or logic rather than on
a hunch.
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Organizing

 ORGANIZING: is concerned with assembling the

resources necessary to achieve organizations’ objectives
and establishing the activity authority relationship.
 Planning has established the goals of the company and
how they are to be achieved; organizing develops the
structure to reach these goals.
 It is through organizing function that managers
determine how tasks can best be combined into specific
jobs, and how jobs can be grouped into various units that
make up the structure of the organization.
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Staffing
 STAFFING: As it has been pointed out, organizing involves
creating job positions with assigned duties and responsibilities.
 Staffing involves filling and keeping filled the positions in the
organization structure.
 It is concerned with locating prospective employees to fill the
jobs created by the organizing process. It basically deals with
inventorying the people available, announcing vacancies,
accepting, identifying the potential candidates for the job,
recruiting, selecting, placing, orienting, training and promoting
both candidates and existing employees.
 Staffing is concerned with human resource of the organization.

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Leading
 LEADING- is the process of directing, influencing, and
motivating employees to perform organizational tasks.
 Through the leading process managers get members
of the organization work together to promote the
interests of the organization.
 It is aimed at getting the members of an organization
move in the direction that will achieve its objectives.
 Leading/leadership is the heart and soul of
management. It involves influencing others to engage
in the work behavior necessary to reach organizational
goals
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Controlling

 CONTROLLING: is the process of ensuring the

efficient and effective accomplishment of
organizational goals.
 It is essential for determining how well an
organization is performing, whether improvement is
needed, where it should occur, how much is
needed, and how quickly.
 Controlling is the process through which mangers
assure that actual activities conform to planned
activities.
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 Levels of Management

Top Level Management • CEO

• GM

Middle Level Management • Plant Mgr

• Regional Mgr

• Office Manager
First-Line • Shift Supervisor
Management • Department Manager
• Team Leader 16
Top Managers
Responsible
Responsible for…
for…

••Setting
Setting overall
overall objectives
objectives
••creating
creating aa context
context for
for change
change
••Developing
Developing attitudes
attitudes of
of commitment
commitment
and
and ownership
ownership inin employees
employees
••Creating
Creating aa positive
positive organizational
organizational
culture
culture through
through language
language and
and action
action

••Monitoring
Monitoring their
their environments
environments
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Middle Managers
Responsible
Responsible for…
for…

Setting
Setting objectives
objectives consistent
consistent with
with top
top
management
management goals,
goals, planning
planning strategies
strategies

Coordinating
Coordinating and
and linking
linking groups,
groups,
departments,
departments, and
and divisions
divisions

Monitoring
Monitoring and
and managing
managing the
the performance
performance
of
of subunits
subunits and
and managers
managers who
who report
report to
to them
them

Implementing
Implementing the
the changes
changes or
or strategies
strategies
generated
generated by
by top
top managers
managers 18
First-Line Managers

Responsible
Responsible for…
for…

Managing
Managing the
the performance
performance of
of
entry-level
entry-level employees
employees

Teaching
Teaching entry-level
entry-level employees
employees
how
how to
to do
do their
their jobs
jobs

Making
Making schedules
schedules and
and operating
operating plans
plans based
based on
on
middle
middle management’s
management’s intermediate-range
intermediate-range plans
plans
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Managerial Skills

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Technical Skills

A persons’ knowledge and ability to make effective

use of any process or technique constitutes his
technical skills.
For eg: Engineer, accountant, data entry operator,
lawyer, doctor etc.

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Human Skills

An individuals’ ability to cooperate with other

members of the organization and work effectively in
teams.
For eg: Interpersonal relationships, solving people’s
problem and acceptance of other employees.

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Conceptual Skills

Ability of an individual to analyze complex situations

and to rationally process and interpret available
information.
For eg: Idea generation and analytical process of
information.

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Managerial Roles
1. Interpersonal roles:
 Figurehead-Ceremonial and symbolic role
 Leadership-leading organization in terms of
recruiting, motivating etc.
 Liaison-liaisoning with external bodies and
public relations activities

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Managerial…cont’d
2. Informational roles:
 Monitor-collecting information from
organizations, both from inside and outside of
the organization.
 Disseminator-communicating information to
organizational members
 Spokesperson-representing the organization to
outsiders
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Managerial…cont’d
3. Decisional roles:
 Entrepreneur-initiating new ideas to improve
organizational performance
 Disturbance handlers-taking corrective
action to cope with adverse situation
 Resource allocator-allocating human,
physical, and monetary resources
 Negotiator - negotiating with trade unions, or
any other stakeholders .
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Is Management a Science or an Art?

 Effective management is a blend of both

science and art.
 Science of Management
 Assumes that problems can be approached
using rational, logical, objective, and
systematic ways.
 Requires the use of technical, diagnostic,
and decision-making skills and techniques
to solve problems.

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Is Management a Science…
Cont’d
 Art of Management
 Decisions are made and problems solved using
a blend of intuition, experience, creativity,
instinct, and personal insights.
 Requires the use of conceptual,
communication, interpersonal, and time-
management skills to successfully accomplish
the tasks associated with managerial activities.
 The prudent manager is one who knows
when his or her practices are in realm of
certainty (science), or creativity (art).
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Universality Of Management

 Regardless of title, position, or management level, all managers do the

same job.
 They execute the five managerial functions and work through and with
others to set and achieve organizational goals.
 Managers are the same whether the organization is private or public,
profit making or non-profit making, manufacturing or service giving,
and industrial or small firms.
 Hence, management is universal for the following reasons.
 All managers perform the five managerial functions even if with different emphasis.
 Itis applicable for all human efforts; be it business, non-business, governmental, private. It is
useful from individual to institutional efforts.
 Management utilizes scientifically derived operational principles.
 All managers operate in organizations with specific objectives.
 Management, in all organizations, helps to achieve organizational objectives.
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