Basic Concepts in Management

Manager• Someone who coordinates and oversee

the work of other people so that organizational goal can be achieved

Levels of Management

There are three levels of management.

1. Top Management

2. Middle Management

3. Lower Management

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CEO

General MgrPlant Mgr

Regional Mgr

Office Manager Supervisor

Team Leader

3

Top Level Management

Middle Level Management

First-LineManagement

Continued…Top Management/ Managers Responsibilities :

• Making organization-wide decisions• Developing long range plans• Involve in selection of key personal• Consult subordinates on problems• Evaluate overall performance of the

organization .

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Middle Management/Managers All managers between first line and the top level of the organization.

• Setting objectives consistent with top management planning

• Monitoring and managing the performance of departments and managers who report to them.

• Implementing the changes generated by top managers

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• Makes plans of intermediate range• Prepare long range plans for review by top

management• Establishes departmental policies• Reviews daily and weekly reports• Counsels subordinates• Selection and recruitment of personal.

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First Line Management/ ManagersThey manage the work of non-managerial individuals who are directly involved with production and creation of the organization products.

They are responsible:• Managing the performance of entry-level employees.• Teaching entry-level employees

how to do their jobs• Making short range plans

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• Supervises day to day operation• Makes specific task assignments• Maintain close contacts with employees

Continued…Non-Managers • It is the workforce. • They are the individuals who are directly

involved with the production and creation of the organization’s products.

Key Management Skills

1. Technical SkillsThe knowledge and proficiency in a certain specialized field.

Chemical Pharmaceutical Engineering• these skills important for lower level

managers

Cont…….• Lower level managers directly managing

employees who are using tool and technology.

• Employees with good technical skills often get promoted to first line managers

Example… A manager may have technical skills in

accounting , finance and manufacturing

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2. Human SkillsThe ability to work well with other people both individually and in a group. How the work should be done by them and through them.

Managers with good human skills are able to get the best output of their people

Managers deal directly with people

Human skills are essential and important at all level of management

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Example… CommunicationMotivationLeadingEnthusiasmtrust

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3. Conceptual Skills

The ability to think and conceptualize abstract and complex situations.

• See the organization as a whole and understand the relationship among the sub units

• To Visualize something, means to make imaginations.

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Example… • Ability to use information to solve business

problem• Identification of opportunities• Recognizing problem areas and

implementing solutions

Levels of Management V/S

Managerial Skills

Human Skills Conceptual Skills Technical Skills

Top Management 40% 50% 10%

Middle Management 50% 25% 25%

Lower Management 50% 10% 40%

Manager roles These roles are divided into three categories: • Interpersonal (managing through people)

• informational (managing by information)

• Decisional (managing through action)

Manager roles

Interpersonal Roles: Interpersonal roles pertain to relationships with

others and are related to the human skilla. Figure Head: Representing company greeting visitors, signing legal documents

b. Leader: Inspire, motivate and couch

c. Liaison: The role of a bridge –department to department and company to company.

use e-mail, phone calls, meetings.

Continued… Informational Role

This role relates to receiving and transmitting information.

a) Monitor: Seek internal and external information about issues affecting organization.

Reading reports, maintain personal contacts.b) Disseminator: Transmit information internally. Send reports, make phone calls, Meetingsc) Spokesperson: Transmit information about the organization to outsiders. speeches, reports

Continued…Decisional RoleThis role involves making decisions ofsignificance which affect the organization. a. Entrepreneurship: • Initiate improvement projects; • The person who takes risk. • identify new ideas,• delegate idea responsibility to others.

Continued.

b. Disturbance Handler: • Takes corrective action when organization faces

important, unexpected result. • Take corrective action during disputes or crises;• Resolve conflicts among subordinates; • Adapt to environmental crises c. Resource allocator: Distribute resources such as time, equipment,

funding and human.

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d.Negotiator: • Representing the organization in major

negotiations (present your ideas and listen to others).

• Represent department during negotiation of union contracts, sales, purchases, budgets;

• Represent departmental interests

Managerial Competencies

1. Team-Work Competencies2. Communication Competencies 3. Planning Competencies4. Global Awareness Competencies5. Strategic Action Competencies 6. Self-Management Competencies

Organization as System

System: Is a set of interrelated parts operating as a whole in pursuit of common goals.

Major Components of an organization System1. Inputs: are the various human, material, financial

equipment, and informational resources required to produce goods and service.

2. Transformational Processes: Organization’s managerial and technological abilities used to convert inputs into outputs.

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3. Output: Products, services and other outcomes produced by the organization.

4. Feedback: Information about results and organizational status relative to the environment.

Open Versus Closed System

Open System: Continually interacts with its environment.

Closed System: Doing little or no interaction with its environment and receiving little or no feedback.