What is an Organization?

• An Organization Defined– A deliberate arrangement of people to

accomplish some specific purpose

• Common Characteristics of Organizations– Have a distinct purpose (goal)– Composed of people– Have a deliberate structure

Types of Organizations

• Formal• Informal

• Government• Companies• NGOs• Philanthropic• Religious

Why study organizations and management?

• Living in present

• Building the future

• Remembering the past

Why Study Management?

• The Value of Studying Management– The universality of management

• Good management is needed in all organizations.

– The reality of work• Employees either manage or are managed.

– Rewards and challenges of being a manager• Management offers challenging, exciting and creative

opportunities for meaningful and fulfilling work.• Successful managers receive significant monetary

rewards for their efforts.

OrganogramChairman and MD

Vice Presidents (HR, MKT, PROD, PLLANIING, FINANCE)

General Managers

Functional Heads

Asst Managers

Executives

Officers (Supervisors)

Technicians and workers

TATA SPONGE IRON LIMITED

Tata Steel

Management as a specialty in time and human relationships

• Time:• Management is an attempt to create a

desirable future, keeping the past and the present in mind

• Management is practiced in and is a reflection of a particular historical era

• Management is a practice that produces consequences and effects that emerge overtime.

Who is a manager?

– Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.

Classifying Managers• First-line Managers

– Are at the lowest level of management and manage the work of non-managerial employees.Eg. Clerical supervisor, Foreman, Technical supervisor

• Middle Managers– Manage the work of first-line managers. Functional

heads, Asst. Managers etc.• Top Managers

– Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.

– Executives, Chief executive officer, President and Vice-President

Functional and General Managers

• A function is a collection of similar activities• For eg HR – recruitment, promotion, transfer,

termination etc.• Functional Managers: is responsible for only one

function area such as production, marketing, or finance

• General manages: He oversees a complex unit such as company etc. Is responsible for all the activities of that unit s production, marketing, HR etc

Management level and skills

• Technical skills – ability to use the procedures, techniques and knowledge of a specialized field eg. Surgeons, engineers musicians etc

• Human skills – ability to work with, understand, and motivate other people as individuals or in groups.

• Conceptual skills – ability to coordinate and integrate all of an organization’s interests and activities.

Importance of Human relationships

• Managers act in relationships that are two-way streets; each party is influenced by the other – colleagues, subordinates

• Managers act in relationships that have spillover effects for other people, for better and for worse

• Managers juggle multiple simultaneous relationships

What Do Managers Do?

• Management Roles Approach

• Interpersonal roles• Figurehead, leader, liaison

Informational roles• Monitor, disseminator, spokesperson

– Decisional roles• Disturbance handler, resource allocator,

negotiator

General Skills for Managers• Conceptual skills

– A manager’s mental ability to coordinate all of the organization’s interests and activities

• Interpersonal skills– A manager’s ability to work with, understand, mentor, and

motivate others, both individually and in groups

• Technical skills– A manager’s ability to use the tools, procedures, and

techniques of a specialized field

• Political skills– A manager’s ability to build a power base and establish the

right connections

Specific Skills for Managers

• Behaviors related to a manager’s effectiveness:

– Controlling the organization’s environment and its resources.

– Organizing and coordinating.

– Handling information.

– Providing for growth and development.

– Motivating employees and handling conflicts.

– Strategic problem solving.

How The Manager’s Job Is Changing

• The Increasing Importance of Customers– Customers: the reason that organizations exist

• Managing customer relationships is the responsibility of all managers and employees.

• Consistent high quality customer service is essential for survival.

• Innovation– Doing things differently, exploring new territory, and

taking risks• Managers should encourage employees to be aware of

and act on opportunities for innovation.

What Is Management?

• Managerial Concerns– Efficiency

• “Doing things right”– Getting the most output

for the least inputs

– Effectiveness• “Doing the right things”

– Attaining organizational goals

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of Managementof Management

PlanningPlanningPlanningPlanningControllingControllingControllingControlling

LeadingLeadingLeadingLeading OrganizingOrganizingOrganizingOrganizing

The management process• Planning

– A primary functional managerial activity that involves:• Defining the organization’s goals• Establishing an overall strategy for achieving those goals• Developing a comprehensive set of plans to integrate and

coordinate organizational work.

• Purposes of Planning– Provides direction– Reduces uncertainty– Minimizes waste and redundancy– Sets the standards for controlling

Planning (Cont)• Plans are guides by which • 1) the organization obtains and commits the resources

required to reach its objectives• 2) members of the organization carry on activities

consistent with the chosen objectives and procedures• 3) progress toward the objectives is monitored and

measure so that the corrective action can be taken if progress is unsatisfactory

– Types of planning• Strategic Plans (What business to do?)

– Apply to the entire organization.– Establish the organization’s overall goals.– Seek to position the organization in terms of its environment.– Cover extended periods of time.

Planning (Cont)• Operational Plans (Where to establish the plant?)

– Specify the details of how the overall goals are to be achieved.

– Cover short time period

• Long-Term Plans (What new products can be added?)– Plans with time frames extending beyond three years

• Short-Term Plans

Plans with time frames on one year or less• Specific Plans (Level of quality)• Plans that are clearly defined and leave no room

for interpretation

Planning (Cont)

• Directional Plans (How to market the product?)– Flexible plans that set out general guidelines, provide

focus, yet allow discretion in implementation.

• Single-Use Plan (How to tackle an accident)– A one-time plan specifically designed to meet the

need of a unique situation.

• Standing Plans (How to maintain the inventory?)– Ongoing plans that provide guidance for activities

performed repeatedly.

Management Processes

• Organizing– Includes determining

what tasks 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

Management Processes (cont’d)

• Leading– Includes motivating employees, directing the

activities of others, selecting the most effective communication channel, and resolving conflicts

• Controlling– The process of monitoring performance,

comparing it with goals, and correcting any significant deviations