MB0038-Unit-01-Management Process Unit-01-Management Process

Structure

1.1 Introduction

Learning Objectives

1.2 Definition and Concept Management

1.3 Characteristics of Management

1.4 Management Functions

Planning

Organizing

Leading

Controlling

1.5 Management Roles and Skills

1.6 Effective vs. Successful Managerial Activities

1.7 Summary

1.8 Terminal Questions

1.9 Answers

1.1 Introduction

Management is a global need. It is essential to every individual, a family, educational institution, hospital, religious organizations, team of players, a government, military systems, cultural body, urban centers and business enterprises. Everyone comes across some or the other management functions in their day to day pursuits. Whenever, there is an organized group of people working towards a common goal, some type of management is needed. A business enterprise must be directed and controlled by a group of people to achieve its goals. The resources of money, manpower, material and technology will be waste unless they are out to work in a co-ordinated manner. It is the ‘management’ which uses the available resources in such a manner that a business enterprise is able to earn ‘surplus’ to meet the needs of growth and expansion.

Management is required to plan, organize, co-ordinate and control the affairs of a business concern. It brings together all resources and motivates people to achieve the objectives of a business enterprise.

An effective and efficient manager therefore, should focus on two key results. The first is task performance–the quality and quantity of the work produced or the services provided by the work unit as a whole. The second is human issues–how people feel about their work and the work setting, their relationships with each other, attitude and values. An understanding of the basis management functions helps in comprehending the key roles managers need to play to run organizations effectively.

Learning objectives

After studying this unit you should be able to:

1. Explain the definitions and concept of management.

2. Identify the characteristics of management

3. Discuss the functions of management.

4. Describe the roles and skills of managers.

1.2 Definition and Concept of Management

Management may be defined in many different ways. Many eminent authors on the subject have defined the term “management”. Some of these definitions are:

According to Lawerence A. Appley – “Management is the development of people and not the direction of things.”(1959)

In the words of Henry Fayol – “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.”(1949)

According to Peter F. Drucker – “Management is a multi-purpose organ that manages a business and managers and manages worker and work”.(1970)

In the words of Koontz and O’Donnel – “Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals”. (1972)

According to Newman, Summer and Warren – “The job of management is to make co-operative endeavor to function properly. A Manager is one who gets things done by working with people and other resources.”(1959)

From the definitions quoted above, it is clear that “management” is a technique of extracting work from others in an integrated and co-ordinated manner for realizing the specific objectives through productive use of different resources. Mobilizing the physical, human and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be referred to as “management”.

Concepts of Management:

In the words of George R. Terry – “Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources.”(1953)

Management as a Process: It involves a series of interrelated functions of getting the objectives of an organization and taking steps to achieve that objective. The management process includes: planning, organizing, staffing, directing, controlling, deciding and evaluating. The process involves different implications like:

1. Social Process: Interaction with people to achieve the goal.

2. Integrated Process: Management bring human, physical, financial resources together to put into effect. It integrates human efforts to maintain harmony among them.

3. Continuous Process: It is a continuous process of identifying and solving problems till the goal is achieved.

4. Interactive Process: It requires interaction with internal and external factors.

Self Assessment Questions

1. “Management is the development of people and not the direction of things.”This definition is given by ___________

2. “Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources.”.This definition was given by Terry in _________.

1.3 Characteristics of Management

Management is a distinct activity having the following salient features or characteristics:

1. Goal-oriented: Management is a purposeful activity. It co-ordinates the efforts of employees to achieve the goals of the organization. The success of management is measured by the extent to which the organizational goals are achieved. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels.

2. Economic Resource: Management is one of the factors of production together with land, labour and capital. It is the most critical input in the success of any organized group activity. It is the force which assembles and integrates other resources, namely, labour, capital and materials. These factors do not by themselves ensure production, they require the catalyst of management to produce goods and services required by the society. Thus, management is an essential ingredient of an organization.

3. Distinct Process: Management is a distinct process consisting of such functions as planning, organizing, staffing, directing and controlling. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. In essence, the process of management involves decision-making and putting of decisions into practice.

4. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. All these resources are made available to those who manage. Managers apply knowledge, experience and management principles for getting the results from the workers by the use of non-human resources. Managers also seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization.

5. Intangible Force: Management has been called an unseen force. Its presence is evidenced by the result of its efforts-orderliness, informed employees, buoyant spirit and adequate work output. Thus, feeling of management is result-oriented. One may not see with the naked eyes the functioning of management but its results are apparently known. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results, although they can’t observe it during operation.

6. Results through Others: The managers cannot do everything themselves. They must have the necessary ability and skills to get work accomplished through the efforts of others. They must motivate the subordinates for the accomplishment of the tasks assigned to them.

7. A Science and an Art: Management has an organized body of knowledge consisting of well-defined concepts, principles and techniques which have wide applications. So it is treated as a science. The application of these concepts, principles and techniques requires specialized knowledge and skills on the part of the manager. Since the skills acquired by a manager are his personal possession, management is viewed as an art.

8. System of Authority: Management as a team of managers represents a system of authority, a hierarchy of command and control. Managers at different levels possess varying degrees of authority. Generally, as we move down in the managerial hierarchy, the degree of authority gets gradually reduced. Authority enables the managers to perform their functions effectively.

9. Multi-disciplinary Subject: Management has grown as a field of study (i.e. discipline) taking the help of so many other disciplines such as Engineering,

Anthropology, Sociology and Psychology. Much of the management literature is the result of association of these disciplines. For instance, productivity orientation drew its inspiration from Industrial Engineering and human relations orientation from Psychology. Similarly, Sociology and Operations Research have also contributed to the development of management science.

10. Universal Application: Management is universal in character. The principles and techniques of management are equally applicable in the fields of business, education, military, government and hospital. Henri Fayol suggested that principles of management would apply more or less in every situation. The principles are working guidelines which are flexible and capable of adaptation to every organization where the efforts of human beings are to be co-ordinated.

Self Assessment Questions

3. _______________ is one of the factors of production together with land, labour and capital.

4. Management is a ________ consisting of such functions as planning, organizing, staffing, directing and controlling.

1.4 Management Functions

Follett (1933) defined management as "the art of getting things done through people". One can also think of management functionally, as the action of measuring a quantity on a regular basis and of adjusting some initial plan.

Management functions are as follows (Fayol, 1949):

1. Planning

2. Organizing

3. Commanding

4. Coordinating

5. Controlling

However, in recent time, management functions have been regrouped into four categories, since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to a certain extend. The four functions are as follows:

Fig. 1.1: Management Functions

1. Planning

2. Organizing

3. Leading

4. Controlling

1.4.1 Planning

It involves the process of defining goals, establishing strategies for achieving these goals, and developing plans to integrate and coordinate activities. Every organization needs to plan for change in order to reach its set goal. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. It provides the direction for the other functions of management and for effective teamwork. Planning also enhances the decision-making process. All levels of management engage in planning in their own way for achieving their preset goals.

Planning in order to be useful must be linked to the strategic intent of an organization. Therefore, planning is often referred to as strategic in nature and also termed as strategic planning.

Strategic Planning: Top level managers engage chiefly in strategic planning or long range planning Strategic planning is the process of developing and analyzing the organization’s mission, overall goals, general strategies, and allocating resources.

The tasks of the strategic planning process include the following steps:

1. Define the mission:

A mission is the purpose of the organization. Thus, planning begins with clearly defining the mission of the organization. The mission statement is broad, deconcise, summarizing what the organization does. A mission statement should be short – and should be easily understood and every employee should ideally be able to narrate it from memory. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization’s potential. The mission statement may be accompanied by

an overarching statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management.

2. Conduct a situational or SWOT analysis

The SWOT Analysis is one of several strategic planning tools that are utilized by businesses and other organizations to ensure that there is a clear objective defined for the project or venture, and that all factors related to the effort, both positive and negative, are identified and addressed. In order to accomplish this task, the process of SWOT involves four areas of consideration: strengths, weaknesses, opportunities, and threats. It should be noted that when identifying and classifying relevant factors, the focus is not just on internal matters, but also external components that could impact the success of the project. (SWOT is discussed in detail in Exhibit 1.1)

3. Set goals and objectives

Strategic goals and objectives are developed to fill the gap between current capability and the mission. They are aligned with the mission and form the basis for the action plans of an organization. Objectives are also called performance goals. Generally, organizations have long-term objectives for factors such as, return on investment, earnings per share, etc. It also helps in setting minimum acceptable standards or common-sense minimums.

Develop related strategies (tactical and operational)

Tactical plans are based on the organization’s strategic plan. In turn, operational plans are based on the organization’s tactical plans. These are specific plans that are needed for each task or supportive activity comprising the whole. Strategic, tactical, and operational planning must be accompanied by controls to ensure proper implantation of the plans, necessary to maintain competitive advantage in the said market.

Monitor the plan

A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. To develop an environmental monitoring procedure, short-term standards for key variables that will tend to validate and support the long-range estimates must be established. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. This review is used for the next planning cycle and review.

1.4.2 Organizing

It involves designing, structuring, and coordinating the work components to achieve organizational goal. It is the process of determining what tasks are to be done, who is to do, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. Organizations are groups of people, with ideas

and resources, working toward common goals. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and coordinated. Formalization is an important aspect of structure. It is the extent to which the units of the organization are explicitly defined and its policies, procedures, and goals are clearly stated. It is the official organizational structure conceived and built by top management. The formal organization can be seen and represented in chart form. An organization chart displays the organizational structure and shows job titles, lines of authority, and relationships between departments.

The steps in the organizing process include:

1. Review plans

2. List all tasks to be accomplished

3. Divide tasks into groups one person can accomplish – a job

4. Group related jobs together in a logical and efficient manner

5. Assign work to individuals

6. Delegate authority to establish relationships between jobs and groups of jobs.

1.4.3 Leading

An organization has the greatest chance of being successful when all of the employees work toward achieving its goals. Since leadership involves the exercise of influence by one person over others, the quality of leadership exhibited by supervisors is a critical determinant of organizational success.

Supervisors can learn about leadership through research. Leadership studies can be classified as trait, behavioral, contingency, and transformational. Earliest theories assumed that the primary source of leadership effectiveness lay in the personal traits of the leaders themselves. Yet, traits alone cannot explain leadership effectiveness. Thus, later research focused on what the leader actually did when dealing with employees. These behavioral theories of leadership sought to explain the relationship between what the leader did and how the employees reacted, both emotionally and behaviorally. Yet, behavior can’t always account for leadership in different situations. Thus, contingency theories of leadership studied leadership style in different environments. Transactional leaders, such as those identified in contingency theories, clarify role and task requirements for employees. Yet, contingency can’t account for the inspiration and innovation that leaders need to compete in today’s global marketplace. Newer transformational leadership studies have shown that leaders, who are charismatic and visionary, can inspire followers to transcend their own self-interest for the good of the organization.

Leading involves the following functions:

1. Teambuilding

Rigid department boundaries and fixed teams are giving way to ad hoc squads whose membership changes with every project. Flexible networks of team-based structures are occurring within and between companies, as well as across national borders. Competitive arenas require quick decisions by knowledgeable employees who work close to the source of problems. Teams enable knowledge-based and innovative decision making. This collaboration is a revolution in the workplace.

2. Consensus Building

Top performance demands the joint effort of many people, working together toward a common goal. When an individual works together with others, effectiveness grows, creating greater productivity for all involved. Together, employees can do more than the collective efforts of each individual working alone.

3. Selecting

Selecting competent, high-performing employees capable of sustaining their performance over the long run is a competitive advantage. The selection process consists of forecasting employment needs, recruiting candidates, interviewing applicants, and hiring employees.

4. Training

After employees are selected, they enter an orientation program to be formally introduced to their jobs. Orientation sets a tone for new employees’ work by describing job-related expectations and reporting relationships. Employees are informed about benefits, policies, and procedures. Specific duties and responsibilities and performance evaluation are clarified. During orientation, the supervisor has the opportunity to resolve any unrealistic expectations held by the employee. Training refers to improving an employee’s knowledge, skills, and attitudes so that he or she can do the job. All new employees (or current employees in new jobs) should be trained. Cross training prepares an employee for a job normally handled by someone else. Also, training is advisable when new processes, equipment or procedures are introduced into the workplace.

Training starts with an organization analysis. By focusing on strategy and examining sales forecasts and expected changes in production, distribution and support systems, employers can determine which skills will be needed and to what degree. A comparison with current skill levels is used to estimate staff and training needs. Task analysis identifies the elements of current or future tasks to be done. Personal needs analysis involves asking employees and managers, either in an interview or in a self-administered questionnaire, to analyze their training needs. In general, agreement between managers

and employees tends to be low, so it is important that both parties agree to decisions about the training of employees.

1.4.4 Controlling

It involves monitoring the employees’ behavior and organizational processes and take necessary actions to improve them, if needed. Control is the process through which standards for performance of people and processes are set, communicated, and applied. Effective control systems use mechanisms to monitor activities and take corrective action, if necessary.

There are four steps in the control process. They are as follows:

Step 1. Establish Performance Standards. Standards are created when objectives are set during the planning process. A standard is any guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time. Tolerance is permissible deviation from the standard.

Step 2. Measure Actual Performance. Supervisors collect data to measure actual performance to determine variation from standard. Written data might include time cards, production tallies, inspection reports, and sales tickets. Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage, and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback. Computers give supervisors direct access to real time, unaltered data, and information. On line systems enable supervisors to identify problems as they occur. Database programs allow supervisors to query, spend less time gathering facts, and be less dependent on other people.

Step 3. Compare Measured Performance Against Established Standards. Comparing results with standards determines variation. Some variation can be expected in all activities and the range of variation – the acceptable variance – has to be established. Management by exception lets operations continue as long as they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the supervisor to a problem.

Step 4. Take Corrective Action. The supervisor must find the cause of deviation from standard. Then, he or she takes action to remove or minimize the cause. If the source of variation in work performance is from a deficit in activity, then a supervisor can take immediate corrective action and get performance back on track.

Types of Control

Controls are most effective when they are applied at key places. Supervisors can implement controls before the process begins (feed forward), during the process (concurrent), or after it ceases (feedback).

Feed forward controls focus on operations before they begin. Their goal is to prevent anticipated problems. An example of feed forward control is scheduled maintenance on automobiles and machinery.

Concurrent controls apply to processes as they are happening. Concurrent controls enacted while work is being performed include any type of steering or guiding mechanism such as direct supervision, automated systems (such as computers programmed to inform the user when they have issued the wrong command), and organizational quality programs.

Feedback controls focus on the results of operations. They guide future planning, inputs, and process designs. Examples of feedback controls include timely (weekly, monthly, quarterly, annual) reports so that almost instantaneous adjustments can be made.

Fig. 1.2: SWOT

Exhibit 1.1 SWOT

SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It a applicable to either the corporate level or the business unit level and frequently appears in marketing plans. SWOT (sometimes referred to as TOWS) stands for Strengths, Weaknesses, Opportunities, and Threats. The SWOT framework was described in the late 1960’s by Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews, and William D.Guth in Business policy, text and cases (Homewood, IL: Irwin, 1969).It was majorly developed by Kenneth Andrews.

Strengths: company’s capabilities and resources that allow it to engage in activities to generate economic value and perhaps competitive advantage. A company’s strengths may be in its ability to create unique products, to provide high-level customer service, or to have a presence in multiple

retail markets.

Weaknesses: lack of resources or capabilities that can prevent it from generating economic value or gaining a competitive advantage if used to enact the company’s strategy. There are many examples of organizational weaknesses.

For example, a firm may have a large, bureaucratic structure that limits its ability to compete with smaller, more dynamic companies. Another weakness may occur if a company has higher labor costs than a competitor who can have similar productivity from a lower labor cost.

Opportunities: They provide the organization with a chance to improve its performance and its competitive advantage. Opportunities may arise when there are niches for new products or services, or when these products and services can be offered at different times and in different locations. For instance, the increased use of the Internet has provided numerous opportunities for companies to expand their product sales.

Threats: They can be an individual, group, or organization outside the company that aims to reduce the level of the company’s performance. Every company faces threats in its environment. Often the more successful companies have stronger threats, because there is a desire on the part of other companies to take some of that success for their own. Threats may come from new products or services from other companies that aim to take away a company’s competitive advantage. Threats may also come from government regulation or even consumer groups.

Source: http://putra-design.blogspot.com/2009/03/swot-analysis.html

Important questions for SWOT

For assessing strengths:

1. What makes the organization distinctive?

2. How efficient is our manufacturing?

3. How skilled is our workforce?

4. What is our market share?

5. What financing is available?

6. Do we have a superior reputation?

For assessing the weaknesses:

1. What are the vulnerable areas of the organization that could be exploited?

2. Are the facilities outdated?

3. Is research and development adequate?

4. Are the technologies obsolete?

For identifying opportunities

1. In which areas is the competition not meeting customer needs?

2. What are the possible new markets?

3. What is the strength of the economy?

4. Are our rivals weak?

5. What are the emerging technologies?

6. Is there a possibility of growth of existing market?

Identifying threats involves the following:

1. In which areas does the competition meet customer needs more effectively?

2. Are there new competitors?

3. Is there a shortage of resources?

4. Are market tastes changing?

5. What are the new regulations?

6. What substitute products exist? Activity 1

“Super speed” is an automobile company. It has completed its 10 years. The company is using the same technology and has not made only slight improvements in the models. The fuel consumption is much and it offers only four color, they have a very good network of service centers and spare parts are early available. The maintenance cost is very low. The company is now facing huge competition from upcoming brands which are speaks looking and good on mileage so save fuel. They are available in trendy color as well. But since these brands we laurelled in past three years they do not have good network of service centers. As the technology is imported, so the spare parts are also quite costly. Super speed has good tie-ups with banks which provide low interest finances to the customers. Since it’s a national brand the taxes to be paid by customer are also quite low and it makes super speed vehicles to be quite affordable.

Conduct the SWOT analysis of super speed automobile company.

Self Assessment Questions

5. In recent time, management functions have been regrouped into ____________ categories.

6. Training starts with an ___________________ analysis.

1.5 Management Roles and Skills

1.5.1 Managerial Roles

According to Mintzberg (1973), managerial roles are as follows:

1. Informational roles

2. Decisional roles

3. Interpersonal roles

1. Informational roles: This involves the role of assimilating and disseminating information as and when required. Following are the main sub-roles, which managers often perform:

a. Monitor – collecting information from organizations, both from inside and outside of the organization

b. Disseminator – communicating information to organizational members

c. Spokesperson – representing the organization to outsiders

2. Decisional roles: It involves decision making. Again, this role can be sub-divided in to the following:

a. Entrepreneur – initiating new ideas to improve organizational performance

b. Disturbance handlers – taking corrective action to cope with adverse situation

c. Resource allocators – allocating human, physical, and monetary resources

d. Negotiator – negotiating with trade unions, or any other stakeholders

3. Inter`personal roles: This role involves activities with people working in the organization. This is supportive role for informational and decisional roles. Interpersonal roles can be categorized under three sub-headings:

a. Figurehead – Ceremonial and symbolic role

b. Leadership – leading organization in terms of recruiting, motivating etc.

c. Liaison – liasoning with external bodies and public relations activities.

Table 1.1: Mintzberg’s Managerial Roles[1]

Role Description Identifiable Activities

Interpersonal   

Figurehead Symbolic head; obliged to perform a number of routine duties of a legal or social nature.

Greeting visitors; signing legal documents.

Leader Responsible for the motivation and activation of subordinates; responsible for staffing, training, and associated duties.

Performing virtually all activities that involve subordinates.

Liaison Maintains self-developed network of outside contacts and informers who provide favors and information.

Acknowledging mail; doing external board work; performing other activities that involve outsiders.

Informational   

Monitor Seeks and receives wide variety of special information (much of it current) to develop thorough understanding of organization and environment; emerges as nerve center of internal and external information about the organization.

Reading periodicals and reports; maintaining personal contacts.

Disseminator Transmits information received from outsides or from other subordinates to members of the organization – some information is factual, some involves interpretation and integration of diverse value positions of organizational influencers.

Holding informational meetings; making phone calls to relay information.

Spokesperson Transmits information to outsiders on organization’s plans, policies, actions, results, etc.; serves as expert on organization’s industry.

Holding board meetings; giving information of the media.

Decisional   

Entrepreneur Searches organization and its environment for opportunities and initiates “improvement projects” to bring about change; supervises design of certain projects as well.

Organizing strategy and review sessions to develop new programs.

Disturbance handler

Responsible for corrective action when organization faces important, unexpected disturbances

Organizing strategy and review sessions that involve disturbances and crises

Resource allocator

Responsible for the allocation of organizational resources of all kinds – in effect, the making or approval of all significant

Scheduling; requesting authorization; performing any activity that involves budgeting and the

organizational decisions. programming of subordinates work.

Negotiator Responsible for representing the organization at major negotiations.

Participating in union contract negotiations.

1.5.2 Management Skills

Katz (1974) has identified three essential management skills: technical, human, and conceptual.

Technical skills: The ability is to apply specialized knowledge or expertise. All jobs require some specialized expertise, and many people develop their technical skills on the job. Vocational and on-the-job training programs can be used to develop this type of skill.

Human Skill: This is the ability to work with, understand and motivate other people (both individually and a group). This requires sensitivity towards others issues and concerns. People, who are proficient in technical skill, but not with interpersonal skills, may face difficulty to manage their subordinates. To acquire the Human Skill, it is pertinent to recognize the feelings and sentiments of others, ability to motivate others even in adverse situation, and communicate own feelings to others in a positive and inspiring way.

Conceptual Skill: This is an ability to critically analyze, diagnose a situation and forward a feasible solution. It requires creative thinking, generating options and choosing the best available option.

Self Assessment Questions

7. Ceremonial and symbolic role of a manager is called __________________.

8. Vocational and on-the-job training programs can be used to develop _______________ skill.

1.6 Effective vs. Successful Managerial Activities

Luthans (1988), on the basis of his study, found that all managers engage in four managerial activities.

1. Traditional management – This activity consists of planning, decision making, and controlling. The average manager spent 32 percent of his or her time performing this activity, whereas successful managers spend 13% and effective managers spend 13% of their time in this activity.

2. Communication – This activity consists of exchanging routine information and processing paperwork. The average manager spent 29 percent of his or her time performing this activity while successful manager spends 28% and effective managers spend 44% of their time in this activity.

3. Human resource management – This activity consists of motivating, disciplining, managing conflict, staffing, and training. The average manager spent 20 percent of his or her time performing this activity, while successful manager spends 11% and effective managers spend 26% of their time in this activity.

4. Networking – This activity involves socializing, politicking, and interacting with outsiders. The average manager spent 19 percent of his or her time performing this activity, while successful manager spends 48% and successful manages spend 11% of their time in this activity.

It was found that successful managers spent more time and effort in socializing, interacting and networking. They did not spend much time to the traditional management activities or to the human resource management activities (Luthans, 1988).

Self Assessment Questions

9. The average manager spent __________ percent of his or her time performing traditional management.

10. Effective managers spend __________ percent of their time in human resource management.

1.7 Summary

Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within an organization, then applies that knowledge to make organizations work more effectively (Robbins, 2003). An effective and efficient manager should focus on two key results. Management functions have been grouped into four categories: planning, organizing, leading and controlling.

The characteristics of management are goal oriented. Economic resource, distinct process, integrative force, intangible force, a science and an art, results through others, system of authority and multidisciplinary subject.

Planning involves the process of defining goals, establishing strategies for achieving these goals, and developing plans to integrate and coordinate activities. All levels of management engage in planning in their own way for achieving their preset goals. Organizing involves designing, structuring, and coordinating the work components to achieve organizational goal. It is the process of determining what tasks are to be done, who is to do, how the tasks are to be grouped, who reports to whom, and where decisions

are to be made. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization.

Leading involves team building, consensus building, selecting and training. An organization has the greatest chance of being successful when all of the employees work toward achieving its goals. Since leadership involves the exercise of influence by one person over others, the quality of leadership exhibited by supervisors is a critical determinant of organizational success.

Controlling involves monitoring the employees’ behavior and organizational processes and take necessary actions to improve them, if needed. Control is the process through which standards for performance of people and processes are set, communicated, and applied.

According to Mintzberg (1973), managerial roles are: Informational roles, Decisional roles and Interpersonal roles. Katz (1974) has identified three essential management skills: technical, human, and conceptual. Luthans (1988) found that all managers engage in four managerial activities: (i) Traditional management–This activity consists of planning, decision making, and controlling, (ii) Communication–This activity consists of exchanging routine information and processing paperwork, (iii) Human resource management–this activity consists of motivating, disciplining, managing conflict, staffing, and training, and (iv) Networking–this activity involves socializing, politicking, and interacting with outsiders.

1.8 Terminal Questions

1. Discuss the characteristics of management.

2. Discuss the four management functions in brief.

3. Based on Katz’s proposition, briefly discus the essential managerial skills.

4. Explain the managerial activities listed by Luthans.

1.9 Answers

Answers to Self Assessment Questions

1. Appley

2. 1953

3. Management

4. Distinct Process

5. Four

6. Organizational

7. Figurehead

8. Technical

9. 32

10. 26

Answers to Terminal Questions

1. Refer section 1.3

2. Refer section 1.4

3. Refer section 1.5

4. Refer section 1.6

Glossary

Terms Meaning

Controlling The process of monitoring and correcting the actions of the organization and its members to keep them directed toward their goals.

Leading The process of getting the organization’s members to work together toward the organization’s goals.

Management Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives

Organizing The process of designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units

Planning The process of determining an organization’s desired future position and the best means of getting there.