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Principles of Management

Introduction to Introduction to Management-1Management-1stst Part PartIntroduction to Introduction to Management-1Management-1stst Part Part

Lecture 1Lecture 1

Management

Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.

The process of getting things done, effectively and efficiently, through and with other people

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Basic Purpose of ManagementBasic Purpose of Management

EFFICIENTLYUsing resources wisely andin a cost-effective way

EFFECTIVELYMaking the right decisions andsuccessfully implementing them

AndAnd

Efficiency and Effectiveness in Management

Management Strives For:Low resource waste (high efficiency)

High goal attainment (high effectiveness)

ResourceUsage

Efficiency (Means)

GoalAttainment

Effectiveness (Ends)

Low Waste High Attainment

Effectiveness? Means doing the right things; goal attainment The degree to which goals are achieved Making the right decisions and successfully

implementing them Doing the right things in the right way at the

right times Efficiency?

Means doing the thing correctly; refers to the relationship between inputs and outputs; seeks to minimize resource costs

Using minimal resources to produce the desired volume of output

Using resources wisely and in a cost-effective way Operating in such a way that resources are not

wasted

Who Are Managers?

Manager

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

– changing nature of organizations and work has blurred the clear lines of distinction between managers and non-managerial employees

New Managers Profile

The New Manager/Leader Profile

Managers who:

– Are no longer “the boss,” rather they act as sponsors, team leaders, or internal consultants.

– No longer control from the top of the pyramid; nor try to control the action from the sidelines.

– Empower individual employees to do what is necessary to achieve goals.

– Make sure that employees have the resources to get the job done.

Managing 21st cent.

Managing in the 21st Century

What’s different?– The rate of change continues to increase

What’s the same?– The same basic business, economic, and managerial

principles still apply

Important change factors:– The Internet and information technology– Increasing globalization– Increasing diversity– etc

What Is An Organization?

Organization– a deliberate arrangement of people to

accomplish some specific purpose• elements of definition

– each organization has a distinct purpose– each organization is composed of people– all organizations develop some deliberate structure

– today’s organizations have adopted:• flexible work arrangements• open communications• greater responsiveness to changes

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Common Characteristics of Organizations

Management Activities

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PlanningDefining goals and

establishingaction plans

ControllingMonitoring activitiesto ensure that they

are achievingresults

LeadingGuiding and motivating all

involved parties

OrganizingDetermining what

needs to be done, in what order, and by

whom

EffectiveManagement

Model of Management

Models of Management

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ResourcResourceses•HumanHuman

•FinancialFinancial

•Raw MaterialsRaw Materials

•TechnologicalTechnological

•InformationInformation

PerformancPerformancee•Attain goalsAttain goals

•ProductsProducts

•ServicesServices

•EfficiencyEfficiency

•EffectivenessEffectiveness

PlanninPlanningg

LeadinLeadingg

ControllinControllingg

OrganizingOrganizing

Use influence to Use influence to motivate motivate

employeesemployees

Select goals Select goals and ways to and ways to attain themattain them

Assign Assign responsibility for responsibility for

task task accomplishmentaccomplishment

Monitor activities Monitor activities and make and make correctionscorrections

What Do Managers Do?Management Functions: most useful

conceptualization of the manager’s job– Planning - defining goals, establishing

strategies for achieving those goals, and developing plans to integrate and coordinate activities

– Organizing - determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are made

– Leading - directing and motivating all involved parties and dealing with employee behavior issues

– Controlling - monitoring activities to ensure that they are going as planned

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Management Levels (typical)

SOURCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, “Chutes and Ladders: Growing the General Manager,” Sloan Management Review (Spring 1989), 27-37.

Management Levels And Features

Management level– Top-level managers

• senior executives responsible for overall management of an organization

• focus on long-term issues

• emphasize the survival, growth, and effectiveness of the firm

• concerned with the interaction between the organization and its external environment

Management level (cont.)– Middle-level managers (tactical managers)

• located between top-level and frontline managers in the organizational hierarchy

• responsible for translating strategic goals and plans into more specific objectives and activities

• traditional role was that of an administrative controller who bridged the gap between higher and lower levels

• evolving role is that of a developmental coach to the people who report to them

Management Levels And Features

Management level (cont.)– Frontline managers (operational managers)

• lower-level managers who supervise the operational activities of the organization

• directly involved with nonmanagement employees

• increasingly being called on to be innovative and entrepreneurial

– Working leaders with broad responsibilities• in leading small companies, managers have strategic,

tactical, and operational responsibilities

• have a knowledge of all business functions, are accountable for results, and focus on internal and external customers

Management Levels And Features

Distribution of Time per Activityby Organizational Level

Source: Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll, “The Job(s) of Management.” Industrial Relations 4, no. 2 (1965), p. 103.

Why Study Management?

Universal applicability– The basic functions that managers perform, the

roles that managers play, and the skills that managers use are universal.

Organizational need– The basic functions—planning, organizing,

leading, and controlling—are required in every organization.

UNIVERSAL NEED FOR MANAGEMENT