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Management is a process of co-ordinating work activities so that they are completed efficiently and effectively with and through other people.
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Fundamentals of Management 1. Nature of Management
Topic Discussed: • 1. What is management? • 2. Levels of management • 3. Functions of management • 4. Management skills • 5. Managerial roles
What is Management ? • Management is a process of co-ordinating work activities so that they are completed efficientlyand effectively with and through other people. • Management involves the efficient and effective completion of organisational work activities. • Management involves setting and achieving goals by exercising related functions & co-ordinating various resources.
What Is Management? Efficiency: • Getting the most output from the least amount of inputs; • “doing things right.” • It seeks to minimise the cost of resources
What Is Management? Effectiveness: Completing activities so that organisational goals are achieved “doing the right things.”
Levels of Management Managerial jobs in organisations fall into 3 categories: • 1. First-line management • 2. Middle management • 3. Top management
Levels of Management • First-line Management • Managers at the lowest level of the hierarchy who are directly responsible for the work of operating (non-managerial) employees. • Supervisor, Line manager, team leader. • First-line Managers are extremely important to the success of an organisation because they have the responsibility of seeing that day-to-day operations run smoothly in pursuit of organisational goals.
Levels of Management 2. Middle Management • Develop objectives to implement top-management goals. • Organise & staffing effort modify company structure, increase/decrease number of manpower in line with top-management guidelines. • Monitor & control the results of plans, make adjustments to ensure organisation’s goals are achieved. • Directly responsible for the work of managers at lower levels. • They may have titles such as Department Head, Plant Manager, or Division Manager.
Levels of Management 3. Top Management • Top Managers plan for the entire organisation & the acquisition of needed resources. • Develop organisational values, purpose, long-term goals. • Determine long term human resource needs & create guidelines to govern staffing practice. • Create companywide management philosophy, putting system in place • Evaluate overall company performance, determine whether resources are utilised and goals are achieved.
Levels of Management 3. Top Management Some examples of the titles include: • -Chief Executive Officer (CEO) • -President • -Executive Vice President • -Executive Director • -Senior Vice President • -Vice President • -Managing Director
Functions of Management Management is the process of achieving organisational goals by engaging in the 4 major functions of: • 1. Planning, • 2. Organising, • 3. Leading and • 4. Controlling. • This definition recognises that management is an ongoing activity, entails reaching important goals, and involves knowing how to perform the major function of management (POLC).
Functions of Management 1. Planning • Identify goals and establish an overall strategy for achieving those goals • Assign priorities & determine resources • 3 matters to be taken into consideration during planning - Duration and scope of planning - Influences on planning - Flexibility in planning
Functions of Management 2. Organising • Focuses on allocating and arranging human and non-human resources so that plans can be carried out successfully • Through organising function, managers determine: -what tasks are to be done, -who is to do them -how tasks/jobs are to be grouped into various units that make up the structure of the organisation -who reports to whom, and -where decisions are to be made
Functions of Management 3. Leading • Involves influencing others to engage in the work behaviours necessary to reach organisational goals. • Leading includes: -coaching employees -motivating employees -directing the activities of others -communicating with others, -resolving conflicts, and -coaching for necessary change and innovation
Functions of Management 4. Controlling • Monitoring actual performance • Comparing actual performance with pre-set goals • Actual performance vs pre-set performance • Deviation ? • If deviation exists, take necessary corrective actions.
Management Skills Skill: • An ability to act in a way that allows a person to perform well in his or her role. • A skill is the ability to engage in a set of behavioursthat are functionally related to one another and that lead to a desired performance level in a given area.
Management Skills (Managerial Skills) • Skill: • 3 basic sets of management skills (identified by Robert Katz) required by managers • 1. Technical Skills • 2. Human Skills • 3. Conceptual Skills
1. Technical Skills • Ability to apply specialised knowledge or expertise • It is the understanding & proficiency to use the tools, procedures, and techniques of a specialised field. • Technical skills in accounting, finance, engineering, manufacturing, or computer science. • Technical skills can be gained from: -extensive formal education or -develop their technical skills on the job.
2. Human Skills • Ability to work with others, either individual or group • Ability to understand, motivate, communicate, inspire, & gain trust from others.
3. Conceptual Skills • Conceptual skills are skills related to the ability to: -visualise the organisation as a whole, to see how its parts are interrelated and depend on one another. -understand how the organisationfits into the wider context of the industry, community, and world. -Well-developed conceptual skills equip the manager to identify the problem, develop alternative solutions, select the best alternative, and implement the solution.
Management Skills At Different Hierarchical Levels 1. Conceptual Skills • Generally, Conceptual Skills are most important at the top management level. • Top Managers have the greatest need to: -see the organisation as a whole, -understand how its various parts relate to one another, and -associate the organisation with the world outside.
Management Skills At Different Hierarchical Levels 2. Technical Skills • First-line managers have the greatest need for technical skills, since they directly supervise most of the technical and professional employees who are not managers. • Middle managers, too, often need sufficient technical skills so that they can communicate with subordinates and recognise major problems • Even Top managers must have some technical skills, particularly when technology is an important part of the products or services their organisations produce. Otherwise, upper-level managers will have difficulty fostering innovation, allocating resources efficiently, or devising strategies to stay ahead of the competition.
Management Skills At Different Hierarchical Levels 3. Human Skills • Not surprisingly, all three levels of management require strong human skills because they all must get things done through people. • Managers who lack sufficient human skills usually run into serious difficulties when they attempt to deal with individuals inside and outside their work units.
Management Skills At Different Hierarchical Levels Technical Skills Human Skills Conceptual Skills First-Line Middle Top Managers Managers Managers
Managerial Roles • Henry Mintzberg in the late 1960s attempted to categorise the manager’s various activities into roles. Role: • -A role is an organised set of behaviors associated with a particular office or position. • The 3 general types of roles that Mintzberg observed are: I . Interpersonal Roles II . Informational Roles and III. Decisional Roles
I. Interpersonal Roles • Grows directly out of authority of a manager’s position and involved developing and maintaining positive relationships with others. • All managers are required to perform duties that involve people and other duties that are ceremonies and symbolic in nature. • The three Interpersonal Roles include being a: 1) Figurehead 2) Leader 3) Liaison
I. Interpersonal Roles 1) Figurehead • Performs symbolic duties of a legal or social nature. • Example: Receiving important visitors and officiating events. 2) Leader • Builds relationships with subordinates and communicates with, motivates, and coaches them. • This role include hiring, training, motivating and disciplining employees.
I. Interpersonal Roles 3) Liaison • Interact with other internal staff, either same department of different department • Interact with suppliers and clients • Maintain self-developed network of contacts & informers who provide favours and information.
II. Informational Roles • Pertain to receiving, collecting and transmitting information. • The three Informational Roles include a: -Monitor -Disseminator -Spokesman
II. Informational Roles Monitor • Seeks internal and external information about issues that can affect organisation. • Monitor the environment to determine what is going on. Collects information both directly (asking questions) and indirectly (unsolicited information) • Example: reading periodical reports, maintain personal contacts
II. Informational Roles Disseminator • Transmits information internally that is obtained from either internal or external sources. • The manager must transmit much of the information received to subordinates. Spokesperson • Transmits information on the organisation’s plans, policies. • Example: holding board meeting, giving information to media.
III. Decisional Roles • Involve making significant decisions that affect the organisation, which revolve around making choices. • The four Decisional Roles include: -Entrepreneur -Disturbance Handler -Resource Allocator -Negotiator Entrepreneur • Act as initiator, designer, and encourager of change and innovation. • Manager initiates and oversee new projects that will improve the organisation’s performance.
III. Decisional Roles Disturbance Handler • Takes corrective action when organisation faces important, unexpected difficulties. • Managers take corrective action in response to unforeseen problems. Resource Allocator • Distributes resources of all types including time, funding, equipment, and human resources. • Manager are responsible for allocating human, physical and monetary resources.
III. Decisional Roles Negotiator • Represents the organisation in major negotiations affecting the manager’s areas of responsibility. • They discuss and bargain with other groups to gain advantages for their own units. • Example: Participating in Union contract negotiations.
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