Basic Concepts in Management

1. Basic Concepts in Management Chapter One Lecture 2

2. Management Types All manager’s job are not the same. Managers are responsible for different departments, work at different levels in the hierarchy and meet different requirements for the achieving high performance. Vertical differences There are three levels of management. Top Management Middle Management Lower Management

3. Continued… Top Level Management Middle Level Management First-Line Management 3

4. Continued… Top Management/ Managers Are at the top of hierarchy and are responsible for the entire organization. They have such titles as managing directors, chairperson, executive director, CEO and general manager. They are responsible for: Setting organizational goals Defining strategies for achieving them Monitoring and evaluating the external environment Making decisions that affect the entire organizations

5. Continued… Middle Management/Managers Work at the middle levels of the organization and are responsible for major departments. They are responsible for: Implementing the strategies and policies defined by top Mgt. Setting objectives consistent with top management goals, planning strategies. Monitoring and managing the performance of subunits and managers who report to them. Middle managers are generally concerned with the near future and are expected to establish good relations with peers around the organization, encourage team work and resolve conflict.

6. Continued… First Line Management/ Managers They 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 schedules and operating plans based on middle management’s intermediate-range plans

7. 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.

8. Horizontal Differences 1. Functional Manager A manager who is responsible for the department that performs a single functional task and has employees with similar training and skills. 2. General Manager A manager who is responsible for several departments that perform different functions.

9. Key Management Skills 1. Technical Skills The knowledge and proficiency in a certain specialized field. Chemical Pharmaceutical Engineering

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

11. Continued… 3. Conceptual Skills The ability to think and visualize abstract and complex situations. See the organization as a whole and understand the relationship among the sub units Developing your vision and company’s mission To Visualize something, means to make imaginations.

12. Levels of Management V/s Managerial Skills HumanSkillsConceptual Skills Technical Skills Top Management 40% 50% 10% Middle Management 50% 25% 25% Lower Management 50% 10% 40%

13. Roles of Managers Interpersonal Roles: They grow directly from manager’s position authority and involve developing and maintaining positive relationships with others. a. Figure Head: Representing company b. Leader: Inspire, motivate and couch c.Liaison: The role of a bridge –department to department and company to company.

14. Continued… Informational Role This role relates to receiving and transmitting information into other organizational units. a. Monitor: Seek internal and external information about issues affecting organization. b. Disseminator: Transmit information internally. c. Spokesperson: Transmit information about the organization to outsiders.

15. Continued… Decisional Role This role involves making decisions of significance which affect the organization. The decision is made based on the information. a. Entrepreneurship: The person who takes risk. b. Disturbance Handler: takes corrective action when organization faces important, unexpected result.

16. Continued. c. Resource allocator: Distribute resources such as time, equipment, funding and human. d. Negotiator: Representing the organization in major negotiations (present your ideas and listen to others).

17. Managerial Competencies Team-Work Competencies Communication Competencies Planning and Administration Competencies Global Awareness Competencies Strategic Action Competencies Self-Management Competencies

18. Organization as a System System: Is a set of interrelated parts operating as a whole in pursuit of common goals. Major Components of an organization System 1. 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.

19. Continued… 3. Output: Products, services and other outcomes produced by the organization. 4. Feedback: Information about results and organizational status relative to the environment.

20. 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.

21. THANK YOU