Roles & Functions of Management

Overview Roles & Functions of Management The management pyramid Roles of Management 4 Functions of Management what skills do mangers need By Liaqat Ali khan MS HR

Types of Managers • Top Management: executives • CEO • President • VP • Middle Management: directors • Project Managers • First-line management • Superintendent • Chief Estimator • Non-supervisory employees

The Management Pyramid The organizing function will be discussed in detail in Chapter 7. In this chapter, however, we will discuss the three levels of a corporate hierarchy--top, middle, bottom--commonly known as the management pyramid. In general, top managers are the upper-level managers who have the most power and who take overall responsibility for the organization. An example is the chief executive officer (CEO). Top managers establish the structure for the organization as a whole, and they select the people who fill the upper-level positions. Top managers also make long-range plans, establish major policies, and represent the company to the outside world at official functions and fund-raisers.

Top Managers President, CEO, VP • Make long-range plans • Establish policies • Represent the company Middle Managers First-line Managers The Management Pyramid

In general, top managers are the upper-level managers who have the most power and who take overall responsibility for the organization. An example is the chief executive officer (CEO). Top managers establish the structure for the organization as a whole, and they select the people who fill the upper-level positions. Top managers also make long-range plans, establish major policies, and represent the company to the outside world at official functions and fund-raisers.

Top Managers Sr PM, PM, Controller, Marketing Manager, Sales Manager • Implement goals • Make decisions • Direct first-line managers Middle Managers First-line Managers The Management Pyramid

Middle managers have similar responsibilities, but usually for just one division or unit. They develop plans for implementing the broad goals set by top managers, and they coordinate the work of first-line managers. In traditional organizations, managers at the middle level are plant managers, division managers, branch managers, and other similar positions. But in more innovative management structures, middle managers often function as team leaders who are expected to supervise and lead small groups of employees in a variety of job functions. Similar to consultants, they must understand every department’s function, not just their own area of expertise. Furthermore, they are granted decision-making authority previously reserved for only high-ranking executives.

Top Managers Office Manager, Supervisor, Foreman, Department Head • Implement plans • Oversee workers • Assist middle managers Middle Managers First-line Managers The Management Pyramid

At the bottom of the management pyramid are first-line managers (or supervisory managers). They oversee the work of operating employees, and they put into action the plans developed at higher levels. Positions at this level include supervisor, department head, and office manager.

What Managers Do • Managerial activities differ by • The functions managers serve • The roles in which managers operate • The dimensions of each manager’s job Note: What managers do can be integrated with any of the four perspectives. In fact the type of work managers perform will probably differ between the “perspectives” discussed in the previous slides.

Mintzberg (1975): The Roles of Management • Roles in interaction: Interpersonal • Head of an organization • Leader • Center of communication • Communicative roles: Informational • Surveillant (info collector) • Information sharer • Spokesperson

Mintzberg (1975): The Roles of Management • Roles in decision making: Decisional • Entrepreneur • Problem solver • Resource allocator • Negotiator • Role as change agent: Innovation

The Roles of Management Decisional Informational Interpersonal + Innovator!

The Functions of Management • Planning • Organizing • Staffing • Leading • Controlling

Develop Strategies for Success Set Goals and Objectives Develop Action Plans Function 1: Planning Planning is the primary management function, the one on which all others depend. Managers engaged in planning develop strategies for success, establish goals and objectives for the organization, and translate their strategies and goals into action plans.

Function 2: Organizing Employee Activities Facilities and Equipment Decision Making Supervision Resource Distribution

Organizing, the process of arranging resources to carry out the organization’s plans, is the second major function of managers. During the organizing stage, managers think through all the activities that employees carry out (from programming the organization’s computers to mailing its letters), as well as all the facilities and equipment employees need in order to complete those activities. They also give people the ability to work toward organizational goals by determining who will have the authority to make decisions, to perform or supervise activities, and to distribute resources.

Function 3: Leading Implementing Plans Motivating People Leading—the process of influencing and motivating people to work effectively and willingly toward company goals—is the third basic function of management. Leading becomes even more challenging in today’s business environment, where individuals who have different backgrounds and unique interests, ambitions, and personal goals are melded into a productive work team.

Monitoring Progress Resetting the Course Correcting Deviations Function 4: Controlling Controlling is the fourth basic managerial function. In management, controlling means monitoring a firm’s progress toward meeting its organizational goals and objectives, resetting the course if goals or objectives change in response to shifting conditions, and correcting deviations if goals or objectives are not being attained.

Functions of Management Versus Leadership 1/2 • Management produces Order and Consistency • Planning / Budgeting • Establish agendas • Set time tables • Allocate resources • Organizing / Staffing • Provide structure • Make job placements • Establish rules and procedures • Leadership produces Change and Movement • Establishing Direction • Create a vision • Clarify big picture • Set strategies • Aligning People • Communicate goals • Seek commitment • Build teams and coalitions

Functions of Management Versus Leadership 2/2 • Management • Controlling / Problem Solving • Develop incentives • Generate creative solutions • Take corrective action • Leadership • Motivating and Inspiring • Inspire and energize • Empower subordinates • Satisfy unmet needs John P. Kotter 1990

Interpersonal skills • Sensitivity • Persuasiveness • Empathy • Technical skills • Specialized knowledge • (Including when and how to use the skills) • Conceptual skills • Logical reasoning • Judgment • Analytical abilities What Skills Do Managers Need? (Katz 1955) Adapted from Exhibit 1.5: Managers’ Skills

This exhibit summarizes discussion of the three sets of skills discussed in chapter one, as essential to good managerial performance. The exhibit has been modified for presentation, and is animated to permit point-by-point discussion. • I like to stress to students that too often managers over-rely on interpersonal skills. However, careers in management depend heavily on the managers technical skills, and especially on the managers conceptual skills. That is also seen in Exhibit 1.6, which follows this slide.

EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS 1-24

Roles & Functions of Management