MGT-100: PRINCIPLES OF MANAGEMENT

There are 3 lecturers taking you through this course

during this semester. There will be 12 to 13 weeks of teaching/Tutorials for this course before you write the final examination.

2 CA Tests---40% Final exam---60%

We will be dealing mainly with : Management Manager Historical Back ground of

Management Evolution of Management Functions of Management

Organisation defined

Organisation is group of people with formally assigned roles who work together to achieve the goals of the group.

Characteristics:common purpose/goalsorganizational structure

Determinants of Organisation 1. Organisation size 2.Diversity of operations 3.Characteristics of personnel External factors Environment, Resources Technology Government regulations

Clients and customersLegal environmentCompetitorsSocial systems

Cont’d

Manager is a person who plans, organizes, leads, and controls the work of others so that the organisation achieves its goals. Therefore a manager:gets things done through the efforts of other people.

is skilled at the management process.

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An Introduction to Management Organization

A group of people working together in structured and coordinated fashion to achieve a set of goals

Types of Organizational Goals Profit-seeking National defense

Discovery of knowledge

Coordination Social needs

Cont’d

Management Process Refers to the manager’s four basic functions of planning, organizing, leading, and controlling.

Another process: POSDCORB PLANNING, ORGANISING, STAFFING, DIRECTING, COORDINATING/CONTROLLING, REPORTING, BUDGETING

Management Defined

1. Dessler (2004) defined management as a process of getting work done through other people. Therefore:

a manager set goals to be achieved.

arrange for resources.motivate employees and monitor their activities.

Cont’d

Other resources like:Financial resourceMaterial resource information resourceMachinery Manpower

Other definitions of Management

The art of getting things done through people” (M.P. Follet)

“The process of planning, organizing, leading, and controlling the efforts of organizational resources to achieve stated organizational goals” (Stoner)

Another definition

Management is the process of setting objectives and coordinating the efforts of personnel in order to attain them. It involves getting things done through other people--- Richard Hodgetts

Doing things efficiently and effectively is good management

Efficiency-Getting the work done with minimum effort, expense, or waste

Effectively-Accomplishing tasks to the best satisfaction of end users.

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Basic Responsibility of Management

EFFICIENTLYUsing resources wisely and

in a cost-effective way

EFFECTIVELYEFFECTIVELYMaking the right decisions and

successfully implementing them

and

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What is Management?

Engaging in a set of activities Planning and decision making, organizing, leading, and controlling

Using an organization’s resources Human, financial, physical, and information

Achieving organizational goals in an efficient and effective manner.

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Management: Science or Art or both? The Science of Management

Assumes that problems can be approached using rational, logical, objective, and systematic ways.

Requires technical, diagnostic, and decision-making skills and techniques.

The Art of Management Requires a blend of intuition, experience, instinct, and personal insights.

Requires conceptual, communication, interpersonal, and time-management skills to accomplish managerial tasks activities.

Management as Science and ArtAs science- requires to use of logic and analysis. Manager arrives at a decision by observing, classifying and studying facts in relation to the problem at hand.

As an Art- It requires the use of behavioural and judgmental skills that can not be quantified or categorised like in the case of chemistry, biology and physics it is an art of acting by motivating, leading by using Judgment, intuition,etc.

Contd---

Art- Managers approach management as an art when dealing with people

Science- Mangers approach management as science dealing with material things.

The approach varies at different levels of Management

Lower levels- Use Scientific techniquesUpper levels- use judgment, thought and intuition

Management as a profession

In addition to being an art and a science, management is also considered as profession. Management changes its role depending on the situation.

Profession is a vocation whose practice is founded upon an understanding of the theoretical structure of some department of learning or science, and upon the abilities accompanying such understanding

Characteristics of a ProfessionTo qualify as profession, an occupation must meet five major criteria

1.Knowledge-Accumulation of knowledge

2.Competent application-Application of knowledge

3.Social responsibility-Assuming Social Obligations

4.Self Control/Ethics- for effective management

5.Community Sanction- contribution to social programs

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Management-The Importance of Theory and History Why Theory?

Provides a conceptual framework for organizing knowledge and providing a blueprint for action.Management theories are grounded in reality.

Managers develop their own theories.

Avoids mistakes of others in the past and develop further

Why History? An awareness and understanding of historical developments in management are important.Furthers development of management practices.

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Early Management Pioneers

Robert Owen (1771–1858) Recognized the importance of human resources and the welfare of workers.

ADMINISTRATION

According to Theo Haimann, It means “overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmes and projects”. It refers to the activities of higher level. It lays down basic principles of the enterprise.

According to Newman, “Administration means guidance, leadership & control of the efforts of the groups towards some common goals”.

MANAGEMENT

Where as management involves conceiving, initiating and bringing together the various elements; coordinating, actuating, integrating the diverse organizational components while sustaining the viability of the organization towards some pre-determined goals.

In other words, it is an art of getting things done through & with the people in formally organized groups.

Administration and Management should go together

Charles Babbage (1792–1871) Focused on creating production efficiencies through division of labor, and application of mathematics to management problems.

Basic functions of ManagementPlanning.Organising.Leading .Controlling

Planning

Planning is a process of establishing goals and deciding how to accomplish them. It is one of the best ways to improve performance

Organising

Organising is the process of grouping resources and activities to accomplish the end result in an efficient and effective manner.

It also means deciding where decisions will be made , who will do what jobs and tasks and for whom.

Leading

Leading is the process of influencing people to work toward a common goal .It includes inspiring and motivating people to work hard to achieve organisational objectives

Controlling

Controlling is the process of evaluating and regulating ongoing activities to ensure that goals are achieved.

Or is a process of setting

standards(such as sales quota or quality standards), comparing actual performance with standards set and taking corrective action at the right time.

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1.2 The Management Process

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What is a Manager? Someone whose primary responsibility

is to carry out the management process. Plans and makes decisions, organizes,

leads, and controls human, financial, physical, and information resources.

Manager roles

A role is an organized set of behaviours.

Managers perform various roles in organisation to achieve organisational goals.

Cont’d

Henry Mintzberg identified ten roles common to all Managers.

These ten roles are divided into three main groups depending on their nature:

Managerial Roles

Cont’d

1.Interpersonal roles.

2.Informational roles.

3.Decisional roles.

Interpersonal roles

1.Leader- managers are leaders in their organisation. Is responsible for hiring, training, counseling and directing subordinates. The leader has to motivate and encourage workers to accomplish the goals of the organisation

2.Figurehead-( Representative figure) Manager represent the organisation in all formal functions and meet important people. This is a ceremonial role so to say speaking on behalf of the organisation

Cont’d

3.Liaison/relationship- managers maintains good relationship within the organisation and outside. (public).Interacts with people at the same level of hierarchy. The manager spends more or less equal time both with outsiders and insiders.

Cont’d

Internal relations involve Top Management, other managers and employees.

External relations with-suppliers, bankers, the government and customers.

Information role

Focal point of receiving and sending information.

1.Monitor- performance, opportunities and threats outside e.g. customer behaviour. Basically talks to subordinates and gathers information required in running the organisation

Eg:Journals, News Papers and other electronic means, websites

Cont’d

2.Analyses/disseminator- analyses information and passes relevant data on to colleagues, superiors and subordinates.

Eg: e-mail, voice mail and now Face book and Twitter

Cont’d

3.Spokesperson – managers acts as spokesperson in their department and outside the organization. Provides information either to inform the public about the organisation or to satisfy influential people who control the organisation.

Eg: at the Company Annual Meetings with Share holders/Board of Directors

Decisional roles

Use of information. 1.Allocation of resources -The

Manager allocates resources and decides who gets what. Eg: salaries, assistance, his\her own time. Also designs the organisation structure and decides who will do what.

2.Entrepreneur role -Mangers are entrepreneurs- use information to achieve a positive change e.g. new product development or idea or restructuring the business and other innovations

Cont’d

3.Negotiator’s role- interact with employees, other department or business to negotiate goals. This is the major part of manager’s job as he is the only one who has authority to decide and commit resources for any activity.

Examples of this role Schedules Outcomes Performance standards. resources trade union agreements. New contracts

4. Trouble shooter or disturbance handler role- try to resolve problems before they become serious/out of hands-Responds to problems with immediate action.

Deals with strikes, shortages and equipment breakdowns

Managerial skills

A Skill is an ability to translate knowledge into action that results in desired performance.

Robert Katz identified 3 different kinds of Managerial Skills, they are:

1.Technical skills 2. Human skills and 3.Conceptual skills.

1.Technicasl Skills

Ability to use the techniques.Ability to use procedures.Ability to use tools of a specific field.

Important at lower levels(First line Managers and Team Leaders).

To know how the work is done.Able to demonstrate the work.Main concern is to get the work out.

Once equipped with these skills ,easy to direct subordinates effectively and also to assist them when they have problems.

Eg; of technical Skills: For Sales Managers; technical skills involve ability to find new sales prospects depending on the needs of the consumers.

2. Human skills(Interpersonal Skills)

An understanding of human behavior and group processes, and the feelings, attitudes, and motives of others, and ability to communicate clearly and persuasively.

Ability to deal with people effectively both inside and outside the organization.

Cont’d

Ability to communicate, motivate and lead individuals and groups are key to their success

It’s a skill of persuading, negotiating and coordinating activities of others e.g. distributing work and solving conflicts.

cont.

The Jobs are more Human than Technical in nature

These skills are necessary to all managers but more so with Middle level Managers

Middle level Managers’ are concerned with directing lower level supervisors and other middle level Managers.

The manager here is situated in between Top level and Lower Level Management

The manager here takes top management directives and turn them into Operational Plans and passes them on to the Lower management for action.

Here the Manager is like a politician who is trying to balance various needs or concerns of groups with different interests.

Further the manager here should know:

1.How to relater people in higher level positions

2. how to acquire communication skills on a one-to-one basis

3. How to improve their skills in sizing up the employees

4. How to use time more effectively

5. how to become results oriented than activity oriented

6. How to deal with Organisational politics.

Managers here are more sensitive to others’ needs and view points, and are good listeners and communicators.

Top/ Upper level Managers spend most of their time in dealing with people.

3. Conceptual Skills

Is the ability to plan, coordinate and integrate all of the organisation’s interests and activities.

Contd---

Good judgment, creativity, and the ability to see the “big picture” when confronted with information.

Involves planning and thinking process.

One must be intelligent and practical.

Cont’d

More crucial to top managers than for middle management or first line managers, because long range forecasting and planning are the principal activities at this level.

Contd---

The top management must be able to balance the demands of the organisation’s various departments and units with the demands of the external environment,i,e;Local community, social and economic forces, customers and competition.

Characteristics of top ManagersAmong others they include:1. The capacity to abstract- conceptualise, organise, and integrate different ideas into a coherent frame work

2.Tolerance for ambiguity- ability to with stand confusion until it is clear.

3.Intelligence-Capcity not only to abstract but also to be practical

4.Judgment-The ability to know when to act.

Four possible mistakes of Managers1. Insensitive to others by the intimidating management style

2. Becoming Often cold, aloof, or arrogant in their behaviours

thinking he knows everything and he is superior to others

3. Betrayal of trust- making others look bad by not doing what you said you would do when you said you would do it. It is failure to admit mistakes.

4. becoming overly political and ambitious- unable to

delegate, and build a team.

First line Managers

Middle Level Managers

Top Level Managers

Conceptual=10%

Conceptual=15%

Conceptual=35%

Human=40% Human=55% Human =50%

Technical=50%

Technical=30%

Technical=15%

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What Skills Do Managers Need?

Interpersonal

Fundamental Management

Skills

Technical

Conceptual

Communication

TimeManagement

DecisionMaking

Diagnostic