MGT 420 :: PRINCIPLES AND PRACTICE OF MANAGEMENT

INTRODUCTION TO

MANAGEMENT

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Introduction to Management

Organization

Definition Type of Organization

Management
Definition Management Function Importance of Effective management Levels of Management

INTRODUCTION TO MANAGEMENT
When we talk about management, we cannot run away or ignore the concepts of management. It is important to understand the concept or refresh our memory because to be a better manager, we have to go back to the basic. So this chapter appears again even though you have covered the topics earlier in MGT 162

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Learning Objective
Upon completion of this chapter, you should able to;1. Define organization and management 2. Explain the different types of organizations 3. Explain the management functions and process 4. Describe the managerial skills and roles. 5. Explain the contemporary manager

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What Is An Organization ?
There are a few ways of defining organization. Here, we have two definitions by Stoner and Schermerhon. Basically, an organization is a group of people intentionally organized to accomplish an overall, common goal or set of goals. Business organizations can range in size from two people to tens of thousands.

An organization is a social unit in which two or more people interact to achieve a common goal. (Stoner 1995).

Defining

An organization is defined as a collection of people working together in a division of labour to achieve a common purpose. (Schermerhon).

Why do we need an organization? Accomplish objectives Preserve Knowledge Serve Society Provide Careers

1.1

Types of Organizations
For most of us, organizations are important part of our daily lives. This is a place where we engage in a systematic effort to produce goods or services. An organization can be formed according to formal and informal organization.

Formal organization A formal organization is an organization that consists of two or more people who are involved in a mutual effort with formal authority to achieve common objectives. This is depicted by an organization chart.

Informal organization

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An informal organization is an organization that consists of two or more people involved in a mutual effort without deliberate structures of authority (informal authority) or the necessity of the common objectives.

Activity

Identify who perform formal functions and informal functions in your organization. Describe their respective functions

1.2

What is Management?
The term "management" has many definitions; It is commonly defined as the art of getting work done work done through other people. Another definition simply states that to manage is to make decision work done through other people. Another definition simply states that to manage is to make decision.

Who practices management? In formal organization, management is practiced by everybody and is supervised by managers.

Management functions For a manager to effectively manage an organization, he or she must perform management functions.

What is management function? It comprises the activities of planning, organizing, leading and controlling.

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Planning

Includes defining goal, establishing strategy and developing plans to coordinate activities

Organization

Determining the tasks to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made

Leading

Includes motivating subordinates, directing others, selecting the most effective communication channels, resolve conflicts among individuals or groups and teams

Controlling

Monitoring activities to ensure that they are accomplished as planned and correcting any deviations

being

LEADS

ACHIEVING ORGANIZATIONAL GOALS / MISSION

Managers And Managing Managers are those individuals that manage people that reports to them. They are responsible for different departments, work at different level in the management hierarchy, and they should meet different requirements for achieving high performance.

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What Do Managers Really Do? Managers performed the management functions of planning, organizing, leading and controlling. The amount, scope and frequency spend on the management functions depend on their position in the management hierarchy. Managers are responsible for achieving organizational objectives through efficient and effective utilization of resources. These resources are human, financial, physical and informational. Besides that, to be a successful manager, a manager requires certain competencies to manage in the 2151 century: They must be more team-oriented, participatory, and flexible and focused on results. They also must be great communicators, team players, masters of technology, problem solvers, foreign ambassadors, change makers and leader.

Activity

Describe the use of the four management functions in the management of your daily life.

1.3

Importance of Effective Management

Help us understand many events, challenges and skills that will give meaning to our future work experience and careers as managers. Make us become effective managers through effective utilization of its human and material resources. Make us become effective managers who will be able to detect and locate problems to be solved that results in good decision making. Enable us to assess the future and make plans for it. Make sure that as mangers, we will be responsible and accountable for ensuring
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that the work efforts of our employees are directed towards the accomplishment of organizational objectives.

1.4

Process of management
The management process involved these four functions: Planning Setting goals and defining the actions necessary to achieve those goals. 3 steps involved: Deciding which goals the organization should pursue Deciding what courses of action to adopt to attain those goals Deciding how to allocate organizational resources

The outcome of the process is the organizations strategy, a pattern of decisions concerning what goals to pursue, what actions to take, and

what resources to use. Planning is very complex and difficult because of the level of uncertainty.

Organizing The process of determining the tasks to be done, who will do them, and how those tasks will be managed and coordinated. At this stage managers establish the structure of working relationships between organization members that best achieves organizational goals. Here it involves grouping people into departments according to the tasks they perform. Managers need to lay out lines of authority and responsibility between groups and people. The outcome of the process is an organizational structure, the formal system of reporting relationships.

Leading The capacity to lead the members of work groups toward the accomplishment of organizational goals. Managers determine direction, articulate a vision, and energize

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employees so that they can play a part in achieving goals. Requires a number of skill sets including: Understanding individual/group behavior dynamics The ability to motivate employees Be effective communicators Able to envision future and share that vision 3Cs Leadership Model

Controlling Monitoring the performance of the organization and the progress in implementing strategic and operational plans. Identifying the deviations between planned actual actions. Taking corrective action. Ensuring that the organization is moving toward the achievement of its goals. This involves designing appropriate measurements and information and control systems.

These four processes are essential to a managers job; The relative importance of each change with a managers position in the hierarchy. The amount of time spent planning and organizing increases the higher up a manager is. The lower the managers position, the more time spent leading and controlling others.

1.5

Levels of Management
There are three levels of management in an organization. Managers are classified based on these managerial levels. (Figure 1.0a and 1.0b) First Line Management This level refers to the lowest level of management in which individuals are responsible for the work of others. First line or first level managers manage operating employees only. Examples are retail supervisors at the floor operations,

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clerical supervisor in a large office an production supervisors in a manufacturing plant.

Middle Management Middle management refers to the level whereby managers would direct the activities of lower level managers and sometimes , also those of the operating employees. Middle mangers' main responsibilities are to direct the activities that implement the organization's policies and to balance the demands of their superiors with the capacity of their subordinates.

Top Management The top management level refers to the top managers that are responsible for the overall management of the organization. It establishes long term strategies and policies for the organization. Examples of the managers are Director, Chief Executive Officer (CEO), Senior Vice President, Chairman and others.

THREE TYPES OF MANAGERS AND THEIR PRIMARY FUNCTIONS

Top Managers

Middle Managers

Lower / First-line Managers / Operating Employees

Figure 1.0a

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Planning

Organizing

Leading

Controlling

Top Managers

Middle Managers

First-line Managers

Figure 1.0b

Managerial Skills A manager must have three basic managerial skills when managing resources in an organization. They are as follows: Technical skills - ability to use the procedures, techniques, and knowledge of a specialized field. Examples are surgeons, accountants, engineers, technicians etc. Human skills - the ability to work with, understand and motivate other people, as individuals or in group. Conceptual skills - the ability to coordinate and integrate all of organization's interest and activities.

Take a look at the diagram below. You will see how the need of each skill varies with the level of management.

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Skills Needed at Different Levels of Management

First-line Manager

Middle Manager

Top-level Manager

Conceptual

Conceptual

Conceptual

Human Technical

Human Human Technical Technical

Figure 2.0

Now, what about communication skills? Communication skills refer to a person's ability to convey information, thoughts, feelings and attitudes. It is both oral and written.

Activity

Do you think it is essential for managers at all levels to have this skill?

Managerial Roles There are three roles that managers perform in an organization. Each role is

concerned with influencing the behavior of people inside and outside the organization. Managers may perform several roles at once. They are as follows: Interpersonal roles - Interacting with others, external or internal the organization Informational roles - Gathering/Obtaining of information for decision making Decisional roles - Allocating of resources

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Among these three roles, decisional roles are the most important. There are ten (10) roles classified under the three (3) main roles..
NO. 1. MAIN ROLE Interpersonal Figurehead ROLE DEFINATION Helps the manager in the organization smoothly. A department head performing ceremonial duties greeting visitors, signing legal documents. A person responsible for hiring, training and motivating subordinates in the organization. A person who perform and interacts with other people outside organization. Assist the manager in receiving and communicating information to make the right decision. Monitor Disseminator Spokesperson Managers continuously seek information that can be used to advantage. Information received internally or externally will be transmitted to be subordinates. Information will be transmitted to people outside the organization or unit. It assists managers in making decision that solve problem or analyze and take advantage of opportunities. Entrepreneur Manager tries to improve that units and initiate changes Manager is responsible for corrective actions the organization faces important unexpected disturbances. Manager is responsible in allocating resource for the organization. Manger is responsible for representing the organization at major negotiations.

Leader

Liaison

2.

Informational

3.

Decisional

Disturbance handler

Resource Allocator

Negotiator

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Managerial Roles

Interpersonal figurehead leader liaison

Informational monitor disseminator spokesperson

Decisional entrepreneur disturbance handler resource allocator negotiator

Figure 3.0

(Source : H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973)

1.6

Contemporary Manager
The roles that managers have to fulfill today are quite different from the ones they have traditionally occupied. Managers will no longer think of themselves as the boss, but will view themselves as sponsors, team leaders, or internal consultants. Todays leaders can no longer wield control from the top of the pyramid; nor can they control the action from the sidelines. Leaders must empower individual employees to do whatever is necessary to achieve goals and make sure that employees have the resources to get the job done.

Competencies of Tomorrows Managers The great communicator The individual coach The team player The technology master The problem solver The foreign ambassador

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The change agent The lifelong learner

Implications for Future Leaders Keep abreast of changing conditions that affect the organization. Develop and understanding of the major environmental trends that are affecting organizations across the globe. Be flexible and adaptable to organizational changes, as well as proactive in initiating change when appropriate. Understand the changing role of the manager within the corporate structure. Make the most of your education and develop the skills and competencies necessary for managerial success. Focus on excellence and quality in everything you do. Take every opportunity to enhance your leadership skills.

Interview a manager at any level in your organization. Determine

Activity

which of the managerial roles the managers you interview apply to his or her job.

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Summary
An organization is a collection of people working together in a division of labor to achieve a common purpose. The organization can be structured according to formal and informal organization. Management is a process whereby the managers performed the various functions of planning, organizing, leading and controlling. There are various types of manager found - top, middle and lower manager. They performed various skills and roles to manage the organization effectively.

Being a manager involves acting both logically and emotionally. For top managers, decision making is challenging, as the current situation is constantly changing. Managers are often forced to deal with problems simultaneously and make snap decisions. Experienced managers accept failure by their subordinates as a normal part of learning.

References
1. James A. F. Stoner, R. Edward Freeman and Daniel R. Gilbert jr. Management. Prentice Hall 6'" Edition 1995 2. Pamela S. Lewis, Stephen H. Goodman, Patricia M Fandt., Challenges for 21 Century. South Western, 2001 3. Stephen H. Goodman, Patricia M Fandt, Joseph F Michlitsch, & Pamela S. Lewis, Thomson South Western, 2007. 4. Gareth R. Jones, Jennifer M. George and Charles W.L. Hill, Contemporary Management. 2nd edition, McGraw Hill, 2000.
st

Management:

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Checklist
Are you now able to: 9 To differentiate between organizations and management 9 Explain formal and informal organization 9 Specify the various functions perform by a manager in an organization 9 Relate the level of management with managerial skill 9 Discuss the various roles performed by manager.

Key Terms for Review

Conceptual skill Informational roles Interpersonal roles Decisional roles Human skill Middle management Lower management Technical skill Organization Management Top management

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Discussion Questions
1. What is an organization? Why are managers important to an organizations success? 2. Compare and contrast between Top Management and Middle Management 3. Differentiate the various types of skill performed by a manager 4. What are the various roles that will affect managerial effectiveness? 5. Contrast planning, organizing, leading and controlling. 6. In what ways can managers at the three levels of management contribute to organizational efficiency and effectiveness?

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Study Notes

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