Concept Of Management

Concept of Management

What Is Management? 

Managerial Concerns 

Efficiency 

“Doing things right” 

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Getting the most output for the least inputs

Effectiveness 

“Doing the right things” 

Attaining organizational goals

Management is a problem solving process of effectively achieving organizational objectives through the efficient use of scare resources in a changing environment Key Elements Problem Solving Process Organizational Objectives Efficiency Scarce Resources Changing Environment

Why Study Management? The Value of Studying Management 

The universality of management 

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The reality of work 

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Good management is needed in all organizations.

Employees either manage or are managed.

Rewards and challenges of being a manager 

Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work.

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Successful managers receive significant monetary rewards for their efforts.

Who Are Managers? 

Manager 

Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished.

Classifying Managers 

First-line Managers 

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Middle Managers 

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Individuals who manage the work of nonmanagerial employees. Individuals who manage the work of first-line managers.

Top Managers 

Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.

What Do Managers Do? Functional Approach 

Planning 

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Organizing 

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Arranging and structuring work to accomplish organizational goals.

Leading 

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Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.

Working with and through people to accomplish goals.

Controlling 

Monitoring, comparing, and correcting work.

Management Functions

What Do Managers Do? (cont’d)  Management Roles Approach (Mintzberg) 

Interpersonal roles 

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Informational roles 

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Figurehead, leader, liaison Monitor, disseminator, spokesperson

Decisional roles 

Disturbance handler, resource allocator, negotiator

The Behavioral Approach Organizational Behavior (OB) 

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The study of the actions of people at work; people are the most important asset of an organization . . . a field of study that investigates how individuals, groups and structure affect and are affected by behaviour within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

The Layers of OB The Organization

The Group

Change Organizational culture Decision making Leadership

Power and politics

The Individual

Negotiation Conflict Communication Groups and teams

Motivating self and others Emotions Values and attitudes Perception Personality

The Systems Approach 

System Defined 

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A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

Basic Types of Systems 

Closed systems 

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Are not influenced by and do not interact with their environment (all system input and output is internal).

Open systems 

Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

The Contingency Approach 

Contingency Approach Defined 

Also sometimes called the situational approach.

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There is no one universally applicable set of management principles (rules) by which to manage organizations.

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Organizations are individually different, face different situations (contingency variables), and require different ways of managing.

Popular Contingency Variables

• Organization size

As size increases, so do the problems of coordination. • Routineness of task technology Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies. • Environmental uncertainty What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment. • Individual differences Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations.