Introduction To Management Process And Skills

Chapter 1 Introduction to management process and skills

Learning objective • Understanding the basic concept of organization • Understanding the definition of management and the functions of management • Differentiate the roles of management at various levels • Differentiate between efficiency and effectiveness

Organization Organization - Two or more people who work together in a structured way to achieve a specific goal or sets of goal Common characteristic of an organization - Have a distinct purposes ( goal) - Compose of people - Have a deliberate structure

Changing organization Traditional organization -stable -inflexible - Job focused - Work is define by job positions - Individual oriented - Permanent job - Command oriented - Managers always make decision - Rule oriented

New organization - Dynamic - Flexible - Skill focused - Define in term of task to be done - Team oriented - Temporary job - Involvement oriented - Employees participate in decision making - Customer oriented

Role of organizations Environment provider

Organization transform

Environment uses

Input (resources)

Transformation process

Output

HR, money, material, technology, information

Transform resources to product

Products and / or services

Why study management • The value of studying management – the universality of management • good management is needed in all organization

– the reality of work • employees either manage or are managed

– rewards and challenges of being a manager • management offers challenging, exiting and creative opportunities for meaningful and fulfilling work • Successful managers receive significant monetary rewards for their efforts

Universal Need for Management All sizes of organization Small Large

All organizational areas

Management Is Needed in …

Manufacturing – marketingHuman resource-accountinginformation system-etc.

All types of organization Profit

all organization level bottom

top

Non Profit

Management • The process of planning, organizing, leading and controlling the work of organization members and of using available resources to reach stated organizational goals. (stoner et al.)

• The process by which a corporative group directs actions of others toward common goals ( Massie & Douglas) • The process of working with and through others to effectively achieve organizational objectives by efficiently using limited resources in a changing environment (Kreitner)

• the coordination of all resources through the processes of planning, organizing, directing and controlling in order to attain stated objective (Sisk) • establishing an effective environment for people operating in formal organizational groups (koontz and O’Donnell)

Who are managers • someone who work with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.

Managerial Levels top manager

middle manager

first line manager

non-managerial employees

determine objectives, policy and strategies long term decision planning and decision making based on upper management direct and support non-management short term decision perform a variety of jobs

Classifying managers First line manager • First or lowest level of managers in the hierarchy • responsible for the work of operating employees only • do not supervise others managers • often called supervisor

middle manager • managers in the mid ranges of the organizational hierarchy • responsible for other managers and sometimes operating employees • report to more senior managers

top managers • responsible for the overall management of the organization • established operating policies • guide the organization’s interaction with the environment • small group – often called executive

functional and general manager functional manager - responsible for just one organizational activity or functional area - e.g.: finance, HR, Marketing general manager - oversees a complex unit - e.g. : company, subsidiary or an independent operating division - responsible for all functional activities of the unit

Managerial Concern 1. Efficiency - the ability to minimize the use of resources in achieving organizational objectives - “doing thing right” - an input output concept – efficient manager is the one who achieve outputs or results that measures up to the inputs (labour, materials, time) use to achieve them - getting the most output for the least input

2. effectiveness • the ability to determine appropriate objectives • “doing the right thing” • involves choosing the right goal • key to organizations success • attaining organizational goals

managerial effectiveness and efficiency efficient

utilization of resources not efficient

•Goal not met •Resources well utilize

•Goals achieved •Resources well utilize

• Goals not achieved • Resources not well utilize

• Goals achieved • Resources not well utilize

not effective

achieving goals

effective

effectiveness and efficiency in management efficiency (means) resources usage low waste

effectiveness (ends) Goal attainment high attainment

management strives for low resource waste high efficiency) and high goal attainment (high effectiveness)