Essentials of management
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Management involves planning, organizing, leading, and controlling organizational resources to achieve goals effectively and efficiently. The document outlines the traditional management functions and describes the types of managers (strategic, tactical, operational), skills required of managers (technical, interpersonal, conceptual), and levels of management (first-line, middle, top). Good managers focus on both effectiveness, doing the right things, and efficiency, doing things right, to accomplish organizational objectives with minimum waste of resources.
Essentials of management
- 2. Concepts and Essential of Management What is Management? Management is the process of working with different resources to accomplish organizational goals. Good managers do those things both effectively and efficiently. To be effective is to achieve organizational goals To be efficient is to achieve goals with minimum waste of resources, that is, to make the best possible use of money, time, materials, and people. Some managers fail on both criteria, or focus on one at the expense of another. Good managers maintain a clear focus on both effectiveness and efficiency. Dr.
- 3. The Functions of Management These activities, described below, are the traditional functions of management a. Planning b. Organizing c. Leading d. Controlling
- 4. Planning Planning is specifying the goals to be achieved and deciding in advance the appropriate actions taken to achieve those goals. Planning activities include : •analyzing current situations •anticipating the future •determining objectives •deciding what types of activities the company will engage in •choosing corporate and business strategies, and •determining the resources needed to achieve the organization's goals. The outcome of the planning process is the organization’s strategy.
- 5. Organizing Organizing is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. Activities include •attracting people to the organization •specifying job responsibilities •grouping jobs into work units •allocating resources, and •creating conditions It enable people and things work together to achieve maximum success. The outcome of organizing is an organizational structure.
- 6. Leading Leading is stimulating people to be high performers. It is inspiring directing motivating, and communicating with employees, individually and in groups. Leading involves close day-to-day contact with people, helping to guide and inspire them toward achieving team and organizational goals. Leading takes place in teams, departments, divisions, and at the tops of entire organization. The outcome of leading is a high level of motivation and commitment.
- 7. Controlling Comprehensive plans; solid organization, and outstanding leaders do not guarantee success. The fourth functional controlling, monitors progress and implements necessary changes. When managers implement their plans, they often find that things are not working out as planned. The controlling function makes sure that goals are accomplished. It asks and answers the question, "Are our actual outcomes consistent with our goals?" It makes adjustments as needed. Specific controlling activities are : •to set performance standards that indicate progress toward long-term goals •to identify performance problems by comparing performance data against standards •to take actions to correct problems.
- 8. Budgeting, information systems, cost cutting, and disciplinary action are just a few of the tools of control. Successful organizations, large and small, pay close attention to how well they are doing. They take fast action when problems arise, and are able to change as needed. The outcome of controlling is an accurate measurement of performance and regulation of efficiency and effectiveness
- 9. Effectiveness is the degree to which the organizations output correspond to the need and wants of the external environment that include customers’ suppliers’ competitors and regulatory agencies. Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved “Doing the Right Things Right” Effectiveness & Efficiency Productivity = Efficiency x Effectiveness Efficiency is the ratio of outputs to inputs. Efficiency: A measure of how well resources are used to achieve a goal “Doing Things Right”
- 10. Manager The member of the organization who participates in the management process by planning, organizing, leading, or controlling the organization's resources. Types of Mangers There are three types of mangers 1. Strategic Manager 2. Tactical Managers 3. Operational Managers Strategic Manager: Strategic managers are the senior executives of an organization and are responsible for its overall management. Major activities include developing the company's goals and plans. Typically strategic managers focus on long- term issues and emphasize the survival, growth, and overall effectiveness of the organization.
- 11. Tactical Managers: Tactical managers are responsible for translating the general goals and plans developed by strategic managers into objectives that are more specific and activities. These decisions, or tactics, involve both a shorter time horizon and the coordination of resources. Tactical managers are often called middle managers, because in large organizations they are located between the strategic and operational managers. Today's best middle managers have been called "working leaders." They focus on relationships with other people and on achieving results. They are hands-on, working managers. They do not just make decisions, give orders, wait for others to produce, and then evaluate results. They get dirty, do hard work themselves, solve problems, and produce value.
- 12. Operational Managers: Operational managers are lower-level managers who supervise the operations of the organization. These managers often have titles such as supervisor or sales manager. They are directly involved with non-management employees, implementing the specific plans developed with tactical managers. This role is critical in the organization, because operational managers are the link between management and non-management personnel. Your first management position probably will fit into this category.
- 13. Managers are Universal Managers work in all types of organizations, at all levels, and in all functional areas. Large and small businesses, hospitals, schools and governments benefit from efficient and effective management. The leaders of these organizations may be called executives, administrators, or principals, but they are all managers and are responsible for the success or failure of the organization. This success or failure is reflected in a manager's career. For example, when a CEO saves a failing corporation, the board rewards this success with bonuses and stock options. When a professional football team starts losing, the owner fires the coach, not the team.
- 14. The Managerial Skills Managers need three basic sets of skills: 1. technical 2. interpersonal 3. conceptual a. Technical Skills The skills that include knowledge of and proficiency in a certain specialized field Managers need to be technically competent. They need to know how to plan, organize lead and control. Line managers need this skill the most while top manager will need minimum of technical skills.
- 15. Interpersonal Skills/Human Skills Interpersonal skills include the ability to work well with other people both individually and in a group. Mangers need good interpersonal skills, knowledge about human behaviors and group processes, ability to understand the feelings, attitudes and motives of others, and ability to communicate, clearly and persuasively. Human skills are very important at each level of management.
- 16. Conceptual skills include the ability to think and to conceptualize about abstract and complex situations, to see the organization as a whole, and to understand the relationships among the various subunits, and to visualize how the organization fits into its broader environment. Conceptual skills include analytical ability, logical thinking, concept formation, and inductive reasoning. They manifest themselves in things like good judgment, creativity, and the ability to see the big picture. Top mangers/CEO needs this type of skill the most. Conceptual Skills
- 18. Levels of Management Three level in the organization can classify managers, particularly for traditionally structured organizations… •First-line managers are the lowest level of management. They’re often called supervisors •Middle managers include all levels of management between the first-line level and the top level of the organization. •Top managers include managers at or near the top of the organization who are responsible for making organization wide decisions and establishing the plans and goals that affect the entire organization.