Principle of Management Chapter 1[1]

Principles of Management

Prepared by:

Mehwish Farooq

Learning Outcomes How organization use managerial resource to

achieve organizational goals Distinguish among four functions of management

and its practice Recognize the interpersonal, informational, and

decisional roles played by top level managers. Apply the general skills needed to carry out

managerial responsibilities. Integrate the major elements from the various

perspectives of management theory.

Why study Management Help how to work and deal with co-workers

and in group team How to lead co-workers Solve conflicts between them Achieve team goals Increase performance

……

Job of management is to help an organization make the best use of its recourses to achieve its goals

Definition According to Harold Koontz,

“Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals

Definition

The attainment of organizational goals in an effective and efficient manner through planning , organizing , leading , and controlling organizational resources.

DefinitionSimply Management is Manipulation of resources to achieve objectives

Resources:4Ms Men Material Money Machine

Functions of Management

Planning Choose appropriate organizational goals

and courses of actions to best achieve those goals

Decide which goals organization will pursue Decide strategies to achieve those goals Decide how to allocate resources to

achieve organizational goals

Planning ExampleDell goal to sell an inexpensive PCsUndercut the prices charged by other companies like apple, compaqSell directly to customers by telephoneMicheal dell acllocate $5,000 to buy labour and other resources

…… In 2000s HP, Apple , Acer achieve

competitive advantage over Dell

performance, style and pricing

Dell follow low cost strategy

HP and Acer also lowered their cost, Dell lost its competitive advantage

Organizing Determining what needs to be done, how it

will be done and who is to do it Organize people into deptt according to job

specific tasks Example Michael Dell hired 100 employees in start Later after success he made more complex

structure

Leading Leadership involves managers using

their powers , personality, influence and communication skills to coordinate people

outcome of leadership is highly motivated and committed workforce

Controlling Monitoring activities to ensure that they are

accomplished as planned

Example

HP and Acer learned how to reduce operational cost

Dell lost its competitive advantage

Levels of management

Top Level Manager

(Strategic Managers)

The firm’s senior executives with overall responsibility for the firm. Developing the company’s

goals Focus on long-term issues Emphasize the growth and

overall effectiveness of the organization

Concerned primarily with the interaction between the organization and its external environment.

.

Middle Level Managers

(Tactical Managers)

Responsible for translating the general goals and plans developed by strategic managers into specific objectives and activities.

Shorter time horizon Coordination of resources

First Line managers Supervise work of non-managerial

employees

Shift manager, district manager, department manager

Managerial skills Conceptual skills Human skills Technical skills

Conceptual skills Top managers require best conceptual skills Primary responsibility about planning and

organizing Formal education and training help to develop

managerial skills Steve job choose as CEO of apple because of his

ability to identify new opportunity

Human skills

Ability to understand, alter, lead and control behavior of others

Ability to motivate , communicate and coordinate with people

Learned through training as well as with experience

Technical Skills Job specific skills required to perform particular type

of work e.g manager of restaurant may be need cooking skills Accounting and book keeping skills to keep record

of recipts and cost Aesthetic skill to keep the restaurant looking

attractive for customer

Management Level and SkillsManagement Level and Skills

CompetitiveAdvantage

CostCompetitiveness

SpeedQuality

Innovation

Managing For Competitive Advantage

Managing For Competitive Advantage Cost competitiveness

costs are kept low enough so that you can realize profits and price your products at levels that are attractive to consumers

key is efficiency - accomplishing goals by using resources wisely and minimizing waste

Quality excellence of a product, including its attractiveness, lack of defects,

reliability, and long-term durability importance of quality has increased dramatically must identify specific elements of quality to correct problems, target

needs, and deliver world-class value

Managing For Competitive Advantage Speed

often separates winners from losers in world competition speed became a vital requirement in the 1990s

requirement has increased Innovation

the introduction of new goods and services important to adapt to changes in consumer demands and

to new sources of competition Best managers and companies delivering all four