Basic Concepts in Management

Management Types All manager’s job are not the same. Managers

are responsible for different departments, work at different levels in the hierarchy and meet different requirements for the achieving high performance.

Vertical differences

There are three levels of management.1. Top Management2. Middle Management 3. Lower Management

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CEO

General MgrPlant Mgr

Regional Mgr

Office Manager Supervisor

Team Leader

3

Top Level Management

Middle Level Management

First-LineManagement

Continued…Top Management/ ManagersAre at the top of hierarchy and are responsible

for the entire organization.They have such titles as managing directors,

chairperson, executive director, CEO and general manager.

They are responsible for:Setting organizational goalsDefining strategies for achieving them Monitoring and evaluating the external

environment Making decisions that affect the entire

organizations

Continued…Middle Management/ManagersWork at the middle levels of the organization and are responsible

for major departments.They are responsible for:

Implementing the strategies and policies defined by top Mgt.Setting objectives consistent with top management goals,

planning strategies.Monitoring and managing the performance of subunits and

managers who report to them.

Middle managers are generally concerned with the near future and are expected to establish good relations with peers around the organization, encourage team work and resolve conflict.

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First Line Management/ Managers

They manage the work of non-managerial individuals who are directly involved with production and creation of the organization products.

They are responsible:Managing the performance of entry-level employees.Teaching entry-level employees

how to do their jobsMaking schedules and operating plans based on

middle management’s intermediate-range plans

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Non-Managers It is the workforce. They are the individuals who are directly involved

with the production and creation of the organization’s products.

Horizontal Differences

1.Functional Manager

A manager who is responsible for the department that performs a single functional task and has employees with similar training and skills.

2. General Manager

A manager who is responsible for several departments that perform different functions.

Key Management Skills

1. Technical Skills

The knowledge and proficiency in a certain specialized field.

Chemical Pharmaceutical Engineering

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2. Human Skills

The ability to work well with other people both individually and in a group. How the work should be done by them and through them.

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3. Conceptual Skills

The ability to think and visualize abstract and complex situations.

See the organization as a whole and understand the relationship among the sub units

Developing your vision and company’s mission

To Visualize something, means to make imaginations.

Levels of Management V/s Managerial Skills

Human Skills Conceptual Skills Technical Skills

Top Management 40% 50% 10%

Middle Management 50% 25% 25%

Lower Management 50% 10% 40%

Roles of Managers

Interpersonal Roles:They grow directly from manager’s position authority and involve developing and maintaining positive relationships with others.

a. Figure Head: Representing companyb. Leader: Inspire, motivate and couchc. Liaison: The role of a bridge –department to

department and company to company.

Continued…Informational Role

This role relates to receiving and transmitting information into other organizational units.

a. Monitor: Seek internal and external information about issues affecting organization.

b. Disseminator: Transmit information internally.

c. Spokesperson: Transmit information about the organization to outsiders.

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Decisional RoleThis role involves making decisions of

significance which affect the organization. The decision is made based on the information.

a. Entrepreneurship: The person who takes risk.

b. Disturbance Handler: takes corrective action when organization faces important, unexpected result.

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c. Resource allocator: Distribute resources such as time, equipment, funding and human.

d. Negotiator: Representing the organization in major negotiations (present your ideas and listen to others).

Managerial Competencies

1. Team-Work Competencies2. Communication Competencies 3. Planning and Administration Competencies4. Global Awareness Competencies5. Strategic Action Competencies 6. Self-Management Competencies

Organization as a System

System: Is a set of interrelated parts operating as a whole in pursuit of common goals.

Major Components of an organization System1. Inputs: are the various human, material, financial

equipment, and informational resources required to produce goods and service.

2. Transformational Processes: Organization’s managerial and technological abilities used to convert inputs into outputs.

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3. Output: Products, services and other outcomes produced by the organization.

4. Feedback: Information about results and organizational status relative to the environment.

Open Versus Closed System

Open System: Continually interacts with its environment.

Closed System: Doing little or no interaction with its environment and receiving little or no feedback.