Chapter 07- Fundamentals of Management

8/13/2019 Chapter 07- Fundamentals of Management

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Chapter Seven:

Fundamentals o f Management


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Chapter Objectives

Management and its importance to the

pursuit of various organizational and

individual goals

Different managerial functions-planning,

organizing, staffing, directing, and

controlling

Three levels of management and the

various roles mangers play

Four core management skills needed by

managers at each level and in each role


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What Is Management?

Management is concerned with effectiveness and

efficiency.

Effectiveness:

Doing the right things

Attaining organizational goals.

Effectiveness means getting the things

done/making right decision and implementation.

Efficiency: Doing things right

Getting the most output for the least inputs.

Efficiently means using resources optimally/ by best possible

use.


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4 basic and distinct kinds of inputs are

available in any organization

1. Human Resources.

(Managerial talent, labor)

2. Financial Resources.(Capital in operations)

3. Physical Resources.

(Raw materials, equipment)4. Information Resources.

(Information used for decision-making)


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Goal Vs Objective


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Cascade Approach

A procedure of setting objectives in which the

objectives are set from the top level ofmanagement to the lowest level.

Organizational Objectives(overall Organizationalobjectives)

Departmental Objectives(any departmentsobjectives)

Subunit Objectives(team of Employees)

Individual Objectives(each Employee)


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Management Functions

1. Planning and Decision

MakingSetting organizations goals anddecisions for actions from

alternative ways

2. Organizing

Determining to useresources in best

possible way

3. StaffingSelection, training,

developing etc.

4. LeadingMotivate/influence the

employees to work

5. ControllingComparing the estimated andactual results and correct

actions for effectiveness


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Functions of Management

1. Planning

Setting goals that sets invisible hand to guide for theemployees.

Selecting course of actions from a set of alternatives.

Three reasons for planning

To establish an overall direction for the organizationsfuture.

To identify and allocate organizations resources.

To decide which tasks must be done, who will do thejob, how long the job will take for achieving the goals.


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Sometime managers are not

interested for planning! WHY?

Planning is risky.

Planning is costly.

Planning is difficult.


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Steps in Planning:

Being Aware of opportunity.

(The Market, Competition, Customer Demand,

Organizations Strength & Weakness)

Setting Objectives or Goals.

Considering Planning and Premises.

(In what environmentInternal or External-will the

plan operate).


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Identify the alternative.

Comparing the alternative in the light of goalsought.

Choosing the best alternative.

Formulating Supportive plans.( Buy equipment,

material, hire & train workers)

Numbering plans by making budget. (volume &

price of sales, operating expenses, expenditure for

capital equipments etc)


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2. Organizing

Translate the planning into reality

Group and organize the resources in logical fashion.

** The identification and classification of requiredactivities.

**The grouping of activities and assignment of jobtasks necessary to attain objectives.

**The assignment of each grouping to a managerwith the authority (delegation) necessary to superviseit.

** The provision and coordination horizontally and

vertically in the organization.


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3. Staffing

The management function of selecting,

placing, training, developing, and

compensating subordinates.

Human Resource Management.


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Overview of Staffing Function

1.Organization plan.2. Number and kinds of manager required.

3. Analysis of product and future need for

manager.

4. External and internal sources.

5. Recruitment, Selection, Placement,

Promotion, Separation.

6. Appraisal Career Strategy by training and

development.

7. Leading and Controlling.


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4. Leading/Directing

1. - Human Factors and Motivation.

- Motivation results satisfaction.

- Set of processes to make employees worktogether.

- Special motivational techniques-

*Money, *Participation, *Quality of work life.


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Leadership

Leading can be accomplished through LEADERSHIPthe

process of influencing the activities of an individual or grouptoward accomplishing objectives.

Autocratic Leadership

-A type of close supervision in which the manager delegates as

little authority as possible.

-Plans and make the necessary decisions himself.

-Manager provides detailed instruction.

-Individuals or even groups of subordinates may actively resist

and develop hostilities toward the autocratic manager.

-Autocratic direction may be necessary in cases where employees

have skill deficiencies, lack of experience etc.


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Democratic Leadership- A type of general supervision in which the manager consults with

subordinates about job-related issues (job activities, problems,

corrective actions).

- Managers seek help and ideas.

- With experienced, skilled and intelligent group of employees, a

manager would likely to benefit from using a democratic style

that encourages participation.


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Laissez-Faire Leadership-A type of supervision in which the manager avoids power and

responsibility by giving assignments and support but staying out

of groups way.

-He/she exists as a contact person who provides information and

guidance that can be helpful in accomplishing objectives.

-This style may be appropriate when a person who is a liberal artsor business graduate (i.e. has minimum technical knowledge) is

managing a group of engineers.


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5. Controlling

-Comparing and monitoring the activities

to attain the organizational goals.

-Taking corrective actions if any deficiency

detected.


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Four Basic Steps of Control

The process of control has four basic

steps:

(A) Set standards for time, quality,quantity and so on.

(B) Measure performance (results).

(C) Compare performance to standards.

(D) Make necessary modifications..


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Levels of Management

Top Managers

-Consists of small group of

executives.

-Common title usedCEO,

President, MD etc.

-They set goals, strategy and

operating policies.

-Represent the organization

in the external environment(Government, other

companies, negotiation

etc.).

Top Managers

Middle

Managers

First line Managers


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Levels of Management

Middle Managers

-Generally, largest group in any organization. -Common title usedplant manager, operation

manager, division head etc.

-Major responsibilitiesimplementing the policies andplans, supervising and coordinating operations oflower level managers.

First line Managers

-Last level of managers. -Supervise and coordinate the activities of operating

employees.

-Common title usedsupervisor, coordinator etc.

-Spend little or no time on planning and organizing.

M i l R l


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Managerial Roles

Henry Mintzbergdefined 10 roles played bymanagers under 3 broad categories:

3 Categories

1. Interpersonal Roles.

2. Informational Roles.

3. Decisional Roles.

Category Role Example


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Category Role Example

Interpersonal Figure Head

Leader

Liaison

Ribbon cutting ceremony

Motivating employees

Coordinating activities

Informational Monitor

Disseminator

Spokesperson

Scanning industry

reports

Sending memos

Making speechDecisional Entrepreneur

Disturbance handler

Resource allocation

Negotiator

Developing new ideas

Resolving conflict

Examining budgets

Pursuing agreements

C M i l Skill


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Core Managerial Skills

Technical Skills

-Important for first line managers.

-Mostly for technical, engineering persons.

-Training, education, question answering are the

major means.

Interpersonal Skills

-Communication with the inside and outside people.

-Mostly done by middle and top managers.

-Communicating, understanding and motivating are

the major ways.


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Core Managerial Skills

Conceptual Skills -Managers ability to think in abstract form and not in

reality.

-Vital for all managers. -Education, continuous education are ultimate ways.

Diagnostic Skills

-Visualizing the factors affecting the actions. -Best suited for market oriented operations.


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Discussion questions

1.What is planning? Why is planning important in any business organization?

2.What type of managerial skills are needed by the following people:

CEO of Grameen phone

Receptionist at Sheraton

General manger at Square Pabna

Mr. Rashed at the asst registrars office

VC at BRAC University


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End of the Chapter

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Chapter 07- Fundamentals of Management