MNG1100 MNG1100 PRINCIPLES OFPRINCIPLES OFMANAGEMENTMANAGEMENT

1

LECTURERLECTURER

HECTOR EDWARDSHECTOR EDWARDS

MANAGERMANAGER A manager is someone who works with and A manager is someone who works with and

through other people by coordinating their through other people by coordinating their work activities in order to accomplish work activities in order to accomplish organizational goals.organizational goals.

A manager allocates human, material, and A manager allocates human, material, and information resources in pursuit of an information resources in pursuit of an organization’s goals.organization’s goals.

Managers are formally responsible for Managers are formally responsible for supporting the work efforts of other people. supporting the work efforts of other people.

2

MANAGERSMANAGERS In all organizations, managers perform jobs that In all organizations, managers perform jobs that

involve directly supporting the work effort of involve directly supporting the work effort of others. Being a manager is a unique challenge that others. Being a manager is a unique challenge that carries distinct performance responsibilities. carries distinct performance responsibilities.

Managers are evaluated on how well the people Managers are evaluated on how well the people they direct do their jobs.they direct do their jobs.

Top managers are at or near the top level of the Top managers are at or near the top level of the

organization who are responsible for making organization who are responsible for making organization-wide decisions and establishing the organization-wide decisions and establishing the goals and plans that affect the entire organization.goals and plans that affect the entire organization.

Responsibility or accountability cannot be Responsibility or accountability cannot be delegated.delegated. 3

MANAGERSMANAGERS Middle managers are between the first-line Middle managers are between the first-line

level and the top level of the organization level and the top level of the organization who manage the work of first-line managers.who manage the work of first-line managers.

These managers have delegated authority.These managers have delegated authority.

First-line managers are at the lowest level First-line managers are at the lowest level of the organization who manage the work of of the organization who manage the work of non-managerial employees who are involved non-managerial employees who are involved with the production or creation of the with the production or creation of the organization’s products.organization’s products.4

MANAGERMANAGER A manager may be given another title. A manager may be given another title.

However, once the person is responsible However, once the person is responsible for the allocation of resources and the for the allocation of resources and the efforts of a group to achieve a common efforts of a group to achieve a common goals, the individual is a manager.goals, the individual is a manager.

A person can be a manager based on A person can be a manager based on function, location or activity, and include function, location or activity, and include department manager, sales manager, department manager, sales manager, division manager, taskforce manager, division manager, taskforce manager, and plant manager .and plant manager .

5

MANAGERMANAGER

A functional manager supervises A functional manager supervises employees having specialized skills in a employees having specialized skills in a single area of operation, such as single area of operation, such as accounting, personnel, marketing, or accounting, personnel, marketing, or production.production.

General managers are responsible for General managers are responsible for the overall operations of a complex unit the overall operations of a complex unit such as a company or a division. such as a company or a division.

MANAGEMENTMANAGEMENT Management is the process of coordinating Management is the process of coordinating

work activities so that they are completed work activities so that they are completed efficiently and effectively with and through efficiently and effectively with and through people.people.

Efficiency is getting the most output from Efficiency is getting the most output from the least amount of inputs. It is referred to the least amount of inputs. It is referred to as doing things right.as doing things right.

Effectiveness is completing activities so Effectiveness is completing activities so that organizational goals are attained. It is that organizational goals are attained. It is referred to as doing the right things.referred to as doing the right things.7

MANAGEMENTMANAGEMENT Efficiency is the means to the end - how Efficiency is the means to the end - how

we get things done, while effectiveness is we get things done, while effectiveness is the end- achieving what was set out to be the end- achieving what was set out to be accomplished.accomplished.

Efficiency cannot be realized unless Efficiency cannot be realized unless effectiveness has been attained.effectiveness has been attained.

One can be effective without being One can be effective without being efficient, however it is not possible to be efficient, however it is not possible to be efficient without being effective.efficient without being effective.8

MANAGEMENTMANAGEMENT Management and administration are not Management and administration are not

the same. Management is concerned the same. Management is concerned primarily with results and taking primarily with results and taking calculated risks. This means that calculated risks. This means that managers do certain things in order to get managers do certain things in order to get results for themselves and others. This results for themselves and others. This may include a variety of management may include a variety of management activities. activities.

Managers also evaluate various things in Managers also evaluate various things in order to try and minimise risks and order to try and minimise risks and improve output.improve output.

9

ADMINISTRATIONADMINISTRATION On the other hand, administration is On the other hand, administration is

concerned with procedures, accountability concerned with procedures, accountability and risk avoidance. This means that in and risk avoidance. This means that in proper administration, actions are carried proper administration, actions are carried out according to the correct procedures. If out according to the correct procedures. If part of the procedure is not followed, people part of the procedure is not followed, people will be held accountable. will be held accountable.

Here there is no need for creativity, or Here there is no need for creativity, or initiative, since things have to be done in initiative, since things have to be done in accordance with prescribed ways. This is in accordance with prescribed ways. This is in keeping with the Scientific Management keeping with the Scientific Management School, and the belief that there is one best School, and the belief that there is one best way. way.

ADMINISTRATIONADMINISTRATION

The key difference is that management The key difference is that management aims at taking calculated risks, whereas aims at taking calculated risks, whereas administration aims at avoiding it administration aims at avoiding it completely in order to ensure a proper completely in order to ensure a proper and effective administration process. and effective administration process.

This leads to bureaucracy, and more This leads to bureaucracy, and more concern for the means than the ends, with concern for the means than the ends, with persons loosing sight of the overall persons loosing sight of the overall objective or goals. objective or goals.

MANAGEMENT MANAGEMENT FUNCTIONSFUNCTIONS As with administration and management, As with administration and management,

management and leadership are not the management and leadership are not the same. The role of management is to same. The role of management is to promote stability or to enable the promote stability or to enable the organisation to run smoothly, whereas the organisation to run smoothly, whereas the role of leadership is to promote adaptive or role of leadership is to promote adaptive or useful changes.useful changes.

The main management functions are – The main management functions are – planning, planning, organizing, organizing, leading, and leading, and controlling.controlling. 12

MANAGEMENT MANAGEMENT FUNCTIONSFUNCTIONS

Planning is the management function that Planning is the management function that involves the process of defining goals, involves the process of defining goals, establishing strategies for achieving those establishing strategies for achieving those goals, and developing plans to integrate goals, and developing plans to integrate and coordinate activities.and coordinate activities.

Organizing is the management function Organizing is the management function that involves the process of determining that involves the process of determining what tasks are to be done, who is to do what tasks are to be done, who is to do them, how the task are to be grouped, who them, how the task are to be grouped, who reports to whom, and where decisions are reports to whom, and where decisions are to be made.to be made. 13

MANAGEMENT MANAGEMENT FUNCTIONSFUNCTIONS

Leading involves motivating subordinates, Leading involves motivating subordinates, influencing individuals or teams as they influencing individuals or teams as they work, selecting the most effective work, selecting the most effective communication channels, or dealing in communication channels, or dealing in any way with employee behaviour issues.any way with employee behaviour issues.

Controlling is the management function Controlling is the management function that involves monitoring actual that involves monitoring actual performance, comparing actual to performance, comparing actual to standard, and taking action, if necessary.standard, and taking action, if necessary.

14

MANAGEMENT SKILLSMANAGEMENT SKILLS A skill is an ability to translate knowledge A skill is an ability to translate knowledge

into action that results in a desired into action that results in a desired performance. performance.

Some have divided the essential managerial Some have divided the essential managerial skills into three categories: technical, human skills into three categories: technical, human and conceptual. and conceptual.

These skills vary across the different levels These skills vary across the different levels of management.of management.

15

TECHNICAL SKILLSTECHNICAL SKILLS Technical skill is an ability to perform Technical skill is an ability to perform

specialized tasks. Some technical skills specialized tasks. Some technical skills require preparatory education, whereas require preparatory education, whereas others are acquired through specific others are acquired through specific training and on-the–job experience. training and on-the–job experience.

This type of skill is very important at the This type of skill is very important at the lower levels of the organization, where lower levels of the organization, where more routine activities that are of a more routine activities that are of a repetitive nature take place. repetitive nature take place.

16

HUMAN SKILLSHUMAN SKILLS

Human skill is the ability to work well Human skill is the ability to work well with other people individually and in a with other people individually and in a group. People with this skill are able to group. People with this skill are able to interact well with others, engage in interact well with others, engage in persuasive communication, deal persuasive communication, deal successfully with disagreements and successfully with disagreements and conflicts, and more. conflicts, and more.

This skill is very important at all levels This skill is very important at all levels since persons have to interact with other since persons have to interact with other people continuously within the workplace.people continuously within the workplace.

17

CONCEPTUAL SKILLSCONCEPTUAL SKILLS

Conceptual skill is the ability to analyze and Conceptual skill is the ability to analyze and solve complex problems. This skill is used to solve complex problems. This skill is used to identify problems and opportunities, gather identify problems and opportunities, gather and interpret relevant information, and make and interpret relevant information, and make good problem solving decisions and serve the good problem solving decisions and serve the organization’s purpose. organization’s purpose.

Conceptual skills involve the ability to see the Conceptual skills involve the ability to see the organization as a whole and the relationship organization as a whole and the relationship among its parts.among its parts.

Individuals at the higher levels of the Individuals at the higher levels of the organization will need this skill if they are organization will need this skill if they are going to be successful. going to be successful.

18

MANAGEMENT ROLESMANAGEMENT ROLES Management roles refer to specific Management roles refer to specific

categories of managerial behaviour. These categories of managerial behaviour. These roles can be grouped into three categories; roles can be grouped into three categories; interpersonal, informational and decisional.interpersonal, informational and decisional.

Informational roles involve people and other Informational roles involve people and other duties that are ceremonial and symbolic in duties that are ceremonial and symbolic in nature, and include figurehead, leader, and nature, and include figurehead, leader, and liaison. liaison.

Figurehead -Figurehead - The role might include The role might include networking outside the organization, networking outside the organization, hosting guest and clients, inducting clients hosting guest and clients, inducting clients into the local social and business into the local social and business environment. environment.

19

INTERPERSONAL ROLESINTERPERSONAL ROLES LeaderLeader - This role might include goal - This role might include goal

setting, performance appraisal and setting, performance appraisal and reward.reward.

LiaisonLiaison - This entails maintaining - This entails maintaining contact with important people and groups.contact with important people and groups.

Informational roles involve receiving, Informational roles involve receiving, collecting, and disseminating information, collecting, and disseminating information, and include such roles as monitor, and include such roles as monitor, disseminator, and spokesperson.disseminator, and spokesperson.20

INFORMATIONAL ROLESINFORMATIONAL ROLES Monitor - Scanning the environment for Monitor - Scanning the environment for

relevant information, including formal and relevant information, including formal and informal networks.informal networks.

Disseminator - sharing and distributing Disseminator - sharing and distributing relevant information with insiders.relevant information with insiders.

SpokespersonSpokesperson - sharing relevant - sharing relevant information with outsiders (provide official information with outsiders (provide official statements on behalf of the organization).statements on behalf of the organization).

21

DECISIONAL ROLESDECISIONAL ROLES Decisional roles revolve around making Decisional roles revolve around making

choices, and include entrepreneur, choices, and include entrepreneur, disturbance handler, resource allocator disturbance handler, resource allocator and negotiator.and negotiator.

EntrepreneurEntrepreneur - The manager takes - The manager takes initiative to improve the effectiveness initiative to improve the effectiveness and competitiveness of his or her own and competitiveness of his or her own unit. unit.

22

DECISIONAL ROLESDECISIONAL ROLES Disturbance handler - It involves dealing Disturbance handler - It involves dealing

with disturbances and conflicts which with disturbances and conflicts which impact the performance of the manager’s impact the performance of the manager’s work or that of his/her unit.work or that of his/her unit.

Resource allocatorResource allocator (allocating resources (allocating resources to various uses) Including time, finance and to various uses) Including time, finance and people.people.

NegotiatorNegotiator (negotiating with other (negotiating with other parties) The most time-consuming of all parties) The most time-consuming of all activities; it reflects the manager’s role as a activities; it reflects the manager’s role as a peace-keeper or problem solver.peace-keeper or problem solver.23

MANAGING SYSTEMSMANAGING SYSTEMS A system is a set of interrelated and A system is a set of interrelated and

interdependent parts arranged in a interdependent parts arranged in a manner that produces a unified whole.manner that produces a unified whole.

An open system dynamically interacts An open system dynamically interacts with the environment, while closed with the environment, while closed systems are not influenced by or do not systems are not influenced by or do not interact with their environment. interact with their environment.

24

OPEN SYSTEMS OPEN SYSTEMS Organizations can be viewed as open Organizations can be viewed as open

systems that obtain resources inputs from systems that obtain resources inputs from the environment and transform them into the environment and transform them into outputs that are returned to the outputs that are returned to the environment in the form of goods and environment in the form of goods and services. services.

If every thing works right, the environment If every thing works right, the environment values these outputs and creates a values these outputs and creates a continuing demand for them. This sustain continuing demand for them. This sustain operations and allows the organization to operations and allows the organization to survive and prosper over the long run. survive and prosper over the long run.

OPEN SYSTEMS OPEN SYSTEMS Things can sometimes go wrong in the Things can sometimes go wrong in the

organization/environment relationship. If the organization/environment relationship. If the value chain breaks down and an organization’s value chain breaks down and an organization’s goods or services become unpopular, it will goods or services become unpopular, it will sooner or later have difficulty obtaining the sooner or later have difficulty obtaining the resources it needs to operate. resources it needs to operate.

The goods and services must not only be The goods and services must not only be desired by the market, but the quality must desired by the market, but the quality must also be to the market’s expectation.also be to the market’s expectation.

In the extreme case, it will be forced out of In the extreme case, it will be forced out of existence.existence.

OPEN SYSTEMS OPEN SYSTEMS RESOURCE INPUTS

TRANSFORMATION PROCESS

PRODUCT OUTPUTS

InformationMaterialTechnologyFacilitiesMoneyPeople

Organization

Work Activity

Consumer Feedback

Finished Goods and Service

MANAGING IN DIFFERENT MANAGING IN DIFFERENT AND CHANGING AND CHANGING

SITUATIONSSITUATIONS The contingency perspective (sometimes The contingency perspective (sometimes called the situational approach) of called the situational approach) of management underscores and emphasizes management underscores and emphasizes the fact that because organizations are the fact that because organizations are different, they face different circumstances different, they face different circumstances (contingencies) and, thus may require (contingencies) and, thus may require different ways of managing.different ways of managing.

This approach is intuitively logical due to the This approach is intuitively logical due to the diversity within the organization in terms of diversity within the organization in terms of size, objectives, and work being done. As such size, objectives, and work being done. As such there is no universally applicable principles there is no universally applicable principles that will work in all situations.that will work in all situations.

CONTINGENCY VARIABLESCONTINGENCY VARIABLES Organization SizeOrganization Size

Routineness of Task TechnologyRoutineness of Task Technology

Environmental UncertaintyEnvironmental Uncertainty

Individual DifferencesIndividual Differences

ORGANIZATION SIZEORGANIZATION SIZE

The number of people in an organization The number of people in an organization is a major influence on what managers is a major influence on what managers do. As size increase, so do the problems do. As size increase, so do the problems of coordination.of coordination.

The structure of an organization with a The structure of an organization with a very large number of staff would not be very large number of staff would not be suitable for an organization with a small suitable for an organization with a small amount of staff. As the utilization of a amount of staff. As the utilization of a similar structure will lead to inefficiency.similar structure will lead to inefficiency.

ROUTINENESS OF TASK ROUTINENESS OF TASK TECHNOLOGYTECHNOLOGY

To achieve its purpose, an organization To achieve its purpose, an organization uses technology, that is, it engages in the uses technology, that is, it engages in the process of transforming inputs into process of transforming inputs into outputs. outputs.

Routine technologies require Routine technologies require organizational structures, leadership organizational structures, leadership styles, and control systems that differ styles, and control systems that differ from those required by customized or from those required by customized or non-routine technologies.non-routine technologies.

ENVIRONMENTAL ENVIRONMENTAL UNCERTAINTYUNCERTAINTY

The degree of uncertainty caused by The degree of uncertainty caused by external forces such as political, socio-external forces such as political, socio-cultural, technological, and economic, cultural, technological, and economic, will influence the management process.will influence the management process.

What works best in a stable and What works best in a stable and predictable environment may be totally predictable environment may be totally inappropriate in a rapidly changing and inappropriate in a rapidly changing and unpredictable environment. unpredictable environment.

INDIVIDUAL DIFFERENCESINDIVIDUAL DIFFERENCES

Individuals differ in terms of their desire Individuals differ in terms of their desire for growth, autonomy, tolerance of for growth, autonomy, tolerance of ambiguity, and expectations. These and ambiguity, and expectations. These and other individual differences are other individual differences are particularly important when managers particularly important when managers select motivational techniques, select motivational techniques, leadership style, and job designs.leadership style, and job designs.

ORGANIZATIONORGANIZATIONAn organization is formally defined as a An organization is formally defined as a collection of people working together in collection of people working together in a division of labour to achieve a common a division of labour to achieve a common purpose. purpose.

It is a deliberate arrangement of people It is a deliberate arrangement of people to accomplish some specific purpose.to accomplish some specific purpose.

The core purpose of an organization may The core purpose of an organization may be stated as the creation of goods or be stated as the creation of goods or services for customers. services for customers. 34