Topic : Introduction to Management

Facilitator: Dr. K. Kajendra, Dr. K. Kajendra, Senior

Lecturer, Ph.D., M.B.A., M.Com, B.Com (Special)

Department of Marketing, Faculty of Management and Finance, University of Colombo

The Nature of Management

Managers have to cope with diverse and farreaching challenges To keep pace with ever-advancing technology To find ways to incorporate the Internet and e-business into their strategies and business model Strive to remain competitive in a dynamic and far reaching world

1. 2. 3. 4.

What Do Managers Have in Common? They get things done through their organization. They create the systems, conditions and environment that enable organizations to survive and thrive beyond the tenure of any specific supervisor or manager.

Who Are Managers?

Manager
Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.

Classifying Managers
First-line Managers
Are at the lowest level of management and manage the work of non-managerial employees.

Middle Managers
Manage the work of first-line managers.

Top Managers
Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.

Managerial Levels

Dimensions of Managers tasks

Functions

Role

Skills

What Is Management?
Managerial Concerns
Efficiency Doing things right
Getting the most output for the least inputs

Effectiveness Doing the right things

Attaining organizational goals

Effectiveness and Efficiency in Management

Management in organizations

People

Structure

processes

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

Managers use a multitude of skills to perform functions

Definitions
The process of achieving organizational goals engaging in management functions. Art of getting things done through other people The process of working with and through others to effectively achieve organizational objectives by efficiently using limited resources in changing environment

Dimensions of Managers tasks

Functions

Role

Skills

What Do Managers Do?

Functional Approach
Planning
Defining

goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities. work to accomplish organizational goals.

Organizing
Arranging

Leading
Working

with and through people to accomplish goals. comparing, and correcting the work.

Controlling
Monitoring,

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Management Functions

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What Do Managers Do? (contd)

Mintzergs Managerial Roles
Management Roles Approach Interpersonal roles
Figurehead,

leader, liaison

Informational roles
Monitor,

disseminator, spokesperson Disturbance handler, resource allocator, negotiator

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Decisional roles
Entrepreneur,

What Do Managers Do? (contd)

Skills Approach
Technical skills
Knowledge

and proficiency in a specific field

Human skills
The

ability to work well with other people

Conceptual skills
The

ability to think and conceptualize about abstract and complex situations concerning the organization

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Skills Needed at Different Management Levels

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 Participants exercise SKILLS THAT ARE IMPORTANT TO ME AS A MANAGER

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 SKILLS THAT ARE IMPORTANT TO ME AS A MANAGER

Manage people, time, and task Interpersonal skills Effective Communication Thinking critically Identifying clear roles for employees Ability to forecast and plan accordingly Creating an environment of openness, trust, and challenge
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 HOW CAN YOU DEVELOP YOUR SKILLS ? .. .. ..

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 HOW CAN YOU DEVELOP YOUR SKILLS ? Judicious selection of a mentor at the work place Continuous updation of knowledge Discussion and exchange of ideas among peers and friends. Having the courage to question Challenging the status quo Being open to failure and to learn from mistakes

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Conceptual Skills
Using information to solve business problems Identifying of opportunities for innovation Recognizing problem areas and implementing solutions Selecting critical information from masses of data Understanding of business uses of technology Understanding of organizations business model

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Communication Skills
Ability to transform ideas into words and actions Credibility among colleagues, peers, and subordinates Listening and asking questions Presentation skills; spoken format Presentation skills; written and/or graphic formats

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Effectiveness Skills
Contributing to corporate mission/departmental objectives Customer focus Multitasking: working at multiple tasks in parallel Negotiating skills Project management Reviewing operations and implementing improvements
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Effectiveness Skills (contd)

Setting and maintaining performance standards internally and externally Setting priorities for attention and activity Time management

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Interpersonal Skills
Coaching and mentoring skills Diversity skills: working with diverse people and cultures Networking within the organization Networking outside the organization Working in teams; cooperation and commitment

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How The Managers Job Is Changing

The Increasing Importance of Customers
Customers: the reason that organizations exist
Managing

customer relationships is the responsibility of all managers and employees. Consistent high quality customer service is essential for survival.

Innovation
Doing things differently, exploring new territory, and taking risks
Managers

should encourage employees to be aware of and act on opportunities for innovation.

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Changes Impacting the Managers Job

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What Is An Organization?
An Organization Defined
A deliberate arrangement of people to accomplish some specific purpose

Common Characteristics of Organizations

Have a distinct purpose (goal) Composed of people Have a deliberate structure

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Characteristics of Organizations

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The Changing Organization

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Why Study Management?

The Value of Studying Management
The universality of management
Good

management is needed in all organizations. either manage or are managed.

The reality of work

Employees

Rewards and challenges of being a manager

Management

offers challenging, exciting and creative opportunities for meaningful and fulfilling work. Successful managers receive significant monetary rewards for their efforts.

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Universal Need for Management

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Rewards and Challenges of Being A Manager

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Historical Background of Management

Ancient Management
Egypt (pyramids) and China (Great Wall)

Adam Smith
Published The Wealth of Nations in 1776
Advocated

the division of labor (job specialization) to increase the productivity of workers

Industrial Revolution
Substituted machine power for human labor Created large organizations in need of management
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Development of Major Management Theories

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Scientific Management
Fredrick Winslow Taylor
The father of scientific management Published Principles of Scientific Management (1911)
The

theory of scientific management

Using scientific methods to define the one best way for a job to be done: Putting the right person on the job with the correct tools and equipment. Having a standardized method of doing the job. Providing an economic incentive to the worker.

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Taylors Four Principles of Management

1. Develop a science for each element of an individuals work, which will replace the old rule-of-thumb method. 2. Scientifically select and then train, teach, and develop the worker (previously, workers chose their own work and trained themselves as best they could). 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers( previously. almost all the work and the greater part of the responsibility were thrown on the workers).
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General Administrative Theorists

Henri Fayol
Believed that the practice of management was distinct from other organizational functions Developed fourteen principles of management that applied to all organizational situations

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Fayols 14 Principles of Management

1. Division of work. 2. Authority. 3. Discipline. 4. Unity of command. 5. Unity of direction. 6. Subordination of individual interest to the interests of the organization. 7. 8. 9. Remuneration. Centralization. Scalar chain.

10. Order. 11. Equity. 12. Stability of tenure of personnel. 13. Initiative. 14. Esprit de corps.
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 Division of work. Specialization increases output by making employees more efficient. Authority. Managers must be able to give orders. Discipline. Employees must obey and respect the rules that govern the org. Unity of command. Every employees should receive orders from only one superior. Unity of Direction. The org. should have a single plan of action to guide managers and workers. Subordination of individual interest to the general interest. Remuneration. Workers must be paid a fair wage for their service.
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Centralization. Refers to the degree to which subordinates are involved in decision making Scalar Chain. The line of authority from top mgt. to the lowest ranks is the scalar chain. Order. People and materials should be in the right place right time. Equity. Managers should be kind and fair to their subordinates. Stability of tenure of personnel. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. Initiatives. Employees who are allowed to originate and carry out plans exert high levels of effort. Esprit de corps. Promoting team sprit will build harmony and unity with in the org.
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 Max Weber
Developed a theory of authority based on an ideal type of organization (bureaucracy)
Emphasized

rationality, predictability, impersonality, technical competence, and authoritarianism

Webers Ideal Bureaucracy

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The Contingency Approach

Contingency Approach Defined
Also sometimes called the situational approach. There is no one universally applicable set of management principles (rules) by which to manage organizations. Organizations are individually different, face different situations (contingency variables), and require different ways of managing.

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The Systems Approach

System Defined
A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

Basic Types of Systems

Closed systems
Are

not influenced by and do not interact with their environment (all system input and output is internal). interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

Open systems
Dynamically

The Organization as an Open System

Systems View of Organizations

The Hawthorne Experiments/ Studies

The important contribution to the human relations movement with in organisational behaviour came out of the Hawthorne studies under taken at the Western Electric companys Hawthorne works in Cicero, illinois. This study originally begun in 1924. Implication of the Hawthorne Studies With some limitations ( philosophical, theoritical and methodological), the Hawthorne studies did provide some interesting insights that contributed to a better understanding of human behaviour in organisation.

Implications of the Systems Approach

Coordination of the organizations parts is essential for proper functioning of the entire organization. Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. Organizations are not self-contained and, therefore, must adapt to changes in their external environment.

Current Trends and Issues

Globalization Ethics Workforce Diversity Entrepreneurship E-business Knowledge Management Learning Organizations Quality Management

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Current Trends and Issues (contd)

Globalization
Management in international organizations Political and cultural challenges of operating in a global market

Ethics
Increased emphasis on ethics education in college curriculums Increased creation and use of codes of ethics by businesses

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Current Trends and Issues (contd)

Workforce Diversity
Increasing heterogeneity in the workforce
More

gender, minority, ethnic, and other forms of diversity in employees that reflect differences. employees who work longer and do not retire

Aging workforce
Older The

increased costs of public and private benefits for older workers increasing demand for products and services related to aging ( entertainment, travel, health care, financial planning, home repair, and other professional services)
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An

Current Trends and Issues (contd)

Entrepreneurship Defined
The process whereby an individual or group of individuals use organized efforts to create value and grow by fulfilling wants and needs through innovation and uniqueness.

Entrepreneurship process
Pursuit of opportunities (e.g. Amazon.com.) Innovation in products, services, or business methods(e.g. Siddalape, Dineh Mohajer nail polishes) Desire for continual growth of the organization
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 E-Business (Electronic Business)

The work preformed by an organization using electronic linkages to its key constituencies E-commerce: the sales and marketing component of an e-business

Categories of E-Businesses
E-business enhanced organization E-business units within
traditional org. e.g. doing e.business partly.

E-business enabled organization- E.business tools and

applications used within traditional org. e.g. communicate through e.mail. .

Total e-business organization- Org.s entire work processes

revolve around e.business model. E.g. Amazon.com, Yahoo, E*trade, eBay.

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Types of E-Commerce Transactions

Business-to-Consumer B2C Selling Products and Services Online

Business-to-Business B2B Transactions Between Organizations

E. Commerce

Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries

Government to Business All transactions between companies and government organization

 Knowledge Management
The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.

Learning Organization
An organization that has developed the capacity to continuously learn, adapt, and change.

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 Quality Management
Inspired by the total quality management (TQM) ideas of W. Edwards Deming, and Joseph M. Juran (1950). A philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectations Quality is not directly related to cost

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What is Management Quality (TQM)? Intense focus on the customer

Concern for continual improvement

Very good is not good enough. Quality can

always be improved. Process-focused- focuses on work processes continually Improvement in the quality of everything the org. does.
It relates to not only to the final products but also to how the org. handles deliveries, how rapidly it responds to complaints, how politely phones are answered.

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 Accurate measurement

Uses statistical techniques to measure every critical variable in the organizations operations. These are compared against standards or bench marks to identify problems and eliminate their causes. are widely used in TQM programs as empowerment vehicles for finding and solving problems.

Empowerment of employees
Teams

Managing During Turbulent Times

Stay Calm Be Visible Put People Before Business Tell the Truth Know When to Get Back to Business

The Process of Management

Planning Select goals and ways to attain them Resources Human Financial Raw Materials Technological Information Leading Use influence to motivate employees Controlling Monitor activities and make corrections Organizing Assign responsibility for task accomplishment

Performance Attain goals Products Services Efficiency Effectiveness