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Title: Understanding Management
Description: The notes will clear understanding of management and its four functions. Also discussed skyrocketing importance of management in organizations.
Description: The notes will clear understanding of management and its four functions. Also discussed skyrocketing importance of management in organizations.
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MANAGEMENT AND MANAGERS
Only 200 years ago, before the industrial revolution, the concept of professional
management and manager did not exist
...
These managers coordinate and control
organizational resources, lead their people into the future, and help their organization
s respond to everything from technological changes to social expectations
...
Who are these managers and what do they do? Thomas C
...
Anita Rodick, founder of Great Britain’s
fast-growing retail chain The Body Shop, keeps international employees and
customers environmentally conscious while selling personal care products
...
Whether the goal is to make money, to save lives, or
to serve citizens, management is the key ingredient in achieving any organization’s
success
...
Some early theorists viewed management
simply as the ability to work through others
...
Today, management can be defined as the process of achieving
organizational goals through planning, organizing, leading, and controlling the
human, physical, and financial and information resources of the organization in
effective and efficient manner
...
Therefore,
a manager is someone who actively participates in the management process through
the four functions of planning, organizing, leading, and controlling the resources of the
organization
...
Depending on their situation and on their resources, managers stress one or another
of the four management functions to accomplish their goals
...
Tony M
...
Harvey Mackay, Chairman and CEO of Mackay Envelope, focuses on leading and
motivating to build his business
...
Naturally, all of
these executives, and the managers at every level in every organization, shift their
focus from one management function to another as conditions dictate
...
Management involves working with
and through other people
...
That is one reason
management is as much an art as a science
...
As president of Romania’s
National Olympic Committee, she held provincial position that affected her country’s
entry into the 1992 Olympics
...
Among other tasks, she recommended the standards for team
athletes, facilitated the team’s training and travel funding, and recruited coaches and
trainers
...
Over the years, many management principles have been scientifically codified for
study and application
...
That’s why managers draw heavily on their
own experience as they balance the demands and opportunities of their jobs
...
MANAGEMENT AND ORGANIZATIONS
Wherever they live, whatever they do, organizations are part of people’s everyday lives
...
Whether they are run by the government, operated as a business, or
devoted to improving society, these organizations have a profound effect on everyone
...
Organization Defined
An organization is a group of people working together in a deliberately structured
situation to accomplish group goals
...
Obviously, not all organizations are alike, so to distinguish between
various types of organization, it is helpful to classify them according to their primary
purpose
...
Also, organizations can be categorized according to their
ownership as private sector (commercial businesses) or public sector (government)
organizations
...
Although most organization can be categorized according
to the dimensions of profit, goals and ownership, some organizations aren’t easily
classified because of mixed ownership or multiple goals
...
For-Profit and Not-for-Profit Organizations: A for-profit organization is an
organization that exists primarily to make money for its owners
...
Even when that don’t actually make a profit,
businesses still remain for-profit organizations because their goal is to be profitable
...
In
contrast, a not-for –profit organization primarily focuses on social, cultural, or political
goals rather than or making profits
...
Even though not-for-profit
organizations often sell goods and services and collect money from a variety of donors,
profit is not their objective
...
However this doesn’t imply that the line between forprofit and not-for-profit organization is absolutely clear
...
Manufacturing and Service Organization: A second way to classify
organization is according to their output of products, the goods or services they
produce
...
Goods are tangible, so they can be
touched, seen, measured, and otherwise physically evaluated by customers
...
In contrast, service organizations produce
services, activities that provide some value to the recipient such as financial, legal,
medical, or recreational benefits
...
Moreover,
services are generally produced at the same time the customer uses them, so they
cannot be stored
...
Manufacturing organizations often bundle services along with tangible item
they produce, just as service organizations frequently include goods in their service
offerings
...
The combination of goods and services produced by manufacturing and service
organizations determines the unique challenges faced by their managers
...
Organizations such as elementary schools
and prison systems are considered part of the public sector because they are
controlled by the government
...
On the other hand,
organizations such as manufacturing plants and stores are generally considered to be
in the private sector because they are under private rather than government control
...
Management and Organizational Goals
Managers in all types of organizations are expected to apply management functions
and techniques to achieve their organizations’ goals
...
Because their main goal is profit, the managers of for-
profit organizations find that they must pay close attention to the needs and wants of
their customers if they wish to make money
...
Even organizations in the public sector have customers in the sense that individuals
and other organizations benefit from the services these organizations provide
...
Public sector managers sometimes find managing more difficult than private sector
managers because their organizational goals are more ambiguous, often debatable and
sometimes conflicting
...
For instance, U
...
Also public sector managers often have difficulty gauging how
well they are achieving their goals, because some goals such as public safety or better
living standards are not easily measured
...
Organizational and personal performance:
Managers and organizations are continually evaluated to see how well they accomplish
organizational goals
...
compiles a yearly survey of America’s
fastest growing private companies; magazines rate international cities according to
cost of lodging or transportation
...
Effectiveness is the measure of whether an organization is accomplishing its goals
...
Efficiency is the measure of whether an organization is using the appropriate amount
of resources attaining its goals
...
To achieve high
performance, the organization must be both effective and efficient
...
Top managers are generally
measured on the basis of how well their organizations and activities that help the
organization achieve overall goals
...
When determining how well they have performed, managers must start by
understanding what customers or constituents expect
...
Drucker
...
THE MANAGEMENT PROCESS AND THE NATURE OF
MANAGERIAL WORK
Management is composed of four basic functions that help managers achieve
organizational goals
...
Management Functions
The management process consists of four functions: planning, organizing, leading, and
controlling
...
Although society and business have both changed dramatically since these
basic functions were first proposed in 1916, with updated interpretations, they remain
the most popular approach to studying management
...
When
planning, management looks at where the organization should be in the future,
considers alternative strategies for getting there, and then select and implement the
best set of actions
...
Organizing: The second management function is organizing, which involves
establishing maintaining or changing a structure to accomplish the organization’s
goals, to define and assign tasks, and to coordinate people, and resources
...
Leading: The third management function is leading, the process of influencing and
motivating others to work together to achieve organizational goals
...
Controlling: The fourth management function is controlling, which involves setting
the standards, monitoring the progress, and making the adjustment needed to keep
the organization focused on its goals
...
The Nature of Managerial Work
Whether they are presidents, deans, or supervisors, all managers perform tasks that
can be described and analyzed to one degree or another
...
During the past two
decades, researchers have developed additional frameworks to supplement the
traditional four-pronged management model and to clarify the nature of managerial
activities
...
Fast pace, long hours: Managers, especially top managers, work at an
unrelenting pace
...
Brevity, variety, and discontinuity: In contrast to the image of managers
concentrating on a few key problems
...
Although additional research has shown that not all managerial jobs fall into
this pattern, Mintzberg’s description fits the workday of many managers
...
Managers favor spoken
communication because they can obtain up-to-date information and because
many of their contacts do not put all the details on paper
...
He argued that all managers take on
these behavior patterns, or roles, in order to be effective in their jobs
...
Category
Role
Figurehead
x
Interpersonal roles
Leader
Liason
Types of activities
Cermonial and symbolic duties
Hire, train, motivate and coordinate
others
Develop relatiops with other outside
work unit
Category
Role
M onitor
Informational roles
Disseminator
Spokesperson
Entrepreneur
Disturbance
handler
Decisional roles
Resource
allocator
Negotiator
Types of activities
Gather information from various
sources
Transmit information to other
managers
Transmit information to people
outside the organization
Initiate change to improve units or
find opportunities
Make changes to resolve
unanticipated problems
Decide which managers and projects
will receive resources and in what
proportion
Bargain with people outside the unit
to support goals
Interpersonal Roles: Three management roles flow directly from the authority of
the manager’s position in the organization
...
Interpersonal roles include the
manager as figurehead, the manager as leader and the manager as liaison
...
Serving as a figurehead, the manager may present awards or entertain
important customers
...
Liaison: The third interpersonal role a manager performs is a role of liaison,
building relationship with people outside the manager’s own unit
...
So important are interpersonal roles that some managers devote a large portion of
their working days to these roles
...
Mintzberg observed that a large part of
managers’ job is devoted to informational roles in which the manager acquires,
processes, and communicates information
...
They also talk with people they meet in their liaison roles, and they
interact with the people who work in their own units
...
Disseminator: In the role of disseminator, managers share and distribute the
information they have acquired
...
Spokesperson: The third informational role is the role of spokesperson, in
which the manager provides information to people outside the organization
...
Decisional Roles: Some of the most important roles that managers play are
decisional roles, in which they examine alternatives and then make choices and
commitments
...
Mintzberg identified
four decisional roles: entrepreneur, disturbance handler, resource allocator, and
negotiator
...
These changes may involve new products, new processes, or solution to
problems
...
In this role, managers make changes to solve
unanticipated that result from forces beyond their control
...
In the role of resource allocator, managers
make choices about how many people, how much money and how much of the
available materials will be used to achieve the organization’s goals
...
Negotiator: The negotiator role involves bargaining with others to support the
organization’s goals
...
Mentoring: Most successful managers will agree that having a mentor is one of
the keys to managerial success
...
Mentors obviously contribute to the professional development of the people they
support, and they help smooth the way for these people to advance in the
organization
...
There is no substitute for hands on experience after all the
classroom lectures, new managers need the practical experience of applying
what they have learned to the challenge of real life situations
...
For instance, some new
managers join small businesses rather than large corporations because to gain
experience in many areas and hold the great deal of responsibility early in their
careers
...
Another key to
executive suite seem to be extensive experience within one organization
...
5 years at their companies when they step into the CEO position
...
The Lesson of Success and Failure
Success and failure represent more than just positive or negative results; both offer
wonderful opportunities for learning more about management
...
Over and over again some of the leading companies in the world
encourage their managers to try new ideas and behaviors that may not work out - at
least not the first time around
...
CONTEMPORARY MANAGEMENT CHALLENGES
It’s clear that managers face a wide variety of hurdles as they work to achieve their
goals
...
Productivity: Managers of large and small organizations around the world
today are grappling with the issue of how to improve productivity
...
S productivity increases, particularly
in manufacturing, so U
...
Quality: More than just a business buzzword, quality represents the
determination of an organization to satisfy its customers or constituents
...
S companies have for some time been experiencing a quality
crisis, so their customers often turn elsewhere for quality products and
services
...
Customer Satisfaction: Closely related to quality is customer satisfaction,
discussed earlier in the context of performance
...
In the future, managers will continue to
struggle with the issues of defining, measuring, and achieving long-term
customer satisfaction
Title: Understanding Management
Description: The notes will clear understanding of management and its four functions. Also discussed skyrocketing importance of management in organizations.
Description: The notes will clear understanding of management and its four functions. Also discussed skyrocketing importance of management in organizations.