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ORGANIZTION
A consciously coordinated social unit, composed of two or more people, that functions on a
relatively continuous basis to achieve a common goal or set of goals.
The place where the managers work--- the organization
Managers get things done through other people. They make decisions, allocate resources,and
direct the activities of others to attain goals.
Management : If you don’t know where you are going any road will get you there.
Since organization exist to achieve goal/s, someone has to to define those goals and the means
by which they can be achieved. Management is that someone.
The Environment : The organizations nowadays working or performing in a very topsy and turvy
world. So it is very essential to understand, analyze and manage the changes that the
organizations face today.
•
Organizations are neither self sufficient nor self contained. Rather they exchange resources with , and
dependent upon the external environment.
•
Organizations take inputs(raw materials, money, labour, and energy) from external environment,
transform them into product or service and then send them back to the external environment.
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The external environment has both Direct and Indirect action elements.
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Direct action elements are called stakeholders, which includes shareholders, Unions, suppliers and many
others who directly influence the organization.
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Indirect action elements such as technology, political , economic and social environment in which the
organization operates
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Elements of the Direct Action Environment
a) External Stakeholder:- Such as group of unions, suppliers , competitors, special interest group, govt
agencies etc.
b) Internal Stakeholders:- Includes employees, shareholders, board of directors
Technological
Variables
Social Variables
Competitors
Customer
Employee
Financial
Institute
Suppliers
The
Organization
Labor
Union
Shareholders & Board of
Directors
The Media
Special Interest
Govt
group
Economic Variables
Internal
Stakeholders
Political Variables
External
Stakeholders
Indirect Action Elements
(PEST)
MANAGEMENT:
There are huge differences of opinion and controversies around the concept of management, by
different schools. These schools range from the operational school to the mathematical
school, the human behaviour school, the system school and the decision theory school.
Earlier defination of Management: Management can be defined as a dynamic process that help
to get things done through and with the effort op people.
But this definition is inadequate, since in the competitive world, management as a process helps
in optimizing scarce resources
The defination of management can be catagorized into different approaches according to their
different dimensions and orientation pioneered by different management gurus. They are
like Productivity orientation, Human relations orientations, Decision making orientation,
Leadership orientation, Process orientation.
Understanding the dimensions of management in the different definitional context helps to
develop a holistic, all-inclusive, and all purposive definition.
Thus management can be defined as the optimisation of constraining resources to achieve
intended goal or set of goals
•
RESOURCES :
•
•
THE 4M
: Men, Money, Material, Machine
Resource is a broad term and it encompasses everything that one require as inputs(
including knowledge and information inputs
The list is extending now
People
Intellectual Porperty
Information
Organizational cherecteristics
Technology
Time
Customers
Suppliers
Plant and Equipments
Facilities
Finance
CHARACTERISTICS OF MANAGEMENT
Management is characterised by the following features
1) Management is organized activities : It is an activity of getting things done through others. It involves
coordinated effort of a group of people towards a common end or goal.
2)
Management is aligned with organizational objectives :
3)
Management optimizes constraining resources :
4)
Management works with and through people. : An organization is not just brick and mortar, nor is it just
system and structure. It consists of its people
5)
Management is decision making : One of the most important task of a manager is decision making
6)
Management is a science as well as art
7)
Management is universal : Management is required for every type of organization.
8)
Management is intangible : Management is a structured approach encompassing different fields like
political science, economics and even engineering. Inputs from all these disciplines have strengthened
management and managerial functions.
9) Management is a social process : As a social process, management has to be responsive to
social needs. The social responsibility of an organization is now a well developed concept that
requires management to take input from society and give output to society. Efficient
management through proper utilization of resources of society can improve the quality of
life.
10) Management is a system of authority
11) Management is dynamic :
12) Management principles are relative and not absolute : The application of management
principles depends on situation. Every organization may have a situation differentfrom that of
others.
13) Management is a profession
14) Management is a strategic function : Every organization has to move strategically to chart
their action plan in order to sustain their competitive edge in a changing environment.
Importance of management
1) It optimizes use of scarce resources : Management helps an organizationutilise its scarce
resources( human, physical and financial) efficiently.
2) It ensures effective leadership and motivation
3)It promotes harmony among industrial relations.
4) It facilitates achievement of goals.
5) It facilitates change and growth.
6) It enhance quality of life
7) It improves productivity.
8) It contributes to organizational competitiveness.
9) It developes professionalism
What Managers Do( Different roles performed by managers)
According to Mintzberg managers perform 10 different but highly related roles. These
10 roles can be grouped under three primary headings
Interpersonal relationship, the transfer of information, and decision making.
INTERPERSONAL
i) Figurehead
10) It contributes to organizational growth.
MANAGERIAL SKILLS
(By Robert L . Katz
Managerial skills has special reference to the levels of management. The need to
exercise these skills depending on the organizational levels can be understood
through the following figure
TOP
MIDDLE
LOWER
Conceptual Skill : These skills refers to mental ability of managers to co-ordinate and
integrate the organization’s internal environment with it’s external environment.
This skill means the ability to see the organization as a whole and it includes
recognizing how the various functions of the organization depends on one
another. It makes the individual aware how changes in any part of the organization
affect all the others. One’s success as a manager heavily depends on his/her
conceptual skill or creative ability to perceive and respond to the direction in
which the business should grow. Top level managers use the conceptual skill to
deal with the environmental demands.
Human skill : Human skill is the managers ability to work effectively as a group
member and to build cooperative effort within the team he/she leads.
Technical skill : It implies an understanding of, and proficiency in, a specific kind of
activity. It is the ability to work with resources in particular area of expertise.
Managers at the lower levels possess higher degree of technical skill.
Levels of Management :
TOP LEVEL(Top Managers)
Chairman of the Board, President
CEO, Chief Operating Officer, Vice
President
Establish objectives, policy and
strategies, make long term
decisions
MIDDLE LEVEL(Middle Managers)
Divisions Directors, Area Managers,
Plan Managers, Department
Managers
Interpret directives given by
top management into
operating plans and make
implementation decision
First-line Management(
Supervisory Managers)
Direct and support work of
non-managerial personnel's;
make short term decisions at
the operational level
WHAT MANAGERS DO
Managers are organizational planners, organisers, leaders, and, of course, controller.
However , every managers assumes a much wider range of roles to move the
organization towards its declared objectives. In fact, the manager performs the
following additional functions.
1) Firstly, the manager assumes responsibility ; The manager is assigned a specific
task. He must see to it that these tasks are accomplished successfully. A manager is
usually evaluated on the basis of how well he(she) organizes these tasks to be
fulfilled. Moreover, since the manager has to work through subordinates, he/she is
held responsible for the actions of subordinates.
2) Secondly, the manager has to achieve a balance among competing( and often
conflicting) goals : At a particular point of time, a manager is usually faced with
diverse organizational goals, problems and needs. All these compete for the
managers valuable time and resources. Since the total stock of resources of an
organization is much less than the total demand for resources, each manager must
strike a balance between diverse goal and needs. He also has to decide who is to
perform a particular task, assigning each task to the most competent person.
3) The manager is a conceptual thinker : A manager is basically a n analytical thinker.
He must be able to think a specific, concrete problem through and must suggest a
feasible solution to it. But what is more important is a he also a conceptual thinker.
He must so work as to achieve not only goals of his own unit or division but also
the larger organizational goals
4) The manager works with and through other people : These people refer not only
subordinates and supervisors but also his/her peers.
5) The manager also acts as a channel of communication within the organization :
Managers often work together to assist one another on a reciprocal basisby
providing accurate information needed to perform the tasks. Managers also find it
necessary to work out plans to achieve them.
6) The manager is a mediator : Since organizations consist of human beings, there is
often interaction among them. This, in turn, often leads to disagreement among
efficient people. If there is dispute within a division or organization the moral of
the employee is likely to be impaired and the productivity of the total organization
is likely to suffer. So the manager has to settle a dispute as and when it occurs. A
good manager is a harbour in the storm of office work. A bad manager is a storm
in the harbour
7) The Manager is a politician : Politics is the art of possible, while management is the
art of business realism. It is one of the tasks of manager to use, like a politician,
the art of persuasion and compromise to achieve organizational goals.
8) The manager is a diplomat : The manager is supposed to be an official
representative of his/her division or department at organizational meetings. He is
also considered to be the representative of the whole organization when he deals
with clients, customers, suppliers, govt departments and with other organizations.
9) The manager makes difficult decisions : Organization donot always run smooth.
There are always problems of different types. It is the task of the manager to come
up with effective solutions to difficult problems.
Managerial Roles
According Henry Mintzberg managers perform 10 different but highly interrelated
roles. The term managerial roles refers to specific categories of managerial
behaviour. These 10 roles can be grouped under three primary headings:
interpersonal relationship, the transfer of information, and decision making. The
formal authority granted to managers by the organization is accompanied by a
certain degree of status.
There are three interpersonal roles, three informational roles and four decisional
roles.
FORMAL
AUTHORITY
STATUS
Provide Managers with
Interpersonal roles
1.Figurehead
2 Leader
3 Liaision
Informational roles
1Monitor
1. Disseminator
3. Spokesperson
Decisional roles
1.Entrepreneur
2. Disturbance handler
3.Resource allocator
4. Negotiator
ROLE
Interpersonal
Figurehead -------------------------
DESCRIPTION
Symbolic head, obliged to perform
a number of routine duties of a
legal or social nature -----------------
IDENTIFIABLE
ACTIVITIES
Greeting visitors, signing
legal documents.
Leader ------------------------------
Responsible for the motivation Performing virtually all the
and activation of employees, activities that involve
responsible for staffing, training employees
and associated duties. ----------------
Liaison
Maintains self development
network of outside contacts and
informers who provide favors and
information. ----------------------------
INFORMATIONAL
Monitor ----------------------------
Acknowledging mail, doing
external
board
work,
performing other activities
that involve outsiders
Seeks and receives wide Reading periodicals and
variety of special information reports, maintaining
to develop through understanding personal contact.
of organization and environment,
emerges as nerve center of
internal and external information
about the organization.
ROLE
Informational
Disseminator ----------------------
DESCRIPTION
Transmits
IDENTIFIABLE ACTIVITIES
information Holding informational
received
from
other meetings, making phone calls
employees to members of the to relay information.
organization
Spokesperson
Decisional
Entrepreneur ----------------------
Disturbance handler
Transmits
information
to Holding board meetings, giving
outsiders on organizations information to the media.
plans, policies, actions, results
etc; serves as expert on
organization’s
Searches organization and its
environment for opportunities
and initiates “improvement
projects” to bring about
change, supervises design of
certain projects as well.
Organizing strategy and
review sessions to develop
new programs.
Responsible for corrective
action when organization
faces important disturbances.
Organizing strategy and
review sessions that involve
disturbances and crises.
ROLE
DESCRIPTION
Resource allocator
Responsible for the
allocation of organizational
resources of all kinds.
Negotiators
Responsible for
representing the
organization at major
negotiations
IDENTIFIABLE ACTIVITIES
Scheduling, requesting,
authorization, performing
any activity that involves
budgeting and the
programming of
employees’ work.
Participating in union
contract negotiations or in
those with suppliers
IMPORTANCE OF ROLES
ROLE PLAYED BY MANAGERS IN SMALL
FIRMS
Spokeperson
Entrepreneur
Figurehead
Leader
Disseminator
ROLE PLAYED BY MANAGERS IN LARGE
FIRMS
High
Moderate
Low
Resource allocator
Liaison
Monitor
Disturbance handler
Negotiator
Entrepreneur