P.O.M CHAPTER 2

Introduction to Principles of Management

• Subject Name: Principles of Management

• Code: BBA 1133

• Credit Hours: 3

• Institution: Lincoln University College

Organizations and Management

• Organizations: Groups of people coordinating their actions to achieve specific goals.

• Goal: A desired future condition organizations seek to attain.

• Management: Using organizational resources to achieve goals through four key functions:

  • Planning

  • Organizing

  • Leading

  • Controlling

Organizational Performance

• Performance Measurement: Assesses how efficiently and effectively resources are utilized to satisfy customers and achieve goals.

  • Efficiency: Degree to which resources are minimized to achieve the same goal.

  • Effectiveness: Appropriateness of chosen goals and the extent to which they are achieved; organizations are effective when the right goals are met.

Managerial Functions (Henri Fayol)

• Fayol outlined four essential functions managers must perform:

  1. Planning: Defining objectives and outlining steps.

  2. Organizing: Arranging resources and tasks.

  3. Leading: Motivating and directing employees.

  4. Controlling: Monitoring and adjusting to ensure goals are met.

Levels of Management

• Organizations typically consist of three levels of management:

  1. Top Managers: Oversee the entire organization and establish goals.

  2. Middle Managers: Supervise first-line managers and manage departmental goals.

  3. First-line Managers: Direct day-to-day operations and workers involved in production/services.

Managerial Roles (Mintzberg's Framework)

• Role Definition: A set of specific tasks attributed to a managerial position.

• Three broad role categories:

  1. Interpersonal Roles: Involves interaction with others.

  2. Informational Roles: Focused on information management.

  3. Decisional Roles: Involves decision-making and resource allocation.

Interpersonal Roles

• Figurehead Role: Represents the organization symbolically.

• Leader Role: Trains, mentors, and encourages employee performance.

• Liaison Role: Connects various stakeholders within and outside the organization.

Informational Roles

• Monitor Role: Gathers and analyzes relevant information.

• Disseminator Role: Shares information to influence employee behavior.

• Spokesperson Role: Communicates organizational information to external stakeholders.

Decisional Roles

• Entrepreneur Role: Initiates and invests in new projects.

• Disturbance Handler Role: Manages crises or unexpected challenges.

• Resource Allocator Role: Distributes resources and sets budgets for departments.

• Negotiator Role: Facilitates negotiations between various parties.

Managerial Skills

• Effective managers need to develop three key skill sets:

  1. Conceptual Skills: Analyzing situations to discern cause and effect.

  2. Human Skills: Managing and leading people effectively.

  3. Technical Skills: Specialized knowledge relevant to specific tasks (e.g., marketing, accounting).

• Skills can be improved through training, reading, and practical experience.

Skill Levels Required for Managers

• Skills requirement varies according to manager level:

  • Top Managers: Strong conceptual skills predominately, while technical skills less emphasized.

  • Middle Managers: Blend of all three skill types required.

  • First-line Managers: Technical skills are critically important.