A

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.