Principle of Management

Management Overview

  • Definition of Management

    • Management is the process of getting things done effectively, efficiently, and with and through people.

    • Effectiveness: Doing the right things.

    • Efficiency: Doing things right.

Characteristics of Organizations

  • Definition of Organization

    • An organization is a deliberate arrangement of people brought together to accomplish a specific purpose.

  • Common Characteristics of Organizations

    • Goals

    • People

    • Structure

    • (Memorable acronym: GPS)

Management Levels and Titles

  • Different Management Levels

    • Top Managers: Make decisions about the direction of the organization.

    • Middle Managers: Manage other managers.

    • First-Line Managers: Direct non-managerial employees.

    • Team Leaders: Manage activities of work teams.

Managerial Functions

  • Four Functions of Management

    1. Planning

    • Defining goals, establishing strategy, developing plans to coordinate activities.

    1. Organizing

    • Determining what tasks are to be done, who is to do them, how tasks are grouped, who reports to whom, and decision-making responsibilities.

    1. Leading

    • Motivating employees, directing others' activities, selecting effective communication channels, resolving conflicts.

    1. Controlling

    • Monitoring performance, comparing it with goals, correcting deviations.

Management Process and Skills

  • Managerial Functions

    • Planning: Set goals, identify actions to achieve those goals.

    • Organizing: Determine tasks and group work, assign tasks to individuals.

    • Leading: Guide activities of members.

    • Controlling: Monitor performance, adjust as necessary to meet standards.

  • Types of Organizational Resources:

    • Human, monetary, raw materials, capital.

  • Managerial Effectiveness

    • Degree to which an organization achieves its goals.

  • Managerial Efficiency

    • Degree of resource utilization.

Skills Required for Managers

  • Key Managerial Skills:

    • Conceptual Skills: Ability to analyze and diagnose.

    • Interpersonal Skills: Ability to work well with others.

    • Technical Skills: Expertise in a specific job.

    • Political Skills: Ability to navigate and build a power base.

  • Classical View on Management Skills:

    • Technical Skills: Important for supervisory roles.

    • Human Skills: Equally important at all levels but most needed in middle management.

    • Conceptual Skills: Most vital for top management.

  • Contemporary View on Management Skills:

    • Task-related, people-related, and change-related skills.

  • Employability Skills:

    • Skills needed for managerial career success include:

    • Communication

    • Critical Thinking

    • Creativity

    • Collaboration

    • Personal Ethics

    • Adaptability

    • Social Responsibility

The Importance of Studying Management

  • Vested Interest: Understanding management enhances organizational management.

  • Management Relationships: Manager-employee relationships impact productivity and engagement.

Functions, Roles, and Skills of Managers

  • Role of Managers: Coordinate and oversee work to achieve organizational goals.

  • Functions of Management: Planning, organizing, leading, controlling.

  • Skills of Managers: Technical, human, conceptual, political.

Challenges Reshaping Management

  • Customer Service Connection: Employee behavior significantly affects customer satisfaction.

  • Social Media Influence: Essential for managing innovation.

  • Sustainability Goals: Organizations must integrate sustainability into business goals.

Organizational Theory

  • Scientific Management (Frederick W. Taylor): Utilizes the scientific method for optimal job performance.

  • Bureaucratic Organization (Max Weber): Characterized by a distinct hierarchy, rules, and regulations.

  • Administrative Theory (Henry Fayol):

    • Identified five functions and 14 principles of effective management.

Fayol's 14 Principles of Management

  1. Division of Work: Specialization increases output and efficiency.

  2. Authority: Managers have the right to give orders.

  3. Discipline: Employees must adhere to organizational rules.

  4. Unity of Command: Employees receive orders from one superior only.

  5. Unity of Direction: All activities should align with a single plan.

  6. Subordination of Individual Interest: Organizational goals take precedence over individual interests.

  7. Remuneration: Fair wages for services rendered.

  8. Centralization: Degree of subordinate involvement in decision-making.

  9. Scalar Chain: Clearly defined line of authority.

  10. Order: Placement of people and materials appropriately.

  11. Equity: Fairness and kindness in treatment of subordinates.

  12. Stability of Tenure: Importance of personnel planning for replacement.

  13. Initiative: Encouraging employees to originate plans boosts effort.

  14. Team Spirit: Promoting unity within organizations.

External Environment Factors

  • Political/Legal: Impact of laws on businesses.

  • Demographic: Trends related to population characteristics (age, race, etc.).

  • Economic: Interest rates, inflation, disposable income trends affecting business.

  • Sociocultural: Influences from societal values and trends.

  • Technological: Impact of innovations.

  • Global: Issues related to globalization.

Fundamentals of Entrepreneurship

  • Definition: The process of identifying, evaluating, and exploiting entrepreneurial opportunities.

  • Stages of the Entrepreneurship Process:

    1. Opportunity Identification

    2. Opportunity Evaluation

    3. Opportunity Exploitation

group development

forming

storming

norming

preforming

journey

Maslow hierarchy of Need

  • psychological

  • safety

  • belonging

  • esteem

  • self actualization

Managment Beliefs

  • Theory X:

  • Theory Y: Hands off approach