Principles of Management (MAS261)

Part 1: Management

• Organizations: Groups of individuals working together towards common goals.

  • Goals: Desired future conditions an organization aims to achieve.

  • Management: Process of utilizing organizational resources to meet goals through four key functions: Planning, Organizing, Leading, and Controlling.

Key Concepts in Management

• Resources: Include people, machinery, raw materials, information, skills, and financial capital.

• Managers: Responsible for supervising resource use to achieve organizational goals.

Achieving High Performance

• Organizations must provide desirable goods or services:

  • Example: Health care professionals aim to treat illnesses.

  • Example: Restaurants, such as Rose Joy, provide local and international dishes.

Organizational Performance

• Performance Measurement: Evaluates how efficiently and effectively managers use resources.

  • Efficiency: Assessing how resources are utilized to achieve a goal while minimizing inputs.

  • Effectiveness: Evaluates the appropriateness of selected goals and the extent of their achievement. Organizations become more effective by choosing the right goals and attaining them.

Managerial Functions

• Henri Fayol identified four essential managerial functions in the late 1800s:

  1. Planning: Setting goals and determining the best course of action.

  2. Organizing: Structuring relationships for efficient teamwork.

  3. Leading: Guiding and motivating employees towards goal attainment.

  4. Controlling: Monitoring progress and making adjustments to stay on track.

Detailed Functions of Management

• Planning:

  • Involves selecting goals and courses of action.

  • Effective planning involves three critical steps:

  1. Identifying which goals to pursue.

  2. Determining ways to achieve those goals.

  3. Allocating resources appropriately.

• Organizing:

  • Creating structures for working relationships among members of the organization.

  • Groups individuals into departments based on tasks.

  • Defines lines of authority and responsibilities, producing an organizational structure that motivates collaboration.

• Leading:

  • Defining direction and vision for employees.

  • Employing power, influence, and communication to foster motivation and commitment among team members.

• Controlling:

  • Evaluating organizational performance and implementing corrective actions.

  • Monitoring the performance of individuals and departments to ensure goals are being met successfully.

Management Levels

• Organizations typically have three management levels:

  1. Top Managers: Oversee all departments and set organizational goals.

  2. Middle Managers: Supervise first-line managers and allocate resources.

  3. First-line Managers: Manage day-to-day operations and directly supervise employees.

Skills Required at Different Management Levels

• Top Managers: Need Conceptual skills to understand complex scenarios.

• Middle Managers: Require strong Human skills to interact with employees across departments.

• First-line Managers: Must have Technical skills related to specific job tasks.

Organizational Restructuring Trends

• Downsizing: Cutting jobs to increase efficiency, which may negatively impact morale and service quality.

• Empowerment: Expanding the responsibilities of workers to make decisions.

• Self-managed teams: Teams are given autonomy to supervise their own actions and performance.

Managerial Roles (Mintzberg)

• Roles can be divided into three categories:

  1. Interpersonal Roles: Interacting with employees and external stakeholders.

  • Examples: Figurehead, Leader, Liaison roles.

  1. Informational Roles: Accessing and transmitting information necessary for management.

  • Examples: Monitor, Disseminator, Spokesperson roles.

  1. Decisional Roles: Making strategic choices and resource allocation.

  • Examples: Entrepreneur, Disturbance handler, Resource allocator, Negotiator roles.

Managerial Skills Overview

• Three essential skill sets:

  1. Conceptual Skills: Analyzing and diagnosing organizational situations.

  2. Human Skills: Understanding and influencing people's behavior.

  3. Technical Skills: Job-specific knowledge necessary for task performance.

Management Challenges

• Navigating an increasing number of global organizations.

• Developing competitive advantages through efficiency, quality, innovation, and responsiveness.

• Balancing ethical considerations while enhancing performance in a diverse workforce.

• Incorporating new technologies into management practices.