MB0038-Unit-01-Management Process

Unit-01-Management Process Structure 1.1 Introduction Learning Objectives 1.2 Definition and Concept Management 1.3 Characteristics of Management 1.4 Management unctions !"anning Organi#ing Leading Contro""ing 1.$ Management %o"es and &'i""s
1.6 Effective vs. Successful Managerial Activities

1.( &ummar) 1.* +ermina" ,uestions 1.- .ns/ers 1.1 Intro uction Management is a g"oba" need. It is essentia" to ever) individua"0 a fami")0 educationa" institution0 hospita"0 re"igious organi#ations0 team of p"a)ers0 a government0 mi"itar) s)stems0 cu"tura" bod)0 urban centers and business enterprises. 1ver)one comes across some or the other management functions in their da) to da) pursuits. 2henever0 there is an organi#ed group of peop"e /or'ing to/ards a common goa"0 some t)pe of management is needed. . business enterprise must be directed and contro""ed b) a group of peop"e to achieve its goa"s. +he resources of mone)0 manpo/er0 materia" and techno"og) /i"" be /aste un"ess the) are out to /or' in a co3ordinated manner. It is the 4management5 /hich uses the avai"ab"e resources in such a manner that a business enterprise is ab"e to earn 4surp"us5 to meet the needs of gro/th and e6pansion.

Management is re7uired to p"an0 organi#e0 co3ordinate and contro" the affairs of a business concern. It brings together a"" resources and motivates peop"e to achieve the objectives of a business enterprise. .n effective and efficient manager therefore0 shou"d focus on t/o 'e) resu"ts. +he first is task performance8the 7ua"it) and 7uantit) of the /or' produced or the services provided b) the /or' unit as a /ho"e. +he second is human issues8ho/ peop"e fee" about their /or' and the /or' setting0 their re"ationships /ith each other0 attitude and va"ues. .n understanding of the basis management functions he"ps in comprehending the 'e) ro"es managers need to p"a) to run organi#ations effective"). !earning o"#ectives .fter stud)ing this unit )ou shou"d be ab"e to9 1. 16p"ain the definitions and concept of management. 2. Identif) the characteristics of management 3. Discuss the functions of management. 4. Describe the ro"es and s'i""s of managers. 1.$ %efinition an &once't of Management Management ma) be defined in man) different /a)s. Man) eminent authors on the subject have defined the term :management;. &ome of these definitions are9 .ccording to La/erence .. .pp"e) 8 :Management is the deve"opment of peop"e and not the direction of things.;<1-$-= In the /ords of >enr) a)o" 8 :+o manage is to forecast and to p"an0 to organi#e0 to command0 to co3ordinate and to contro".;<1-4-= .ccording to !eter . Druc'er 8 :Management is a mu"ti3purpose organ that manages a business and managers and manages /or'er and /or';.<1-(?= In the /ords of @oont# and O5Donne" 8 :Management is defined as the creation and maintenance of an interna" environment in an enterprise /here individua"s /or'ing together in groups can perform efficient") and effective") to/ards the attainment of group goa"s;. <1-(2= .ccording to Ae/man0 &ummer and 2arren 8 :+he job of management is to ma'e co3 operative endeavor to function proper"). . Manager is one /ho gets things done b) /or'ing /ith peop"e and other resources.;<1-$-=

rom the definitions 7uoted above0 it is c"ear that :management; is a techni7ue of e6tracting /or' from others in an integrated and co3ordinated manner for rea"i#ing the specific objectives through productive use of different resources. Mobi"i#ing the ph)sica"0 human and financia" resources and p"anning their uti"i#ation for business operations in such a manner as to reach the defined goa"s can be referred to as :management;. &once'ts of Management( In the /ords of Beorge %. +err) 8 :Management is a distinct process consisting of p"anning0 organi#ing0 actuating and contro""ing performed to determine and accomp"ish the objectives b) the use of peop"e and resources.;<1-$3= Management as a !rocess9 It invo"ves a series of interre"ated functions of getting the objectives of an organi#ation and ta'ing steps to achieve that objective. +he management process inc"udes9 p"anning0 organi#ing0 staffing0 directing0 contro""ing0 deciding and eva"uating. +he process invo"ves different imp"ications "i'e9 1. &ocia" !rocess9 Interaction /ith peop"e to achieve the goa". 2. Integrated !rocess9 Management bring human0 ph)sica"0 financia" resources together to put into effect. It integrates human efforts to maintain harmon) among them. 3. Continuous !rocess9 It is a continuous process of identif)ing and so"ving prob"ems ti"" the goa" is achieved. 4. Interactive !rocess9 It re7uires interaction /ith interna" and e6terna" factors. Self Assessment )uestions 1. :Management is the deve"opment of peop"e and not the direction of things.;+his definition is given b) CCCCCCCCCCC 2. :Management is a distinct process consisting of p"anning0 organi#ing0 actuating and contro""ing performed to determine and accomp"ish the objectives b) the use of peop"e and resources.;.+his definition /as given b) +err) in CCCCCCCCC. 1.3 &*aracteristics of Management Management is a distinct activit) having the fo""o/ing sa"ient features or characteristics9 1. +oal-oriente ( Management is a purposefu" activit). It co3ordinates the efforts of emp"o)ees to achieve the goa"s of the organi#ation. +he success of management is measured b) the e6tent to /hich the organi#ationa" goa"s are achieved. It is imperative that the organi#ationa" goa"s must be /e""3defined and proper") understood b) the mangers at various "eve"s.

2. Economic ,esource( Management is one of the factors of production together /ith "and0 "abour and capita". It is the most critica" input in the success of an) organi#ed group activit). It is the force /hich assemb"es and integrates other resources0 name")0 "abour0 capita" and materia"s. +hese factors do not b) themse"ves ensure production0 the) re7uire the cata")st of management to produce goods and services re7uired b) the societ). +hus0 management is an essentia" ingredient of an organi#ation. 3. %istinct Process( Management is a distinct process consisting of such functions as p"anning0 organi#ing0 staffing0 directing and contro""ing. +hese functions are so inter/oven that it is not possib"e to "a) do/n e6act") the se7uence of various functions or their re"ative significance. In essence0 the process of management invo"ves decision3 ma'ing and putting of decisions into practice. 4. Integrative -orce( +he essence of management is integration of human and other resources to achieve the desired objectives. ."" these resources are made avai"ab"e to those /ho manage. Managers app") 'no/"edge0 e6perience and management princip"es for getting the resu"ts from the /or'ers b) the use of non3human resources. Managers a"so see' to harmoni#e the individua"s5 goa"s /ith the organi#ationa" goa"s for the smooth /or'ing of the organi#ation. $. Intangi"le -orce( Management has been ca""ed an unseen force. Its presence is evidenced b) the resu"t of its efforts3order"iness0 informed emp"o)ees0 buo)ant spirit and ade7uate /or' output. +hus0 fee"ing of management is resu"t3oriented. One ma) not see /ith the na'ed e)es the functioning of management but its resu"ts are apparent") 'no/n. !eop"e often remar' of the effectiveness <or ineffectiveness= of management on the basis of the end resu"ts0 a"though the) can5t observe it during operation. D. ,esults t*roug* .t*ers( +he managers cannot do ever)thing themse"ves. +he) must have the necessar) abi"it) and s'i""s to get /or' accomp"ished through the efforts of others. +he) must motivate the subordinates for the accomp"ishment of the tas's assigned to them. (. A Science an an Art( Management has an organi#ed bod) of 'no/"edge consisting of /e""3defined concepts0 princip"es and techni7ues /hich have /ide app"ications. &o it is treated as a science. +he app"ication of these concepts0 princip"es and techni7ues re7uires specia"i#ed 'no/"edge and s'i""s on the part of the manager. &ince the s'i""s ac7uired b) a manager are his persona" possession0 management is vie/ed as an art. *. S/stem of Aut*orit/( Management as a team of managers represents a s)stem of authorit)0 a hierarch) of command and contro". Managers at different "eve"s possess var)ing degrees of authorit). Benera"")0 as /e move do/n in the manageria" hierarch)0 the degree of authorit) gets gradua"") reduced. .uthorit) enab"es the managers to perform their functions effective"). -. Multi- isci'linar/ Su"#ect( Management has gro/n as a fie"d of stud) <i.e. discip"ine= ta'ing the he"p of so man) other discip"ines such as 1ngineering0

.nthropo"og)0 &ocio"og) and !s)cho"og). Much of the management "iterature is the resu"t of association of these discip"ines. or instance0 productivit) orientation dre/ its inspiration from Industria" 1ngineering and human re"ations orientation from !s)cho"og). &imi"ar")0 &ocio"og) and Operations %esearch have a"so contributed to the deve"opment of management science. 1?. Universal A''lication( Management is universa" in character. +he princip"es and techni7ues of management are e7ua"") app"icab"e in the fie"ds of business0 education0 mi"itar)0 government and hospita". >enri a)o" suggested that princip"es of management /ou"d app") more or "ess in ever) situation. +he princip"es are /or'ing guide"ines /hich are f"e6ib"e and capab"e of adaptation to ever) organi#ation /here the efforts of human beings are to be co3ordinated. Self Assessment )uestions 3. CCCCCCCCCCCCCCC is one of the factors of production together /ith "and0 "abour and capita". 4. Management is a CCCCCCCC consisting of such functions as p"anning0 organi#ing0 staffing0 directing and contro""ing. 1.0 Management -unctions o""ett <1-33= defined management as Ethe art of getting things done through peop"eE. One can a"so thin' of management functiona"")0 as the action of measuring a 7uantit) on a regu"ar basis and of adjusting some initia" p"an. Management functions are as fo""o/s < a)o"0 1-4-=9 1. !"anning 2. Organi#ing 3. Commanding 4. Coordinating $. Contro""ing >o/ever0 in recent time0 management functions have been regrouped into four categories0 since the manageria" tas's have become high") cha""enging a f"uid in nature ma'ing distinctions redundant to a certain e6tend. +he four functions are as fo""o/s9

-ig. 1.1( Management -unctions 1. !"anning 2. Organi#ing 3. Leading 4. Contro""ing 1.0.1 Planning It invo"ves the process of defining goa"s0 estab"ishing strategies for achieving these goa"s0 and deve"oping p"ans to integrate and coordinate activities. 1ver) organi#ation needs to p"an for change in order to reach its set goa". 1ffective p"anning enab"es an organi#ation adapt to change b) identif)ing opportunities and avoiding prob"ems. It provides the direction for the other functions of management and for effective team/or'. !"anning a"so enhances the decision3ma'ing process. ."" "eve"s of management engage in p"anning in their o/n /a) for achieving their preset goa"s. !"anning in order to be usefu" must be "in'ed to the strategic intent of an organi#ation. +herefore0 p"anning is often referred to as strategic in nature and a"so termed as strategic p"anning. Strategic Planning( +op "eve" managers engage chief") in strategic p"anning or "ong range p"anning Strategic 'lanning is the process of deve"oping and ana")#ing the organi#ation5s mission0 overa"" goa"s0 genera" strategies0 and a""ocating resources. +he tas's of the strategic p"anning process inc"ude the fo""o/ing steps9 1. Define the mission: . mission is the purpose of the organi#ation. +hus0 p"anning begins /ith c"ear") defining the mission of the organi#ation. +he mission statement is broad0 deconcise0 summari#ing /hat the organi#ation does. . mission statement shou"d be short 8 and shou"d be easi") understood and ever) emp"o)ee shou"d idea"") be ab"e to narrate it from memor). .n e6p"icit mission guides emp"o)ees to /or' independent") and )et co""ective") to/ard the rea"i#ation of the organi#ation5s potentia". +he mission statement ma) be accompanied b)

an overarching statement of phi"osoph) or strategic purpose designed to conve) a vision for the future as envisaged b) top management. 2. Conduct a situational or SWOT analysis +he &2O+ .na")sis is one of severa" strategic p"anning too"s that are uti"i#ed b) businesses and other organi#ations to ensure that there is a c"ear objective defined for the project or venture0 and that a"" factors re"ated to the effort0 both positive and negative0 are identified and addressed. In order to accomp"ish this tas'0 the process of &2O+ invo"ves four areas of consideration9 strengths0 /ea'nesses0 opportunities0 and threats. It shou"d be noted that /hen identif)ing and c"assif)ing re"evant factors0 the focus is not just on interna" matters0 but a"so e6terna" components that cou"d impact the success of the project. (SWOT is discussed in detail in Exhibit 1.1) 3. Set goals and objectives &trategic goa"s and objectives are deve"oped to fi"" the gap bet/een current capabi"it) and the mission. +he) are a"igned /ith the mission and form the basis for the action p"ans of an organi#ation. Objectives are a"so ca""ed performance goa"s. Benera"")0 organi#ations have "ong3term objectives for factors such as0 return on investment0 earnings per share0 etc. It a"so he"ps in setting minimum acceptab"e standards or common3sense minimums. %evelo' relate strategies 1tactical an o'erational2 +actica" p"ans are based on the organi#ation5s strategic p"an. In turn0 operationa" p"ans are based on the organi#ation5s tactica" p"ans. +hese are specific p"ans that are needed for each tas' or supportive activit) comprising the /ho"e. &trategic0 tactica"0 and operationa" p"anning must be accompanied b) contro"s to ensure proper imp"antation of the p"ans0 necessar) to maintain competitive advantage in the said mar'et. Monitor t*e 'lan . s)stematic method of monitoring the environment must be adopted to continuous") improve the strategic p"anning process. +o deve"op an environmenta" monitoring procedure0 short3term standards for 'e) variab"es that /i"" tend to va"idate and support the "ong3range estimates must be estab"ished. eedbac' is encouraged and incorporated to determine if goa"s and objectives are feasib"e. +his revie/ is used for the ne6t p"anning c)c"e and revie/. 1.0.$ .rgani3ing It invo"ves designing0 structuring0 and coordinating the /or' components to achieve organi#ationa" goa". It is the process of determining /hat tas's are to be done0 /ho is to do0 ho/ the tas's are to be grouped0 /ho reports to /hom0 and /here decisions are to be made. . 'e) issue in accomp"ishing the goa"s identified in the p"anning process is structuring the /or' of the organi#ation. Organi#ations are groups of peop"e0 /ith ideas

and resources0 /or'ing to/ard common goa"s. +he purpose of the organi#ing function is to ma'e the best use of the organi#ation5s resources to achieve organi#ationa" goa"s. Organi#ationa" structure is the forma" decision3ma'ing frame/or' b) /hich job tas's are divided0 grouped0 and coordinated. orma"i#ation is an important aspect of structure. It is the e6tent to /hich the units of the organi#ation are e6p"icit") defined and its po"icies0 procedures0 and goa"s are c"ear") stated. It is the officia" organi#ationa" structure conceived and bui"t b) top management. +he forma" organi#ation can be seen and represented in chart form. .n organi#ation chart disp"a)s the organi#ationa" structure and sho/s job tit"es0 "ines of authorit)0 and re"ationships bet/een departments. +he steps in the organi#ing process inc"ude9 1. %evie/ p"ans 2. List a"" tas's to be accomp"ished 3. Divide tas's into groups one person can accomp"ish 8 a job 4. Broup re"ated jobs together in a "ogica" and efficient manner $. .ssign /or' to individua"s D. De"egate authorit) to estab"ish re"ationships bet/een jobs and groups of jobs. 1.0.3 !ea ing .n organi#ation has the greatest chance of being successfu" /hen a"" of the emp"o)ees /or' to/ard achieving its goa"s. &ince "eadership invo"ves the e6ercise of inf"uence b) one person over others0 the 7ua"it) of "eadership e6hibited b) supervisors is a critica" determinant of organi#ationa" success. &upervisors can "earn about "eadership through research. Leadership studies can be c"assified as trait0 behaviora"0 contingenc)0 and transformationa". 1ar"iest theories assumed that the primar) source of "eadership effectiveness "a) in the persona" traits of the "eaders themse"ves. Fet0 traits a"one cannot e6p"ain "eadership effectiveness. +hus0 "ater research focused on /hat the "eader actua"") did /hen dea"ing /ith emp"o)ees. +hese behaviora" theories of "eadership sought to e6p"ain the re"ationship bet/een /hat the "eader did and ho/ the emp"o)ees reacted0 both emotiona"") and behaviora""). Fet0 behavior can5t a"/a)s account for "eadership in different situations. +hus0 contingenc) theories of "eadership studied "eadership st)"e in different environments. +ransactiona" "eaders0 such as those identified in contingenc) theories0 c"arif) ro"e and tas' re7uirements for emp"o)ees. Fet0 contingenc) can5t account for the inspiration and innovation that "eaders need to compete in toda)5s g"oba" mar'etp"ace. Ae/er transformationa" "eadership studies have sho/n that "eaders0 /ho are charismatic and visionar)0 can inspire fo""o/ers to transcend their o/n se"f3interest for the good of the organi#ation.

Leading invo"ves the fo""o/ing functions9 1. 4eam"uil ing %igid department boundaries and fi6ed teams are giving /a) to ad hoc s7uads /hose membership changes /ith ever) project. "e6ib"e net/or's of team3based structures are occurring /ithin and bet/een companies0 as /e"" as across nationa" borders. Competitive arenas re7uire 7uic' decisions b) 'no/"edgeab"e emp"o)ees /ho /or' c"ose to the source of prob"ems. +eams enab"e 'no/"edge3based and innovative decision ma'ing. +his co""aboration is a revo"ution in the /or'p"ace. $. &onsensus Buil ing +op performance demands the joint effort of man) peop"e0 /or'ing together to/ard a common goa". 2hen an individua" /or's together /ith others0 effectiveness gro/s0 creating greater productivit) for a"" invo"ved. +ogether0 emp"o)ees can do more than the co""ective efforts of each individua" /or'ing a"one. 3. Selecting &e"ecting competent0 high3performing emp"o)ees capab"e of sustaining their performance over the "ong run is a competitive advantage. +he se"ection process consists of forecasting emp"o)ment needs0 recruiting candidates0 intervie/ing app"icants0 and hiring emp"o)ees. 0. 4raining .fter emp"o)ees are se"ected0 the) enter an orientation program to be forma"") introduced to their jobs. Orientation sets a tone for ne/ emp"o)ees5 /or' b) describing job3re"ated e6pectations and reporting re"ationships. 1mp"o)ees are informed about benefits0 po"icies0 and procedures. &pecific duties and responsibi"ities and performance eva"uation are c"arified. During orientation0 the supervisor has the opportunit) to reso"ve an) unrea"istic e6pectations he"d b) the emp"o)ee. +raining refers to improving an emp"o)ee5s 'no/"edge0 s'i""s0 and attitudes so that he or she can do the job. ."" ne/ emp"o)ees <or current emp"o)ees in ne/ jobs= shou"d be trained. Cross training prepares an emp"o)ee for a job norma"") hand"ed b) someone e"se. ."so0 training is advisab"e /hen ne/ processes0 e7uipment or procedures are introduced into the /or'p"ace. +raining starts /ith an organi3ation anal/sis. G) focusing on strateg) and e6amining sa"es forecasts and e6pected changes in production0 distribution and support s)stems0 emp"o)ers can determine /hich s'i""s /i"" be needed and to /hat degree. . comparison /ith current s'i"" "eve"s is used to estimate staff and training needs. 4as5 anal/sis identifies the e"ements of current or future tas's to be done. Personal nee s anal/sis invo"ves as'ing emp"o)ees and managers0 either in an intervie/ or in a se"f3administered 7uestionnaire0 to ana")#e their training needs. In genera"0 agreement bet/een managers

and emp"o)ees tends to be "o/0 so it is important that both parties agree to decisions about the training of emp"o)ees. 1.0.0 &ontrolling It invo"ves monitoring the emp"o)ees5 behavior and organi#ationa" processes and ta'e necessar) actions to improve them0 if needed. Contro" is the process through /hich standards for performance of peop"e and processes are set0 communicated0 and app"ied. 1ffective contro" s)stems use mechanisms to monitor activities and ta'e corrective action0 if necessar). +here are four steps in the contro" process. +he) are as fo""o/s9 Step 1. 1stab"ish !erformance &tandards. &tandards are created /hen objectives are set during the p"anning process. . standard is an) guide"ine estab"ished as the basis for measurement. It is a precise0 e6p"icit statement of e6pected resu"ts from a product0 service0 machine0 individua"0 or organi#ationa" unit. It is usua"") e6pressed numerica"") and is set for 7ua"it)0 7uantit)0 and time. +o"erance is permissib"e deviation from the standard. Step 2. Measure .ctua" !erformance. &upervisors co""ect data to measure actua" performance to determine variation from standard. 2ritten data might inc"ude time cards0 production ta""ies0 inspection reports0 and sa"es tic'ets. !ersona" observation0 statistica" reports0 ora" reports and /ritten reports can be used to measure performance. Management b) /a"'ing around0 or observation of emp"o)ees /or'ing0 provides unfi"tered information0 e6tensive coverage0 and the abi"it) to read bet/een the "ines. 2hi"e providing insight0 this method might be misinterpreted b) emp"o)ees as mistrust. Ora" reports a""o/ for fast and e6tensive feedbac'. Computers give supervisors direct access to rea" time0 una"tered data0 and information. On "ine s)stems enab"e supervisors to identif) prob"ems as the) occur. Database programs a""o/ supervisors to 7uer)0 spend "ess time gathering facts0 and be "ess dependent on other peop"e. Step 3. Compare Measured !erformance .gainst 1stab"ished &tandards. Comparing resu"ts /ith standards determines variation. &ome variation can be e6pected in a"" activities and the range of variation 8 the acceptab"e variance 8 has to be estab"ished. Management b) e6ception "ets operations continue as "ong as the) fa"" /ithin the prescribed contro" "imits. Deviations or differences that e6ceed this range /ou"d a"ert the supervisor to a prob"em. Step . +a'e Corrective .ction. +he supervisor must find the cause of deviation from standard. +hen0 he or she ta'es action to remove or minimi#e the cause. If the source of variation in /or' performance is from a deficit in activit)0 then a supervisor can ta'e immediate corrective action and get performance bac' on trac'. 4/'es of &ontrol

Contro"s are most effective /hen the) are app"ied at 'e) p"aces. &upervisors can imp"ement contro"s before the process begins <feed for/ard=0 during the process <concurrent=0 or after it ceases <feedbac'=. -ee for6ar controls focus on operations before the) begin. +heir goa" is to prevent anticipated prob"ems. .n e6amp"e of feed for/ard contro" is schedu"ed maintenance on automobi"es and machiner). &oncurrent controls app") to processes as the) are happening. Concurrent contro"s enacted /hi"e /or' is being performed inc"ude an) t)pe of steering or guiding mechanism such as direct supervision0 automated s)stems <such as computers programmed to inform the user /hen the) have issued the /rong command=0 and organi#ationa" 7ua"it) programs. -ee "ac5 controls focus on the resu"ts of operations. +he) guide future p"anning0 inputs0 and process designs. 16amp"es of feedbac' contro"s inc"ude time") </ee'")0 month")0 7uarter")0 annua"= reports so that a"most instantaneous adjustments can be made.

-ig. 1.$( S7.4 E8*i"it 1.1 S7.4 &2O+ ana")sis is a simp"e frame/or' for generating strategic a"ternatives from a situation ana")sis. It a app"icab"e to either the corporate "eve" or the business unit "eve" and fre7uent") appears in mar'eting p"ans. &2O+ <sometimes referred to as +O2&= stands for &trengths0 2ea'nesses0 Opportunities0 and +hreats. +he &2O+ frame/or' /as described in the "ate 1-D?5s b) 1dmund !. Learned0 C. %o"and Christiansen0 @enneth .ndre/s0 and 2i""iam D.Buth in Gusiness po"ic)0 te6t and cases <>ome/ood0 IL9 Ir/in0 1-D-=.It /as major") deve"oped b) @enneth .ndre/s. Strengt*s( compan)5s capabi"ities and resources that a""o/ it to engage in activities to generate economic va"ue and perhaps competitive advantage. . compan)5s strengths ma) be in its abi"it) to create uni7ue products0 to provide high3"eve" customer service0 or to have a presence in mu"tip"e

retai" mar'ets. 7ea5nesses( "ac' of resources or capabi"ities that can prevent it from generating economic va"ue or gaining a competitive advantage if used to enact the compan)5s strateg). +here are man) e6amp"es of organi#ationa" /ea'nesses. or e6amp"e0 a firm ma) have a "arge0 bureaucratic structure that "imits its abi"it) to compete /ith sma""er0 more d)namic companies. .nother /ea'ness ma) occur if a compan) has higher "abor costs than a competitor /ho can have simi"ar productivit) from a "o/er "abor cost. .''ortunities( +he) provide the organi#ation /ith a chance to improve its performance and its competitive advantage. Opportunities ma) arise /hen there are niches for ne/ products or services0 or /hen these products and services can be offered at different times and in different "ocations. or instance0 the increased use of the Internet has provided numerous opportunities for companies to e6pand their product sa"es. 4*reats( +he) can be an individua"0 group0 or organi#ation outside the compan) that aims to reduce the "eve" of the compan)5s performance. 1ver) compan) faces threats in its environment. Often the more successfu" companies have stronger threats0 because there is a desire on the part of other companies to ta'e some of that success for their o/n. +hreats ma) come from ne/ products or services from other companies that aim to ta'e a/a) a compan)5s competitive advantage. +hreats ma) a"so come from government regu"ation or even consumer groups. Source( http9HHputra3design.b"ogspot.comH2??-H?3Hs/ot3ana")sis.htm"

Im'ortant 9uestions for S7.4 -or assessing strengt*s( 1. 2hat ma'es the organi#ation distinctiveI 2. >o/ efficient is our manufacturingI 3. >o/ s'i""ed is our /or'forceI 4. 2hat is our mar'et shareI

$. 2hat financing is avai"ab"eI D. Do /e have a superior reputationI -or assessing t*e 6ea5nesses9 1. 2hat are the vu"nerab"e areas of the organi#ation that cou"d be e6p"oitedI 2. .re the faci"ities outdatedI 3. Is research and deve"opment ade7uateI 4. .re the techno"ogies obso"eteI -or i entif/ing o''ortunities 1. In /hich areas is the competition not meeting customer needsI 2. 2hat are the possib"e ne/ mar'etsI 3. 2hat is the strength of the econom)I 4. .re our riva"s /ea'I $. 2hat are the emerging techno"ogiesI D. Is there a possibi"it) of gro/th of e6isting mar'etI I entif/ing t*reats involves t*e follo6ing( 1. In /hich areas does the competition meet customer needs more effective")I 2. .re there ne/ competitorsI 3. Is there a shortage of resourcesI 4. .re mar'et tastes changingI $. 2hat are the ne/ regu"ationsI D. 2hat substitute products e6istI Activit/ 1

:&uper speed; is an automobi"e compan). It has comp"eted its 1? )ears. +he compan) is using the same techno"og) and has not made on") s"ight improvements in the mode"s. +he fue" consumption is much and it offers on") four co"or0 the) have a ver) good net/or' of service centers and spare parts are ear") avai"ab"e. +he maintenance cost is ver) "o/. +he compan) is no/ facing huge competition from upcoming brands /hich are spea's "oo'ing and good on mi"eage so save fue". +he) are avai"ab"e in trend) co"or as /e"". Gut since these brands /e "aure""ed in past three )ears the) do not have good net/or' of service centers. .s the techno"og) is imported0 so the spare parts are a"so 7uite cost"). &uper speed has good tie3 ups /ith ban's /hich provide "o/ interest finances to the customers. &ince it5s a nationa" brand the ta6es to be paid b) customer are a"so 7uite "o/ and it ma'es super speed vehic"es to be 7uite affordab"e. &on uct t*e S7.4 anal/sis of su'er s'ee automo"ile com'an/. Self Assessment )uestions $. In recent time0 management functions have been regrouped into CCCCCCCCCCCC categories. D. +raining starts /ith an CCCCCCCCCCCCCCCCCCC ana")sis. 1.: Management ,oles an S5ills
1.:.1 Managerial ,oles

.ccording to Mint#berg <1-(3=0 manageria" ro"es are as fo""o/s9 1. Informational roles $. %ecisional roles 3. Inter'ersonal roles 1. Informational roles( 4*is involves t*e role of assimilating an isseminating information as an 6*en re9uire . o""o/ing are the main sub3ro"es0 /hich managers often perform9 a. Monitor 8 co""ecting information from organi#ations0 both from inside and outside of the organi#ation b. Disseminator 8 communicating information to organi#ationa" members c. &po'esperson 8 representing the organi#ation to outsiders

$. %ecisional roles( It invo"ves decision ma'ing. .gain0 this ro"e can be sub3divided in to the fo""o/ing9 a. 1ntrepreneur 8 initiating ne/ ideas to improve organi#ationa" performance b. Disturbance hand"ers 8 ta'ing corrective action to cope /ith adverse situation c. %esource a""ocators 8 a""ocating human0 ph)sica"0 and monetar) resources d. Aegotiator 8 negotiating /ith trade unions0 or an) other sta'eho"ders 3. Inter;'ersonal roles( +his ro"e invo"ves activities /ith peop"e /or'ing in the organi#ation. +his is supportive ro"e for informationa" and decisiona" ro"es. Interpersona" ro"es can be categori#ed under three sub3headings9 a. igurehead 8 Ceremonia" and s)mbo"ic ro"e b. Leadership 8 "eading organi#ation in terms of recruiting0 motivating etc. c. Liaison 8 "iasoning /ith e6terna" bodies and pub"ic re"ations activities.
4a"le 1.1( Mint3"erg<s Managerial ,oles=1>

,ole Interpersona" igurehead

%escri'tion

I entifia"le Activities

&)mbo"ic headJ ob"iged to perform a number of routine duties of a "ega" or socia" nature.

Breeting visitorsJ signing "ega" documents.

Leader

%esponsib"e for the motivation !erforming virtua"") a"" and activation of subordinatesJ activities that invo"ve responsib"e for staffing0 subordinates. training0 and associated duties. Maintains se"f3deve"oped .c'no/"edging mai"J net/or' of outside contacts and doing e6terna" board informers /ho provide favors /or'J performing other and information. activities that invo"ve outsiders.

Liaison

Informationa"

Monitor

&ee's and receives /ide %eading periodica"s and variet) of specia" information reportsJ maintaining <much of it current= to deve"op persona" contacts. thorough understanding of organi#ation and environmentJ emerges as nerve center of interna" and e6terna" information about the organi#ation. +ransmits information received >o"ding informationa" from outsides or from other meetingsJ ma'ing phone subordinates to members of the ca""s to re"a) information. organi#ation 8 some information is factua"0 some invo"ves interpretation and integration of diverse va"ue positions of organi#ationa" inf"uencers. +ransmits information to >o"ding board meetingsJ outsiders on organi#ation5s giving information of the p"ans0 po"icies0 actions0 resu"ts0 media. etc.J serves as e6pert on organi#ation5s industr).

Disseminator

&po'esperson

Decisiona" 1ntrepreneur &earches organi#ation and its Organi#ing strateg) and environment for opportunities revie/ sessions to and initiates :improvement deve"op ne/ programs. projects; to bring about changeJ supervises design of certain projects as /e"". %esponsib"e for corrective action /hen organi#ation faces important0 une6pected disturbances Organi#ing strateg) and revie/ sessions that invo"ve disturbances and crises

Disturbance hand"er

%esource a""ocator

%esponsib"e for the a""ocation &chedu"ingJ re7uesting of organi#ationa" resources of authori#ationJ performing a"" 'inds 8 in effect0 the ma'ing an) activit) that invo"ves

or approva" of a"" significant organi#ationa" decisions.

budgeting and the programming of subordinates /or'. !articipating in union contract negotiations.

Aegotiator

%esponsib"e for representing the organi#ation at major negotiations.

1.:.$ Management S5ills @at# <1-(4= has identified three essentia" management s'i""s9 technica"0 human0 and conceptua". 4ec*nical s5ills( +he abi"it) is to app") specia"i#ed 'no/"edge or e6pertise. ."" jobs re7uire some specia"i#ed e6pertise0 and man) peop"e deve"op their technica" s'i""s on the job. Kocationa" and on3the3job training programs can be used to deve"op this t)pe of s'i"". ?uman S5ill( +his is the abi"it) to /or' /ith0 understand and motivate other peop"e <both individua"") and a group=. +his re7uires sensitivit) to/ards others issues and concerns. !eop"e0 /ho are proficient in technica" s'i""0 but not /ith interpersona" s'i""s0 ma) face difficu"t) to manage their subordinates. +o ac7uire the >uman &'i""0 it is pertinent to recogni#e the fee"ings and sentiments of others0 abi"it) to motivate others even in adverse situation0 and communicate o/n fee"ings to others in a positive and inspiring /a). &once'tual S5ill( +his is an abi"it) to critica"") ana")#e0 diagnose a situation and for/ard a feasib"e so"ution. It re7uires creative thin'ing0 generating options and choosing the best avai"ab"e option. Self Assessment )uestions (. Ceremonia" and s)mbo"ic ro"e of a manager is ca""ed CCCCCCCCCCCCCCCCCC. *. Kocationa" and on3the3job training programs can be used to deve"op CCCCCCCCCCCCCCC s'i"".
1.6 Effective vs. Successful Managerial Activities

Luthans <1-**=0 on the basis of his stud)0 found that a"" managers engage in four manageria" activities. 1. 4ra itional management 8 +his activit) consists of p"anning0 decision ma'ing0 and contro""ing. +he average manager spent 32 percent of his or her time performing this activit)0 /hereas successfu" managers spend 13L and effective managers spend 13L of their time in this activit).

2. &ommunication 8 +his activit) consists of e6changing routine information and processing paper/or'. +he average manager spent 2- percent of his or her time performing this activit) /hi"e successfu" manager spends 2*L and effective managers spend 44L of their time in this activit). 3. ?uman resource management 8 +his activit) consists of motivating0 discip"ining0 managing conf"ict0 staffing0 and training. +he average manager spent 2? percent of his or her time performing this activit)0 /hi"e successfu" manager spends 11L and effective managers spend 2DL of their time in this activit). 4. @et6or5ing 8 +his activit) invo"ves socia"i#ing0 po"itic'ing0 and interacting /ith outsiders. +he average manager spent 1- percent of his or her time performing this activit)0 /hi"e successfu" manager spends 4*L and successfu" manages spend 11L of their time in this activit). It /as found that successfu" managers spent more time and effort in socia"i#ing0 interacting and net/or'ing. +he) did not spend much time to the traditiona" management activities or to the human resource management activities <Luthans0 1-**=. Self Assessment )uestions -. +he average manager spent CCCCCCCCCC percent of his or her time performing traditiona" management. 1?. 1ffective managers spend CCCCCCCCCC percent of their time in human resource management. 1.A Summar/ Organi#ationa" behavior <OG= is a fie"d of stud) that investigates the impact that individua"s0 groups0 and structure have on behavior /ithin an organi#ation0 then app"ies that 'no/"edge to ma'e organi#ations /or' more effective") <%obbins0 2??3=. .n effective and efficient manager shou"d focus on t/o 'e) resu"ts. Management functions have been grouped into four categories9 p"anning0 organi#ing0 "eading and contro""ing. +he characteristics of management are goa" oriented. 1conomic resource0 distinct process0 integrative force0 intangib"e force0 a science and an art0 resu"ts through others0 s)stem of authorit) and mu"tidiscip"inar) subject. Planning invo"ves the process of defining goa"s0 estab"ishing strategies for achieving these goa"s0 and deve"oping p"ans to integrate and coordinate activities. ."" "eve"s of management engage in p"anning in their o/n /a) for achieving their preset goa"s. .rgani3ing invo"ves designing0 structuring0 and coordinating the /or' components to achieve organi#ationa" goa". It is the process of determining /hat tas's are to be done0 /ho is to do0 ho/ the tas's are to be grouped0 /ho reports to /hom0 and /here decisions

are to be made. . 'e) issue in accomp"ishing the goa"s identified in the p"anning process is structuring the /or' of the organi#ation. !ea ing invo"ves team bui"ding0 consensus bui"ding0 se"ecting and training. .n organi#ation has the greatest chance of being successfu" /hen a"" of the emp"o)ees /or' to/ard achieving its goa"s. &ince "eadership invo"ves the e6ercise of inf"uence b) one person over others0 the 7ua"it) of "eadership e6hibited b) supervisors is a critica" determinant of organi#ationa" success. &ontrolling invo"ves monitoring the emp"o)ees5 behavior and organi#ationa" processes and ta'e necessar) actions to improve them0 if needed. Contro" is the process through /hich standards for performance of peop"e and processes are set0 communicated0 and app"ied. .ccording to Mint#berg <1-(3=0 manageria" ro"es are9 Informational rolesB %ecisional roles an Inter'ersonal roles. @at# <1-(4= has identified three essentia" management s'i""s9 technica"0 human0 and conceptua". Luthans <1-**= found that a"" managers engage in four manageria" activities9 <i= +raditiona" management8+his activit) consists of p"anning0 decision ma'ing0 and contro""ing0 <ii= Communication8+his activit) consists of e6changing routine information and processing paper/or'0 <iii= >uman resource management8this activit) consists of motivating0 discip"ining0 managing conf"ict0 staffing0 and training0 and <iv= Aet/or'ing8 this activit) invo"ves socia"i#ing0 po"itic'ing0 and interacting /ith outsiders. 1.8 4erminal )uestions 1. Discuss the characteristics of management. 2. Discuss the four management functions in brief. 3. Gased on @at#5s proposition0 brief") discus the essentia" manageria" s'i""s. 4. 16p"ain the manageria" activities "isted b) Luthans. 1.C Ans6ers Ans6ers to Self Assessment )uestions 1. .pp"e) 2. 1-$3 3. Management 4. Distinct !rocess

$. our D. Organi#ationa" (. igurehead *. +echnica" -. 32 1?. 2D Ans6ers to 4erminal )uestions 1. %efer section 1.3 2. %efer section 1.4 3. %efer section 1.$ 4. %efer section 1.D +lossar/

4erms Contro""ing

Meaning +he process of monitoring and correcting the actions of the organi#ation and its members to 'eep them directed to/ard their goa"s. +he process of getting the organi#ation5s members to /or' together to/ard the organi#ation5s goa"s. Organi#ation and coordination of the activities of an enterprise in accordance /ith certain po"icies and in achievement of c"ear") defined objectives +he process of designing jobs0 grouping jobs into units0 and estab"ishing patterns of authorit) bet/een jobs and units +he process of determining an organi#ation5s desired future position and the best means of getting there.

Leading

Management

Organi#ing

!"anning