Management Concepts

MANAGEMENT CONCEPTS
Nisargrx@hotmail.co.uk
nisargrx@hotmail.co.uk
Management in everyday life Management is decision-making Getting things done through people Things are activities not any but Right Things' so fulfills predetermined objectives Done in Right Way i.e. appropriate strategy In Right Time By Right Persons i.e. qualified & competent With Right amount of Resources Effective use of all resources
MANAGEMENT
Getting the right things done in right way in right time by right persons with right amount of resources and with effective use of resources.
Management Concepts
MANAGEMENT CONCEPTS
It is the process of setting objectives and coordinating the efforts of personnel in order to attain them.
Creating an internal environment Individuals working together in groups Perform efficiently and effectively Attainment of group goals Management is goal oriented
Management Concepts
DEFINITION
Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. (Koontz) The collection and use of information in order to make decisions regarding the effective and efficient allocation of resources. (Gatewood, Taylor)
Management Concepts
Nature & Characteristics of Management

Applies to any kind of organization A process An art as well as Science Adopts Professional approach Aided, but cannot be replaced by computers Intangible A group activity Result Oriented All pervasive Need to follow well established principles Dynamic in nature Required at all organizational levels Involves getting things done through people Need not be ownership
Managerial and Technical Task

Difference between Managerial and Technical activities Technical is - Non managerial task - Not delegated Manager is not manager when he is doing technical work
SYSTEM
Set or assemblage of things connected, or interdependent, so as to form a complex unit. More than the sum of its parts. Closed or open. Must have boundaries. Every system is also a subsystem.
CLOSED VERSUS OPEN SYSTEMS
ENVIRONMENT
Organization Division Department Unit group individual
System Approach to Operational Management

Input-Output Model Re-energizing the system Inputs Transformation process Outputs
External Environment
Inputs (Resources)
1. Human 2. Capital 3. Managerial 4. Technological
Goal inputs of claimants

1. Employees 2. Consumers 3. Suppliers 4. Stockholders 6. Community 5. Governments 7. Others nisargrx@hotmail.co.uk
Organizational Resources
General Categories Materials Manpower Machines Money Information Others Time Knowledge Technology nisargrx@hotmail.co.uk (e.g. Wood, metal) (e.g. Laborers, accountants) (e.g. Bulldozers, fork lifts) (e.g. Working capital, equity) (e.g. Audits, Market Research)
Management Concepts
Inputs
Planning Organizing Staffing
Facilitated by communication that links organization with the external environment
Transformation Process
Controlling Leading
Management Concepts
PLANNING
Planning involves selecting missions and objectives, the actions to achieve them, it requires decision making that is, choosing future courses of action from among alternatives."
Management Concepts
ORGANISING
Organising is that part of managing that involves establishing an intentional structure of roles for people to fill in an organisations. The purpose of organizational structure is to help in creating an environment for human performance ."
Management Concepts
STAFFING
Staffing involves filling and keeping filled, positions in the organizational structure all other personnel activities involved.
Management Concepts
LEADING
Leading is influencing people so that they will contribute to organizational and group goals, it has to do predominantly with the interpersonal aspect of managing."
Management Concepts
CONTROLLING
Controlling is measuring and correcting individual and organizational performance to ensure that events conform to plans. In short, controlling facilitates the accomplishment of plan."
Management Concepts
COORDINATING
An Objective of Management, rather than as a function in itself. Successful coordination is effectively carrying out functions of management. If lack of coordination is detected, identify management function requiring improvement.
External Environment
Political legal Matters First-tier Economy
Competitors
International Affairs
Technology
Suppliers
Managers & Workers
Customers
Second-tier
Socio-cultural Forces
Outputs
1. Products 1. Products 2. Services 2. Services 3. Profits 3. Profits 4. Satisfaction 4. Satisfaction 5. Goal Integration 5. Goal Integration 6. Others 6. Others
Goal inputs of claimants________ Employees Consumer Supplier Stockholders 5. 6. 7. Governments Community Other 1. 2. 3. 4.
Inputs Human Capital Managerial Technological
EXTERNAL ENVIRONMENT
SYSTEM APPROACH TO MANAGEMENT SYSTEM APPROACH TO MANAGEMENT
Managerial knowledge, goals Managerial knowledge, goals of claimants && use of inputs of claimants use of inputs
External Variables And information Outputs Product Services Profits 4. 5. 6.
Controlling Controlling
Outputs Outputs nisargrx@hotmail.co.uk

1. 2. 3.
1. 2. 3. Satisfaction Community Other
Leading Leading
Opportunities Constraints others
Staffing Staffing
Organizing Organizing
Facilitated by communication that also links Facilitated by communication that also links The organization with the external environment The organization with the external environment
Planning Planning
Reenergizing the system Reenergizing the system
Managers and Levels of Management

Top Management
Strategic Level
Middle Management
Technical Level
First-level Management Operating Employees
Operations Level
TYPES OF MANAGERS BY LEVEL AND RESPONSIBILITY
Vertical Levels of Management
Top
Middle First-Line
Accounting Engineering Human Resources
Marketing
Horizontal Responsibility Areas nisargrx@hotmail.co.uk
Finance
R&D
Manager types
They differ in major areas like:The titles allotted to positions Nature of managerial work Time frame of planning Time allotted to managerial function Organizational responsibility Managerial skills required
Management Concepts
Managerial Roles
Interpersonal Roles The figurehead role The leader role The liaison role Informational Roles The recipient role The disseminator role The spokesperson role
Decisional Roles The entrepreneurial role The disturbance-handler role The resource allocator role The negotiator role
Management Concepts
Managerial Skills
Conceptual Skill Managerial Skill Design Skill
Technical Skill
Human Skill
Management Concepts
Managerial Skills
Conceptual Skill Ability to plan, coordinate and integrate activities, requires capacity to abstract, tolerance for ambiguity, intelligence, judgement, etc. Ability to see the big picture. Human skills Ability to communicate, Motivate and lead.
Management Concepts
Managerial Skills
Technical Skills Ability to use the techniques, procedures and tools of a specific field Design Skills Ability to solve problems in ways that will benefit the enterprise
HIERARCHICAL BREAKDOWN: FUNCTIONS AND SKILLS MANAGERS:

Middle FirstLine
MANAGERS:
Middle FirstLine
Top
Planning Organizing Leading Controlling
Technical Skills
Human Skills Conceptual Skills

Top
Management Concepts
Efficiency and Effectiveness

MANAGEMENT
Efficiency Effectiveness
Efficiency accomplishing objectives (i.e., the aim) with a minimum of resources Peter Drucker: doing things right
Effectiveness accomplishing the intended result (i.e., the aim of the system) Peter Drucker: doing the right things
TWO PERFORMANCE DIMENSIONS
Efficiency= making best use of resources in achieving goals

People Money
Effectiveness= choosing effective goals and achieving them
Machines Materials
Doing things right
Doing the right things
Management Concepts
Use of resources
Inefficient Pursuit of Appropriate goals Effective Management sets appropriate goals Manager is inefficient in attaining them Management sets inappropriate goals Manager is inefficient in attaining them Efficient Management sets appropriate goals Manager is efficient in attaining them Management sets inappropriate goals Manager is efficient in attaining them
Ineffective
Goal of all Managers

In all kinds of organisations whether business or non-business, managers should create a surplus i.e. accomplish aims with minimum and available resources Managers must be productive successful companies create a surplus through productive operations Productivity is defined as the output-input ratio within a time period with due consideration for quality
Output Productivity = --------------------------Input (Time period, quality consideration)
or increasing productivity increase output o decrease input or both

Organisational Functions
Finance Production (Services) Personnel Sales (Marketing)
Relationship between Organizational & Managerial Functions

ORGANIZATIONAL FUNCTIONS MANAGERIAL FUNCTIONS PLANNING ORGANIZING STAFFING DIRECTING CONTROLLING
PRODUCTION
SALES
FINANCE
PERSONNEL

Management Concepts

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Management Concepts

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MANAGEMENT CONCEPTS

Nature & Characteristics of Management

Managerial and Technical Task

CLOSED VERSUS OPEN SYSTEMS

Organization Division Department Unit group individual

System Approach to Operational Management

Goal inputs of claimants

Managers & Workers

Inputs Human Capital Managerial Technological

SYSTEM APPROACH TO MANAGEMENT SYSTEM APPROACH TO MANAGEMENT

External Variables And information Outputs Product Services Profits 4. 5. 6.

Outputs Outputs nisargrx@hotmail.co.uk

1. 2. 3. Satisfaction Community Other

Opportunities Constraints others

Reenergizing the system Reenergizing the system

Managers and Levels of Management

First-level Management Operating Employees

TYPES OF MANAGERS BY LEVEL AND RESPONSIBILITY

Vertical Levels of Management

Horizontal Responsibility Areas nisargrx@hotmail.co.uk

HIERARCHICAL BREAKDOWN: FUNCTIONS AND SKILLS MANAGERS:

Planning Organizing Leading Controlling

Human Skills Conceptual Skills

Efficiency and Effectiveness

TWO PERFORMANCE DIMENSIONS

Efficiency= making best use of resources in achieving goals

Effectiveness= choosing effective goals and achieving them

Doing things right

Doing the right things

Goal of all Managers

Output Productivity = --------------------------Input (Time period, quality consideration)

or increasing productivity increase output o decrease input or both

Relationship between Organizational & Managerial Functions

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