BASIC

BASIC CONCEPTS
CONCEPTS OF
OF

MANAGEMENT
MANAGEMENT AND
AND

ORGANIZATIONS
ORGANIZATIONS
 Managers and Their Job
• A manager is a person who coordinates and
oversees the work of other people in order to
accomplish organizational goals.

• Managers are the individuals who achieve goals

through other people.

Managerial
ManagerialJob
Job/ /Activities:
Activities:
••Make
Makedecisions
decisions
••Allocate
Allocateresources
resources
••Direct
Directactivities
activitiesof
ofothers
othersto
toattain
attaingoals
goals
 Classification of Managers
• Top Managers: Managers at or near the upper level
of the organization structure who are responsible
for making organization-wide decisions and
establishing the goals & plans that affect the entire
organization.

• Middle Managers: Managers between lowest level

and top level of the organization, who manage the
work of first line managers.

• First-line Managers: Managers at the lowest level

who manage the work of non-managerial employees
and are directly or indirectly involved in producing
products or rendering services.
Classification of Managers
 What Top Managers Do?
• Responsible for providing the overall direction of an
organization.
• Develop goals and strategies for entire organization.
• Spend most of their time planning and leading.
• Communicate with key stakeholders—stockholders,
unions, governmental agencies, etc., company
policies.
• Use of multicultural and strategic action
competencies to lead the firm is crucial.
• Conceptual skills are important and frequently used.
 What Middle Managers Do?
• Responsible for setting objectives that are consistent
with top management’s goals & translating them into
specific goals & plans for first-line managers to
implement.
• Responsible for coordinating activities of first-line
managers.
• Establish target dates for products/services to be
delivered.
• Need to coordinate with others for resources.
• Be able to develop others.
• Rely on communication, teamwork, and planning and
administration competencies to achieve goals.
 What First-line Managers Do?
• Directly responsible for production of goods or
services.
• Employees who report to first-line managers do the
organization’s work.
• Spend little time with top managers in large
organizations.
• Technical expertise/skills are important & more
frequently used.
• Rely on planning & administration, self-management,
teamwork, and communication competencies to get
the work done.
 What is Management?
Management refers to coordination and oversight of the
work activities of others so that their activities are
completed efficiently and effectively.
• Efficiency: It refers to getting the most output from
the least amount of inputs; also known as “doing
things right”. It is concerned with means to ends.
• Effectiveness: It refers to completing the task as per
expectations and quality standards so that
organizational goals are achieved; also known as
“doing right things ”. It is concerned with end results.
• Management strives for both Efficiency (low expense
of resources) and Effectiveness (high goal
achievement).
 Managerial Functions

Planning
Planning Organizing
Organizing

Managerial
Managerial
Functions
Functions

Controlling
Controlling Leading
Leading

Theses functions are not limited to any particular manager

 Managerial Functions

Planning. A managerial function that involves defining

goals, establishing strategies for achieving those
goals, and developing plans to integrate and
coordinate activities:

• Setting Goals – results / final outcome

• Strategies – ways / methods of achieving result
• Plans – day to day work activities i.e. micro level
 Managerial Functions
Organizing. A managerial function that involves
determining what tasks are to be done, how tasks are
to be grouped, who reports to whom, and where
decisions are to be made.

• Tasks – specificity / clarity of task / activities

• Grouping of tasks – related tasks are grouped
• Reporting – route / channel to be adopted
• Decision making – for various activities

Includes creating departments and job descriptions.

 Managerial Functions
Leading. A managerial function that includes
motivating subordinates, directing others, selecting the
most effective communication channels, and resolving
conflicts:

• Motivating – inspiring / persuading

• Directing – explaining, guiding, supporting
• Communication channels – letters, memos,
telephone, intranet, extranet
• Conflicts resolution – keeping conflicts within
useful limits
 Managerial Functions

Controlling. A managerial function that involves

monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations:

• Measuring – what has been actually achieved

• Comparing – is final outcome same as planned
• Taking actions – taking actions to correct any
deviations and/or avoid recurrence of the same
 Managerial Roles
Roles are the specific categories of managerial
behaviors which are required to be displayed at work
place.

• Interpersonal role: A managerial role that involves

people and other duties that are ceremonial and
symbolic in nature.

• Informational role: A managerial role that involves

collecting, receiving and disseminating information.

• Decisional role: A managerial role that revolves

around making choices amongst the alternatives,
during various managerial assignments.
 Skills That Managers Need

Technical Conceptual Human

 Managerial Skills
• Technical Skills. The ability to apply specialized
knowledge, expertise & techniques needed to work
proficiently.

• Conceptual Skills. The ability to think, analyze and

conceptualize about abstract & complex situations.

• Human Skills. The ability to work well with others;

understand and inspire other people, both
individually and in groups.
Importance of Managerial Skills
 What is an Organization?
• A deliberate arrangement of people to accomplish some
specific purpose. Hence three common characteristics of an
organization are, People, Deliberate structure and Distinct
purpose.
• A tool used by people to coordinate their actions to obtain
something they desire or value.
• A consciously coordinated social unit, composed of two or
more people, that functions on a relatively continuous basis to
achieve a common goal or a set of goals, and where people
have:
• Structured patterns of interaction
• Coordinated tasks
• Work toward some purpose
 Why Manager’s Job is Changing
Manager’s job is changing due unavoidable
environmental changes, as discussed below:

Changing Technology (Digitization):

• Shifting organizational boundaries

• Virtual workplaces
• More mobile workforce
• Flexible work arrangements
• Empowered employees
• Work life – Personal life balance
 Why Manager’s Job is Changing

Changing Securities Threats:

• Risk management – due to dynamic environment

• Uncertainty over future energy resources/prices
• Restructuring of workplace
• Discrimination concerns
• Globalization concerns
• Employee assistance
 Why Manager’s Job is Changing
Increased Emphasis on Organizational and Managerial
Ethics:
• Redefined values
• Rebuilding trust
• Increased accountability

Increased Competitiveness:
• Customer service
• Innovation
• Globalization
• Efficiency / productivity
 Why to Study Management?
Universality of Management: The reality that manage-
ment is needed in all types and sizes of organizations,
at all organizational levels, in all organizational areas,
and in organization no matter where located.
All Sizes
Small Large

All areas
Manufacturing,
Management All Types
Marketing, HR,
is Needed in… Profit Not for profit
Accounting, IT
etc.

All levels
Bottom Top
 How Organizations Create Value
Organization’s Inputs Organization’s
Organization obtains inputs from its Conversion Process
environment Organization transforms inputs
• Raw materials and adds value to them
• Money and capital • Machinery
• Human resources • Computers
• Information and knowledge • Human skills and abilities
• Customers of service
organizations

Organization’s Environment Organization’s Outputs

Sales of outputs allow organization Organization releases outputs to
to obtain new supplies of inputs its environment
• Customers • Finished goods
• Share holders • Services
• Suppliers • Dividends
• Distributers • Salaries
• Government • Value for stakeholders
• Competitors
THANKS