Management cours of two years one semister

Learning is Good

1. HARAMBEE UNIVERSITY Muke Turi Campus Faculty of Business and Economics Course Title: Introduction to Management Credit hour: 3 Instructor: Nigusu Alemu (MBA)

2. Chapter One: Fundamental of Management

3. Definition of Management No single and universal definition for the term management. F.W.Taylor Management is the art of knowing what you want to do and doing it in the best and cheapest way. Stanly Management is the process of decision making and control over the action of human being for purpose of attaining the predetermined goals . H. Fayol Management is a process of planning, organizing, commanding, coordinating, and controlling. Boone and Kurtz Management is the use of people and other resources to accomplish organizational objectives.

4. Definition…. Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources . This definition holds two important ideas: 1) the four managerial functions and 2) the attainment of organizational goals in an effective and efficient manner.

5. Definition…. Organizational effectiveness is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do. Organizational effectiveness means providing a product or service that customers value . Organizational efficiency refers to the amount of resources used to achieve an organizational goal. It is based on how much raw materials, money, and people are necessary for producing a given volume of output. Efficiency can be calculated as the amount of resources used to produce a product or service.

6. Introduction to Management What do Managers do? Efficiency Effectiveness (means) (ends) Resource usage Goal attainment Low waste High attainment Management strive for Low resource wastage (high efficiency) High goal attainment (high effectiveness)

7. Characteristics of Management Management is a distinct process. Management is an organized activity Management aims at the accomplishment of predetermined objectives. Management is both a science and an art. Management is a group activity Management principles are universal in nature Management integrates human and other resources .

8. Significance of management It help to identify companies goals or objectives. It facilitate accomplishment of goals by planning resources and by directing and controlling activities. It establish sound organizational structure by clearly defining authority and responsibility. To formulate and implement organizational policies . Coordination of factors of production. There are basically three management objectives. Objective one is ensuring organizational goals with least cost and minimum waste The second objective is looking after health, welfare, and safety of staff The third objective is protecting the resources of the organization

9. Managerial Functions The five managerial functions are

10. Planning is determining the objectives and formulating the methods to achieve them. It is more simply said than done. A job well planned is half done. During planning one needs to ask oneself the following: It is a function that determine in advance  What should be done?  How it should be done?  When it is to be done ? Planning requires ability to foresee , visualize , and to look ahead purposefully. Plans can be classified as - Long range - Intermediate range - Short range 1. PLANNING

11. 2. Organizing Organizing involves assigning tasks, grouping tasks into departments , delegating authority, and allocating resources across the organization . It is the function in which the managers develop the organization structure that allows working together and achieve organizational goals. It involves grouping similar activities in one department . It also involves clearly stating authority and responsibility .

12. 3. Staffing It deals with filling the position in the organizational structure. This requires putting the right person at the right place. It involves . Recruiting and selecting . Transferring employees . Promotion . Lay off

13. 4. Leading It is the process of influencing, motivating, and directing of employees to achieve organizational goals. Leading means creating a shared culture and values, communicating goals to employees throughout the organization, and infusing employees with the desire to perform at a high level . Managers need to understand . Individual and group behavior . Techniques of communication . Techniques of motivation . Effective style of leadership The outcome of the leading function is high level of motivation and commitment by the employees .

14. 5. Controlling Controlling means monitoring employees’ activities, determining whether the organization is on target toward its goals , and making corrections as necessary . It is the process of comparing actual performance with the sated standard . The aim of controlling is to take corrective action if the performance is lower than the plan.

15. Levels of management One of the best ways to study the activities of management is classifying them in to different levels. Organizations’ level of management varies with the size of the organization this is because not all managers’ jobs are the same . Hence, an important determinant of the manager’s job is hierarchical level . Management level commonly classified in to three.

16. Management Levels in the Organizational Hierarchy

17. Cont… Top Level Managers Top managers are at the top of the hierarchy and are responsible for the entire organization. Manage the overall activity of the organization. Establish policies, strategies, long term plans, and make major decisions. They look to the long-term future and concern themselves with general environmental trends and the organization’s overall success. Represent the organization (deal with external bodies) They are few in number. Their title includes Board of Directors, Executive Directors, Chief Executive Officer (CEO), President, and General Manager.

18. Cont… Middle Level Managers Middle managers work at middle levels of the organization and are responsible for business units and major departments. They are specialists (their activity is limited to a particular area of operation) They act as intermediary between top and operating level managers. Develop medium range plans They supervise first line managers. Their title includes; Department Managers, Division Managers, and Operation Manager.

19. Cont… Operating Level Management First-line managers are directly responsible for the production of goods and services. Plan daily and weekly activities (short range plans) They manage only non managers. Their typical title includes; Section Chief, Office Manager, Foreman, and Supervisor.

20. Cont’d.. Managers can also be classified based on the scope of activities they manage. - Functional Managers - General Managers Functional Managers have specialized skills in single area of operation such as accounting, marketing, and production. 2. General Managers are responsible for overall operation. They are responsible for several departments that perform different functions . They coordinate two or more departments.

21. Managerial Roles All managers must play some role and must have some skills to be effective. A role is a set of expectations for a manager’s behavior . Henery Mintzberg identified ten managerial roles by closely observing the day to day activities of a group of CEOs and divided them in to three; Interpersonal (managing through people) role Informational role (managing by information) and Decision making role ( managing through action)

22. CON’T…Roles of managers…

23. CON’T…Roles of managers…

24. Roles of managers…

25. Roles of managers…

26. Managerial Skills Managerial Skills and their Relative Importance A manager’s job is complex and multidimensional and, it requires a range of skills. Skill is an ability to perform a particular task. The three managerial skills are 1. Conceptual Skills 2. Human Relation/ Interpersonal Skills 3. Technical skills Remark: the application of these skills changes as managers move up in the organization. Although the degree of each skill necessary at different levels of an organization may vary , all managers must possess skills in each of these important areas to perform effectively.

27. Cont… Conceptual skills Conceptual skill is the cognitive ability to see the organization as a whole and the relationships among its parts. Managers need the mental capacity to understand the overall working of the organization. It involves the managers information processing , thinking , and planning abilities. The managerial activities that require conceptual skill includes decision making , planning , and organizing . It means the ability to think strategically —to take the broad, long term view. Conceptual skill is more important for the top level managers.

28. Cont… 2. Human Relation/ Interpersonal Skills It is the manager’s ability to work with other people and to work effectively as a group member . It includes the managers ability to - Motivate - Facilitate - Coordinate - Lead - Communicate effectively - Resolve Conflict Human skills are important for managers at all levels. A manager with human skills allows subordinates to express themselves without fear of ridicule and encourages participation.

29. Cont… 3. Technical Skills It is the ability to use specific knowledge , technique , methods or resources in specialized field. It is acquired through education - Formal - Informal Technical skill also includes; Specialized knowledge, Analytical ability, and The competent use of tools and techniques to solve problems in that specific discipline. It is very important for first line managers

30. Skills needed by managers

31. Is management a science or an art? Management is science , in that it requires the use of Technical , Diagnostic , Decision-Making skills, logics and analyses . In addition it uses computers and quantitative formulas to problems on hand. Problems can be solved using systematic methods. Management is an art as it requires the use of behavioral and judgmental skills . It can be developed as other arts like athletics , songs etc

32. End of the Chapter!!!