MANAGEMENT SKILL
Skill is an ability or proficiency in a specific
area.
Conceptual skills are the ability to formulate
ideas.
Human skills are the ability to interact
effectively with people and concerns
interpersonal relations.
Technical skills are the ability to use process
or technique knowledge. They deal with things.
Contd…
MANAGEMENT SKILL
In order to perform the functions of management and to assume
multiple roles, managers must be skilled. Robert Katz identified
three managerial skills that are essential to successful
management: technical, human, and conceptual.
Technical skill involves process or technique knowledge and
proficiency. Managers use the processes, techniques and tools of
a specific area.
Human skill involves the ability to interact effectively with people.
Managers interact and cooperate with employees.
Conceptual skill involves the formulation of ideas. Managers
understand abstract relationships, develop ideas, and solve
problems creatively.
Thus, technical skill deals with things, human skill concerns
people, and conceptual skill has to do with ideas.
Contd…
MANAGEMENT SKILL
A manager's level in the organization determines
the relative importance of possessing technical,
human, and conceptual skills. Top level managers
need conceptual skills in order to view the
organization as a whole. Conceptual skills are
used in planning and dealing with ideas and
abstractions. Supervisors need technical skills to
manage their area of specialty. All levels of
management need human skills in order to interact
and communicate with other people successfully.
Contd…
MANAGEMENT SKILL
MANAGERIAL LEVELS
•Management hierarchy is the arrangement in
an organization of managers by level or rank.
•Middle management includes managers below
the rank of president but above the supervisory
level.
•Supervisors are managers whose major
activities focus on supervising non-management
employees and the needs of those employees
and the objectives of the organization.
•Top management are managers accountable
for the overall success of the organization.
MANAGERIAL LEVELS
MANAGERIAL LEVELS
Supervisors are managers whose major functions
emphasize directing and controlling the work of
employees in order to achieve the team goals. They
are the only level of management managing non-
managers. Thus, most of the supervisor's time is
allocated to the functions of directing and
controlling. In contrast, top managers spend most of
their time on the functions of planning and
organizing. The top manager determines the mission
and sets the goals for the organization. His or her
primary function is long-range planning. Top
management is accountable for the overall
management of the organization. Middle
management implements top management goals.
Supervisors direct the actual work of the
organization at the operating level.
MANAGERIAL LEVELS
MANAGERIAL LEVELS
Keystone in the Organization
The keystone view, identified by Professor Keith
Davis, is many people's ideal of a supervisor's job.
The comparison between an archway and an
organization is very interesting. Without the
keystone (supervisor), the arch (organization)
collapses. The keystone is the central topmost stone
of an arch. It is an essential part because it takes the
pressure of both sides, exerts pressure of its own
and uses them to strengthen the overall arch. The
keystone supervisor is the main connector joining
management and employees making it possible for
each to perform effectively. Supervisors are the level
of management linking the operations of each
department to the rest of the organization. This view
underscores the critical importance of developing
people at all levels.
MANAGERIAL LEVELS
MANAGERIAL LEVELS
•Employees need their jobs and want to know what is
expected of them and how their work relates to the
whole process. The supervisor is the point of
contact in the satisfaction of these needs for
employees. By his or her efforts toward productivity
and efficiency, the supervisor helps make the
company successful, which preserves and creates
jobs. By interpreting policies and giving instructions
and information and through normal, everyday
contact with employees, the supervisor serves as
the point of contact with management. The keystone
has determined that he or she will control the job
instead of the job controlling him or her. Thus, It is
the confidence in self that will help determine the
success of the manager.
MANAGERIAL FUNCTIONS
•A manager's job consists of planning, organizing, directing, and
controlling the resources of the organization. These resources
include people, jobs or positions, technology, facilities and
equipment, materials and supplies, information, and money.
Managers work in a dynamic environment and must anticipate and
adapt to challenges.
•The job of every manager involves what is known as the functions
of management: planning, organizing, directing, and controlling.
These functions are goal-directed, interrelated and interdependent.
Planning involves devising a systematic process for attaining the
goals of the organization. It prepares the organization for the
future. Organizing involves arranging the necessary resources to
carry out the plan. It is the process of creating structure,
establishing relationships, and allocating resources to accomplish
the goals of the organization. Directing involves the guiding,
leading, and overseeing of employees to achieve organizational
goals. Controlling involves verifying that actual performance
matches the plan. If performance results do not match the plan,
corrective action is taken.
MANAGERIAL ROLES
To meet the many demands of performing their
functions, managers assume multiple roles. A role is an
organized set of behaviors. Henry Mintzberg has
identified ten roles common to the work of all
managers. The ten roles are divided into three groups:
interpersonal, informational, and decisional. The
informational roles link all managerial work together.
The interpersonal roles ensure that information is
provided. The decisional roles make significant use of
the information. The performance of managerial roles
and the requirements of these roles can be played at
different times by the same manager and to different
degrees depending on the level and function of
management. The ten roles are described individually,
but they form an integrated whole.
MANAGERIAL ROLES
To meet the many demands of performing their
functions, managers assume multiple roles. A role is an
organized set of behaviors. Henry Mintzberg has
identified ten roles common to the work of all
managers. The ten roles are divided into three groups:
interpersonal, informational, and decisional. The
informational roles link all managerial work together.
The interpersonal roles ensure that information is
provided. The decisional roles make significant use of
the information. The performance of managerial roles
and the requirements of these roles can be played at
different times by the same manager and to different
degrees depending on the level and function of
management. The ten roles are described individually,
but they form an integrated whole.
MANAGERIAL ROLES
The three interpersonal roles are primarily
concerned with interpersonal relationships. In the
figurehead role, the manager represents the
organization in all matters of formality. The top level
manager represents the company legally and
socially to those outside of the organization. The
supervisor represents the work group to higher
management and higher management to the work
group. In the liaison role, the manger interacts with
peers and people outside the organization. The top
level manager uses the liaison role to gain favors
and information, while the supervisor uses it to
maintain the routine flow of work. The leader role
defines the relationships between the manger and
employees.
MANAGERIAL ROLES
The direct relationships with people in the
interpersonal roles place the manager in a unique
position to get information. Thus, the three
informational roles are primarily concerned with the
information aspects of managerial work. In the
monitor role, the manager receives and collects
information. In the role of disseminator, the
manager transmits special information into the
organization. The top level manager receives and
transmits more information from people outside the
organization than the supervisor. In the role of
spokesperson, the manager disseminates the
organization's information into its environment.
Thus, the top level manager is seen as an industry
expert, while the supervisor is seen as a unit or
departmental expert.
MANAGERIAL ROLES
The unique access to information places the
manager at the center of organizational decision
making. There are four decisional roles. In the
entrepreneur role, the manager initiates change. In
the disturbance handler role, the manger deals with
threats to the organization. In the resource allocator
role, the manager chooses where the organization
will expend its efforts. In the negotiator role, the
manager negotiates on behalf of the organization.
The top level manager makes the decisions about
the organization as a whole, while the supervisor
makes decisions about his or her particular work
unit.
MANAGERIAL ROLES
The supervisor performs these managerial
roles but with different emphasis than higher
managers. Supervisory management is more
focused and short-term in outlook. Thus, the
figurehead role becomes less significant and
the disturbance handler and negotiator roles
increase in importance for the supervisor.
Since leadership permeates all activities, the
leader role is among the most important of all
roles at all levels of management.
MANAGERIAL ROLES
The supervisor performs these managerial
roles but with different emphasis than higher
managers. Supervisory management is more
focused and short-term in outlook. Thus, the
figurehead role becomes less significant and
the disturbance handler and negotiator roles
increase in importance for the supervisor.
Since leadership permeates all activities, the
leader role is among the most important of all
roles at all levels of management.
Forms of organization
Business system :
A system refers to a scientifically established
arrangement of components for the
attainment of specific objectives as per plan.
It can be of four types :
1) Finance systems
2) Production system
3) Marketing system
4) Personnel system
The business organization is to be a business
system what the heart is to a human being.
Forms of organization
Hence a business organization is the technique
of efficiently conducting industrial &
commercial activities to earn not only profit, but
also the goodwill through a income submit to
the customers and employees in particular and
the society in general.
Business organization is assigned with various
issues pertaining to all types of business
enterprises. It covers each and every problem
starting from the very establishment of a
business unit till its ultimate disappearance
from this world of modern business.
Forms of organization
Forms of business organization
Private Enterprise Cooperative EnterprisePublic Enterprise
1. Sole Trade
2. Partnership firm
3. Private Company
4. Public Company
1. Individual Cooperatives
2. Consumer’s Coop. Store
3. Marketing Cooperatives
4. Service Cooperatives
1. Govt. Department
2. Govt. Company
3. Statutory Coops
Forms of organization
Proprietorship company :
A business unit owned and managed by an
individual is called a sole trading organization
or individual proprietorship. It is the oldest,
simplest & most natural form of business
organization.
Main features :
1. No separate legal assistance except the proprietor who owns
it.
2. Capital contribution – Made by the proprietor alone.
3. Management & control – Control over all the affairs of the
business
4. Profit sharing – No sharing
5. Liability – The liability of the proprietor is unlimited.
6. Stability – Short life.
Forms of organization
Advantage :
Ø Easy formation
Ø Simple to won
Ø Retention of business secrets.
Ø Quick decisions.
Ø Managerial motivation
Ø Close business links
Ø Healthy relation with the employees.
Ø Economy in management
Ø Unlimited liability
Ø Soft employment
Disadvantages :
Ø Limited capital & insufficiency of resources.
Ø Limitation of managerial ability
Ø Threat of unlimited liability
Ø Uncertainty of duration
Restricted growth
Cooperative organization
Usually business organization run primarily with
the profit motive, the cooperative undertakings
are established for rendering services to their
members. A cooperative society is basically an
association of person who join together
voluntarily for common economic interests. The
foundations of cooperative organization are :
a) Service not profit
b) Cooperation not competition
c) Self help – not dependence on profit
d) Moral solidarity not unscrupulous undertaking
Cooperative organization
Definitions :
1)According to section – 4 of the Indian
Cooperative Societies Act, 1912, a cooperative
society is a society which has its objectives of
promotion of economic interests of its members
in accordance with cooperative principles.
2)It is defined as an association of person usually
of limited means who have voluntarily joined
together to achieve a common economic and
through the formation of democratically
controlled business organization making
equitable contribution to the capital required.
Cooperative organization
Features :
Voluntary association
Open membership
Variable nature of members liability
Democratic control through equality of voting power
Service motive
Perfect units
Limited reward to the capital inverted
Cash trading
Cooperative organization
Types of cooperative :
•Industrial cooperatives – They are the
voluntary association of small produces
formed with the object of eliminating the
capitalists from the system of industrial
production, securing some of the benefits of
large scale production, increasing their
competitive strength against the large
produces and so on.
•Marketing Cooperatives – They are voluntary
associations of independent producers or
consumers organized for the purpose of
making arrangements for a proper sale or their
output to outsides & their requirements among
themselves respectively.
Cooperative organization
Types of cooperative :
•Industrial cooperatives – They are the
voluntary association of small produces
formed with the object of eliminating the
capitalists from the system of industrial
production, securing some of the benefits of
large scale production, increasing their
competitive strength against the large
produces and so on.
•Marketing Cooperatives – They are voluntary
associations of independent producers or
consumers organized for the purpose of
making arrangements for a proper sale or their
output to outsides & their requirements among
themselves respectively.
Cooperative organization
Types of cooperative :
Consumers cooperative is one type of marketing
operation which are formed by ordinary people with
the object of supplying the day to day requirements of
good at cheaper prices to their members through the
elimination of middleman.
4.Credit cooperative – They are voluntary associations
of people with moderate means formed with the object
of raising necessary capital to extend short term
financial accommodation to the members.
5.Service cooperatives – They are organized for
rendering various types of services to their members
at a nominal charge.
Cooperative organization
Planning : It includes forecasting and decision-
making and involves
•Identifying trends
•Crystallizing objectives
•Collecting and synthesizing the available information
•Developing alternative courses of action
•Comparing alternatives in terms of objectives,
feasibility and consequences
•Selecting optimum course of action
•Establishing policies, procedures, methods,
standards, schedules, programs, systems & budgets
•Assigning works
•Implementing controls and preparing exports and find
out possible improvements
Cooperative organization
Organizing :
· Dividing work into component activities
· Design job structure
· Defining responsibilities
· Delegating adequate authority
· Establish structural relationship to secure co-
ordination
Cooperative organization
Staffing :
Anticipating manpower needs
Developing job descriptions and man specification
Deciding appropriate source of recruitment
Arranging selection procedure
Deciding manpower
Developing activities
Determining suitable training programs and techniques
Appraising performances
Directing :
Leading
Motivating
Communicating
Supervising
Controlling :
•Identifying potential problems
•Deciding criteria for measuring results
•Projecting desired results
•Deciding sequence of importance
•Establishing check points, Schedules and time-table
•Appraising performances
•Selecting mode of control
•Finalizing audit measure and evaluating in terms of
planning
•Spotting significant deviations
•Ascertaining causes
•Taking remedial action
•Getting Board / Top managements’ approva