what is management

what is management

1. Introduction to Management

2. After completing this session. You should be able to: Describe the meaning of Management Know the Management Process Identify the Mangers’ Roles Describe the functions of Management Identify the Principles of Management Identify the Features of Management Learning Objectives

3. After completing this session. You should be able to: g. Describe the Importance of studying Management h. Identify the differences among Organization, Administration and Management i . Differentiate Between Administration and Management and j. Describe the different Levels and Skills of managers. Learning Objectives (cont….)

4. Management Management means many things to many people. To a layman management means an impressive person occupying an air-condition chamber with an overstaked table and cushioned chair. Some people suggest management as commanding other. To many others, management is nothing more than clerical work and putting fancy signatures.

5. Meaning of Management The word MANAGEMENT originated from the Latin word “ Managiare ” which means, “to train up the horses”. But by the passage of time, it relates human being in lieu of horses. So the meaning of the word ‘MANAGEMENT’ is “to handle” the overall activities of the organization.

6. Meaning of Management Manage + Men + T = Management Manage = to manage Men = people T = Tactfully So, MANAGEMENT= Tactfully manage the People Now question comes Why people should be managed?

7. Meaning of Management People must be managed to achieve the organizational objectives in a systematic process. To achieve the goals, all elements (6 ‘M’; Men, Machine, Materials, Money, Market and Method) of the organization must be utilized efficiently and effectively by the authoprity in Management.

8. Definition of Management As there is no universally accepted definition for management, it is difficult to define it. A simple traditional definition, "art of getting things done by others". This definition brings in two elements accomplishment of objectives, and direction of group activities towards the goal . The weaknesses of this definition is that firstly it uses the word "art", whereas management is not merely an art, but it is both art and science. Secondly, the definition does not state the various functions of a manager clearly.

9. Definition of Management Management is a distinct Process Consisting of planning, organizing, actuating and controlling performed to determine and accomplish stated objectives with the use of human beings and other resources. To manage is to forecast and plan to organize to command to coordinate and to control. Management is the art of directing and inspiring people.

10. Definition of Management Kreitner’s definition : ‘Management is a problem solving process of effectively achieving organizational objectives through the efficient use of scarce resources in a changing environment.’ F.W. Taylor (father of scientific management) ‘Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way‘.

11. Definition of Management Henri Fayol (father of modern management) "Management is the process by which co-operative group directs actions towards common goals." Joseph Massie "Management is that process by which managers create, direct, maintain and operate purposive organisation through systematic, coordinated and cooperative human efforts." McFarland "Management is the coordination of all resources through the process of planning, organising , directing and controlling in order to attain stated goals."

12. Definition of Management P Traditional view point Modern view point Art of getting things done by others Prime mover of organization making it functional and productive. Process of Planning, organizing, staffing, directing and controlling activities of others Process of creating conducting and proper internal environment in the organization Mobilizing and utilizing physical and human resources for achieving organizational goals. Process of coping with changing external environment by relating strength and weakness of organization with it.

13. Nature of Management An analysis of management process will enable us to know the functions which managers perform. Goal oriented Process: The process of management comes with the purpose of achieving the organizational goals correctly and meaningfully. Hence, it is a goal oriented process. All Pervasive: Management is used by all departments of an organization and by all organizations, irrespective of size, nature and location. It is also practiced at each level of an organization. Multidimensional: Management covers all aspects of an organization ranging from work, people and operations. Different mechanisms and systems are set up for each aspect.

14. Nature of Management Continuous Process: A series of functions are performed in organization by all its managers simultaneously. It keeps running in a cycle that repeats itself over and over again. Group Activity: Management is never done in solidarity. It is a group activity that involves participation of all the people of an organization, including the managers and the workers, for the desired achievement of objectives.   Intangible Force: Management in its essence cannot be seen or touched, and hence is termed as intangible. But its effect can be felt and measured based on the results achieved by way of the organizational functions.

15. Concept of Management

16. Objectives of Management The primary objective of management is to run the enterprise smoothly. The profit earning objective of a business is also to be kept in mind while undertaking various functions. Following are the broad objectives of management: Proper Utilization of Resources: Improving Performance: Mobilizing Best Talent Planning for Future

17. Objectives of Management Proper Utilization of Resources: a. proprietors want more returns on their investments, b. employees, customers and public expect a fair deal from the management. Improving Performance: a. improving the performance of each and every factor of production. b. environment should be so congenial that workers are able to give their maximum to the enterprise. c. fixing of objectives of various factors of production will help them in improving their performance.

18. Objectives of Management 3. Mobilizing Best Talent a. management try to employ persons in various fields for better results are possible. b. specialists in various fields will be increasing the efficiency of various factors of production. c. better pay scales, proper amenities, future growth potentialities will attract more people in joining a concern. Planning for Future a. important objective of management is to prepare plans. b. No management should feel satisfied with today’s work if it has not thought of tomorrow. c. Future plans should take into consideration what is to be done next. d. Future performance will depend upon present planning.

19. Management: Art or science? Management involves characteristics of both art and science. While certain aspects of management make it a science, certain others which involve application of skills make it an art. Robert H. Hilkert : "In the area of management, science and art are two sides of the same coin". In the beginning of development of management knowledge, it was considered as an art.

20. Management is an Art Management can be an art in the sense that it has the following characteristics: Just like other arts it has to be practiced and performed. The knowledge should be learned and practiced, just as medical or legal practitioners practice their respective sciences. The manager gains experience by continual application of management knowledge and facing new experiences. This helps to develop more skills and abilities for translating knowledge into practice. Application calls for innovativeness and creativity . The fourth reason is that in many situations, theoretical knowledge of management may not be adequate or relevant for solving the problem. It may be because of complexity or unique nature of the problem. The art is in knowing how to accomplish the desired results. This implies that there exists a body of knowledge which management uses to accomplish the desired results in organization

21. Management is a Science Management as a science has the following characteristics: Its principles, generalizations and concepts are systematic . In this case the manager can manage the situation or organization in a systematic and scientific manner. Its principles, generalizations and concepts are formulated on the basis of observation, research, analysis and experimentation , as is the case with the principles of other sciences. Like other sciences, management principles are also based on relationship of cause and effect . It states that same cause under similar circumstance will produce same effect. Suppose if workers are paid more (cause), the produce more (effect). Management principles are codified and systematic, and can be transferred from one to another and can be taught. Management principles are universally applicable to all types of organizations.

22. Management and Administration There has been a controversy regarding the interpretation of these two terms. There are different views in this regard: According to first view (William Newman, Peter Drucker , etc), there is no basic difference between the two terms, and they are interchangeable. If there is any difference, it may perhaps be in their usage in practice. The term administration is used for non-business activities, and management is used for business activities.

23. Management and Administration According to second view (Kimball, Brech , other British writers, etc), management is a more comprehensive term which includes administration. Management involves "thinking" and administration involves "doing". Management is responsible for planning and organizing, and administration is responsible for directing and controlling. Whereas management refers to a high level of managerial activities such as goal-setting, policy formulation and strategy making, administration refers to an operative part concerned with lower level management activities such as execution of policies.

24. Management and Administration According to third view (Sheldon, Speriegal , Milward , etc), administration is a more comprehensive term which includes management. Administration involves "thinking" and management involves "doing". Administration is a top level function which concentrates on determination of plans, policies and objectives, whereas management is a lower level function which deals with the execution and direction of policies and operations. It doesn't mean that we need two separate sets of personnel, but each manager performs both the managerial as well as administrative functions. At top level more time is spent in administrative activity and as one moves down, more time is spent in management activity.

25. Difference between Administration and Management Management is the act or function of putting into practice the policies and plans decided upon by the administration. Administration is a determinative function, while management is an executive function. Administration makes the important decisions of an enterprise in its entirety, whereas management makes the decisions within the confines of the framework, which is set up by the administration.

26. Difference between Administration and Management Administrators are mainly found in large and multi-layered enterprises such as governments, military, religious and educational organizations or corporations. Management, on the other hand, is used by mid-size to small enterprises and may take administrative functions or even be labeled as administration but granted mostly a management function. For example the administration of a condominium is mostly a managerial body that is needs to convey an assembly to reach most decisions.

27. Management Process A Process is a systematic way of doing things.

28. Management Process : Organizations Goal determine In Put 6m Man machine material method money market Management Function Planning organizing staffing leading motivation coordination controlling Human efforts Physical, mental Out put Achieve organizations goals

29. Planning Setting the organizations goals & deciding how best to achieve them Organizing Determining how best to assemble resources & group activities Controlling Facilitation goal attainment through monitoring & correcting on going activities Leading Motivating & influencing the human resources to work for achieving the organizational goals Management Process:

30. Who is a manager? *  A manager is someone whose Primary responsibility is to carry out the management Process. * “Manager is a person who contorts a business or other concern”. * Manager is one who organizes other people’s doings . Management process

31. Function of Management Basic Functions of mgt. Secondary Function of mgt. Communication Budgeting Reporting Public relation Innovation Planning Organizing Staffing Directing Motivation Coordinating Controlling

32. Planning: Planning means deciding in advance what shall be done, where, how and who shall do it. Planning is the list of course of actions which will be performed later on . Organizing: The purpose of an organization structure is to help in creating an environment for human performance. Staffing: Staffing is the process of recruiting, selecting, training and developing organizational personnel.

33. Staffing Process Job Analysis Manpower Planning Acquisition Performance Appraisal Manpower Development

34. Directing: Directing means seeing that subordinates do their work and do it, as well as possible. its includes issuing orders, providing instructions, enforcing discipline and developing esprit de-corps. Motivation: Motivation is a managerial function to inspire, encourage and impel people to take required action. Coordinating: Coordination is the orderly arrangement of group effort to Provide unity of action in pursuit of a common purpose.

35. Controlling: Controlling is measuring and correcting individual and organizational performance to ensure that events conform to plan. Determining area of control Establishing Standards Measuring performance against standard Controlling Process Comparing performance against standard Recognizing positive performance Detection and Evaluation of deviation Taking corrective action as necessary

36. Anything minus management amounts to nothing, The are some points of importance of management in the industrial organization of Bangladesh. These points are given be low: Development of Business components Proper utilization of production factors. Economic and Human development Attainment of objectives. Development of Relationship Providing leadership . Importance of Management

37. Large scale production Increase in efficiency Reduction of wastage Establishing discipline Developing environment Social development Development of standard of living . Importance of Management (cont…)

38. The job of a manager is practically the same. But there is a difference in a manager’s role depending on the skills, ability, strength, experience, intellectual ability etc. So, in the organizational hierarchy, we see three levels of management. Each level has a different set of jobs and responsibilities but all are toward fulfilling a goal.   1.      Top Level Managers 2.      Middle Level Managers 3.      Lower Level / First Line Managers. Level of Management

39. Level of Management

40. Jobs of 3 Levels of Management Top-level managers setting goals, creating plans and supervise the entire organization. Middle-level managers diverting organizational activities to attain the goals set by top management. The lower-level managers running every work unit in the organization and carrying out the essential tasks. They are the foot soldiers of the company.

41. Top Level Managers (TLMs) Leaders of the organization are setting in top-level management. They are at the top one or two levels in an organization. They hold titles: Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer (COO), Chief Information Officer (CIO), Chairperson of the Board, President, Vice president, Corporate head. TLMs make decisions affecting the entirety of the firm. TLMs do not direct the day-to-day activities of the firm; rather, they set goals for the organization and direct the company to achieve them. TLMs are ultimately responsible for the performance of the organization, and often, these managers have very visible jobs. TLMs require having very good conceptual and decision-making skills.

42. Middle Level Managers (MLMs) Middle-level managers, or middle managers, are those in the levels below top managers. Middle managers’ job titles include General Manager, Plant manager, Regional manager, and Divisional manager. MLMs are responsible for carrying out the goals set by top management. They do so by setting goals for their departments and other business units. MLMs’ controls, motivate and assist first-line managers to achieve business objectives. MLMs also communicate upward, by offering suggestions and feedback to top managers. Because middle managers are more involved in the day-to-day workings of a company, they may provide valuable information to top managers to help improve the organization’s bottom line. MLMs’ job’s perfection depends very much on this communication and interpersonal skills.

43. Lower Level Managers (LLMs) Lower-level managers are also called first-line managers, shop-level managers, or supervisors. These managers have job titles such as office manager, Shift Supervisor, Department manager, Foreperson, Crew leader, Store manager. First-line managers are responsible for the daily management of line workers—the employees who actually produce the product or offer the service. There are first-line managers in every work unit in the organization. Although first-level managers typically do not set goals for the organization, they have a very strong influence on the company. These are the managers that most employees interact with on a daily basis, and if the managers perform poorly, employees may also perform poorly, may lack motivation, or may leave the company. A First-level manager requires having technical skill knowledge for the particular work that he is supervising.

44. Managers at different levels of the organization engage in different amounts of time on the four managerial functions of planning, organizing, leading, and controlling to be successful for achieving the goals of the enterprise. According to MINTZBERG, 1. Decisional Roles: require managers to plan strategy and utilize resources. • Entrepreneur: assign resources to develop innovative goods and services, or to expand a business • Disturbance handler: correct unanticipated problems facing the organization from the internal or external envts . • Resource allocator: resource allocator, involves determining which work units will get which resources. • Negotiator: works with suppliers, distributors, or labor unions, to reach agreements regarding products and services Roles of Managers in the Organization

45. 2 . Interpersonal Roles : r equire managers to direct and supervise employees and the organization. a) Figurehead : (MLMs) communicate future organizational goals or ethical guidelines to employees at company meetings b) Leader: (all Managers) gives commands and directions to subordinates, makes decisions, and mobilizes employee support c) Liaison: (MLMs) coordinate the work of others in different work units, establish alliances between others, and work to share resources . Roles of Managers in the Organization

46. 3. Informational Roles: Informational roles are those in which managers obtain and transmit information. These roles have changed dramatically as technology has improved • Monitor: evaluates the performance of others and takes corrective action to improve that performance • Disseminator : requires that managers inform employees of changes that affect them and the organization. They also communicate the company's vision and purpose. • Spokesperson: communicates with the external environment, from advertising the company's goods and services, to informing the community about the direction of the organization. Roles of Managers in the Organization

47. Top level Planning Middle level Organizing Leadership Controlling Lower level Levels of Basic Function Manager

48. The roles that a manager plays in the organization require having some skills. These are the skills or qualities that an organization looks for in a person to assign him as a manager. Managerial Skills are Technical Skill Conceptual Skill Interpersonal and Communication Skill Decision-Making Skill Diagnostic and Analytical Skill Managerial Skills

49. Technical Skill: It is knowledge of and proficiency in activities involving methods, processes, and procedures. Thus it involves working with tools and specific techniques. Technical skill is the ability to use the specialized knowledge, procedures, and techniques of a field of activities. Most managers, especially at the lower and middle levels, need technical skills for effective task performance. • Project engineers, • Physicians • Accountants. Managerial Skills

50. Conceptual Skill: Conceptual skill is the ability to coordinate and integrates all of an organization’s interests and activities. A manager’s ability to think in the abstract and to view the organization holistically is important. Suggesting a new product line for a company, introducing computer technology to the organization’s operations, or entering the international market; for deciding this magnitude, a manager requires Conceptual skill is his personality. Managerial Skills

51. Interpersonal and Communication Skill: Communication skill for a manager is a must.  The manager must be able to convey ideas and information to others and receive information and ideas from others effectively. A manager’s job is to control the subordinates and gives high-level managers or administrators information about what’s going on. Communication skill enables a manager to perform them properly. Most of his time, a manager job is to interact with people inside and outside of the organization. Managerial Skills

52. Decision-Making Skill: A manager’s job is to make decisions that will lead the organization to the attainment of is goals. Decision making skill is the skill that makes a manager able to recognize opportunities and threat and then select an appropriate course of action to tackle them is an efficient manner so that the organization can benefit for them. Managers are not always going to make the best decision. But a good manager most often makes a good decision and learns from the bad ones. Decision making is a skill that improves as managers gain more experience. Training or educating is also a good method to develop the Decision making skill of a manager. Managerial Skills

53. Diagnostic and Analytical Skill: Diagnostic skill refers to the ability to visualize the best response to a situation. Analytical skill means, the ability to identify the key variables in a situation. It helps him to identify possible approaches to a situation. After that is also helps a manager to visualize the result or outcomes this approaches. Managerial Skills