Principles of Management - Lecture 1

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Principles of Management
Lecture 1
Introduction to Management
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Course Outline
 Introduction to Management (W-1)
 Planning (W-2+3)
 Managerial Decision Making
 Forecasting
 MBO
 Strategic Management
 Organizing (W-4+5)
 Organizational Structure and Departmentalization
 Horizontal and Vertical Coordination
 HR and Employer-Employee Relationship
 Leading (W-5+6)
 Change Management & Innovation
 Motivation Theories (Need, Cognitive, Reinforcement, Social
Learning)
 Conflict Resolution
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Course Outline
 Controlling (W-7+8)
 Control Systems
 TQM
 MIS
 Advance Marketing Management (W-9+10)
 SWOT Analysis
 Fish-bone Analysis
 Marketing Research & Analysis
 Business Intelligence
 Organizational Behavior (W-11)
 International Management (W-12)
 Entrepreneurship and Joint Ventures (W-13)
 Ethical & Legal Issues (W-14)
 Advance Topics in Management (W-15+16)
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Lecture Organization
 Lecturing followed by De-brief
 [1.5h L + .5h D]
 Quizzes
 Surprise, on the spot
 Short (mostly objective type)
 Assignments
 In-class type
 Graded
 Case-study based
 In Groups
 Questions/Role play at the end of case-study
 Project
 Term Paper + Presentation
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Course Material
 Textbook(s):
 Kathryn M. Bartol, David C. Martin, Management
(latest edition), Irwin McGraw-Hill
 Reference Book(s):
 Stephen P. Robbins, Mary Coulter, Management
(11th
edition), Prentice Hall
 James A.F. Stoner and R. Edward Freeman and
Daniel R. Gilbert, J. (1995) Management, 6th Ed.,
Upper Saddle River, New Jersey: Prentice Hall.
 Lecture Notes & Resource (E-notes)
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 Organization
 Two or more persons engaged in a systematic effort to
produce goods or services.
 Managers
 The people responsible for supervising the use of an
organization’s resources to meet its goals.
 Management
 The use of people and other resources to accomplish
objectives.
 The process of achieving organizational goals by
engaging in the four major functions of planning,
Basic Definitions to Start With!!
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Management Functions
Planning Organizing
Leading Controlling
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Planning
 The process of setting goals and deciding
how to achieve them.
 The management function that
 assesses the management environment to set
future objectives
 map out activities necessary to achieve those
objectives
 Coordinate the objectives of individuals,
teams, and management to support the firm’s
mission.
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Organizing
 The process of allocating and arranging
human and nonhuman resources so that
plans can be carried out successfully.
 Through organizing managers determine
 Which tasks are to be done
 How tasks can be best combined into specific
jobs
 How jobs are grouped into various units
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Leading
 The process of influencing others to
engage in the work behaviors
necessary to reach organizational
goals.
 This involves:
 Communicating with others
 Helping to outline a vision of what can be
accomplished
 Providing direction
 Motivating organization members 10

Controlling
 The process of regulating organizational
activities so that actual performance conforms
to expected organizational standards and
goals.
 The management function that
 measures performance, compares it to objectives,
 implements necessary changes
 monitors progress
 Take feedback or identify potential problems and
taking corrective action. 11

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The Management Process
Work
Agenda
Work
Methods
and Roles
Management
Functions:
• Planning
• Organizing
• Leading
• Controlling
Performance
(goal achievement)
Knowledge
Base and Key
Management
Skills
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Work Agenda
 A loosely connected set of tentative goals and
tasks that a manager is attempting to
accomplish
 Factors influencing work agendas
 Job demands
 Job constraints
 Job choices
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Managerial Roles
 An organized set of behaviors associated with a
particular office or position.
 Managers perform 10 different but highly
interrelated roles. (Mintzberg):
 Interpersonal roles
 Informational roles
 Decisional roles
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Managerial Roles
 Interpersonal Roles
 Grows directly out of the authority of a manager’s
position and involve developing and maintaining
positive relationships with significant others.
 Informational Roles
 Receiving and transmitting information so that
managers can serve as the nerve centers of
organizational units.
 Decisional Roles
 Involve making significant decisions that affect the
organization.
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Interpersonal Roles
This part encompasses three roles:
Role Description
Figurehead Performs symbolic duties of a legal or social nature
Leader
Builds relationships with subordinates and communicates
with, motivates and coaches them
Liaison
Maintains self-developed network of outside contacts
and informers who provide help and information
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Informational Roles
The informational roles also include three roles:
Role Description
Monitor Emerges as nerve center of internal and external
information about issues that can affect organization.
Disseminator Transmits information received from other employees
to members of the organization.
Spokesperson Transmit information about organization to outsiders.
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Decisional Roles
The decisional roles include four roles:
Role Description
Entrepreneur
Acts as initiator, designer and encourager of change and
innovation.
Disturbance
handler
Responsible for corrective action when organization faces
important disturbances.
Resource
allocator
Responsible for the allocation of organizational resources of all
kinds.
Negotiator
Responsible for representing the organization at major
negotiations.
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Managerial Knowledge, Skills &
Performance
 To develop work agendas, act out roles and
engage in planning, organizing, leading and
controlling, managers need:
 Sound knowledge base
 Key management skills
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Knowledge Base
 Knowledge base include information about:
 Industry and its technology
 Company policies and practices
 Company goals and plans
 Company culture
 Important personnel, customers and suppliers
 Knowledge base enable managers to attach
the appropriate meaning to the information
fragments they obtain.
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Key Management Skills
 Skill is the ability to engage in a set of
behaviors that are functionally related to one
another and that lead to a desired
performance level in a given area.
 Three types of skills are necessary:
 Technical skills
 Human skills
 Conceptual skills
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 Technical Skills
 Skills that reflect both an understanding of and
proficiency in a specialized field.
 Human Skills
 Skills associated with a manager’s ability to work well
with others, both as a member of a group and as a
leader who gets things done through others.
 Managers with effective human skills are proficient in
 Communicating with others.
 Motivating themselves to perform well in pursuit of
organizational goals.
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 Conceptual Skills
 Skills related to the ability to visualize the
organization as a whole
 Distinguish interrelationships among organizational
parts
 Understand how the organization fits into the wider
context of the industry, community and world
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Efficiency and Effectiveness
Performance achieved through management
depends upon:
 Effectiveness
 The ability to choose goals and achieve them.
 Doing the right thing!
 Efficiency
 The ability to make the best use of available
resources in the process of achieving goals
 Doing things right!
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Efficiency and Effectiveness
R
E
S
O
U
R
C
E
U
S
A
G
E
G
O
A
L
A
T
T
A
I
N
M
E
M
T
Means:Means:
EfficiencyEfficiency
Ends:Ends:
EffectivenessEffectiveness
GoalsGoals
lowlow
wastewaste
highhigh
attainmentattainment
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Managerial Job Types
Managerial jobs vary on the basis of two
important Dimensions:
 Vertical dimension
 Hierarchical levels in the
organization
 Horizontal dimension
 Addressing variations in managers’
responsibility areas
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Top Managers (Strategic
Managers)
Middle Managers (Tactical
Managers)
First-line Managers
(Operational Managers)
Vertical Dimension: Hierarchical
Levels
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Top Managers
 The firm’s senior executives with overall
responsibility for the firm.
 Developing the company’s goals
 Focus on long-term issues
 Emphasize the growth and overall effectiveness of the
organization
 Ultimately responsible for the entire organization
 Concerned primarily with the interaction between
the organization and its external environment.
 These are strategic managers
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Middle Managers
 Managers beneath the top level of
the hierarchy; directly responsible
for work of managers at lower levels
 Coordination of resources
 These are tactical managers
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First-line Managers
 Lower-level managers who supervise
the operations of the organization.
 Directly involved with non-
management employees
 Implementing the specific plans
developed with middle managers.
 Operational managers are the link
between management and non-
management staff.
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Management Functions at Different
Hierarchical Levels
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Skills Needed at Different
Hierarchical Levels
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Entrepreneurial Role
 Innovation
 A new idea applied to initiating or improving a
process, product or service.
 Intrapreneurs
 Individuals who engage in entrepreneurial roles
inside organization.
 Intrapreneurship
 The process of innovating within an existing
organization.
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 Idea Champion
 An individual who generates a new idea or believes
in the value of a new idea.
 Supports it in the face of numerous potential
obstacles.
 They are usually individuals at lower levels in the
organization.
 Sponsor
 A middle manager who
 Recognizes the organizational significance of an idea
 Helps obtain the necessary funding for development of the
innovation
 Facilitates its actual implementation 34

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 Orchestrator
 A high level manager who
 Articulates the need for innovation
 Provides funding for innovative activities
 Creates incentives for middle managers to sponsor new
ideas
 Protects idea people
 By filling the role of orchestrator, top managers
encourage innovation.
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Horizontal Dimension: Responsibility
Areas
 In horizontal differentiation, there are three
major types of managerial jobs
 General
 Functional
 Project
 General Managers
 Managers who have responsibility for whole
organization or a substantial subunit that includes
most of the common specialized areas.
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 Functional Managers
 Have responsibility for a specific specialized area of
the organization.
 Supervise individuals with expertise and training in
that area.
 Common functional areas:
 Finance, Human resource, Marketing, operations, etc
 Project Managers
 Managers who have responsibility for coordinating
efforts involving individuals in several different
organizational units who are all working on a
particular project.
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Horizontal Dimension: Responsibility
Areas

Principles of Management - Lecture 1

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Principles of Management - Lecture 1