HNDA- 1St Year -1st semester
Commercial Awareness


Lesson 4
Nature Of Management




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Definitions of management



  • Management is the art of getting things done through other people.
                                                              (Mery Parker Follet )


  • The process of planning, organizing,   leading & controlling the work of organization members & of using all available organizational resources to reach stated organizational goals.
                                                              (James A F Stoner )
Significance Of Management


  1. Achieving organizational goals & objective efficiently & effectively
  2. Getting maximum benefit from scare resources
  3. Doing the right things correctly
  4. Achieving needs of parties who are interested in organization's activities
  5. To ensure stability of organization in competitive environment.


Crucial Elements In Management


  • Efficiency
         The ability to minimize the resources in achieving organizational   
         objective
                         “Doing things right “


  • Effectiveness
          The ability to determine appropriate objective
                         “Doing the right things”


  • Productivity
          Getting more quality output with the less effort & resources
           





What Is Meant By Management



Process Of Management








Main Functions Of Managers / Management


  1. Planning
  2. Organizing
  3. Leading (Staffing/Directing/Motivating/Communication)
  4. Controlling

Kinds Of Managers By Level & Areas














Manager


 “People responsible for directing the efforts aimed at helping organizations 
 achieve their goals.”


A manager’s job is highly crucial to the success of any organization. It is the manager’s job to achieve the organizational objectives through the proper utilization of its human & material resources. However, since humans can only use the material resources of equipment, capital, facilities, information etc., the human resources are the most valuable assets of any organization. Accordingly, manager must be highly skilled in the art of optimally utilizing the human resources  

















Differences between Top, Middle and lower level Managers


Top Level Managers
Middle Level Managers
Low Level Managers/First Line
Devote more time on planning & coordinating functions
Devote more time to organizational and directional functions
Devote more time to direction and controlling function of management
Set goals strategic for the whole organization
Decide goals , objectives strategic and principles for department
Support for the day to day activities in the organization
Appoints the executives for middle level ,controls & coordinate the activities of all the department
Interpret & explain policies from top to lower level 
Guide & instruct workers for day to day activities
Recruiting ,training & supervising the middle level managers
Recruiting ,training & supervising the lower level managers
Recruiting ,training & supervising employees
Giving orders to the middle level managers
Coordinate among top & middle level
Coordinate among middle level & employees


Differences between Line and Staff Managers


Line Managers
Staff managers
Directly responsible for achieving organizational goals
Supporting for line managers by supplying facilities for the activities and indirectly responsible for achieving organizational goals 


Differences between General and Functional Managers


General Manager
Functional Manager
Responsible for all or set of business activities
Responsible for one or few business activities












Levels Of Managers / Management


There are basically 3 levels of managers / management with relative standing in an organization’s hierarchy of authority. These levels are
  1. Top Managers
  2. Middle Managers
  3. First line/low level managers


Top Level Managers


  • Managers responsible for overall management of the organization


  • Typical titles of top managers are Managing Director(MD), President, Vice President, Chancellor, Vice chancellor ,
      General Manager (GM), Chief Executive Officer (CEO)


  • Followings are the main activities of top managers
                         
  1. Deciding & Establishing organization’s Vision, Mission, Goals, Objectives, & operating policies
  2. Making Strategic decision
  3. Making long range planning
  4. Deciding Investment ways for organization
  5. Guiding the organization  interactions with its environment


Middle Managers


  • Managers in the midrange of organizational hierarchy, they are responsible for Top managers.


  • This level consists of divisional & departmental heads such as plant manager, production manager, marketing manager, personnel manager, finance manager


  • Followings are the main activities of middle managers
  1. Interpreting policies & directions set by the top managers into specific plans & guide lines for action
  2. Coordinating the work of first line managers
  3. Concern with short term goals & specific results
  4. Spending more time  for operational planning, information processing and day to day monitoring of their divisional activities.
  5. Implementing decisions of top managers


First Line/Low level Managers


  • The lowest level in an organization at which individuals are responsible for the work of others (non-management workers).


  • This level of managers includes supervisors,  foremen, chief clerk etc.


  • Followings are the main activities of middle managers


  1. Activating top managers & middle managers decisions
  2. Quality controlling
  3. Coordinating the work of their employees
  4. Planning day to day operations 
  5. Assigning personnel to specific jobs
  6. Motivating employees
  7. Evaluating performance of workers
  8. Becoming link between the workers & middle management  

Functional Managers


Managers Responsible for only one functional area, such as production, marketing, finance,  human resource.


General Manager
The individual responsible for all functional activities such as productions, sales, finance for an organization

Fields of management / Fields of managers /Areas of managers


Marketing
Production
Personnel (HRM)
Finance
Technical (IT)
Operations
Administration







Managerial Skills


There are basically 3 kinds of skills needed by the managers .these are
  1. Conceptual skills
  2. Human skills
  3. Technical skill


Conceptual skills
  • The ability to coordinate & integrate all of an organizations interest & activities(Ability to view the organization as a whole)
  • Extremely crucial skill necessary for successful operations of top management


Human skill


  • The ability to work with , understand, and motivate other people as individuals or in group
  • This involves patience, trust and genuine involvement in interpersonal relationships
  • This skill is necessary at all level of managers


 Technical Skills


  • The ability to use the procedures techniques and knowledge of specialized field
  • This skills basically involve the knowledge, methods and techniques and ability to use these techniques in performing jobs effectively
  • This skill is highly necessary at the lower level of management


* All three of these skills are essential to a manager, their relative importance depends     
   mainly on the manager’s rank in the organization .

















Managerial Roles


According to Henry Mintzberg we can identified 3 major roles of managers and those roles are further subdivide into 10 roles.

















Interpersonal Relationship (Interpersonal )


managers spend a considerable amount of time in increasing with other people both within & outside the organizations includes peers, supervisors, customers, government officers etc. All these interactions require an understanding of interrelations

Information Processing (Informational )


By virtue of his interpersonal contacts a manager emerges as a source of information about a variety of issues concerning the organization


Decision Making (Decisional)


On the basis of the environmental information received a manager must make decisions & solve organizational problems






The Basic Managerial Roles & Sample Activities


Category 
Role
Sample Activities
Interpersonal
1Figurehead 
1.acting as symbolic figurehead performing  
   social & legal obligation (attending ribbon 
   cutting ceremony of new plant, attending a     
    subordinate’s wedding )


2.Greeting visitors


3.signing legal documents


4.Taking important customers to lunch


5.Speaking at a function


6.attending subordinates wedding




2.Leader
1.motivating employees


2.providing guidelines to employees to 
   improve productivity




3.Liaison
1.coordinating activities of project group


2.maintaining network of outside 
   environment contacts



Informational
4.Monitor
1.Scanning industry report


2.monitoring their environment




5.Disseminator
1.transmitting information  regarding changes 
   in policies


2.sending memos outlining new 
   organizational activities




6.Spokesman
1.Making speech to growth plans
2.Be a spokesman for his unit



Decisional
7.Entrepreneur
1.Developing new ideas for innovations
2.Doing feasibility studies for new products


3.Arrainging capital for new products




8.Conflict       
   handler
1.resolving conflict between two    
  subordinates
2.taking corrective actions for resolving 
   subordinate’s conflicts




9.Resource  
   Allocator
1.Reviewing & revisiting budget request 
2.Allocating personnel to specific jobs




10.Negotiator
1.Reaching agreement with key suppliers 
2.Negotiate with labour unions