MANAGMENT by Baratha Dewanarayana. Management Consultant. B.Sc in Business Administration, Business Economics (Special)

INTRODUCTION

Management is a set of activities directed at an organisation’s resources with the aim of achieving organisational goals in an efficient and effective manner.

MANAGERIAL ACTIVITES

·         Planning & Decision Making

·         Organizing

·         Leading

·         Controlling

RESOURCES

·         Human Resources

·         Financial Resources

·         Physical Resources

·         Information Resources

MANAGER

A Manager is someone whose primary responsibility is to carry out the management process.

- Someone who plans and makes decisions organizes leads and controls human, financial, physical and information resources.  

LEVELS OF MANAGEMENT

·         Top Managers

·         Middle Managers

·         First- line Managers

TOP MANAGERS

Chairman, President, Managing Director, Chief Executive Officer 

Top Managers establish its mission, goals, overall strategy and operating policies.

* Long range planning

            * Acquisitions & Mergers

            * Capital investment decisions

            * Organisation restructuring

            * Appointment of Middle Level Managers

Spend much of their time in meetings and on the telephone

MIDDLE MANAGERS

Implementing the policies and plans developed by top managers and for supervising and coordinating the activities of lower- level managers.

Functional Managers

* Production Planning * Purchasing

            * Determination of Discounts and Credit

            * Recruitment of Staff

FIRST- LINE MANAGERS

Supervise and coordinate the activities of operating employees.

Supervisors, Coordinators, Team Leaders

    * Implementing & controlling of Operational         plan * Quality Control * Expenditure

                 * Stock Control

Spends much time supervising subordinates 

AREAS OF MANAGEMENT

·         Human Resources Manager –

            -           Hiring and Developing Employees

            -           HR Planning, Recruiting and Selection, Training       & Development, Designing compensation & benefit systems, Formulating performance appraisal systems, discharging low- performing & problem employees. 

·         Financial Managers –

            -           Deal with organization’s financial resources 

            -           Accounting, cash management and investments

·         Marketing Manager –

            -           Identify, create and sustain competitive         advantage to drive business to sell more goods,             services & ideas to target markets profitably.            

            -           New Product Development, Promotion,        Distribution Marketing Research, Branding, Customer Service.

·         Operations Manager –

            -           Creating & managing the organizational systems

            -           Production Control, Quality Control, Inventory        Control, Plant Layout, Site Selection 

·         Other Managers

MANAGERIAL ROLES

·         Interpersonal Role

·         Information Role

·         Decisional Role

INTERPERSONAL ROLE

- Involves dealing with other people.

·         Figurehead Role -

            - Attending ribbon- cutting ceremonies for new branches    

·         Leaders Role -

            - Hiring, Training and Motivating employees  

·         Liaison Role -

            - Coordinating activities of two project group

INFORMATIONAL ROLE

- Involves the processing of information.

·         Role of Monitor -

            - Scanning of environment to stay abreast of developments

·         Role of Disseminator -

            - Sending memos outlining new organizational initiatives  

·         Role of Spokesperson -

            - Relays information to people outside unit or organization

DECISIONAL ROLE

- Involves making decisions.

·         Role of Entrepreneur -

            - Developing new ideas for innovation          

·         Disturbance Handler -

            - Resolving conflicts between two subordinates  

·         Resource Allocator –

            - Reviewing and Revising budget requests

·         Negotiator-

            - Reaching agreement with a key supplier or trade union

MANAGERIAL SKILLS

·         Technical Skills

·         Interpersonal Skills

·         Conceptual Skills

·         Diagnostic Skills

TECHNICAL SKILLS

·         The skills necessary to accomplish or understand tasks relevant to the organization

·         Technical skills are especially important for First- line managers, who spend their time training subordinates and dealing with work related problems.

INTERPERSONAL SKILLS

·         The ability to communicate with, understand and motivate both individuals and groups

·         Managers must be able to work with subordinates, peers and superiors within and customers, suppliers and investors outside the organization

CONCEPTUAL SKILLS

·         The manager’s ability to think in the abstract

·         To view the organization holistically

·         Understand the overall workings of the organization and its environment

·         To think strategically – see the ‘big picture’

DIAGNOSTIC SKILLS

·         A manager’s ability to visualise the most appropriate response to a situation.

·         To be able to define the problem, recognise possible causes, focus on it and solve it.

·         To be able to determine what causes a sales explosion and how best to take advantage of it.

  NATURE OF MANAGERIAL WORK

·         A manager’s job is uncertain, subject to changes, interruption and fragmented.

·         Performs a wide variety of tasks - Make decisions about a new product, settle complaints between two subordinates, hire a secretary, coordinate a joint venture with an overseas colleague, write a report for the boss. 

·         A CEO on a typical day spends -

            59% - in scheduled meetings, 22% - desk work, 10% - in unscheduled meetings, 6% - telephone,  3% - touring the company

THE SCOPE OF MANGEMENT

·         Management in profit- seeking organisations

            -           Large Businesses, Small and Start- Up           Businesses, International Management

·         Management in not- for- profit organisations

            -           Government Organisations, Educational        Organisations, Healthcare facilities,               Non- traditional Settings  

PLANNING &
DECISION MAKING
Determines Courses of Action

·         Planning – Setting an organisation’s goals and deciding how best to achieve them.

·         Decision Making – Part of the planning process that involves selecting a course of action from a set of alternatives.  

Planning Process

·         The planning process takes place within an environmental context.

·         Managers must develop a thorough understanding of this context to determine the organization’s mission and develop its strategic, tactical and operational goals and plans.

  Kinds of Organisational Plans

·         Strategic Plans

A general plan outlining decisions of resource allocation, priorities and action steps necessary to reach strategic goals.

l  Tactical Plans

A plan aimed at achieving tactical goals and is developed to implement parts of a strategic plan

l  Operational Plans

Focuses on carrying out tactical plans to achieve operational plans

Strategic Plans

l  Assess the internal environment

SWOT Analysis

l  Assess the external environment

PEST Factors

l  Assess the future

GNP, Market, Embargoes, Acquisitions, Merges

l  Assess expectations

Capital Growth, Alternative ways, Attitude towards risk

Tactical Plans

l  Programme

A single- use plan for a large set of activities

l  Project

A single use plan for less scope and complexity than a programme

Specific Mission/ Non- recurring/ Invest Resources/ Clear Termination Point

Operational Plans

l  Day- to- day operations

l  Functional Plans – Production, Facilities, Financial, Marketing, Human Resource

l  Controlling Operational Plans - 

Policy – specifying general response to a designated problem or approach

Standard Operating Procedure- steps to be followed in particular circumstances

Rules and Regulations – how to carry out activities

Contingency Planning

l  The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate.

ORGANISING
Coordinating Activities and Resources

l  Grouping activities and resources in a logical fashion.

l  Deciding by whom it is done and how it is done  

LEADING
Managing People

l  The Set of processes used to get members of the organization to work together to further the interests of the organization. 

l  Leadership

                        * Selection & Recruiting

                        * Training & Development

                        * Motivation

                        * Communication

CONTROLLING
Monitoring and Evaluating Activities

l  Monitoring organizational progress toward goal attainment.

* Measure

                        * Evaluate

                        * Control

l  Strategic Control