Falkné dr. Bánó Klára BGF Külkereskedelmi Főiskolai Kar Alkalmazott Kommunikáció Tanszék What is management ? An Outline of the History of Management Thought

What is management? Management is both an art and a science. It is a combination of both innate qualities, and education and training. The nature of management is variable. It relates to all activities of the organisation and is done at all levels. Management is an integrating activity which permeates all other aspects of the organisation.

What are Organisations? Which of the following would you call an organisation? a chemical processing company a baby sitting circle the Kovács family The Budapest Business School a South-American tribe St István hospital a skinhead gang

Organisations …’are social arrangements for the controlled performance of collective goals.’ (Buchanan) -Social arrangements: organisations are collections of people who interact with each other because of their common membership of a particular group. -they need collective goals: organisations exist where individuals acting alone cannot achieve goals considered worth pursuing.

Organisations -controlled performance: organisations are concerned with performance in the pursuit of their goals. -leads to the division of labour The preoccupation with performance and the need for control distinguish organisations from other forms of social arrangements.

An organization - summary …is ‘a collection of interacting and interdependent individuals who work toward common goals and whose relationships are determined according to a certain structure.’ (Duncan)

What is management? Management is a generic term and subject to many interpretations. Our concern is with management as involving the exercise of formal authority over the work of other people. We regard it as being: within a structured organisational setting; directed towards aims and objectives; achieved through the efforts of other people; and using systems and procedures.

Management and Managers Managing means leading, making things happen through people: this is relevant to all levels of management, not just the top management. Managers are judged not just on their own performance but on the results achieved by subordinate staff.

The manager’s ten roles (H. Mintzberg)

The manager’s ten roles Interpersonal: Figurehead – symbolic head, needs to perform legal or social routine duties – ceremony, status requests Leader – responsible for the motivation and activation of subordinates, staffing, training, all managerial activities involving subordinates Liaison – maintains network of outside contacts and informers, external board work, other activities involving outsiders

The manager’s ten roles Informational: Monitor - seeks and receives special info to develop full understanding of org and environment, nerve centre of internal and external info, handling all mail and contacts (e.g. periodical news) Disseminator - transmits info to members of the org, interprets, integrates, forwarding mail into org, info flow to, verbal contacts with subordinates Spokesperson - transmits info to outsiders on org plans, policies, actions (e.g. board meetings)

The manager’s ten roles Decisional: Enterpreneur – searches environment for opportunities, initiates improvement projects to bring about change (e.g. strategy and review sessions) Disturbance Handler – responsible for corrective action when org faces unexpected disturbances and crises Resource Allocator – responsible for the allocation of all org resources; scheduling, requests for authorisation, approving, budgeting, programming subordinates work Negotiator – representing the organisation at major negotiations

Five elements of the managerial activity (H. Fayol) Planning (from French prevoyance= to foresee, including forecasting)-examining the future, deciding what needs to be achieved and developing a plan of action. Organising- providing the material and the human resources and building the structure to carry out the activities.

Five elements of the managerial activity Command- maintaining activity among personnel, getting optimum return from employees in the interest of the org. Coordination- unifying and harmonising all activities. Control- verifying that everything is in accordance with plans, instructions, established principles and command.

Summary of the nature of managerial work

Five dimensions of the manager’s job (Torrington, Weightman)

The work of a manager - the environmental setting

Summary: Management is a set of activities, including planning and decision making, organizing, leading and controlling, directed at an organization’s human, financial, physical, and information resources, with the aim of achieving organizational goals in an efficient and effective manner. (R.Griffin)

Management as a Social Process Brech identifies four main elements of management: Planning- determining the broad lines for carrying out operations, preparing methods by which they are carried out and setting standards of performance. Control- checking actual performance against standards to ensure satisfactory progress.

Management as a Social Process Co-ordination- balancing and maintaining the team by ensuring a suitable division of work. Motivation- or inspiring morale. Getting members of the team to work effectively, to give loyalty to the group and to the task. This general inspiration is a process of supervision or leadership.

Management thinking

Summary of Management theories