Human Resource Management – MGT - 501 Lecture 2 Essential of Management Prof. Dr. Mukhtar Ahmed mgt501@vu.edu.pk Virtual University – Pakistan www.vu.edu.pk

Today’s Topics Concepts and Essential of Management Management and its relationship with HRM

Management Manage self Manage others, and Manage the environment

Management - Definition The process of Planning, Organizing, Directing and Controlling organizational resources to achieve organizational goals

Functions of Management Controlling Planning Organizing Leading

Planning Planning: process used by managers to identify and select appropriate goals and courses of action for an organization. Steps to good planning 1. Which goals should be pursued? 2. How should the goal be attained? 3. How should resources be allocated? The outcome of the planning process is the organization’s strategy

Planning (cont…..) A process of formulating goals and developing ways to achieve them A management function focusing on setting organizational goals and objectives

Organizing Organizing: creating the structure of working relationships between employees that best allows them to work together and achieve goals. departments (according to the tasks performed) lines of authority and responsibility The outcome of organizing is an organizational structure.

Organizing (cont…..) A management function that deals with what jobs are to be done, by whom, where decisions are to be made, and the grouping of employees

Leading Leading: determining direction, stating a clear vision for employees to follow, and helping employees understand the role they play in attaining goals. power, influence, vision, persuasion, and communication skills The outcome of leading is a high level of motivation and commitment

Leading (cont….) The process of using influence to motivate other s to work toward accomplishing goals A management function concerned with directing the work of others

Controlling Controlling: evaluating how well the organization is achieving its goals and taking corrective action to improve performance. Monitor individuals, departments, and the organization to determine if desired performance has been reached. The outcome of controlling is an accurate measurement of performance and regulation of efficiency and effectiveness.

Controlling (cont….) A management function concerned with monitoring activities

The Management Process ORGANIZATIONAL GOALS Planning Leading Controlling Organizing HUMAN RESOURCES INFORMATION RESOURCES PHYSICAL RESOURCES FINANCIAL RESOURCES

Organizational Performance Efficiency: A measure of how well resources are used to achieve a goal “Doing Things Right” Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved “Doing the Right Things Right” Managers are key components to organizational performance. It is a managers responsibility to choose the correct output goals and then try to minimize the input of resources to attain the same output goal. Efficiency and Effectiveness are key terms to understand when talking about organizational performance. Efficiency – doing things right! (produce 1000 z widgets (when the customer wanted x) at a low cost) Effectiveness –doing the right things right. (produce X widgets at a low cost) Refer to figure 1-1 pg. 6 Organizations are more effective when managers choose the correct goals and then achieve them.

‘Managing is like holding a dove in your hand ‘Managing is like holding a dove in your hand. If you squeeze too tight, you kill it. Open your hand too much, you let it go’ - T. Lasorda

Let’s discuss who performs the functions of management Manager ?? Let’s discuss who performs the functions of management

Manager Individuals in an organization who direct the activities of others

Manager Someone who participates in the management process by planning, organizing, leading, or controlling the organization's resources

Manager The people responsible for supervising the use of an organization’s resources to meet its goals Someone who participates in the management process by planning, organizing, leading, or controlling the organization's resources

Keep three balls rolling … Quality Cost Customer Satisfaction

Managerial Skills Conceptual skills Human skills Technical skills The ability to analyze and diagnose a situation and distinguish between cause and effect Human skills The ability to, understand, alter, lead, and control the behavior of other individuals and groups Technical skills The specific knowledge and techniques required to perform an organizational role

What are different levels of management? Let’s discuss!

Levels of Managers Top Managers Middle Managers First-line Managers

Managerial Skills & Managerial Level Top manager Middle manager First-line manager Conceptual Skills Interpersonal Skills Technical Skills

Managerial Roles Interpersonal Roles Informational Roles Decisional Roles

BASIC MANAGERIAL ROLES AND SKILLS 1 Interpersonal roles figurehead attends activities to represent the organization; leader encourages employees to improve productivity and shows them how to do it; liaison coordinates the activities of two or more people, groups of people, or organizations.

BASIC MANAGERIAL ROLES AND SKILLS 2 Informational roles monitor actively seeks information that may be of value to the organization; disseminator transmits information to others in the organization; spokesperson transmits information about the organization to people outside the organization.

BASIC MANAGERIAL ROLES AND SKILLS 3 Decisional roles entrepreneur develops new ideas and initiates changes in the organization; disturbance handler handles problems that arise such as strikes, copyright infringements, and energy shortages; resource allocator determines who should receive the available resources and who should have access to the manager's time; negotiator represents the organization in a negotiation setting such as collective bargaining for a union contract or developing an agreement with a consultant.

Remember! It’s not enough to know about managing… you need to be prepared to do it!

Managing People All managers must be concerned with activities like…. Staffing (hiring and firing) Retention (motivating people) Development (encourage & train) Adjustment (alternative arrangements) Managing change (burning issue of today)

HR is part of Management! Management & HRM HR is part of Management!

HR Professionals’ Responsibilities Establish HRM procedures Develop/choose HRM methods Monitor/evaluate HRM practices Advise/assist managers on HRM-related activities

HRM can help manage… Productivity (increasing performance) Operations (cohesive linking) Relationships (between diff. levels of mgt / dept) Conflict (help handling conflict) Stress (managing stress) Reward systems (help motivate people)

Effective HRM Effective Organization

Let’s Stop it here !

Human Resource Management – MGT - 501 Lecture 2 Essential of Management Prof. Dr. Mukhtar Ahmed mukhtar59@yahoo.com Virtual University – Pakistan www.vu.edu.pk