MNG1100 PRINCIPLES OF MANAGEMENT 1 LECTURER HECTOR EDWARDS

MANAGER A manager is someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals. A manager is someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals. A manager allocates human, material, and information resources in pursuit of an organization’s goals. A manager allocates human, material, and information resources in pursuit of an organization’s goals. Managers are formally responsible for supporting the work efforts of other people. Managers are formally responsible for supporting the work efforts of other people. 2

MANAGERS In all organizations, managers perform jobs that involve directly supporting the work effort of others. Being a manager is a unique challenge that carries distinct performance responsibilities. In all organizations, managers perform jobs that involve directly supporting the work effort of others. Being a manager is a unique challenge that carries distinct performance responsibilities. Managers are evaluated on how well the people they direct do their jobs. Managers are evaluated on how well the people they direct do their jobs. Top managers are at or near the top level of the organization who are responsible for making organization-wide decisions and establishing the goals and plans that affect the entire organization. Top managers are at or near the top level of the organization who are responsible for making organization-wide decisions and establishing the goals and plans that affect the entire organization. Responsibility or accountability cannot be delegated. Responsibility or accountability cannot be delegated. 3

MANAGERS Middle managers are between the first-line level and the top level of the organization who manage the work of first-line managers. Middle managers are between the first-line level and the top level of the organization who manage the work of first-line managers. These managers have delegated authority. These managers have delegated authority. First-line managers are at the lowest level of the organization who manage the work of non-managerial employees who are involved with the production or creation of the organization’s products. First-line managers are at the lowest level of the organization who manage the work of non-managerial employees who are involved with the production or creation of the organization’s products. 4

MANAGER A manager may be given another title. However, once the person is responsible for the allocation of resources and the efforts of a group to achieve a common goals, the individual is a manager. A manager may be given another title. However, once the person is responsible for the allocation of resources and the efforts of a group to achieve a common goals, the individual is a manager. A person can be a manager based on function, location or activity, and include department manager, sales manager, division manager, taskforce manager, and plant manager. A person can be a manager based on function, location or activity, and include department manager, sales manager, division manager, taskforce manager, and plant manager. 5

MANAGER A functional manager supervises employees having specialized skills in a single area of operation, such as accounting, personnel, marketing, or production. A functional manager supervises employees having specialized skills in a single area of operation, such as accounting, personnel, marketing, or production. General managers are responsible for the overall operations of a complex unit such as a company or a division. General managers are responsible for the overall operations of a complex unit such as a company or a division.

MANAGEMENT Management is the process of coordinating work activities so that they are completed efficiently and effectively with and through people. Management is the process of coordinating work activities so that they are completed efficiently and effectively with and through people. Efficiency is getting the most output from the least amount of inputs. It is referred to as doing things right. Efficiency is getting the most output from the least amount of inputs. It is referred to as doing things right. Effectiveness is completing activities so that organizational goals are attained. It is referred to as doing the right things. Effectiveness is completing activities so that organizational goals are attained. It is referred to as doing the right things. 7

MANAGEMENT Efficiency is the means to the end - how we get things done, while effectiveness is the end- achieving what was set out to be accomplished. Efficiency is the means to the end - how we get things done, while effectiveness is the end- achieving what was set out to be accomplished. Efficiency cannot be realized unless effectiveness has been attained. Efficiency cannot be realized unless effectiveness has been attained. One can be effective without being efficient, however it is not possible to be efficient without being effective. One can be effective without being efficient, however it is not possible to be efficient without being effective. 8

MANAGEMENT Management and administration are not the same. Management is concerned primarily with results and taking calculated risks. This means that managers do certain things in order to get results for themselves and others. This may include a variety of management activities. Management and administration are not the same. Management is concerned primarily with results and taking calculated risks. This means that managers do certain things in order to get results for themselves and others. This may include a variety of management activities. Managers also evaluate various things in order to try and minimise risks and improve output. Managers also evaluate various things in order to try and minimise risks and improve output. 9

ADMINISTRATION On the other hand, administration is concerned with procedures, accountability and risk avoidance. This means that in proper administration, actions are carried out according to the correct procedures. If part of the procedure is not followed, people will be held accountable. On the other hand, administration is concerned with procedures, accountability and risk avoidance. This means that in proper administration, actions are carried out according to the correct procedures. If part of the procedure is not followed, people will be held accountable. Here there is no need for creativity, or initiative, since things have to be done in accordance with prescribed ways. This is in keeping with the Scientific Management School, and the belief that there is one best way. Here there is no need for creativity, or initiative, since things have to be done in accordance with prescribed ways. This is in keeping with the Scientific Management School, and the belief that there is one best way.

ADMINISTRATION The key difference is that management aims at taking calculated risks, whereas administration aims at avoiding it completely in order to ensure a proper and effective administration process. The key difference is that management aims at taking calculated risks, whereas administration aims at avoiding it completely in order to ensure a proper and effective administration process. This leads to bureaucracy, and more concern for the means than the ends, with persons loosing sight of the overall objective or goals. This leads to bureaucracy, and more concern for the means than the ends, with persons loosing sight of the overall objective or goals.

MANAGEMENT FUNCTIONS As with administration and management, management and leadership are not the same. The role of management is to promote stability or to enable the organisation to run smoothly, whereas the role of leadership is to promote adaptive or useful changes. As with administration and management, management and leadership are not the same. The role of management is to promote stability or to enable the organisation to run smoothly, whereas the role of leadership is to promote adaptive or useful changes. The main management functions are – The main management functions are – planning, planning, organizing, organizing, leading, and leading, and controlling. controlling. 12

MANAGEMENT FUNCTIONS Planning is the management function that involves the process of defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities. Planning is the management function that involves the process of defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities. Organizing is the management function that involves the process of determining what tasks are to be done, who is to do them, how the task are to be grouped, who reports to whom, and where decisions are to be made. Organizing is the management function that involves the process of determining what tasks are to be done, who is to do them, how the task are to be grouped, who reports to whom, and where decisions are to be made. 13

MANAGEMENT FUNCTIONS Leading involves motivating subordinates, influencing individuals or teams as they work, selecting the most effective communication channels, or dealing in any way with employee behaviour issues. Leading involves motivating subordinates, influencing individuals or teams as they work, selecting the most effective communication channels, or dealing in any way with employee behaviour issues. Controlling is the management function that involves monitoring actual performance, comparing actual to standard, and taking action, if necessary. Controlling is the management function that involves monitoring actual performance, comparing actual to standard, and taking action, if necessary. 14

MANAGEMENT SKILLS A skill is an ability to translate knowledge into action that results in a desired performance. A skill is an ability to translate knowledge into action that results in a desired performance. Some have divided the essential managerial skills into three categories: technical, human and conceptual. Some have divided the essential managerial skills into three categories: technical, human and conceptual. These skills vary across the different levels of management. These skills vary across the different levels of management. 15

TECHNICAL SKILLS Technical skill is an ability to perform specialized tasks. Some technical skills require preparatory education, whereas others are acquired through specific training and on-the–job experience. Technical skill is an ability to perform specialized tasks. Some technical skills require preparatory education, whereas others are acquired through specific training and on-the–job experience. This type of skill is very important at the lower levels of the organization, where more routine activities that are of a repetitive nature take place. This type of skill is very important at the lower levels of the organization, where more routine activities that are of a repetitive nature take place. 16

HUMAN SKILLS Human skill is the ability to work well with other people individually and in a group. People with this skill are able to interact well with others, engage in persuasive communication, deal successfully with disagreements and conflicts, and more. Human skill is the ability to work well with other people individually and in a group. People with this skill are able to interact well with others, engage in persuasive communication, deal successfully with disagreements and conflicts, and more. This skill is very important at all levels since persons have to interact with other people continuously within the workplace. This skill is very important at all levels since persons have to interact with other people continuously within the workplace. 17

CONCEPTUAL SKILLS Conceptual skill is the ability to analyze and solve complex problems. This skill is used to identify problems and opportunities, gather and interpret relevant information, and make good problem solving decisions and serve the organization’s purpose. Conceptual skill is the ability to analyze and solve complex problems. This skill is used to identify problems and opportunities, gather and interpret relevant information, and make good problem solving decisions and serve the organization’s purpose. Conceptual skills involve the ability to see the organization as a whole and the relationship among its parts. Conceptual skills involve the ability to see the organization as a whole and the relationship among its parts. Individuals at the higher levels of the organization will need this skill if they are going to be successful. Individuals at the higher levels of the organization will need this skill if they are going to be successful. 18

MANAGEMENT ROLES Management roles refer to specific categories of managerial behaviour. These roles can be grouped into three categories; interpersonal, informational and decisional. Management roles refer to specific categories of managerial behaviour. These roles can be grouped into three categories; interpersonal, informational and decisional. Informational roles involve people and other duties that are ceremonial and symbolic in nature, and include figurehead, leader, and liaison. Informational roles involve people and other duties that are ceremonial and symbolic in nature, and include figurehead, leader, and liaison. Figurehead -The role might include networking outside the organization, hosting guest and clients, inducting clients into the local social and business environment. Figurehead -The role might include networking outside the organization, hosting guest and clients, inducting clients into the local social and business environment. 19

INTERPERSONAL ROLES Leader- This role might include goal setting, performance appraisal and reward. Leader- This role might include goal setting, performance appraisal and reward. Liaison - This entails maintaining contact with important people and groups. Liaison - This entails maintaining contact with important people and groups. Informational roles involve receiving, collecting, and disseminating information, and include such roles as monitor, disseminator, and spokesperson. Informational roles involve receiving, collecting, and disseminating information, and include such roles as monitor, disseminator, and spokesperson. 20

INFORMATIONAL ROLES Monitor - Scanning the environment for relevant information, including formal and informal networks. Monitor - Scanning the environment for relevant information, including formal and informal networks. Disseminator - sharing and distributing relevant information with insiders. Disseminator - sharing and distributing relevant information with insiders. Spokesperson - sharing relevant information with outsiders (provide official statements on behalf of the organization). Spokesperson - sharing relevant information with outsiders (provide official statements on behalf of the organization). 21

DECISIONAL ROLES Decisional roles revolve around making choices, and include entrepreneur, disturbance handler, resource allocator and negotiator. Decisional roles revolve around making choices, and include entrepreneur, disturbance handler, resource allocator and negotiator. Entrepreneur - The manager takes initiative to improve the effectiveness and competitiveness of his or her own unit. Entrepreneur - The manager takes initiative to improve the effectiveness and competitiveness of his or her own unit. 22

DECISIONAL ROLES Disturbance handler - It involves dealing with disturbances and conflicts which impact the performance of the manager’s work or that of his/her unit. Disturbance handler - It involves dealing with disturbances and conflicts which impact the performance of the manager’s work or that of his/her unit. Resource allocator (allocating resources to various uses) Including time, finance and people. Resource allocator (allocating resources to various uses) Including time, finance and people. Negotiator(negotiating with other parties) The most time-consuming of all activities; it reflects the manager’s role as a peace-keeper or problem solver. Negotiator(negotiating with other parties) The most time-consuming of all activities; it reflects the manager’s role as a peace-keeper or problem solver. 23

MANAGING SYSTEMS A system is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. A system is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. An open system dynamically interacts with the environment, while closed systems are not influenced by or do not interact with their environment. An open system dynamically interacts with the environment, while closed systems are not influenced by or do not interact with their environment. 24

OPEN SYSTEMS Organizations can be viewed as open systems that obtain resources inputs from the environment and transform them into outputs that are returned to the environment in the form of goods and services. Organizations can be viewed as open systems that obtain resources inputs from the environment and transform them into outputs that are returned to the environment in the form of goods and services. If every thing works right, the environment values these outputs and creates a continuing demand for them. This sustain operations and allows the organization to survive and prosper over the long run. If every thing works right, the environment values these outputs and creates a continuing demand for them. This sustain operations and allows the organization to survive and prosper over the long run.

OPEN SYSTEMS Things can sometimes go wrong in the organization/environment relationship. If the value chain breaks down and an organization’s goods or services become unpopular, it will sooner or later have difficulty obtaining the resources it needs to operate. Things can sometimes go wrong in the organization/environment relationship. If the value chain breaks down and an organization’s goods or services become unpopular, it will sooner or later have difficulty obtaining the resources it needs to operate. The goods and services must not only be desired by the market, but the quality must also be to the market’s expectation. The goods and services must not only be desired by the market, but the quality must also be to the market’s expectation. In the extreme case, it will be forced out of existence. In the extreme case, it will be forced out of existence.

OPEN SYSTEMS RESOURCE INPUTS TRANSFORMATIO N PROCESS PRODUCT OUTPUTS Information Material Technology Facilities Money People Organization Work Activity Consumer Feedback Finished Goods and Service

MANAGING IN DIFFERENT AND CHANGING SITUATIONS The contingency perspective (sometimes called the situational approach) of management underscores and emphasizes the fact that because organizations are different, they face different circumstances (contingencies) and, thus may require different ways of managing. The contingency perspective (sometimes called the situational approach) of management underscores and emphasizes the fact that because organizations are different, they face different circumstances (contingencies) and, thus may require different ways of managing. This approach is intuitively logical due to the diversity within the organization in terms of size, objectives, and work being done. As such there is no universally applicable principles that will work in all situations. This approach is intuitively logical due to the diversity within the organization in terms of size, objectives, and work being done. As such there is no universally applicable principles that will work in all situations.

CONTINGENCY VARIABLES Organization Size Organization Size Routineness of Task Technology Routineness of Task Technology Environmental Uncertainty Environmental Uncertainty Individual Differences Individual Differences

ORGANIZATION SIZE The number of people in an organization is a major influence on what managers do. As size increase, so do the problems of coordination. The structure of an organization with a very large number of staff would not be suitable for an organization with a small amount of staff. As the utilization of a similar structure will lead to inefficiency. The structure of an organization with a very large number of staff would not be suitable for an organization with a small amount of staff. As the utilization of a similar structure will lead to inefficiency.

ROUTINENESS OF TASK TECHNOLOGY To achieve its purpose, an organization uses technology, that is, it engages in the process of transforming inputs into outputs. To achieve its purpose, an organization uses technology, that is, it engages in the process of transforming inputs into outputs. Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or non-routine technologies. Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or non-routine technologies.

ENVIRONMENTAL UNCERTAINTY The degree of uncertainty caused by external forces such as political, socio-cultural, technological, and economic, will influence the management process. The degree of uncertainty caused by external forces such as political, socio-cultural, technological, and economic, will influence the management process. What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment. What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment.

INDIVIDUAL DIFFERENCES Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations. These and other individual differences are particularly important when managers select motivational techniques, leadership style, and job designs. Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations. These and other individual differences are particularly important when managers select motivational techniques, leadership style, and job designs.

ORGANIZATION An organization is formally defined as a collection of people working together in a division of labour to achieve a common purpose. It is a deliberate arrangement of people to accomplish some specific purpose. It is a deliberate arrangement of people to accomplish some specific purpose. The core purpose of an organization may be stated as the creation of goods or services for customers. The core purpose of an organization may be stated as the creation of goods or services for customers. 34