1. CAVENDISH UNIVERSITY ARMENIA 2009
Contemporary Trends of Management Development
Management Concepts
CAVENDISH UNIVERSITY ARMENIA 2009

2. The importance and implications of management for Armenia
Armenia’s relevant positons in the Global Competitiveness Report (GCR) (among 131 countries)
Reliance on professional management – 127
Willingness to delegate authority – 123
Quality of management schools – 121
Extent of incentive compensation – 114
Efficacy of corporate boards - 113
Efficiency of legal framework – 104
Production process sophistication – 98

3. Definitions and terms Organization
A group of people working together in a structured and coordinated fashion to achieve a set of goals.
Management
A set of activities directed at an organization’s resources with the aim of achieving the organizational goals in an efficient and effective manner.
Manager
Someone whose primary responsibility is to carry out the management process.
Planning
Setting an organization’s goals and deciding how best to achieve them.
Decision making
Part of planning process that involves selecting a course of action from a set of alternatives.
Organizing
Grouping activities and resources in a logical fashion.
Leading
The set of processes used to get members of the org.-n to work together to advance the interests of the org.-n.
Controlling
Monitoring organizational progress toward goal attainment.

4. Organization and its Purpose
A collection of people working together to achieve a common purpose.
The purpose of any organization is to provide useful goods and/or services that return value to society and satisfy customer needs in order to justify continued existence.

5. Purpose of Business Organization
Make profit for its owners.
Furnish its customers with products and services.
Provide income for its employees.
Increase the level of satisfaction for everyone involved.

6. Organizations as Systems
Organizations are open systems composed of interrelated parts that function together to achieve a common purpose.
Transformation process:
workflows turn resources into outputs
Inputs from the environment •
People, technology
Money
Materials
Information
Planning
and decision
making
Leading
Organizing
Controlling
Product outputs

7. What is Management? A set of activities
planning and decision making, organizing, leading, and controlling
directed at an organization’s resources
human, financial, physical, and information
with the aim of achieving
Organizational Goals in an efficient
and effective manner.

8. Information resources
Management Process G O A L S
Human resources
Planning and decision making
Organizing
Efficiently
Financial resources
Effectively
Physical resources
Controlling
Leading
Information resources
Bring examples of different types of organizations (e.g. municipality, university, manufacturing business, software company), and identify four types of resources for them.
Highlight what is efficiency and effectiveness.

9. Efficiency versus Effectiveness

10. Basic Purpose of Management
Management process can be measured by two criteria: effectiveness and
efficiency.
Effectiveness – doing the right thing. Manager’s ability to select the right goal and the appropriate means for achieving it.
Efficiency – doing things right. It measures the cost of attaining a given goal, e.g. to achieve the same level of production with fewer resources, to increase the production level with the same resources.
Management requires both effectiveness and efficiency; but whereas efficiency
is important, effectiveness is indispensable.
The manager who is ineffective but is efficient, does not help the organization.
Conversely, the manager who makes the right choices, however clumsily, helps
the organization even he is not very efficient.

11. What is a Manager?
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.

12. Management Functions
Managers set and achieve goals by using human, financial, material, and information resources by planning, organizing, staffing and controlling – in other word they undertake four functions of management.
The four management functions are inseparable and logically simultaneous elements of management process – e.g. implementing plans requires structuring work groups (organizing) and human resources (staffing).

13. The Management Process
Planning and Decision Making
Setting an organization’s goals and selecting a course of action from a set of alternatives to achieve them.
Organizing
Determining how activities and resources are grouped.
Staffing
The set of processes used to get organizational members to work together to advance the interests of the organization.
Controlling
Monitoring organizational progress towards goals. 9

14. Levels of Management Top Managers Middle managers First-line managers
CEO, Vice presidents
Goals, overall strategies and policies
Major acquisitions, investment, company growth, entering or abandoning markets
Spending time on thinking, meeting, talking
Middle managers
Below vice presidents and above supervisors
Implementation of plans and policies
Supervising and coordinating the work of lower level managers
Inventory management, quality control, equipment failures, etc.
First-line managers
Manage their specific groups and direct the actual work of organization
Supervisors – supervise the work of employees
An example from an IT company
Marketing
product dev.
pricing
promotion
distribution
Finance
accounting
budgeting
fin. control
investments
Operation
product. control
invent. control
plant layout
quality control
Human Resources
HR planning
recruiting
selection
promotion
training
Administration
administrative and logistics issues
Others

15. Managerial Roles
To plan, organize, staff and control, a manager must fill various roles at different times.
A role is a set of expectations for a manager’s behavior.
Management theorist Henry Mintzberg views management behavior in terms of ten roles grouped into three categories: concerned with interpersonal relationships, transfer of information and decision making.

16. 10 Managerial Roles Figurehead Ribbon cutting ceremony, dinners, etc.
Interpersonal
Leader
Hiring, training and motivating employees
Liaison
Serving as a coordinator or link between people, groups, organizations
Monitor
Seeking information that may be of value
Informational
Disseminator
Transmitting relevant information back to others
Spokesperson
External communication - carry information and communicate to others
Entrepreneur
Initiation of ideas
Disturbance handler
Handling problems – conflicts, strikes, resource shortages, etc.
Decisional
Resource allocator
Allocation of funds
Negotiator
Negotiating with other groups and organizations as a representative of the company

17. Roles and Management Functions
By effectively discharging multiple roles, managers accomplish their functions.
In planning and organizing, a manager performs as resource allocator and entrepreneur.
In staffing, a manager plays the leadership role by providing subordinates with feedback on performance.
In controlling, a manager performs as monitor and disseminator.

18. Diagnostic and analytical
Managerial skills
Skills necessary to accomplish or understand tasks relevant to the organization.
Technical
The ability to communicate with, understand and motivate both individuals and groups.
Interpersonal
Skills that depend on the ability to think in the abstract.
Conceptual
Skills that enable a manager to visualize the most appropriate response to a situation.
Diagnostic and analytical
Note that “synthesis” is a critical skill. Very frequently this element of management is missing …

19. Fundamental Management Skills
Management Skill Mixes at Different Organizational Levels

20. Nonmanagerial Thinking
Doing a job rather then supervising it.
Being unable or unwilling to make decisions.
Competing with employees.
Hiring weak people.
Desire to be recognized as a powerful person.
Being unable or unwiling to delegate decision making.
Avoiding rather then dealing with conflict.
Providing insufficient praise.

21. Competencies for managerial success
Communication – ability clearly to share ideas and findings.
Teamwork – ability to work effectively as a team member and team leader; e.g. team contribution, team leadership, conflict management, negotiation and consensus building.
Self-management – ability to evaluate oneself, modify behavior, and meet performance obligations.
Leadership – ability to influence and support others to perform complex and ambiguous tasks.
Critical thinking – ability to gather and analyze information for creative problem solving.
Professionalism – ability to sustain positive impression, instill confidence, and maintain career advancement.

22. Myths and Realities of Manager’s Job
Myth: Manager is a reflective, methodical planner with time to systematically plan and work through the day.
Reality: Manager takes on so much and encounters such constant interruption that little time remains for reflection.

23. Myths and Realities of Manager’s Job
Myth: Effective manager has no regular duties to perform. He establishes others’ responsibilities and then relaxes to watch others do the work.
Reality: Managers have regular duties to perform. They must attend meetings, see to visitors from the community and other parts of the organization as well as continuously process information. To perform all their duties, managers often extend the day into night.

24. Why Bother to Study Management!
1. Why should I study management? I’m going to be an accountant.
Understanding and developing management
skills is not a waste of time at all. Managers work
in all types of organizations, at all levels, and in all
functional areas. All organizations benefit from
efficient and effective management. Management
skills are important to anyone who intends to
pursue a career.

25. Why Bother to Study Management!
2. Why should I study management? It’s all a common sense.
Although many management concepts may seem
obvious, developing them on your own or putting
them into practice in the proper way, at the right
time, and under appropriate conditions is difficult.
Planning, organizing, controlling, staffing and
leading are real skills that can be learned/improved.

26. Why Bother to Study Management!
3. Why should I study management? Experience is the best teacher.
Although this course can not replace the
knowledge and skills you will develop through
experience, it can be a valuable preparation and
supplement for your experience. Many of the
concepts covered in this course will help you make
sense out of your experiences more quickly.

27. Management: Science or Art?
The Science of Management
Assumes that problems can be approached using rational, logical, objective, and systematic ways.
Requires technical, diagnostic, and decision-making skills and techniques to solve problems.
The Art of Management
Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights.
Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities. 18