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Fundamentals of Management DR. Youssef Hamed Manna Lecturer of Business Administration Faculty of Commerce - AL-Azhar University
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DEFINITIONS OF MANAGEMENT Management is the use of human resources and other resources through planning, organizing, Directing, and controlling to accomplish organizational objectives in an effective and efficient manner.
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What is meant by An Organization? A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone).
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Defining Manager Manager is someone who coordinates and oversees the work of other people so that organizational goals can be accomplished.
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Efficiency Efficiency is a measure of how well or productively resources are used to achieve a goal. It is related to lowering resource waste “Doing things right”, Getting the most output for the least inputs. Effectiveness Effectiveness is a measure of the appropriateness of the goals an organization is pursuing and of the degree to which the organization achieves those goals. “Doing the right things” It is related to Attaining organizational goals. Efficiency Efficiency is a measure of how well or productively resources are used to achieve a goal. It is related to lowering resource waste “Doing things right”, Getting the most output for the least inputs. Effectiveness Effectiveness is a measure of the appropriateness of the goals an organization is pursuing and of the degree to which the organization achieves those goals. “Doing the right things” It is related to Attaining organizational goals. Efficiency and Effectiveness
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THE ROLE OF MANAGEMENT In order to understand the role of management, in the late 1960s, Henry Mintzberg devised a new approach – the managerial roles approach – by observing what managers actually do In order to understand the role of management, in the late 1960s, Henry Mintzberg devised a new approach – the managerial roles approach – by observing what managers actually do Mintzberg isolated ten roles which he believed were common to all managers. As shown in Table 1, these ten roles were grouped into three categories – interpersonal roles, informational roles and decisional roles. In order to understand the role of management, in the late 1960s, Henry Mintzberg devised a new approach – the managerial roles approach – by observing what managers actually do In order to understand the role of management, in the late 1960s, Henry Mintzberg devised a new approach – the managerial roles approach – by observing what managers actually do Mintzberg isolated ten roles which he believed were common to all managers. As shown in Table 1, these ten roles were grouped into three categories – interpersonal roles, informational roles and decisional roles.
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1- Interpersonal Roles 1/1 Figurehead Performs ceremonial and symbolic duties such as greeting visitors, signing legal documents. 1/2 Leader Direct and motivate subordinates, training, counseling, and communicating with subordinates. 1/3 Liaison Maintain information links both inside and outside organization, use mail, phone calls, and meetings.
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2- Informational Roles 2/1 Monitor Seek and receive information, scan periodicals and reports, maintain personal contacts 2/2 Disseminator Forward information to other organization members, send memos and reports, make phone calls 2/3 Spokesperson Transmit information to outsiders through speeches, reports, memos
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3- Decisional Roles 3/1 Entrepreneur Initiate improvement projects, identify new ideas, delegate idea responsibility to others 3/2 Disturbance Handler Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises 3/3 Resource Allocator Decide who gets resources, scheduling, budgeting, setting priorities 3/4 Negotiator Represent department during negotiation of union contracts, sales, purchases, budgets, represent departmental interests
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IMPORTANCE OF MANAGEMENT STUDY The need and significance of management functions in the modern organizations are given below. 1. To increase the efficiency and effectiveness. 2. to give a definite shape to management function. 3. to improve research in management. 4. to attain social goals by effective utilization of resources.
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Universality of Management It means that Management has universal application in all kinds/nature and size of business activities. It means that Management has universal application in all kinds/nature and size of business activities.
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LEVELS OF MANAGEMENT 1- First-line managers First-level managers are directly responsible for the performance of employees involved in operations. They are usually called supervisors They are usually called supervisors Responsible for day-to-day operations. Supervise people performing activities required to make the good or service.
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2- Middle managers Middle-level managers deal with the actual operation of various departments in an organization. They are directly responsible for the performance of managers at lower levels. Their typical titles include “ manager ”, “ director ”, “ chief ”, “ department head ” and “ divisional head. ” Supervise first-line managers. Are responsible to find the best way to use departmental resources to achieve goals.
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3- Top managers Top-level managers are usually appointed, elected or designated by the organization ’ s governing body. They are few in number, and they include job classifications such as the “ Chief Executive Officer ” (CEO), “ President ”, “ Vice President ”, “ Senior Vice President ” and “ Executive Director. ” Top-level managers are responsible for taking major decisions for the organization as a whole. * Responsible for the performance of all departments and have cross-departmental responsibility. * Establish organizational goals and monitor middle managers.
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MANAGEMENT SKILLS A manager ’ s job is varied and complex. Hence, managers need certain skills to perform the functions associated with their jobs. During the early 1970s, Robert K. Kalz identified three kinds of skills for administrators. These are technical, human and conceptual skills. During the early 1970s, Robert K. Kalz identified three kinds of skills for administrators. These are technical, human and conceptual skills.
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1- Technical Skills Technical skills refer to the ability of a person to carry out a specific activity. In order to do so, one needs to have knowledge of methods, processes and procedures. Engineers, computer specialists, and accountants Technical skills are essential for first-level managers. For example, employees at the operational level work with tools, and their supervisors must be able to teach them how to perform the tasks assigned to them using these tools. First-level managers spend much of their time in training subordinates and clarifying doubts in work-related problems
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2- Human Skills Human skills or interpersonal skills refer to the ability of a person to work well with other people in a group. It is the ability to lead, motivate, and communicate with people to accomplish certain objectives
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3- Conceptual Skills It is the ability to understand and coordinate the full range of corporate objectives and activities. These skills are most important at the top management level, as top-level managers have the greatest need to see the “ big picture, ” to understand how the various parts of the organization relate to one another and associate the organization with the external environment.
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APPROACHES TO THE STUDY OF MANAGEMENT A brief discussion about different approaches of management is given below. 1- EMPIRICAL OR CASE APPROACH In this approach, one tries to understand management principles with the help of cases. It also identifies the situations, wherein organizations have either succeeded or failed by following this approach
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2- HUMAN BEHAVIOR APPROACH The human behavior approach is the outcome of the thoughts developed by behavioral scientists who look at the organization as collectivity of people
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3- DECISION THEORY APPROACH The major emphasis of this approach is that decision making is the job of every manager. The manager is a decision maker and organization is a decision-making unit. Therefore, the basic problem in managing is to make rational decision
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4-CONTINGENCY OR SITUATIONAL APPROACH The basic idea of contingency approach is that there cannot be a particular management action which will be suitable for all situations
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