Chapter Seven:

Fundamentals of Management

Chapter Objectives
Management and its importance to the pursuit of various organizational and individual goals Different managerial functions-planning, organizing, staffing, directing, and controlling Three levels of management and the various roles mangers play Four core management skills needed by managers at each level and in each role

Definition of Management
Management is the application of planning , organizing, staffing, directing, and controlling functions in the most efficient manner possible to accomplish objectives. Different goals of any organization: Profit (Beximco Textiles Ltd.), knowledge (Dhaka University), Social security (Police). Manager is someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.

What Is Management?
Management is concerned with effectiveness and efficiency. Effectiveness:
Doing the right things Attaining organizational goals. Effectiveness means getting the things done/making right decision and implementation.

Efficiency:
Doing things right
Getting the most output for the least inputs.

Efficiently means using resources optimally/ by best possible use.

What Do Managers Do?

Managers get things done through other people. They make decisions, allocate resources, and direct the activities of others to attain goals. They do their work in an organization.

4 basic and distinct kinds of inputs are available in any organization

1. Human Resources. (Managerial talent, labor) 2. Financial Resources. (Capital in operations) 3. Physical Resources. (Raw materials, equipment) 4. Information Resources. (Information used for decision-making)

Goal Vs Objective

Cascade Approach
A procedure of setting objectives in which the objectives are set from the top level of management to the lowest level.
Organizational Objectives (overall Organizational objectives) Departmental Objectives (any departments objectives)

Subunit Objectives (team of Employees)

Individual Objectives (each Employee)

Why Objectives are important?

1. To focus attention on the organizations mission. 2. To help integrate the work of the organization. 3. To help measure the organizational performance.

Management Functions
1. Planning and Decision Making
Setting organizations goals and decisions for actions from alternative ways

2. Organizing
Determining to use resources in best possible way

3. Staffing
Selection, training, developing etc.

5. Controlling
Comparing the estimated and actual results and correct actions for effectiveness

4. Leading
Motivate/influence the employees to work

Functions of Management
1. Planning Setting goals that sets invisible hand to guide for the employees. Selecting course of actions from a set of alternatives. Three reasons for planning To establish an overall direction for the organizations future. To identify and allocate organizations resources. To decide which tasks must be done, who will do the job, how long the job will take for achieving the goals.

Sometime managers are not interested for planning! WHY?

Planning is risky. Planning is costly.

Planning is difficult.

Steps in Planning:
Being Aware of opportunity. (The Market, Competition, Customer Demand, Organizations Strength & Weakness) Setting Objectives or Goals. Considering Planning and Premises. (In what environment Internal or External-will the plan operate).

 Identify the alternative.

Comparing the alternative in the light of goal sought. Choosing the best alternative. Formulating Supportive plans.( Buy equipment, material, hire & train workers) Numbering plans by making budget. (volume & price of sales, operating expenses, expenditure for capital equipments etc)

2. Organizing
Translate the planning into reality Group and organize the resources in logical fashion. ** The identification and classification of required activities. ** The grouping of activities and assignment of job tasks necessary to attain objectives. ** The assignment of each grouping to a manager with the authority (delegation) necessary to supervise it. ** The provision and coordination horizontally and vertically in the organization.

3. Staffing
The management function of selecting, placing, training, developing, and compensating subordinates. Human Resource Management.

Overview of Staffing Function

1. Organization plan. 2. Number and kinds of manager required. 3. Analysis of product and future need for manager. 4. External and internal sources. 5. Recruitment, Selection, Placement, Promotion, Separation. 6. Appraisal Career Strategy by training and development. 7. Leading and Controlling.

4. Leading/Directing
1. - Human Factors and Motivation. - Motivation results satisfaction. - Set of processes to make employees work together. - Special motivational techniques*Money, *Participation, *Quality of work life.

Leadership
Leading can be accomplished through LEADERSHIP the process of influencing the activities of an individual or group toward accomplishing objectives.

Autocratic Leadership
-A type of close supervision in which the manager delegates as little authority as possible. -Plans and make the necessary decisions himself. -Manager provides detailed instruction. -Individuals or even groups of subordinates may actively resist and develop hostilities toward the autocratic manager. -Autocratic direction may be necessary in cases where employees have skill deficiencies, lack of experience etc.

Democratic Leadership
- A type of general supervision in which the manager consults with subordinates about job-related issues (job activities, problems, corrective actions). - Managers seek help and ideas. - With experienced, skilled and intelligent group of employees, a manager would likely to benefit from using a democratic style that encourages participation.

Laissez-Faire Leadership
-A type of supervision in which the manager avoids power and responsibility by giving assignments and support but staying out of groups way. -He/she exists as a contact person who provides information and guidance that can be helpful in accomplishing objectives. -This style may be appropriate when a person who is a liberal arts or business graduate (i.e. has minimum technical knowledge) is managing a group of engineers.

5. Controlling
-Comparing and monitoring the activities to attain the organizational goals. -Taking corrective actions if any deficiency detected.

Four Basic Steps of Control

The process of control has four basic steps: (A) Set standards for time, quality, quantity and so on. (B) Measure performance (results). (C) Compare performance to standards. (D) Make necessary modifications..

Levels of Management
Top Managers -Consists of small group of executives. -Common title usedCEO, President, MD etc. -They set goals, strategy and operating policies. -Represent the organization in the external environment (Government, other companies, negotiation etc.).
Top Managers

Middle Managers

First line Managers

Levels of Management
Middle Managers -Generally, largest group in any organization. -Common title used plant manager, operation manager, division head etc. -Major responsibilities implementing the policies and plans, supervising and coordinating operations of lower level managers. First line Managers -Last level of managers. -Supervise and coordinate the activities of operating employees. -Common title used supervisor, coordinator etc. -Spend little or no time on planning and organizing.

Managerial Roles
Henry Mintzberg defined 10 roles played by managers under 3 broad categories: 3 Categories 1. Interpersonal Roles. 2. Informational Roles. 3. Decisional Roles.

Category
Interpersonal

Role
Figure Head Leader Liaison

Example
Ribbon cutting ceremony Motivating employees Coordinating activities

Informational

Monitor Disseminator Spokesperson

Entrepreneur Disturbance handler Resource allocation Negotiator

Decisional

Scanning industry reports Sending memos Making speech Developing new ideas Resolving conflict Examining budgets Pursuing agreements

Core Managerial Skills

Technical Skills -Important for first line managers. -Mostly for technical, engineering persons. -Training, education, question answering are the major means. Interpersonal Skills -Communication with the inside and outside people. -Mostly done by middle and top managers. -Communicating, understanding and motivating are the major ways.

Core Managerial Skills

Conceptual Skills -Managers ability to think in abstract form and not in reality. -Vital for all managers. -Education, continuous education are ultimate ways. Diagnostic Skills -Visualizing the factors affecting the actions. -Best suited for market oriented operations.

Discussion questions
1.What is planning? Why is planning important in any business organization? 2.What type of managerial skills are needed by the following people:
CEO of Grameen phone Receptionist at Sheraton General manger at Square Pabna Mr. Rashed at the asst registrars office VC at BRAC University

End of the Chapter