ESSENTIALS OF MANAGEMENT:Concepts and Essential of Management, Managerâ€™s Roles

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Human Resource Management (MGT501)

Lesson 2

ESSENTIALS OF MANAGEMENT

LESSON OUTLINE

After studying this chapter, students should be able to understand the following:

Concepts and Essential of Management

Management and its relationship with HRM

LESSON OVERVIEW

This lecture discusses the management process and its role in the organization. To start with, first of all we

will define the Management and then we will go through the functions of management as well as

relationship between management and HRM

A. Concepts and Essential of Management

i. What is Management?

Management is the process of working with different resources to accomplish organizational goals. Good

managers do those things both effectively and efficiently. To be effective is to achieve organizational goals. To

be efficient is to achieve goals with minimum waste of resources, that is, to make the best possible use of

money, time, materials, and people. Some managers fail on both criteria, or focus on one at the expense of

another. The best managers maintain a clear focus on both effectiveness and efficiency.

ii. The Functions of Management

What can managers do to be effective and efficient? The management process, properly executed, involves

a wide variety of activities including planning, organizing, leading, and controlling.

These activities, described below, are

Functions of Management

the

traditional

functions

management

Planning

a. Planning

Planning is specifying the goals to be

achieved and deciding in advance the

Controlling

Organizing

appropriate actions taken to achieve

those goals. Planning activities include

analyzing

current

situations,

Leading

anticipating the future, determining

objectives, deciding what types of

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activities the company will engage in,

choosing corporate and business strategies, and determining the resources needed to achieve the

organization's goals. The outcome of the planning process is the organization's strategy.

b. Organizing

Organizing is assembling and coordinating the human, financial, physical, informational, and other

resources needed to achieve goals. Activities include attracting people to the organization, specifying job

responsibilities, grouping jobs into work units, marshalling and allocating resources, and creating conditions

so that people and things work together to achieve maximum success. The outcome of organizing is an

organizational structure.

c. Leading

Leading is stimulating people to be high performers. It is directing, motivating, and communicating with

employees, individually and in groups. Leading involves close day-to-day contact with people, helping to

guide and inspire them toward achieving team and organizational goals. Leading takes place in teams,

departments, divisions, and at the tops of entire organization. The outcome of leading is a high level of

motivation and commitment.

Human Resource Management (MGT501)

d. Controlling

Comprehensive plans; solid organization, and outstanding leaders do not guarantee success. The fourth

functional controlling, monitors progress and implements necessary changes. When managers implement

their plans, they often find that things are not working out as planned. The controlling function makes sure

that goals are met. It asks and answers the question, "Are our actual outcomes consistent with our goals?" It

makes adjustments as needed. Specific controlling activities are to set performance standards that indicate

progress toward long-term goals; to identify performance problems by comparing performance data against

standards; and to take actions to correct

problems. Budgeting, information systems, cost

The Management Process

cutting, and disciplinary action are just a few of

the tools of control. Successful organizations,

large and small, pay close attention to how well

HUMAN

PHYSICAL

Planning

RESOURCES

they are doing. They take fast action when

problems arise, and are able to change as needed.

The outcome of controlling is an accurate

ORGANIZATIONAL

GOALS

measurement of performance and regulation

of efficiency and effectiveness

iii. Effectiveness & Efficiency

Leading

INFORMATION

FINANCIAL

RESOURCES

Productivity = Efficiency x Effectiveness

Dr. Mukhtar Ahmed

Efficiency is the ratio of

Organizational Performance

outputs to inputs.

b. Effectiveness is the degree

Efficiency: A measure of how well resources

to which the organizations

are used to achieve a goal

output correspond to the

"Doing Things Right"

need and wants of the

external environment that

Effectiveness:

A measure of the

include customers' suppliers'

appropriateness of the goals chosen (are these

the right goals?), and the degree to which they

competitors and regulatory

are achieved

agencies.

"Doing the Right Things Right"

iv. Manager

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The member of the organization who

participates in the management process by planning, organizing, leading, or controlling the organization's

resources.

v. Types of Mangers

There are three types of mangers...

`Managing is like holding a dove in your hand.

If you squeeze too tight, you kill it. Open your

1. Strategic

Manager:

Strategic

managers are the senior executives

hand too much, you let it go' - T. Lasorda

of an organization and are

responsible

for

its

overall

management. Major activities include developing the company's goals and plans. Typically

strategic managers focus on long-term

issues and emphasize the survival, growth,

and

overall

effectiveness

the

organization.

2. Tactical Managers: Tactical managers are

responsible for translating the general goals

and plans developed by strategic managers

into objectives that are more specific and activities. These decisions, or tactics, involve both a

Human Resource Management (MGT501)

shorter time horizon and the coordination of resources. Tactical managers are often called middle

managers, because in large organizations they are located between the strategic and operational

managers. Today's best middle managers have been called "working leaders." They focus on rela-

tionships with other people and on achieving results. They are hands-on, working managers. They

do not just make decisions, give orders, wait for others to produce, and then evaluate results.

They get dirty, do hard work themselves, solve problems, and produce value.

3. Operational Managers: Operational managers are lower-level managers who supervise the

operations of the organization. These managers often have titles such as supervisor or sales

manager. They are directly involved with non-management employees, implementing the specific

plans developed with tactical managers. This role is critical in the organization, because opera-

tional managers are the link between management and non-management personnel. Your first

management position probably will fit into this category.

vi. Managers are Universal:

Managers work in all types of organizations, at all levels, and in all functional areas. Large and small

businesses, hospitals, schools and governments benefit from efficient and effective management. The

leaders of these organizations may be called executives, administrators, or principals, but they are all

managers and are responsible for the success or failure of the organization. This success or failure is

reflected in a manager's career. For example, when a CEO saves a failing corporation, the board rewards

this success with bonuses and stock options. When a professional football team starts losing, the owner

fires the coach, not the team.

vii. The Managerial Skills

Managers need three basic sets of skills: technical, interpersonal, and conceptual.

a. Technical Skills

Managerial Skills & Managerial Level

The skills that include knowledge of and

proficiency in a certain specialized field Managers

Top

Managers

need to be technically competent. They need to

know how to plan, organize lead and control. Line

Middle

managers need this skill the most while top

Managers

manager will need minimum of technical skills.

Line

b. Interpersonal Skills/Human Skills

Interpersonal skills include the ability to work well Managers

with other people both individually and in a

Conceptual

Human

Technical

group. Mangers need good interpersonal skills,

knowledge about human behaviors and group

processes, ability to understand the feelings, attitudes and motives of others, and ability to communicate,

clearly and persuasively. Human skills are very

important at each level of management.

Levels of Managers

c. Conceptual Skills

Conceptual skills include the ability to think and to

conceptualize about abstract and complex situations,

to see the organization as a whole, and to

Top

Managers

understand the relationships among the various

subunits, and to visualize how the organization fits

Middle

into its broader environment. Conceptual skills

Managers

include analytical ability, logical thinking, concept

formation, and inductive reasoning. They manifest

First-line

themselves in things like good judgment, creativity,

Managers

and the ability to see the big picture. Top

mangers/CEO needs this type of skill the most.

Dr. Mukhtar Ahmed

Human Resource Management (MGT501)

viii. Levels of Management Three level in the organization can classify managers, particularly for

traditionally structured organizations...

1. First-line managers are the lowest level of management. They're often called supervisors

2. Middle managers include all levels of management between the first-line level and the top level of

the organization.

3. Top managers include managers at or near the top of the organization who are responsible for

making organization wide decisions and establishing the plans and goals that affect the entire

organization.

Manager's Roles:

a. Interpersonal roles

· Figurehead--duties that are ceremonial and symbolic in nature

· Leadership--hire, train, motivate, and discipline employees

· Liaison--contact outsiders who provide the manager with information. These may be individuals or

groups inside or outside the organization.

Informational roles

Monitor--collect information from organizations and institutions outside their own

Disseminator--a conduit to transmit information to organizational members

Spokesperson--represent the organization to outsiders

c. Decisional roles

· Entrepreneur--managers initiate and oversee new projects that will improve their organization's

performance

· Disturbance handlers--take corrective action in response to unforeseen problems

· Resource allocators--responsible for allocating human, physical, and monetary resources

· Negotiator role--discuss issues and bargain with other units to gain advantages for their own unit

All managers are mostly concerned with following activities:

· Staffing

· Retention

· Development

· Adjustment

· Managing change

HR Professionals' Responsibilities:

Line manager

Authorized to direct the work of subordinates--they're always someone's boss. In addition, line managers

are in charge of accomplishing the organization's basic goals.

Staff manager

Authorized to assist and advise line

managers in accomplishing these basic

goals. HR managers are generally staff

managers.

B. Management

and

its

Effective

relationship with HRM

Organiizatiion

HRM

Organ zat on

HRM

There are five basic functions that all

managers

perform:

planning,

organizing, staffing, leading, and

controlling. HR management involves

the policies and practices needed to

carry out the staffing (or people)

Dr. Mukhtar Ahmed

Human Resource Management (MGT501)

function of management.

HRM can help to manage the following factors in the organization.

· Productivity

· Operations

· Relationships

· Conflict

· Stress

· Reward systems

Effectiveness and success of entire organization depends upon effective manpower of organization.

Key Terms

Controlling: Specific activities are to set performance standards that indicate progress toward long-term

goals

Decisional roles included those of entrepreneur, disturbance handler, resource allocator, and negotiator

activities.

Disseminator is a conduit to transmit information to organizational members

Disturbance handlers take corrective action in response to unforeseen problems

Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the

degree to which they are achieved

Efficiency measure of how well resources are used to achieve a goal

Entrepreneur: managers initiate and oversee new projects that will improve their organization's

performance

Figurehead: duties that are ceremonial and symbolic in nature

Informational roles included monitoring, disseminating, and spokesperson activities

Interpersonal roles included figurehead, leadership, and liaison activities

Leadership: hires, train, motivate, and discipline employees

Leading: Leading is stimulating people to be high performers It is directing, motivating, and com-

municating with employees, individually and in groups.

Liaison: contact outsiders who provide the manager with information. These may be individuals or groups

inside or outside the organization.

Line manager: Authorized to direct the work of subordinates--they're always someone's boss. In

addition, line managers are in charge of accomplishing the organization's basic goals.

Management: Management is the process of working with different resources to accomplish organizational

goals.

Manager: The member of the organization who participates in the management process by planning,

organizing, leading, or controlling the organization's resources

Monitor: collect information from organizations and institutions outside their own

Negotiator role: discuss issues and bargain with other units to gain advantages for their own unit

Organizing is assembling and coordinating the human, financial, physical, informational, and other

resources needed to achieve goals.

Planning: Planning is specifying the goals to be achieved and deciding in advances the appropriate actions

taken to achieve those goals.

Resource allocators: responsible for allocating human, physical, and monetary resources

Spokesperson: represent the organization to outsiders

Staff manager: Authorized to assist and advise line managers in accomplishing these basic goals.

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