MANAGEMENT
Doc. V.Peleckienė
VGTU, 2011
INTRODUCTION TO MANAGEMENT
1 lecture
V. Peleckienė, VGTU
2011
THE IMPORTANCE OF MANAGEMENT
Managers influence all phases of modern
organizations:
1. Plant managers run manufactoring
operations that produce the closes we
wear, the food we eat , and automobiles
we drive.
2. Sales managers maintain a sales force
that markets goods.
3. Personnel managers provide organizac
THE MANAGEMENT TASK
• Peter Drucker emphasized: effective
management is probably the main
resource of developed countries and the
most needed resource of developing ones.
• All societies desperately need good
managers.
• Management is vital to many individuals
who earn their livings as managers.
The 10 Highest Compensated Top
Managers for 2003 in USA
Compensation Company Total
ranking name compensation
(in thousands)
1 Tenet $116,683
Healthcare
2 NVR 94,303
3 Dell computer 82,306
4 Qualcomm 63,551
5 USA Interactive 53,068
The 10 Highest Compensated Top
Managers for 2003 in USA
6 Concord EFS 43,362
7 First Data 39,223
8 Starbucks 38,773
9 Lehman Bros 29,752
Holdings
10 American Int’l 29,354
Group
1. The Role of Management
• Essentially, the role of managers is to guide
organizations toward goal accomplishment.
• All organizations exist for certain purposes or
goals, and managers are responsible for
combining and using organizational resources to
ensure that their organizations achieve their
purposes.
• Management moves an organization toward its
purposes or goals by assigning activities that
organization members perform.
2.The Role of Management
• If the activities are designed effectively, the
production of each individual worker will
contribute to the attainment of organizational
goals.
• Management strives to encourage individual
activity that will lead to reaching organizational
goals and to discourage individual activity that
will hinder the accomplishment of those goals.
• Managers must keep organizational goals in
mind at all times.
1.DEFINING MANAGEMENT
• The term management can be, and often it
is, used in different ways.
• For instance, it can refer simply to the
process that managers follow in order to
accomplish organizational goals.
• It can also refer to a body of knowledge; in
this context, management is a cumulative
body of information that furnishes insights
on how to manage.
2. C
• The term management can also refer to
the individuals who guide and direct
organizations or to a career devoted to the
task of guiding and directing organizations.
• Understanding of the various uses and
related definitions of the term will help you
avoid miscomunication during
management-related discussions.
3. DEFINING MANAGEMENT
• Management is the process of reaching
organizational goals by working with and
through people and other organizational
resources.
• A comparison of this definition with others
shows that there is broad agreement that
management has the following three main
characteristics:
1. It is a process or series of continuing and
related activities.
DEFINING MANAGEMENT
1. It is a process or series of continuing and
related activities.
2. It involves or concentrates on reaching
organizational goals.
3. It reaches these goals by working with
and through people and other
organizational resources.
A discussion of each of these characteristics
follows.
Management functions
• The four basic management functions –
activities that make up the management
process – are described bellow.
Planning
• Planning involves choosing tasks that must be
performed to attain organizational goals,
outlining how the tasks must be performed, and
indicating when they should be performed.
• Planning activity focuses on attaining goals.
Through their plans, managers outline exactly
what organizations must do to be successful.
• Planning is concerned with organizational
success in the near future (short term) as well
as in the more distant future (long term).
Organizing
• Organizing can be thought of as assigning
the tasks developed under the planning
function to various individuals or groups
within the organization.
• Organizing, then, creates a mechanizm to
put plans into action. People within the
organization are given work the
assignments that contribute to the
company’s goals.
2. Organizing
• Tasks are organized so that the output of
individuals contributes to the success of
departments, which , in turn, contributes to
the success of divisions, which ultimately
contributes to the success of the
organization.
Influencing
• Influencing is another of the basic
functions within the management process.
• This function –also commonly referred to
as motivating, leading, directing, or
actuating – is concerned primarily with
people within organizations.
• Influencing can be defined as guiding the
activities of organization members in
appropriate directions.
2. Influencing
• An appropriate direction is any direction that
helps the organization move toward goal
attainment.
• The ultimate purpose of influencing is to
increase productivity.
• Human-oriented work situations usually
generate higher levels of production over long
term than do task-oriented work situations,
because people find the latter type distasteful.
Controlling
Controlling is the management function for which
managers:
1. Gather information that measures recent
performance within the organization.
2. Compare present performance to pre
established performance standards.
3. From this comparison, determine if the
organization should be modified to meet pre-
established standards.
Controling is ongoing process. Managers
continually gather information, make their
comparison, and then try to find new ways of
improving production through organizational
modification.
Management process and goal
attainment
• Four functions of management
individually, planning, organizing,
influencing, and controlling are integrally
related and therefore cannot be separated
in practice.
• Figure illustrates this interrelationship and
also indicates that managers use these
activities solely for reaching organizational
goals.
Organizational
goals
Planning
Influencing Controlling
Organizing
Management and Organizational
Resources
• Management must always be aware of the
status and use of organizational resources.
• These resources, composed of all assets
available for activation during the production
process, composed of all assets available for
activation during the production process, are of
four basic types:
• 1)Human; 2) Monetray;3) Raw materials;4)
Capital.
The Universality of Management
• Management principles are universal: That is,
they apply to all types of organizations
(business, hospitals, athletic teams, churches
and so on) and organizational levels.
• Naturally, managers’ jobs vary somewhat from
one type of organization to another because
each organizational type requires the use of
specialized knowledge, exists in a unique
working and political environment , and uses
different technology.
• However, there are job similarities across
organizations because the basic management
activities – are common to all organizations.
The Theory of Characteristics
• Henry Fayol, one of the earliest management writers,
stated that all managers should possess certain
characteristics, such as positive physical and mental
qualities and special knowledge related to the specific
operation.
• B.C.Forbes has emphasized the importance of certain
more personal qualities, inferring that enthusiasm,
earnestness of purpose, confidence, and faith in their
own worthwhileness are primary characteristics of
successful managers.
• They can describe desirable characteristics of successful
managers only because of the universality concept: the
basic ingredients of successful management are
applicable to all organizations.
MANAGEMENT SKILL
• Management skill is the ability to carry out
the process of reaching organizational
goals by working with and through people
and other organizational resources.
• Learning about management skill and
focusing on developing it are of critical
importance since possessing such skill is
generally considered to be the prerequisite
for management success.
MANAGEMENT SKILL: A Classic
View
• R. L.Katz indicates that three types of
skills are important for successful
management performance:
• technical,
• human, and
• conceptual skills.
TECHNICAL SKILLS
• Technical skills are skills involving the
ability to apply specialized knowledge and
engineering, computer programming, and
accounting.
• Technical skills are mostly related to
working with “things” – processes or
physical objects.
HUMAN SKILLS
• Human skills are skills that build
cooperation within the team being led.
• They involve working with attitudes and
communication, individual and group
interests – in short, working with people.
CONCEPTUAL SKILLS
• Conceptual skills involve the ability to see
the organization as awhole. A manager
with conceptual skills is able to undestand
how various functions of the organization
complement one another, how the
organization relates to its environment,
and how changes is one part of the
organization affect the rest of the
organization
MANAGEMENT SKILLS: A
CONTEMPORARY VIEW
• More current thought regarding management
sklls is essentially an exemption of the classic
view list of skills that managers need in order
to be successful.
• The expansion is achieved logically through
two steps:
1. Defining the major activities that managers
typically perform;
2. Listing the skills needed to carry out these
activities successfully.
2. MANAGEMENT SKILLS: A
CONTEMPORARY VIEW
• The major activities that modern managers
typically perform are of three basic types:
1. Task-related activities are management
efforts aimed at carring out critical
management related duties in organizations.
Such activities include short term planning,
clarifying objectives of jobs in organizations,
and monitoring operations and performance.
3. MANAGEMENT SKILLS: A
CONTEMPORARY VIEW
2. People – related activities are
management efforts aimed at managing
people in organizations. Such activities
incluse providing support and
encouragement to others, providing
recognition for achievements and
contributions, developing skill and
confidence of organization members,
consulting when making decisions, and
empowering others to solve problems.
4. MANAGEMENT SKILLS: A
CONTEMPORARY VIEW
3. Change-related activities are
management efforts aimed at modifying
organizational components.
Such activities include monitoring,
organization’s external environment,
proposing new strategies and vision,
encouraging innovative thinking, and
taking risks to promote needed change.