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The Fundamentals of Management Management Management: It is the process of co-ordination of an organization’s resources to meet its goals. Each organization has some goals and to achieve them is the responsibility of its managers. (Management) All managers have to play certain roles to achieve their tasks efficiently. Managerial Roles There are three categories of Managerial Roles: 1) Interpersonal Role: Meeting and developing relations in and out of the organization. 2) Informational Role: Collection, refinement and distribution of information. 3) Decisional Role: Taking right decision at the right time for the right person in the right direction. Managerial Hierarchy It‟s the (Pyramid) reporting line of management that comprises of three levels and defines reporting line. Top Mangers : Those at the top of a managerial hierarchy, they have the most authority and responsibility. (CEO or Directors) Middle Managers: Those at middle who implement the goals of top management and co-ordinate the work of first-line managers. First-line Managers: These managers supervise the operating employees and carry out the tasks co-coordinated by middle mangers. Managerial Skills In any organization and at all three levels Managers require three basic kinds of skills : 1) Technical Skills 2) Administrative Skills 3) Conceptual Skills 4) Human Relations Skills Most important are human relations skills as managers get work done by working and through working with others. Technical and administrative skills change or vary from industry to industry. Skills Technical Skills: All managers at the first line level should learn and develop these skills so that they should know what are the problems of their teams. Administrative Skills: All Managers should also have complete command over gathering, arranging, analyzing, planning and implementing skills. Skills Conceptual Skills: It is the conceptual skills that helps us in decision making. In decision making we will follow the following pattern: Recognize the need for a decision Analyze and define the problem or opportunity Develop alternatives Select the best alternative Implement the alternative Evaluate results Skills Human Relation Skills: These skills are required to understand other people and these skills are must for effective interaction. The benefits for managers are: They get work done through others They gain the confidence of others Inspire their teams with effective communication The Management Process All managers in all types of organizations perform certain functions and these are called managerial process. The management process comprises of four basic steps: 1) Planning 2) Organizing 3) Leading 4) Controlling The Planning Function It is the first management function and success of the rest of three depends at this step. It is about setting goals and objectives for an organization and to determine best way to achieve it. To understand “Goals & Objectives” we should understand “Mission & Mission Statement” Mission: Overall purpose of an organization. Mission Statement: It‟s the interpretation of the organization‟s mission in words. The Planning Function Goal It is the broad and long term target of the organization. Objective It is a specific short term target of the organization. To be an effective and efficient manager set SMART goals and objectives for your organization. Smart Measurable Attainable Relevant Time Bound The Planning Function Strategic Goals Top Management set these goals focusing on broad organizational issues like Market Standing Innovation Human Resource Physical Resource Finances Productivity Profit The Planning Function Tactical Objective These are the objectives set by middle managers and in light of strategic goals. Operational Objectives These objectives are set by junior managers or first line managers to accomplish tactical and strategic goals. These objectives are monitored on the daily basis. In Short : If you achieve your Operational objectives=Tactical Objective=Strategic Goals Levels of Plan If you do not plan your Goals & Objectives you will never achieve them. Strategic Plan: These are the actions planned by Top management to achieve strategic goals. They are usually long term Laid out by Top or Senior management To be followed and implemented by Middle Managers. These plans are for two to five years. Levels of Plan Tactical Plan: These are actions designed to accomplish tactical objectives and to support strategic plans. These are not for a long period of time Mostly such plans are for a year or two. These plans are developed by Middle managers These plans are followed by Junior managers. Levels of Plan Operational Plans: These are actions designed to accomplish operational objectives and are in line with tactical plan. These are usually for less than a year. These plans are developed by Junior managers * Coordination at all three levels of management is a must for an overall successful planning. Organizing Function It is the second step in managerial process. At this stage managers arrange for the resources to carry out the planning stage. They figure out the human resources Right person for the right job is placed Teams are formed and team work is emphasized They figure out the financial resources They figure out the physical resources. Leading Function It is the third step that influence the human resource, motivate it, get work done and achieve the goals and objectives. The most important task is to mould all member of your team in one unit. To motivate them by providing good reason and an environment to work Leadership is when you persuade others to achieve goals and objectives by building their trust in you and by setting example. Leadership Styles A leadership style is a set of behavior by which a manager uses authority. Autocratic Leader A manager who does not consult his team. Works on his own decisions and takes responsibility of good or bad out come. Democratic Leader He delegates authority He takes opinion of his team Shares reward in success but has to face consequences in failure. The “Laissez Faire” Leader The one who encourages employees to take decisions. Takes the role of a consultant. Leadership Traits Transactional Leadership It is done by motivating employees to perform at expected levels By providing them with a structured role By linking rewards with goal achievement. Transformational Leadership To motivate employees to perform more than expected. Make employees think beyond self interest. Make them work for a better future and put them into challenging positions. * A good manager is the one who leads his team from transactional to transformational Leadership. Controlling / Evaluating Function The fourth and final step in managerial process It is the step when we measure our progress against the goals and objectives. If there is a deviation we again start from the first step that is planning. It is an important step towards long term success. An important step to measure quality and customer satisfaction. The Control Cycle Standard Managers set standards for themselves and their teams and measure performance against it. They “Raise the Bar” everyday. Measure Performance Compare performance Change or not to change Total Quality Management It is a comprehensive approach by management to bring quality and to keep improving all the time. The three requirements of TQM are: Move towards “Zero Defect” Customer Satisfaction To understand that there is always room for improvement. Management by Objective A controlled method in which managers are motivated to achieve goals by also achieving their personal objectives. Personal Achievement = Organizational Achievement Crisis Management. A system for minimizing the harm or risk that might result from some unusual or unforeseen situation Contingency Plan. These are actions that organizations plan to take in crisis situations. These are also called Plan „B‟.
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