_5_ Fundamentals of Management by usmanjee123

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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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