Chapter 1 Orgman

• Management


  The art of getting things done through the efforts of other people
• Management


  The process of planning, organizing, staffing, directing and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals
• Inputs or the resources managers deal with

  • Man: human resources, both inside and connected with an organization
  • Materials: goods (hard & software, processed or semi-finished) and services required to create the saleable end product
  • Machines: technology and expertise deployed towards the transformation process
  • Methods: systems, procedures and processes seamlessly put together for the transformation
  • Money: required for generating all theses Ms – managers need to acquire, deploy, generate and distribute money as a primary need for business!
• Effectiveness


  Achievement of objectives (Right Things)
• Efficiency


  Achieving those objectives with least amount/ sacrifice of resources (Things Right)
• Management process


  • Planning
  • Organizing
  • Staffing
  • Directing
  • Controlling
• Systems approach to Management

  • Transforms inputs (Man, Machine, Material, Method, Measurement) into outputs (Product/Services, Profits, Customer & Societal satisfaction, Other Long-term Goals)
  • Stakeholder Feedback (reenergizing the system)
  • External Environment (Opportunities, Constraints)
• Management is a process because all managers, regardless of their particular aptitudes and skills, engage in certain interrelated functions in order to achieve their desired goals
• Why Study Management


  Your career will surely involve working in organisations, regardless of your chosen career path. As an economist, or marketer – or indeed in any job – your effectiveness at work depends on your understanding of the organisation you work in, and how to get things done through it.
• Why Study Management


  You need to understand how people behave in organisations, the sources of power and influence, and the nature of leadership. Learn about organisations, and the people within them.
• Why Study Management


  Management can take you places. New Zealand is one of the smallest – and is the most isolated – country on earth. We need to work extra hard at connecting to the global economy. Your career could take you to one of the great centres of global economic activity: New York, London, Tokyo.
• Why Study Management


  Organisations are fascinating! Learn to understand organisations better, and make them work for you.
• The prediction: there will be more managers tomorrow than today, and this will matter more because society will continue to become society of organization- organizations which are more perfect, difficult, full of frustrations, tensions, frictions, clumsy and unwieldy
• Scope of Management


  • Economic resource (as viewed by the economist)- management is one of the factor of production together with land, labor, capital. It determines in large measures it productivity and profitability.
  • A system of authority (as viewed by the specialist in administration and supervision)-hat managers have the right to command obedience.
  • It is a class and status (as viewed by the sociologist) – that managers become elite of brain and education. Entrance is based more and more on education/ knowledge instead of family and political connections.
• Kinds of managers


  • Steve Jobs At Apple
  • Bill Ford Jr at Ford Motors
  • Jack Welch at GE
  • Bill Gates at Microsoft
  • Obama, US
• Types of Managers


  • General managers
  • Functional managers
  • Frontline managers
• Levels of Management


  • Top Level Management
  • Middle Level Management
  • Lower Level or Operational Management
• Managerial Roles (Mintzberg)


  • Figurehead
  • Leader
  • Liaison
  • Monitor
  • Disseminator
  • Spokesperson
  • Entrepreneur
  • Trouble shooter
  • Resource allocator
  • Negotiator
• Managerial Skills (Katz & others)

  • Technical Skills
  • Human Skills
  • Conceptual Skills
• The test of management is performance, measured in terms of how you are able to produce goods and services given your available resources for profit, should you go into business and more benefits and satisfactions for your clients, should you be in non-business organizations
• Dimensions of Management or Task of Management

  • To think through and define the specific purpose and mission of the institution whether business, hospital or university, private or public organization; (your concern of achieving the objectives of the organization)
  • To make work productive and the worker achieving (your concern for your employees)
  • To manage social impacts and social responsibility (your concern for community)
• Planning


  The most basic of all managerial functions. Deciding in advance what to do, how to do it, when to do it and who is to do it. Provides the bridge to take us from where we are to where we want to go.
• Definitions of planning


  • A conscious process of selecting and developing the best course of action to accomplish an objective
  • The process by which manager looks at the future and discovers alternative courses of actions open to him
  • Setting of objective, forecasting future conditions and determining the future courses of action and policies to attain them
  • Deciding what objective to pursue given the time horizon, and what to do in order to achieve those objectives
• Plan


  Predetermined course of action. Includes searching for possibilities of future problems. Techniques of handling uncertainty are extremely valuable. Reflective thinking is required; imaginations and foresight are helpful. Based on facts not on emotions and wishes. The other functions of management depends on it. Without this, events are left to chance.
• Importance of planning


  • Someone must do the planning because the world does not stay constant and managers need to be prepared for all sorts of eventualities. Increasing complexity of the government environment has led to greater uncertainty about the future. Hence, there is a need to plan with greater care.
• Plans as foundation of Management

  1. Organizing - What kind of resources & org'l structure needed?

  2. Staffing - What kind of people to have?

  3. Directing - How to lead them to reach planned goals?

  4. Controlling - How to control in case of deviation from plan?
• Planning is a major part of control because plans are used as standards against which performance is measured.
• Why do we make plans?

  • To develop a clear concept of the particular organizations, to create a desired future
  • To give the organization direction and focus its activities
  • To anticipate and respond appropriately to the rapidly changing environments in which the organization operates
  • To examine honestly the strengths and weaknesses of the organization
  • To develop a consensus among the guiding members of the organization
• Decision-making process


  1. Define the problem

  2. Identify Alternative Courses of Action (ACA)

  3. Evaluate Alternative Courses of Action

  4. State the goal, specify relevant variable and constraints

  5. Select the best alternative courses of action

  6. Implement solutions and Monitor results
• How to select amongst the alternatives?

  • Experience - good teacher and useful when routine/repeat situations arise under similar circumstances. Without due analysis of the conditions, mistakes tend to repeat or a poor fit results.
  • Research & analysis - the approach is in at first understanding the problem ('half the solution'!), then finding relations between various factors which hinder or foster goal attainment. This is a structured, analytical approach quantitative or otherwise.
  • Experimentation - arguably, the best technique to use, particularly when either experience or rationale is lacking/limited. However is expensive and 'success/failures' are magnified, results are subject to interpretational errors.
• Programmed Decisions


  Routine, almost automatic process.
• Non-programmed decisions


  Unusual situations that have not been often addressed.
• Ideation questions


  • What business should I be in?
  • Should I start a new organization or acquire an exiting one?
  • Go alone, in partnership or as a corporation, cooperative?
  • What is the approachable business scale?
  • How will I raise the necessary financing?
  • Where will the business be located?
  • What shall I call the business organization?
  • What laws should I study?
  • What about my creditors? From whom will I borrow?
  • What will be my marketing strategy?
  • What skills should I have? Of course application of skills is important.
• Types of Plans


  • Objectives / Goals
  • Policies
  • Procedures
  • Rules
  • Budgets
  • Programs
  • Strategies
• Objectives / Goals


  Basic type of plan- provides the target for all managerial efforts. The end towards which activity of an organization is aimed, e.g. For a Business enterprise – profit, surplus creation; For a Management Institute: The number of employable/useful trainees.
• Hierarchy of Objectives & Org. Levels

  • Mission - Overall Objectives & Key result areas
  • Divisional objectives
  • Departmental objectives
  • Individual objectives
• Management by Objectives (MBO)

  Integration of the employees personal objectives to that of the organization. This is where each manager is provided with the information required for planning and results, means needed to achieve those results and a reporting system for measuring and appraising the accomplishments.
• Management by Exception (MBE)

  When the management is more concern with the problem areas and the cause or non-attainment of objectives. Reports are often limited to problem which cannot be resolved at lower levels, shortfalls in performance, inadequacies of resources and variables of changing conditions not seriously anticipated.
• Suggestions on Objective Formulation

  • Objectives must be practical. Are the group/ individual really capable of achieving?
  • Objective must have precise meaning for the manager. Be specific! Clear & Verifiable
  • Clarity scores over precision – 'approximately right over accurately wrong'!
  • Quantified goals are preferred. Expressed in Quantitative terms - Figures, Percentage, Time frame (by which date)
  • Objectives should communicate
  • Objectives should be actionable
• SMARTER objectives


  • Simple, specific
  • Measurable
  • Attainable
  • Realistic
  • Time- bounded
  • Exciting
  • Rewarding