MGT.110 Introduction To Management THE NATURE OF MANAGEMENT: Introduction to the Concept of Management

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MGT.110 Introduction To ManagementTHE
NATURE OF MANAGEMENT Introduction to the Concept
of Management

• University of The Gambia
• School of Business and Public Administration

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CHAPTER 1 Introducing the Concept of
ManagementOrganizations

• Brief Introduction on How Management Evolved
• Who are Managers?
• What is Management?
• What do Managers do?

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How Management Evolved

• Our understanding of modern management phenomena
  cannot be enlightened without searching in the
  past to see how the process evolved.
• The Egyptians and the Sumerians
• The case of the pyramids which has a
  fascination over the minds of modern men and
  women was built over a period of a hundred years
  at Giza Egypt.

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• The precision and durability with which the
  pyramids were built was extraordinary considering
  the fact this was about 4,500 years ago.
• They were the largest stone structures in the
  world, containing enough stones to build a wall
  all the way round a country the size of France.

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• The reasons behind building the pyramids is of
  interest to people in management.
• First, the Pyramid Project was initiated by the
  Pharaohs as a method of creating an integrated
  human community, the size of a state.
• Before, Egyptians had lived in communities no
  larger than a tribe or village, and they were
  located far from each other.

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• Second, the increase in the size of the Egyptian
  population required a larger scale organization,
  in order to make optimum use of the Nile, which
  was the source of water to irrigate the land on
  which the food was grown.
• The 100, 000 men that gathered to work on the
  Pyramid Project had to be housed and fed, and
  their families they left behind had to be taken
  care of by the Pharaohs.

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• As people in management, we learn the following
  from the case of the Pyramid Project
• A Civil Service Infrastructure (Administration
  and Bureaucracy) was born to take care of workers
  and the families they left behind.
• The workers were also promised rewards in the
  afterlife. (Similar to todays pension Scheme)
• ii. A Sense of Nationhood because of the common
  task they were involved in and the commitment
  they made to it as one people. (Patriotism was
  born)

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• Hierarchy organization and coordination of such
  a large workforce produced a hierarchy of
  authority as logical means of integrating
  dispersed effort.
• The Pyramid Structure provided the pattern for
  the nation state, which became successful not
  only in Egypt but was taken as the pattern for
  succeeding nations and other large organizations
  such as armies, local government, and business.
  It was based on commitment, obedience and
  sacrifice.

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• Machiavelli (Niccolo Machiavelli) was a
  Secretary to the Florentine Republic from 1498
  until 1512, when he was dismissed and imprisoned
  for conspiring to overthrow the Medici Family
• Our main interest in Machiavellis ideas lie in
  his analysis of how the Prince (or
  Leader/Manager) meets his obligations

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• For us in management, the following points from
  Machiavelli are of interest
• Cohesive Organization The Prince should maintain
  the cohesiveness of his organization by binding
  to him his friends and those on whom he will
  depend.
• Mass Consent No matter how cohesive the
  structure of the organization, the Prince has to
  maintain the consent of the governed, as this is
  the source of his authority.

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• Leadership Cohesive organization and mass
  consent can only be achieved if the Prince is a
  leader an example-setter for his people.
• Toughness There will be attempts to unseat the
  Prince, so he must have the toughness to resist
  any such attempts and be ruthless with the
  instigators.
• This is how our language borrowed
  Machiavellian meaning cunning, amoral, and
  opportunist

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• The Industrial Revolution Slowly the patterns of
  human evolution began to evolve and the role of
  the leader was clarified, but then came the
  watershed of the Industrial Revolution, which was
  to transform Britain and then the rest of Europe
  and the United States into industrial nations.
• Hitherto the practice of management had been
  confined to Church, State, and Army Prince or
  Officer

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• Now the institutions of commerce and industry
  were born, and traditional leaders of society had
  no place in them.
• So we acquired a new occupation and a new class
  the bourgeoisie.
• As Karl Marx put it the bourgeoisie has
  created more massive and colossal productive
  forces than all preceding generations together.
  The forces of nature was subjected to man there
  was application of both machinery and chemistry
  to Industry and Agriculture.

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• Steam navigations and railways, electric
  telegraphs, clearing of whole continents for
  cultivation, and canalization of rivers. Etc.
• What we understand from the Industrial
  Revolution as people in management are

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1. Flow of Work The job of individual employees
   were broken down and analyzed to estimate their
   contributions (the beginning of time and motion
   study).
2. Wages Wage payment arrangements were developed
   to be consistent with the requirements of each
   job.
3. Records were developed for cost accounting.
   Records enabled the manager to identify areas of
   inefficiency and those of high productivity.

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WHO ARE MANAGERS

• Someone who works with and through other people
  by coordinating their work activities in order to
  accomplish organizational goals
• A manager gets things done through other people
• A managers job is not about personal
  achievement its simply about helping others do
  their work and achieve!!!

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MANAGERIAL LEVELS

• In traditional structured organizations (often
  pictured like a pyramid), managers are often
  described as first-line middle or top.

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• First-Line Managers Managers at the lowest
  level of the organization who manage the work of
  the non-managerial employees who are directly
  involved with the production or creation of the
  organizations products.
• Middle Managers Managers between the first-line
  level and the top level of the organization who
  manage the work of the first-line managers.
• Top Managers Managers at or near the top level
  of the organization who are responsible for
  making organization-wide decisions and
  establishing the goals and plans that affect the
  entire organization.

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WHAT IS MANAGEMENT?
Coordinating work activities so that they are
completed efficiently and effectively with and
through other people

• Efficiency getting the most output from the
  least amount of inputs referred to as Doing
  things right
• Effectiveness completing activities so that
  organizational goals are attained referred to as
  Doing the right things

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• Efficiency (means) Effectiveness (Ends)

Resource Usage
Goal Attainment
Low Waste
High Attainment
Management Strives for Low Resource Waste (high
efficiency) High Goal Attainment (high
effectiveness)

• MANAGEMENT can also be defined as
• The process of getting things done by other
  people through the application of good
  leadership, motivation, commitment, rewards, job
  satisfaction, incentives etc.

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WHAT DO MANAGERS DO?

• Early 20th Century A French Industrialist,
  Henri Fayol, first proposed that all managers
  perform five functions - planning, organizing,
  commanding, coordinating, and controlling.
• Mid 1950s Management textbooks, first used the
  function of planning, organizing, staffing,
  directing, and controlling as a framework.

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WHAT DO MANAGERS DO?Management Functions
according to todays management textbooks, are

• Planning Organizations exist to achieve some
  particular purpose. Someone must clearly define
  that purpose and the means for its achievement.
  Management is that someone.
• Managers performing the planning function define
  goals, establish strategies for achieving those
  goals, and develop plans to integrate and
  coordinate activities.
• Organizing Managers are responsible for
  arranging work to accomplish the organizations
  goals. When managers organize, they determine
  what tasks are to be done, who is to do them, how
  the tasks are to be grouped, who reports to whom,
  and where decisions are to be made.

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• Leading Every organization includes people, and
  a managers job is to work with and through
  people to accomplish organizational goals. When
  managers motivate subordinates, influence
  individuals or teams as they work, select the
  most effective communication channels, or deal in
  any way with employee behavior issues, they are
  leading.
• Controlling - After the goals are set and plans
  formulated (planning) the structural
  arrangements determined (organizing) and the
  people hired, trained, and motivated (leading)
  there has to be some evaluation of whether things
  are going as planned. To ensure this, managers
  must monitor and evaluate performance. Actual
  performance must be compared with previously set
  goals.
• If theres any significant deviation, its
  managements job to get work performance back on
  track. This process of monitoring, comparing, and
  correcting is what we mean by the controlling
  function.

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• Interpersonal Roles
• 1. Figure-head
• 2. Leader
• 3. Liason
• Informational Roles
• 4. Monitor
• 5. Disseminator
• 6. Spokesman
• Decisional Roles
• 7. Entrepreneur
• 8. Disturbance Handler
• 9. Resource Llocator
• 10. Negotiator

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Figurehead

• Purpose
• To Add Dignity And Status To The Organization
• Activities
• Inspiring, Being With People
• Appreciation Letterwishing Subordinates
• Making Public Speaches
• Membership In Institutions Of Repute
• Keep Contacts With People Of Status
• Attending Ceremonial And Religious Function
  Entertaing Visitors

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Manager As Leader

• Purpose
• Integrate Individual Needs And Organizational
  Goals
• Activities
• Create Conducive Culture An Climate
• Provide Guidance And Motivation
• Energy,vision, Direction And Purpose
• Empower People To Perform
• Hiring, Training, Judging, Remunerating,
  Promoting, Dismissing, Correcting Mistakes
  Discipline The Erring Staff Determine Rewards
  And Punishment

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Manager As A Liaison

• Purpose
• To Link His Organization With The External
  Environment
• To Create A Network Of Support And Services
• Activities
• Membership In Association
• Joining The Board Of Other Companies
• Social Contact- Festival And Gifts
• Sharing Of Information And Resources
• Help And Assistance, Donation

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Manager As Monitor

• Purpose
• To Detect Variations And Assess Performance And
  Progress
• To Identify Problems And Opportunities
• To Build His Own Knowledge Base
• Activities
• Reads Routine Reports, Talking To Subordinate,
  Observation And Touring The Organization
• Reads Periodical On Trade, Technology, Market,
  Business In General
• Analyses Information To Comprehend Ideas And
  Trends
• Take Decisions, Initiate Timely Corrective
  Actions,
• Formulate New Programmes, Strategies, Introduce
  New
• Technology, Improve Management Practices And
  System

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Manager As Disseminator

• Purpose
• To Keep The Efforts Of People And Units Well
  Coordinated
• To Delegate/Guide Decision Making Process
• To Keep People Informed Of New Policies,
  Decisions, Changes In External Environment
• Activities
• Forwarding Mails, News Items, Articles
• Conduct Internal Meetings, Send Circulars, Makes
  Presentations, Send People For Visits,
• Arrange Sharing Of Experiences, Send Employees
  For Seminars, Subscription Of Magazines And
  Journal For Employees, Regular Display Of Events

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Manager As Spokesperson

• Purpose
• Influence The External Environment
• Keep Informed Of Organizations Plans,
• Policies, And Results
• Activities
• Lobby With Government Agencies, Association Etc
• Inform Public-suppliers, Peers, Customers, Press
• Demonstrate An Up-to-minute Knowledge Of His
  Business
• Act As An Expert In His Business And Give Advice
  To Other Organizations, Associations

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Manager As Entrepreneur

• Purpose
• To Expand And Diversify Business
• Design And Develop New Business Process And
  Management Systems, Strategies
• Activities
• Empower People To Initiate New Project New Ideas,
  Assess, And Convert Them Into Profitable
  Ventures
• Scanning The Environment To Spot Opportunities
  And Look Into Future
• Initiate Improvement Projects
• Seek Or Work Out Creative Solutions To Problems
  And Issues
• Delegate, Supervise, And Allocate Resources

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Manager As Disturbance Handler

• Purpose
• To Protect The Organization For Unanticipated
  Consequences Monetary Losses, Loss Of Image,
  Actions Of Legal Bodies, Production Losses
• Examples Of ACTIVITIES
• Anticipate Situation Of Uncertainties And Make
  Arrangement To Deal With
• Develop Mechanism To Cope Up With Unexpected
  Crises
• Initiate Negotiation To Resolve Conflicts

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Manager As Negotiator

• Purpose
• Set Up Business Transactions With External
• Entities In The Best Interest Of The Organization
• Examples Of ACTIVITIES
• Acquisition, Mergers, Settlement With Unions,
  Supply-contract, Finalizing Deal With Big
  Customers, Consultants, Services, Agents,
  Principles

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Manager As Resource Allocator

• Purpose
• Acquire Resources (Time, Money, Machines,
  Manpower) For Carrying Out The Feasible/
• Viable Business Activities
• Plan Mobilization Of Resources As Per The
  Targets/Goals/Schedule
• Examples Of ACTIVITIES
• MAKING BUDGETS SCHEDULING TIME SANCTION OF
  FINANCES FOR VARIOUS PURPOSE

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