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INTRODUCTION TO
CONCEPTS
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At the conclusion of this lesson, the YOU should be able to:
• Acqui e and a!!l" #ana$e#ent conce!t in the %o & en'i on#ent(
)ea nin$ Outco#es
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Work *in #ana$e#ent+ is an acti'it" that! oduces 'alue fo othe !eo!le(
-AT IS OR./
The need for work to be done well enough that people, organizations, and societyas a whole may prosper is what makes the study of “managers” and “management”
so meaningful.
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-AT IS 0ANA1E0ENT/
Management is the ! ocess of !lannin$,leadin$, and cont ollin$ the use of esou ces
to acco#!lish !e fo #ance $oals(
Henry Mintzberg (management theorist ! "t is the manager who determines whether our socialinstitutions ser#e us well or whether they s$uander our talents and resources.
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• 0ana$e#ent 5 &no%in$ %hat "ou %ant to do 3 doit in the best and chea!est %a" *Ta"lo +
• 0ana$e#ent 3 ! ocess consistin$ of !lannin$,o $ani2in$, actuatin$ and cont ollin$ b" usin$
!eo!le and esou ces *Te "+
DE6INITION
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• 7ette cont ol of financial, !h"sical, and hu#an esou ces
• I#! o'ed custo#e elations
• Sho te de'elo!#ent ti#es
• )o%e costs
• -i$he qualit" and inc eased eliabilit"
• -i$he ! ofit #a $ins
• I#! o'ed ! oducti'it"
• 7ette inte nal coo dination
• -i$he %o &e #o ale *less st ess+
Ad'anta$es of Usin$ 6o #al P o8ect 0ana$e#ent
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• Plannin$, o $ani2in$, leadin$ and cont ollin$• Plannin$, o $ani2in$, co##andin$, coo dinatin$ and cont ollin$
• Plannin$, o $ani2in$, staffin$, di ectin$, coo dinatin$, e!o tin$ anbud$etin$
• Decision #a&in$, o $ani2in$, staffin$, !lannin$, cont ollin$,co##unicatin$ and di ectin$
• Plannin$, o $ani2in$, staffin$, di ectin$ and cont ollin$
0ANA1E0ENT 6UNCTIONS
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-AT IS 0ANA1E0ENT/
“The art of getting things done through people”
90( P( 6ollett, quoted in Daft ;;
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• A manager is a !e son in an o $ani2ation %ho is es!onsible fo %o & !e fo #ance of one o #o e othe !e sons(
• So#eone %hose ! i#a " es!onsibilit" is to ca " out the#ana$e#ent ! ocess
• So#eone %ho !lans and #a&es decisions, o $ani2es, leads, and
cont ols hu#an, financial, !h"sical, and info #ationesou ces91 iffin, >??
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-AT IS 0ANA1ER4S @O7/
• “The Manager’s job can be broadlydefned as deciding what shouldbe done and getting other peopleto do it.”
3 [Rosemary Stewart quoted in Mullins 1999]
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-AT DO 0ANA1ERS DO/• Effecti'e #ana$e s utili2e o $ani2ational esou ces in %a"s that esult in the
follo%in$:
3 -i$h !e fo #ance outco#es• Pe fo #ance effecti'eness• Pe fo #ance efficienc"
3 -i$h le'els of satisfaction a#on$ !eo!le doin$ the %o &• ualit" of %o & life
Pe fo #ance effecti'eness 3 out!ut #easu e of tas& o $oal acco#!lish#ent
Pe fo #ance efficienc" 3 a #easu e of the esou ce cost associated %ith $oal acco#!lish#ent
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hat Do e 0ean 7"B• Effecti'eness/
3 The de$ ee to %hich $oals a e achie'ed
3 0a&in$ the i$ht decisions and successfull" i#!le#entin$ the#
3 Doin$ the i$ht thin$s in the i$ht %a" at thei$ht ti#es
• Efficienc"/
3 Usin$ #ini#al esou ces to ! oduce the desi ed 'olu#e of out!ut
3 Usin$ esou ces %isel" and in a cost5effecti'e %a"
3 O!e atin$ in such a %a" that esou ces a e not %asted
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Pe fo #ance Effecti'eness and Pe fo #ance EfficiencEfective but not
e cient:Some resourceswasted
Neither efectivenor e cient:
Goa s notachieved!resources wastedin the "rocess
E cient but notefective: Nowasted resources#but $oa s notachieved
Efective and
e cient : Goa sachieved andresources weuti i%ed! area o&hi$h "er&ormance
'i$h
Good(oor
(oor
Goal
attainment
Resource
Utili ation
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• Adequate and fai !a" fo a 8ob %ell done• Safe and health" %o &in$ conditions
• O!!o tunit" to lea n and use ne% s&ills
• Roo# to $ o% and ! o$ ess in a ca ee
• P otection of indi'idual i$hts
• P ide in the %o & itself and the o $ani2ation
A hi$h qualit" of %o & life offe s such thin$s as:
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.e" Conce!ts of 0ana$e#ent
The four functions of management • Plannin$• O $ani2in$• )eadin$• Cont ollin$So#eti#es a fifth is added:• Staffin$
Attain#ent of o $ani2ational $oals in an effecti'e efficient #anne
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6ou 6unctions Defined• Plannin$
3 Settin$ an o $ani2ation4s $oals and selectin$ a cou se of actionf o# a set of alte nati'es to achie'e the# 91 iffin >???? 3 Dete #inin$ the co#!osition of %o & $ ou!s and the %a" in %hich
%o & and acti'ities a e to be coo dinated
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6ou 6unctions Defined
• )eadin$ 3 The set of ! ocesses used to $et o $ani2ational #e#be s to %o &
to$ethe to ad'ance the inte ests of the o $ani2ation 91 iffin >??< 3 0oti'atin$ and co##unicatin$ %ith the o $ani2ation4s hu#an
esou ces to ensu e $oals a e attained
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6ou 6unctions Defined
• Cont ollin$ 3 0onito in$ o $ani2ational ! o$ ess to%a ds $oals 91 iffin >??
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0ana$e#ent )e'els *t"!ical+
+1!"UR#$% &dapted 'rom Thomas (. )onoma and *oseph #. +awler, “#hutes and +adders% Growing the General Manager,” !loan Management Re-iew !pring /0102, 34564.
7#8"
#T"
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DE6INITION 6OR 0ANA1E0ENT )E E)• 6i st line 0ana$e s
di ectl" es!onsible fo da"5to5da" o!e ationssu!e 'ise and coo dinate the acti'ities of o!e atin$ e#!lo"ees
• 0iddle 0ana$e s
%o & in the #iddle le'els of the o $ani2ation
es!onsible fo sections o de!a t#ents
su!e 'ise and coo dinate the acti'ities of
fi st5line #ana$e s
• To! *o Senio + 0ana$e s
usuall" fo # a tea#
#ana$e the o $ani2ation4s o'e all $oals, st ate$", and o!e atin$ !olicies
es!onsible fo the enti e ente ! ise
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0ANA1E0ENT S.I))• 0ana$e#ent s&ills equi ed b" #ana$e#ent le'els
-o" .ana$ers
.idd e .ana$ers
/irst0 ine .ana$ers
Non0mana$ers2(ersonne 3
-o" .ana$ers
.idd e .ana$ers
/irst0 ine .ana$ers
Non0mana$ers2(ersonne 3
#onceptual s9ill
:eoples9ill
Technicals9ill
bi ity tothin5 # to
inte$rate andto $ive
direction sothat ob6ectivesare achieved
bi ity tocommunicate
with understandand motivate
both individua sand $rou"s
S5i necessaryto accom" ish
the s"eci7c5ind o& wor5 in
anor$ani%ation
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0ana$e s b" A ea
• 0a &etin$ 0ana$e s 3 o & in a eas elated to $ettin$ consu#e s and clients to bu" the o $ani2at
! oducts o se 'ices
• 6inancial 0ana$e s 3 Deal ! i#a il" %ith an o $ani2ation4s financial esou ces
• O!e ations 0ana$e s
3 Conce ned %ith c eatin$ and #ana$in$ the s"ste#s that c eate o $ani2ation! oducts and se 'ices
3 0a" be IT #ana$e s in IT businesses *but e'enthen a e ! i#a il" focused on ! oduction+ 91 iffin >??
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0ana$e b" A ea
• -u#an Resou ce 0ana$e s 3 -u#an esou ce !lannin$, ec uitin$ and selection, t ainin$ and
de'elo!#ent, desi$nin$ co#!ensation and benefit s"ste#s, fo #ulatin$!e fo #ance a!! aisal s"ste#s
• Ad#inist ati'e 0ana$e s 3 1ene alists fa#ilia %ith all functional a eas of #ana$e#ent and %ho a e
not associated %ith an" !a ticula #ana$e#ent s!ecialt"
• Othe .inds of 0ana$e s 3 S!eciali2ed #ana$e ial !ositions di ectl" elated to the needs of the
o $ani2ation 3 0a" include IT #ana$e#ent
91 iffin >??
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Cha acte istics of 0ana$e#ent
• 0ana$e ial acti'ities in'ol'e 3 'a iet" 3 f a$#entation 3 b e'it" 3 la $e 'olu#e of %o & !e fo #ed quic&l"
• To illust ate: 3 6i st line #ana$e s in an indust ial fi # #a" a'e a$e o'e F?? incidents a
da" 9-and" ;;F= 3 In a stud" of ?? #ana$e s o'e fou %ee&s, each of the# had on
a'e a$e onl" nine !e iods of half an hou %ithout inte u!tion 9Rose#a "Ste%a t=
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6unda#ental 0ana$e#ent S&ills
• Technical 3 S&ills necessa " to acco#!lish o unde stand the s!ecific &ind of %o &
bein$ done in an o $ani2ation
• Inte !e sonal 3 Abilit" to co##unicate %ith, unde stand, and #oti'ate both indi'iduals
and $ ou!s
• Conce!tual 3 Abilit" to thin& in the abst act and to see the o $ani2ation as a co#!lete
unit and to inte$ ate and $i'e di ection to its di'e se acti'ities so thatob8ecti'es a e achie'e
91 iffin >??
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6unda#ental 0ana$e#ent S&ills
• Dia$nostic 3 Abilit" to 'isuali2e the #ost a!! o! iate es!onse to a situation
• Co##unication 3 Abilities both to con'e" ideas and info #ation effecti'el" to othe s and
to ecei'e ideas and info #ation effecti'el" f o# othe s
• Decision50a&in$ 3 Abilit" to eco$ni2e and define ! oble#s and o!!o tunities co ectl" an
then to select an a!! o! iate cou se of action to sol'e the ! oble#s andca!itali2e on o!!o tunities
91 i
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6unda#ental 0ana$e#ent S&ills• Ti#e50ana$e#ent
3 Abilit" to ! io iti2e %o &, to %o & efficientl", and to dele$ate a!! o! 91
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0ana$e#ent @o&es• A sales e!, an ad#inist ation cle & and the #ana$e a e %al&in$ to lunch %hen the
find an antique oil la#!( The" ub it and a 1enie co#es out in a !uff of s#o&e( The1enie sa"s, GI usuall" onl" $ ant th ee %ishes,so IHll $i'e each of "ou one %ish each(GG0e fi st 0e fi st G sa"s the ad#in cle &( GI %ant to be in the 7aha#as, d i'in$ as!eedboat, %ithout a ca e in the %o ld(GPoof SheHs $one(In astonish#ent, G0e ne t 0e ne t G sa"s the sales e!( GI %ant to be in -a%aii, elon the beach %ith #" !e sonal #asseuse, an endless su!!l" of Pina Coladas and the
lo'e of #" life(GPoof -eHs $one( GO., "ouH e u!,G the 1enie sa"s to the #ana$e (The #ana$e sa"s, GI %ant those t%o bac& in the office afte lunch(G
•Moral of the story:
Al%a"s let "ou boss ha'e the fi st sa"(
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