Chapter 07: Fundamentals of Management

Chapter 07: Fundamentals of Management

Layout of Chapter:

1.             What is Management?

2.             Key Management functions: Planning, Organizing, Staffing, Directing and Controlling.

3.             Levels of Management/ Management Hierarchy/ Chain of Command.

4.             Management Roles.

5.             Core Management Skills.

1.             What is Management?

“Management is the art of getting things done through people.”

–         Mary Parker Follett

Management Scholar & Theorist.

Management:

The application of planning, Organizing, staffing, directing, and controlling functions in the most efficient and effective manner possible to accomplish objectives.

Objective:  Specific results or targets to be reached by a certain time. Objectives are specific.

Goal:  A broadly stated guideline that an organization or an individual is attempting to achieve.

E.g. A university student’s goal may be to earn a degree in business administration. An objective would be to earn a bachelor’s degree in business administration by June 2006 with an overall grade point average of at least 3.5.

2.             Key Management Functions.

Management Theorists have identified five primary functions of managers. These functions are:

1.             Planning:  The management function of establishing objectives and developing plans to accomplish them.

Planning essentially means deciding in advance what is to be done. Of course, plans alone do not bring about desired results; but without a plan and a set of objectives, managerial actions are likely to produce confusion.

2.             Organizing: The management function of grouping people and assignments to carryout job tasks and the mission.

3.             Staffing: The management function of selecting, placing, training, developing, and compensating subordinates. A manager’s staffing activities also include the evaluation and appraisal of performance.

4.             Directing: The management function of initiating action – issuing directives, assignments and instruction. Directing also means building an effective group of subordinates who are motivated to perform. It means getting subordinates to work to accomplish objectives. Directing can be accomplished through leadership.

Leadership:  The process of influencing the activities of an individual or group toward the accomplishing objectives. Leadership may be Autocratic, democratic or laissez-faire.

Types of leadership:

a) Autocratic:

Ø             Close suppression.

Ø             Manager delegates as little authority as possible.

Ø             Manager provides detailed instruction.

b) Democratic:      

Ø             General suppression.

Ø             Manager consults with subordinates about job-related issues.

c) Laissez Faire:   

Ø             Free-rein (complete freedom); Manager exists as a contact person who provides information and guidance.

Ø             Manager avoids power and responsibility by giving assignments and support but staying out of the group’s way (may be appropriate when the manager have little knowledge of that certain field; e.g. business graduate managing a team of engineers).

5.             Controlling: The managerial function of checking to determine whether employees are following plans and progress is being made, and of taking action to reduce discrepancies. The core idea of control is to modify behavior and performance when deviations from plans are discovered. Controlling is concerned with making certain that plans are correctly implemented.

The process of controlling has four steps:

·         Set standards for time, quality, quantity and so on.

·         Measure  performance (results).

·         Compare performance to standards.

·         Make necessary modifications.

3.             Levels of Management.

Three (3) distinct levels of management – Executive, Middle, and First line – are usually portrayed as a Managerial Hierarchy. This hierarchy depicts what is called a Chain of Command, or simply a channel of communication, coordination, and control.

(a)           Executive (What to do): Engaged in charting overall mission, strategy, objectives of the business; e.g. President, CEO, Partner, Vice-President, Director, Chancellor/ Vice-Chancellor.

(b)           Middle Level (How to do): Receive the mission, Strategy, objectives from top executive level and translate them into specific action plans (for the first-line managers). They are a link between the Executive level and the first-line level managers; e.g. Plant Manager, Dean, Project Director, Regional Manager.

(c)           First Line level (Just to do): Directly responsible for coordinating the work of employees/ non-managers. They must work with non-managers or employees and motivate them. They are link between the Middle-level management and non-managers; e.g. First-line supervisor, Product Manager, Chairperson of Department.

Operating employees: The non-managers in an organization who perform specific tasks and usually manufacture a product or provide a service for customers.

4.             Managerial Roles.

Role: A set of expected behaviors. (E.g. Student, Teacher, Father, Bother, etc. The person who has the role of a father, is expected to be kind, understanding, helpful, and a good example to his child etc)

A manager has three (3) major roles to perform:

(I.) Interpersonal.

(II.) Informational.

(III.) Decisional.

5.                   Core Management Skills.

Management skill: The ability to use knowledge, behaviors, and aptitudes to perform a task. 

According to Robert Katz, any manager who wants to become a successful manager in managing his/her organization must possess the following three (3) core management skills:

I.               Technical Skills: Skills involved in making a product or providing a service.

II.             Human Relations Skills: The ability to relate and interact with subordinates, peers, superiors and customers or clients.

III.            Conceptual Skills: The ability to organize and integrate information to better understand the organization as a whole.

Studies of Management Skills: Various research results point to four (4) core management skills that may help anyone to learn, practice, and become proficient in to be a successful manager.

Core Management Skills and Their Characteristics [Table 7.5: Page 244]

1. Decision-Making/ Problem Solving	2. Communication	3. Interpersonal	4. Objective/ Goal-Setting
Identifies problems.	Writes clearly and concisely.	Shows empathy.	Establishes meaningful, challenging, and clear objectives.
Creates feasible alternatives.	Speaks effectively.	Uses power and influence fairly.	Sets priorities.
Selects an optimal alternative.	Listens carefully.	Projects a positive image to others.	Evaluates success of objectives/ goals as standards to establish reward program.
Makes decisions under risk and/ or uncertainty. Evaluates alternatives used to solve problems.	Has computer skills.	Behaves ethically. Resolves conflict.