MANAGEMENT SKILLSkill is an ability or proficiency in a specific area.Conceptual skills are the ability to formulate ideas.Human skills are the ability to interact effectively with people and concerns interpersonal relations.Technical skills are the ability to use process or technique knowledge. They deal with things.

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MANAGEMENT SKILLIn order to perform the functions of management and to assume multiple roles, managers must be skilled. Robert Katz identified three managerial skills that are essential to successful management: technical, human, and conceptual.

Technical skill involves process or technique knowledge and proficiency. Managers use the processes, techniques and tools of a specific area. Human skill involves the ability to interact effectively with people. Managers interact and cooperate with employees.

Conceptual skill involves the formulation of ideas. Managers understand abstract relationships, develop ideas, and solve problems creatively.

Thus, technical skill deals with things, human skill concerns people, and conceptual skill has to do with ideas.

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MANAGEMENT SKILLA manager's level in the organization determines the relative importance of possessing technical, human, and conceptual skills. Top level managers need conceptual skills in order to view the organization as a whole. Conceptual skills are used in planning and dealing with ideas and abstractions. Supervisors need technical skills to manage their area of specialty. All levels of management need human skills in order to interact and communicate with other people successfully.

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MANAGEMENT SKILL

MANAGERIAL LEVELS

• Management hierarchy is the arrangement in an organization of managers by level or rank.

• Middle management includes managers below the rank of president but above the supervisory level.

• Supervisors are managers whose major activities focus on supervising non-management employees and the needs of those employees and the objectives of the organization.

• Top management are managers accountable for the overall success of the organization.

MANAGERIAL LEVELS

MANAGERIAL LEVELS

Supervisors are managers whose major functions emphasize directing and controlling the work of employees in order to achieve the team goals. They are the only level of management managing non-managers. Thus, most of the supervisor's time is allocated to the functions of directing and controlling. In contrast, top managers spend most of their time on the functions of planning and organizing. The top manager determines the mission and sets the goals for the organization. His or her primary function is long-range planning. Top management is accountable for the overall management of the organization. Middle management implements top management goals. Supervisors direct the actual work of the organization at the operating level.

MANAGERIAL LEVELS

MANAGERIAL LEVELSKeystone in the Organization The keystone view, identified by Professor Keith

Davis, is many people's ideal of a supervisor's job*. The comparison between an archway and an organization is very interesting. Without the keystone (supervisor), the arch (organization) collapses. The keystone is the central topmost stone of an arch. It is an essential part because it takes the pressure of both sides, exerts pressure of its own and uses them to strengthen the overall arch. The keystone supervisor is the main connector joining management and employees making it possible for each to perform effectively. Supervisors are the level of management linking the operations of each department to the rest of the organization. This view underscores the critical importance of developing people at all levels.

MANAGERIAL LEVELS

MANAGERIAL LEVELS

• Employees need their jobs and want to know what is expected of them and how their work relates to the whole process. The supervisor is the point of contact in the satisfaction of these needs for employees. By his or her efforts toward productivity and efficiency, the supervisor helps make the company successful, which preserves and creates jobs. By interpreting policies and giving instructions and information and through normal, everyday contact with employees, the supervisor serves as the point of contact with management. The keystone has determined that he or she will control the job instead of the job controlling him or her. Thus, It is the confidence in self that will help determine the success of the manager.

MANAGERIAL FUNCTIONS• A manager's job consists of planning, organizing, directing, and

controlling the resources of the organization. These resources include people, jobs or positions, technology, facilities and equipment, materials and supplies, information, and money. Managers work in a dynamic environment and must anticipate and adapt to challenges.

• The job of every manager involves what is known as the functions of management: planning, organizing, directing, and controlling. These functions are goal-directed, interrelated and interdependent. Planning involves devising a systematic process for attaining the goals of the organization. It prepares the organization for the future. Organizing involves arranging the necessary resources to carry out the plan. It is the process of creating structure, establishing relationships, and allocating resources to accomplish the goals of the organization. Directing involves the guiding, leading, and overseeing of employees to achieve organizational goals. Controlling involves verifying that actual performance matches the plan. If performance results do not match the plan, corrective action is taken.

MANAGERIAL ROLES To meet the many demands of performing their

functions, managers assume multiple roles. A role is an organized set of behaviors. Henry Mintzberg has identified ten roles common to the work of all managers. The ten roles are divided into three groups: interpersonal, informational, and decisional. The informational roles link all managerial work together. The interpersonal roles ensure that information is provided. The decisional roles make significant use of the information. The performance of managerial roles and the requirements of these roles can be played at different times by the same manager and to different degrees depending on the level and function of management. The ten roles are described individually, but they form an integrated whole.

MANAGERIAL ROLES To meet the many demands of performing their

functions, managers assume multiple roles. A role is an organized set of behaviors. Henry Mintzberg has identified ten roles common to the work of all managers. The ten roles are divided into three groups: interpersonal, informational, and decisional*. The informational roles link all managerial work together. The interpersonal roles ensure that information is provided. The decisional roles make significant use of the information. The performance of managerial roles and the requirements of these roles can be played at different times by the same manager and to different degrees depending on the level and function of management. The ten roles are described individually, but they form an integrated whole.

MANAGERIAL ROLES The three interpersonal roles are primarily

concerned with interpersonal relationships. In the figurehead role, the manager represents the organization in all matters of formality. The top level manager represents the company legally and socially to those outside of the organization. The supervisor represents the work group to higher management and higher management to the work group. In the liaison role, the manger interacts with peers and people outside the organization. The top level manager uses the liaison role to gain favors and information, while the supervisor uses it to maintain the routine flow of work. The leader role defines the relationships between the manger and employees.

MANAGERIAL ROLES The direct relationships with people in the

interpersonal roles place the manager in a unique position to get information. Thus, the three informational roles are primarily concerned with the information aspects of managerial work. In the monitor role, the manager receives and collects information. In the role of disseminator, the manager transmits special information into the organization. The top level manager receives and transmits more information from people outside the organization than the supervisor. In the role of spokesperson, the manager disseminates the organization's information into its environment. Thus, the top level manager is seen as an industry expert, while the supervisor is seen as a unit or departmental expert.

MANAGERIAL ROLES The unique access to information places the

manager at the center of organizational decision making. There are four decisional roles. In the entrepreneur role, the manager initiates change. In the disturbance handler role, the manger deals with threats to the organization. In the resource allocator role, the manager chooses where the organization will expend its efforts. In the negotiator role, the manager negotiates on behalf of the organization. The top level manager makes the decisions about the organization as a whole, while the supervisor makes decisions about his or her particular work unit.

MANAGERIAL ROLES The supervisor performs these managerial

roles but with different emphasis than higher managers. Supervisory management is more focused and short-term in outlook. Thus, the figurehead role becomes less significant and the disturbance handler and negotiator roles increase in importance for the supervisor. Since leadership permeates all activities, the leader role is among the most important of all roles at all levels of management.

MANAGERIAL ROLES The supervisor performs these managerial

roles but with different emphasis than higher managers. Supervisory management is more focused and short-term in outlook. Thus, the figurehead role becomes less significant and the disturbance handler and negotiator roles increase in importance for the supervisor. Since leadership permeates all activities, the leader role is among the most important of all roles at all levels of management.

Forms of organization Business system : A system refers to a scientifically established

arrangement of components for the attainment of specific objectives as per plan.

It can be of four types : 1)   Finance systems 2)   Production system 3)   Marketing system 4)   Personnel system The business organization is to be a business

system what the heart is to a human being.

Forms of organization Hence a business organization is the technique

of efficiently conducting industrial & commercial activities to earn not only profit, but also the goodwill through a income submit to the customers and employees in particular and the society in general.

Business organization is assigned with various issues pertaining to all types of business enterprises. It covers each and every problem starting from the very establishment of a business unit till its ultimate disappearance from this world of modern business.

Forms of organization Forms of business organization

Private Enterprise Cooperative Enterprise Public Enterprise

1. Sole Trade 2. Partnership firm3. Private Company4. Public Company

1. Individual Cooperatives 2. Consumer’s Coop. Store 3. Marketing Cooperatives 4. Service Cooperatives

1. Govt. Department2. Govt. Company3. Statutory Coops

Forms of organization Proprietorship company : A business unit owned and managed by an

individual is called a sole trading organization or individual proprietorship. It is the oldest, simplest & most natural form of business organization.

Main features : 1.  No separate legal assistance except the proprietor who owns

it. 2.  Capital contribution – Made by the proprietor alone. 3. Management & control – Control over all the affairs of the

business 4.   Profit sharing – No sharing 5.   Liability – The liability of the proprietor is unlimited.

6.  Stability – Short life.

Forms of organization Advantage :Ø    Easy formation Ø      Simple to won Ø      Retention of business secrets. Ø      Quick decisions. Ø      Managerial motivationØ      Close business linksØ      Healthy relation with the employees. Ø      Economy in managementØ      Unlimited liabilityØ      Soft employment

Disadvantages : Ø      Limited capital & insufficiency of resources. Ø      Limitation of managerial abilityØ      Threat of unlimited liabilityØ      Uncertainty of duration Restricted growth

Cooperative organization Usually business organization run primarily with

the profit motive, the cooperative undertakings are established for rendering services to their members. A cooperative society is basically an association of person who join together voluntarily for common economic interests. The foundations of cooperative organization are :

a)   Service not profit b)   Cooperation not competition c) Self help – not dependence on profit

d) Moral solidarity not unscrupulous undertaking

Cooperative organization Definitions : 1)According to section – 4 of the Indian

Cooperative Societies Act, 1912, a cooperative society is a society which has its objectives of promotion of economic interests of its members in accordance with cooperative principles.

2)It is defined as an association of person usually of limited means who have voluntarily joined together to achieve a common economic and through the formation of democratically controlled business organization making equitable contribution to the capital required.

Cooperative organization Features :

Voluntary association Open membership Variable nature of members liability Democratic control through equality of voting power Service motive Perfect units Limited reward to the capital inverted Cash trading

Cooperative organization Types of cooperative :

1. Industrial cooperatives – They are the voluntary association of small produces formed with the object of eliminating the capitalists from the system of industrial production, securing some of the benefits of large scale production, increasing their competitive strength against the large produces and so on.

2. Marketing Cooperatives – They are voluntary associations of independent producers or consumers organized for the purpose of making arrangements for a proper sale or their output to outsides & their requirements among themselves respectively.

Cooperative organization Types of cooperative :

1. Industrial cooperatives – They are the voluntary association of small produces formed with the object of eliminating the capitalists from the system of industrial production, securing some of the benefits of large scale production, increasing their competitive strength against the large produces and so on.

2. Marketing Cooperatives – They are voluntary associations of independent producers or consumers organized for the purpose of making arrangements for a proper sale or their output to outsides & their requirements among themselves respectively.

Cooperative organization Types of cooperative :

Consumers cooperative is one type of marketing operation which are formed by ordinary people with the object of supplying the day to day requirements of good at cheaper prices to their members through the elimination of middleman.

3. Credit cooperative – They are voluntary associations of people with moderate means formed with the object of raising necessary capital to extend short term financial accommodation to the members.

4. Service cooperatives – They are organized for rendering various types of services to their members at a nominal charge.

Cooperative organization Planning : It includes forecasting and decision-making and involves

• Identifying trends• Crystallizing objectives• Collecting and synthesizing the available information • Developing alternative courses of action• Comparing alternatives in terms of objectives,

feasibility and consequences• Selecting optimum course of action• Establishing policies, procedures, methods,

standards, schedules, programs, systems & budgets• Assigning works• Implementing controls and preparing exports and find

out possible improvements

Cooperative organization Organizing :

·        Dividing work into component activities·        Design job structure ·        Defining responsibilities·        Delegating adequate authority·     Establish structural relationship to secure co-

ordination

Cooperative organizationStaffing : Anticipating manpower needs Developing job descriptions and man specification Deciding appropriate source of recruitment Arranging selection procedure Deciding manpower Developing activities Determining suitable training programs and techniques Appraising performancesDirecting : Leading Motivating Communicating Supervising

Controlling :• Identifying potential problems• Deciding criteria for measuring results• Projecting desired results• Deciding sequence of importance • Establishing check points, Schedules and time-table• Appraising performances• Selecting mode of control• Finalizing audit measure and evaluating in terms of

planning • Spotting significant deviations• Ascertaining causes• Taking remedial action • Getting Board / Top managements’ approva