8/9/2019 BM 02 Management and Managers

1/19

anagement

and anagers

Prof.dr.dr.dr.h.c. Con stan tin Bratianu

Facul ty of Bu siness Adm inis t rat ionAcademy of Econom ic Studies

8/9/2019 BM 02 Management and Managers

2/19

Learning objectives To understand managementas a process

To understand the difference between efficiency and

effectiveness

To present the tasks/functions of management

To understand managementas an art and as a science

To summarize the roles played by managers

To present the most important skills of managers

8/9/2019 BM 02 Management and Managers

3/19

Management (i)

What is management?

Management is something specific only to companies?

Management can be performed also by public institutions orpublic administration authorities?

Management means basically to put other people to work?

Management is a science, an art or just a process ?

What are the tasks/ functions of management?

Are there any other questions?

8/9/2019 BM 02 Management and Managers

4/19

Management (ii)

Management is a general human activity. It can be performedat the individual level and organizational level.

Management is not specific only to companies. It can beperformed in any type of organizations, profit-making andnonprofit-making.

Management is a process, associated to any work and playprocess.

Management is a science and an art in the same time. Theproportion science/art depends on the specificity of theprocess and on the manager knowledge and experience.

8/9/2019 BM 02 Management and Managers

5/19

Management as a process

Process of management

Process of production

Internal environment

People

Finance

Materials

Energy

Knowledge

Goods

Services

Reputation

Knowledge

Waste

External environmentInterface

8/9/2019 BM 02 Management and Managers

6/19

EfficiencyEfficiency refers to the relationship between inputsand outputs of a given process.

Value of outputs

Efficiency = ------------------------------

Value of inputs

To get a higher value of outputs for the same givenvalue of inputs

To use a lower value of inputs for the same value ofoutputs

8/9/2019 BM 02 Management and Managers

7/19

Effectiveness Effectiveness refers to the relation between the

final result of a given activity or process and theinitial defined objective

Value of the final result

Effectiveness = ----------------------------------

Value of the initial objective

8/9/2019 BM 02 Management and Managers

8/19

Definition of Management Management = The process of getting things done,

effectively and efficiently, through and with otherpeople.

Good management is concerned with both attaininggoals and doing so as efficiently as possible

It is possible to be effective but not efficient. Thatmeans to get things done at a higher costs, usingresources inefficiently

8/9/2019 BM 02 Management and Managers

9/19

The tasks/functions of management

Henry Fayol (1916)

( 5 functions):

- Planning

- Organizing

- Commanding

- Coordinating

- Controlling

New formulation,

(4 functions):

- Planning

- Organizing

- Leading

- Controlling

8/9/2019 BM 02 Management and Managers

10/19

Planning Planning means defining the organizations goals

and objectives, establishing an overall strategy forachieving those objectives.

Setting goals and defining objectives keeps the workto be done in its proper focus and helpsorganizational members keep their attention on whatis most important.

8/9/2019 BM 02 Management and Managers

11/19

Organizing Organizing means to establish an organizational

and functional structure for the company

Organizing includes determining what tasks are tobe done, who is to do them, how the tasks are to begrouped, and who reports to whom

8/9/2019 BM 02 Management and Managers

12/19

Leading Leading means to make decisions

Leading means to direct and coordinate people inperforming their tasks

Leading means to motivate people to perform to the

best of their knowledge their jobs

8/9/2019 BM 02 Management and Managers

13/19

Controlling Controlling means to monitor the way employees

perform their activities

Controlling means to evaluate the progress ofrealizing each objective, and to identify eventual gapsbetween what it has been planned and what it hasbeen done

Controlling means to evaluate the effectiveness ofthe realized objectives

8/9/2019 BM 02 Management and Managers

14/19

The kernel of management

The kernel/ essence ofmanagement is

the decision making process

8/9/2019 BM 02 Management and Managers

15/19

New fields of management Planning >>> Strategic Management

Change Management

Organizing >>> Organization DynamicsProcess Management

Human Resource Management

Leading >>> Leadership

Team Management

Controlling >>> Quality Management

Control Management

8/9/2019 BM 02 Management and Managers

16/19

Managers and their skills

Topmanagers

Middle

managers

First-line/ executive managers

8/9/2019 BM 02 Management and Managers

17/19

General skills

Conceptual skills = mental ability to analyze, understand anddiagnose complex situations. Critical thinking is important.

Technical skills = abilities to use knowledge, methods andprocedures specific to a certain field of activity

Interpersonal skills = ability to work with people and to assignthem different tasks

Political skills = ability to built a power base for the decisionmaking process

8/9/2019 BM 02 Management and Managers

18/19

Specific skills

Specific skills depend on the specificity of the productionprocess or a certain activity.

Specific skills depend on the managerial position (top, middleor first-line) within the given organization

QUESTION:

What are in your view the specific skills a deanor a rector in a university should have?

8/9/2019 BM 02 Management and Managers

19/19

Evolution ofthe management thought

Tacit management

Scientific management

Organization management

Social management

Contingency management

Strategic management