Management Concepts and Planning

8/3/2019 Management Concepts and Planning

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FUNDAMENTALS OF

MANAGEMENT

Fundamentals of Mana ement 11

What do Beaunit Mills, Hercules Powder,And Liebmann Breweries have in common?

On 1st Fortune List (1955)They Don’t Exist Today

“BAD Management”Not “Keeping up the Good Work”

Not adapting to Environmental Changes



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Management Defined

According to Mary Parker Follett Management

is the “art of getting things done through

people”.

It Is the process of designing and maintaining

an environment in which individuals,working, together in groups efficiently

accomplish selected aims.




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Continue

George R Terry :- defines management as a

processconsisting of planning organizing actuating and

controlling, performed to determine and

accomplish the objectives by the use of people

and resources.

Management:Applies to any kind of organization.

Applies to managers at all organizational levelsManagers carry out the functions of planning

Is concerned with productivity; implieseffectiveness and efficiency






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ORGANIZATION

A systematic arrangement of people broughttogether to accomplish some specific purpose;applies to all organizations—for-profit as wellas not-for-profit organizations.

Where managers work (manage)

Common characteristics

Goals

Structure

People




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Organizational Levels



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Identifying Managers

First-line managersSupervisors responsible for directing the

day-to-day activities of operative employees

Middle managersIndividuals at levels of management

between the first-line manager and topmanagement

Top managers

Individuals who are responsible for making

decisions about the direction of theor anization and establishin olicies thatFundamentals of Mana ement 77



Managerial functions at differentOrganization Levels

All managers carry out managerial functions,the time spent for each function may differ.

Top level managers, spend more time on

planning and organizing than do lower- levelmanagers.

The scope of authority held may vary and thetypes of problems dealt with may beconsiderably different.

Also, the person in a managerial role may bedirecting people in the sales, engineering, or

finance department.



FUNCTIONS OF MANAGEMENT

The concepts, principles, theory and

techniques of management are grouped into

five functions as:

Planning

Organizing

StaffingLeading

Controlling




MANAGEMENT SKILLS

•

Conceptual Skills : cognitive ability to seethe organization as a whole and therelationship among its parts

• Human Skills : ability to work with and

through other people and to workeffectively as a group member

• Technical Skills : understanding of and

proficiency in the performance of specifictasks.

• Design Skills: Is the ability to solveproblems in ways that will benefit the

enterpriseFundamentals of Mana ement 10



SKILLS AT MANAGERIAL LEVELS




MINTZBERG’S MANAGERIAL

ROLES Interpersonal

Informational

Decisional




Interpersonal Roles

The figurehead engages in ceremonial

activities.

The leader motivates, communicates, and

influences subordinates.

The liaison develops relationships outsidehis/her unit both inside and outside the

organization.



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:INFORMATION ROLES

The monitor seeks current information frommany sources.The disseminator transmits information to

others both inside and outside the organization.The spokesperson provides official statements topeople outside the organization about companypolicies, actions, or plans.



Decisional Roles

The entrepreneur initiates change.

The resource allocator allocates resourcesto

achieve outcomes.

The negotiator bargains for his/her unit.

The disturbance handler resolves conflicts.




Henry Fayol’s FourteenPrinciples Of Management

Division of work

Authority and Responsibility

Discipline

Unity of command

Unity of direction

Subordination of the individual interest toorganizational interest.

Remuneration




Principles Continued

Centralization

Scalar chain

OrderEquity

Stability of tenure of personnel

InitiativeEsprit de corps




Five Functions Of Managers

Stated as:

1. Planning2. Organizing

3. Staffing

4. Leading

5. Controlling




planning

Planning is looking ahead and preparing for thefuture.

Planning involves selecting missions and

objectives and the actions to achieve them. It requires decision making, that is choosing

future courses of action from amongalternatives.

No real plan exists until a decision acommitment of human or material resources orreputation has been made.



Nature and Purpose of Planning Involves selecting missions and objectives and

the actions to achieve them.

It requires decision making and bridges the gapfrom where we are to where we want to go.

Planning is an intellectual process, and itrequires that we consciously determine coursesof action and base our decisions on purpose,knowledge and considered estimates.

Planning and control are inseparable Siamesetwins of management.

Any attempt to control without plans is

meaningless there is no way for people to tell



organizing

§ Organizing is that part of managing thatinvolves establishing an intentional structureof roles for people to fill in an organization.

§ It is intentional in the sense of making surethat all the tasks necessary to accomplishgoals are assigned and to people who can dothem best.

§ The structure must define the tasks to bedone, the roles so established must also bedesigned in the light of the abilities andmotivations of the people available.



STAFFING

Staffing involves filling, and keeping filled,the positions in the organization structures.

Done by identifying work- force

requirements inventorying the peopleavailable.

Involves Recruiting, Selecting, placing,promoting, appraising planning the careers

of, compensating and training.



leading

Leading is the influencing of people so thatthey will contribute to organization andgroup goals.

Effective managers also need to be effectiveleaders.

leading involves motivation,leadership stylesand approaches and communication.



controlling

Controlling is the measuring and correctingof activities of subordinates to ensure thatevents conform to plans.

It measures performance against goals andplans shows where negative deviationsexists.

Initiate actions to correct deviations.

Example: means of controlling like thebudget for expense inspection records



TYPES OF PLANS

1. Purposes or Missions

2. Objectives

3. Strategies4. Policies

5. Procedures

6. Rules

7. Programs

8. Budgets





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objectives

Desired outcomes for individuals, groups, orentire organization.

Objectives are the ends towards whichactivity is aimed they are the results to beachieved.

Represent the end point of planning and alsothe end towards which organizing , staffingleading and controlling are aimed.



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PURPOSES OR MISSIONS

Identifies the basic function or task of anenterprise in every social system.

Enterprises have a basic function or task which is

assigned to them by society.They have a social purpose of producing and

distributing goods and services.

it can accomplish this by fulfilling a mission of

producing certain lines of products.



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Example:

1. Missions of an oil company, such as Exxon:“Search for oil and to produce, refine andmarket petroleum and a wide variety ofpetroleum products, from diesel fuel to

chemicals”.2.Mission of the Du Pont Company: “better things through chemistry”.3. Hallmark, expanded its business beyond

greeting cards, defines its mission as:“the social expression business”.



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strategies

General programs of action anddeployment of resources to attaincomprehensive objectives.

Include the determination of the basiclong term objectives of an enterprise andthe adoption of courses of action andallocation of resources necessary to

achieve these goals.

Example: Years back, GM had a “do-it –yourself", policy.

Now, some GM cars are made by rival



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policies

Are plans in that they are generalstatement or understandings which guideor channel thinking in decision making.

Policies define an area within which adecision is to be made and ensure that thedecision will be consistent with , andcontribute to an objective permitting

managers to delegate authority and stillcan have control.

Example: 1.Company strictly follow- the

practice of promoting from within



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PROCEDURE AND RULES

Procedure: Is a standing plan that outlinesstep-by step guides to action.

Includes activities and they detail the exact

manner in which certain activities must beaccomplished.

Rules: Is a standing plan which indicates what anemployee should or should not do and allows no

room for interpretation. Example: No smoking , IT IS NOT A

THROUGHWAY



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PROGRAMMES

Are a complex of goals, policies, procedures,rules, task assignments and steps to be takenand resources to be employed to carry out agiven course of action and they are supported by

budgets.Example:

An airlines Co. program for acquiring a $400million fleet of jets.

5 year program initiated by the Ford Motorcompany several years ago to improve the statusand quality of it’s thousands of foreman.



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BUDGETS

Is a statement of expected resultsexpressed in numerical terms and isreferred to as a numberized program.

Can be expressed either in financialterms or in terms of labor hours unitsof product, machine- hours or anyother numerically measurable term.

It reflect capital outlays as the capitalexpenditures budget does or



Continued

It may show cash flow as the cashbudget does.

Budgets vary according to the

organizations level of output andthese are called variable or flexiblebudgets.

Advantages: It makes people plan because a

budget is in the form of numbers

It forces precision in planning

Documents

Management Concepts and Planning