Management chapter 1

Management chapter 1

Definition of Management

•      Productivity-Oriented Definitions (生产力)

•      “Management is the art of knowing what you want to do and then seeing that it is done in the best and the cheapest manner.” – F.W. Taylor 

People-Oriented Definitions（人）

•      “Management is the development of people and not the direction of things.” - Lawrence A. Appley (used to improve the people but not the thing )

•      “Management is a specialty (专业)  in dealing with matters of time and human relationships as they arise in organizations.”- Stoner, Freeman and Gilbert()

Goal-Oriented Definitions (目标)

•      “Management is the art of getting things done through others and with formally organized groups.” - Harold Koontz

•      “Management is the art of getting things done through people.” - Mary P. Follett

Process-Oriented Definitions

•      "Management may be defined as the process by means of which the purpose and objectives of a particular human group are determined, clarified and effectuated.“ - E. Peterson and E.G. Plowman

•      “Management is a distinct process consisting of planning, organizing, actuating and controlling; utilizing in each both science and art, and followed in order to accomplish pre-determined objectives.” - George R. Terry

Leadership-Oriented Definitions

•      “Management is simply the process of decision-making and control over the actions of human beings for the purpose of attaining predetermined goals.”(control the people in order to accomplish the goal) - Stanley Vance

•      “Management is the art and science of decision making and leadership.” - Donald J. Clough

Other Definitions

•      “Management is a multi-purpose organ that manages a business and manages managers and manages workers and work.” – Peter Drucker

•      “Good management achieves a social objective with the best use of human and material energy and time, and with satisfaction for the participants and the public.” - Mary Cushing Niles

The meaning of Management :

Individuals, groups, and organizations may interpret management differently depending on their perspectives and objectives in understanding it.

Area of Management :

General Management :

•         Views the business as a whole.

•         Includes managing day-to-day operations, formulating policies, and devising the efficient use of resources.

•         A general manager commonly holds overall responsibility for an organization’s planning, organizing, delegating, and decision-making functions.

Functional Management :

•A functional manager is an executive who is responsible for an organizational unit within an organization.

•Functional managers ensure that their units’ strategies and goals are aligned with the organization’s long term vision and objectives.

•Generally, there are four functional areas of management: production, finance, marketing and personnel. 

Managers for For-Profit, Non-Profit, and Mutual-Benefit Organizations

For-Profit

•         Formed to generate monetary revenue in exchange for goods and services.

•         Managerial goals are driven by bottom-line results.

Non-Profit (emphasizing the services)

•         Formed with the primary purpose of providing services without making profits.

•         Managers prioritize service goals instead of financial goals, and so may behave differently from managers in business organizations.

Mutual-Benefit

•         Key purpose is to protect their members and help members further their interests.

•         Managers of such organizations often focus on their members’ needs and agendas instead of other managerial goals. (take care of their surbodinates)

Management Functions

Planning

•      Management planning involves the development of forecasts (predict), objectives, policies, programs, procedures, schedules and budgets.

•      There are 3 types of planning in organizations: Strategic planning, tactical planning, and operational planning.

Organizing

•      Organizing refers to the development of a rule-based structure that identifies the activities necessary to achieve organizational goals, assigns these activities, and delegates authority/relationships in the organization.

 Leading

•      Leading is when managers continuously guide and direct their subordinates.

•      This involves sub-functions such as communicating, motivating, decision-making, and supervising.

Controlling

•      Controlling involves ensuring that the objectives and plans of the organization are accomplished satisfactorily.

Other Management Functions

                 Staffing

•      Staffing concerns the recruitment, selection, development, promotion and compensation of personnel within an organization. (regards to worker)

Representation

•      Representation involves representing one’s organization and its purpose to the public.

  

•      Innovation

This function refers to managers’ responsibility to innovate their firm’s products,  services, ideas, or methods based on future needs in the market

Types and Levels of Managers

Top management (more to the VMO )

The main functions of top management are:

ü  To determine the objectives, policies, and strategic plans of the organization.

ü  To provide guidance and direction for department activities, budgets, procedures,   and schedules.

ü  To appoint middle level and functional area executives.

ü  To coordinate and integrate all departmental activities.

ü  To act as contact points with society and the public.

ü  To hold responsibility to the shareholders and stakeholders.

Middle management

ü  To run key organizational functions for top management while top management spends more time on strategies.

ü  To ensure smooth operations of the organization.

ü  To understand the interconnectivity of all departments and ensure they operate harmoniously.

ü  To develop efficient personnel and encourage merit-based rewards.

ü  To develop capable leaders via training and development.

ü  To foster strong organizational spirit and culture.

Lower management

ü  To plan day-to-day activities and targets within goals set by upper management.

ü  To assign specific tasks to employees.

ü  To oversee hour-to-hour results.

ü  To report on daily feedback and information.

ü  To take immediate corrective action at the activity site.

ü  To train, motivate and evaluate employees.

 Managerial Roles

•      Interpersonal Roles

•      Interpersonal roles allow managers to keep the organization operating in harmony and cooperation.

•      The three interpersonal roles are: Figurehead, Leader, and Liaison.

•      Informational Roles

•      Managers need information to make good decisions, and subordinates in an organization depend on information given by managers to perform their tasks.

•      The three informational roles managers play to collect and transmit information are: Monitor, Disseminator （the person who spread the news）, and Spokesperson.

•      Decisional Roles

•      Managers are active decision makers, and are constantly acting upon changes in the organization by playing these four decisional roles : Entrepreneur, Disturbance Handler (in-charge to dealing trouble), Resource Allocator,  and Negotiator.

Management skills

Technical skill

-The skill of using tools, techniques, and methods that are specialized to a specific field

Conceptual Skill (open-minded can accept advice and suggestion)

-The ability to understand, cooperate with and motivates subordinates.

Human Skill

-The mental ability to integrate and coordinate the organization’s activities and goals.

-Interpersonal skill

-Communication skill

-Time-Management skill

-Decision making skill

Organizational Performance

•      Well-performing organizations can improve people's living standards, boost national economy, create new and useful knowledge, and contribute to the society overall.

•      Organizational performance involves two factors - efficiency and effectiveness.

•      Organizational effectiveness （效用） refers to how well an organization achieves its purpose of providing its customers with valuable goods or services.

•      Organizational efficiency(效率) refers to how much an organization can maximize its production of those goods and services using its available resources.

•      It is management’s responsibility to attain high performance by achieving organizational goals with a balance of both efficiency and effectiveness.