Principles of Management( Chapters 1-7) PDF

Preview

Summary

of Management CHAPTER 1 Management skills are identifiable sets of actions that individuals perform to produce an outcome they value. Practices to enhance training and education had a positive effect on both their skills and management skills, turning into a positive effect on organisational perform...

Description

-Principles of Management

CHAPTER 1 Management skills are identifiable sets of actions that individuals perform to produce an outcome they value. Practices to enhance employee’s training and education had a positive effect on both their skills and management skills, turning into a positive effect on organisational performance. Academic theory doesn’t suffice to managers, they need to develop management skills. Business awareness and social awareness are 2 skills needed by a graduate manager.

5 steps towards developing a skill Assessment – to show learners their present level of skill, and to motivate improvement Learning – to show the theory and research showing why the skill is valuable Analysis – to help the learners see links between skills used and results achieved Practice – to give learners the chance to practice and adapt skills to suit the way they work, and to local circumstances. Feedback enables further improvement 5. Application – to give learners the chance to use new skills in practical situations

1. 2. 3. 4.

1.2 Managing to add value to resources Organisation – a social arrangement for achieving goals that create value Organisations come in multiple forms, domestic arrangements (family or flat mates), large public organisations, large business etc. etc. They affect us and we judge them, based on the performance and the output of their services. In the past century we’ve witnessed an impressive amount of innovations, ranging from vaccines and antibiotics to airplanes and cars or computers and networks. The discipline of management was also one of those innovations, and together with others, working hand-in-hand. Knowing how and when to apply the innovations in technology, is a credit to be given to management. Tangible resources are the physical assets of an organisations such as plant, people and finance Intangible resources are non-physical assets such as information, reputation and knowledge Both these types of resources are used by managers to build an organization with the resources and competences to deliver goods and services. Competences are the skills and abilities that an organization uses to deploy resources effectively, such as systems, procedures and ways of working. Value is added to resources when they are transformed into goods or services that are worth more than their original cost plus the cost of transformation.

1.3 Meanings of management

Management as a universal human activity occurs whenever people take responsibility for an activity and consciously try to shape its progress and outcome. A manager is someone who gets things done with the aid of people and other resources. Management is the activity of getting things done with the aid of people and other resources. Management as a distinct role develops when activities previously embedded in the work itself become the responsibility not of the employee, but of owners of their agents. A role is the sum of the expectations that others have about the responsabilities of a person occupying a position.

1.4 Specialisation between areas of management General managers are responsible for the performance of a distinct unit of the organisation, such as a division or a subsidiary. He relies on the managers in charge of each function. Functional managers are responsible for the performance of an area of technical or professional work, either as line managers or staff managers. Line managers are responsible for the performance of activities that directly meet customers’ needs. Their performance significantly affects business performance and image, as they and their staff are in direct contact with the customers. Staff managers are responsible for the performance of activities that support line managers. They don’t earn income directly for the organization, as they’re not in contact with the customer. Project managers are responsible for managing a project, usually intended to change some element of an organization or its context. Entrepreneurs are people who see opportunities in a market, and quickly mobilise the resources to deliver the product or service profitably.

Management hierarchies

Starting from low to high

People doing the work are the people who do the manual and mental work needed to make and deliver products or services to customers, ranging from low-paid cleaners to software designers at Apple. The activity is likely to contain some aspects of managerial work, but on low level it’ll be limited. Running a small business is where direct work and management work need to be combined.

First-line managers sometimes called supervisors typically direct and support the daily work of a group of staff, framed by the requirement to monitor, report and improve work performance. They sometimes work with middle managers on operational issues. (head chef in a hotel, manager of a bank branch) The job is particularly challenging when the subordinates are highly skilled professionals with views of their own on how to do the work.

Middle managers ensure the first-line managers work in line with company policies. This requires them to translate strategy into operational tasks, mediating between senior management vision and operational reality and often interpreting and re-shaping higher policies to suit local conditions. This is often challenging especially when they believe the decisions of senior managers are flawed, and/or they receive little recognition.

Senior managers are expected to ensure that middle managers, suppliers and other business partners work in ways that add value to resources – that they follow agreed plans, suggest innovations, deliver supplies as agreed and so on. The most senior manager is called the managing director (MD) or chief executive officer (CEO) and will be assisted by functional heads (head of engineering or marketing). The senior team reports to the board of directors.

Board of the directors is the small group managing the business, the most senior of whom is called the chairman. They establish policy and have a particular responsibility for managing relations with people and institutions in the world outside. The CEO is usually a member and some senior managers may also be present.

1.4 Influencing through the process of managing Stakeholders are individuals, groups or organisations with an interest in, or who are affected by, what the organization does.

Mintzberg made a scale divided in 3 macro categories: informational, interpersonal and decisional Each category includes multiple types of managers, but overall it was seen that managers are usually a combination of more of these types. Networking refers to behaviors that aim to build, maintain and use informal relationships (internal and external) that may help work-related activities. Networking is an important part of a manager’s assets, being well connected with people and essentially having a good network of people is reflected in a manager’s salary and position.

Ways to build a more valuable network : Face-to-face networks  

Find ways to attend formal networking events Use casual conversations to seek out additional people with whom to network

 

Create events that others want to attend Maintain, as well as build, your network – keep in touch with people, make opportunities and try to ensure they benefit from networking with you

Social media networks  

Vital to build an active online network on professional sites like Linkedin Ensure the image you present there is the one for the goals you have in mind

1.6 Influencing through the tasks of managing Management tasks are those of planning, organizing, leading and controlling the use of resources to add value to them. In the definition above, there are other elements in direct work with the management tasks. Managers face the challenge of using natural resources efficiently and sustainably. Managers invest time and effort in developing a sense of direction for the organization, or their part of it, and express these as goals. Managers create structure for the enterprise, developing policies for HRM, deciding what technology people need and how to encourage innovation.

1.7 Influencing through shaping the context Influencing by changing the context in which others work is another way to influence. (office layout, reward system etc.) The context influences managers, and is a tool they use to influence others. 1.4 Case study 



 

External envirornment factors such as wars, or a change in demand, all part of the external context have affected the company one way or another, and managers found themsevels with immediate or over-time problems. The company, by changing its tactics accordingly, has made flying more available and cheaper, directly impacting on the demand for it. Their customers have been growing steadily ever since the company has had a friendlier approach. Cheap flying, slowly working towards upgrading the IT infrastructure has shaped the context in which flying is made possible and accessible to the population. As we’ve seen, the CEO is in charge of pricing with airports and other things, so having a good network of people helps them. In 2018 Ryanair still hasn’t implemented a strategy for business travelers. Their most expensive package, includes few benefits for the price asked, and from personal experience traveling with them, the success of their most expensive packages is low. Ryanair has waited and let EasyJet get ahead of the game on this regard, and they could’ve learned from the experience.

1.8 Thinking critically to develop knowledge and skill

Critical thinking identifies the assumptions behind ideas, relates them to their context, imagines alternatives and recognizes limitations. Critical thinkers are self-confident about their potential for changing aspects of their worlds, both as individuals and through collective action.

1.9 Integrating themes Sustainability refers to economic activities that meet the needs of the present population while preserving the environment for the needs of future generations. The triple bottom line is the idea that organisations can assess their performance on social and environmental criteria as well as financial ones. Corporate governance is concerned with ensuring that internal controls adequately balance the needs of those with a financial interest in the organization, and that these are balanced with the interests of other stakeholders.

Test your understanding 







Noncommercial companies add value to resources in different ways, such as by educating people, counselling the troubled and caring for the sick. The British Heart Foundation managed to raise a lot of money to further their goal of curing and preventing heart disease. Tate Modern and other create value by offering inspiration, new perspectives or unexpected insights. The main difference between management as a human activity and it being a distinct job is exactly that one. Management as a human activity occurs when a person takes responsibility for an activity and try to shape its outcome. Management is also an activity of getting things done with the aid of resources and people. The human activity can be done by anyone and is indeed done even if unconsciously, and the difference between “management” and “work” isn’t very well defined. Once the line of difference between the two is defined, we have management as a job and not as a normal human activity anymore. Once a company or a person, takes control of an activity that someone used to “manage” and “work” for at the same time, then the company manages said activity as it has decisional power over the direction of it and so on. The most notable difference between management work and no management work, is actually the amount of people doing each. The latter includes most of the low level workers, raging from the low paid workers to highly paid software engineers. First-line managers, often called supervisors, are those working directly with the employees. More often than not they also do the work themselves. It’s a challenging job, besides the aspect of supervisioning, gathering info and data and trying to change tactics to improve performance, they also do the job themselves and it’s hard for them when they deal with highly specialized employees whose views on how they work can be very strong. Middle managers’ job is to translate strategy and views from higher management into operational tasks. Their job to mediate between senior management and operational reality. Examples of successful middle managers: a hospital decided to hire middle managers that also had clinical training, playing a vital in improving communication between senior management and technical staff.





From Luthans (1988) study emerged that successful managers are those who have created a good network and thus spending more time at networking while effective managers spent most time on communication and human resource management. Planning – setting the overall direction of the work, implementing new ideas that could improve work performance. Organising – making plans for myself, and trying to move towards materializing the abstract plan Leading – the task of generating effort and commitment, influencing, motivating and communicating in teams or individual Controlling – the task of monitoring progress, and in case it deviates from the plan, taking necessary action to counter the problems

Summary

Managers create value by transforming inputs into outputs of greater value. They do that by developing competences within the organisations that, by constantly adding value (however measured, commercial or non) to resources are able to keep the organization surviving and prospering. Managers work in a range of different settings. Management is an activity that everyone undertakes in their lives, one way or another. In another sense, management is an activity within organisations, conducted in varying degrees by people. People create the distinct role of manager, once the management is separated from the work, and assigned to specific individuals. The distinction between management and non-management work is fluid, and is a result of human action and interaction. Managers influence others to add value to resources in more ways: The process of managing, Rosemary Stewart drew attention to the fragmented and interrupted nature of management work, Mintzberg identified ten management roles, grouped as informational, impersonal and decisional. Luthans and more recently Moser found that successful managers have good networking skills and thus a good network of people. Effective managers are those that focus on other areas more. The tasks of managing: Planning develops the broad direction of an organization’s work, to meet customer expectations, taking into consideration internal capabilities. Organising is the activity of deciding how to deploy resources to meet plans, while leading seeks to ensure that people work with commitment. Control monitors activity against plans, so that people can adjust either if required. The context within which people work. The internal context consists of eight elements that can help or hinder a manager: culture, objectives, technology, business processes, finance, structure, power and people. The historical context also influences events, as does the external context of competitive and general environments.

Critical thinking is a positive approach to studying, as it encourages people to develop the skills of identifying and challenging assumptions, recognizing the importance of context, imagining and exploring alternatives and seeing the limitations of an idea. Developing networking skills is likely to be more effective if a manager questions the assumption that networking is always appropriate, and whether the context encourages networking or not. They’re also likely to benefit more if they seek alternative ways of networking, and are conscious of the limitations of said practice. Entrepreneurs depend on a network of informal contacts to get things done. Sustainability. Value has traditionally been measured primarily in economic terms, but can also be measured with the triple bottom line - profit, people, planet. Internationalisation is a pervasive theme in management, and it affects all managers. Public criticism of corporate scandals has increased interest in corporate governance methods, to oversee the activities of management.

CHAPTER 2

A model (or theory) represents a complex phenomenon by identifying the major elements and relationships.

Pfeffer and Stutton identified why often experienced managers ignore evidence, and suggest that they:     

Trust personal experiences more than they trust research Prefer to use a method that has worked for them before Are susceptible to consultants heavily promoting their solutions (skepticism) Rely on dogma and myth (evidence or not) Uncritically imitate practices that have worked for famous companies

Alan fox studied the relationship between managers and employees, and found that the assumptions a manager holds, affect the way they do their job. Those who take a: 





Unitary perspective believe that organisations try to find rational ways to achieve common goals. Managerial work derives from the division of labour and managers work to achieve objectives shared by all members. Pluralist perspective believe that the division of labour creates groups with different interests. Conflict over ends/means is inevitable, so managerial work involves gaining sufficient consent to meet interests and accept extent Radical perspective challenge both previous models. They believe that the division of labour sustain unequal social relations within the capitalist society. As long as this exists, managers and employees will always be in conflict.

Practice and the way a manager works will always be proof of his theories and/or models. A simple distinction, with real life cases is:  

Motivating managers: Tim O’Toole, chief executive of London Underground, appointed a general manager for each line to improve accountability. Supporting managers: John Timpson, chairman of the shoe repair and key-cutting chain, believes the most important people in the company are those actually doing the work

A metaphor is an image used to signify the essential characteristics of a phenomenon.

2.4 Rational model (Taylor) The first step to this model is the division of work into steps and to different people. This increases productivity. Scientific management was a school of management that attempted to create a science of factory production. Frederick Taylor focused primarily on the machine-based production lines, which are heavily present nowadays. To achieve maximum prosperity, every worker had to achieve his maximum efficiency level, aka the best he can do. This would follow as managers controlled every aspect of the production. This would be the imagine of the machine. He advocated five principles:     

Use scientific methods to determine the best way to do a task Select the best person to do the job while ensuring physical suitability and mental quality Train, teach and develop the worker to follow procedures precisely Provide financial incentives to ensure the worker follows the prescribed method Move responsibility for planning and organizing to the managers

Operational research is a scientific method of providing (managers) with a quantitative basis for decisions regarding the operations under their control. This originated in the 1940s, when the UK War Department was facing problems in the deployment of radar-based anti-aircraft guns. Using operational research, an effective way of deployment of the guns was implemented, and changes were seen as follows: at the beginning of the war some 2...