Introduction to Management and Organizations

Transcription

1 Introduction to Management and Organizations Management, the word itself is so profound that, when heard by Rahul (a simple engineering student), his mind starts portraying a picture of a person who is ordering others to do something and also guiding him to how to do that thing. Manager, for Rahul, is a guy who is on the other side of the table delivering the tasks to his subordinates with a target to be achieved at the end of every month, according to much perspective. But the truth is way beyond these perspectives. Although management, being a discipline for more than 80 years, there is no common consensus among its experts and practitioners about its precise definition. In fact, this is so in case of all social sciences like psychology, economics, political science etc. As a result of unprecedented and breath-taking technological developments, business organizations have grown in size and complexity, causing consequential changes in the practice of management. Changes in management styles and practices have led to changes in management thought. Moreover, management being interdisciplinary in nature has undergone changes because of the developments in behavioral sciences, quantitative techniques, engineering and technology, etc. Since it deals with the production and distribution of goods and services, dynamism of its environments such as social, cultural and religious values, consumers' tastes and preferences, education and information explosion, democratization of governments, etc., have also led to changes in its theory and practice. Yet, a definition of management is necessary for its teaching and research, and also for improvement in its practice. Many management experts have tried to define management. But, no definition of management has been universally accepted. Let us discuss some of the leading definitions of management: Peter F. Drucker defines, "Management is an organ; organs can be described and defined only through their functions". Management can be defined as all the activities and tasks undertaken by one or more persons for the purpose of planning and controlling the activities of others in order to achieve an objective or complete an activity that could not be achieved by the others acting independently. - Koontz H., C. O'Donnell, and H. Weihrich.[1] Management is the art of getting things done through and with people in formally organized groups. Harold Koontz.[2] Mary Parker Follet, defines management as, The art of getting things done through people. As Rahul see the ambiguity regarding the definition for the discipline, management, itself. He also sees the disregard with this discipline lacking luster in today s economy. But the picture is quite wide than it seems. So, I like to place an example of TOI (Times of India) [3], where, TOI commissioned global recruitment firm Randstad to go deep into CEOs' CVs, to find out the following outcome displayed in the Venn-diagram besides. Also, in an article published in SkillingIndia.com, of an interview with Shekhar Sanyal, Country Head, IET India, regarding, What should engineering students entering All CEOs 45% Engineers 78% Post- Graduated 64% MBA ANURAG PAL, PIT 1

2 workforce focus on and expect from the industry today in terms of job roles and compensation? For which, he stated that, there are multiple reports which stress upon the widening industry-academia skill gap, as the output from educational institutions does not match the need of the industry. Here are a few pointers on how engineers can equip themselves to become industry ready: 1. Additional qualifications. 2. All-round professional development. 3. Knowledge and networking. 4. Demonstrating relevance. Now the question arises that how well are the managers compensated? According to the Indian Bureau of Labor Statistics, the average monthly salary in 2009 for Indian workers of all sorts was Rs.50,000, or Rs.3,00,000 a year. Companies pays: The average 2012 yearly income for full-time workers with a bachelor's degree was Rs.3,00,000 and with a master's degree (MBA,CA) was up to Rs.60,00,000.[4] There are also all kinds of fringe benefits and status rewards that go with being a manager, ranging from health insurance to stock options to large offices. And the higher you ascend in the management hierarchy, the more privileges may come your way: personal parking space, better furniture, lunch in the executive dining room, on up to for those on the top rung of big companies-company car and driver, corporate jet, and even executive sabbaticals (months of paid time off to pursue alternative projects). Rewards of Management GUY:- STUDYING MANAGEMENT PRACTISING MANAGEMENT You will understand how to deal with You and your employees can experience a sense organizations from the outside. of accomplishment. You will understand how to relate to your You can stretch your abilities and magnify your supervisors. range. You will understand how to interact with coworkers. services. You can build a catalogue of successful products or You will understand how to manage yourself in the workplace. [Source: Management: A practical Introduction - Angelo Kinicki & Brian K. Williams, 5e, McGraw Hill] So, now Rahul can see how eagerly this corporate is waiting for such students with some extra zeal in them. And if he wants to be a part of it then he will have to become a person with something extra, because being just an engineer is too mainstream. Challenges of an exceptional Manager: But along the way to become an exceptional manager, there are challenges which he would have to face. Such as: Challenge #I: Managing for Competitive Advantage Staying Ahead of Rivals Competitive advantage is the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them. Challenge #2: Managing for Diversity The Future Won't Resemble the Past Some scholars think that diversity and variety in staffing produce organizational strength, as we consider elsewhere. Clearly, however, the challenge to the manager of the near Kindle. After the success of its booksize kindle 2. Amazon.com introduced ANURAG PAL, PIT the Kindle DX, designed to be used for electronic newspaper and magazines. [Source: digitaltrends.com] 2

3 future is to maximize the contributions of employees diverse in gender, age, race, and ethnicity. The famous golden arches: This McDonald s store in Japan is an example of globalization. [Source: commons.wikimedia.org] Challenge #3: Managing for Globalization The Expanding Management Universe "In Japan it is considered rude to look directly in the eye for more than a few seconds," says a report about teaching Americans how to behave abroad, "and in Greece the hand-waving gesture commonly used in America for goodbye is considered an insult." Challenge #4: Managing for Information Technology E-commerce or electronic commerce-the buying and selling of goods or services over computer networks-is reshaping entire industries and revamping the very notion of what a company is. Challenge #5: Managing for Ethical Standards Ethical behavior is not just a nicety; it is a very important part of doing business. This was certainly made clear in December 2008, when financier Bernard Madoff confessed that his investments were all "one big lie"-not investments at all, but rather a $50 billion scheme (Ponzi scheme), using cash from newer investors to pay off older ones. Challenge #6: Managing for Sustainability The Business of Green Sustainability is defined as economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs. World s biggest fraud. Financier Bernard Madoff run world s biggest fraud for years, had not his scheme been undermined by the recession. [Source: praiseindy.com] Challenge #7: Managing for Your Own Happiness & Life Goals Ms. Odette Pollar said: "If you truly like people and enjoy mentoring and helping others to grow and thrive, management is a great job." Rahul now seems to be getting some grip over the subject shows further interest and also is aware of the challenges he is going to face if he wishes to get a good job. But finding that the discipline, Management, itself don t have a definition was quite astonished. As most of his engineering terminologies always had a scientific reason and sharp definitions, which he is used to explore, but here he has to also face art. Art itself has no definitions, no boundaries, so is management. As management being different in each and every dimension, we see its definitions these very dimensions one by one as follows: 1. Productivity Concept: According to this concept it is an art to how to increase the productivity of the company. Management is the art of knowing what you want to do in the best and cheapest way. F. W. Taylor. 2. Integration Concept: According to this concept management is the coordinator of human and no-human factors of production (4Ms a.k.a. Man, Machine, Money & Material) Management is the force that integrates men and physical plant into an effective operating unit Keith and Gubellini. ANURAG PAL, PIT 3

4 3. Functional Concept: It says that management is what a manager does. To manage is to forecast, and plan, to organize, to command, to coordinate and to control. Henry Fayol 4. Human-relation Concept: It portrays management as an art to get things done by others. Management is the art of directing and inspiring people J. D. Mooney and A. C. Railey. 5. Leadership / Decisional Concept: It shows us the dimension that management is a part of Leadership and decision making process. Management is simply the process of decision making and control over the action of human beings for the express purpose of attaining pre-determined goals Stanley Vance. Now he started finding things interesting, as well as challenging at the same time. So he went on to understand the roots of the subject. If management can t be defined from a single perspective, then how we will come to know that how it is, means what will be the traits to identify that these are the characteristics of management and these are the functions of management, the guy who performs them will be called a manager. Characteristics of Management: The main characteristics of management are as follows: 1. Management is an activity: Management is an activity which is concerned with the optimization of human and non-human factors of production. 2. Invisible Force or Intangible: Management is an invisible force, whose existence can only be felt through the enterprise or institution it is managing. 3. Goal Oriented: According to Theo Haimann, "Effective management is always management by objectives". In other words, we need management when we have some goals/objectives to be achieved. A manager on the basis of his knowledge and experience tries to achieve the goals which are already decided. 4. Anti-Proprietorship: Management does not signify proprietorship. Managers cannot do everything themselves. They must have the necessary ability and skills to get work accomplished through the efforts of others. It now refers to a specialized group of people who have acquired the ability to carry out a project. 5. Universal activity: Management is universal. Management is required in all types or organizations. Wherever there are some activities, there is management. The basic principles of management are universal and can be applied anywhere such as business, social, religious, cultural, sports, administration. 6. Art as well as Science: Management is both an art and a science. It is a science as it has an organized body of knowledge which contains certain universal truths or facts and an art as managing requires certain skills which apply more or less in every situation. 7. Multidisciplinary Knowledge: Though management is a distinct discipline, it contains principles drawn from many social sciences like psychology, sociology etc. 8. Need at all levels: According to the nature of task and scope of authority, management is needed at all levels of the organization, i.e., top level, middle and lower level. 9. Integrated process: Management is an integrated process. It integrates the men, machine and material to carry out the operations of the enterprise efficiently and successfully. This integrating process is result oriented. 10. Leadership: The management has to lead a team of workers. It must be capable of inspiring, motivating and winning their confidence. ANURAG PAL, PIT 4

5 Now Rahul can identify with these traits that which can be called one of the managements. But he still is in the confusion that if he becomes a manager then what will be the functions that he will be performing in the future company. Then, let me say that Rahul will have to perform what is called a management process considering of four management functions Planning, Organizing, Leading and Controlling. (POLC in short) Functions of Management: Planning includes setting goals and defining the actions necessary to achieve the goals, in light of the situation. That is, the situation must be analyzed and understood and the appropriate goal(s) and actions must be determined in order to take advantage of opportunities and/or to solve problems. While top-level managers establish overall goals and strategy, managers throughout the organization must develop goals, strategy, and operational plans for their work groups that contribute to the success of the organization as a whole. In addition, they must develop a plan for administering and coordinating the resources for which they are responsible so that the goals of their work groups can be achieved. Planning You set goals and decide how to achieve them Organizing You arrange tasks, people and resources to accomplish the work Management Process Controlling You monitor performance, compare it with goals, and take corrective actions as needed Leading You motivate, direct, or otherwise influence people to work hard to achieve organization's goal Organizing involves determining the tasks to be done, who will do them, and how those tasks will be managed and coordinated. Managers must organize the members of their work groups and organization so that information, resources, and tasks flow logically and efficiently through the organization. Organizing also includes defining and assigning authority and responsibility for decisions to enable tasks to be carried out effectively. Issues of organizational culture and human resource management are also related to this function. Overall, the organization must be structured in a way that will lead to achievement of its mission and organizational goals and allow it to be responsive to changes in the organization s environment. Leading: Managers must also be capable of leading the members of their work groups toward the accomplishment of the organization s goals. To be effective leaders, managers must understand the dynamics of individual and group behavior, be able to motivate their employees, and be effective communicators. In today s business environment, effective leaders must also have vision. They must be capable of understanding and predicting what will happen in the future, and they must be capable of sharing that vision and guiding, empowering, and influencing their employees to make the vision a reality. When this is accomplished, the results are very positive. Controlling: Managers must monitor the performance of the organization as well as their progress in implementing strategic and operational plans. Controlling includes establishing and understanding what is required to achieve goals, Top Managers Middle-Line Managers First-Line Managers Non-Managerial Personnel ANURAG PAL, PIT 5

6 measuring what actually happened or is being done, identifying deviations between planned and actual results, and taking corrective action if there is a deviation. Such actions may involve pursuing the original plan more aggressively or adjusting the plan to the existing situation. Control is an important function in the managerial process because it provides a method for ensuring that the organization is moving toward the achievement of its goals. Levels and Areas of Management: Another way of understanding the nature of a manager s job is to examine the three levels of management shown in diagram below. The pyramid in this figure illustrates progressively fewer employees at each higher managerial level. The largest number of people is at the bottom organizational level. The Top Managers: COO CFO CIO CEO Vice President Corporate Head The Middle-Line Managers: General Manager Plant Manager Divisional Manager Regional Manager The First-Line Managers: Office Manager Shift Supervisor Department Manager Non-Managerial Personnel: Team Leader Group Facilitator The above differentiation amongst various people of the company is made on the basis of the skills and the typical activities that they are performing in company and hence a hierarchy has been created. The skills and activities are as follows: Managerial Level Main Skills Typical Activities The Top Managers Conceptual Monitoring the organization environment. Set strategic direction The Middle-Line Managers Human Planning and allocating resources. Coordinating interdependent groups. Managing group performance. The First-Line Managers Technical Use appropriate tools, techniques, procedures. Instructing, guiding subordinates. Managing individual performance. Non-Managerial Personnel Technical + Laborious Facilitation External relationship Internal relationship ANURAG PAL, PIT 6

7 Managerial Roles: So far, we have described managerial work by focusing on the functions of management and by examining the four kinds of managerial jobs. Although those are valid and accurate ways of categorizing managerial work, if you followed managers around as they perform their jobs, you probably would not use the terms planning, organizing, leading, and controlling to describe what they do. In fact, that s exactly the conclusion that management researcher Henry Mintzberg came to when he followed around five American CEOs. Mintzberg spent a week shadowing each of the CEOs. He analyzed their mail, whom they talked to, and what they did. Mintzberg concluded that managers fulfill three major roles while performing their jobs: Interpersonal Roles Informational Roles Decisional Roles The roles as described by Mintzberg are summarized as follows: Henry Mintzberg Broad Managerial Roles Types of Roles Description Interpersonal Managerial Roles Informational Managerial Roles Figurehead role Leadership role Liaison role Monitor role Disseminator role In your figurehead role, you show visitors around your company, attend employee birthday parties, and present ethical guidelines to your subordinates. In other words, you perform symbolic tasks that represent your organization In your role of leader, you are responsible for the actions of your subordinates, since their successes and failures reflect on you. Your leadership is expressed in your decisions about training, motivating, and disciplining people. In your liaison role, you must act like a politician, working with other people outside your work unit and organization to develop alliances that will help you achieve your organization's goals. As a monitor, you should be constantly alert for useful information, whether gathered from newspaper stories about the competition or gathered from snippets of conversation with subordinates you meet in the hallway. Workers complain they never know what's going on? That probably means their supervisor failed in the role of disseminator. Managers need to constantly disseminate important information to employees, as via and meetings. ANURAG PAL, PIT 7

8 Decisional Managerial Roles Spokesperson role Entrepreneur role Disturbance handler role Resource allocator role Negotiator role You are expected, of course, to be a diplomat, to put the best face on the activities of your work unit or organization to people outside it. This is the informational role of spokesperson. A good manager is expected to be an entrepreneur, to initiate and encourage change and innovation. Unforeseen problems-from product defects to international currency crises-require you be a disturbance handler, fixing problems. Because you'll never have enough time, money, and so on, you'll need to be a resource allocator, setting priorities about use of resources. To be a manager is to be a continual negotiator, working with others inside and outside the organization to accomplish your goals. References:- 1. Management, 7th ed., McGraw-Hill, New York, N.Y., The Management Theory Jungle Revisited, The Academy of Management Review, Vol. 5, No.2 (Apr., 1980), pp Engineering-MBA still ticket to success at India Inc., Samidha Sharma & Shubham Mukherjee, TNN May 7, ANURAG PAL, PIT 8