Essentials

Learning Objectives
At the end of this training, you should be able to:
Describe the characteristics of an organization and
explain how the concept of an organization is changing
Explain the universality of the management concept,
discuss why an understanding of management is
important and describe the rewards and challenges
of being a manager.

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Learning Objectives
Describe what management is, why management is
important, what managers do, and how managers
utilize organizational resources efficiently and
effectively to achieve organizational goals.
Distinguish among planning, organizing, leading and
controlling (the four managerial functions), and
explain how managers ability to handle each one can
affect organizational performance.

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Learning Objectives (Contd..)

Differentiate among three levels of management,
and understand the responsibilities of managers at
different levels in the organizational hierarchy.
Identify the roles managers perform, the skills they
need to execute those roles effectively and the way
new information technology is affecting these roles
and skills.
Discuss the principal challenges managers face in
todays increasingly competitive global environment.

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What Is An Organization?
An Organization Defined
A deliberate arrangement of people to accomplish
some specific purpose (that individuals independently
could not accomplish alone).

Common Characteristics of Organizations

Have a distinct purpose (goal)
Composed of people
Have a deliberate structure

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Exhibit 1

Characteristics of Organizations

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Exhibit 2

The Changing Organization

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Exercise: 1
Discuss Mumias Sugar Company in terms of the
Characteristics of Organizations.
How is Mumias Changing?

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Why Study Management?

The Value of Studying Management
The universality of management

Good management is needed in all organizations. Studying

management helps people to understand what management
is and prepares them accomplish managerial activities in
their organizations.

The reality of work

Employees either manage or are managed.

Well being of society

Proper management directly impacts improvements in the

well-being of a society.

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Why Study Management?

The Value of Studying Management
Rewards and challenges of being a manager

Management offers challenging, exciting and creative

opportunities for meaningful and fulfilling work.

Successful managers receive significant monetary rewards

for their efforts.

Studying management therefore opens a path to a wellpaying job and a satisfying career.

110

Exhibit 3

Universal Need for Management

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Exhibit 4

Rewards and Challenges of Being A Manager

112

What is Management?
Management
The planning, organizing, leading, and controlling of
human and other resources to achieve organizational
goals effectively and efficiently.

Resources are organizational assets

People
Skills Knowledge
Information
Raw materials Machinery

Financial capital

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Who Are Managers?

Manager
Someone who coordinates and oversees the work

of other people so that organizational goals can

be accomplished.
A person responsible for supervising the use of an
organizations resources to meet its goals.

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Classifying Managers
First-line Managers
Individuals who manage the work of nonmanagerial employees.

Middle Managers
Individuals who manage the work of first-line
managers.

Top Managers
Individuals who are responsible for making
organization-wide decisions and establishing plans
and goals that affect the entire organization.

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Exhibit 4

Managerial Levels

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Organizational Performance
Organizational Performance
A measure of how efficiently and effectively managers
are using organizational resources to satisfy customers
and achieve goals.

Efficiency
A measure of how well or productively resources are
used to achieve a goal.

Effectiveness
A measure of the appropriateness of the goals an
organization is pursuing and the degree to which they
are achieved.

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What Is Managements Concern?

Managerial Concerns
Efficiency

Doing things right

Getting the most output
for the least inputs

Effectiveness

Doing the right things

Attaining organizational
goals

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Exhibit 5 Efficiency, Effectiveness, and Performance in an Organization

119

Exercise 2 Team Effectiveness

Self assessment and Discussion

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Exhibit 6

Effectiveness and Efficiency in Management

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What Do Managers Do?

Henri Fayol - Functional Approach
First outlined the four managerial functions in his book
General Industrial Management.
Managers at all levels in all organizations perform
each of the functions of planning, organizing, leading,
and controlling.

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What Do Managers Do?

Functional Approach
Planning

Defining goals, establishing strategies to achieve goals,

developing plans to integrate and coordinate activities.

Organizing

Arranging and structuring work to accomplish organizational

goals.

Leading

Working with and through people to accomplish goals.

Controlling

Monitoring, comparing, and correcting work.

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Exhibit 7 Four Functions of Management

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Exhibit 8

Management Functions

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Planning
Identifying and selecting appropriate goals and
courses of action for an organization.
The planning function determines how effective and
efficient the organization is and determines the
strategy of the organization.

Three Steps in the Planning Process:

Deciding which goals to pursue.
Deciding what courses of action to adopt.
Deciding how to allocate resources.

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Management Key Concepts

Organization
People working together and coordinating their
actions to achieve specific goals.

Goal/objective
A desired future condition that the organization seeks
to achieve.

Strategy
A cluster of decisions about what goals to pursue,
what actions to take, and how to use resources to
achieve goals.

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Organizing
Structuring working relationships in a way that
allows organizational members to work together
to achieve organizational goals.
Organizational Structure
A formal system of task and reporting relationships
that coordinates and motivates organizational
members.
Creating organizational structure:
Grouping

employees into departments/sections according to

the tasks performed.
Laying out lines of authority and responsibility for
organizational members.

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Leading
Articulating a clear vision to follow, and
energizing and enabling organizational
members so they understand the part they play in
attaining organizational goals.
Leadership involves using power, influence, vision,
persuasion, and communication skills.
The outcome of leadership is highly motivated and
committed organizational members.

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Exercise 3 Leadership Motivation

Self assessment and Discussion

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Controlling
Evaluating how well an organization is achieving
its goals and taking action to maintain or
improve performance.
Monitoring individuals, departments, and the
organization to determine if desired performance
standards have been reached.
Taking action to increase performance as required.
The outcome of control is the ability to measure
performance accurately and to regulate the
organization for efficiency and effectiveness.

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What Roles Do Managers Play?

Management Roles
Approach (Mintzberg)
Interpersonal roles

Figurehead, leader, liaison

Informational roles

Monitor, disseminator,
spokesperson

Decisional roles

Disturbance handler, resource

allocator, negotiator

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Interpersonal Roles
Roles that managers assume to provide
direction and supervision to both employees and
the organization as a whole:
Figureheadsymbolizing the organizations mission
and what it is seeking to achieve.
Leadertraining, counseling, and mentoring high
employee performance.
Liaisonlinking and coordinating the activities of
people and groups both inside and outside the
organization/department.

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Informational Roles
Roles associated with the tasks needed to
obtain and transmit information in the process of
managing the organization:
Monitoranalyzing information from both the internal
and external environment.
Disseminatortransmitting information to influence
the attitudes and behavior of employees.
Spokespersonusing information to positively
influence the way people in and out of the
organization respond to it.

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Decisional Roles
Roles associated with methods managers use in
planning strategy and utilizing resources:
Entrepreneurdeciding which new projects or
programs to initiate and to invest resources in.
Disturbance handlermanaging an unexpected
event or crisis.
Resource allocatorassigning resources between
functions and divisions, setting the budgets of lower
managers.
Negotiatorreaching agreements between other
managers, unions, customers, or shareholders.

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Exercise 4 Decisional Roles

Discuss in groups the basis upon which you
make decisions in Mumias and report on your
discussion

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What Managers Actually Do (Mintzberg)

Interaction
with others
with the organization
with the external context
of the organization

Reflection
thoughtful thinking

Action
practical doing

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Managerial Skills
Technical skills
Knowledge and proficiency in a specific field
The specific knowledge, techniques and resources
required to perform an organizational role.

Human skills
The ability to understand, alter, lead, and control the
behavior of other individuals and groups.
The ability to work well with other people
Ability to work with, communicate with, and
understand other people

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Managerial Skills
Conceptual skills
The ability to think and conceptualize about abstract
and complex situations concerning the organization
The ability to analyze and diagnose a situation and
distinguish between cause and effect.

139

Exhibit 9 Basic skills of managers

Technical
skills

Ability to see the overall

organization and integrate the
parts of the system

Conceptual
skills

Ability to use specific

knowledge, techniques,
and resources

Human
skills
Ability to work with, communicate
with, and understand other people

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Exhibit 10

Conceptual Skills

Using information to solve business problems

Identifying of opportunities for innovation
Recognizing problem areas and implementing
solutions
Selecting critical information from masses of
data
Understanding of business uses of technology
Understanding of organizations business model

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

141

Exhibit 11

Communication Skills

Ability to transform ideas into words and actions

Credibility among colleagues, peers, and
subordinates
Listening and asking questions
Presentation skills; spoken format
Presentation skills; written and/or graphic
formats

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

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Exhibit 12

Effectiveness/Technical Skills

Contributing to corporate mission/departmental

objectives
Customer focus
Multitasking: working at multiple tasks in parallel
Negotiating skills
Project management
Reviewing operations and implementing
improvements

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

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Exhibit 13

Effectiveness/Technical Skills (contd)

Setting and maintaining performance standards

internally and externally
Setting priorities for attention and activity
Time management

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

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Exercise 5 Time Management

Self assessment and Discussion

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Exhibit 14

Interpersonal Skills (contd)

Coaching and mentoring skills

Diversity skills: working with diverse people and
cultures
Networking within the organization
Networking outside the organization
Working in teams; cooperation and commitment

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

146

Exhibit 15

Skills Needed at Different Management Levels

147

Exhibit 16

Management Skills and Management Function Matrix

148

How The Managers Job Is Changing

The Increasing Importance of Customers
Customers: the reason that organizations exist
Managing customer relationships is the responsibility of all
managers and employees.
Consistent high quality customer service is essential for
survival.

Innovation
Doing things differently, exploring new territory, and
taking risks

Managers should encourage employees to be aware of and

act on opportunities for innovation.

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Exhibit 17
Changes Impacting
the Managers Job

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Challenges for Management

in a Global Environment
Increasing Number of Global Organizations.
Building a Competitive Advantage.
Maintaining Ethical Standards.
Managing a Diverse Workforce.
Utilizing IT and E-commerce
New legislation

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Building a Competitive Advantage

Increasing Efficiency
Reducing the quantity of resources used to produce
goods and services.

Increasing Quality
Introducing Total Quality Management (TQM) to
improve quality.

Increasing Speed, Flexibility, and Innovation

Adapting to bring new products to market faster.

Increasing Responsiveness to Customers

Empowering employees to deal with customers.

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Exhibit 18 Building Blocks of Competitive Advantage

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Maintaining Ethical Standards

Factors Influencing Behaviors:
External pressures from stockholders/stakeholders for
increased organizational financial performance.
Internal pressures from top management to lower-level
managers to increase the organizations competitive
performance and profitability.
Societal, cultural, and environment demands on the
organization.
Hurt somebody unintentionally vs. illegally

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Managing a Diverse Workforce

The Increasing Diversity of the Workforce
Non-Discriminatory Employment Practices
(Mumias HR policies and Procedures Manual,
The Employment Act and related labour laws)
Performance-Enhancing Benefits of a Diverse
Workforce

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Utilizing Information Technology (IT)

and E-commerce
Benefits of IT and E-commerce
Makes more and better information about the
organization available to outsiders
Empowers employees at all organizational levels
Helps managers carry out their roles more effectively
and efficiently
Increases awareness of competitive opportunities
Makes the organization more responsive to its
customers

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Any questions?

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Terms to Know

manager
first-line managers
middle managers
top managers
management
efficiency
effectiveness
planning
organizing
leading
controlling

management roles
interpersonal roles
informational roles
decisional roles
technical skills
human skills
conceptual skills
organization
universality of
management

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