INTRODUCTION TO MANAGEMENT

Organizations pervade every aspect of our lives. Organizations seem to be everywhere. We are born in organizations, educated by organizations, and most of us spend much of our lives working for organizations. ... Most of us will die in an organization, and when the time comes for burial, the largest organization of all - the state - must grant official permission (Amitai Etzioni). Organizations come in a variety of sizes and types - corporations, schools, governments, and so on, - and they serve a wide range functions. Related to this, all organizations try to reach their common goals. It would be impossible to image a modern society without organized effort or without people who oversee and synchronize that effort. The purpose of this thesis is to promote excellence of all persons in organizations, but especially managers. This introductory chapter lays put the general dimensions of the manager s !ob. It introduces the role and the function of managers in the organization, identifies re"uisite management s#ills, and examines the historical development of management #nowledge.

Defining Management
The field of management deals with organizations. Our society could not exist or improve its present status without managers to guide it organizations. Thirty years ago, $eter %ruc#er, a noted management authority, proclaimed that effective management was becoming the main resource of developed nations, and that it was the most needed resource of developing nations.%ruc#er s comments are still valid and all countries need good managers. This section offers an explanation of the general terms and principles of organization and management.

n most &large' corporations there are several levels of strategy. (trategic management is the highest in the sense that it is the broadest, applying to all parts of the firm. It gives direction to corporate values, corporate culture, corporate goals, and corporate missions. )nder this broad corporate strategy there are often functional or business unit strategies. Functional strategies include mar#eting strategies, new product development strategies, human resource strategies, financial strategies, legal strategies, supply-chain strategies, and information technology management strategies. The emphasis is on short and medium term plans and is limited to the domain of each department*s functional responsibility. +ach functional department attempts to do its part in meeting overall corporate ob!ectives, and hence to some extent their strategies are derived from broader corporate strategies. ,any companies feel that a functional organizational structure is not an efficient way to organize activities so they have reengineered according to processes or strategic business units &called (-)s'. . strategic business unit is a semi-autonomous unit within an

organization. It is usually responsible for its own budgeting, new product decisions, hiring decisions, and price setting. .n (-) is treated as an internal profit centre by corporate head"uarters. +ach (-) is responsible for developing its business strategies, strategies that must be in tune with broader corporate strategies. The lowest level o strateg! is o"erational strateg!. It is very narrow in focus and deals with day-to-day operational activities such as scheduling criteria. It must operate within a budget but is not at liberty to ad!ust or create that budget. Operational level strategy was encouraged by $eter %ruc#er in his theory of management by ob!ectives &,-O'. Operational level strategies are informed by business level strategies which, in turn, are informed by corporate level strategies. -usiness strategy, which refers to the aggregated operational strategies of single business firm or that of an (-) in a diversified corporation refers to the way in which a firm competes in its chosen arenas. Cor"orate strateg!# then, refers to the overarching strategy of the diversified firm. (uch corporate strategy answers the "uestions of /in which businesses should we compete0/ and /how does being in one business add to the competitive advantage of another portfolio firm, as well as the competitive advantage of the corporation as a whole0/ (ince the turn of the millennium, there has been a tendency in some firms to revert to a simpler strategic structure. This is being driven by information technology. It is felt that #nowledge ,anagement systems should be used to share information and create common goals. (trategic divisions are thought to hamper this process. ,ost recently, this notion of strategy has been captured under the rubric of dynamic strategy, popularized by the strategic management textboo# authored by 1arpenter and (anders. This wor# builds on that of -rown and +isenhart as well as 1hristensen and portrays firm strategy, both business and corporate, as necessarily embracing ongoing strategic change, and the seamless integration of strategy formulation and implementation. (uch change and implementation are usually built into the strategy through the staging and pacing facets.

2hat is strategic management0

(trategic ,anagement can be defined as 3the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its ob!ective.4 %efinition5 3The on-going process of formulating, implementing and controlling broad plans guide theorganizational in achieving the strategic goods given its internal and external environment4. Interpretation56. On-going process5 (trategic management is a on-going process which is in existence through out the life of organization. 7. (haping broad plans5 8irst, it is an on-going process in which broad plans are firstly formulated than implementing and finally controlled. 9. (trategic goals5 (trategic goals are those which are set by top management. The broad plans are made in achieving the goals.

:. Internal and external environment5 Internal and external environment generally set the goals. (imply external environment forced internalenvironment to set the goals and guide them that how to achieve the goals

The strategic-management process does into end when the firm decides what strategy or strategies to pursue. There is a translation of strategic though into strategic action. This translations much easier if managers and employees of the firm understand the business, feel a part of the company, and through involvement in strategy-formulation activities have become committed to helping the organization succeed. Without understanding and commitment, strategy-implementation efforts face major problems. Implementing strategy affects an organization from top to bottom it affects all the functional and divisional areas of a business. It is beyond the purpose and scope of this te!t to e!amine all of the business administration concepts and tools important in strategy implementation. This series of post focuses on management issues most central to implementing strategies in the year "#$#, and upcoming posts focuses on mar%eting, finance&accounting, '(), and management information system issues. The strategy-implementation stage of strategic management is revealed. *uccessful strategy formulation does not guarantee successful strategy implementation. It is always more difficult to do something +*trategy implementation, than to say you are going to do it +strategy formulation,.lthough ine!tricably lin%ed, strategy implementation is fundamentally different from strategy formulation. *trategy formulation and implementation can be contrasted in the following ways Ways of *trategy /ormulation and Implementation $. *trategy formulation is positioning forces before the action. ". *trategy implementation is managing forces during the action. 0. *trategy formulation focuses on effectiveness. 1. *trategy implementation focuses on efficiency. 2. *trategy formulation is primarily an intellectual process. 3. *trategy implementation is primarily an operational process. 4. *trategy formulation re5uires good intuitive and analytical s%ills. 6. *trategy implementation re5uires special motivation and leadership s%ills. 7. *trategy formulation re5uires coordination among a few individuals. $#. *trategy implementation re5uires coordination among many individuals. *trategy-formulation concepts and tools do into differ greatly for small, large, forprofit, or nonprofit organization. 8owever, strategy implementation varies substantially among different types and sizes of organizations. Implementing strategies re5uires such actions as altering sales territories, adding new

departments, closing facilities, hiring new employees, changing an organization9s pricing strategy, developing financial budgets, developing new employee benefit, establishing cost-control procedures, changing advertising strategies, building new facilities, training new employees, transferring managers among divisions, and building a better management information system. Theses types of activities obviously differ greatly between manufacturing, service, and governmental organizations.