CHAPTER 2

GENERAL BUSINESS MANAGEMENT

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Learning Objective

Define what is management. Identify and explain the basic managerial function. Understand the roles that the managers play. Discuss the scope of responsibilities of functional and general managers. Describe the three levels of managers in terms of the skills that they need and the activities in which they are involved.

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Definition of Management

Getting work done through others. Management", from Old French menagement the art of conducting, directing, from Latin manu agree to lead by the hand) characterizes the process of leading and directing all or parts of an organization, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible. Pat Carrigans description of managerial responsibilities indicates that managers have concerned with efficiency and effectiveness.

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Definition of Management

The process of getting things done, effectively and efficiently, through and with other people

Efficiency Getting work done with a minimum

efforts,expenses or waste. Doing the thing correctly; refers to the relationship between inputs and outputs; seeks to minimize resource costs.

Effectiveness Accomplishing tasks that help fulfill

organization objective. Doing the right things; goal attainment

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Efficiency and Effectiveness

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Management Process Activities

Management process: planning, organizing, leading, and controlling

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Management Processes

Planning
Includes defining goals, establishing strategy, and developing plans to coordinate activities Important of planning:1. Managers and employees put forth greater effort when following plan. 2. Planning leads to persistence, that is, working hard for long periods. In fact, planning encourage persistence even when there may be little chance of short-term success.

3. Plans encourage mangers and employees to direct their persistence effort towards activities that help accomplish their goals.

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Cont..

Organizing

Includes determining what tasks to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.
Refers to the activities of designing an organizational structure, dividing and assigning jobs and tasks among departments, sections or units besides handling the infrastructure and operation methods.
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Leading
Includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts Leading involve:1. Assigning of jobs and responsibilities

2. 3.
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Motivating employees and Providing and receiving feedback.

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Cont..

Controlling The process of monitoring performance, comparing it with goals, and correcting any significant deviations To ensure that activities carried out are on the right track in achieving the goals set out by the business. Effectively monitor business activities the manager needs to get feedback from the personal vise versa.

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Cont..

Controlling consists 3 steps;1. Measuring performance 2. Comparing to standard 3. Correcting (if necessary) A good communication channel must be made.

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Executive Management Skill

Organization A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizations-for-profit as well as notfor-profit organizations. Where managers work (manage). Common characteristics Goals Structure People
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Common Characteristics of Organizations

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People Differences

Operatives People who work directly on a job or task and have no responsibility for overseeing the work of others. Managers Individuals in an organization who direct the activities of others.

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Organizational Levels

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Job and Responsibilities

Top managers Individuals who are responsible for

making decisions about the direction of the organization and establishing policies that affect all organizational members

Like CEO, COO, Vice-President, Cooperate Head Responsible for overall direction of the organization.
1. 2. Creating a context of change (state mission and vision) Helping employees develop a sense of commitment to the business.

3. Creating a positive organizational culture through language action.

4.
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and

Monitoring their business environment.

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Cont.

Middle managers Individuals at levels of management between

the first-line manager and top management Like plant managers, regional managers, divisional managers. Responsible for setting objective consistent with top managements goals, and planning and implementing subunit strategies for achieving these objective. 1. 2. To plan and allocate resources to meet objectives. To coordinate and link group, departments, and division within company. To monitor and manage the performance of the subunits and individual managers who report them.

3.

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Cont

First-line manager - Supervisors responsible for directing the

day-to-day activities of operative employees Responsible to train and supervise performance of non managerial employees and who are directly responsible for producing the companys product or services.

1.
2. 3.

The only managers who dont supervise other managers.

Spend time teaching entry-level employees how to do their job. Make detailed schedule and operating plan based on middle managements intermediate-range plans.

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Cont.

Team leaders responsible for facilitating team activities

towards goal accomplishment.
1. Facilitating team performance

2.
3.

Managing external relationship

Responsible for internal relationship

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Managerial roles
Entrepreneur Disturbance handler Resources allocator Negotiator

Figurehead Leader Liaison

Monitor Disseminator spokesperson

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Management Roles Approach

Interpersonal roles

Figurehead the interpersonal role managers play when they perform ceremonial duties.
Leader - the interpersonal role managers play when they motivate and encourage workers to accomplish organizational objectives. Liaison - the interpersonal role managers play when they deal with people outside their unit.

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Management Roles Approach

Informational roles

Monitor the informational role managers play when they scan their environment for information.
Disseminator - the informational role managers play when they share information with others in their departments or companies. Spokesperson - the informational role managers play when they share information with people outside their departments or companies

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Management Roles Approach

Decisional roles

Disturbance handler the decisional role managers play when they respond to severe problems that demand immediate action. Resource allocator - the decisional role managers play when they decide who gets what resources. Negotiator - the decisional role managers play when they negotiate schedules, projects, goals, outcomes, resources, and employee raises. Entrepreneur role - the decisional role managers play when they adapt themselves, their subordinates, and their units to incremental changes.
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Management Roles Approach

Skills Approach

Technical skills Knowledge and proficiency in a specific field

Human skills The ability to work well with other people Conceptual skills The ability to think and conceptualize about abstract and complex situations concerning the organization

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Skills Needed at Different Management Levels

Exhibit 1.5

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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.

Exhibit 1.6a

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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.

Exhibit 1.6b

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Effectiveness 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 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.

Exhibit 1.6c

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