Part 1

What is management?

The four functions of management

AP1SB1 Week 1– Introduction to AP1SB1- Defining Management - The Four Functions of Management –
Management Skills 1
 Defining organisation
• Organisation is a social entity that is goal-directed and
deliberately structured
– Social entity means being made up of two or more people
– Goal-directed means designed to achieve some outcome (profit, win
pay increases for members, meet spiritual needs, provide social
satisfaction)
– Deliberately structured means that tasks are divided, and
responsibility for their performance is assigned to organisation
members
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 Efficiency and effectiveness
• Efficiency refers to the amount of resources – raw £/ha
material, money, people – used to produce a desired l/kg
days/p
volume of output. mpg

Market
• Effectiveness refers to the degree to which the share
organisation achieves a stated goal (without reference to Customer
satisfaction
costs). Zero
carbon
• Performance is defined as the organisation’s ability to Share price
Yield
attain goals by using resources in an efficient and effective Emissions
manner, measured against pre-set standards.
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 The definition of management

“Management means in the last analysis, the substitution of thought for

brawn and muscle, of knowledge for folklore and superstition, and of
cooperation for force…

-Peter Drucker, Management expert.

Collect other definitions as you find them

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 Definition of management
• What is management?
Is the attainment of organisational goals in an effective and efficient
manner through planning, organising, leading and controlling
organisational resources.

• What do managers do?

Managers get things done by coordinating and motivating other people.

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 Which organisations need to be managed?

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 What do managers do?
2. Organise
1. Set objectives
Divide work into
Establish goals
manageable
and decide what
activities and
must be done to
select people to
achieve them
accomplish tasks

5. Develop people 3. Motivate and

Recognise the communicate
value of employees Create teamwork
and develop this via decisions on
critical pay, promotions,
organisational etc. and through
asset communication

4. Measure
Set targets and
standards;
appraise
Based on “What managers do?” The Wall Street Journal online performance
(New York Harper Business, 2010)

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 The process of management
Four Management Functions
Planning
Select goals and ways to
attain them
Resources Performance
• Human • Attain goals
Controlling Organising • Products
• Financial
• Raw
Monitor activities Assign • Services
Materials
and make responsibility for • Efficiency
• Technological
corrections task • Effectiveness
• Information accomplishment

Leading
Use influence to
motivate employees

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 The framework of management
Successful Management should begin with

Setting Objectives
it then involves

Planning Decision Making Control

In pursuit of objectives to implement and convert in an endeavour to
plans into action meet objectives
The processes are applied to the following main areas of business

Production Marketing Financing Staffing

It all takes place within an

Economic, political, social, natural, technical and legal environment

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 Example:
Planning
• General Electric (GE)
The management decided to sell divisions such as
plastics, insurance and media in order to focus on four
key areas – Energy – Aircraft Engines – Health Care equipment and
Financial Services
2015 – selling off Financial Services to focus on its original core business of
advanced technology and manufacturing
Keep people playing a key role within these core businesses so they are
able to gain a deeper understanding of products and customers

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 Example:
Organising
• Oprah Winfrey

As a CEO she repositioned some executives and hired new ones, cut jobs to
reduce costs and streamline the company.
“… the economics of a start-up cable network just don’t work with the cost
structure that was in place.”
Restructuring the organisation will bring lean, entrepreneurial approach to
get OWN on solid ground

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 Example:
Leading
• Chrysler Group, CEO Sergio Marchionne
As a CEO he spends 2 weeks in Michigan to inspire and motivate people
in the sales, marketing and industrial operations in order to achieve
ambitious goals

Spends half time at the headquarters of Fiat in Italy.

He turned round both Fiat and Chrysler to profitability within two years.

But you don’t have to be an executive to become a successful leader.

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 Example:
Controlling
• Controlling for effective T&L experience

– Establish standards to measure performance (assessment criteria)

– Measure actual performance (set test and assignments or exams)
– Compare performance with the standard
– Take corrective action – give feedback

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 Bring them all together!

• Warren Brown CakeLove (speciality bakery chain)

Once he has charted the course for his operation (planning)

and put all the necessary policies, procedures and structural mechanisms
in place (organising) he supports and encourages his employees (leading)
and makes sure that nothing falls through the cracks (controlling)

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 Remember this
• Management is defined as the attainment of organisational goals in an effective
and efficient manner through planning, organising, leading and controlling an
organisation’s resources
• Planning is the management function concerned with defining goals for future
performance and how to attain them
• Organising involves assigning tasks, grouping tasks into departments,
delegating authority and allocating resources across the organisation
• Leading, means using influence to motivate employees to achieve the
organisation’s goals
• Controlling is concerned with monitoring employees activities, keeping the
organisation on track toward meeting its goals, and making corrections if
necessary
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AP1SB1 Week 1– Introduction to AP1SB1- Defining Management - The Four Functions of Management –
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 Part 2

Manager skills, types and roles

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 Your best and worst manager

Using Socrative

• A. The best manager I ever had did the following

• B. The worst manager I ever had did the following

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 Management skills
Top • Conceptual – cognitive ability i.e. to see the organisation as a whole and
the relationship among its parts; Think strategically
– Thinking, information processing, planning
– Innovate, decision making, allocating
Front- • Human – refers to managers’ ability to work with and through other
line people and to work effectively as part of a group
– Motivate, facilitate, co-ordinate, lead, communicate, resolve
• Technical – is the understanding of and proficiency in the performance of
specific tasks
– Mastery of methods, techniques, equipment involved in specific
Lower
functions such as engineering, manufacturing or finance .

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 Top causes of manager failure
10. Poor planning practices/reactionary behaviout 45%
9. Inability to lead/motivate others 47%
8. Inability to develop cooperation and team work 50%
7. Lack of personal integrity and trustworthiness 52%
6. Breakdown of delagation and empowerment 56%
5. Failure to adapt or break old habits 57%
4. Failure to clarify direction or performance expectations 64%
3. Person-job missmatch 69%
2. Poor work relationships/interpersonal skills 78%
1. Ineffective communication skills and practices 81%

Adapted from Clinton O. Longenecker; Mitchel J. Neubert and Laurence S. Fink, Causes and Consequences of managerial failure in rapidly changing
organisations” Business Horizons (50) 2007: 145-155

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 Personal exercise (optional)
Management Aptitude Questionnaire

• Conceptual skills
• Human skills
• Technical skills

Ideally, a manager should be strong (though not necessarily equal) in all

three. Anyone noticeably weaker in any of these skills should take courses
and read to build up that skill.

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 Management Types
• Vertical differences
– Top managers are responsible for setting organisational goals,
defining strategies for achieving them, monitoring and interpreting the
external environment and making decisions that affect the entire
organisation

– Middle managers are responsible for implementing the overall

strategies and policies defined by the top managers
(project managers and first-line managers).

Temporary teams, from different Responsible for

functions and levels, possibly production of goods and
external services
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 Management Types
• Horizontal differences
– Functional managers are responsible for departments that perform a
single functional task and have employees with similar training and
skills
• Line managers - responsible for directly meeting customer needs
with products or services; supervisors
• Staff managers – responsible for activities that support line
managers: departments such as finance and human resources

– General managers are responsible for several departments that

comprise a distinct unit in the organisation

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 Remember this
• Functional managers: single common activity
• General managers: complete unit, several functions
• Line managers: single function, directly involved in making or
supplying; supervisors
• Staff managers: support functions, not income earning
• Project managers: temporary team

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 Role = set of expectations
Manager Roles. for a manager’s behaviour

Informational Interpersonal
- Monitor - Figurehead
- Disseminator - Leader Mintzberg’s 10
Spokesperson - Liaison
manager roles
Decisional
- Entrepreneur
- Disturbance handler
- Resource allocator
- Negotiator
Source: Mintzberg, 1973

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 Informational Roles

– Monitor – seek out, receive and screen

information
– Disseminator – share information
(internal)
– Spokesperson – transmit information
(external)

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 Interpersonal roles

– Figurehead – performs
ceremonial duties

– Leader – directs and motivates

– Liaison – development of
information sources

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 Decisional Roles

–Entrepreneurial – initiate change. New production line

–Disturbance-handler – deal with the unexpected, correct,

resolve conflict. Supplier breaks contract

–Resource-allocator – choose amongst competing demands. Budgets

–Negotiator – formal bargaining. Joint venture agreements

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