BUSINESSBUSINESS COURSESMANAGEMENT COURSE

Introduction To Management

people discussing management

♠ THERE ARE NUMEROUS DEFINITIONS OF MANAGEMENT

♦   The most popular definition of management is written by American writer Mary Parker Follet who said that management is the ability of getting things done with the help of other people, or in short: getting things done through people.

♦   Management includes planning, organizing, commanding, coordinating and monitoring.

♦   Fayol divided all organizational operations into the following functions: technical, commercial, financial, property, administrative and managerial.

♦   According to J. Stoner, E. Freeman and D. Gilbert, management is the process of planning, organizing, directing and controlling the efforts of all organization members and of the use of all organizational resources in order to achieve organizational goals.

♦   According to S. Robbins and M. Coulter, management means the coordination of activities related to work, in order to be carried out effectively and efficiently.

♦   According to Peter F. Drucker, management is a new technology.

♦   According To B. Mašić, management is effective knowledge used in a continuous process: planning, organizing, managing and controlling business activities in order to achieve organizational goals and objectives, so that certain organization becomes effective and efficient.

♦   The concept of management is characterized by the fact that it is not fully, clearly and precisely defined. This condition is not only a consequence of insufficient development of management as a science, but of the fact that management is a complex concept, having several meanings.

♦   Management can be applied to any type of organization, and the term management refers to managers at all organizational levels.

♦   The goal of all managers is to create the surplus of value. They manage, and management is engaged in the production, which involves efficiency and effectiveness.

♠ MANAGEMENT AS A SKILL

♦   Management is seenas a practice.

♦   Management, as a practice, represents a particular job or activity of performing management functions: planning, organization, direction and control.

♦   Therefore, management can be defined as an art or a skill to perform management functions.

♦   Unlike management as a set of knowledge, which is of general nature, management as a skill is not impersonal. It can not be impersonal.

♦   Management as a skill or an art is a concept that refers to the ability of managers as individuals, to perform managerial functions more or less successfully in the real world.

♦   Two groups of factors act on the efficiency of management skills of each manager.

♦   Knowledge that manager has, because management, as a skill or an art, is the know-how to do things in certain situation.

♦   Personality characteristics of managers which can not be learned are important.

♦   Those characteristics are creativity, communication, abilities for successful management, wisdom, determination, adroitness and personality characteristics of managers, whose possession represents an important factor in their qualifications and a significant guarantee for their success.

♦   Their specificity lies in the fact that they are hard to learn, but may slightly sharpen and enhance certain abilities through various forms of training.

♠ FUNCTIONS OF MANAGEMENT

♦   Management activities are divided into the basic functions of management:-

– Planning

– Organization

– Leadership

– Control

– Human Resource Management.

♦    Planning is the primary management function and involves defining and selecting objectives and activities of the company.

♦    It defines strategic, financial, marketing and corporate objectives. It determines the mission and vision of the enterprise, in other words the purpose  of its actions.

♦    Organization as function of management involves defining tasks and activities, delegating of authority necessary for conducting activities, creating and formatting each person’s role in the organization.

♦    Manager selects the structure of the organization, which he/she believes to be the most convenient for accomplishing business goals.

♦    While other management functions can be delegated to experts inside or outside the enterprise, leadership function cannot be delegated to others.

♦    Leadership is central management function and core work of each manager.

♦     Manager needs to know to manage people in the organization, to involve and engage all the necessary human resources in order to achieve the goals of the organization.

♦     Leadership also includes motivation and communication.

♦    It is a process in which a manager influences others and directs their activities towards the achievement of objectives.

♦    The task of the leader is to add value to the organization.

♦    These values are the basis of attitude towards the accomplishment of task and all the work, so the possibility of leadership is a very important trait of manager.

♦    Management function of control consists of measuring and recording activities, with the purpose of insuring the accomplishment of company’s objectives and plans.

♦    In order to control, one need to have plans and goals.

♦   They must be measurable in order to control their implementation.

♦   Control provides knowledge about the degree of accomplishment of plans and ensures preventive and corrective measures at each stage of the process of implementation of the plans.

♦   Human resources management refers to recruitment, promotions, training and education, ratings of employees’ career, wages and bonuses.

♦   The quality manager will affect employees’ progress by motivating, rewarding and encouraging the individual improvement of each person, keeping in mind that human progress enables the development of the whole organization.

♦   Management tasks are extensive and complex, from the functions that manager has within the enterprise to noticing and following trends outside the company.

♠ MANAGER’S ROLE IN ENTERPRISE

♦   Manager in the enterprise has complex, painstaking and difficult work.

♦   The success of management performance depends on manager’s knowledge, qualifications and skills.

♦   He/she is responsible for controlling and managing organizational resources in order to achieve organizational goals.

♦   Manager operates and directs the organization towards the implementation of plans and strategies.

♦   In order to successfully lead the organization, he/she must possess management skills.

♦   Robert L. Katz identified skills that each manager needs to have.

♦   Technical skills or knowledge and its acquirement relate to performance of specific tasks in the enterprise.

♦   Skill of working with people refers to the ability of a manager to work with and through people.

♦   This skill is expressed through managers attitude towards other people, and it includes his/her ability to motivate, assist, coordinate, lead communicate and resolve conflicts.

♦   Manager having this skill allows to his/her employees to express themselves and encourages their participation.

♦   Skill of conceptualizing or conceptual skill is the ability of perceiving the enterprise as a whole, recognizing the important elements in a situation and understanding the relationship between these elements.

♦   This skill includes managers’ ability of reflection, information processing and planning.

♦   Manager having this skill thinks strategically. Skill of formatting refers to the ability of to generating solutions to business problems in a way that serves the company.

♦   In order to be effective, especially at higher organizational levels, managers must be skilled to do more than just notice the problem.

♦   They must have skills for developing new, useful ideas and give practical solutions to a specific problem.

♦   Managers must also be able to create a solution which can be carried out in real time and place.

♠ TYPE OF MANAGERS

♦   Managers are people who are professionally engaged in management.

♦   This means that they perform managerial tasks in accordance with precisely defined tasks, permissions and responsibilities, and they are paid for their work.

♦   Managers, both with the general manager, are not only the most significant factor of effective and efficient business activities of all organizations, but also bear the greatest responsibility for results, i.e. the effectiveness and efficiency of the organization as a whole or its parts.

♦   This is the reason why managers have hold special position, role and importance in all organizations.

♦   The best way to explain this is to indicate the effectiveness of different types of leaders.

♦   There are various division managers in the literature.

♦   They are the product of various approaches.

♦   The greatest number of divisions results from the application of the following criteria: the position that managers hold in the organizational hierarchy (managers of various levels), the nature of the range of organizational activity (general and functional managers), the focus on the future (inactive, reactive and active managers).

♦   Modern manager must have the ability of analytical thinking, quick thinking and to be self-initiative, decisive, tactful, strive for setting high goals for himself/herself and entire organization.

♦   Following trends, technologies, changes on market, economic, political, demographic and other changes allows manager to timely adjust the strategies, objectives and policies of the enterprise, and thus permits the survival of the enterprise market.

♠ TOP , MIDDLE AND FIRST-LINE MANAGERS

♦   In accordance with the level to which they belong in the organization, managers are divided into:

Top managers,

Middle managers and

First-line managers

♦   Top Managers:

As the name itself says, top managers are at the top of the organizational management hierarchy.

Top managers are responsible for managing, functioning and results of the organization as a whole, respectively, for effective and efficient business activities, growth and development of the organization.

Because of this, they have relevant powers necessary for bringing and implementing decisions, which also direct and regulate the functioning and development of organization.

♦   Middle-level managers:

Middle managers are in the middle of the hierarchical structure of the management system, between top and first-level managers.

Middle managers are liable to top managers for carrying out of decisions brought by top management.

They have the right to control organizational units which they lead and for whose results they are responsible.

Middle managers accomplish their tasks in cooperation with first-line managers.

This fact is the reason that these managers are sometimes called managers of managers.

♦   First-line managers :

First-line Managers are managers who are fulfilling their function in close connection with people who do not perform managerial tasks.

They can carry different names: bosses, employers, managers etc.

Managers of low management are bearers of authority and responsibility linked to timely and effective execution of all tasks contained in a dynamically operationalized plans.

Their attention should be paid to the successful achievement of planned or set tasks.

They are often referred to as supervisors or controllers.

It is interesting to see how managers of different hierarchical levels relate to certain management functions.

♠ APPROACH BASED ON SKILLS

♦   Katz defined skill as something that leaders can achieve and practice.

♦   This is an ability to apply their knowledge and capacities in order to achieve some objectives or goal.

♦   He found that successful management depends on three basic skills:

Technical skills

Interactive and

Skills of abstract thinking.

♦   Technical Skills.

These skills are knowledge and professionalism in the specific type of work or activity.

They include abilities in a certain area, analytical skills and abilities to use appropriate tools and methods, which involve responsibility, compliance to deadlines, control of details, steady pressure so as to realize the goal.

♦   Interactive Skills.

These skills involve knowledge and ability to work with people.

These abilities include good communication of the objective, planning and problem solving, coaching, support, feedback and motivation.

They show a positive correlation with business pleasure and effect.

They allow successful cooperation in achieving the goals of the enterprise.

♦   Skills of Abstract Thinking.

They are characterized by the ability to work with ideas and concepts.

They suppose light conversation about ideas and possible communications, success in expressing goals of the enterprise in words, ability of understanding and expressing economic principles of the company.

They are necessary for the formation of vision and strategic plan, and are most important at the highest levels of management.

They are characterized by the ability to work with ideas and concepts.

They suppose light conversation about ideas and possible communications, success in expressing goals of the enterprise in words, ability of understanding and expressing economic principles of the company.

They are necessary for the formation of vision and strategic plan, and are most important at the highest levels of management.

♠ MANAGEMENT NETWORK

♦   This model is often used in organizational training and development, and it includes concern for production and people.

♦   Concern for production determines how a leader is concerned about performing an organized task.

♦   It includes activities such as paying attention to operational decisions, new product development, process issues, workload, and sales volume.

♦   It is not limited on things, but it applies to everything that organization is trying to achieve.

♦   Concern for people tells about leader’s guidance of people who are trying to achieve the goals of the organization.

♦   It includes building loyalty and trust in the organization, promoting employees personal values, providing good working conditions and good wages structure, and promoting good social relations.

♦   In the context of authority, leader is well-intentioned dictator who behaves politely, but with the aim of achieving the goal.

♦   He/she behaves towards people as they are separated from their tasks.

♦   Opportunism is a concept based on personal progress and all the action is focused solely on this goal.

♦   It adapts and shifts to any network in order to achieve maximum benefit and personal benefit.

♦   Benefits of this approach include changing the direction of research, heuristic approach and confirmation of facts.

♦   Disadvantages are insufficient general research, especially in how it affects the efficiency.

♦   Leadership styles based on situational approach can be divided into four categories.

♦   The first style is marked by strong leadership and weak support, it is called directional style.

♦   Leader directs communication to the achievement of objective.

♦   He/she gives instructions on the nature of goals and how they need to be achieved, and then carefully control his/her employees.

♦   The second style is called training approach, characterized by very strong leadership and support.

♦   Everything is directed towards successful communication and achievement of goals, but also towards the satisfaction of socio-emotional needs of employees.

♦   This requires the connection between leader and employees by encouraging and initiating.

♦   The third style assumes supporting approach that requires strong support and weak leadership.

♦   Leader is secondarily focused on the goal, while firstly on employee’s skills according to the task that needs to be performed.

♦   This style includes listening, rewarding, searching the source data and providing feedback.

♦   Leader controls, but is also on disposition to employees.

♦   The fourth style is the style of weak support and weak leadership, it is called delegating approach.

♦   Leader provides less input data on the task and less social support, what motivates employees in the performance of tasks.

♦   He/she is less included in planning, controlling of information and clarifying the goals.

♦   Employees take responsibility for work performance in a way that they consider to be appropriate.

♠ IMPORTANCE OF EMOTIONAL INTELLIGENCE IN  MANAGEMENT

♦   It is known that emotions are motivators, i.e. demotivators of employees.

♦   If employees associate their job with positive emotions (a feeling of acceptance, appreciation, support from the surroundings), their effectiveness and the quality of their work will increase.

♦   Leader, along with other skills, needs to have well-developed emotional intelligence, which allows him/her to effectively brings the goal closer to the employees.

♦   The need for emotionally intelligent leaders is evident in organizations that do not have stable leadership and motivated employees.

♦   According to Daniel Goleman, the person who leads a group of people needs to be confident, social and able to manage social relations, as well as himself/herself.

♦   Self-awareness of leaders consists of three items necessary to fully fulfill the potential of this concept: emotional self-awareness, precise self-assessment and self-confidence.

♦   Emotional self-awareness and self-assessment include the recognition of own emotions, their actions and the determination of extent of own strength and limit.

♦   Self-confidence is the element that arises primarily out of self-esteem, i.e. out of sense of self-worth and ability.

♦   Self-aware leader talks openly and honestly about his/her wants and needs, but easily and efficiently looks at the broader picture of business.

♦   They are authentic and loyal to the goal for which they strive.

♦   They easily solve easier and harder difficulties, because of what they are prominent in the organization in which they work.

♦   Management of oneself can be described as self-control, aimed at the achievement of goals.

♦   Leader must be flexible in unfamiliar situations and in dealing with obstacles.

♦   Propensity to work and orientation towards success make leaders consistent in work, emotions and values offered to employees.

♦   Conscious manager is able to understand the emotions of others and the relationships between employees, their values and norms.

♦   They recognize specificity of political and other relations inside and outside the organization.

♦   Group of people who are working on achieving some goal face difficulties such as lack of inspiration or internal conflicts between employees.

♠ ENVIRONMENT MANAGEMENT

♦   The middle of organization represents the totality of factors inside and outside the organization that affect or may affect the objectives, structure and functioning of the organization.

♦   The performance of the surroundings, and of requirements in particular, must be respected to the maximum.

♦   That is the only way to ensure realization of the objectives of organization, which includes both its development and survival.

♦   The environment of organizations includes:

1. organizational surroundings and

2. natural surroundings

♦   Organizational surroundings of each organization consists of many components, or factors that affect or may affect its objectives, structure and functioning.

♦   Organizational surroundings consists of: internal environment, which represents the internal ambient of organization, composed of all interconnected elements or components of the organization, and external environment, which consists of all elements outside the organization that affect or may affect the objectives, structure and functioning of the organization.

♦   Management of each organization, as duty-bearer for effective and efficient business, must take into account the impact of the external environment on the objectives, structure and functioning of the organization.

♦   The important prerequisite for this is the knowledge of performance of external organizational environment and its influence on the performance of external organizational milieus.

♦   The acquisition of knowledge about the characteristics of external institutional environment is achieved through continuous monitoring and analyzing of its performance.

♦   The purpose of external environment organization analysis is the acquisition of all the knowledge relevant for current and future activities of the organization, i.e. the creation of adequate preconditions for effective and efficient business.

♦   The interaction between organization and external organizational environment needs to be not only reactive, but also proactive.

♦   This means that organization should not only respond to the demands of the external environment than to act on its performance in order to create the most favorable conditions for its positioning, i.e. for the increase of its effectiveness and efficiency.

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