2011-05-03
1
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
Basics of Management
Classes for Bachelor Studies in Finance
J
anusz Marek Lichtarski, PhD.
E-mail:
janusz.lichtarski@ue.wroc.pl
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Management can be seen as:
art – means that management require special characteristics, skills and
attitudes. Manager as an artist sometimes should base on his intuition and
talent
practice – means that it is practical activity - it was long before became a
science. It also means that the more experience you have the better manager
you are
science – means that there are various scientific theories, concepts, methods
and tools which help managers in their day to day activity. Those theories are
based on numerous empirical studies and findings
2011-05-03
2
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
What is Organization?
Organization is a group of people, who collaborate in coordinated way to achieve
established set of goals
R.W. Griffin
Organization is a collectivity with a relatively identifiable boundaries, a normative
order (rules), ranks of authority (hierarchy), communication systems and
membership coordination systems (procedures); this collectivity exists on a
relatively continuous basis, exists in an environment, and engages in activities
that are usually related to a set of goals; the activities have outcomes for
organizational members, for organization itself, and for society
R.H. Hall
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Model of Organization
STRUCTURE
STRUCTURE
SYSTEMS
SYSTEMS
STAFF
STAFF
SHARED
VALUES
SHARED
VALUES
STYLE
STYLE
STRATEGY
STRATEGY
SKILLS
SKILLS
STRUCTURE
SYSTEMS
STAFF
SHARED
VALUES
STYLE
STRATEGY
SKILLS
The manner in which
organization components –
its departments, divisions,
boards, committees, or any
other subunits – are designed
and interrelated
Complex tools which
support production
and management
systems, e.g. Quality
Management System,
motivation system,
control system etc.
All people in organization
(managers and workers) with
their knowledge, skills and
attitudes
A way of managerial behavior
Relationship between
manager and subordinates
Ways of bahaviour, norms
and values shared by
organizational members
A long-therm plan
of organization’s
activity
Organizational skills
and knowledge –
unique technology,
know how, patents,
etc.
2011-05-03
3
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Organization as an Open System
INPUTS
OUTPUTS
TRANSFORMATION
PROCESS
SYSTEM
(ORGANIZATION)
ENVIRONMENT
The
main
inputs
in
business
organizations are materials, labor
(people), money and knowledge
Transformation process means
change of raw materials into the
final
products
using
proper
methods and tools
The outputs of business
organizations
are
final
products or services
Organizational environment can be defined as all elements which do not belong to
interior of organization (are outside) but have a huge impact on organization activities
and performance
R.J. Aldag, T.M. Stearns
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Organizational Environment (PEST)
ORGANIZATION
SUPPLIERS
COMPETITORS
CUSTOMERS
OTHER
INSTITUTIONS
FINANCIAL
INSTITUTIONS
GOVERMENT
AGENCIES
CLOSER ENVIRONMENT
micro
FURTHER
ENVIRONMENT
macro
ECONOMIC
SITUATION
SOCIOCULTURAL
LEGAL AND
POLITICAL
TECHNOLOGICAL
2011-05-03
4
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
What is Management?
The process of planning, organizing, directing, and controlling of individuals
activities and other organizational resources focused on achieving common goals
R.W. Griffin
Planning
Defining goals and
establishing
action plans
Controlling
Monitoring activities
to ensure that they
are achieving
results
Leading
Guiding and
motivating all
involved parties
Organizing
Determining what
needs to be done, in
what order, and by
whom
Effective
Management
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Who Are Managers?
Managers are individuals who are responsible for completing tasks that require
the supervision of other members or organizational resources
R.J. Aldag, T.M. Stearns
By managers we mean all individuals who:
are responsible for planning, organizing, directing, and controlling others’
activities,
lead other organizational members,
make decisions in organization.
2011-05-03
5
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Manager vs Leader
Managers
Versus Leaders
May Have
Managerial
Authority and
Influence Others
Appointed and
Have Formal
Authority
Managers
Leaders
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Levels of Management
Top
Managers
Top
Managers
Middle Managers
Middle Managers
First-line Managers
First-line Managers
Employees or Members
Employees or Members
2011-05-03
6
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Levels of Management
First-line managers – situated at the lowest level in organizational hierarchy.
They deal with day-to-day tasks, correct current errors, and solve problems
directly related with production of goods or services.
Middle managers – responsible for implementing policies and plans within
functional units or divisions. They fulfill more various, multifunctional tasks,
and have wider range of authority.
Top managers – situated on the top in organizational hierarchy have large.
They formulate organizational vision, mission and strategic goals, and are
responsible for overall performance.
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Distribution of Manager’s Time
2011-05-03
7
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Managerial Roles
Mintzberg’s
Managerial Roles
Interpersonal
Decisional
Informational
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Mintzberg Managerial Roles
Interpersonal Roles
Figurehead.
Performs symbolic duties: bestows honors, make speeches, etc.
Leader.
Hire, train, promote and motivate subordinates.
Contact Maker (Liason).
Maintains relationships within organization and with environment
Informational Roles
Monitor.
Observes and reviews. Collects data and information.
Disseminator.
Transmit information and judgments about environment into organization.
Spokesman.
Speaks for organization. Lobbies and defends. Engages in Public Relations.
Decisional Roles
Entrepreneur.
Initiates changes and introduces innovations. Sets goals and make plans.
Disturbance Handler.
Handles conflicts and complaints. Counters actions of competitors.
Resource Allocator.
Approve budgets, schedules, and promotions. Sets priorities.
Negotiator.
Works out agreements with customers, suppliers, and other organizations.
2011-05-03
8
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
Managerial Profile
PERSONAL
CHARACTERISTICS
PERSONAL
CHARACTERISTICS
HARD SKILLS
HARD SKILLS
KNOWLEDGE
KNOWLEDGE
THE IDEAL
MANAGER
THE IDEAL
MANAGER
SOFT SKILLS
SOFT SKILLS
WORK
EXPERIENCE
WORK
EXPERIENCE
ATTITUDE
ATTITUDE
PERSONAL
CHARACTERISTICS
HARD SKILLS
KNOWLEDGE
THE IDEAL
MANAGER
SOFT SKILLS
WORK
EXPERIENCE
ATTITUDE
BASICS OF MANAGEMENT
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
Managerial Skills
Organizational
level
Skills
Top management
conceptual
human
technical
Middle management
conceptual
human
technical
First-line
management
conceptual
human
technical
BASICS OF MANAGEMENT
2011-05-03
9
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Defining Teams
Two or more interacting and interdependent individuals who cooperate to
achieve a set of goals
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Teams vs Groups
Collective
performance
Share information
Individual
and mutual
Positive
Neutral
Complementary
Individual
Random and varied
Accountability
Synergy
Goal
Skills
2011-05-03
10
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
BASICS OF MANAGEMENT
Effective Team
Effective Team
Clear Goals
Relevant
Skills
Mutual Trust
Good
Communication
Unified
Commitment
Negotiating
Skills
Internal
Support
Effective
Leadership
External
Support
Projekt współfinansowany z Unii Europejskiej
w ramach Europejskiego Funduszu Społecznego
Team Role
Contributions
Strengths
Allowable Weaknesses
PLANT
Creative, imaginative,
unorthodox. Solves difficult
problems.
Genius, imagination, intellect,
knowledge
Up in the clouds. Ignores
incidentals. Too pre-occupied to
communicate effectively.
COORDINATOR
Mature, confident, a good
chairperson. Clarifies goals,
promotes decision-making,
delegates well.
Broad outlook, respect,
professionalism
Can often be seen as
manipulative.
MONITOR
EVALUATOR
Sober, strategic and discerning.
Sees all options. Judges
accurately.
Judgement, discretion , hard-
headedness
Lacks drive and ability to inspire
others. Not creative.
IMPLEMENTER
Disciplined, reliable,
conservative and efficient.
Turns ideas into practical
actions.
Organising ability, hard
working, self-discipline
Somewhat inflexible. Slow to
respond to new possibilities.
BASICS OF MANAGEMENT
2011-05-03
11
Team Role
Contributions
Strengths
Allowable Weaknesses
COMPLETER
FINISHER
Painstaking, anxious. Searches
out errors and omissions.
Delivers on time.
Reliable, working on the
highets standards
Inclined to worry unduly.
Reluctant to delegate.
RESOURCE
INVESTIGATOR
Extrovert, enthusiastic,
Explores opportunities.
Vital, communicative, curious
Over - optimistic. Loses interest
once initial enthusiasm has
passed.
SHAPER
Challenging, thrives on
pressure. Motivation
Dynamic, outgoing, effective
Prone to provocation. Offends
people's feelings. Nervous.
TEAMWORKER
Socially oriented, mild, and
diplomatic. Listens and builds,
Supportive, integrative,
sensitive
Indecisive in crunch situations.
SPECIALIST
Single-minded, self-starting.
Provides knowledge and skills
in rare supply.
Knowledge, technical skills,
dedicated
Contributes only on a narrow
front. Dwells on technicalities.
BASICS OF MANAGEMENT