Management Theories

Personnel Management is that part of management concerned with people at work and their relationships within an enterprise. The personnel function has traditionally been regarded as a primarily administrative, reactive, problem-handling function, concerned with hiring and firing, employee welfare and industrial relations. Personnel management developed from the appointment of industrial welfare workers by some Victorian employers, with the aim of improving the living and working conditions of employees. Even at this early stage, the motivation for this service was acknowledged to be both philanthropic and business centered.

Labour shortages associated with the world wars fostered both a science of productivity and an increase in the power of organized labour. Management theory began with scientific management and was supposedly universalised by classical principals. Each developed a portrait of the employment relationship. With the human relations school, the importance of socio-psychological or human factors to organisational effectiveness was more fully recognised.

Frederick W Taylor pioneered the scientific management movement. In this classic theory, human emotion is ignored. Here are the four principles of scientific management. There are many managers today who would find nothing exceptional about Taylor’s words, which also include a reference to leadership, something he sees as beyond scientific management. His results were incredible. For example, he achieved productivity increase of a group of workers loading pig iron from 12.5 tons per day to 47 tons. He reduced the number of yard labourers at Bethlehem Steel from 600 to 140 with no drop in output.

At the time he was working, his basic assumptions about people were correct. Workers did not know the best way to do jobs, were insufficiently educated or trained to discover it themselves and were willing to accept direction to get more money. Today, in many countries, people are much more educated, far less willing to take direction and have many more alternatives both of life style and learning opportunity. Acute labour shortages during and following both World Wars created an urgent need to increase productivity, and Western governments encouraged the systematic study of the employment relationship and the human aspects of industrial work, which underpinned the personnel management function.

Henri Fayol (1841 – 1925), a French mining engineer who took a mining organisation from near collapse to great success, is best known for his analysis of the five key tasks of management Plan, Organise, Direct, Co-ordinate, Control. He put forward and popularised the concept of universal, rational principles according to which, organisations could be structured and managed: this came to be known as ‘classical organisation theory’. He also spoke about authority and responsibility, organisational objectives, chain of command among many other topics some of which sound very modern today, despite the fact that his work was mainly in the 1920’s (published in 1949.)

Fayol introduced the notion on one boss and the chain of command. Organisations in the 1920’s were somewhat simpler than they are today. In fact, the earliest form of matrix management is said to stem from the US government needs in the 1960’s and the need to keep tabs on the progress of orders for defense material. Dealing with all the people in a chain of command, in all parts of a manufacturing organisation, to see how things were going was clearly impossible. So the US government required each contractor to appoint a project manager, responsible for ensuring that everything was progressing to plan. In many ways, his logical and formal manner is still found within many professional service firms – such as accounting or law firms.

Governmental influence on workforce and industrial relations continued, alongside general social reforms in education and healthcare, until the mid 1970’s when the idea that governments could and should maintain full employment finally gave way before the spectre of inflation and the rise of free market economies. The UK government would only get involved in employee / employer relationships in the area of a trade union reform. Nevertheless, the latter half of the 20th century saw a period of intense legislation in all areas of employment; health and safety, employment protection and equal opportunities.

Growing complexity and accelerating change led to the development of less prescriptive models of management, including the systems and contingency approaches, which began to integrate human relations more directly with strategic business issues. At the same time, personnel management came to require bureaucratic controls and a specialised body of knowledge. Read about paradigm shift in human resource management

The human relations movement stems from the work of Elton Mayo and his Hawthorne Studies, and argues that people are not logical decision makers but have needs for creativity, support, recognition and self-affirmation. The movement is in direct opposition to what is known as ‘Scientific Management’, first put forward by Frederick W Taylor, which concentrates upon the task and not the person. Taylor’s work has been very largely misunderstood and even demonised. This is a pity because there are situations in which his approach, like the theory of bureaucracy, is very valuable.

Unfortunately, the human relations movement became the accepted dogma of the 60’s and 70’s. Today there are signs that task analysis (scientific management); system management (bureaucracy) and empowerment (human relations) are beginning to be seen as three equally useful approaches – dependent upon the situation. Mayo is known as the main advocate of the human relations movement in management. The Australian is most famous for what is generally referred to as the Hawthorne Experiment of the 1920’s.

Studying changes in productivity of a group of workers at the Hawthorne Works of the Western Electric Company in Illinois, USA, he found, to his own surprise, that every change that he made to lighting, processes, work breaks (up or down) resulted in an increase in productivity. The conclusion drawn was that involving people in ideas and changes, improves morale and productivity. The Hawthorne experiment started with six women working in the relay assembly area and the results forced Mayo and his team to conclude (after a great deal of puzzlement) that the increase in productivity was the result, not of experimental changes in incentives or working conditions but of the changed social situation of the workers. The second stage of the Hawthorne studies involved interviewing 21,000 employees over three years.

The group cited that their first action would be to organize a group meeting in the week, before the next company meeting, a good pro-active decision. It was observed that no leadership took place in the group with everyone inputting questions that the group could not answer. The Part D students were then able to answer some questions. In the meeting the group did not discuss project strategy, but discussed sensor systems, there was no clear sensory system decided with A. Shabbier wanting to research into sonar systems and A. Mohammed continuing research into IR sensors and QUIT sensors. Over the next two weeks the group began to realize their task and formed their project structure based on the diagram. The strategy overall was carried out well throughout the group, as they became more aware of mistakes that may have occurred without the plan and check stages. Once the strategy was in place, the Plan section was implemented. Within the plan stage the group took into account the following factors for equipment choice: Cost, Complexity and Acceptability.

An example of this method was the choice of sensors, the group decided to use IR sensors, as they were cheaper than sonar systems, they were the east complex of all the systems and achieved the groups’ requirements. This decision-making process was very powerful, as it gave the groups specific criteria that they had to uphold and it prevented members from verging off-topic, which they were prone to doing.

Their failure resulted in a leaderless structure to the group, immediately disadvantaging the group, as there was no one to make key decisions. This can be seen by tensions formed in the group with regards to sub-systems. The group decided to create sub-systems and allocate a person per sub-system, though this was a sensible systematic approach (though it could have been improved by using at a job design chart. Breaking down the sub-systems affected the group with some tasks much simpler and straightforward than others. This process led to J. Peters and A. Mohammed wanting the same roles.

The decision was made by the rest of the group that A. Mohammed would be better suited to the desired role. J. Peters had little contact with the group up until that point and this showed in the groups’ decision. J. Peters was left with the difficult task of producing the interim report for the group. This was a poor decision by the group as it meant that they issue also arose from the sub-system approach, where during one week; more than one member of the group was absent. This led to a halt in progress of the project in the areas where team members were away, as absent team members knew their role, but the other team members did not.

This should have been factored into the projects’ risk contingency plan; however this was yet to be created by J. Peters. This failure resulted in a week without progress and certainly created tension not only thin the group, but between the group and supervisor as well. A better strategy would have been to split the design into sub-systems, but within each sub-system, tasks could be created and given to members of the group, allowing more than one group member to have knowledge of each sub-system to ensure progress continues.

What sequence? Who else? How to interface with the facilities? Environmental conditions? How much autonomy? Skills? Where to locate? Tasks? After the fourth week it was clear that A. Shabbier had taken charge of the project, which could be a positive factor of not immediately selecting a group leader, as it allowed time for the more dedicated person the project to take control, effectively becoming the natural leader.

His indecision however, led to a long delay within an exercise the group carried out. A requirement that the group made was to increase the speed of the robot. The group originally removed the wheel and replaced it with a larger wheel increasing the speed, a good idea; however, their plan did not consider that they were not allowed to remove parts from the Boot. Therefore the approach taken by the group was to use their project PICA strategy and they were able to modify the wheel by creating an extension to use the original wheel as a shaft for a larger wheel.

This shows good initiative from the group, however the issue should not and would limitation control. The group would have been better to choose a product design strategy, where they generated a concept, which they could feedback to the supervisor in a company meeting, who could then evaluate the groups’ design, making sure it is suitable for the set requirements. This would make sure the design fits the requirements and if not, it could be improved until it did. The groups’ strategy for their hardware sub-system had certain requirements, one of which included a LED display.

The display was a creative concept as many ideas in the group were; however there was a delay in delivery (due to the University) which the group had not planned for. This delay was unplanned for with no risk contingency plan in place. This therefore meant the group had to alter their Giant chart to their needs at that time. This was poorly planned, as a better Giant chart would have had extra time allocated for work that could not be completed at the specific time.

Identify the founding theorists of management and then discuss the major schools of thought under which their theories can be classified. The founding theorists of management are Frederick Taylor, Max Weber, Henri Fayol and Mary Parker Follett. Taylor’s theory is classified under Scientific Management, and he was known as “the father of scientific management”. Scientific management can be defined as the scientific determination of changes in management practices as a means improving labour productivity.

Taylor’s theory focuses on efficiency in the organization, improving the productivity of manual workers, and it demonstrates how providing workers with an incentive to perform can increase productivity. Taylor’s theory suggested four principles of scientific management. The first principle involves developing a science for each element of an individual’s work to replace the old rule of thumb methods. The second principle involves scientifically selecting, training and developing workers.

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The third principle involves developing cooperation between workers and management to ensure that work is done in accordance with the scientifically devised procedures. The fourth and final principle of scientific management involves the equal division of work and responsibility among workers. While scientific management was praised for improving productivity, it was also criticized, because it ignored the individual differences among workers, and could not see that the most efficient way of working for one person may differ from that of another person.

The application of scientific management is seen in today’s organizations when the best qualified applicants are hired for a job. Max Weber developed a theory of authority structures theory is classified under Bureaucratic Management, and it may be described as a formal system of organization based on clearly defined hierarchal levels and roles in order to maintain efficiency and effectiveness. Weber believed that organizations should be managed on an impersonal, rational basis, and that this type of organization would be more efficient and adaptable to change because stability is related to formal structure and positions rather than to a articular person who may leave or die. Weber identified six elements of bureaucratic management. This first element involves the division of labour with clear definitions of authority and responsibility. The second element involves the organization of positions in a hierarchy of authority, where each position is under the authority of a higher one, and subordinates follow the orders of their superiors. The third element involves the selection and promotion of personnel based on technical qualifications, or training and experience.

The fourth element involves administrative acts and decisions which are governed by rules, and are recorded in permanent files to provide the organization with memory and continuity over time. The fifth element states that means of production or administration belong to the office, and that personal property is separate from office property. The sixth and final element of bureaucratic management states that rules are impersonal and applied to all employees. It also states that managers are subject to rules and procedures that will ensure predictable and reliable behavior.

Bureaucratic procedures provide a standard way of dealing with employees. Everyone receives equal treatment and knows what the rules are, and this has enabled many organizations to be very efficient. The application of bureaucratic management is seen in today’s organizations with the Employee Code of Conduct. Henri Fayol’s theory can be classified under General Administrative Theory, and focuses on the one best way to run the organization. The general administrative theory focuses on how the entire organization should be organized, and the practices an effective manager should follow.

Fayol proposed a universal set of management functions, which are planning, organizing, commanding, coordinating and controlling. Planning, involves anticipating the future and acting on it. Organizing requires developing the institution’s material and human resources. Commanding requires keeping the organization’s actions and processes running. Coordinating involves aligning and harmonizing the efforts of organizational members. The final management function controlling, involves performing the first four functions according o the appropriate rules and procedures of the organization. Fayol developed theories of what he believed constituted good management practices, known as the fourteen principles of management. The fourteen principles are; specialization of labour, authority, discipline, unity of command, unity of direction, subordination of individual interests, remuneration, centralization, scalar chain, order, equity, stability of staff, initiative, and spirit de corps, which means harmony and cohesion among personnel.

Specialization of labour is where managerial and technical work is amenable to specialization to produce more and better work with the same amount of effort. Authority refers to the right of superiors to give orders and to expect them to be followed. Discipline is where the members in any organization must respect the rules and agreements governing the organization. Unity of command is where each subordinate receives orders from one superior only. Unity of direction means similar activities in the organization should be grouped together under one manager.

Subordination of individual interests means, the concerns of the organization should take precedence over the concerns of the individual. Remuneration refers to compensation for work done, and it should be fair to both the employee and the employer. Centralization refers to the degree to which decision making is concentrated at the top levels of the organization. Scalar chain refers to the chain of authority which extends from the top to the bottom levels of the organization.

Order implies that all material and human resources within the organization have a prescribed place to be. Material resources must remain in the right place at the right time, and people should be in the jobs or positions they are suited to. Equity implies that everyone within the organization should be treated equally. Stability of staff implies that there should be a low employee turnover rate in order to facilitate the efficient functioning of the organization.

Initiative means that subordinates should be given freedom to share their ideas and carry out their plans. Esprit de corps means creating team spirit through the use of verbal communication, to promote harmony and cohesion among personnel. Fayol also stressed the role of administrative management and stated that all activities that occur in business organizations could be divided into six main groups, which are, technical, commercial, financial, security, accounting and managerial.

For example, production and manufacturing activities can be grouped under technical; buying, selling and exchange activities can be grouped under commercial; activities obtaining and using capital can be grouped under finance; protection of property and persons can be grouped under security; balance sheet, stocktaking, statistics and costing activities can be grouped under accounting and; planning, organizing, commanding, coordinating and controlling activities can be grouped under managerial.

Fayol then concluded that the six groups of activities are interdependent and that it is the role of management to ensure that all six activities work smoothly to achieve the goals of an organization. Mary Parker Follett was a major contributor to the administrative approach to management. However, she was also an advocate of a more humanistic perspective to management, which highlighted the importance of understanding human behaviors, needs and attitudes in the workplace, as well as social interactions and group processes.

She emphasized worker participation and the importance of goals that cannot be reached by a single party for reducing conflicts in organizations. Follett explained that managerial dominance and compromising only produced temporary adjustments. She proposed a process in which parties involved in conflict would interact despite the existing facts, and allow a new solution to come into view that none of the conflicting parties had considered. She called this approach to resolving conflict an integrating process.

Mary Parker Follett’s approach to leadership stressed the importance of people, rather than engineering techniques, and she addressed issues such as ethics, power, and how to lead in a way that encourages employees to give their best, as well as the concepts of delegation of power and authority to employees, rather than controlling them. Although Frederick Taylor, Max Weber, Henri Fayol and Mary Parker Follett are not the only theorists to make contributions to the schools of thought of management, they have all made significant contributions to management, many of which have been implemented and even modified, in today’s organizations.

ABSTRACT Management is the most important part of any organization. No organization can achieve its objectives without proper management. So management is considered the hub of any organization. As society continuously relied on group effort, and as many organized groups have become large, the task of managers has been increasing in importance and complexity. To meet the challenges like competition, efficient and economical uses of sources and maximum output, knowledge of management and theories of management is basic requirement.

Henceforth, managerial theory has become crucial in the way managers manage complex organizations. This article will provide the basic information of main management theories and how they have developed. It also addresses the management objectives, functions, goals, and essentiality as well as the requirement skills of a Manger. Relating to my current company – AON Vietnam, member of AON Corporation, the article point out which theory of management fit best with the style of management in AON Corporation, one of biggest insurance brokers worldwide and what a Manager at AON should do. Topic 1 & 2) CONTENTS I. MAIN MANAGEMENT THEORIES 1. Definition of Management According to Drucker (1974) Management is “the activity of getting things done with the help of others peoples and resources”. It means that management is a process of accomplishing work with the help of other people. According to Weijrich and Koontz (1993) “Management is process of planning, leading, organizing and controlling people within a group in order to achieve goals. It is also the guidance and control of action required to execute a program.

It indicates that there should be definite plan/program for affective management (Shied, 2010). On the basis of these definitions it can be concluded that management is a process that includes strategic planning, setting objectives, managing resources, developing the human and financial assets needed to achieve objectives and measuring results. It also includes recording facts and information for later use upon requirement. 2. Management Theories of management tend to account for and help interpret the rapidly changing nature of today’s organizational environments.

Several important management theories which are broadly classified as follows: 1. The Scientific Management School. 2. The Classical Organizational Theory School. 3. The Behavioural School. 4. The Management Science School. 5. Recent developments in Management Theory comprising works such as Systems Approach, Situational or Contingency theory, Chaos theory, and Team Building approach. This discussion will provide a general description of these management theories, how they have developed and the successes that they achieved. A Timeline Overview of Key Management theories pic] a. The Scientific Management School The first management theory is what is popularly referred to as Frederick Taylor’s Scientific Management. Frederick Taylor (1856 – 1915) started the era of modern management. Taylor consistently sought to overthrow management “by rule of thumb” and replace it with actual timed observations leading to “the one best” practice. “Taylorism” involved breaking down the components of manual tasks in manufacturing environments, timing each movement (‘time and motion’ studies) so that there could be a proven best way to perform each task.

Thus employees could be trained to be ‘first class’ within their job. This type of management was particularly relevant to performance drives e. g ‘Action On’ projects. It has to be acknowledged that from an economic standpoint, Taylorism was an extreme success. Application of his methods yielded significant improvements in productivity. For example, improvements such as his shovel work at Bethlehem Works, which reduced the workers needed to shovel from 500 to 140. Henceforth, Taylor proposed four underlying principles of management: First, there is need to develop a ‘science of work’ to replace old rule-of-thumb methods: pay and other rewards linked to achievement of ‘optimum goals’ – measures of work performance and output; failure to achieve these would in contrast result in loss of earnings. – Second, workers to be ‘scientifically’ selected and developed: training each to be ‘first-class’ at some specific task. – Third the ‘science of work’ to be brought together with scientifically selected and trained people to achieve the best results. Finally, work and responsibility to be divided equally between workers and management cooperating together in close interdependence. This was a rigid system where every task became discrete and specialized. However, many critics, both historical and contemporary, have pointed out that Taylor’s theories tend to “dehumanize” the workers. Therefore, in summary, while the scientific management technique has been employed to increase productivity and efficiency both in private and public services, it has also had the disadvantages of ignoring many of the human aspects of employment.

This led to the creation of boring repetitive jobs with the introduction of systems for tight control and the alienation of shop floor employees from their managers. b. Classical Organizational Theory School In this category of management theory are the works of Henri Fayol’s administrative theory and Max Weber’s bureaucratic theory. Administrative Theory Henri Fayol’s administrative theory mainly focuses on the personal duties of management at a much more granular level. Fayol believed that management had five principle roles: • Forecasting and planning. • Organizing. • Commanding Co-ordinating • Controlling. Forecasting and planning was the act of anticipating the future and acting accordingly. Organization was the development of the institution’s resources, both material and human. Commanding was keeping the institution’s actions and processes running. Co-ordination was the alignment and harmonization of the group’s efforts. Finally, control meant that the above activities were performed in accordance with appropriate rules and procedures. Fayol also developed fourteen principles of administration to go along with management’s five primary roles.

These principles are: specialization/division of labor, authority with responsibility, discipline, unity of command, unity of direction, subordination of individual interest to the general interest, remuneration of staff, centralization, scalar chain/line of authority, order, equity, stability of tenure, initiative, and esprit de corps. Fayol clearly believed personal effort and team dynamics were part of an “ideal” organization. Fayol’s five principle roles of management are still actively practiced today. The concept of giving appropriate authority with responsibility is also widely commented on and is well practiced.

Unfortunately, his principles of “unity of command” and “unity of direction” are consistently violated in “matrix management”, the structure of choice for many of today’s companies. Bureaucratic Theory Max Weber (1864 – 1924) postulated that western civilization was shifting from “wertrational” (or value oriented) thinking, affective action (action derived from emotions), and traditional action (action derived from past precedent) to “zweckational” (or technocratic) thinking. He believed that civilization was changing to seek technically optimal results at the expense of emotional or humanistic content.

Through analyses of organizations, Weber identified three basic types of legitimate authority: – Traditional authority: where acceptance of those in authority arose from tradition and custom. – Charismatic authority: where acceptance arises from loyalty to, and confidence in, the personal qualities of the ruler. – Rational-legal authority: where acceptance arises out of the office, or position, of the person in authority as bounded by the rules and procedures of the organization. It is the rational-legal authority form that exists in most organizations today and this is the form to which Weber ascribed the term ‘bureaucracy’.

The main features of bureaucracy according to Weber were: • A continuous organization or functions bounded by rules. • That individual functioned within the limits of the specialization of the work, the degree of authority allocated and the rules governing the exercise of authority. • A hierarchical structure of offices. • Appointment to offices made on the grounds of technical competence only. • The separation of officials from the ownership of the organization. • The authority was vested in the official positions and not in the personalities that held these posts.

Rules, decisions and actions were formulated and recorded in writing. It is not coincidence that Weber’s writings were at a time of the major industrial revolutions and the growth of large complex organizations out of the cottage industries and/or entrepreneurial businesses. c. Behavioural School The key scholar under this category is Elton Mayo. The origin of behavioralism is the human relations movement that was a result of the Hawthorne Works Experiment that started in the early 1920s. Elton Mayo and his associates’ experiments disproved Taylor’s beliefs that science dictated hat the highest productivity was found in ‘the one best way’ and that way could be obtained by controlled experiment. The Hawthorne studies attempted to determine the effects of lighting on worker productivity. When these experiments showed no clear correlation between light level and productivity the experiments then started looking at other factors. These factors that were considered when Mayo was working with a group of women included no rest breaks, no free more hours in the work-day/work-week or fewer hours in the workday/work-week.

With each of these changes, productivity went up. When the women were put back to their original hours and conditions, they set a productivity record. These results showed that the group dynamics and social makeup of an organization were an important force either for or against higher productivity. This outcome caused the call for greater participation for the workers, greater trust and openness in the working environment, and a greater attention to teams and groups in the work place.

Finally, while Taylor’s impacts were the establishment of the industrial engineering, quality control and personnel departments, the human relations movement’s greatest impact came in what the organization’s leadership and personnel department were doing. The seemingly new concepts of “group dynamics”, “teamwork”, and organizational “social systems”, all stem from Mayo’s work in the mid-1920s. d. Management Science Theories Douglas McGregor (1906-1964) postulated management ideas as contained in “Theory X” and “Theory Y”.

Using human behaviour research, he noted that the way an organization runs depends on the beliefs of its managers. “Theory X” gives a negative view of human behaviour and management that he considered to have dominated management theory from Fayol onwards – especially Taylorism. It also assumes that most people are basically immature, need direction and control, and are incapable of taking responsibility. They are viewed as lazy, dislike work and need a mixture of financial inducements and threat of loss of their job to make them work (‘carrot and stick’ mentality). Theory Y”, the opposite of “Theory X”, argues that people want to fulfil themselves by seeking self-respect, self-development, and self-fulfilment at work as in life in general. The six basic assumptions for ‘Theory Y’ are: work is as natural as play or rest – the average human being does not inherently dislike work, whether work is a source of pleasure or a punishment (to be avoided) depends on nature of the work and its management. Second, effort at work need not depend on threat of punishment – if committed to objectives then self-direction and self-control rather than external controls.

Third, commitment to objectives is a function of the rewards associated with their achievement. Satisfaction of ego and self-actualization needs can be directed towards the objectives of the organization. Fourth, the average human being learns, under proper conditions, not only to accept but to seek responsibility. Fifth, high degrees of imagination, ingenuity and creativity are not restricted to a narrow group but are widely distributed in the population. Lastly, under the conditions of modern industrial life, the intellectual potentials of the average human being are being only partly utilized. . Recent Developments in Management Theory Under this category of theory are the Systems Approach, Situational or Contingency theory, Chaos theory, and Team Building theory. The systems theory has had a significant effect on management science and understanding organizations. A system is a collection of part unified to accomplish an overall goal. If one part of the system is removed, the nature of the system is changed as well. A system can be looked at as having inputs (e. g. , resources such as raw materials, money, technologies, and people), processes (e. g. planning, organizing, motivating, and controlling), outputs (products or services) and outcomes (e. g. , enhanced quality of life or productivity for customers/clients, productivity). Systems share feedback among each of these four aspects of the system. The Chaos theory is advocated by Tom Peters (1942). Chaos theorists suggest that systems naturally go to more complexity, and as they do so, they become more volatile and must, therefore, expend more energy to maintain that complexity. As they expend more energy, they seek more structure to maintain stability.

This trend continues until the system splits, combines with another complex system or falls apart entirely. It will need an effective manager for the latter worst scenario not to happen. Team Building approach or theory emphasizes quality circles, best practices, and continuous improvement. It is a theory that mainly hinges on reliance on teamwork. It also emphasizes flattening of management pyramid, and reducing the levels of hierarchy. Finally, it is all about consensus management – i. e. , involving more people at all levels in decision-making. 3. Management theory applied to AON II. WHAT A MANAGER DOES

Managing, like all other practices – whether medicine, music composition, engineering, accountancy, or even baseball – is an art; it is know-how. It is doing things in the light of the realities of a situation. Managers just don’t go out and perform their responsibilities. A good manager should discover how to master 05 basic functions: planning, organizing, staffing, leading and controlling. • Planning: This step involves mapping out exactly how to achieve a particular goal. For example, that the organization’s goal is to improve company sales. The manager first needs to decide which steps are necessary to accomplish that goal.

These steps may include increasing advertising, inventory, and sales staff. These necessary steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales. • Organizing: After a plan is in place, a manager needs to organize his team and materials according to his plan. Assigning work and granting authority are two important elements of organizing. • Staffing: After a manager discerns his area’s needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees.

A manager in a large organization often works with the company’s human resources department to accomplish this goal. • Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem solve with employees. • Controlling: After the other elements are in place, a manager’s job is not finished. He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area’s plans remain on track.

All managers at all levels of every organization perform these functions, but the amount of time a manager spends on each one depends on both the level of management and the specific organization. Roles performed by managers In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles that a manager fills. These roles fall into three categories: • Interpersonal: This role involves human interaction. • Informational: This role involves the sharing and analyzing of information. • Decisional: This role involves decision making.

The below table contains a more in-depth look at each category of roles that help managers carry out all five functions described in the preceding “Functions of Managers” section. Mintzberg’s Set of Ten Roles | | |Category | |Role | |Activity | | |Informational | |Monitor | |Seek and receive information; scan periodicals and reports; maintain personal contact with stakeholders. | | | | | |Disseminator | |Forward information to organization members via memos, reports, and phone calls. | | | | |Spokesperson | |Transmit information to outsiders via reports, memos, and speeches. | | | |Interpersonal | |Figurehead | |Perform ceremonial and symbolic duties, such as greeting visitors and signing legal documents. | | | | |Leader | |Direct and motivate subordinates; counsel and communicate with subordinates. | | | | |Liaison | |Maintain information links both inside and outside organization via mail, phone calls, and meetings. | | |Decisional | |Entrepreneur | |Initiate improvement projects; identify new ideas and delegate idea responsibility to thers. | | | | | |Disturbance handler | |Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environments. | | | | |Resource allocator | |Decide who gets resources; prepare budgets; set schedules and determine priorities. | | | | |Negotiator | |Represent department during negotiations of union contracts, sales, purchases, and budgets. | | | Skills needed by managers Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired performance, are required to help other employees become more productive. These skills fall under the following categories: Technical: This skill requires the ability to use a special proficiency or expertise to perform particular tasks. Accountants, engineers, market researchers, and computer scientists, as examples, possess technical skills. Managers acquire these skills initially through formal education and then further develop them through training and job experience. Technical skills are most important at lower levels of management. • Human: This skill demonstrates the ability to work well in cooperation with others. Human skills emerge in the workplace as a spirit of trust, enthusiasm, and genuine involvement in interpersonal relationships. A anager with good human skills has a high degree of self-awareness and a capacity to understand or empathize with the feelings of others. Some managers are naturally born with great human skills, while others improve their skills through classes or experience. No matter how human skills are acquired, they’re critical for all managers because of the highly interpersonal nature of managerial work. • Conceptual: This skill calls for the ability to think analytically. Analytical skills enable managers to break down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one problem for others.

As managers assume ever-higher responsibilities in organizations, they must deal with more ambiguous problems that have long-term consequences. Again, managers may acquire these skills initially through formal education and then further develop them by training and job experience. The higher the management level, the more important conceptual skills become. • Designing skill is the ability to solve problems in ways that will benefit the enterprise. To be effective, particularly at upper organizational levels, managers must be able to do more than see a problem.

In addition, they must have the skill of a good design engineer in working out a practical solution to a problem. Managers must also have that valuable skill of being able to design a workable solution to the problem in the light of the realities they face. It has, however, got to be mentioned that the relative importance of these skills may differ at various levels in the organization hierarchy. Although all four categories contain skills essential for managers, their relative importance tends to vary by level of managerial responsibility.