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Principles of management
Definitions and concepts
Principles of management
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Research from Gallup, Inc. (an American
analytics and advisory company based in
Washington, D.C) found that organizations
choose the wrong manager 82% of the time.
It’s one of the most important decisions a
company can make, yet 8 out of 10 times
everyone gets it wrong.
Why?
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It’s easy to assume that those 82% of
managers just weren’t good enough to be in
a management position.
But
, a four-year study conducted by
Leadership IQ found that more often, the case
is that the manager’s style is
inappropriate for their particular
culture.
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Only 30% of US employees and 13% of
employees worldwide are engaged at work.
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This can be directly attributed to employees’ managers.
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When your team isn’t engaged, that results in:
Lower productivity
Poorer quality work
Dramatically increased turnover
More issues with theft and absenteeism
Reduced profitability
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 The bottom line is that the wrong management
style de-motivates employees, kills productivity, and
trains employees to disengage or leave. Hurting the
entire organization.
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Management is the attainment of organizational
goals in an effective and efficient manner through
planning, organizing, leading, and controlling
organizational resources
◦ Managers get things done through the organization
◦ Create right systems and environment
◦ Organizations need good managers
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In contrast to the traditional, in the contemporary
view, top managers support and serve other
managers and employees (through a process
called empowerment), just as the organization
ultimately exists to serve its customers and
clients,
Empowerment is the process of enabling or
authorizing an individual to think, behave, take
action, and control work and decision making in
self-directed way.
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Efficiency refers to doing things in a right manner.
Scientifically, it is defined as the output to input ratio and
focuses on getting the maximum output with minimum
resources.
Effectiveness, on the other hand, refers to doing the right
things. It constantly measures if the actual output meets
the desired output.
Since efficiency is all about focusing on the process,
importance is given to the ‘means’ of doing things
whereas effectiveness focuses on achieving the ‘end’
goal.
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A Corporate General Manager holds a senior, responsible position in the
company.
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They need to have a basic understanding of all the departments in the
company.
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They need to know and oversee all other managers and supervisors. They
need to motivate their senior staff to make sure that the employees are
working competently and efficiently. They make sure that the company is
working towards goals and targets in the most profitable way.
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In a small company, a Corporate General Manager will be in charge of
almost all aspects of that company. In a larger company, they will have
departmental managers that report to them.
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researches goals and writes plans to achieve them
implements these plans
motivates departmental managers
recognizes and encourages employees when a job is well
done!
delegates responsibilities
makes sure company is running smoothly
troubleshoots and solves problems within the company
makes important decisions
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Also known as Managing Directors or
Chief Operating Officers, General
Managers are tasked with overseeing
daily business activities, improving
overall business functions, training heads
of departments, managing budgets,
developing strategic plans, creating
policies, and communicating business
goals.
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Overseeing daily business operations.
Developing and implementing growth strategies.
Training low-level managers and staff.
Creating and managing budgets.
Improving revenue.
Hiring employees.
Evaluating performance and productivity.
Analyzing accounting and financial data.
Researching and identifying growth opportunities.
Generating reports and giving presentations.
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A functional manager manages and owns the
resources in a specific department, such as
IT, engineering, public relations, or
marketing, and generally directs the technical
work of individuals from that functional area
who are working on the project.
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Assign specific individuals to the team, and negotiate with
the project manager regarding resources
Participate in the initial planning until work packages or
activities are assigned
Provide subject matter expertise
Approve the final schedule during schedule development
Approve the final project management plan during project
management plan development
Recommend changes to the project, including corrective
actions
Manage activities within their functional areas
Assist with problems related to team member performance
Improve staff utilization
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Frontline management refers to the first or
second level managers (line managers, office
managers, supervisors) directly responsible for
production of goods and services, and
supervision of clerical staff and shop floor
employees.
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Communication with employees and
customers
Customer service
Problem solving
Reporting to functional managers
People management
Team work
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Mintzberg’s observations and subsequent
research indicate that diverse manager activities
can be organized into 10 roles.
A role is a set of expectations for a manager’s
behavior.
These roles are divided into three conceptual
categories: informational (managing by
information); interpersonal (managing through
people); and decisional (managing through
action).
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it is important to remember that the real job
of management cannot be practiced as a set
of independent parts; all the roles interact in
the real world of management.
As Mintzberg says, “The manager who only
communicates or only conceives never gets
anything done, while the manager who only
‘does’ ends up doing it all alone.
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Innovation is the new imperative
Organizations cannot survive long term
without innovation
Companies like Google, Apple, Samsung, and
Facebook are always investing in new ideas
Innovation should be a part of products,
processes, people, and values
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At many companies, newproduct
development is a cautious, step-by-step
affair that might take a year or two to
unfold. What is different at Google?
what are the main factors of Google’s
innovative strategies success?
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Rapid environmental shifts, such as changes
in technology, globalization, and shifting
social values, are causing fundamental
transformations that have a dramatic impact
on the manager’s job.
These transformations are reflected in the
transition to a new workplace
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Organization: Social entity that is goal
directed and deliberately structured
Organizational effectiveness: Providing a
product or service that customers value
Organizational efficiency: Refers to the
amount of resources used to achieve an
organizational goal
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Three categories of skills: conceptual, human,
technical
The degree of the skills may vary but all
managers must possess the skills
The application of management skills change
as managers move up the hierarchy
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Missteps and unethical behavior have been in
the news
During turbulent times, managers must apply
their skills
Common management failures:
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Not listening to customers
Misinterpreting signals from marketplace
Not building teams
Inability to execute strategies
Failure to comprehend and adapt to change
Poor communication and interpersonal skills
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Organizations often promote star performers
to management
Becoming a manager is a transformation
◦ Move from being a doer to a coordinator
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Many new managers expect more freedom to
make changes
Successful managers build teams and
networks
Many make the transformation in a “trial by
fire”
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Principles of management
Dr. Mohammed Makhtari
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The increased workload
The challenge of supervising former peers
The headache of responsibility for other
people
Being caught in the middle
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Manager’s shoptalk
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Small businesses are growing
◦ Inadequate management skills is a threat
◦ The roles for small business managers differ
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Small companies sometimes have difficulty
developing the managerial skills needed to
survive in a turbulent environment.
One survey on trends and future
developments in small business found that
nearly half of respondents saw inadequate
management skills as a threat to their
companies, as compared to less than 25
percent of large Organizations.
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One interesting finding is that managers in
small businesses tend to emphasize roles
different from those of managers in large
corporations.
Managers have to be innovative and help their
organizations develop new ideas to remain
competitive.
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