The theory of management. Lecture 1. Basics of management

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THE THEORY OF MANAGEMENT
LECTURE 1. BASICS OF MANAGEMENT
LECTURER: ZINKOVICH NADEZHDA,
SYNERGY UNIVERSITY, 2023
[email protected]

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Contents:
1. Management – definition
2. Functions of management
3. Management levels – and its descripton
4. Vertical management – pros and cons
5. The four manager types

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1. Management – definition
Management is the coordination and administration of tasks to achieve a
goal.
Such administration activities include setting the organization’s
strategy and coordinating the efforts of staff to accomplish these
objectives through the application of available resources.
Management can also refer to the seniority structure of staff
members within an organization.

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In other words, Management is a technique of extracting
work from others in an integrated and coordinated manner
for realizing specific objectives through the productive use
of material resources.

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Definition of Management
Management is the art of knowing what you want to do………in the cheapest way.
(F.W. Taylor)

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Management is the function of an enterprise that concerns itself with the
direction and control of the various activities to attain the business objectives.
(William Spriegel, was an American automotive businessman, educator, and
academic administrator specializing in the study of personnel management.)

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Management is the art of getting things done through and with people
informally organized groups. It is the art of creating an environment in which
people can perform as individuals and yet cooperate toward the attainment
of group goals. It is an art of removing blocks to such performance, a way of
optimizing efficiency in reaching goals.
(Horald Koontz, an American organizational theorist,
professor of business management at the University of California, Los Angeles
and a consultant for many of America's largest business organizations. Koontz
co-authored the book Principles of Management with Cyril J. O'Donnell)

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2. Functions of management

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Planning
Planning means defining performance goals for the organization and
determining what actions and resources are needed to achieve the goals.
Through planning, management defines what the future of the organization
should be and how to get there.
Strategic plans are long-term and affect the entire organization.
Tactical plans translate strategic plans into specific actions that need to be
implemented by departments throughout the organization. The tactical plan
defines what has to be done, who will do it, and the resources needed to do it.

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Organizing
Once plans are made, decisions must be made about how to best implement the
plans. The organizing function involves deciding how the organization will be
structured (by departments, matrix teams, job responsibilities, etc.).
Organizing involves assigning authority and responsibility to various
departments, allocating resources across the organization, and defining how the
activities of groups and individuals will be coordinated.

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Leading
The best planning and organizing will not be effective if the people in the organization are not
willing to support the plan.
Leaders use knowledge, character, and charisma to generate enthusiasm and inspire effort to
achieve goals. Managers must also lead by communicating goals throughout the organization,
by building commitment to a common vision, by creating shared values and culture, and by
encouraging high performance.
Managers can use the power of reward and punishment to make people support plans and
goals. Leaders inspire people to support plans, creating belief and commitment.
Leadership and management skills are not the same, but they can and do appear in the most
effective people.

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Controlling
There is a well-known military saying that says no battle plan survives contact with the enemy.
This implies that planning is necessary for making preparations, but when it’s time to
implement the plan, everything will not go as planned. Unexpected things will happen.
Observing and responding to what actually happens is called controlling.
Controlling is the process of monitoring activities, measuring performance, comparing results to
objectives, and making modifications and corrections when needed.
This is often described as a feedback loop, as shown in the illustration of a product design
feedback loop.

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Controlling may be the most important of the four management functions. It
provides the information that keeps the corporate goal on track.
By controlling their organizations, managers keep informed of what is
happening; what is working and what isn’t; and what needs to be continued,
improved, or changed.

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3. Levels of managers: Top-Level Managers (
Senior)

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Top-level managers (or top managers) are the “bosses” of the organization. They
have titles such as chief executive officer (CEO), chief operations officer (COO),
chief marketing officer (CMO), chief technology officer (CTO), and chief
financial officer (CFO).
A new executive position known as the chief compliance officer (CCO) is
showing up on many organizational charts in response to the demands of the
government to comply with complex rules and regulations.

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Responsibility and main functions:
Top managers are ultimately responsible for the long-term success of the
organization.
They set long-term goals and define strategies to achieve them. They pay careful
attention to the external environment of the organization: the economy,
proposals for laws that would affect profits, stakeholder demands, and
consumer and public relations.
They will make the decisions that affect the whole company such as financial
investments, mergers and acquisitions, partnerships and strategic alliances, and
changes to the brand or product line of the organization.

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Middle Managers
Middle managers have titles like
department head, director, and
chief supervisor.
They are links between the top
managers and the first-line
managers and have one or two
levels below them.

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They encourage, support, and foster talented employees within the
organization.
An important function of middle managers is providing leadership, both in
implementing top manager directives and in enabling first-line managers to
support teams and effectively report both positive performances and obstacles
to meeting objectives.

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First-Line Managers

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3. Vertical Management
Vertical management, also called top-down management, refers to the various
levels of management within an organization.
Managers at different levels are free to focus on different aspects of the
business, from strategic thinking to communicating information to operational
efficiency.

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Vertical management in a traditional
organizational structure

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A main disadvantage:
Is that it limits information flow from the lower levels of the
organization to the upper levels (like water, information flows
downhill easily).
Without easy two-way communication, top management can
become isolated and out of touch with how its plans affect core
processes in the organization.

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Vertical thinking refers to using traditional and recognized methods to solve
particular problems. It is the opposite of “thinking outside of the box.”
The digital age exposed the shortcomings of management that addressed problems
in formal or bureaucratic approaches at the expense of creativity and innovation.
Today, many organizations use “flatter” structures, with fewer levels between the
company’s chief executives and the employee base.
Most organizations, however, still have four basic levels of management: top,
middle, first line, and team leaders.

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Depending on the size and type of organization, executive vice
presidents and division heads would also be part of the top
management team.
For example, in a pharmaceutical firm, the CCO may report directly
to the CEO or to the board of directors.

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First-line managers are the entry level of management, the individuals “on the line” and
in the closest contact with the workers.
They are directly responsible for making sure that organizational objectives and plans are implemented
effectively.
They may be called assistant managers, shift managers, foremen, section chiefs, or office managers. Firstline managers are focused almost exclusively on the internal issues of the organization and are the first
to see problems with the operation of the business, such as untrained labor, poor quality materials,
machinery breakdowns, or new procedures that slow down production. It is essential that they
communicate regularly with middle management.

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4. The four manager
types
1. Teacher managers — who
develop employees’ skills on the
basis of their own expertise and
direct their development along a
similar track to their own.

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Cheerleader managers — who
give positive feedback while
taking a general hands-off
approach to employee
development.

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Always-on managers — who
provide constant, frequent
feedback and coaching on all
aspects of the employee’s
performance.

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Connector managers — who provide feedback in their area of expertise while
connecting employees to others on the team or in the organization who are
better suited at addressing specific needs.

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Recommendations:
https://www.gartner.com/en/human-resources/insights/publications/connectorquiz

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Thank you!