The document provides information about management concepts from Dire Dawa University in Ethiopia. It defines management and its key functions, which include planning, organizing, staffing, leading, and controlling. It also describes the different levels of management hierarchy from top to middle to supervisory management. Finally, it discusses organizational structure and the importance of productivity for organizations.
The document provides information about management concepts from Dire Dawa University in Ethiopia. It defines management and its key functions, which include planning, organizing, staffing, leading, and controlling. It also describes the different levels of management hierarchy from top to middle to supervisory management. Finally, it discusses organizational structure and the importance of productivity for organizations.
The document provides information about management concepts from Dire Dawa University in Ethiopia. It defines management and its key functions, which include planning, organizing, staffing, leading, and controlling. It also describes the different levels of management hierarchy from top to middle to supervisory management. Finally, it discusses organizational structure and the importance of productivity for organizations.
The document provides information about management concepts from Dire Dawa University in Ethiopia. It defines management and its key functions, which include planning, organizing, staffing, leading, and controlling. It also describes the different levels of management hierarchy from top to middle to supervisory management. Finally, it discusses organizational structure and the importance of productivity for organizations.
Asrat Mekonnen CHAPTER ONE BASIC MANAGEMENT CONCEPTS AND INDUSTRIAL ORGANIZATION Definition
• Management (or managing) is the administration of an organization,
whether it be a business, a non – for – profit organization, or government body. • Management includes the activities of setting the strategy of an organization and coordinating the efforts of its employees or volunteers to accomplish its objectives through the application of available resources, such as financial, natural, technological and human resources. Definition
• “… to manage is to forecast and to plan, to organize, to command, to
co – ordinate and to control.” Henri Fayol • “Management is the transformation of resources into utility.” Fredmund Malik Definition…. Management is the process of designing and maintaining an environment in which individuals working together in groups efficiently to accomplish the selected aim. Or is the attainment of organizational goals in an effective and efficient manner through integration of organizational resources (i.e. men, machineries and materials). …Cont’d
Objective: • Maximize the potential of their people and coordinate their efforts to attain some predetermined goal. • Managers use resources to attain organizational goals. • Management is the use of people and other resources to accomplish objectives. Definition
Organization An organization is a stable and formal social structure that takes resources from the environment and processes them to produce outputs. Definition…. Organizational Goals Profit-oriented organization • Return on investment E.g. National Cement S.C Governmental Hospitals • Patient Care Educational Institutions • Teaching – providing quality education • Research • Community Services Definition…. Resources • Human • Skills • Knowledge • Non-Human • Capital • Land • Plant and Equipment • Technology Management as a Unifying Force Financial Resources
Plant Employees & Management Equipment
Land Management is the process of bringing
human and non-human resources together and coordinating them to accomplish organizational goals. Importance of Management
Management • Puts together the factors of production to produce goods and services • Make business decisions • Takes risks for which the reward is profit • Acts as an innovator by introducing new products, new technology and new ways of organizing business Functions of Management
Managerial functions involve making decisions regarding policy, product,
market and administration of the businesses that are essential to the benefit and expansion of the industry. Functions of Management…
The Functions of Management Functions of Management… Forecasting: predicting the future Planning: is the process of setting objectives for the future and developing courses of action to accomplish them. Organizing: is the process of arranging people and physical resources to carry out plans and accomplish organizational objectives. • Reflecting on plans and objectives, • Establishing major tasks, • Dividing major tasks into subtasks, • Allocating resources and directives for subtasks Functions of Management…
Staffing: is the process of matching jobs and people.
Leading: is the act of motivating or causing people to perform certain tasks intended to achieve specific objectives. It is the act of making things happen. Controlling: is the process by which managers determine whether organizational objectives are achieved and whether actual operations are consistent with plans. Characteristics or featuresof management Management • is getting things done; • is intangible; • is an activity; • is a science and an art; • is a group activity; • involves decision-making; • is purposeful; • is concerned with direction • is an integrating process; and control Management Roles Interpersonal Roles Figurehead: All social, inspiration, legal and ceremonial obligations. In this light, the manager is seen as a symbol of status and authority. Leader: Duties are at the heart of the manager-subordinate relationship and include structuring and motivating subordinates, overseeing their progress, promoting and encouraging their development, and balancing effectiveness. Liaison: Describes the role of managers in representing their organization in different occasions. Management Roles… Informational roles Monitor: Duties include assessing internal operations, a department’s success and the problems and opportunities which may arise. All the information gained in this capacity must be stored and maintained. Disseminator: Highlights factual or value based external views into the organization and to subordinates. This requires both filtering and delegation skills. Spokesman: Serves in a public relations capacity by informing and lobbying others to keep key stakeholders updated about the operations of the organization. Management Roles… Decisionroles Entrepreneur: Roles encourage managers to create improvement projects and work to delegate, empower and supervise teams in the development process. Disturbance handler: A generalist role that takes charge when an organization is unexpectedly upset or transformed and requires calming and support. Resource Allocator: Describes the responsibility of allocating and overseeing financial, material and personnel resources. Negotiator: Is a specific task which is integral for the spokesman, figurehead and resource allocator roles. Management Hierarchy Management Hierarchy…
Top Management • Made up of individuals who have the possibility of making the decisions and formulating policies that affect all aspect of the firm’s operations. •President •Vice President •Chief Executive Officers •Executive Vice President • A manager’s assigned job, duties and the authority needed to fulfill those duties are what determine management level Management Hierarchy…
Middle Management • Includes all managers above the supervisory level but below the level where overall company policy is determined. • Middle managers manage supervisors. •Regional Sales Manager •Academic Deans (Universities) •Director of Nursing (Hospitals) Management Hierarchy…
Supervisory Management • Supervisors manage workers who perform the most basic job duties required in -business. •Sales Manager •Academic Department Chairperson (Universities) •Nursing Supervisors (Hospitals) Management and Productivity • Management is concerned with productivity i.e. the effectiveness and efficiency. • Productivity can be measured as the Output to Input ratios within a time period with due consideration for quality. 𝑂𝑃 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 = 𝐼𝑃
(within time period and considered)
Cont’d… Productivity can be improved; a. By increasing O/P with same I/P. b. By decreasing I/P but maintaining same O/P. c. By Increasing O/P and decreasing I/P to change the ratio favorably. • The I/P can be labour, material, capital, etc. • In the past productivity improvement program were mostly aimed at workers level but now it is for the management also. Organizational structure Stages required for effectively setting up of an organizational structure are: • The activities which will be necessary to achieve the objectives of the business must be established. • The various related activities should be grouped together into departments depending on their function (type of activity), production, marketing, etc. • The activities of a particular department will be further divided, and grouped together into sections. Organizational Structure…
• The number of staff required must be determined;
• The numbers of supervisors, junior and middle managers per section and department must be given consideration; • The special knowledge or talents required by departmental and sectional managers must be laid down. • An organization chart should be produced Organizational Structure…
There are four different types of organizational structure. These are;
1. Line Organization It can be very efficient, particularly in small and medium-size enterprise. Organizational Structure…
President
Vice President
Plant Manager
Foreman A Foreman B Foreman C
Staff Staff Staff
Organizational Structure…
2. Functional Organization This is a type of organization in which it is the function (the type of activity), which determines the areas of authority and responsibility. An expert or specialist is placed in charge of each function, and will have a direct control of that function wherever it is undertaken within the enterprise. Organizational Structure… BOSSES
I J K L
A B C D E F G H
OPERATOR Organizational Structure…
Functional organization makes control difficult as there are no clear
lines of authority and it is similarly difficult to establish responsibility when things do not go right. Furthermore, staff as well as supervisors and junior managers become confused at being subject to the authority of more than one superior. Organizational Structure… 3. Line andStaff Organization It is the combination of line and functional organization, which is commonly used. This type of organizational structure ensures that the lines of responsibility and authority are still clear for all (managers, supervisors and staff alike) to see, and understand, and that the line managers keep full control of their respective departments or sections, whilst having expert advice and assistance available in many subsidiary areas. Organizational Structure… Managing director
Accounts Personnel Works Manager Sales Manager Manager Manager
Section Section Section
managers, Managers, managers, Employment Training officer supervisors supervisors supervisors officer and Operators and salesmen and clerks
Supervisors Supervisors and clerks and clerks Organizational Structure…
4. Matrix or Project Organization
This type of organizational structures is temporary organizational structures formed for specific projects for a specified period of time and are dismantled, once the required goal is achieved. Organizational Structure… General Manager
Labor Research Finance Personnel Technical Services
