Principles of Management

1. What is the Manager’s
Job?
Chapter 1
Fundamentals of Management
Andrew J. Durbin
Presented by: Mr. Mervyn Maico D. Aldana & Mr. Jeffrey Banal, Faculty SHTM

2. Management
is the process of using organisational
resources to achieve organisational
objectives through the functions of
planning, organising and staffing, leading,
and controlling.

3. Management
is also used as a label for a
specific
discipline, for the people who
manage, and for a career choice.

4. Why do we need to study Management?
“A manager gets to tell others what to do, and he or
she usually earns more money than other workers.”
“Managers also have the chance to make a difference in
the lives of the others.”
“It will increase your opportunities to be offered a job
as a manager.”

5. Why do we need to study Management?
“Studying Management is valuable because the better
you understand the work of your boss, the more likely
you will be to get along with that person.”
“The study of management is important because
management is needed in all types of organisations.”
“The study of management is important because it
enables self-understanding. By understanding
management, we get a better sense of values and forces
that shape us as a person and as societies."

6. Who is a Manager?
A manager is a person responsible
for the work performance of group
members.
A manager holds formal authority to
commit organizational resources,
even if the approval of others is
required.

7. Levels of Management

8. Levels of Management
First Level Managers
Middle Level Managers
Top Level Managers

9. Levels of Management

10. First Level Manager
Managers who supervise operatives
are referred to as first-level
managers,first-line managers, or
supervisors.
Historically, first-level managers were
promoted from production or clerical
(now called staff support) positions
into supervisory positions.
Rarely did they have formal education
beyond high school.

11. First Level Manager
A dramatic shift has taken place in
recent years, however. Many of
today’s first-level managers are
career school graduates and four year
college graduates who are familiar
with modern management
techniques.
The current emphasis on productivity
and cost control has elevated the
status of many supervisors.

12. Middle Level Manager
Managers who are neither executives
nor first-level supervisors, but who
serve as a link between the two
groups.
Conducts most of the coordination
activities within the firm, and they
are responsible for implementing
programs and policies formulated by
top-level management.
Jobs vary substantially in terms of
responsibility and income.

13. Middle Level Manager
Other important tasks for many middle-level managers
include helping
the company undertake profitable new ventures and
finding creative ways to reach goals.
Plays a major role in
operating an organisation.
A major part of a middle-level manager’s job is working
with teams to accomplish goals.
Technology have reduced the communication
requirement of the middle manager positions, the need
for middle
managers is still strong.

14. Top Level Manager
A position that every manager
aspire.
Top one or two levels in an
organization
C-Level Managers, Chief of
staff, Chief Commercial Officer,
Chief Operating Officer

15. Top Level Manager
Top-level managers are empowered to make major
decisions affecting the present and future of the firm.
Top-level managers are the people who give the
organization its general direction; they decide where
it is going and how it will get there.

16. Types of Managers

17. Types of Managers
Functional Managers
supervise the work of employees engaged in
specialized activities such as accounting,
engineering, information systems, food
preparation, marketing, and sales.
General Manager
Are responsible for the work of several different
groups that perform a variety of functions.

18. Types of Managers
Administrator
typically a manager who
works in a public
(government) or
nonprofit
organization,
including educational
institutions, rather
than in a business
firm.

19. Types of Managers
Entrepreneurs
a person who founds and operates an innovative
business. After the entrepreneur develops the
business into something bigger than he or she can
handle alone with the help of only a few people, that
person becomes a general manager.
Small business owner
An individual who owns and operates a small business.
Similar to an entrepreneur, the owner or operator of
a small business becomes a manager when the firm
grows to include several employees.

20. Types of Managers
Team leaders
a manager who coordinates the work of a
small group of people while acting as a
facilitator and catalyst.
Team leaders are found at several
organizational levels and are sometimes
referred to as project managers,
program managers, process managers,
and task force leaders.

21. The Process of Management

22. The Process of Management
• A helpful approach to understanding what managers do is to
regard their work as a process.
• A process is a series of actions that achieves something – making a
profit or providing a service.
• A manager uses resources and carries out four major managerial
functions – planning organizing and staffing, leading, and
controlling.

23. Resources Used by Managers
Human Resource
Financial Resource
Physical Resource
Informational Resource

24. Human Resource
are the people needed to get the
job done.
Manager’s goals influence which
employees they choose.

25. Financial Resource
the money the manager and the
organisation use to reach
organisational goals.
The financial resources of a
business organisation are profits
and investments from
stockholders

26. Physical Resource
a firm’s tangible goods and real
estate, including raw materials,
office space, production
facilities, office equipment, and
vehicles.

27. Informational Resource
are the data that the
manager and the
organisation use to get the
job done.

28. The 4 Managerial Functions

29. The Four Managerial Functions
Planning
Organizing and Staffing
Leading
Controlling

30. Planning
Planning involves setting goals
and figuring out ways of
reaching them.
Planning is considered the
central function of management,
pervades everything a manager
does.
In planning, a manager looks to
the future.

31. Organizing and Staffing
Organising is the process of making sure the
necessary human and physical resources are
available to carry out a plan and achieve
organisational goals.
Organizing also involves assigning activities, dividing
work into specific jobs and tasks, and specifying who
has the authority to accomplish certain tasks.
Another major aspect of organizing is grouping
activities into departments or some logical
subdivision.
The staffing function ensures the availability of
necessary human resources to achieve organizational
goals. Hiring people for jobs is a typical staffing
activity.

32. Leading
Leading means influencing others to achieve organizational
objectives.
It involves energizing, directing, persuading others, and
creating
a vision.
It involves dozens of interpersonal processes: motivating,
communicating, coaching, and showing group members how
they can reach their goals.
Leadership is such a key component in managerial work that
management is sometimes seen as accomplishing results thru
people.

33. Controlling
Controlling generally involves comparing
actual performance to a predetermined
standard.
Any significant difference between actual
and desired performance would prompt a
manager to take corrective action.
Another aspect of controlling is
determining whether the original plan
needs revision, given the realities of the
day.

34. The 17 Managerial Roles

35. 17 Managerial Roles

36. Planning
Strategic Planner
Top-level managers engage in strategic planning, usually assisted by input
from others throughout the organization. Specific activities in this role
include (a) setting a direction for the organization, (b) helping the firm
deal with the external environment, and (c) developing corporate
policies.
Operational Planner
Operational plans relate to the day-to-day operation of a company or unit.
Two such activities are (a) formulating operating budgets and (b)
developing work schedules for the unit supervised. Middle-level managers
are heavily involved in operational planning; first-level managers are
involved to a lesser extent.

37. Organizing and Staffing
Organizer
the manager engages in activities such as (a) designing the jobs of group
members; (b) clarifying group members’ assignments; (c) explaining
organizational policies, rules, and procedures; and (d) establishing policies,
rules, and procedures to coordinate the flow of work and information within
the unit.
Liaison
The purpose of the liaison role is to develop and maintain a network of work-
related contacts with people. To achieve this end, the manager (a) cultivates
relationships with clients or customers; (b) maintains relationships with
suppliers, customers, and other persons or groups important to the unit or
organization; (c) joins boards, organizations, or public service clubs that
might provide useful, work-related contacts; and (d) cultivates and
maintains a personal network of in-house contacts through visits, telephone
calls, e-mail, text messages, and participation in company-sponsored events.

38. Organizing and Staffing
Staffing Coordinator
the manager tries to make sure that competent people fill positions. Specific
activities include (a) recruiting and hiring staff; (b) explaining to group members
how their work performance will be evaluated; (c) formally evaluating group
members’ overall job performance; (d) compensating group members within the
limits of organizational policy; (e) ensuring that group members are properly
trained; (f) promoting group members or recommending them for promotion; and
(g) terminating or demoting group members.
Resource Allocator
to divide resources in the manner that best helps the organization. Specific
activities to this end include (a) authorizing the use of physical resources (facilities,
furnishings, and equipment); (b) authorizing the expenditure of financial resources;
and (c) discontinuing the use of unnecessary, inappropriate, or ineffective
equipment or services.

39. Organizing and Staffing
Task Delegator
A standard part of any manager’s job is assigning tasks to group members.
Among these task-delegation activities are (a) assigning projects or tasks to
group members; (b) clarifying priorities and performance standards for task
completion; and (c) ensuring that group members are properly committed to
effective task performance.

40. Leading
Motivator and Coach
An effective manager takes time to motivate and coach group members.
Specific behaviors in this role include (a) informally recognizing employee
achievements; (b) offering encouragement and reassurance, thereby showing
active concern about the professional growth of group members; (c)
providing feedback about both effective and ineffective performance; and
(d) giving group members advice on steps to improve their performance.
Figurehead
Spend some of their time engaging in ceremonial activities or acting as a
figurehead. Such activities include (a) entertaining clients or customers as an
official representative of the organization, (b) serving as an official
representative of the organization at gatherings outside the organization,
and (c) escorting official visitors.

41. Leading
Spokesperson
the emphasis is on answering inquiries and formally reporting to individuals
and groups outside the manager’s organizational unit. As a spokesperson, the
manager keeps five groups of people informed about the unit’s activities,
plans, and capabilities. These groups are (a) upper-level management, (b)
clients and customers, (c) other important outsiders (such as labor unions),
(d) professional colleagues, and (e) the general public. Usually, top-level
managers take responsibility for keeping outside groups informed.
Negotiator
trying to make deals with others for needed resources. Three specific
negotiating activities are (a) bargaining with supervisors for funds, facilities,
equipment, or other forms of support; (b) bargaining with other units in the
organization for the use of staff, facilities, and other forms of support; and
(c) bargaining with suppliers and vendors about services, schedules, and
delivery times.

42. Leading
Team Builder
build an effective team. Activities contributing to this role include (a)
ensuring that group members are recognized for their accomplishments (by
issuing letters of appreciation, for example); (b) initiating activities that
contribute to group morale, such as giving parties and sponsoring sports
teams; and (c) holding periodic staff meetings to encourage group members
to talk about their accomplishments, problems, and concerns.
Team Player
Three behaviors of the team player are (a) displaying appropriate personal
conduct, (b) cooperating with other units in the organization, and (c)
displaying loyalty to superiors by fully supporting their plans and decisions.

43. Leading
Technical Problem Solver
help group members solve technical problems.Two such specific activities related to
problem solving are (a) serving as a technical expert or advisor and (b) performing
individual contributor tasks such as making sales calls or fixing software problems on
a regular basis. The managers most in demand today are those who combine
leadership skill with a technical or business specialty.
Entrepreneur
suggesting innovative ideas or furthering the business aspects of the firm. Three
entrepreneurial role activities are (a) reading trade publications and professional
journals and searching the Internet to remain up-to-date; (b) talking with customers
or others in the organization to remain abreast of changing needs and requirements;
and (c) becoming involved in activities outside the unit that could result in
performance improvements within the manager’s unit. These activities might
include visiting other firms, attending professional meetings or trade shows, and
participating in educational programs.

44. Controlling
Monitor
(a) developing systems that measure or monitor the unit’s overall
performance, (b) using information systems to measure productivity and
cost, (c) talking with group members about progress on assigned tasks, and
(d) overseeing the use of equipment and facilities (for example, vehicles and
office space) to ensure that they are properly used and maintained.
Disturbance Handler
(a) participating in grievance resolution within the unit (working out a
problem with a labor union, for example); (b) resolving complaints from
customers, other units, and superiors; (c) resolving conflicts among group
members; and (d) resolving problems about work flow and information
exchange with other units. Disturbance handling might also be considered a
leadership role.

45. Managerial Roles Currently Emphasized
• Managerial work has shifted substantially away from the
controller and director role to that of motivator and coach,
facilitator, and supporter. As reflected in the position of team
leader, many managers today deemphasize formal authority and
rank. Instead, they work as partners with team members to
jointly achieve results.
• Managers today emphasize horizontal relationships and
deemphasize vertical (top-down) relationships.

46. Management as a Practice
• Management is more of a practice rather than a profession
• Management is not a profession in the sense of being a licensed
occupation such as law, medicine, psychology, veterinary
medicine, or electrician.
• Managers learn through both experience and study.
• One way in which the occupation of management can become
more professionalized is for managers to base more of their
decisions on systematically gathered evidence such as surveys and
experiments.
• Evidence-based management is the systematic use of the best
available evidence to improve management practice.

47. Five Key Managerial Skills

48. Technical Skill
• Technical skill involves an understanding of
and proficiency in a specific activity that
involves methods, processes, procedures, or
techniques.
• Technical skills are frequently referred to as
hard skills.
• A well-developed technical skill can
facilitate the rise into management.
• For example, Bill Gates of Microsoft Corp.
launched his career by being a competent
programmer.

49. Interpersonal Skill
• Interpersonal (or human relations) skill is a manager’s
ability to work effectively as a team member and to
build cooperative effort in the unit.
• Communication skills are an important component of
interpersonal skills.
• Interpersonal skills are often referred to as soft skills
• Interpersonal skills are more important than technical skills
in getting to the top and providing leadership to people.
• An important subset of interpersonal skills for managers is
multiculturalism, the ability to work effectively and
conduct business with people from different cultures.
Closely related is the importance of bilingualism for
managers as well as other workers. Being able to converse
in a second language represents an important asset in
today’s global and multicultural work environment.

50. Conceptual Skill
• Conceptual skill is the ability to see the organisation
as a total entity.
• It includes recognising how the various units of the
organisation depend on one another and how changes
in any one part affect all the others.
• It also includes visualizing the relationship of the
individual business to the industry; the community; and
the political, social, and economic forces of the nation as
a whole.
• For top-level management, conceptual skill is a priority
because executive managers have the most contact with
the outside world.

51. Diagnostic Skill
• It means to investigate a problem and then to
decide on and implement a remedy.
• Diagnostic skill often requires other skills,
because managers must use technical, human,
conceptual, or political skills to solve the
problems they diagnose.
• Much of the potential excitement in a manager’s job
centers on getting to the root of problems and
recommending solutions.

52. Political Skill
An important part of being effective is the
obtaining power and prevent others from taking it
away.
Other political skills include establishing the right
connections and impressing the right people.
Political skill should be regarded as a supplement
to job competence and other basic skills.

53. Assignment
• Interview a manager at any level in any organization, including a retail store or
restaurant. Determine which of the 17 managerial roles the manager you
interview thinks apply to his or her job. Find out which one or two roles the
manager thinks are the most important.
• Include a profile of the manager:
• Name
• Age
• Company he/she works for
• Position
• Number of Years as a manager
• Degree in college
• To be submitted on June 27, 2018 (Wednesday).
• Typewritten, short bond paper.